Notes to Accounts of S & S Power Switchgear Ltd.

Mar 31, 2025

3.12 PROVISIONS (OTHER THAN FOR EMPLOYEE BENEFITS) AND CONTINGENCIES:

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result
of a past event, it is probable that the Company will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the
present obligation at the end of the reporting period, taking into account the risks and uncertainties
surrounding the obligation. If the effect of the time value of money is material, provisions are discounted
using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When dis¬
counting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

When some or all of the economic benefits required to settle a provision are expected to be recovered
from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be
received and the amount of the receivable can be measured reliably. The expense relating to a provision
is presented in the Statement of profit and loss net of any reimbursement.

Provision for Warranties:

The warranty provision is provided at the end of reporting period based on technical evaluation, histor¬
ical warranty data and all possible outcomes by their associated probabilities.

Onerous contracts: A contract is considered to be onerous when the expected economic benefits to
be derived by the Company from the contract are lower than the unavoidable cost of meeting its obli¬
gations under the contract. The provision for an onerous contract is measured at the present value of
the lower of the expected cost of terminating the contract and the expected net cost of continuing with
the contract.

Contingent Assets:

A contingent asset is not recognised but disclosed in the Financial Statements where an inflow of eco¬
nomic benefit is probable.

Contingent liabilities

Contingent liability is disclosed in the case of:

i. A present obligation arising from past events, when it is not probable that an outflow of resources will
be required to settle the obligation;

ii. A present obligation arising from past events, when no reliable estimate is possible;

iii. A possible obligation arising from past events, unless the probability of outflow of resources is
remote.

3.13 BORROWING COSTS

Borrowing costs directly attributable to the acquisition, construction, or production of qualifying assets,
that necessarily take a substantial period to get ready for their intended use or sale, are added to the cost
of those assets, until the assets are substantially ready for their intended use or sale.

Interest income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing cost eligible for capitalization.

All other borrowing costs are recognized in Statement of profit and loss in the period in which they are incurred.

3.14 LEASES

A contract is, or contains, a lease if the contract conveys right to control the use of an identified asset for
a period of time in exchange for consideration.

Company as a lessee

A. Lease Liability

At the commencement date, the company measures the lease liability at the present value of the lease
payments that are not paid at that date. The lease payments shall be discounted using incremental bor¬
rowing rate (as determined by the management from time to time).

The Company determines the lease term as the non-cancellable period of a lease, together with both
periods covered by an option to extend or terminate the lease if the Company is reasonably certain based
on relevant facts and circumstances that the option to extend or terminate will be exercised. If there is a
change in facts and circumstances, the expected lease term is revised accordingly.

B. Right of use assets

Initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or prior to the commencement date of the lease plus any initial direct costs less any
lease incentives.

Subsequent measurement

A. Lease Liability

Company measures the lease liability by (a) increasing the carrying amount to reflect interest on the lease
liability; (b) reducing the carrying amount to reflect the lease payments made; and (c ) remeasuring the
carrying amounts to reflect any reassessment or lease modifications

B. Right of use assets

Subsequently measured at cost less accumulated depreciation and impairment losses. Right of use
assets are amortised from the commencement date on straight-line basis over the shorter of the lease
term and useful life of the under lying asset

Impairment

Right of use assets are evaluated for recoverability wherever events or changes in circumstances indicate
that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recov¬
erable amount (i.e. the higher of the fair value less cost to sell and the value in use) is determined on an
individual asset basis unless the asset does not generate cash flows that are largely independent of those
from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit
(CGU) to which the asset belongs.

Short term lease

Short term lease is that, at the commencement date, has a lease term of 12 months, or less. A lease that
contains a purchase option is not a short term lease. If the company elected to apply short term lease,
the lessee shall recognise the lease payments associated with those leases as an expense on either a
straight line basis over the lease term or another systematic basis. The lessee shall apply another sys¬
tematic basis if that basis is more representative of the pattern of the lessee’s benefit. Leases of low value
assets are recognised in the statement of profit and loss on straight line basis.

As a lessor

Leases for which the company is a lessor is classified as a finance or operating lease. Whenever the
terms of the lease transfers substantially all the risks and rewards of ownership to the lessee, the contract
is classified as as finance lease. All other leases are classified as operating leases.

Lease income is recognised in the statement of profit and loss on straight line basis over the lease term

3.15 EARNINGS PER SHARE

Basic earnings per share are calculated by dividing the profit/ (loss) from continuing operations and the
total profit/ (loss)attributable to equity shareholders(after deducting attributable taxes) by the weighted
average number of equity shares outstanding during the period.

For calculating diluted earnings per share, the profit/(loss) from continuing operations and the total profit/
(loss) attributable to equity shareholders by the weighted average number of shares outstanding during
the period after adjusting the effects of all dilutive potential equity shares.

3.16 CASH FLOW STATEMENT

Cash and cash equivalents include cash at bank and cash in hand and highly liquid interest-bearing
securities with maturities of three months or less from the date of inception/acquisition

The Cash Flow Statement is prepared by using the “indirect method” set out in Ind AS 7 on “Cash Flow
Statements” and presents the cash flows during the period by operating, investing and financing activi¬
ties of the company.

3.17 SEGMENT REPORTING:

Segment information Operating segments are defined as components of an enterprise for which discrete
financial information is available that is evaluated regularly by the chief operating decision maker, in
deciding how to allocate resources and assessing performance Revenue and expenses directly attribut¬
able to segments are reported under each reportable segment. Expenses which are not directly identifi¬
able to each reporting segment have been allocated on the basis of associated revenue of the segment.
All other expenses which are not attributable or allocable to segments have been disclosed as unalloca¬
ble expenses.

The Segment disclosure are given in the Consolidated Financial Statements by virtue of exemption given
in Ind AS - “Operating Segment”.

B. Functional and presentation currency

These financial statements are presented in Indian Rupees (?), which is also the Company’s functional
currency. All amounts have been rounded-off to the nearest lakhs, unless otherwise indicated.

Note 16.3 Terms / rights attached to class of shares

(a) The Company has only one class of share referred to as equity shares having a par value of ? 10/-. Each
holder of equity shares is entitled to one vote per share.

(b) The Company declares and pays dividends if any, in Indian rupees. The dividend proposed, if any, by the
Board of Directors is subject to the approval of the Shareholders at the ensuing Annual General Meeting,
except in case of interim dividend.

(c) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the
remaining assets of the Company, after distribution of all preferential amount. The distribution will be propor¬
tionate to the number of equity shares held by the share holders.

(d) For the period of five years immediately preceding the date as at which the Balance Sheet is prepared:

(1) During the year 30,33,442 Equity shares were allotted as fully paid up pursuant to contract(s) without payment

being received in cash.

The establishment of S & S Power Switchgear - Employee Stock Option Scheme 2024 (ESOS 2024) was
approved by the Board of Directors at its meeting held on August 30, 2024 and by the shareholders in the Annual
General Meeting held on September 30, 2024. The Scheme shall be administered by the Committee via primary
allotment of equity shares

The ESOS 2024 scheme is designed to provide benefits to the eligible employees of the company and its
subsidiaries. Under the plan, the participants are granted options which vest upon completion of three years
of service from the grant date. Only Employees are eligible for being granted Options under the Scheme. The
specific Employees to whom the Options would be granted, and their Eligibility Criteria shall be determined by
the Committee.

Once vested, the options remain exercisable for a maximum period of 4 (Four) years commencing from the rel¬
evant date of Vesting of Options, or such other shorter period as may be prescribed by the Committee at time
of Grant.

Options are granted under the scheme for no consideration and carry no dividend or voting rights. When exer¬
cisable, each option is convertible into one equity share.

[A] Defined contribution plans:

The Company makes contribution towards provident fund to defined contribution retirement benefit plan for
qualifying employees. The provident fund contributions are made to Government administered Employees
Provident Fund. Both the employees and the Company make monthly contributions to the Provident Fund Plan
equal to a specified percentage of the covered employee’s salary.

The Company recognised ? 11.12 lakhs in current financial year (? 6.37 lakhs in immedeate previous financial
year) for provident fund contributions in the Statement of Profit and Loss.

[B] Defined benefit plan:

The Company makes annual contributions to Employees’ Gratuity Fund which is administered by the Life
Insurance Corporation of India. Having regard to the assets of the gratuity fund and the return on the investment
the company does not expect any deficiency as at the year end. The scheme provides for payment to vested
employees as under:

i) On normal retirement / early retirement / withdrawal / resignation: As per the provisions of Payment of
Gratuity Act, 1972 with vesting period of 5 years of service.

ii) On death in service: As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.
Investment risk:

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by
reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is
below this rate, it will create plan deficit.

Interest risk:

A decrease in the bond interest rate will increase the plan liability; however, this will be partially off set by an
increase in the plan assets.

Longevity risk:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the
mortality of plan participants both during and after their employment. An increase in the life expectancy of the
plan participants will increase the plan’s liability.

Salary risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

j) Sensitivity analysis

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and
expected salary increase. The sensitivity analysis below have been determined based on reasonably possible
changes of the respective assumptions occurring at the end of the reporting period, while holding all other
assumptions constant.

[B] Defined benefit plan: Leave

The Company does not makes annual contributions to leave benefit Fund. The scheme provides for payment
to vested employees as under:

i) On normal retirement / early retirement / withdrawal / resignation: Accumulated leave balance as on the date
of retirement /resignation

ii) On death in service: Accumulated leave balances
Investment risk:

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by
reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is
below this rate, it will create plan deficit.

Interest risk:

A decrease in the bond interest rate will increase the plan liability.

Longevity risk:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the
mortality of plan participants both during and after their employment. An increase in the life expectancy of the
plan participants will increase the plan’s liability.

Salary risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

Note 39 Financial instruments
[A] Capital Management:

The Company’s policy is to maintain a strong capital base so as to ensure that the Company is able to continue as
going concern to sustain future development of the business. The Company monitors the return on capital as well
as the level of dividends to ordinary shareholders.

Its guiding principles

i) Maintenance of financial strength to ensure the highest ratings;

ii) Ensure financial flexibility and diversify sources at financing;

included in level 2. In the case of the mutual funds are valued using the closing NAV. In the case of Derivative
contracts, the Company has valued the same using the forward exchange rate as at the reporting date.

iii) Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included
in level 3. This is the case for unlisted equity securities included in level 3. The Company owns unlisted equity
shares in companies, which are non-profit companies providing facilities for treating effluents generated during
its manufacturing process. In the absence of any observable market data in relation to the said companies, the
same have been categorised as Level 3. Considering the objective of investment and materiality, its fair value
have been considered same as cost as at the reporting date.

Note 39 Financial risk management
Risk management framework

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s
risk management framework.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company,
to set appropriate risk limits and controls and to monitor risks. Risk management policies and systems are reviewed
regularly to reflect changes in market conditions and the Company’s activities.

The audit committee oversees how the management monitors compliance with the Company’s risk management
policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced
by the Company. The audit committee is assisted by internal audit. Internal audit undertakes both regular and ad
hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

The Company has exposure to the following risks arising from financial instruments:

A) Credit risk;

B) Liquidity risk;

C) Market risk; and

D) Interest rate risk
[A] Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails
to meet its contractual obligations, and arises principally from the Company’s receivables from customers, loans
and investment in debt securities. Credit risk is managed through credit approvals, establishing credit limits and
continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal
course of business. The Company establishes an allowance for doubtful trade receivables and impairment that
represents its estimate of incurred losses in respect of trade and other receivables and investments.

The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their
respective carrying amount.

Trade and other receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The
demographics of the customer and including the default risk of the industry, also has an influence on credit risk
assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring
the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company considers the probability of default upon initial recognition of asset and whether there has been a
significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a
significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting
date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding¬
looking information such as:

i) Actual or expected significant adverse changes in business;

ii) Actual or expected significant changes in the operating results of the counterparty;

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty’s ability to
meet its obligations;

iv) Significant increase in credit risk on other financial instruments of the same counterparty;

v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party
guarantees or credit enhancements.

Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to
engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company
continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made,
these are recognized as income in the statement of profit and loss.

The provision matrix takes into account historical credit loss experience and adjusted for forward-looking information.
The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates as
given in the provision matrix. The provision matrix at the end of the reporting period is as follows :

The Company measures the expected credit loss of trade receivables based on historical trend, industry practices
and the business environment in which the entity operates. Loss rates are based on actual credit loss experience
and past trends.

Loans

In the case of loans to concerned employees, the same is managed by establishing limits. (Which in turn based on
the employees salaries and number of years of service put in by the concern employee)

Cash and cash equivalents

The Company held cash and cash equivalents of ? 31.71 lakhs at 31st Mar, 2025 (? 1.68 lakhs at 31st Mar, 2024).
The cash and cash equivalents are held with bank and financial institution counterparties with good credit ratings.

[B] Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset. The responsibility for liquidity risk
management rests with the board of directors, which has established an appropriate liquidity risk management
framework for the management of the Company’s short-term, medium-term and long-term funding and liquidity
management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities
and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the
maturity profiles of financial assets and liabilities.

The current liabilities include inter corporate deposits from related parties which are repayable on demand.
Based on past experience, the Company does not expect immediate demand for repayment of such deposits

[C] Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity
prices - will affect the Company’s income or the value of its holdings of financial instruments. The objective of
market risk management is to manage and control market risk exposures within acceptable parameters, while
optimising the return.

[D] Currency risk

The Company is not exposed to the foreign currency transactions hence the disclosure is not applicable

[E] Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk
is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest
rates, in cases where the borrowings are measured at fair value through profit or loss. Cash flow interest rate risk
is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations
in the interest rates. The Company’s investments are primarily in fixed rate interest bearing investments. Hence,
the Company is not significantly exposed to interest rate risk. Also there is no material interest risk relating to the
Company’s financial liabilities.

[F] Fair Values:

The following table presents the carrying amounts and fair value of each category of financial assets and liabilities.

The Company is a party to various legal proceedings in the normal course of business and does not expect
the outcome of these proceedings to have any material adverse effect on its financial conditions, results of
operations or cash flows. Further, claims by parties in respect of which the Management have been legally
advised that the same are frivolous and not tenable, have not been considered as contingent liabilities as the
possibility of an outflow of resources embodying economic benefit is highly remote.

For Asst. year 2007-08, Department has filed an appeal against the CIT(A)’s order directing the deletion of
addition made representing waiver of principal portion of loans from banks and financial institutions and the
consequential tax demand is ? 92.98 lakhs. The High Court Judgment dated 22.08.2019 has dismissed the case
against the Department on account of monetary limit being increased to Rs 1 Crore [Tax case appeal no 773 of
2013]

In respect to PF contribution threshold, there are numerous interpretative issues relating to the Supreme Court
(SC) Judgement on PF dated 28th February, 2019. The company will update its provision, on receiving further
clarity on the subject. In respect of the items above, further cash outflows in respect of contingent liabilities are
determinable only on receipt of judgements/decisions pending at various forums/authority. The company does
not expect the outcome of matters stated above to have a material adverse effect on the company’s financial
conditions, result of operations or cash flows.

Note 43 CSR Expenditure

The Company does not meet the turnover and networth criteria specified under Section 135 of the Companies
Act, 2013 to constitute a Corporate Social Responsibility Committee. Thus, provisions of Section 135 and
disclosure requirements specified therein are not applicable to the company.

* The Company has given corporate guarantee for working capital facility given by ICICI for its subsidiary entity
S & S Power Switchgear Equipments Limited

Note 47 Going Concern

As on 31st March 2023, the Company’s current liabilities exceeds its current assets mainly due to the loans
granted by the promoter group for sustaining the business operations. The Company has also suffered losses
over the last few years. The promoter group has promised to extend continuous support to enable the long-term
operations of the company. Hence the accounts are prepared on a Going concern basis.

Note 47 Segment Information

As permitted by paragraph 4 of Ind AS-108, ‘Operating Segment’, if a single financial report contains both
consolidated financial statements and the separate financial statements of the parent, segment information need
be presented only on the basis of the consolidated financial statements. Thus, disclosures required by Ind-AS
108 are given in consolidated financial statements.

Note 48 Other Statutory Information

i. The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.

ii. The Company does not have any transaction with Companies Struck off u/s. 248 of the Companies Act,
2013 or u/s. 560 of the Companies Act, 1956.

iii. The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.

iv. The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

v. No Bank or financial institution or other lender has declared the Corporation as willful defaulter.

vi. The Company has not advanced or loaned or invested funds to any persons or entities, including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the company (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

vii. The Company have not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Funding Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

viii. The company doesn’t hold any immovable property.

ix. There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237
of the Companies Act, 2013.

x. The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of
the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 (as
amended).

xi. The Company does not have any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act,
1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

Note 49 Events occurring after the Balance sheet date

No adjusting or significant non-adjusting events have occurred between the reporting date (31st March, 2025)
and the report release date (23rd May, 2025).

Note 50 Previous year figures have been regrouped/reclassified to confirm to current year classification.

See accompanying notes forming part of the financial statements

As per our attached report of even date

For CNK & Associates LLP For and on behalf of the Board of Directors of

Chartered Accountants S&S Power Switchgear Limited

ICAI Firm Registration No: 101961W/W100036 CIN: L31200TN1975PLC006966

Uttamchand Jain Krishnakumar Ramanathan Ashish Sushil Jalan

Partner Managing Director Chairman

Membership No: 205976 DIN No: 08880943 DIN No: 00031311

Place: Chennai Place: Kolkata Place: Kolkata

Date: 23-May-2025 Date: 23-May-2025 Date: 23-May-2025

Sathyanarayanan C N Prince Thomas

Group Chief Financial Officer Company Secretary & Compliance Officer

Place: Kolkata Place: Kolkata

Date: 23-May-2025 Date: 23-May-2025

---

Mar 31, 2023

Terms / rights attached to class of shares

(a) The Company has only one class of share referred to as equity shares having a par value of ^ 10/-. Each holder of equity shares is entitled to one vote per share.

(b) The Company declares and pays dividends if any, in Indian rupees. The dividend proposed, if any, by the Board of Directors is subject to the approval of the Shareholders at the ensuing Annual General Meeting, except in case of interim dividend.

(c) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amount. The distribution will be proportionate to the number of equity shares held by the shareholders.

(d) There is no change in issued and paid up share capital during the year.

Nature and Purpose of Reserves:

Securities Premium Reserve

Securities premium reserve is used to record the premium on issue of shares. This reserve is utilised in accordance with the provisions of the Act.

General Reserve

The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act 2013.

Retained earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

A) The information regarding Micro Enterprises and Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.

B) The average credit period on purchases of goods is 60 days.

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year.

Note 37 Employee benefits

[A] Defined contribution plans:

The Company makes contribution towards provident fund to defined contribution retirement benefit plan for qualifying employees. The provident fund contributions are made to Government administered Employees Provident Fund. Both the employees and the Company make monthly contributions to the Provident Fund Plan equal to a specified percentage of the covered employee’s salary.

The Company recognised ^ 6.76 lakhs in current financial year 7.68 lakhs in immediate previous financial year) for provident fund contributions in the Statement of Profit and Loss.

[B] Defined benefit plan:

The Company makes annual contributions to Employees’ Gratuity Fund which is administered by the Life Insurance Corporation of India. Having regard to the assets of the gratuity fund and the return on the investment the company does not expect any deficiency as at the year end. The scheme provides for payment to vested employees as under:

i) On normal retirement / early retirement / withdrawal / resignation: As per the provisions of Payment of Gratuity Act, 1972 with vesting period of 5 years of service.

ii) On death in service: As per the provisions of Payment of Gratuity Act, 1972 without any vesting period. Investment risk:

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create plan deficit.

Interest risk:

A decrease in the bond interest rate will increase the plan liability; however, this will be partially off set by an increase in the plan assets.

Longevity risk:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

Salary risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

j) Sensitivity analysis

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and expected salary increase. The sensitivity analysis below has been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown.

Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity plan and the amounts recognised in the Company’s financial statements as at balance sheet date:

[A] Capital Management:

The Company’s policy is to maintain a strong capital base so as to ensure that the Company is able to continue as going concern to sustain future development of the business. The Company monitors the return on capital as well as the level of dividends to ordinary shareholders.

Its guiding principles

i) Maintenance of financial strength to ensure the highest ratings;

ii) Ensure financial flexibility and diversify sources at financing;

iii) Manage Company exposure in forex to mitigate risks to earnings;

iv) Leverage optimally in order to maximum shareholders returns while maintaining strength and flexibility of the balance sheet.

* Total Borrowings includes reclassification of dues to related parties from other financial liabilities-current to Non-Current Borrowings during the year as these were restructured as long-term loans repayable on maturity. Hence only interest accrued but not due is classified as current borrowings for year ended 31st Mar 2023. Previous year “Due to related parties” is reclassified to current borrowings from other financial liabilities-current.

[B] Valuation:

All financial instruments are initially recognised and subsequently re-measured at fair value as described below:

i) The fair value of investment in quoted Equity shares, Bonds, Government Securities and Mutual funds is measured at quoted price or NAV.

ii) The fair value of Forward Foreign Exchange contracts is determined using forward exchange rates at the balance sheet date.

iii) All foreign currency denominated assets and liabilities are translated using exchange rate at reporting date.

iv) The fair value of the remaining financial instruments is determined using discounted cash flow analysis.

The financial instruments are categorised into three levels based on the inputs used to arrive at fair value measurements as described below:

i) Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

ii) Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. In the case of the mutual funds are valued using the closing NAV. In the case of Derivative contracts, the Company has valued the same using the forward exchange rate as at the reporting date.

iii) Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities included in level 3. The Company owns unlisted equity shares in companies, which are non-profit companies providing facilities for treating effluents generated during its manufacturing process. In the absence of any observable market data in relation to the said companies, the same have been categorised as Level 3. Considering the objective of investment and materiality, its fair value have been considered same as cost as at the reporting date.

Note 39 Financial risk management Risk management framework

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities.

The audit committee oversees how the management monitors compliance with the Company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

The Company has exposure to the following risks arising from financial instruments:

A) Credit risk;

B) Liquidity risk;

C) Market risk; and

D) Interest rate risk

[A] Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers, loans and investment in debt securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for doubtful trade receivables and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments.

The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their

i\pom/inn omm int

Trade and other receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer and including the default risk of the industry, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business;

ii) Actual or expected significant changes in the operating results of the counterparty;

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty’s ability to meet its obligations;

iv) Significant increase in credit risk on other financial instruments of the same counterparty;

v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements.

Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss.

The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends.

Loans

In the case of loans to concerned employees, the same is managed by establishing limits. (Which in turn based on the employees’ salaries and number of years of service put in by the concern employee)

Cash and cash equivalents

The Company held cash and cash equivalents of ^ 1.21 lakhs at 31st Mar, 2023 (^ 2.06 lakhs at 31st Mar,

2022). The cash and cash equivalents are held with bank and financial institution counterparties with good credit ratings.

[B] Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Company’s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

* Total Borrowings includes reclassification of dues to related parties from other financial liabilities-current to Non-Current Borrowings during the year as these were restructed as long term loans repayable on maturity. Hence only interest accrued but not due is classified as current borrowings for year ended 31st Mar 2023. Previous year “Due to related parties” is reclassified to current borrowings from other financial liabilities-current.

The following table details the Company’s expected maturity for its non-derivative financial assets. The table has been drawn up based on the undiscounted contractual maturities of the financial assets including interest that will be earned on those assets. The inclusion of information on non-derivative financial assets is necessary in order to understand the Company’s liquidity risk management as the liquidity is managed on a net asset and liability basis.

Note:

The current liabilities include inter corporate deposits from related parties which are repayable on demand. Based on past experience, the Company does not expect immediate demand for repayment of such deposits

[C] Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

[D] Currency risk

The Company is not exposed to the foreign currencies transactions hence the disclosure is not applicable

[E] Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest-bearing investments because of fluctuations in the interest rates, in cases where the borrowings are measured at fair value through profit or loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest-bearing investments will fluctuate because of fluctuations in the interest rates. The Company’s investments are primarily in fixed rate interest bearing investments. Hence, the Company is not significantly exposed to interest rate risk. Also, there is no material interest risk relating to the Company’s financial liabilities.

The management assessed that cash and cash equivalents, other bank balances, trade receivables, loans and advances, other financial assets, short term borrowings, trade payables and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments

The fair value of the financial assets and liabilities is included 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. The following methods and assumptions were used to estimate the fair values:

Derivatives are fair valued using market observable rates.

Note 42 Contingent liabilities and pending proceedings		in Lakhs)
Particulars	|As at 31st Mar, 2023	As at 31st Mar, 2022
1. Other contingent liabilities
a) For the non-redemption of the advance licences, consequent interest and penalty in the event of the appeals of the company made by way of writ petitions being decided against the company / the application made with the Grievance redressal committee being turned down. Further the company has represented before the Ministry of Commerce for redressal of grievance through appropriate directions to Director General of Foreign Trade. The Grievance redressal committee appreciating the genuine hardships faced by the company directed us to approach DGFT for closure. We have been following with DGFT for resolution and do not foresee any additional liability on account of penalties and interest.	Amount unascertained in respect of interest and penalty	Amount unascertained in respect of interest and penalty
The Company has already fully provided for 100% of the customs duty benefit availed on the advance license.
b) For Asst. year 2007-08, Department has filed an appeal against the CIT(A)’s order directing the deletion of addition made representing waiver of principal portion of loans from banks and financial institutions and the consequential tax demand is ^ 92.98 lakhs. The said appeal is pending as at the reporting date.	92.98	92.98

Note:

The Company is a party to various legal proceedings in the normal course of business and does not expect the outcome of these proceedings to have any material adverse effect on its financial conditions, results of operations or cash flows. Further, claims by parties in respect of which the Management have been legally advised that the same are frivolous and not tenable, have not been considered as contingent liabilities as the possibility of an outflow of resources embodying economic benefit is highly remote.

There are numerous interpretative issues relating to the Supreme Court (SC) Judgement on PF dated 28th February, 2019. The company will update its provision, on receiving further clarity on the subject.

In respect of the items above, further cash outflows in respect of contingent liabilities are determinable only on receipt of judgements/decisions pending at various forums/authority. The company does not expect the outcome of matters stated above to have a material adverse effect on the company’s financial conditions, result of operations or cash flows.

Note 43 CSR Expenditure

The Company does not meet the turnover and net worth criteria specified under Section 135 of the Companies Act, 2013 to constitute a Corporate Social Responsibility Committee. Thus, provisions of Section 135 and disclosure requirements specified therein are not applicable to the company.

Note 46 Disclosures pursuant to Securities and Exchange Board of India (Listing Obligations and Disclosures Requirements) Regulations, 2015 and Section 186 of the Companies Act,2013

a) For details of investments made refer Note 5

b) For details of loans given to related parties refer Note 6

c) There are no guarantees issued by the Company in accordance with Section 186 of the Companies Act, 2013 read with rules issued thereunder.

Note 47 Going Concern

As on 31st March 2023, the Company’s current liabilities exceeds its current assets mainly due to the loans granted by the promoter group for sustaining the business operations. The Company has also suffered losses over the last few years. The promoter group has promised to extend continuous support to enable the longterm operations of the company. Hence the accounts are prepared on a Going concern basis.

Note 48 Segment Information

As permitted by paragraph 4 of Ind AS-108, ‘Operating Segment’, if a single financial report contains both consolidated financial statements and the separate financial statements of the parent, segment information need be presented only on the basis of the consolidated financial statements. Thus, disclosures required by Ind-AS 108 are given in consolidated financial statements.

Note 49 Other Statutory Information

i. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

ii. The Company does not have any transaction with Companies Struck off u/s. 248 of the Companies Act, 2013 or u/s. 560 of the Companies Act, 1956.

iii. The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

iv. The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

v. No Bank or financial institution or other lender has declared the Corporation as wilful defaulter.

vi. The Company has not advanced or loaned or invested funds to any persons or entities, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

vii. The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

viii. The company holds all the title deeds of immovable property in its name.

ix. There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

x. The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 (as amended).

xi. The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

Note 50 Events occurring after the Balance sheet date

No adjusting or significant non-adjusting events have occurred between the reporting date (31st March, 2023) and the report release date (30th May, 2023).

Note 51 Previous year figures have been regrouped/reclassified to confirm to current year classification.

See accompanying notes forming part of the financial statements

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Mar 31, 2015

1. Rights, Preferences and Restrictions

The Company has only one class of equity shares having a par value Rs.10 per share. Each share holder is eligible for one vote per share held. In the event of liquidation, the equity share holders are eligible to receive the remaining assets of the Company, in proportion to their shareholding.

2.

The company, following the principle of prudence, holds Rs.1,72,47,439 as provision for liability towards nonredemption of advance licence pursuant to orders from Directorate General of Foreign Trade. The company has challenged the said orders by way of writ petition in High Court of Madras. Also, the application for merit based redemption of the obligations under the Advance Licences is under the active consideration with the Grievance Redressal committee of the JDGFT.

3. Contingent Liabilities Not Provided for- Other Money for which the company is contingently liable

a. Statutory Claims against Company not acknowledged as debts towards Excise duty liability of Rs.3,91,89,657 (Rs.3,91,89,657) disputed in an appeal lying with CESTAT. The CESTAT had directed for a pre-deposit of Rs.1,00,00,000. The company has against the directions of the CESTAT filed a writ petition with the Madras High Court which had in-turn directed CESTAT to dispose the matter on merits. The company had filed a petition before the Madras High Court for the waiver of the pre-deposit of Rs.1,00,00,000. In deciding on the petition the High Court had ordered for a pre-deposit of Rs.50,00,000 and disposal of the case on merits. The company has made the pre-deposit and the matter is pending before the CESTAT for disposal.

b. For the non-redemption of the advance licences as referred to in Note 5.1, the consequent interest and penalty in the event of the appeals of the company by way of writ petitions being decided against the company or the application made with the Grievance Redressal Committee being turned down, is indeterminate.

c. The following is the appeals made by / against the company with respect to certain income-tax liabilities which are pending as at the reporting date. The consequential income-tax liabilities are indeterminate

i) For Assessment Year 2007-08, Department has filed an appeal against the CIT(A)'s order directing the deletion of addition made representing waiver of principal portion of loans from banks and financial institutions and the consequential tax demand is Rs.92,98,960.

Note 4: Small & Medium Enterprises

There are no overdue payments and there is no interest payable to the micro, small and medium enterprises as per the Micro, Small and Medium Enterprises Development Act, 2006.

Note 5: Undisputed Liabilities

The company has provided for the following statutory liability, which it has not disputed on the date of the balance sheet and which remain outstanding for over a period of 6 months.

Note 6: Deferred Taxation

The deferred tax asset arising out of the accumulated income tax losses and timing differences has not been recognised considering the prolonged uncertainty in the company earning taxable income in the foreseeable future. This is in line with the policy of prudence recommended in the appropriate accounting standard issued by the ICAI.

Note 7: Description of Plan

The company's defined benefit plans comprises of Gratuity, which are payable to eligible employees as per Gratuity Act and dues towards compensated absences that are payable to employees on their retirement. The said amounts are provided based on number of years worked and leave standing to the credit of employee at the end of the year respectively.

Note 8: Impairment of Fixed Assets

No impairment loss / gain has been considered for the fixed assets of the company as the Net Selling Value as assessed during the previous period has been considered to be significantly higher than the carrying amount in such assets and the company does not consider appropriate for a valuation as at the current Balance Sheet date. This is considered appropriate and on a conservative basis credit for Net Selling Value has not been recognized.

Note 9: Trade Receivables

Trade receivables includes an amount of Rs.5,50,62,076, which had been fully provided for during the prior years from S&S Power Corporation, Malaysia for supplies effected in the year 1995 (FY 1994-1995). S&S Power Corporation, Malaysia had been wound up and as a consequence the debt is irrecoverable. The company has made applications to the Reserve Bank of India through the authorized dealers for the write off of the amounts outstanding. The company is yet to obtain the necessary permission from Reserve Bank of India

The Trade Receivables includes amount receivables from Top Rank Corporation, Malaysia Rs.2,58,47,033 which had been fully provided for during the prior years for supplies effected in the past upto the year 1995. The amount represents outstanding amounts after a settlement made and payments received against the settlement. Provisions to the extent of amounts received are reversed. The company has made applications to the Reserve Bank of India through the authorized dealers for the write off the amounts outstanding. The company is yet to obtain the necessary permission from Reserve Bank of India

Note 10: Contravention of Law

The company has not fulfilled its export obligation in respect of two Advance Licenses availed in earlier years.

Note 11: Exceptional items of current year-nil (Previous year Rs.11,641,234) represents profit on sale of fixed assets.

Note 12: The previous year figures have been reclassified / regrouped wherever necessary to bring it in line with the current year financial presentation and grouping.

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Mar 31, 2014

Note 1: Rights, Preferences and Restrictions: The Company has only one class of equity shares having a par value Rs.10 per share. Each share holder is eligible for one vote per share held. In the event of liquidation, the equity share holders are eligible to receive the remaining assets of the Company, in proportion to their shareholding.

note 2:

The company, following the principle of prudence, holds Rs. 1,72,47,439 as provision for liability towads non- redemption of advance licence pursuant to orders from Directorate General of Foreign Trade. The company has challenged the said orders by way of writ petition in High Court of Madras. Also, the application for merit based redemption of the obligations under the Advance Licences is under the active consideration with the Grievance Redressal committee of the JDGFT.

Contingent Liabilities Not Provided for

a) Statutory Claims against Company not acknowledged as debts towards Excise duty liability of Rs.3,91,89,657 (Rs.3,91,89,657) disputed in an appeal lying with CESTAT. The CESTAT had directed for a pre- depopsit of Rs.1,00,00,000. The company has against the directions of the CESTAT filed a writ petition with the Madras High Court which had in-turn directed CESTAT to dispose the matter on merits. The company had filed a petition before the Madras High Court for the waiver of the pre- depoait of Rs.1,00,00,000. In deciding on the petition the high court had ordered for a pre-deposit of Rs.50,00,000 and disposal of the case on merits. The company has made the pre-deposit and the matter is pending before the CESTAT for disposal.

b) For the non-redemption of the advance licences as referred to in Note 5.1, the consequent interest and penalty in the event of the appeals of the company by way of writ petitions being decided against the company or the application made with the Grievance Redressal Committee being turned down, is indeterminate.

c) The following are the appeals made by / against the company with respect to certain income-tax liablities which are pending as at the reporting date. The consequential income-tax liabilities are indeterminate

d) For Assessment Year 2007-08, Department has filed an appeal agaist the CIT(A)''s order directing the deletion of addition made representing waiver of principal portion of loans from banks and financial institutions and the consequential tax demand is Rs.92,98,960.

Note 3:Small & Medium Enterprises

There are no overdue payments and there is no interest payable to the micro, small and medium enterprises as per the Micro, Small and Medium Enterprises Development Act, 2006.

Note 4:Deferred Taxation

The deferred tax asset arising out of the accumulated income tax losses and timing differences has not been recognised considering the prolonged uncertainty in the company earning taxable income in the foreseeable future. This is in line with the policy of prudence recommended in the appropriate accounting standard issued by the ICAI.

Note 5:Description of Plan

The company''s defined benefit plans comprises of Gratuity,which are payable to eligible employees as per Gratuity Act and dues towards compensated absences that are payable to employees on their retirement. The said amounts are provided based on number of years worked and leave standing to the credit of employee at the end of the year respectively.

No impairment loss / gain has been considered for the fixed assets of the company as the Net Selling Value as assessed during the previous period has been considered to be significantly higher than the carrying amount in such assets and the company does not consider appropriate for a valuation as at the current Balance Sheet date. This is considered appropriate and on a conservative basis credit for Net Selling Value has not been recognized.

Note 6: Trade Receivables

Trade receivables includes an amount of Rs.5,50,62,076, which had been fully provided for during the prior years from S&S Power Corporation, Malaysia for supplies effected in the year 1995 (FY 1994-1995). S&S Power Corporation, Malaysia had been wound up and as a consequence the debt is irrecoverable. The company has made applications to the Reserve Bank of India through the authorized dealers for the write off of the amounts outstanding. The company is yet to obtain the neccesary permission from Reserve Bank of India

The Trade Receivables includes amount receivables from Top Rank Corporation, Malaysia Rs.2,58,47,033 which had been fully provided for during the prior years for supplies effected in the past upto the year 1995. The amount represents outstanding amounts after a settlement made and payments received against the settlement. Provisions to the extent of amounts received are reversed. The company has made applications to the Reserve Bank of India through the authorized dealers for the write off the amounts outstanding. The company is yet to obtain the neccesary permission from Reserve Bank of India

Note 7: Contrevention of Law: The company has not fulfilled its export obligation in respect of two Advance Licenses availed in earlier years.

Note 8: The company has over the years made investments in certain companies (Refer Note 10) and has given advances to certain companies (Refer Note 15). The interest on these advances is also receivable by the company (Refer Note 16). The limits upto which the loans and investments are made are subject to Section 372A of the Companies Act, 1956 and also the resolution passed by the members of the company in September 2009. The said resolution gives the company the right to make loans and investments in certain companies within the limits stated against each companies, in the said resolution. The limits stated in the resolution is over and above the limits contemplated by Section 372A of the Companies Act, 1956. The aggregate amount of loans and advances, in the view of the company, as at 31st March 2014 is within the overall limits granted by the shareholders.

Note 9: Exceptional items of Rs.11,641,234 represents profit on sale of fixed assets.

Note 10: The previous year figures have been reclassified / regrouped wherever necessary to bring it in line with the current year financial presentation and grouping.

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Mar 31, 2013

Note 1: Contingent Liabilities Not Provided for

a) The company is contingently liable for Guarantees furnished to the Company''s Bankers for Rs.6,06,577 (Rs.6,06,577)

b) Statutory Claims against Company not acknowledged as debts towards Excise duty liability of Rs.3,91,89,657 (Rs.6,42,59,735) disputed in an appeal lying with CESTAT. The CESTAT had directed for a pre-depopsit of Rs. 1,00,00,000. The company has against the directions of the CESTAT filed a writ petition with the Madras High Court which had in-turn directed CESTAT to dispose the matter on merits. However the CESTAT in its subsequent hearing passed an order dt. 12,04.2013, to pay the pre-deposit of Rs. 1,00,00,000. The company is filed an application with Highcourt to pass writ petition against the CESTAT order.

c) For the non-redemption of the advance licences as referred to in Note 36 & 40, the consequent interest and penalty in the event of the appeals of the company by way of writ petitions being decided against the company or the application made with the Grievance Redressal Committee being turned down, is indeterminate.

d) The company had received a notice during the preceeding previous period from the ''Office of the Custodian'' Banking Division (Dept. of Economic Affairs), Ministry of Finance directing to pay the outstanding dues of Rs.1,34,086 pertaining to Fairgrowth Financial Services Limited along with interest. The company while disputing the amount payable has offered Rs.90,000 as full and final settlement, which is still under the claimant''s consideration,

e) The following are the appeals made by / against the company with respect to certain income-tax liablities which are pending as at the reporting date. The consequential income-tax liabilities are indeterminate

i) For Assessment Year 2007-08, the company has filed an appeal against the order of CIT(A) disallowing the representation that no value should be assinged to the building, since the intention of the buyer is to demolish the same.

ii) For Assessment Year 2007-08, Department has filed an appeal agaist the CIT(A)''s order directing the deletion of the addition made to the extent of Rs.40,34,98,207 representing loans from banks and institutions,

iii) For the Assessment Year 1996-97, the company had claimed depreciation aggregating to 1.1,84,52,500 on certain leased fixed assets. The Hon''ble High Court of Madras vide its judgment dated 8th December 2011 passed an adverse order which disallowed the depreciation claimed on the gournd that the identity of the assets could riot be proved. Against the order of the Hon''blle High Court of Madras, the company has filed a review application. The review application is pending for disposal.

Note 2:Small & Medium Enterprises

The Company had during the previous years sent letters to its vendors for identifying Micro, Small & Medium enterprises and based on the representations received back from the vendors has completed the identification of Micro, Small & Medium Enterprises. Based on such identification there are no overdue payments and there is no interest payable as per the Micro, Small and Medium Enterprises Development Act, 2006.

Note 3: Undisputed Liabilities

The company has provided for the following statutory liabilities, which it has not disputed on the date of the balance sheet and which remain outstanding for over a period of 6 months.

Note 4: Deferred Taxation

The deferred tax asset arising out of the accumulated income tax losses and timing differences has not been recognised considering the prolonged uncertainty in the company earning taxable income in the foreseeable future. This is in line with the policy of prudence recommended in the appropriate accounting standard issued by the ICAI.

Note 5: Disclosure under Accounting Standard 15 (Revised 2005) ''Employee Benefits''

The company has recognized as expenses for retirement benefits as follows for the year ended 31st March 2013

Note 6: Impairment of Fixed Assets

No impairment loss / gain has been considered for the fixed assets of the company as the Net Selling Value as assessed during the previous period has been considered to be significantly higher than the carrying amount in such assets and the company does not consider appropriate for a valuation as at the current Balance Sheet date. This is considered appropriate and on a conservative basis credit for Net Selling Value has not been recognized.

Note 7 : Trade Receivables

Trade receivables includes an amount of Rs.5,50,62,076, which had been fully provided for during the prior years from S&S Power Corporation, Malaysia for supplies effected in the year 1995 (FY 1994-1995). S&S Power Corporation, Malaysia had been wound up and as a consequence the debt is irrecoverable. The company has made applications to the Reserve Bank of India through the authorized dealers for the write off the amounts outstanding. The company is yet to obtain the neccesary permission from Reserve Bank of India

The Trade Receivables includes amount receivables from Top Rank Corporation, Malaysia Rs.2,58,47,033 which had been fully provided for during the prior years for supplies effected in the past upto the year 1995. The amount represents outstanding amounts after a settlement made and payments received against the settlement. Provisions to the extent of amounts received are reversed.The company has made applications to the Reserve Bank of India through the authorized dealers for the write off the amounts outstanding.The company is yet to obtain the neccesary permission from Reserve Bank of India

Note 8 : Related Party Disclosures - See Annexure

Note 9: Short and long term Loans and Advances:

Advances recoverable in cash or in kind or for value to be received include:

Loans and advances to subsidiaries include loans to Acrastyle Power (India) Limited aggregating as principal outstanding of Rs.4,09,74,275 (PY Rs.4,09,74,275) and interest outstanding of Rs.2,13,41,453 (Rs. 1,95,93,124).

Note 10 : Other Liabilities

The company, following the principle of prudence, holds Rs. 1,72,47,439 (Rs. 1,72,47,439) as provision for liability towards non-redemption of advance license, pursuant to orders from the JDGFT, The company has challenged the said orders by way of writ petition in the Madras High Court. Also, the application for merit based redemption of the obligations under the Advance Licences is under the active consideration with the Grievance Redressal Committee of the JDGFT.

Note 11: Trade payables and Other Current liabilities, deposits, Long term loans and advances and Short term loans and advances except Loans and Advances to related parties are subject to confirmations.

Note 12: The company as a matter of prudence provided for f.2,36,46,648 (PY Rs.2,36,10,898) for the diminution in the value of the investments and doubtfulness on the recovery of the loans and interest receivable from its subsidiary Acrastyle Power (India) Limited during the year.

Note 13: Contreventlon of Law: The company has not fulfilled its export obligation in respect of two Advance Licenses availed in earlier years,

Note 14: During the year the company had entered into aggreement u/s 18(1) r.w. Section 12(3) of Industrial Dispute Act, 1947 for settlement of dues on 05.11.2012 with certain section of workmen and the dispute has been resolved out of court. Consequently, an amount of Rs.489.81 Lakhs has been incurred over and above the liability created in the books. This is accounted under Extraordinary Items

Note 15: The company has over the years made investments in certain companies (Refer Note 10) and has given advances to certain companies (Refer Note 15). The interest on these advances is also receivable by the company (Refer Note 16). The limits upto which the loans and investments are made are subject to Section 372A of the Companies Act, 1956 and also the resolution passed by the members of the company in September 2009, The said resolution gives the company the right to make loans and investments in certain companies within the limits stated against each companies, in the said resolution. The limits stated in the resolution is over and above the limits contemplated by Section 372A of the Companies Act, 1956. The aggregate amount of loans and advances, in the view of the company, as at 31 st March 2013 is within the overall limits granted by the shareholders and is not within the limits specified against each companies,

Note 16: Exceptional items includes reversal of provisions no longer required aggregating to Rs. 3,22,37,217 and profit on sale of fixed assets and enhanced compensation on sale of fixed assets in the past aggregating to Rs. 1,57,34,947.

Note 17: The previous year figures have been reclassified / regrouped wherever necessary to bring it in line with the current year financial presentation and grouping.

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Mar 31, 2012

Note 1: Contingent Liabilities Not Provided for

a) The company is contingently liable for Guarantees furnished to the Company's Bankers for Rs,6,06,577 (Rs.6,06,577)

b) Statutory Claims against Company not acknowledged as debts towards Excise duty liability of Rs.6,42,59,735 disputed and appeal lying with the Commissioner Appeals and CESTAT.

c) The company had during prior years entered into a settlement with the workmen under the provisions of Section 12(3) of the Industrial Disputes Act, 1947. Liability during the previous years had been provided to the extent of the obligation under the settlement. However, a section of the workmen have challenged the said settlement through a writ petition in the High Court of judicature, Madras, which was dismissed. Against the said dismissal of the writ petition, these workmen had preferred a writ appeal, which had also been disposed with a direction to the State Government to refer the dispute to Industrial Tribunal. Pursuant to an application made by a section of the workers the State Government has referred the dispute for adjudication. The liability, if any, that may arise out of the adjudication is not provided and is not quantifiable. Further, a writ petition was made by the company to the Honourable High Court of Madras for the removal of the balance unutilized plant & machinery at the Porur works, An order for an ad-hoc deposit of Rs. 2,00,00,000 over and above the settlement amount worked out in accordance with Section 12(3) of Industrial Disputes Act, 1947 and not taken by a section of the workmen, and proceeds out of the sale of unutilized plant & machinery, as a precondition for removal has been received. Against the said order the company has preferred a special leave petition in the Honorable Supreme Court.

d) For the non-redemption of the advance licences as referred to in Note 36 & 40, the consequent interest and penalty in the event of the appeals of the company by way of writ petitions being decided against the company or the application made with the Grievance Redressed Committee being turned down, is indeterminate.

e) The following are the appeals made by/against the company with respect to certain income-tax Assessments which are pending as at the reporting date. The consequential income-tax liabilities are indeterminate

i) For Assessment Year 2007-08, The CIT(A) held that the Captial Gains has arisen from sale of business assets and therefore eligible for set-off

against business loss for the prior assessment years. According to the department, as per section 72 brought forward business loss can be set off only against income assessable under the heads profits and gains from business or profession and not under any other income,

ii) For Assessment Year 2008-09, The CIT(A) held that the Captial Gains has arisen from sale of business assets and therefore eligible for set-off against business loss for the prior assessment years, According to the department, as per section 72 brought forward business loss can be set off only against income assessable under the heads profits and gains from business or profession and not under any other income.

iii) For Assessment Year 2007-08, Department has filed an appeal agaist the CIT(A)'s order directing the deletion of the addition made to the extent of Rs, 40,34,98,207 representing waiver of principal portion of loans from banks and financial institutions,

(iv) For the Assessment Year 1996-97, the company had claimed depreciation aggregating to Rs. 1,84,52,500 on certain leased assets, The Hon'ble High Court of Madras vide its judgment dated 8th December 2011 passed an order which disallowed the depreciation claimed on the gournd that the identity of the assets could not be proved. Against the order of the Hon'blle High Court of Madras, the company has filed a review application claiming allowance of the amount as a business loss. The review application is pending for disposal. In view of the above the Company is of the . opinion that no provision is required to be made.

Note 2: Small & Medium Enterprises

The Company had during the preceding previous period sent letters to its vendors for identifying Micro,

Small & Medium enterprises and based on the representations received back from the vendors has completed the identification of Micro, Small & Medium Enterprises. Based on such identification there are no overdue payments and there is no interest payable as per the Micro, Small and Medium Enterprises Development Act, 2006.

Note 3: Undisputed Liabilities

The company has provided for the following statutory liabilities, which it has not disputed on the date of the balance sheet and which remain outstanding for over a period of 6 months,

Note 4: Deferred Taxation

The deferred tax asset arising out of the accumulated income tax losses and timing differences has not been recognised considering the prolonged uncertainty in the company earning taxable income in the foreseeable future, This is in line with the policy of prudence recommended in the appropriate accounting standard issued by the ICAI.

Note 5: Disclosure under Accounting Standard 15 (Revised 2005) ‘Employee Benefits'

The company has recognized as expenses for retirement benefits as follows for the year ended 31st March 2012: -

Note 6: Impairment of Fixed Assetr

No impairment loss / gain has been considered for the fixed assets of the company as the Net Selling Value as assessed during the previous period has been considered to be significantly higher than the carrying amount in such assets and the company does not consider appropriate for a valuation as at the current Balance Sheet date. This is considered appropriate and on a conservative basis credit for Net Selling Value has not been recognized,

Note 7 : Trade Receivables

Trade receivables includes an amount of Rs.5,50,62,076, which had been fully provided for during the prior years is receivable from S&S Power Corporation, Malaysia for supplies effected in the past, S&S Power Corporation, Malaysia had been wound up and as a consequence the debt is irrecoverable.

The company has made applications to the Reserve Bank of India through the authorized dealers for the write off the amounts outstanding, The Trade Receivables includes amount receivables from Top Rank Corporation, Malasia Rs,2,76,54,225 (fully provided in the books) and the Trade Payable includes Rs.l ,00,14,854 payble to Top Rank Corporation, Malaysia. The company had negotiated with Top Rank Corporation for full and final settlment and it was settled subsequent to the bolance sheet date. Further, Restatement of outstanding balances with Top rank Corporation, Malaysia and S&S Power Corporation, Malaysia has been fully provided for in the previous periods and hence are not restated for any forex gains / losses. The amounts realized are recognized as and when receipts against the settlements are received and payments made,

Note 8 : Related Party Disclosures - Refer Page No. 33.

Note 9: Short and long term Loans and Advances:

Advances recoverable in cash or in kind or for value to be received include:

A sum of Rs.2,52,68,046 (Rs. 2,58,88,476) from RPIL Signaling Systems Limited, an erstwhile subsidiary company. Net recovery of Rs,3,37,773 has been done during the year. The outstanding aggregating to Rs.2,52,68,046 had been provided in the earlier years.

i. Loans and advances to subsidiaries include loans to Acrastyle Power (India) Limited aggregating as principal outstanding of Rs.4,09,74,274 (PY Rs.4,09,74,274) and interest outstanding of Rs.l,95,93,124 (Rs. 1,67,05,544).

ii. An amount of Rs.5,41,665 being the salary paid to the erstwhile Managing Director of the company during the previous years over and above the limits prescribed under Schedule XIII of The Companies Act, 1956 and not approved by the central government has been grouped under Long-term Loans & Advances in the Balance Sheet, Representation with the Department of Company Affairs has been made for the approval, approval for which is expected for the balance amount, as No Objections Certificate as stipulated by the DCA is no longer applicable, the company having settled all the secured creditors.

Note 10 : Other Liabilities

The company, following the principle of prudence, holds Rs.l,72,47,439 (Rs. 1,72,47,439) as provision for liability towards non-redemption of advance license, pursuant to orders from the JDGFT. The company has challenged the said orders by way of writ petition In the Madras High Court, Also, the application for merit based redemption of the obligations under the Advance Licences is under the active consideration with the Grievance Redresses Committee of the JDGFT.

Note 11: Certain Trade payables and other liabilities, deposits, loans and advances are subject to confirmations, wherever not available.

Note 12: The company as a matter of prudence provided for Rs.2,36,10,898 (PY Rs.2,29,33,402) for the diminution in the value of the investments and doubtfulness on the recovery of the loans and interest receivable from its subsidiary Acrastyle Power (India) Limited during the year. .

Note 13: Contraventions of Law: The company has not fulfilled its export obligation in respect of two Advance Licenses availed in earlier years.

Note 14: The financial statements of the year ended 31st March 2011 had been prepared as per the then applicable, pre-revised schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under Companies Act, 1956, the financial statements for the year ended 31st March 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for the previous year figures does not impact recognition as and measurement principles followed for preparation of financial statements,

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Mar 31, 2010

1. During the year, the company had transferred the business of manufacture of disconnectors through a Business Transfer Agreement to its subsidiary w.e.f 01.11.2009. Consequently, all the assets and liabilities including the moveable assets pertaining to the disconnector undertaking were transferred to S&S Power Switchgear Equipment Limited, the subsidiary, for consideration.

Subsequent to the transfer the company along with its subsidiary company entered into a joint venture agreement with a leading international manufacturer of disconnectors, who have also invested in the subsidiary through equity subscription. Consequent to the equity participation by the said international manufacturer, the equity holding of the company in the subsidiary stands at 51%.

2. Unsecured Loans

The company had taken unsecured inter-corporate loans from bodies corporate to meet the temporary shortfalls in working capital requirements. The company has repaid all these unsecured loans along with interest thereon as on the Balance Sheet date.

3. Investments

Pursuant to an amalgamation of i-Power Engineering Private Limited with Acrastyle Power (India) Limited (APIL), the company holding 450 equity shares in i-Power, was allotted 9900 equity shares in APIL at face value. Consequent to this the company holds 39,74,950 equity shares in APIL and the extent of holding is 67%.

The company has been allotted 4,60,000 equity shares in S&S Power Switchgear Equipment Limited (S&S PSE) at a premium, towards discharge of part consideration for the transfer of the Disconnector business undertaking through a Business Transfer Agreement with S&S PSE (Also, refer note 2). The company already held 50,000 equity shares in S&S PSE prior to the transfer of the business undertaking, taking the total investment in S&S PSE to 5,10,000 equity shares at a cost of Rs.38,611 thousands and extent of holding being 51%.

4. Fixed Assets

The company has during the year capitalized Rs.1,081 thousands as Intangible Assets, being the charges paid to various certifying institutions for validation of its products. All such assets acquired over the year are amortised over a period of five years. The internally generated costs of such assets have been debited to the Profit & Loss Account.

The fixed assets including the plant and machinery of the ‘Disconnector Business Undertaking has been transferred to S&S PSE, the companys subsidiary (Refer Note 2), consequent to which the transferred fixed assets with written down value of Rs.21,984 thousands have been shown as a deletion from the fixed assets.

No impairment loss has been considered for the residual assets of the erstwhile Porur Breaker Unit as the Net Selling Value is assessed to be more than the carrying amount in such assets.

5. Current Assets, Loans & Advances A. Current Assets

Sundry debtors include the following:

i. Consequent to a out of court settlement with a customer in Malaysia, a sum of Rs.247 thousands has been recovered out of a total outstanding of Rs.30,938 thousands which had been fully provided for in the previous years, and the balance outstanding is Rs.30,691 thousands as on the Balance Sheet date. To the extent of the amount recovered under the settlement the provision held on such debt has been reversed. The amount foregone under the settlement would be written off upon receipt of the final installment as stipulated in the settlement and also obtaining prior approval of the Reserve Bank of India. The company is in the process of making an application for approval for write off to RBI.

ii. An amount of Rs.55,062 thousands which had been fully provided for during the prior years, receivable from S&S Power Corporation, Malaysia for supplies effected in the past. S&S Power Corporation, Malaysia had been wound up and as a consequence the debt is irrecoverable. The company is in the process of making an application for approval for write off to RBI.

iii. A sum of Rs.5,791 thousands as lease rental receivable from S&S Power Switchgear Equipment Limited, a subsidiary, for the leased factory premises at Puducherry.

B. Loans & Advances:

Advances recoverable in cash or in kind or for value to be received include:

i. A sum of Rs.25,743 thousands (29,985 thousands) from RPIL Signalling Systems Limited, an erstwhile subsidiary company. Net recovery of Rs.4,298 thousands (Rs.Nil) has been made during the year. The provision held in excess of the outstanding of Rs.3,008 thousands has been reversed and credited to the Profit & Loss Account under Other Income. The entire outstanding of Rs.25,743 thousands had been provided in the earlier years.

ii. A sum of Rs.5,000 thousands has been paid against the demand made by the Income Tax department in connection with the assessment of a previous year. An appeal preferred against the demand had been partly allowed by the appellate authority. Pending revision in assessment order, giving effect to the appellate order, the sum has been classified as advance.

Loans and advances to subsidiaries is to Acrastyle Power (India) Limited and as at Balance Sheet date Rs.40,974 thousands is outstanding as principal amount and Rs.14,809 thousands is on account of interest receivable. A sum of Rs.4,887 thousands has been recognised as interest on such loans for the year.

An amount of Rs.542 thousands being the salary paid to the erstwhile Managing Director of the company during the previous years over and above the limits prescribed under Schedule XIII of The Companies Act, 1956 and not approved by the Central Government has been grouped under Loans & Advances in the Balance Sheet. Representation with the Department of Company Affairs has been made for the APPROVAL, for which is expected for the balance amount, as No Objections Certificate as stipulated by the DCA is no longer applicable, the company having settled all the secured creditors.

The Company has sent letters seeking confirmation of balances to Debtors, Creditors and loans and advances.

6. Current Liabilities & Provisions

i. Sundry creditors include Rs.10,216 thousands amount payable to a creditor in Malaysia. There has been an out of court settlement and Rs.194 thousands has been paid. The amount foregone under the settlement by the creditor would be written back after the final installment is paid.

Other Liabilities:

ii. The company, following the principle of prudence, holds Rs.17,247 thousands (Rs.17,247 thousands) as provision for liability towards non-redemption of advance license, pursuant to orders from the JDGFT. The company has challenged the said orders by way of writ petition in the Madras High Court.

The appointment of the Managing Director was for a period of 3 years commencing 01.10.2008. The application for the approval of the appointment was made with the Ministry of Corporate Affairs, which had approved remuneration w.e.f 01.10.2008 till the subsequent General meeting of the company. The remuneration for the remaining period was to be considered for approval by DCA after submission of the members resolution approving the appointment. The company after obtaining the approval of the members had submitted the members resolution for approval of remuneration for the remaining period. Pending approval from the DCA, the payment of remuneration has been charged to Profit & Loss Account.

7. Disclosure under Accounting Standard 15 (Revised 2005) ‘Employee Benefits

The company has recognized as expenses for retirement benefits as follows for the year ended 31st March 2010:

8. Additional information pursuant to the provisions of paragraphs 3 & 4 of Part II of Schedule VI to the Companies Act, 1956.

9. Contingent Liabilities Not Provided for:

a) The company is contingently liable for Guarantees furnished to the Companys Bankers for Rs.607 thousands (Rs.607 thousands)

b) Statutory Claims against Company not acknowledged as debts towards Excise duty liability of Rs.64,260 thousands disputed and appeal lying with the Commissioner, Appeals and CESTAT.

c) The company had during prior years entered into a settlement with the workmen under the provisions of Section 12(3) of the Industrial Disputes Act, 1947. Liability during the previous years had been provided to the extent of the obligation under the settlement.

However, a section of the workmen have challenged the said settlement through a writ petition in the High Court of judicature, Madras, which was dismissed. Against the said dismissal of the writ petition, these workmen had preferred a writ appeal, which had also been disposed with a direction to the State Government to refer the dispute to Industrial Tribunal. Pursuant to an application made by a section of the workers the State Government has referred the dispute for adjudication. The liability, if any that may arise out of the adjudication is not provided and is not quantifiable.

Further, a writ petition was made by the company to the Honourable High Court of Madras for the removal of the balance unutilized plant & machinery at the Porur works. An order for an ad-hoc deposit of Rs. 20,000 thousands over and above the settlement amount worked out in accordance with Section 12(3) of Industrial Disputes Act, 1947 and not taken by a section of the workmen, and proceeds out of the sale of unutilized plant & machinery, as a precondition for removal has been received.

Against the said order the company has preferred a special leave petition in the Honourable Supreme Court.

d) For the non-redemption of the advance licences as referred to in Note 7 (ii), the consequent interest and penalty in the event of the appeals of the company by way of writ petitions being decided against the company or the application made with the Grievance Redressal Committee being turned down, is indeterminate.

e) The company is contingently liable for Rs.2,292 thousands against ex-parte orders passed by the adjudicating authority of the Department of Trade & Taxes, New Delhi. The company has preferred an appeal against the said ex-parte orders.

f) The company had received a notice during the previous period from the "Office of the Custodian Banking Division (Dept. of Economic Affairs), Ministry of Finance directing to pay the outstanding dues of Rs.134 thousands pertaining to

Financial Services Limited along with interest. The company while disputing the amount payable has offered Rs.90 thousands as full and final settlement, which is under the claimants consideration.

10. Deferred Taxation

The deferred tax asset arising out of the accumulated income tax losses and timing differences has not been recognised considering the prolonged uncertainty in the company earning taxable income in the foreseeable future. This is in line with the policy of prudence recommended in the appropriate accounting standard issued by the ICAI.

11. Contravention of Law:

i. The company has not fulfilled its export obligation in respect of two Advance Licenses availed in earlier years.

12. The Company had during the period sent letters to its vendors for identifying Micro, Small & Medium enterprises and based on the representations received back from the vendors has completed the identification of Micro, Small & Medium Enterprises.

Based on such identification there are no overdue payments and there is no interest payable as per the Micro, Small and Medium Enterprises Development Act, 2006.

13. Company being engaged in manufacture of Disconnectors and in view of the Board there are no business segments within the meaning of Accounting Standard 17 issued by the Institute of Chartered Accountants of India.

14. Figures for the previous year are for 18 months and also include the related costs of the disconnector undertaking for the period and are hence not comparable. Also the figures for the previous year have been regrouped / reclassified wherever necessary.