Notes to Accounts of Incon Engineers Ltd.

Mar 31, 2024

l) Provisions:

Provisions are recognised when there is a present legal or constructive obligation that can be estimated
reliably, as a result of a past event, when It is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation and a reliable estimate can be made of the
amount of the obligation. Provisions are not recognised for future operating losses.

Any reimbursement that the Company can be virtually certain to collect from a third party with respect
to the obligation is recognised as a separate asset. However, this asset may not exceed the amount
of the related provisions.

Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. If it is
no longer probable that an outflow of economic resources will be required to settle the obligation, the
provisions are reversed. Where the effect of the time of money is material, provisions are discounted
using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. When
discounting is used, the increase in the provisions due to the passage of time is recognised as a
finance cost.

m) Contingencies:

Where it is not probable that an inflow or an outflow of economic resources will be required, or the
amount cannot be estimated reliably, the asset or the obligation is not recognised in the statement of
balance sheet and is disclosed as a contingent asset or contingent liability. Possible outcomes on
obligations/rights, whose existence will only be confirmed by the occurrence or non-occurrence of one
or more future events are also disclosed as contingent assets or contingent liabilities.

n) Taxes on Income:

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount
expected to be paid to the tax authorities in accordance with the Income Tax Act. 1961. Current tax
includes taxes to be paid on the profit earned during the year and for the prior periods.

Deferred income taxes are provided based on the balance sheet approach considering the temporary
differences between the tax bases of assets and liabilities and their carrying amounts for financial
reporting purposes at the reporting date.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at
the balance sheet date. Deferred tax assets are recognised only to the extent that there is reasonable
certainty that sufficient future taxable income will be available against which such deferred tax assets
can be realised.

The carrying amount of deferred tax assets are reviewed at each balance sheet date. The company
writes off the carrying amount of a deferred tax asset to the extent that it is no longer probable that
sufficient future taxable income will be available against which deferred tax asset can be realized. Any
such write-off is reversed to the extent that it becomes reasonably certain that sufficient future taxable
income will be available.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity
and the same taxation authority.

o) Prior period items:

In case prior period adjustments are material in nature the company prepares the restated financial
statement as required under Ind AS 8 - "Accounting Policies, Changes in Accounting Estimates and
Errors”. In case of immaterial items pertaining to prior periods shown under respective items in the
Statement of Profit and Loss.

p) Cash and cash equivalents:

Cash and cash equivalents include cash on hand and at bank, deposits held at call with banks, other
short-term highly liquid investment with original maturities ol three months or less that are readily

convertible to a known amount of cash which are subject to an insignificant risk of changes in value
and are held for meeting short-term cash commitments.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short¬
term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral
part of the Company''s cash management.

q) Segment Reporting:

Identification of Segments:

The company''s operating business are organized and managed separately according to the nature of
products and services provided, with each segment representing a strategic business unit that offers
different products and serves different markets. The analysis of geographical segments is based on
the areas in which major operating divisions of the company operate. Operating Segments are reported
in a manner consistent with internal reporting provided to the Executive Manager/ Chief Operating
Decision Maker (CODM).

The Board of Directors of the company has identified Managing Director as the CODM.

Allocation of Common Costs:

Common allocable costs are allocated to each segment according to relative contribution of each
segment to the total common costs.

Unallocated Items:

The corporate and other segment includes general corporate income and expense items which are
not allocated to any business segment.

r) Financial instruments:

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.

Financial Assets:

a. Initial recognition and measurement:

All financial assets are recognised initially at fair value plus, in the case of financial assets not
recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition
of the financial asset. Transaction costs of financial assets carried at fair value through profit or
loss are expensed in the statement of profit or loss. Purchases or sales of financial assets that
require delivery of assets within a time frame established by regulation or convention in the
marketplace (regular way trades) are recognised on the trade date, i.e., the date that the company
commits to purchase or sell the asset.

b. Subsequent measurement:

For the purpose of subsequent measurement, financial assets are classified in to following
categories

a. Debt instruments at amortised cost

b. Debt Instruments at fair value through profit and loss (FVTPL)

c. Equity instruments at fair value through profit and loss (FVTPL)

a. Debts Instruments at amortised cost:

A Debt Instrument'' is measured at the amortised cost if both the following conditions
are met:

i. The asset is held within a business model whose objective is to hold assets for collecting
contractual cash flows, and

ii. Contractual terms of the asset give rise on specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised
cost using the effective interest rate (EIR) method.

Amortised cost is calculated by taking into account any discount or premium on

acquisition and fees or costs that are an integral part of EIR. The EIR amortisation is
included in other income in the profit or loss. The losses arising from impairment are
recognised in the profit or loss.

b. Debt Instruments at Fair value through profit and loss (FVTPL):

As per the Ind AS 101 and Ind AS 109, the Company is permitted to designate the
previously recognised financial asset at initial recognition irrevocably at fair value through
profit and loss on the basis of fact and circumstances that exists on the date of transition
to Ind AS. Debt instruments included within the FVTPL category are measured at fair
value with all changes recognised in the statement of Profit and Loss.

c. Equity instruments at fair value through profit and loss (FVTPL):

Equity instruments in the scope of Ind AS 109 are measured at fair value. The classification is
made on initial recognition and is irrevocable. Subsequent changes in the fair values at each
reporting date are recognised in the Statement of Profit and Loss.

c. Derecognition:

A financial asset or where applicable, a part of a financial asset is primarily derecognised when:

a. The rights to receive cash flows from the asset have expired, or

b. The company has transferred its rights to receive cash flows from the asset or has assumed
an obligation to pay the received cash flows in full without material delay to a third party
under a pass-through'' arrangement- and either (a) the Company has transferred substantially
all the risks and rewards of the asset, or (b) the company has neither transferred nor retained
substantially all the risks and rewards of the asset but has transferred control of the asset.
When the company has transferred its rights to receive cash flows from an asset or has
entered into a pass-through arrangement, it evaluates, if and to what extent it has retained
the risks and rewards of ownership. When it has neither transferred nor retained substantially
all of the risks and rewards of the asset, nor transferred control of the asset, the company
continues to recognise the transferred asset to the extent of the company''s continuing
involvement.In that case, the company also recognises an associated liability. The transferred
asset and the associated liability are measured on a basis that reflects the rights and
obligations that the company has retained.

d. Impairment of financial assets:

In accordance with Ind AS 109, the Company applies the expected credit loss (ECL) model for
measurement and recognition of impairment loss on financial instruments.

Expected credit loss is the difference between all contractual cash flows that are due to the
company in accordance with the contract and all the cash flows that the entity expects to receive.
The management uses a provision matrix to determine the impairment loss on the portfolio of
trade and other receivables. Provision matrix is based on its historically observed expected
credit loss rates over the expected life of the trade receivables and is adjusted for forward
looking estimates.

The expected credit loss allowance or reversal recognised during the period is recognised as
income or expense, as the case may be, in the statement of profit and loss. In case of balance
sheet, it is shown as an adjustment from the specific financial asset.

Financial liabilities:

a. Initial recognition and measurement:

At initial recognition, all financial liabilities are recognised at fair value and in the case of loans,
borrowings and payables, net of directly attributable transaction costs.

b. Subsequent measurement:

i. Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for
trading and financial liabilities designated upon initial recognition as at fair value through
profit or loss. Gains or losses on liabilities held for trading are recognised In the profit or

loss. The company does not designate any financial liability at fair value through profit or
loss.

ii. Financial liabilities at amortised cost:

Amortised cost, in the case of financial liabilities with maturity more than one year, is
calculated by discounting the future cash flows with an effective interest rate. Effective
interest rate amortisation is included as finance costs in the statement of profit and loss.
Financial liability with maturity of less than one year is shown at transaction value,

c. Derecognition:

A financial liability is derecognised when the obligation under the liability is discharged, cancelled,
or expires. The difference between the carrying amount of a financial liability that has been
extinguished or transferred to another party and the consideration paid, including any non-cash
assets transferred or liabilities assumed. Is recognised in profit or loss as other income or finance
costs.

Reclassification:

The Company determines classification of financial assets and liabilities on initial recognition.
After initial recognition, no reclassification is made for financial assets which are equity instruments
and financial liabilities. If the Company reclassifies financial assets, it applies the reclassification
prospectively from the reclassification date which is the first day of the immediately next reporting
period following the change in business model. The Company does not restate any previously
recognised gains, losses (including impairment gains or losses) or interest.

s) Fair Value Measurement:

The Company measures financial instruments at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is
based on the presumption that the transaction to sell the asset or transfer the liability takes place
either

• in the principal market for such asset or liability, or

• in the absence of a principal market, In the most advantageous market which is accessible to the
company.

The fair value of an asset or a liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their economic
best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to
generate economic benefits by using the asset In its highest and best use or by selling it to another
market participant that would use the asset in its highest and best use.

The company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximising the use of relevant observable inputs
and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorized within the fair value hierarchy, described as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:

a. Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

b. Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value
measurements is directly or indirectly observable.

c. Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.

For assets and liabilities that are recognised in the financial statements on recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re assessing the
categorization (based on the lowest level input that is significant to the fair value measurement as a
whole) at the end of each reporting period.

8. Other Information:

i. Plan Assets:

A! present the company has not invested any amount in plan assets.

ii. Present value of defined benefit obligation:

Present value of the defined benefit obligation is calculated by using Projected Unit Credit method
(PUC Method). Under the PUC method a “projected accrued benefit” is calculated at the beginning of
the year and again at the end of the year for each benefit that will accrue for all active members of the
Plan. The "projected accrued benefit” is based on the Plan''s accrual formula and upon service as of
the beginning or end of the year but using a member''s final compensation projected to the age at
which the employee is assumed to leave active service. The Plan Liability is the actuarial present
value of the “projected accrued benefits” as of the beginning of the year for active members.

iii. Expected average remaining service Vs. Average Remaining Future Service:

The average remaining service can be arithmetically arrived by deducting current age from normal
retirement age whereas the expected average remaining future service is arrived actuarially by applying
multiple decrements to the average remaining future service namely mortality and withdrawals. Thus,
the expected average remaining service is always less than the average remaining future service.

iv. The rate of escalation in compensation considered in the above valuation is estimated taking into
account inflation, seniority, promotion and other relevant factors and the above information is as certified
by an actuary.

The management assessed that cash and cash equivalents, trade receivables, trade payables and other
current assets/liabilities approximate their carrying amount largely due to the short-term maturities ot these
instruments.

The fair value of the financials assets and liabilities is reported at the amount at which the instrument could
be exchanged in a current transaction between willing parties other than in a forced or liquidation sale.
Description of significant observable inputs to valuation:

a. Interest free employee staff advance:

Since all the Employee advances are current in nature the carrying value is assumed to be the fair
value of such advances.

b. Interest free Security Deposits (assets):

All the non-current Security Deposits are with no repayment terms. Hence the carrying value is assumed
to be the fair value of such Deposits.

c. Interest free Security Deposits (liabilities):

Since all the Security Deposits are current in nature the carrying value is assumed to be the fair value
of such deposits.

36. Fair Value hierarchy:

The following table provide the fair value measurement hierarchy of the company''s assets and liabilities.
Quantitative disclosures of fair value measurement hierarchy for assets as at March 31,2024:

39. Financial Risk Management objectives and policies:

The company is exposed to financial risks arising from its operations and the use of financial
instruments. The key financial risks include market risk, credit risk and liquidity risk. The company''s
risk management policies focus on the unpredictability of financial risks and seek guidelines, where
appropriate, to minimize the potential adverse impact of such risks. There has been no change to the
company''s exposure to these financial risks or the manner in which it manages and measures the
risks.

The following sections provide the details regarding the Company''s exposure to the financial risks
associated with financial instruments held in the ordinary course of business and the objectives,
policies, and processes for the management of these risks.

The Company''s principal financial liabilities comprise trade and other payables. The main purpose of
these financial liabilities is to finance and support the Company''s operations. The Company''s principal
financial assets include trade and other receivables and cash and cash equivalents which are derived
from its operations

The company is exposed to market risk, credit risk and liquidity risk.The Company''s management
oversees the mitigation ot the risks. The Company''s financial risk activities are governed by appropriate
policies and procedures and financial risks are identified, measured, and managed in accordance
with the Company''s policies and risk objectives. The management / board reviews and agrees policies
for managing each of these risks, which are summarized below.

i. Market Risk:

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market prices comprise three types of risk: currency rate
risk, interest rate risk and other price risks such as equity risk. Financial instruments affected by
market risk include loans and advances and deposits.

a. Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument
will fluctuate because of changes in market interest rates. The Company''s exposure to the
risk of changes in market interest rates relates primarily to the loans and advances given by
the company and Cash and Cash equivalents.

As the total borrowings carry fixed rate interest, the company is not exposed to significant
interest risk as at the respective reporting dates.

b. Foreign Currency Risk:

Currency risk is the risk that the value of a financial instrument will fluctuate due to changes
in foreign exchange rates. Currency risk arises when transactions are denominated in foreign
currencies.

As there were no transactions denominated in foreign currencies in any of the reporting
periods, the company is not exposed to any foreign currency risk as at the respective
reporting dates.

c. Other price risk:

Other price risk is the risk that the fair value or future cash flows of the Company''s financial
instruments will fluctuate because of changes in market prices (other than those arising
from interest rate risk or currency risk) whether those changes are caused by factors specific
to the individual financial instrument or its issuer or by factors affecting all similar financial
instruments traded in the market.

The company, based on working capital requirement, keeps its liquid funds in current
accounts. The company doesn''t have any significant other price risk.

ii. Credit risk:

Credit risk Is the risk of loss that may arise on outstanding financial instruments when a
counterparty default on its obligations. The Company''s exposure to credit risk arises primarily
from trade and other receivables. For other financial assets (including cash and short-term
deposit) the Company minimise credit risk by dealing exclusively with high credit rating
counterparties. The Company''s objective is to seek continual revenue growth while minimising

losses incurred due to increased credit risk exposure. The Company trades only with recognised
and creditworthy third parties. It is the Company''s policy that all customers who wish to trade on
credit terms are subject to credit verification procedures.

In addition, receivable balances are monitored on an ongoing basis with the result that the
Company''s exposure to bad debts is not significant.

a. Exposure to credit risk:

At the end of the reporting period the Company''s maximum exposure to credit risk is
represented by the carrying amount of each class of financial assets recognised in the
statement of financial position. No other financial assets carry a significant exposure to
credit risk.

b. Credit risk concentration profile:

At the end of the reporting period there were no significant concentrations of credit risk. The
maximum exposures to credit risk in relation to each class of recognised financial assets is
represented by the carrying amount of each financial assets as indicated in the balance
sheet.

c. Financial assets that are neither past due nor impaired:

Trade and other receivables that are neither past due nor impaired are creditworthy debtors
with good payment record with the Company. Cash and short-term deposits that are neither
past due nor impaired are placed with or entered with reputable banks, financial institutions
or companies with high credit ratings and no history of default.

iii. Liquidity risk:

The risk that an entity will encounter difficulty in meeting obligations associated with financial
liabilities that are settled by delivering cash or another financial asset.

The company ensures that it has sufficient cash on demand to meet expected operational
demands including the servicing of financial obligations; this excludes the potential impact of
extreme circumstances that cannot reasonably be predicted.

Excessive Risk Concentration:

Concentrations arise when a number of counterparties are engaged in similar business activities or
activities in the same geographical region or have economic features that would cause their ability to
meet contractual obligations to be similarly affected by changes in economic, political, or other
conditions. Concentrations indicate the relative sensitivity of the company''s performance to
developments affecting a particular industry.

In order to avoid excessive concentrations of risk, the Company''s policies and procedures include
specific guidelines to focus on the maintenance of a diversified portfolio. Identified concentrations of
credit risks are controlled and managed accordingly.

40. Capital Management:

Capital includes equity attributable to the equity holders of the company. The primary objective of the
capital management is to ensure that it maintains an efficient capital structure and healthy capital
ratios in order to support its business and maximise shareholder''s value.

The company manages its capital structure and make adjustments to it in light of changes in economic
conditions and the requirements of the financial covenants. The Company monitors capital using a
gearing ratio, which is debt divided by total capital plus debt. The Company''s policy is to keep the
gearing ratio at an optimal level to ensure that the debt related covenants are complied with.

per our review report of even date for and on behalf of the Board

for BRAHMAYYA & CO.,

Chartered Accountants

Firms'' Registration Number: 000513S

Managing Director

P.CHANDRAMOULI

Partner Director

Membership Number: 025211

Place: Hyderabad CFO & Secretary

Date : 24.05.2024

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Mar 31, 2013

1 NATURE OF OPERATIONS

Incon Engineers Limited (the Company) has been incorporated on 13.02.1970. At present the Company is engaged in the business of manufacturing of Chemical process equipment and agricultural machinery

2 BASIS OF ACCOUNTING

The financial statements have been prepared to comply in all material respects with the Notified accounting standards by Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared in accordance with the generally accepted Accounting Principles in India under the historical cost convention and on accrual basis, except in case of assets for which provision for impairment is made and revaluation is carried out. The accounting policies are consistent with those used in the previous year.

3 The details of the transactions with related parties to be disclosed as required by Accounting Standard -18 are as follows.

a) Names of Related parties and description of relationship. i) Key Management Personnel : Sri Sreedhar Chowdhury.

Managing Director. ii) Relatives of Key Management : Not Applicable

Personnel iii)Associates : Oxeeco Meditek Private Limited

:.Oxeeco Technologies Private Limited,

: The Oxeeco Limited.

: Fusion Lastek Technologies Private Limited

4 In terms of Accounting Standard (AS 28) on "Impairment of Assets", as notified by the Companies (Accounting Standards) Rules, 2006 (as amended), the management has carried out the assessment of impairment of assets and no impairment loss has been recognized during the year.

5 Previous year figures are regrouped and reclassified where ever necessary to make them comparable with those of current year.

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Mar 31, 2012

1. NATURE OF OPERATIONS

Incon Engineers Limited (the Company) has been incorporated on 13.02.1970. At present the Company is engaged in the business of manufacturing of Chemical process equipment and agricultural machinery

2. BASIS OF ACCOUNTING

The financial statements have been prepared to comply in all material respects with the Notified accounting standards by Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956, The financial statements have been prepared in accordance with the generally accepted Accounting Principles in India under the historical cost convention and on accrual basis, except in case of assets for which provision for impairment is made and revaluation is carried out. The accounting policies are consistent with those used in the previous year.

a. Rights attached to equity Shares :

The company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

3. DEFERRED TAX ASSETS (Net)

The Company does not have any current income tax as per the normal provisions of the Income tax Act, 1961 . In view of the ineligibility to assess future taxable income under normal provisions, the extent of net deferred tax asset which may be adjusted in the subsequent years is not ascertainable with virtual certainty at this stage and accordingly in terms of Accounting Standard (AS 22) on "Accounting for Taxes on Income" as notified by the Companies (Accounting Standards) Rules, 2006 (as amended), and based on general prudence, the Company has not recognised any Deferred tax Asset while preparing the accounts for the current year.

4. In the opinion of the management, the current assets, loans and advances are expected to realise at least the amount at which they are stated, if realised in the ordinary course of business and provision for all known liabilities have been adequately made in the accounts.

5. Disclosure of Sundry Creditors under current liabilities is based on the information available with the Company regarding the status of the suppliers as defined under the "Micro, Small and Medium Enterprises Development Act, 2006" and relied upon by the Auditors.

6. Details of total outstanding dues to Micro and Small Enterprises as per Micro, Small and Medium Enterprise Development Act, 2006.

Particulars 31.03.2012 31.03.2011 Rs. Rs.

The principal amount and the interest due Nil Nil thereon (to be shown separately) remaining unpaid to any supplier as at the end of each accounting year.

The amount of interest paid by the Nil Nil buyer in terms of Section 16, of the Micro, Small and Medium Enterprise Development Act, 2006 along with the amounts of the payment made to the supplier beyond the appointed day each accounting year

The amount of interest due and payable for Nil Nil the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under Micro, Small and Medium Enterprise Development Act, 2006.

The amount of interest accrued and remaining unpaid at the end of each Nil Nil accounting year; and

The amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise for the purpose of disallowance as a deductible expenditure under Nil Nil

Section 23 of the Micro, Small and Medium Enterprise Development Act, 2006.

7. The company's main business is manufacturing of various equipment and machinery and all other activities of the company revolve around the main business and as such there are no separate reportable business segments as per the Accounting standard " Segment Reporting"(AS 17)

8 The details of the transactions with related parties to be disclosed as required by Accounting Standard -18 are as follows.

a) Names of Related parties and description of relationship.

i) Key Management Personnel : Sri Sreedhar Chowdhury.

: Managing Director.

ii) Relatives of Key Management : Not Applicable

Personnel ii) Associates : Oxeeco Meditek Private Limited

: Oxeeco Technologies Private Limited,

: The Oxeeco Limited.

: Fusion Lastek Technologies Private Limited

9. Contingent Liabilities not provided for an account of 31.03.2012 31.03.2011

(amount in Rupees)

a) Claims against the company not acknowledged 16,49,505 16,29,705 as a debits

b) Demands from Sales Tax Department disputed by the company pending in appeals to extent not provided for 1,25,101 1,25,101

10. Having regard to the losses incurred ,the Company does not have any Current tax at present and has unabsorbed depreciation and carried forward business losses available for set off under the Income Tax Act, 1961 In view of inability to assess future taxable income, the extent of net deferred tax asset which may be adjusted in the subsequent years is not ascertainable with virtual certainty at this stage and accordingly in terms of Accounting Standard (AS 22) on "Accounting for Taxes on Income" as notified by the Companies (Accounting Standards) Rules, 2006 (as amended), and based on general prudence, the Company has not recognized any Deferred Tax Asset while preparing the accounts for the current year.

11. In terms of Accounting Standard (AS 28) on "Impairment of Assets", as notified by the Companies (Accounting Standards) Rules, 2006 (as amended), the management has carried out the assessment of impairment of assets and no impairment loss has been recognized during the year.

12. Previous year figures are regrouped and reclassified where ever necessary to make them comparable with those of current year.

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Mar 31, 2010

1. NATURE OF OPERATIONS

Incon Engineers Limited (the Company) has been incorporated on 13-02-1970. At present the Company is engaged in the business of manufacturing of Chemical process equipment and agricultural machinery.

2. Disclosure of Sundry Creditors under current liabilites is based on the information available with the Company regarding the status of the suppliers as defined under the "Micro, Small and Medium Enterprises Development Act, 2006" and relied upon by the Auditors. During the year the Company has paid no interest in terms of Section 16 of the said Act.

3. In the opinion of the management, the current assets, loans and advances are expected to realize at least the amount at which they are stated, if realized in the ordinary course of business and provision for all known liablities have been adequately made in the accounts.

4. Contingent Liabilities not provided for oh account of 2009-10 2008-09

Rs. Rs.

5. The Companys main business is manufacturing of chemical process equipment and agricultural machinery and all other activities of the Company revolve around the main business and as such there are no separate reportable business segments as per the Accounting Standard "Segmental Reporting" (AS17)

6. The details of the transactions with related parties to be disclosed as required by Accounting Standard -18 are as follows.

a) Names of related parties and description of relationship.

i) Key Management Personnel : Sri Sreedhar Chowdhury,

Managing Director.

ii) Relatives of Key Management Personnel : Smt. R. Chowdhury,

W/o Sri Sreedhar Chowdhury.

iii) Associates : Oxeeco Meditek Pvt,Ltd,

: Oxeeco Technologies Pvt .Ltd,

: The Oxygen Equipment &

Engineering Co.Ltd., : Fusion Lastek Technologies Pvt. Ltd.

7. In lerms of Accounting Standard (AS-22) on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, there is a net deferred tax asset as on 31st March, 2010. In compliance with the provisions of the Accounting Standard and based on general prudence, the Company has not recognized the said deferred tax asset while preparing the accounts for the current year.

8. The Management has carried out the assessment of impairment of assets and no impairment loss has been recognized during the year.

9. Previous year figures are regrouped and reclassified wherever necessary to make them comparable with those of current year.