Notes to Accounts of Alfa Transformers Ltd.

Mar 31, 2025

6.15 Provisions and Contingent Liabilities:

A provision is recognised when the Company has a present obligation as a result of past
events and it is probable that an outflow of resources will be required to settle the obligation
in respect of which a reliable estimate can be made. If effect of the time value of money is
material, provisions are discounted using an appropriate discount rate that reflects, when
appropriate, the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.

Contingent liabilities are disclosed in the Notes to the Financial Statements. Contingent
liabilities are disclosed for:

i) Possible obligations which will be confirmed only by future events not wholly within the
control of the Company, or

ii) Present obligations arising from past events where it is not probable that an outflow of
resources will be required to settle the obligation or a reliable estimate of the amount of
the obligation cannot be made.

iii) Details of dues of Income Tax, Sales Tax, Service Tax, Excise Duty and Value Added Tax
which have not been deposited as at March 31, 2025 on account of dispute are given
below:

6.16 Financial instruments, financial assets, financial liabilities and Equity instruments.

I) Financial Assets

A. Initial recognition and measurement: Financial assets and financial liabilities are
recognised when the Company becomes a party to the contractual provisions of the
relevant instrument and are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities,
which are not at fair value through profit or loss, are adjusted to the fair value on initial
recognition. Purchase and sale of financial assets are recognised using trade date
accounting.

Recognition: Financial assets includes Investments, Trade receivables, Advances, Security
Deposits, Cash and cash equivalents. Such assets are initially recognised at transaction
price when the Company becomes party to contractual obligations. The transaction price
includes transaction costs unless the assets are being fair valued through the Statement of
Profit and Loss.

Classification: Management determines the classification of an asset at initial
recognition depending on the purpose for which the assets were acquired. The
subsequent measurement of financial assets depends on such classification.

A. Initial recognition and measurement: Financial assets and financial liabilities are

recognised when the Company becomes a party to the contractual provisions of the
relevant instrument and are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities,
which are not at fairvalue through profit or loss, are adjusted to the fairvalue on initial
recognition. Purchase and sale of financial assets are recognised using trade date
accounting.

Recognition: Financial assets includes Investments, Trade receivables, Advances,
Security Deposits, Cash and cash equivalents. Such assets are initially recognised at
transaction

price when the Company becomes party to contractual obligations. The transaction price
includes transaction costs unless the assets are being fair valued through the Statement
of Profit and Loss.

B. Subsequent measurement

a) Financial assets carried at amortised cost (AC)

A financial asset are measured at amortised cost if it is held within a business model whose
objective is to hold the asset in order to collect contractual cash flows and the contractual
terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.

b) Financial assets at fairvalue through other comprehensive income (FVTOCI)

Fair value through other comprehensive income (FVTOCI), where the financial assets are
held not only for collection of cash flows arising from payments of principal and interest
but also from the sale of such assets. Such assets are subsequently measured at fair value,
with unrealised gains and losses arising from changes in the fairvalue being recognised in
other comprehensive income.

c) Financial assets at fairvalue through profit or loss (FVTPL)

Fair value through profit or loss (FVTPL), where the assets are managed in accordance with
an approved investment strategy that triggers purchase and sale decisions based on the
fair value of such assets. Such assets are subsequently measured at fair value, with
unrealised gains and losses arising from changes in the fairvalue being recognised in the
Statement of Profit and Loss in the period in which they arise.

Trade receivables, Advances, Security Deposits, Cash and cash equivalents etc. are classified
for measurement at amortised cost while investments may fall under any of the aforesaid
classes.

Equity investments:

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments
which are held for trading are classified as FVTPL. For all other equity instruments, the
Company decides to classify the same either at fair value through other comprehensive
income (FVTOCI) or FVTPL. The Company makes such election on an instrument-by¬
instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value
changes on the instrument, excluding dividends, are recognized in other comprehensive
income (OCI). There is no recycling of the amounts from OCI to Statement of Profit and Loss,
even on sale of such investments. Equity instruments included within the FVTPL category are
measured at fair value with all changes recognized in the Statement of Profit and Loss.

The Company has opted to continue with the carrying value of all its equity investments as
recognized in the financial statements as at the date of transition to Ind AS, measured as per
the previous GAAP and use that as the deemed cost as at the transition date pursuant to the
exemption under Ind AS 101.

Derivative financial instruments

The Company uses derivative financial instruments, such as foreign exchange forward
contracts, interest rate swaps and currency options to manage its exposure to interest rate
and foreign exchange risks. Such derivative financial instruments are initially recognised at fair
value on the date on which a derivative contract is entered into and are subsequently re¬
measured at fair value. Derivatives are carried as financial assets when the fair value is positive
and as financial liabilities when the fair value is negative.

Hedge Accounting

The Company uses foreign currency forward contracts to hedge its risks associated with
foreign currency fluctuations relating to highly probable forecast transactions. The Company
designates such forward contracts in a cash flow hedging relationship by applying the hedge
accounting principles. These forward contracts are stated at fair value at each reporting date.
Changes in the fair value of these forward contracts that are designated and effective as
hedges of future cash flows are recognised directly in Other Comprehensive Income (OCI) and
accumulated in "Cash Flow Hedge Reserve Account" under Reserves and Surplus, net of
applicable deferred income taxes and the ineffective portion is recognised immediately in the
Statement of Profit and Loss.

Amounts accumulated in the "Cash Flow Hedge Reserve Account" are reclassified to the
Statement of Profit and Loss in the same period during which the forecasted transaction
affects Statement of Profit and Loss. Hedge accounting is discontinued when the hedging
instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge
accounting. For forecasted transactions, any cumulative gain or loss on the hedging
instrument recognised in "Cash Flow Hedge Reserve Account" is retained until the forecasted
transaction occurs. If the forecasted transaction is no longer expected to occur, the net
cumulative gain or loss recognises.

Offsetting of financial instruments

Financial assets and financial liabilities are offseted and the net amount is reported in the
balance sheet if there is a currently enforceable legal right to offset the recognised amounts
and there is an intention to settle on a net basis, to realise the assets and settle the liabilities
simultaneously.

Impairment: The Company assesses at each reporting date whether a financial asset (or a
group of financial assets) such as investments, trade receivables, advances and security
deposits held at amortised cost and financial assets that are measured at fair value through
other comprehensive income are tested for impairment based on evidence or information
that is available without undue cost or effort. Expected credit losses are assessed and loss
allowances are recognised if the credit quality of the financial asset has deteriorated
significantly since initial recognition.

Reclassification: When and only when the business model is changed, the Company shall
reclassify all affected financial assets prospectively from the reclassification date as
subsequently measured at amortised cost, fair value through other comprehensive income,
fair value through profit or loss without restating the previously recognised gains, losses or
interest and in terms of the reclassification principles laid down in the Ind AS relating to
Financial Instruments.

De-recognition: Financial assets are derecognised when the right to receive cash flows from
the assets has expired, or has been transferred, and the Company has transferred amounts
collected on behalf of third parties, such as sales tax and value added tax.

ii) Financial liabilities

A. Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly
attributable cost. Fees of recurring nature are directly recognised in the Statement of Profit
and Lossas finance cost.

B. Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. For trade
and other payables maturing within one year from the balance sheet date, the carrying
amounts approximate fair value due to the short maturity of these instruments.

6.17. Investments in subsidiary, associates and joint venture:

The Company measures its investments in subsidiary at cost less impairment. The company
assesses investments for impairment whenever events or changes in circumstances indicate
that the carrying value of an investment may not be recoverable. If any such indication of
impairment exists, the company makes an estimate of its recoverable amount. Where the
carrying amount of an investment exceeds its recoverable amount, the investment is
considered impaired and is written down to its recoverable amount.

i) Non-Current investments are valued at cost. However, provision for diminution in value is
made to recognize a decline in the value, other than temporary.

ii) Current investments are valued at lower of cost or fair value.

6.18 Cash and cash equivalent

In the cash flow statement, cash and cash equivalent include cash in hand, cheques and drafts
in hand, balances with bank and deposit held at call with financial institution, shortterm highly
liquid investments with original maturities of three months or less they are readily convertible
to known amount of cash and which are subject to an insignificant risk of changes in value.
Bank overdrafts are shown as borrowing in the current liabilities in the balance sheet and form
part of the financial activity in the cash flow statement. Book overdrafts are shown as
borrowing in other financial liabilities in the balance sheet and form part of financing activity
in the cash flow statement. Book overdrafts are shown as other financial liabilities in the
balance sheet and form part of the operating activity in the cash flow statement.

6.19 Earnings per share:

Basic earnings per share is computed by dividing the profit / (loss) after tax by the weighted
average number of equity shares outstanding during the year. The weighted average number
of equity shares outstanding during the year is adjusted for the events for bonus issue, bonus
element in a rights issue to existing shareholders, share split and reverse share split
(consolidation of shares). Diluted earnings per share is computed by dividing the profit/(loss)
after tax as adjusted for dividend, interest and other charges to expense or income (net of any
attributable taxes) relating to the dilutive potential equity shares, by the weighted average
number of equity shares considered for deriving basic earnings per share and the weighted
average number of equity shares which could have been issued on conversion of all dilutive
potential equity shares.

---

Mar 31, 2024

6.15 Provisions and Contingent Liabilities :

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. If effect of the time value of money is material, provisions are discounted using an appropriate discount rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Contingent liabilities are disclosed in the Notes to the Financial Statements. Contingent liabilities are disclosed for:

i) Possible obligations which will be confirmed only by future events not wholly within the control of the Company, or

ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

iii) Details of dues of Income Tax, Sales Tax, Service Tax, Excise Duty and Value Added Tax which have not been deposited as at March 31, 2024 on account of dispute are given below:

6.16 Financial instruments, financial assets, financial liabilities and Equity instruments. i) Financial Assets

A. Initial recognition and measurement : Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the relevant instrument and are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition. Purchase and sale of financial assets are recognised using trade date accounting. Recognition : Financial assets includes Investments, Trade receivables, Advances, Security Deposits, Cash and cash equivalents. Such assets are initially recognised at transaction price when the Company becomes party to contractual obligations. The transaction price includes transaction costs unless the assets are being fair valued through the Statement of Profit and Loss.

Classification : Management determines the classification of an asset at initial recognition depending on the purpose for which the assets were acquired. The subsequent measurement of financial assets depends on such classification.

B. Subsequent measurement

a) Financial assets carried at amortised cost (AC)

A financial asset are measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

b) Financial assets at fair value through other comprehensive income (FVTOCI)

Fair value through other comprehensive income (FVTOCI), where the financial assets are held not only for collection of cash flows arising from payments of principal and interest but also from the sale of such assets. Such assets are subsequently measured at fair value, with unrealised gains and losses arising from changes in the fair value being recognised in other comprehensive income.

c) Financial assets at fair value through profit or loss (FVTPL)

Fair value through profit or loss (FVTPL), where the assets are managed in accordance with an approved investment strategy that triggers purchase and sale decisions based on the fair value of such assets. Such assets are subsequently measured at fair value, with unrealised gains and losses arising from changes in the fair value being recognised in the Statement of Profit and Loss in the period in which they arise.

Trade receivables, Advances, Security Deposits, Cash and cash equivalents etc. are classified for measurement at amortised cost while investments may fall under any of the aforesaid classes.

Equity investments:

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are classified as FVTPL. For all other equity instruments, the Company decides to classify the same either at fair value through other comprehensive income (FVTOCI) or FVTPL. The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in other comprehensive income (OCI). There is no recycling of the amounts from OCI to Statement of Profit and Loss, even on sale of such investments. Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the Statement of Profit and Loss.

The Company has opted to continue with the carrying value of all its equity investments as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as the deemed cost as at the transition date pursuant to the exemption under Ind AS 101.

Derivative financial instruments

The Company uses derivative financial instruments, such as foreign exchange forward contracts, interest rate swaps and currency options to manage its exposure to interest rate and foreign exchange risks. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

Hedge Accounting

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to highly probable forecast transactions. The Company designates such forward contracts in a cash flow hedging relationship by applying the hedge accounting principles. These forward contracts are stated at fair value at each reporting date. Changes in the fair value of these forward contracts that are designated and effective as hedges of future cash flows are recognised directly in Other Comprehensive Income (OCI) and accumulated in "Cash Flow Hedge Reserve Account" under Reserves and Surplus, net of applicable deferred income taxes and the ineffective portion is recognised immediately in the Statement of Profit and Loss. Amounts accumulated in the "Cash Flow Hedge Reserve Account" are reclassified to the Statement of Profit and Loss in the same period during which the forecasted transaction affects Statement of Profit and Loss. Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. For forecasted transactions, any cumulative gain or loss on the hedging instrument recognised in "Cash Flow Hedge Reserve Account" is retained until the forecasted transaction occurs. If the forecasted transaction is no longer expected to occur, the net cumulative gain or loss recognises.

Offsetting of financial instruments

Financial assets and financial liabilities are offseted and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

Impairment: The Company assesses at each reporting date whether a financial asset (or a group of financial assets) such as investments, trade receivables, advances and security deposits held at amortised cost and financial assets that are measured at fair value through other comprehensive income are tested for impairment based on evidence or information that is available without undue cost or effort. Expected credit losses are assessed and loss allowances are recognised if the credit quality of the financial asset has deteriorated significantly since initial recognition.

Reclassification: When and only when the business model is changed, the Company shall reclassify all affected financial assets prospectively from the reclassification date as subsequently measured at amortised cost, fair value through other comprehensive income, fair value through profit or loss without restating the previously recognised gains, losses or interest and in terms of the reclassification principles laid down in the Ind AS relating to Financial Instruments.

De-recognition: Financial assets are derecognised when the right to receive cash flows from the assets has expired, or has been transferred, and the Company has transferred amounts collected on behalf of third parties, such as sales tax and value added tax.

ii : Financial liabilities

A. Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.

B. Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

6.17.Investments in subsidiary, associates and joint venture:

The Company measures its investments in subsidiary at cost less impairment. The company assesses investments for impairment whenever events or changes in circumstances indicate that the carrying value of an investment may not be recoverable. If any such indication of impairment exists, the company makes an estimate of its recoverable amount. Where the carrying amount of an investment exceeds its recoverable amount, the investment is considered impaired and is written down to its recoverable amount.

i) Non-Current investments are valued at cost. However, provision for diminution in value is made to recognize a decline in the value, other than temporary.

ii) Current investments are valued at lower of cost or fair value.

6.18 Cash and cash equivalent

In the cash flow statement, cash and cash equivalent include cash in hand, cheques and drafts in hand, balances with bank and deposit held at call with financial institution, short term highly liquid investments with original maturities of three months or less they are readily convertible to known amount of cash and which are subject to an insignificant risk of changes in value. Bank overdrafts are shown as borrowing in the current liabilities in the balance sheet and form part of the financial activity in the cash flow statement. Book overdrafts are shown as borrowing in other financial liabilities in the balance sheet and form part of financing activity in the cash flow statement. Book overdrafts are shown as other financial liabilities in the balance sheet and form part of the operating activity in the cash flow statement.

7.19 Earnings per share:

Basic earnings per share is computed by dividing the profit / (loss) after tax by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for the events for bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares). Diluted earnings per share is computed by dividing the profit / (loss) after tax as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on conversion of all dilutive potential equity shares.

13. Trade Receivables, deposits and advance to parties include some old balances pending reconciliation/ adjustment/ confirmation.

14. Operating Cycle is considered to be twelve months period.

15. Previous Year''s Figures have been regrouped and re arranged wherever necessary.

THE NOTES REFERRED ABOVE FORM PART OF FINANCIAL STATEMENTS.

AS PER OUR REPORT OF EVEN DATE ATTACHED

FOR AND ON BEHALF OF THE BOARD

FOR PAMS & ASSOCIATES DILLIP KUMAR DAS DEBASIS DAS

CHARTERED ACCOUNTANTS MANAGING DIRECTOR DIRECTOR

FIRM REG. NO-316079E

SATYAJIT MISHRA

PARTNER RAJESH K. SUNDAR RAY RANJIT K. BISWAL

Membership No.057293 COMPANY SECRETARY CHIEF FINANCIAL OFFICER

BHUBANESWAR DATED : 27th May, 2024

---

Mar 31, 2015

1. CONTINGENT LIABILITIES & COMMITMENTS (Rs. in Lakhs)

SR Particulars 2014-15 2013-14 No

A. Contigent Liabilities

i. Un expired Letters of Credit 245.58 319.57

ii. Counter Guarantees given by Company for Bank Guarantees issued 519.46 377.33

iii. Claims against the Company not acknowledged as Debt

a) Income Tax 17.68 17.62

b) Sales Tax (*) 26.45 30.54

c) Entry Tax (#) 89.85 91.01

d) Excise - 1.06

TOTAL 899.02 837.13

* Amount paid under protest against the demands amounting to Rs. 19.46 lakhs (Previous Year- Rs.20.66 lakhs) is shown under"Long-term Loans and Advances" under Note No. 12

# Amount paid under protest against the demands amounting to Rs. 4.90 lakhs (Previous year- Rs. 4.20 lakhs )is shown under "Long Term Loans and Advances" under Note no.12

2. Disclosure relating to Gratuity, as certified by Life Insurance Corporation of India, (Pension and Group Scheme Department) for the year ended 31st March, 2015 have been made as below:

i) In accordance with applicable Indian laws, the Company provides for gratuity, a defined benefit retirement plan (Gratuity Plan) covering certain categories of employees.

ii) The Company provides the gratuity benefit through annual contributions to a fund managed by the Life Insurance Corporation of India (LIC). Under the plan, the settlement obligation remains with the Company, although the Life Insurance Corporation of India administers the plan and determines the contribution premium required to be paid by the Company.

iii) Annual premium payable to LIC amounting to Rs. 0.10 lakhs (Previous Year- Rs. 1.00lakhs) have been shown under "Employee Benefit Expenses" in Schedule-22.

3. Trade Receivables, deposits and advance to parties include some old balances pending reconciliation/ adjustment/ confirmation.

4. Advances received for supply of Transformers for Rs. 33.35 lakhs has been written back in view of absence of response by the customer since 2011. As and when the Customer intend to take the transformer, the Company will supply after receipt of differential price at prevailing market rate and overall cost will be debited to Statement of Profit & Loss as an event of that year.

4. In terms of Accounting Policy Note No. 25 (12), the Company assessed the Cash Generating Unit for Impairment Test using a discount rate of 8% and did not find any asset that requires a provision for impairment.

5. Operating Cycle is considered to be twelve months period.

6. Previous Year's Figures have been regrouped and re arranged wherever necessary.

---

Mar 31, 2014

The Term Loan availed from Axis Bank Limited is secured by :

i. Exclusive charge by way of hypothecation of entire movable fixed assets of the Company at its Vadodara Unit (both present and future).

ii. Equitable mortgage over lease hold right of the industrial land and factory building constructed/ to be constructed located at Plot No. 1046 to 1048. GIDC Estate, Waghodia, Vadodara, Gujarat. iii. Personal Guarantees given by three Directors including Managing Director.

2. DEFERRED TAX LIABILITY (Net)

The Company has been recognising in the financial statements the deferred tax assets/ liabilities, in accordance with Accounting Standard 22 " Accounting of Taxes on Income" issued by the Institute of Chartered Accountants of India. During the year, the Company has charged/(credited) to the Statement of Profit and Loss with Deferred Tax Asset (Net) of Rs NIL [ Previous year- Nil ] by restricting Deferred Tax Assets to Deferred Tax Liability figure making Deferred Tax element recognition at NIL during the year.

3. RELATED PARTY DISCLOSURES

Name

a) Related Companies

Industrial Designs & Services Ltd

Oricon Industries Limited

Galaxy Medicare Limited

Galaxy Medicare Limited

Phoneix Surgicare (P) Ltd

(wholly owned subsidary Company)

Alfa Electricals & Co

D.K.Das & Sons (HUF)

4. CONTINGENT LIABILITIES & COMMITMENTS ( Rs. in Lakhs )

SR No Particulars 2013 - 14 2012 - 13

A. Contigent Liabilities

i. Un expired Letters of Credit 319.57 223.66

ii. Counter Guarantees for Bank Guarantees issued 377.33 261.39

iii. Claims against the Company not acknowledged as Debt

a) Income Tax 17.62 17.62

b) Sales Ta x (*) 30.54 30.54

c) Entry Tax (#) 91.01 91.01

d) Excise 1.06 1.06

837.13 625.29

B. Commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for. — —

TOTAL 837.13 625.29

* Amount paid under protest against the demands amounting to Rs. 20.66 lakhs is shown under "Long-term Loans and Advances" under Note No.12

# Amount paid under protest against the demands amounting to Rs.4.20 lakhs which is shown under "Long Term Loans and Advances" under Note no.12

5. SEGMENT REPORTING :

The Company is mainly engaged in only one product i.e Transformer, which is considered the Primary reportable business segment as per Accounting standard (AS-17) "Segment reporting" issued by the Institute of Chartered Accountants of India. Business outside India and within India are considered to be Secondary Segment based on geographical segmentation. Details of expenses, assets and liabities of the respective segments have not been ascertained.

6. Disclosure relating to Gratuity, as certified by Life Insurance Corporation of India, (Pension and Group Scheme Department) for the year ended 31st March, 2014 have been made as below :

i) In accordance with applicable Indian laws, the Company provides for gratuity, a defined benefit retirement plan (Gratuity Plan) covering certain categories of employees.

ii) The Company provides the gratuity benefit through annual contributions to a fund managed by the Life Insurance Corporation of India (LIC). Under the plan, the settlement obligation remains with the Company, although the Life Insurance Corporation of India administers the plan and determines the contribution premium required to be paid by the Company.

iii) Annual premium payable to LIC amounting to Rs. 1.00 lakhs (Previous Year- Rs. 1.91 lakhs) have been shown under "Employee Benefit Expenses" in Schedule-22.

7. Capital Work in Progress of Rs.6.00 lakhs (Previous Year- Rs. 8.04 lakhs ) disclosed under Note No. -10 includes Rs.Nil (Previous Year - Nil ) being the borrowing cost/ Up-front Charges on Bank Borrowings for the Qualifying Assets in line with Accounting Standard 16 issued by The Institute of Chartered Accountants of India.

8. Trade Receivables, deposits and advance to parties include some old balances pending reconciliation/ adjustment/ confirmation. Efforts are being made for recovery/ reconciliation of such balances and resultant effect will be accounted for in the year of such adjustments.

9 Trade Receivables, includes deduction made towards liquidated damages/penalty amounting to Rs.59.59 lakhs, for which no provision is created in line with Accounting Policy No. 10.

10 In terms of Accounting Policy Note No. 25 (12), the Company assessed the Cash Generating Unit for Impairment Test using a discount rate of 8% and did not find any asset that requires a provision for impairment.

11 Operating Cycle is considered to be twelve months period.

12 Previous Year''s Figures have been regrouped and re arranged wherever necessary.

---

Mar 31, 2013

1. SEGMENT REPORTING :

The Company is mainly engaged in only one product i.e Transformer, which is considered the Primary reportable business segment as per Accounting standard (AS-17) "Segment reporting" issued by the Institute of Chartered Accountants of India. Business outside India and within India are considered to be Secondary Segment based on geographical segmentation. Details of expenses, assets and liabities of the respective segments have not been ascertained.

2. Disclosure relating to Gratuity, as certified by Life Insurance Corporation of India, (Pension and Group Scheme Department) for the year ended 31st March, 2013 have been made as below :

i) In accordance with applicable Indian laws, the Company provides for gratuity, a defined benefit retirement plan (Gratuity Plan) covering certain categories of employees.

ii) The Company provides the gratuity benefit through annual contributions to a fund managed by the Life Insurance Corporation of India (LIC). Under the plan, the settlement obligation remains with the Company, although the Life Insurance Corporation of India administers the plan and determines the contribution premium required to be paid by the Company.

iii) Annual premium payable to LIC amounting to Rs. 1.91 lakhs (Previous Year- Rs. 0.08 lakhs) have been shown under "Employee Benefit Expenses" in Schedule-22.

iv) Disclosures as required by AS-15 (Revised) are made as per the details submitted by LIC which are given below :

3. Capital Work in Progress of Rs.8.04 lakhs (Previous Year- Rs. 21.73 lakhs ) disclosed under Note No. -10 includes Rs.Nil (Previous Year- Nil ) being the borrowing cost/ Up-front Charges on Bank Borrowings for the Qualifying Assets in line with Accounting Standard 16 issued by The Institute of Chartered Accountants of India.

4. Trade Receivables, deposits and advance to parties include some old balances pending reconciliation/ adjustment/ confirmation. Efforts are being made for recovery/ reconciliation of such balances and resultant effect will be accounted for in the year of such adjustments.

5 Trade Receivables, includes deduction made towards liquidated damages/penalty amounting to Rs.130.93 lakhs, for which no provision is created in line with Accounting Policy No. 10.

6 In terms of Accounting Policy Note No. 25 (12), the Company assessed the Cash Generating Unit for Impairment Test using a discount rate of 8% and did not find any asset that requires a provision for impairment.

7 Operating Cycle is considered to be twelve months period.

8 Previous Year''s Figures have been regrouped and re arranged wherever necessary.

---

Mar 31, 2012

1. All figures in brackets are outflow.

2. Cash flow statement has been prepared under the indirect method as set out in Accounting Standard-3 issued by the Institute of Chartered Accountants of India.

3. Previous year figures regrouped/recast where ever necessary.

NOTES:

The Term Loan availed from State Bank of India is secured by :

i. Equitable mortgage of factory land measuring 0.826 acre at revenue Plot no. 4768 (P), IDCO Plot No. 2(P) at Mancheswar Industrial Estate,Bhubaneswar with all building, sheds and structures and immovable assets constructed/ situated thereon.

ii. Hypothecation of the Plant and Machinery and other fixed assets purchased out of the Term Loan.

iii.Second Charge on Raw Materials,Stock-in-Progress, Finished goods, Consumables, Book Debts and other Liquid Assets of Unit-1 and Unit-2 situated at Bhubaneswar.

iv.Personal Guarantees are given by three Directors including Managing Director.

The Term Loan availed from Axis Bank Limited is secured by :

i. Exclusive charge by way of hypothecation of entire movable fixed assets of the Company at its Vadodara Unit (both present and future).

ii. Equitable mortgage over lease hold right of the industrial land and factory building constructed/ to be constructed located at Plot No. 1046 to 1048. GIDC Estate, Waghodia, Vadodara, Gujarat.

iii.Personal Guarantees are given by three Directors including Managing Director.

The Company has been recognising in the financial statements the deferred tax assets/ liabilities, in accordance with Accounting Standard 22 " Accounting of Taxes on Income" issued by the Institute of Chartered Accountants of India. During the year, the Company has charged/(credited) to the Profit andLoss Account with Deferred Tax Asset (Net) of Rs.19.10 lakhs [ Previous year (Rs.19.10 lakhs)] by restricting Deferred Tax Assets to Deferred Tax Liability figure making Deferred Tax element recognition at NIL.

a) The Working Capital Loan availed from State Bank of India is secured by:

i. Equitable Mortgage over factory land and building at Plot No. 3337, Mancheswar Industrial Estate, Bhubaneswar.

ii. First Charge on fixed assets of the Company at Bhubaneswar Unit-2.

iii. Equitable Mortgage of Company's Properties Flat No. A/7, Lord Gunjan Palace, Bhubaneswar.

iv. Personal Guarantees are given by three Directors including Managing Director.

b) The Working Capital Loan availed from Axis Bank Limited is secured by:

i. Exclusive charge by way of hypothecation on entire current assets (both present & future) of Vadodara Unit of the Company.

ii.Personal Guarantees are given by three Directors including Managing Director.

1. CONTINGENT LIABILITIES (Rs in Lakhs)

SR No Particulars 2011-12 2010-11

A. Contigent Liabilities - -

i. Un expired Letters of Credit 91.04 357.14

ii. Counter Guarantees for Bank Guarantees issued 282.46 394.13

iii. Claims against the Company not acknowledged as Debt

a) Income Tax 11.85 11.85

b) Sales Tax (*) 31.84 31.84

c) Entry Tax (#) 25.21 25.21

d) Excise 1.06 1.06

443.46 821.22

B. Commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for. -- 1.42

TOTAL 443.46 822.64

* Advance against the demands amounting to Rs. 21.14 lakhs which has been paid under protest is shown under Short-term Loans and Advances under Note No.17.

# Advance against the demands amounting to Rs.4.60 lakhs which has been paid under protest which is shown under "Short Term Loans and Advances under Note no.17.

2. SEGMENT REPORTING :

The Company is mainly engaged in only one product i.e Transformer, which is considered the Primary reportable business segment as per Accounting standard (AS-17) "Segment reporting" issued by the Institute of Chartered Accountants of India. Business outside India and within India are considered to be Secondary Segment based on geographical segmentation. Details of expenses, assets and liabities of the respective segments have not been ascertained.

3. Disclosure relating to Gratuity, as certified by Life Insurance Corporation of India, (Pension and Group Scheme Department) for the year ended 31st March, 2012 have been made as below :

i) In accordance with applicable Indian laws, the Company provides for gratuity, a defined benefit retirement plan (Gratuity Plan) covering certain categories of employees.

ii) The Company provides the gratuity benefit through annual contributions to a fund managed by the Life Insurance Corporation of India (LIC). Under the plan, the settlement obligation remains with the Company, although the Life Insurance Corporation of India administers the plan and determines the contribution premium required to be paid by the Company.

iii) Annual premium payable to LIC amounting to Rs. 0.08 lakhs (Previous Year- Rs. 3.02 lakhs) have been shown under "Employees Cost" in Schedule-11.

iv) Disclosures as required by AS-15 (Revised) are made as per the details submitted by LIC which are given below :

4. Capital Work in Progress of Rs.21.73 lakhs (Previous Year- Rs. 120.76 lakhs ) disclosed under Note No. -10 includes Rs.Nil (Previous Year- Rs.1.78 lakhs) being the borrowing cost/ Up-front Charges on Bank Borrowings for the Qualifying Assets in line with Accounting Standard 16 issued by The Institute of Chartered Accountants of India.

5. Sundry Debtors, deposits and advance to parties include some old balances pending reconciliation/ adjustment/ confirmation. Efforts are being made for recovery/ reconciliation of such balances and resultant effect will be accounted for in the year of such adjustments.

6. In terms of Accounting Policy Note No. 25 (12), the Company assessed the Cash Generating Unit for Impairment Test using a discount rate of 7% and did not find any asset that requires a provision for impairment.

7. Operating Cycle is considered to be twelve months period.

8. Previous Year's Figures have been regrouped and re arranged wherever necessary.

---

Mar 31, 2010

Contingent Liabilities not provided for: Rs.In Lakhs

PARTICULARS As at As at 31.03.2010 31.03.2009

Un expired Letters of Credit 295.91 158.96

Counter Guarantees for Bank Guarantees issued 235.10 116.99

Claims against the Company not acknowledged as Debt,

(i)Income Tax 43.58 20.40

(ii)Sales Tax (*) 31.84 32.25

(iii)Entry Tax (#) 4.49 4.49

(iv)Excise 1.06 1.06

(v)ESI 0.21 0.21

Total 612.19 334.36

(*)Advance against the demands of Rs.21 .13 lakhs has been paid under protest which is shown under (Loans and Advances).

(#)Advance against the demands of Rs.2.30 lakhs has been paid under protest which is shown under (Loans and Advances).

a)Estimated amount of contracts remaining to be executed on capital account and not provided for Rs 8,12,036/- (net of advances)[ Previous year-Rs 87,50,786/-)

b)Capital Work in Progress of Rs.59.60,195/-(Previous Year-Rs.18,75, 933/-)disclosed under Schedule -5. includes Rs.1,11,0597-(Previous Year-Rs.1,21,226/-)being the borrowing cost /Up-front Charges on Bank Borrowings for the Qualifying Assets in line with Accounting Standard 16 issued by The Institute of Chartered Accountants of India.

c)The Company had revalued its Land -Leasehold and freehold Buildings, Plant &Machinery,Testing Equipments,Material handling equipments, Electrical Installations,Computers,Office equipment,Vehicle,Furniture &Fixtures as on 31.10.1999.The increase on revaluation has been transferred to FixedAssets Revaluation Reserve.The decrease in revaluation has been charged off to profit and loss account.

d)The Company has transferred Rs.3,68,43,045/-to Revaluation Reserve (Shown under Reserves &Surplus) on revaluation of Fixed Assets and transferred the additional charge of depreciation on revalued assets amounting to Rs.11,98,048/-(Previous Year -Rs.12,12,0897-)from Revaluation Reserve to Profit and Loss Account [Read with Accounting Policy 1 (c)(vi)].

e)Sundry Debtors,deposits and advance to parties include some old balances pending reconciliation/adjustment/confirmation.Efforts are being made for recovery/reconciliation of such balances and resultant effect will be accounted for in the year of such adjustments.

f)Under the Micro,Small and Medium Enterprises Development Act,2006, which came into force on October 2, 2006,certain disclosures are required to be made relating to Micro,Small and Medium Enterprisers. The Company is in the process of compiling relevant information from its supplies about their coverage under the Act.which have been relied upon by the Auditors.

g)In view of taxable income being less than the Book Profit as calculated under section 115JB of Income Tax Act, 1961,the Company is liable to pay Minimum Alternate Tax (on Book Profit)amounting to Rs.13,93,0697-which has been provided for.The Company has not recognized the same as Credit (in line with Guidance Note of Institute of Chartered Accountants of India in this regards)for equivalent amount during the year as set off is available U/s 115 JAA of Income Tax Act,1961 in the year when normal taxation arises on the taxable Income.

h)The Company has been recognizing in the financial statements the deferred tax assets /liabilities,in accordance with According Standard 22 "Accounting for Taxes on Income"issued by the Institute of Chartered Accountants of India.During the year,the Company has charged the Profit and Loss Account with Deferred Tax Liability (Net) of Rs.26.81 laks (Previous Year Rs.23.55 lakhs)