Notes to Accounts of Shilchar Technologies Ltd.

Mar 31, 2025

0. Provisions and Contingencies:

1. Provisions

Provisions for legal claims, product warranties and make
good obligations are recognised when the Company has a
present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources will be
required to settle the obligation and the amount can be
reliably estimated. Provisions are not recognised for future
operating losses.

Where there are a number of similar obligations, the
likelihood that an outflow will be required in settlement is
determined by considering the class of obligations as a
whole. A provision is recognised even if the likelihood of an
outflow with respect to any one item included in the same
class of obligations may be small.

Long-term provisions are determined by discounting the
expected future cash flows at a pre-tax rate that reflects
current market assessments of the time value of money.
Short term provisions are carried at their redemption value
and are not offset against receivables from reimbursements.

Provisions are measured at the present value of
management''s best estimate of the expenditure required
to settle the present obligation at the end of the reporting
period. The discount rate used to determine the present value
is a pre-tax rate that reflects current market assessments of
the time value of money and the risks specific to the liability.
The increase in the provision due to the passage of time is
recognised as interest expense.

ii. Contingent Liabilities

Contingent liabilities are disclosed when there is a possible
obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non-occurrence
of one or more uncertain future events not wholly within the
control of the Company or a present obligation that arises
from past events where it is either not probable that an
outflow of resources will be required to settle or a reliable
estimate of the amount cannot be made.

iii. Contingent Assets

Contingent Assets are not recognised but are disclosed in
the notes to the financial statements.

P. Earnings per Share:

i. Basic earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the Company,
excluding any costs of servicing equity other than
ordinary shares.

- by the weighted average number of equity shares
outstanding during the financial year, adjusted for
bonus elements in equity shares issued during the year.

ii. Diluted earnings per share

Diluted earnings per share adjusts the figures used in

the determination of basic earnings per share to take into

account:

- the after income tax effect of interest and other
financing costs associated with dilutive potential equity
shares, and

- the weighted average number of additional ordinary
shares that would have been outstanding assuming the
conversion of all dilutive potential equity shares.

Q. Segment Reporting:

Operating segments are reported in a manner consistent

with the internal reporting to the Chief Operating Decision

Maker "CODM" of the Company. The CODM is responsible
for allocating resources and assessing performance of the
operating segment. The Company has monthly review
and forecasting procedure in place and CODM reviews the
operations of the Company as a whole.

R. Exceptional Items:

Certain occasions, the size, type or incidence of an item
of income or expense, pertaining to the ordinary activities
of the Company is such that its disclosure improves the
understanding of the performance of the Company, such
income or expense is classified as an exceptional item and
accordingly, disclosed in the notes accompanying to the
financial statements.

2.2 RECENT PRONOUNCEMENTS

Ministry of Corporate Affairs ("MCA") notifies new standards
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time
to time. For the year ended March 31, 2025, MCA has
notified Ind AS - 117 Insurance Contracts and amendments
to Ind AS 116 - Leases, relating to sale and leaseback
transactions, applicable to the Company w.e.f. April 1, 2024.
The Company has reviewed the new pronouncements and
based on its evaluation has determined that it does not have
any significant impact in its financial statements.

32. DISCLOSURE AS REQUIRED UNDER IND AS 19 - EMPLOYEE BENEFITS

[A] Defined contribution plans:

The Company makes contributions 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 '' 43.50 Lakhs (P.Y: '' 29.43 Lakhs) for provident fund contributions in the Statement of Profit
and Loss.

[B] Defined benefit plan:

The Company makes annual contributions to Shilchar Technologies Limited Employees'' Gratuity Fund managed by LIC, a
funded defined benefit plan for qualifying employees. 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.

46. OTHER STATUTORY INFORMATION

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

b) The Company do not have any transactions with struck
off companies.

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

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

e) The Company have not advanced or loaned or invested
funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding
that the Intermediary shall:

(i) 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

(ii) provide any guarantee, security or the like to or on
behalf of the Ultimate Beneficiaries

f) 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:

(i) 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

(ii) provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries,

g) The Company have not 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.

h) There are no Scheme of Arrangements that has been
approved by the Competent Authority in terms of
sections 230 to 237 of the Companies Act, 2013.

Level 1:

Level 1 hierarchy includes financial instruments measured
using quoted prices. This includes mutual funds that have
quoted price. The mutual funds are valued using the closing
NAV.

Level 2:

The fair value of financial instruments that are not traded in
an active market is determined using valuation techniques
which maximize 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.

Level 3:

If one or more of the significant inputs is not based on
observable market data, the instrument is included in level 3.

There are no transfers between levels 1 and 2 during the
year.

The Company''s policy is to recognise transfers into and
transfers out of fair value hierarchy levels at the end of the
reporting period.

(ii) Valuation technique used to determine fair
value

Specific valuation techniques used to value financial
instruments include:

- the use of quoted market prices or dealer quotes for
similar instruments

- the fair value of the remaining financial instruments is
determined using discounted analysis (if any).

48. FINANCIAL RISK MANAGEMENT

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.

(A) Credit risk

Credit risk is the risk of incurring a loss that may arise from
a borrower or debtor failing to make required payments.
Credit risk arises mainly from outstanding receivables from
free market dealers, cash and cash equivalents, employee
advances and security deposits. The Company manages
and analyses the credit risk for each of its new clients
before standard payment and delivery terms and conditions
are offered.

(i) Credit risk management

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.

For trade receivables, the Company applies the simplified
approach permitted by Ind AS 109 Financial Instrument,
which requires expected lifetime losses to be recognized
from initial recognition of the receivables. When determining
whether the credit risk of a financial asset has increased
significantly since initial recognition and when estimating
expected credit Losses (ECL), the Company considers
reasonable and relevant information that is available without
undue cost or effort. This includes both quantitative and
qualitative information and analysis, based on the Company''s
historical experience and informed credit assessment and
including forward looking information.

(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.

(i) Maturities of financial liabilities

The tables herewith analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual
maturities for:

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their
carrying balances as the impact of discounting is not significant.

(C) Market risk

(i) Foreign currency 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.

The risk is measured through a forecast of foreign currency for the Company''s operations.

49. CAPITAL MANAGEMENT
Risk management

For the purpose of the Company''s capital management, equity includes equity share capital and all other equity reserves
attributable to the equity holders of the Company. The Company manages its capital to optimise returns to the shareholders
and makes adjustments to it in light of changes in economic conditions or its business requirements. The Company''s
objectives are to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business
and provide adequate return to shareholders through continuing growth and maximise the shareholders value. The Company
funds its operation through internal accruals. The management and Board of Directors monitor the return on capital as well
as the level of dividends to shareholders.

50. EVENT AFTER REPORTING PERIOD

The Board of Director recommended final dividend of '' 12.50 per equity share for the financial year ended on 31^st March,
2025. The payment is subject to approval of share holder in ensuing Annual General Meeting of the Company. (Previous year
'' 12.50 per equity share).

51. These Financial Statements were authorised for issue in accordance with the resolution of the Board of Directors in its
meeting held on 21^st April, 2025.

The accompanying notes are an integral part of the financial statements.

As per our report of even date

For C N K & Associates LLP For and on behalf of Board of Directors of

CHARTERED ACCOUNTANTS Shilchar Technologies Limited

Firm Registration No. 101961W/W-100036

Rachit Sheth Alay Shah Aashay Shah

Partner Managing Director Director

Membership No. 158289 DIN: 00263538 DIN: 06886870

Vishnupriya Civichan Prajesh Purohit

Company Secretary Chief Financial officer

Place: Gavasad, Vadodara Place: Gavasad, Vadodara

Date: 21^st April, 2025 Date: 21^st April, 2025

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Mar 31, 2024

0. Provisions and Contingencies:

1. Provisions

Provisions for legal claims, product warranties and make good obligations are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Long-term provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money. Short term provisions are carried at their redemption value and are not offset against receivables from reimbursements.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

ii. Contingent Liabilities

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

iii. Contingent Assets

Contingent Assets are not recognised but are disclosed in the notes to the financial statements.

P. Earnings per Share: i. Basic Earnings per Share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the Company, excluding any costs of servicing equity other than ordinary shares.

- by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year.

ii. Diluted Earnings per Share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

- the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

- the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

Q. Segment Reporting:

Operating segments are reported in a manner consistent with the internal reporting to the Chief Operating Decision Maker "CODM" of the Company. The CODM is responsible for allocating resources and assessing performance of the operating segment. The Company has monthly review

and forecasting procedure in place and CODM reviews the operations of the Company as a whole.

R. Exceptional Items:

Certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities of the Company is such that its disclosure improves the understanding of the performance of the Company, such income or expense is classified as an exceptional item and accordingly, disclosed in the notes accompanying to the financial statements.

2.2 RECENT PRONOUNCEMENTS

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31^st March, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

32. DISCLOSURE AS REQUIRED UNDER IND AS 19 - EMPLOYEE BENEFITS

[A] Defined contribution plans:

The Company makes contributions 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 '' 29.43 Lakhs (P.Y: '' 26.92 Lakhs) for provident fund contributions in the Statement of Profit and Loss.

[B] Defined benefit plan:

The Company makes annual contributions to Shilchar Technologies Limited Employees'' Gratuity Fund managed by LIC, a funded defined benefit plan for qualifying employees. 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.

45. BORROWINGS SECURED AGAINST CURRENT ASSETS

The Company has borrowings from banks secured against

Current Assets and quarterly returns filed with the banks are in

agreement with the books.

46. OTHER STATUTORY INFORMATION

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

b) The Company do not have any transactions with struck off companies.

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

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

e) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) 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

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

f) 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:

(i) 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

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

g) The Company have not 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,

(All amounts are in '' Lakhs unless otherwise stated)

search or survey or any other relevant provisions of the Income Tax Act, 1961.

h) There are no Scheme of Arrangements that has been approved by the Competent Authority in terms of Sections 230 to 237 of the Companies Act, 2013.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes mutual funds that have quoted price. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize 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.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

There are no transfers between levels 1 and 2 during the year.

The Company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels at the end of the reporting period.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments;

- the fair value of the remaining financial instruments is determined using discounted analysis (if any).

48. FINANCIAL RISK MANAGEMENT

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.

(A) Credit risk

Credit risk is the risk of incurring a loss that may arise from a borrower or debtor failing to make required payments. Credit risk arises mainly from outstanding receivables from free market dealers, cash and cash equivalents, employee advances and security deposits. The Company manages and analyses the credit risk for each of its new clients before standard payment and delivery terms and conditions are offered.

(i) Credit risk management

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.

For trade receivables, the Company applies the simplified approach permitted by Ind AS 109 Financial Instrument, which requires expected lifetime losses to be recognized from initial recognition of the receivables. When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating expected credit Losses (ECL), the Company considers reasonable and relevant information that is available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company''s historical experience and informed credit assessment and including forward looking information.

(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.

(i) Maturities of financial liabilities

The tables herewith analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for:

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) Market risk

(i) Foreign currency 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.

The risk is measured through a forecast of foreign currency for the Company''s operations.

49. CAPITAL MANAGEMENT

Risk management

For the purpose of the Company''s capital management, equity includes equity share capital and all other equity reserves attributable to the equity holders of the Company. The Company manages its capital to optimise returns to the shareholders and makes adjustments to it in light of changes in economic conditions or its business requirements. The Company''s objectives are to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth and maximise the shareholders value. The Company funds its operation through internal accruals. The management and Board of Directors monitor the return on capital as well as the level of dividends to shareholders.

50. EVENT AFTER REPORTING PERIOD

The Board of Director recommended final dividend of '' 12.50 per equity share for the financial year ended on 31^st March, 2024. The payment is subject to approval of share holder in ensuing Annual General Meeting of the Company. (Previous year '' 10 per equity share).

51 . These Financial Statements were authorised for issue in accordance with the resolution of the Board of Directors in its meeting held on 30^th April, 2024.

The accompanying notes are an integral part of the financial statements.

As per our Report of even date For and on behalf of Board of Directors of

Shilchar Technologies Limited

For CNK & Associates LLP Alay Shah Aashay Shah

Chartered Accountants Managing Director Director

Firm Registration No.: 101961W/W-100036 DIN: 00263538 DIN: 06886870

Rachit Sheth Mauli Mehta Prajesh Purohit

Partner Company Secretary Chief Financial Officer

Membership No.: 158289

Place: Bill, Vadodara Place: Bill, Vadodara

Date: 30^th April, 2024 Date: 30^th April, 2024

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Mar 31, 2018

1. COMPANY OVERVIEW AND SIGNIFICANT ACCOUNTING POLICIES:

1.1 Description of Business

SHILCHAR TECHNOLOGIES LIMITED (“the Company”), incorporated in the year 1986 is Public Limited Company and engaged in the business of manufacturing of “Distribution & Power Transformers” as well “Electronics & Telecommunication Transformers.”

The Company made its public issue in the year 1995 and is listed on Mumbai Stock Exchange.

1.2 Basis of Preparation of Financial Statements

i. Compliance with Ind AS

The financial statements comply in all material aspects with Indian Accounting Standards (“Ind AS”) notified under section 133 of the Companies Act, 2013 (“the Act”), Companies (Indian Accounting Standards) Rules, 2015 as amended by Companies (Indian Accounting Standards) (Amendment) Rules, 2016 and other relevant provisions of the Act as applicable.

The financial statements up to year ended March 31, 2017 were prepared in accordance with the Accounting Standards notified under section 133 of the Act read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (“Indian GAAP”) and other relevant provisions of the Act as applicable.

These financial statements are the Company’s first Ind AS financial statements and are covered by Ind AS 101- First time Adoption of Indian Accounting Standards. The transition to Ind AS has been carried out from the accounting principles generally accepted in India (“Indian GAAP”) which is considered as the ‘Previous GAAP’ for purposes of Ind AS 101. An explanation of how the transition to Ind AS has affected the Company’s financial position, financial performance and cash flows is provided in Note 47 of the financial statement.

ii. Historical cost convention

The financial statements have been prepared on a historical cost basis, except the following:

- Certain financial assets and liabilities that are measured at fair value;

- Defined benefit plans - plan assets measured at fair value.

iii. Functional and presentation currency

These financial statements are presented in Indian Rupees, which is the Company’s functional currency, and all values are rounded to the nearest lakhs, except otherwise indicated.

iv. Composition of Financial Statements

The financial statements comprise:

- Balance Sheet

- Statement of Profit and Loss

- Statement of Cash Flow

- Statement of Changes in Equity

- Notes to Financial Statements

1.3 Key Accounting Judgments, Estimates and Assumptions

In preparing these financial statements, management has made judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates

Estimates and underlying assumptions are reviewed on an ongoing basis. Any change in these estimates and assumptions will generally be reflected in the financial statements in current period or prospectively, unless they are required to be treated retrospectively under relevant accounting standards.

2. RECENT ACCOUNTING PRONOUNCEMENTS:

Ind AS 115: Revenue from contracts with Customers

On 28th March, 2018, Ministry of Corporate Affairs (MCA), has notified the Ind AS 115, Revenue from contracts with Customers. The core principal of new standard is that an Entity should recognise the revenue to depict the transfer of promised goods or services to Customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. Further, the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flow arising from the entity’s contracts with customers. The effective date for adoption of Ind AS 115 is financial period beginning on or after 1st April, 2018. The Company will adopt the standard on 1st April, 2018 using cumulative catch up transition method and accordingly comparative for the year ending or ended 31st March, 2018 will not be retrospectively adjusted. The effect on adoption of Ind AS 115 on the operation of the Company is being assessed by the Company.

3 Earnings per share (EPS)

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.

4 Disclosure as required under Ind AS 19 - Employee Benefits

[A] Defined contribution plans:

The Company makes contributions 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 Rs. 12.93 Lakhs (P.Y : Rs. 11.22 Lakhs ) for provident fund contributions in the Statement of Profit and Loss.

[B] Defined benefit plan:

The Company makes annual contributions to Shilchar Technologies Limited Employees’ Gratuity Fund managed by LIC, a funded defined benefit plan for qualifying employees. 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.

The following table sets out the status of the gratuity plan and the amounts recognised in the Company’s financial statements as at March 31, 2018.

5 Disclosure pursuant to Ind AS 17 - Leases

The Company has obtained premises for its business operations under operating lease or leave and license agreements. These are not non-cancellable and are renewable by mutual consent on mutually agreeable terms.

Lease payments are recognised in Statement of Profit and Loss under the head “Rent Expense” in note no 32.

6 Disclosure related to Micro and Small Enterprises

The Company has certain dues to suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act). The Disclosure Pursuant to the said MSMED Act is as follows:

Note 1: Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management. This has been relied upon by the auditors.

Note 2: There is no interest paid during the year or payable at the end of the year to any of the Micro and Small Enterprises.

7 Corporate Social Responsibility (CSR)

As per section 135 of the Companies Act , 2013 , a CSR committee has been formed by the company. The areas for CSR activities are promoting education, art and culture, healthcare, destitute care and rehabilitation and rural development projects as specified in Schedule VII of the Companies Act, 2013.The details of amount required to be spent and actual expenses spent during the year is as under:

(a) Gross amount required to be spent by the company during the year: Rs. 28.03 Lakhs (Previous Year Rs. 18.16 Lakhs)

(b) Amount spent during the year on:

8 Operating Segments

The activities of the Company relate to only one segment i.e. Transformers & Parts.

Geographical Information

The analysis of geographical information is based on the geographical location of the customers. The geographical information considered for disclosure are as follows:

Property, Plant and Equipment by Geographical Locations

The Company has common PPE for producing goods for domestic as well as overseas market. There are no PPE situated outside India. Hence, additional segment-wise information for PPE / additions to PPE has not been furnished.

9 Financial Risk Management

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.

(A) Credit risk

Credit risk is the risk of incurring a loss that may arise from a borrower or debtor failing to make required payments. Credit risk arises mainly from outstanding receivables from free market dealers, cash and cash equivalents, employee advances and security deposits. The Company manages and analyses the credit risk for each of its new clients before standard payment and delivery terms and conditions are offered.

(i) Credit risk management

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 assests 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.

For trade receivables, the Company applies the simplified approach permitted by Ind AS 109 Financial Instrument, which requires expected lifetime losses to be recognized from initial recognition of the receivables. When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating expected credit losses, the Company considers reasonable and relevant information that is available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company’s historical experience and informed credit assessment and including forward looking information.

(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.

(i) Maturities of financial liabilities

The tables herewith analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for:

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) Market risk

(i) Foreign currency 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.

The risk is measured through a forecast of foreign currency for the Company’s operations.

The Companys exposure to foreign currency risk at the end of the reporting period expressed in Indian Rupee, are as follows:

10 Capital Management Risk management

For the purpose of the company’s capital management, equity includes equity share capital and all other equity reserves attributable to the equity holders of the Company. The Company manages its capital to optimise returns to the shareholders and makes adjustments to it in light of changes in economic conditions or its business requirements. The Company’s objectives are to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth and maximise the shareholders value. The Company funds its operation through internal accruals. The management and Board of Directors monitor the return on capital as well as the level of dividends to shareholders.

11 Disclosure as required by Ind AS 101 first time adoption of Indian Accounting Standards Transition to Ind AS

These are the Company’s first Standalone Financial Statements prepared in accordance with Ind AS.

The accounting standards notified u/s 133 of the Companies Act, 2013 and the Accounting policies set out in note 1.2 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet at April 1, 2016 (The Company’s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP).

An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied by the Company in the transition from previous GAAP to Ind AS.

A.1 Ind AS optional exemptions

Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its Property, Plant and Equipment (PPE) as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for decommissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets. Accordingly, the Company as elected to measure all of its PPE and Intangible assets at their previous GAAP carrying value.

A.1.2 Designation of previously recognized financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at Fair Value through Other Comprehensive Income (FVOCI) on the basis of the facts and circumstances at the date of transition to Ind AS. The Company has elected to apply this exemption for its investment in equity investments.

A.2 Ind AS Mandatory Exceptions A.2.1 Estimates

An entity’s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at April 1, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP: -Investment in equity instruments carried at FVOCI;and - Investment in mutual funds carried at Fair Value through Profit and Loss (FVTPL).

A.2.2 De-recognition of financial assets and liabilities

Ind AS 101 requires a first time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first time adopter to apply the derecognition requirements in Ind AS 109 retrospectively from a date of the entity’s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions. The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

A.2.3 Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

C. Notes to First time adoption

1 Fair valuation of investments

Under the previous GAAP, investments in mutual funds were classified as long-term investments or current investments based on the intended holding period and realisability.Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes in investment in mutual funds have been recognized in retained earnings as at the date of transition and subsequently in the profit and loss for the year ended March 31, 2017. This increased the retained earnings by Rs.1.66 Lakhs as at March 31, 2017 (April 1, 2016 - Rs.0.12 Lakhs).

2 Loss allowance

On transition to Ind AS, the company has recognised impairment loss on trade receivables based on the expected credit loss model as required by Ind AS 109. Consequently, trade receivables have been reduced with a corresponding decrease in retained earnings on the date of transition and there has been an incremental provision for the year ended 31 March 2017 resulting in decreased in carrying amount by Rs.6.08 Lakhs as at 31 March 2017 and by Rs.6.61 Lakhs as at 1 April 2016.

3 Retained Earnings

Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS adjustments.

4 Deferred tax

Deferred tax have been recognized on the adjustments made on transition to Ind AS.

5 Reversal of Dividend provided

Under previous GAAP, dividend on equity shares, which was recommended by the board of directors after the end of reporting period but before the financial statement were recognised in the financial statements as a liability. Under Ind AS, such dividend are recognised when declared by the members in a general meeting. The effect of this change is an increase in total equity as at 31st march 2016 of Rs. 22.95 Lakhs, but does not affect profit before tax and total profit for the year ended 31st March 2017.

6 Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of profit and loss. Under the previous GAAP, these remeasurements were forming part of the profit and loss for the year.

12 Event after reporting Period

The Board of Director recommended final dividend of Rs.2 per equity share for the financial year ended on 31st March, 2018. The payment is subject to approval of share holder in ensuing Annual General Meeting of the Company. (Previous year Rs. 3 per equity share).

13 These Financial Statements were authorised for issue in accordance with the resolution of the Board of Directors in its meeting held on 28th May, 2018.

14 The figures as on the transition date and previous year have been re-arranged and regrouped wherever necessary to make them comparable with those of the current year.

The accompanying notes are an integral part of the financial statements.

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Mar 31, 2016

(d) The Company has a single class of equity shares which are having par value of Rs. 10 per equity share. All shares rank pari passu with reference to all rights relating thereto. Each Shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportions to their shareholding.

The Bank facilities of Working Capital being Cash Credit, Export Packing Credit and other Facilities obtained from Bank of Baroda are secured by Hypothecation of Stocks, Book Debts, Extension of charge on Current Assets for Letters of Credit, Hypothecation of Plant and Machinery (both present and future) and Equitable Mortgage of entire Factory Land and Building including Corporate Office of the Company. The Bills discounting facilities obtained from ICICI Bank are against LC’s of customers duly confirmed by their respective bankers

Micro and Small Enterprises:

With reference to amounts shown as payable to Micro, Small and Medium Enterprises, the information has been compiled in respect of parties to the extent they could be identified as Micro, Small and Medium Enterprises on the basis of information collected and available with the Company and same has been relied upon by the auditors. The Company deals with various ''--

Micro Small and Medium Enterprises on mutually accepted terms and conditions. No interest is payable if the mutual terms are adhered to by the Company.

Accordingly, no interest has been paid during the year and further no provision for interest payable to such units is required or has been made under Micro, Small and Medium Enterprises Development Act, 2006. Hence, information as required under Schedule VI of the Companies Act, 1956 relating to delayed payments and interest on delayed payments to Micro, Medium and Small Enterprises has not been compiled and presented.

Advances received from customers includes credits in the Bank Accounts of the Company not identifiable with a particular party. The same are adjusted against the relevant parties on receipt of information / confirmation of balances with the said parties.

1. Sundry Creditors and Sundry Debtors are as per books and have not been corroborated by circulation / confirmation of balances / reconciliation of accounts. Confirmations of parties concerned, for the amount receivable / due to them as per accounts of the company, are under process of reconciliation and adjustments required, if any, will be made as and when the accounts are settled.

2. In the opinion of the Board, the Current Assets, Loans and Advances which are considered good are expected to realize at least the amount at which they are stated, if realized in the ordinary course of business. Further, in the opinion of the Board, provision of all known liabilities has been adequately made in the accounts and as per management experience and estimates no additional provision is required for guarantees and warranties, liquidated damages etc

Legal Case Filed against Company by its Creditors-Rs.22,900/-

Legal Case Filed by Company against Debtors with amount still outstanding in books-Rs.78,780/-Guarantees:

The Company has given Corporate Guarantees for Performance of Products to the tune of Rs.18,185,778/- (p.y. Rs.24,108,111/-) to EPC Customers being Private Companies.

Bank Guarantees outstanding as on 31^st March, 2016, amounted to Rs 173,036,439/- (p.y. Rs.186,864,755/-) and Letters of Credit outstanding as at 31^st March 2016, amounted to Rs.77,929,348/- (p.y. Rs.85,096,478/-) against which the company has kept the Margin Money in the form of Fixed Deposit worth Rs. 29,357,317/- (p.y. Rs.30,673,311/-).

3. Commitments (to the extent not provided for)

Estimated amt. of contracts remaining to be executed on capital account: Nil (p.y. Nil)

Other Commitments : Nil

4. Proposed Dividend :

Amount of Rs.0.50 per Equity Share aggregating to Rs.1,906,700/- is being proposed as dividend on equity shares. There are no arrears of dividends.

5. Post Employment Benefits:

Provident Fund dues amounting to Rs. 1,104,269/- (PY Rs. 960,739/-) paid during the year being defined contributions has been charged to the Statement of Profit and Loss.

The value of obligation towards entitlement of employees accumulating earned leave and eligibility of compensation or encashment of the same is determined on the basis of the expected amount required to be paid as a result of actual unused entitlement standing to the credit of the employees as at end of the year based on current salary standards measured by actuarial valuation using projected unit credit method as at the balance sheet date. Accordingly a sum of Rs.1,435,213/- (p.y. Rs.2,243,699/-) has been determined as obligation as at the year end. The current year cost including actuarial gains / losses of Rs. 108,665/- (p.y Rs. 1,458,375/-) has been charged to the Statement of Profit and Loss Account and the benefit pay out of Rs. 917,151/- (p.y Rs. 507,336/-) has been deducted from the overall liability which is unfunded.

The Company has a defined benefit gratuity plan. As per the Payment of Gratuity Act, 1972, every employee who has completed five or more years of service is eligible for gratuity @ 15 days salary (last drawn) for every completed year of service with an overall ceiling of Rs. 10,00,000 (PY Rs. 10,00,000) at the time of separation from the Company or retirement whichever is earlier. The Company has taken a Group Gratuity cum Life Insurance Policy from Life Insurance Corporation of India (a qualifying policy ) and makes annual contributions to the same to create a fund to meet this defined benefit gratuity obligation.

6. Segment Reporting

With respect to Accounting Standard-17, the Management of the Company is of the view that the products offered by the Company are in the nature of Transformers and its related products, having the same risks and returns, same type and class of customers and regulatory environment. Hence, the business of production and sale of transformers and its related products belong to one business segment only.

7. Disclosure as per Accounting Standard 19 on “Accounting for Leases”

The Company has obtained certain premises and equipment on lease / leave and license basis. All the agreements fall under operational leases as per the accounting and recognition policy of the Company.

Weighted Average Number of Equity Shares 38,13,400*12/12 = 38,13,400 (P.Y. 38,13,400)

8. Related Party Transactions

The Company has identified all the related parties having transactions during the year, as per details given below, in line with Accounting Standard-18. In respect of the outstanding balance receivable as on 31.3.2016 no provision for doubtful debts / advances is required to be made.

9. Impairment of Assets:

As a tool to measure to the value of fixed assets, the Company has considered the technical Valuation carried out by expert in the recent. In terms of the valuation report and further in absence of any indications, external or internal, as to any probable impairment of assets, no provision has been made for the same during the year under report. However, Valuation relating to Delhi Office and Furniture has not been obtained and hence it is not possible to determine the impairment, if any, on account of those assets.

10. Corporate Social Responsibility:

Gross Amount required to be spent by the Company during the year is Rs. 9.63 Lacs as per the provisions of Section 135 of the Companies Act, 2013 read with the rules thereon.

The entire amount has been spent by the Company during the year through contributions made to registered trusts inter-alia involved in the activities specified in schedule VII of the Companies Act, 2013 and having a established track record of more than 3 years for the same.

11. The Company did not have any forward contracts outstanding as at the year and hence no need for recognizing any mark-to-market losses in term of ICAI announcement dtd. 29^th March, 2008 on “Accounting for Derivatives”

12. The Company has acquired a new land for future expansion purposes in the preceding financial year. The company has incurred various expenditures in relation to the said land for the purpose of the development of the same. The development cost incurred in respect of the said land has been capitalized.

The Managing Director is eligible for Gratuity as well as Leave Encashment and is covered there-under along with other employees of the Company. However, the above amounts do not include contribution to gratuity fund and provision for leave encashment as well as perquisite for free usage of car as separate figures are not available.

13. The Company owns a Windmill which produces power. The income from units generated from windmill is booked as income and simultaneously the gross power cost of the Company is expensed off.

14. There are no amounts pending to be transferred to the Investors Education and Protection Fund as at the end of the year.

15. The figures in respect of previous year have been regrouped / recast wherever necessary to confirm to the current year’s classification.

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Mar 31, 2014

1. General Information of the Company.

SHILCHAR TECHNOLOGIES LIMITED ("the Company"), incorporated in the year 1986 is a Vadodara, Gujarat, based ISO 9001:2008 profit making and dividend paying Public Limited Company engaged in the business of manufacturing of "Distribution & Power Transformers" as well "Electronics & Telecommunication Transformers."

The Company made its public issue in the year 1995 and is listed on Mumbai Stock Exchange and Vadodara Stock Exchange.

2. The Company has a single class of equity shares which are having par value of Rs. 10 per equity share. All shares rank pari passu with reference to all rights relating thereto. Each Shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportions to their shareholding.

Micro and Small Enterprises:

With reference to amounts shown as payable to Micro, Small and Medium Enterprises, the information has been compiled in respect of parties to the extent they could be identified as Micro, Small and Medium Enterprises on the basis of information collected and available with the Company and same has been relied upon by the auditors. The Company deals with various Micro Small and Medium Enterprises on mutually accepted terms and conditions. No interest is payable if the mutual terms are adhered to by the Company.

Accordingly, no interest has been paid during the year and further no provision for interest payable to such units is required or has been made under Micro, Small and Medium Enterprises Development Act, 2006. Hence, information as required under Schedule VI of the Companies Act, 1956 relating to delayed payments and interest on delayed payments to Micro, Medium and Small Enterprises has not been compiled and presented.

3. Sundry Creditors and Sundry Debtors are as per books and have not been corroborated by circulation / confirmation of balances / reconciliation of accounts. Confirmations of parties concerned, for the amount receivable / due to them as per accounts of the company, are under process of reconciliation and adjustments required, if any, will be made as and when the accounts are settled.

4. In the opinion of the Board, the Current Assets, Loans and Advances which are considered good are expected to realize at least the amount at which they are stated, if realized in the ordinary course of business. Further, in the opinion of the Board, provision of all known liabilities has been adequately made in the accounts and as per management experience and estimates no additional provision is required for guarantees and warranties, liquidated damages etc

5. Contingent Liabilities (to the extent not provided for)

Claims against the Company not acknowledged as debt:

Service Tax Credits Reversed under Protest-Rs. 6,52,179/- (Decision Pending).

VAT Demand on Assessment for 2007-08 Rs.1,08,366/- towards disallowance of Input Tax Credit for the purchases from cancelled dealers and Rs.32,510/- as penalty on it.

CST Demand on Assessment for the year 2007-08 Rs.4,45,455/- towards CST on Freight charged in Invoices as well interest there on.

(Company has preferred Second Appeal at Tribunal - Ahmedabad for both the disallowances after fully paying both the demand, hearing is awaited.)

CST Demand on Assessment for 2008-09 Rs. 3,82,863/-

(Against above demand, the Company has filed appeal before Jt. Commissioner of Commercial Tax (Appeals) against the Assessment Order which is pending.)

CST Demand on Assessment for 2009-10 Rs. 19,58,175/-

(Against above demand, the Company has filed appeal before Jt. Commissioner of Commercial Tax (Appeals) against the Assessment Order which is pending.)

Legal Case Filed against Company by its Creditors-Rs.22,900/-

Legal Case Filed by Company against Debtors with amount still outstanding in books-Rs.1,98,085/- Guarantees:

The Company has given Corporate Guarantees for Performance of Products to the tune of Rs.2,42,77,391/- (p.y. Rs.2,42,77,391/-) to EPC Customers being Private Companies.

Bank Guarantees outstanding as on 31st March, 2014, amounted to Rs 16,51,78,896/- (p.y. Rs.17,37,74,365/-) and Letters of Credit outstanding as at 31st March 2014, amounted to Rs.7,31,82,256/- (p.y. Rs. 9,69,49,897/-) against which the company has kept the Margin Money in the form of Fixed Deposit worth Rs. 2,69,13,734/- (p.y. Rs. 2,95,73,729/-).

6. Commitments (to the extent not provided for)

Estimated amt. of contracts remaining to be executed on capitalaccount : Nil (p.y. Nil)

Other Commitments : Nil

7. Proposed Dividend :

Amount of Rs. 1.00 per Equity Share aggregating to Rs. 38,13,400 is being proposed as dividend on equity shares. There are no arrears of dividends.

Post Employment Benefits:

Provident Fund dues amounting to Rs. 7,78,314 (PY Rs. 8,00,846) paid during the year being defined contributions has been charged to the Statement of Profit and Loss.

The value of obligation towards entitlement of employees accumulating earned leave and eligibility of compensation or encashment of the same is determined on the basis of the expected amount required to be paid as a result of actual unused entitlement standing to the credit of the employees as at end of the year based on current salary standards measured by actuarial valuation using projected unit credit method as at the balance sheet date. Accordingly a sum of Rs. 12,92,660 (p.y. Rs. 9,71,463) has been determined as obligation as at the year end. The current year cost including actuarial gains / losses of Rs. 8,38,301 (p.y Rs. 4,01,847/-) has been charged to the Statement of Profit and Loss Account and the benefit pay out of Rs. 5,17,104/- (p.y Rs. 3,89,037/-) has been deducted from the overall liability which is unfunded.

The Company has a defined benefit gratuity plan. As per the Payment of Gratuity Act, 1972, every employee who has completed five or more years of service is eligible for gratuity @ 15 days salary (last drawn) for every completed year of service with an overall ceiling of Rs. 10,00,000 (PY Rs. 10,00,000) at the time of separation from the Company or retirement whichever is earlier. The Company has taken a Group Gratuity cum Life Insurance Policy from Life Insurance Corporation of India ( a qualifying policy ) and makes annual contributions to the same to create a fund to meet this defined benefit gratuity obligation.

8. Segment Reporting

With respect to Accounting Standard-17, the Management of the Company is of the view that the products offered by the Company are in the nature of Transformers and its related products, having the same risks and returns, same type and class of customers and regulatory environment. Hence, the business of production and sale of transformers and its related products belong to one business segment only.

9. Impairment of Assets:

As a tool to measure to the value of fixed assets, the Company has considered the technical Valuation carried out by expert in the recent. In terms of the valuation report and further in absence of any indications, external or internal, as to any probable impairment of assets, no provision has been made for the same during the year under report. However, Valuation relating to Delhi Office and Furniture has not been obtained and hence it is not possible to determine the impairment, if any, on account of those assets.

10. The Company did not have any forward contracts outstanding as at the year and hence no need for recognizing any mark- to-market losses in term of ICAI announcement dtd. 29th March, 2008 on "Accounting for Derivatives"

11. The Company has acquired a new land for future expansion purposes in the preceding financial year. The company has incurred various expenditures in relation to the said land for the purpose of the development of the same. The development cost incurred in respect of the said land has been capitalized.

12. The Company owns a Windmill which produces power. The Units of Power generated from the Windmill are setoff against the monthly power bill of the Company. Consequently, the power cost of the Company for the year under report is net of the setoff of the power units generated from the Windmill

13. There are no amounts pending to be transferred to the Investors Education and Protection Fund as at the end of the year.

14. The figures in respect of previous year have been regrouped / recast wherever necessary to confirm to the current year''s classification.

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Mar 31, 2013

1. General Information of the Company.

SHILCHAR TECHNOLOGIES LIMITED ("the Company"), incorporated in the year 1986 is a Vadodara, Gujarat, based ISO 9001:2008 profit making and dividend paying Public Limited Company engaged in the business of manufacturing of "Distribution & Power Transformers" as well "Electronics & Telecommunication Transformers." The Company made its public issue in the year 1995 and is listed on Mumbai Stock Exchange and Vadodara Stock Exchange.

2. Sundry Creditors and Sundry Debtors are as per books and have not been corroborated by circulation / confirmation of balances / reconciliation of accounts. Confirmations of parties concerned, for the amount receivable / due to them as per accounts of the company, are under process of reconciliation and adjustments required, if any, will be made as and when the accounts are settled.

3. In the opinion of the Board, the Current Assets, Loans and Advances which are considered good are expected to realise at least the amount at which they are stated, if realized in the ordinary course of business. Further, in the opinion of the Board, provision of all known liabilities has been adequately made in the accounts and as per management experience and estimates no additional provision is required for guarantees and warranties, liquidated damages etc

4. Contingent Liabilities (to the extent not provided for)

Claims against the Company not acknowledged as debt : Service Tax Credits Reversed under Protest–Rs. 652179/- (Decision Pending) VAT/CST Demand on Assessment for 2007-08 Rs. 2455370 CST Demand on Assessment Order for 2008-09 – Rs. 382863/- (Against both of the above demands, the Company has filed appeal before Jt. Commissioner of Commercial Tax (Appeals) against the Assessment Order which is pending.)

Legal Case Filed against Company by its Creditors-Rs.1,64,340/- Legal Case Filed by Company against Debtors with amount still outstanding in books-Rs.78,780/- Guarantees :

The Company has given Corporate Guarantees for Performance of Products to the tune of Rs.2,42,77,391/- (p.y. Rs.1,38,97,990/-) to EPC Customers being Private Companies.

Bank Guarantees outstanding as on 31st March, 2013, amounted to Rs 17,37,74,365/- (p.y. Rs 19,06,75,639/-) and Letters of Credit outstanding as at 31st March 2013, amounted to Rs 9,69,49,897/- (p.y. Rs. 16,54,25,325/-) against which the company has kept the Margin Money in the form of Fixed Deposit worth Rs. 2,95,73,729/- (p.y. Rs. 3,88,79,437/-).

5. Commitments (to the extent not provided for)

Estimated amt. of contracts remaining to be executed on capital account : Nil (p.y. Nil) Other Commitments : Nil

6. Proposed Dividend :

Amount of Rs. 0.50 per Equity Share aggregating to Rs. 1,906,700 is being proposed as dividend on equity shares. There are no arrears of dividends.

7. Post Employment Benefits:

Provident Fund dues amounting to Rs. 8,00,846 (PY Rs. 8,43,479) paid during the year being defined contributions has been charged to the Statement of Profit and Loss.

The value of obligation towards entitlement of employees accumulating earned leave and eligibility of compensation or encashment of the same is determined on the basis of the expected amount required to be paid as a result of actual unused entitlement standing to the credit of the employees as at end of the year based on current salary standards measured by actuarial valuation using projected unit credit method as at the balance sheet date. Accordingly a sum of Rs. 9,71,463 (p.y. Rs. 9,58,653) has been determined as obligation as at the year end. The current year cost including actuarial gains / losses of Rs. 4,01,847/- (p.y Rs. 5,23,136/-) has been charged to the Statement of Profit and Loss Account and the benefit pay out of Rs. 3,89,037/- (p.y Rs. 5,64,705/-) has been deducted from the overall liability which is unfunded.

The Company has a defined benefit gratuity plan. As per the Payment of Gratuity Act, 1972, every employee who has completed five or more years of service is eligible for gratuity @ 15 days salary (last drawn) for every completed year of service with an overall ceiling of Rs. 10,00,000 (PY Rs. 10,00,000) at the time of separation from the Company or retirement whichever is earlier. The Company has taken a Group Gratuity cum Life Insurance Policy from Life Insurance Corporation of India ( a qualifying policy ) and makes annual contributions to the same to create a fund to meet this defined benefit gratuity obligation.

8. Segment Reporting

With respect to Accounting Standard-17, the Management of the Company is of the view that the products offered by the Company are in the nature of Transformers and its related products, having the same risks and returns, same type and class of customers and regulatory environment. Hence, the business of production and sale of transformers and its related products belong to one business segment only.

9. Disclosure as per Accounting Standard 19 on "Accounting for Leases"

The Company has obtained certain premises and equipment on lease / leave and license basis. All the agreements fall under operational leases as per the accounting and recognition policy of the Company.

10. Related Party Transactions

The Company has identified all the related parties having transactions during the year, as per details given below, in line with Accounting Standard-18. In respect of the outstanding balance receivable as on 31.3.2012 no provision for doubtful debts / advances is required to be made.

11. Impairment of Assets:

As a tool to measure to the value of fixed assets, the Company has considered the technical Valuation carried out by expert in the recent. In terms of the valuation report and further in absence of any indications, external or internal, as to any probable impairment of assets, no provision has been made for the same during the year under report. However, Valuation relating to Delhi Office and Furniture has not been obtained and hence it is not possible to determine the impairment, if any, on account of those assets.

12. The Company did not have any forward contracts outstanding as at the year and hence no need for recognizing any mark- to-market losses in term of ICAI announcement dtd. 29th March, 2008 on "Accounting for Derivatives"

13. The Company has acquired a new land for future expansion purposes in the preceding financial year. The company has incurred various expenditures in relation to the said land for the purpose of the development of the same. The development cost incurred in respect of the said land has been accounted under the head of Capital Work in Progress.

14. Directors'' remuneration is within the limits prescribed by Section II of Part II of Schedule XIII of the Companies Act, 1956. The amounts paid included the following :

The Managing Director is eligible for Gratuity as well as Leave Encashment and is covered there-under alongwith other employees of the Company. However, the above amounts do not include contribution to gratuity fund and provision for leave encashment as well as perquisite for free usage of car as separate figures are not available.

15. The Company owns a Windmill which produces power. The Units of Power generated from the Windmill are setoff against the monthly power bill of the Company. Consequently, the power cost of the Company for the year under report is net of the setoff of the power units generated from the Windmill

16. There are no amounts pending to be transferred to the Investors Education and Protection Fund as at the end of the year.

17. The figures in respect of previous year have been regrouped / recast wherever necessary to confirm to the current years'' classification.

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Mar 31, 2012

1. General Information of the Company.

SHILCHAR TECHNOLOGIES LIMITED ("the Company"), incorporated in the year 1986 is a Vadodara, Gujarat, based ISO 9001:2008 profit making and dividend paying Public Limited Company engaged in the business of manufacturing of "Distribution & Power Transformers" as well "Electronics & Telecommunication Transformers."

The Company made its public issue in the year 1995 and is listed on Mumbai Stock Exchange and Vadodara Stock Exchange.

(a) The Company has a single class of equity shares which are having par value of Rs. 10 per equity share. All shares rank pari passu with reference to all rights relating thereto. Each Shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportions to their shareholding.

Long Term Unsecured Loans represent balance out of the External Commercial Borrowings (ECB's) obtained by the Company from one of its Foreign Equity holders to the tune of US$ 350000 for the purpose of its erstwhile expansion project in terms of relevant rules of the Reserve Bank of India. Company had initially obtained deferment on repayment of the balance of the principal amount. However, Company has started repayment of the Loan as per installments agreed upon. The interest as well as exchange rate difference is being duly provided on the balance amounts.

Deferred Tax Assets on Account of Provision for Diminution in Value of Investments are not recognized since there is no reasonable certainty that Company will have future taxable capital gains income against which such deferred tax assets can be realized.

The Bank facilities of Working Capital being Cash Credit, Export Packing Credit and other Facilities obtained from Bank of Baroda are secured by Hypothecation of Stocks, Book Debts, Extension of charge on Current Assets for Letters of Credit, Hypothecation of Plant and Machinery (both present and future) and Equitable Mortgage of entire Factory Land and Building including Corporate Office of the Company. The Bank Facilities of Working Capital being Cash Credit Facilities, Working Capital Demand Loans and other facilities obtained from Standard Chartered Bank are secured by way of a pari passu charge on the above assets of the Company. The Bills discounting facilities obtained from Kotak Mahindra Bank and ICICI Bank are against LC's of customers duly confirmed by their respective bankers

Micro and Small Enterprises :

With reference to amounts shown as payable to Micro, Small and Medium Enterprises, the information has been compiled in respect of parties to the extent they could be identified as Micro, Small and Medium Enterprises on the basis of information collected and available with the Company and same has been relied upon by the auditors. The Company deals with various Micro Small and Medium Enterprises on mutually accepted terms and conditions. No interest is payable if the mutual terms are adhered to by the Company.

Accordingly, no interest has been paid during the year and further no provision for interest payable to such units is required or has been made under Micro, Small and Medium Enterprises Development Act, 2006. Hence, information as required under Schedule VI of the Companies Act, 1956 relating to delayed payments and interest on delayed payments to Micro, Medium and Small Enterprises has not been compiled and presented.

In case of Sundry Debtors outstanding for more than one year, certain sums are outstanding against deductions made on account of quality, late delivery etc. by the parties to whom supplies were made. However, the Management is pursuing the matters with the respective parties and is confident of recovering the amount and hence no provision has been made against the same. Similarly, in case of delayed delivery beyond the stipulated terms of supply order, expected deduction for later delivery based on contractual terms is not provided for since Management is confident of being able to pursue the matters and recovering the amounts, if deducted.

1. Sundry Creditors and Sundry Debtors are as per books and have not been corroborated by circulation / confirmation of balances / reconciliation of accounts. Confirmations of parties concerned, for the amount receivable / due to them as per accounts of the company, are under process of reconciliation and adjustments required, if any, will be made as and when the accounts are settled.

2. In the opinion of the Board, the Current Assets, Loans and Advances which are considered good are expected to realise at least the amount at which they are stated, if realized in the ordinary course of business. Further, in the opinion of the Board, provision of all known liabilities has been adequately made in the accounts and as per management experience and estimates no additional provision is required for guarantees and warranties, liquidated damages etc

3. Contingent Liabilities (to the extent not provided for)

Claims against the Company not acknowledged as debt:

Service Tax Credits Reversed under Protest-Rs. 654717/- (Decision Pending)

CST Demand on receipt of Appellate Order for 2006-07 - Rs. 310023 (Company is contemplating filing appeal before the Tribunal within 60 days)

VAT/CST Demand on Assessment for 2007-08 Rs. 2455370

Demand expected to be reduced to approx. Rs. 800000 on receipt of effect of appellate order for 2006-07. Company has also filed appeal before Jt. Commissioner of Sales Tax (Appeals) against the Assessment Order which is pending. Demand for 2008-09 by Excise Dept-Rs. 3,40,420/- (disallowance of credit availed). Company has won its appeal before the Asst. Commissioner of Central Excise. However, the Department has preferred further appeal Legal Case Filed against Company by its Creditors-Rs.1,64,340/-

Legal Case Filed by Company against Debtors with amount still outstanding in books-Rs. 78,780 Guarantees :

The Company has given Corporate Guarantees for Performance of Products to the tune of Rs.1,38,97,990/- (p.y. Rs.96,24,351/-) to EPC Customers being Private Companies.

Bank Guarantees outstanding as on 31st March, 2012, amounted to Rs 19,06,75,639/- (p.y. Rs 11,81,47,311/-) and Letters of Credit outstanding as at 31st March 2012, amounted to Rs 16,54,25,325/- (p.y. Rs. 13,14,79,845/-) against which the company has kept the Margin Money in the form of Fixed Deposit worth Rs. 3,88,79,437/- (p.y. Rs. 3,28,81,715/-).

4. Commitments (to the extent not provided for)

Estimated amt. of contracts remaining to be executed on capital account: Ni (p.y. Rs. 300 lacs)

Other Commitments : Nil

5. Proposed Dividend :

Amount of Rs. 0.50 per Equity Share aggregating to Rs. 1,906,700 is being proposed as dividend on equity shares.

There are no arrears of dividends.

6. Post Employment Benefits:

Provident Fund dues amounting to Rs. 8,43,479 (PY Rs. 8,85,579) paid during the year being defined contributions has been charged to the Statement of Profit and Loss.

The value of obligation towards entitlement of employees accumulating earned leave and eligibility of compensation or encashment of the same is determined on the basis of the expected amount required to be paid as a result of actual unused entitlement standing to the credit of the employees as at end of the year based on current salary standards measured by actuarial valuation using projected unit credit method as at the balance sheet date. Accordingly a sum of Rs. 9,58,653 (p.y. Rs. 10,00,222) has been determined as obligation as at the year end. The differential of Rs. 523,136 (p.y. 689,439) between the obligation as at the end of previous year, compensation paid during the year and the obligation as the year end has been charged to the Statement of Profit and Loss.

The Company has a defined benefit gratuity plan. As per the Payment of Gratuity Act, 1972, every employee who has completed five or more years of service is eligible for gratuity @ 15 days salary (last drawn) for every completed year of service with an overall ceiling of Rs. 10,00,000 (PY Rs. 3,50,000) at the time of separation from the Company or retirement whichever is earlier. The Company has taken a Group Gratuity cum Life Insurance Policy from Life Insurance Corporation of India ( a qualifying policy ) and makes annual contributions to the same to create a fund to meet this defined benefit gratuity obligation.

7. Segment Reporting

With respect to Accounting Standard-17, the Management of the Company is of the view that the products offered by the Company are in the nature of Transformers and its related products, having the same risks and returns, same type and class of customers and regulatory environment. Hence, the business of production and sale of transformers and its related products belong to one business segment only.

8. Impairment of Assets:

As a tool to measure to the value of fixed assets, the Company has considered the technical Valuation carried out by expert in the recent. In terms of the valuation report and further in absence of any indications, external or internal, as to any probable impairment of assets, no provision has been made for the same during the year under report. However, Valuation relating to Delhi Office and Furniture has not been obtained and hence it is not possible to determine the impairment, if any, on account of those assets.

9. The Company did not have any forward contracts outstanding as at the year and hence no need for recognizing any mark- to-market losses in term of ICAI announcement dtd. 29th March, 2008 on "Accounting for Derivatives"

10. The Company has acquired new land for future expansion purposes. Company has been making payments of the total determined consideration in installments since the previous financial year. The acquisition of land took a substantial period of time. Hence, after more than 6 months had elapsed from the payment of the first installment, the Company decided to capitalise the total borrowing costs related to the above land acquisition based on the installments paid right from the date of the first installment, in terms of the accounting practice followed by the Company in consonance with Accounting Standard- 16 Borrowing Costs,.

Accordingly, total Borrowing Costs of Rs. 49,65,436 have been worked out and capitalized during the year to the cost of acquisition of the said land. Since there are no separate borrowings for the said acquisition, the costs have been worked out by calculation proportionate interests from the total interest costs incurred by the company. Out of the total capitalized borrowing costs a sum of Rs. 5,15,342 is relating to the last quarter of the previous financial year when the first installment was paid and hence has been treated as prior period income.

The Managing Director is eligible for Gratuity as well as Leave Encashment and is covered there-under along with other employees of the Company. However, the above amounts do not include contribution to gratuity fund and provision for leave encashment as well as perquisite for free usage of car as separate figures are not available.

11. The Company owns a Windmill which produces power. The Units of Power generated from the Windmill are setoff against the monthly power bill of the Company. Consequently, the power cost of the Company for the year under report is net of the setoff of the power units generated from the Windmill

12. There are no amounts pending to be transferred to the Investors Education and Protection Fund as at the end of the year.

13. These financial statements have been prepared in the format prescribed by the Revised Schedule VI to the Companies Act, 1956. Previous periods figures have been recast / restated.

---

Mar 31, 2011

1. The Bank facilities of Working Capital being Cash Credit, Export Packing Credit and other Facilities obtained from Bank of Baroda are secured by Hypothecation of Stocks, Book Debts, Extension of charge on Current Assets for Letters of Credit, Hypothecation of Plant and Machinery (both present and future) and Equitable Mortgage of entire Factory Land and Building including Corporate Office of the Company. The Bank Facilities of Working Capital being Cash Credit Facilities, Working Capital Demand Loans and other facilities obtained from Standard Chartered Bank are secured by way of a pari passu charge on the above assets of the Company. The Bills discounting facilities obtained from Kotak Mahindra Bank and ICICI Bank are against LCs of customers duly confirmed by their respective bankers

2. Long Term Unsecured Loans represent balance out of the External Commercial Borrowings (ECBs) obtained by the Company from one of its Foreign Equity holders to the tune of US$ 350000 for the purpose of its erstwhile expansion project in terms of relevant rules of the Reserve Bank of India. Company had initially obtained deferment on repayment of the balance of the principal amount. However, from the current year the Company has started repayment of the Loan as per installments agreed upon. The interest as well as exchange rate difference is being duly provided on the balance amounts.

3. Long Term Investments held by the Company to the tune of Rs. 990615/- were diminished fully till the end of the previous financial year and have not been reflected in the Schedules to the Balance Sheet since their net carrying cost has been reduced to Nil

No new Provision has been made for diminution (not considered as temporary) in the value of Long Term Investments during the year.

4. Sundry Debtors are as per books and have not been corroborated by circulation / confirmation of balances. As for Sundry Creditors, confirmation of parties concerned, for the amount due to them as per accounts of the company, are received for some of the parties and for others, adjustments if any, required will be made as and when the accounts are settled.

5. Other Current Liabilities include credits in the Bank Accounts of the Company not identifiable with a particular party. The same are adjusted against the relevant parties on receipt of information / confirmation of balances with the said parties.

6. With reference to amounts shown as payable to Micro, Small and Medium Enterprises, the information has been compiled in respect of parties to the extent they could be identified as Micro, Small and Medium Enterprises on the basis of information collected and available with the Company and same has been relied upon by the auditors. The Company deals with various Micro Small and Medium Enterprises on mutually accepted terms and conditions. No interest is payable if the mutual terms are adhered to by the Company.

Accordingly, no interest has been paid during the year and further no provision for interest payable to such units is required or has been made under Micro, Small and Medium Enterprises Development Act, 2006. Hence, information as required under Schedule VI of the Companies Act, 1956 relating to delayed payments and interest on delayed payments to Micro, Medium and Small Enterprises has not been compiled and presented.

7. During the year, Company has sold certain very old machineries. However, in absence of detailed Fixed Assets Register for the period prior to the year 2000, the actual cost / revalued cost of particular machineries sold as covered under the Gross Block of Plant & Machinery in the Fixed Assets Schedule could not be ascertained. Hence, the Profit or Loss on sale of these assets have been worked out by taking the cost of these machineries as per Valuation Report on Machineries and after adjusting the depreciation for period / years of use.

8. In the opinion of the Board, the Current Assets, Loans and Advances which are considered good are expected to realise at least the amount at which they are stated, if realized in the ordinary course of business. Further, in the opinion of the Board, provision of all known liabilities has been adequately made in the accounts and as per management experience and estimates no additional provision is required for guarantees and warranties, liquidated damages etc.

In case of Sundry Debtors outstanding for more than one year, certain sums are outstanding against deductions made on account of quality, late delivery etc. by the parties to whom supplies were made. However, the Management is pursuing the matters with the respective parties and is confident of recovering the amount and hence no provision has been made against the same. Similarly, in case of delayed delivery beyond the stipulated terms of supply order, expected deduction for later delivery based on contractual terms is not provided for since Management is confident of being able to pursue the matters and recovering the amounts, if deducted.

9. The Managing Director is eligible for Gratuity as well as Leave Encashment and is covered there-under alongwith other employees of the Company. However, the above amounts do not include contribution to gratuity fund and provision for leave encashment as well as perquisite for free usage of car as separate figures are not available.

10. No Borrowing Costs were eligible for capitalization during the year.

11. The Company owns a Windmill which produces power. The Units of Power generated from the Windmill are setoff against the monthly power bill of the Company. Consequently, the power cost of the Company for the year under report is net of the setoff of the power units generated from the Windmill.

12. Foreign Currency Monetary Item Translation Difference :

In terms of Notification issued by the Ministry of Corporate Affairs on 31st March, 2009 and accepted by the Institute of Chartered Accountants of India, the Company had opted for accumulating the Exchange Rate Difference arising on reporting of its Long-term Foreign Currency Item viz. Foreign Currency Monetary Item Translation Difference Account (FCMITD). As per the conditions stipulated in the said notification for exercise of the above option, the Company has accumulated the exchange rate difference arising on its Long Term External Commercial Borrowings (ECB) upto 31st March, 2011 to the above account amounting to Rs. 22,40,000/- including reversal of exchange rate gains arising in the accounting periods commencing after 7th December, 2006.

As stipulated by the said notification, the above balance was to be written off in two installments in 2009-10 and 2010-11. Accordingly, after adjusting the gain on ECB for the 2009-10 of Rs. 1,70,417, one-half of the balance of Rs. 5,39,583/- was been written off during 2009-10. After further adjusting the gain on ECB for the current year, the balance outstanding as at the year end has been fully written off

13. The Company did not have any forward contracts outstanding as at the year and hence no need for recognizing any mark-to- market losses in term of ICAI announcement dtd. 29th March, 2008 on "Accounting for Derivatives"

14. The Company has carried out transactions in Commodity Futures of Aluminium and Copper with Dhaneshwari Commodity Services Ltd. as a tool to hedge against the risk in fluctuation of prices of these essential raw materials.

The only open position as at 31st March, 2011 was a Buy of 5000 Kgs. of Copper. Net Profit / (Loss) of Rs. (16,534) shown in the Profit and Loss Account above as well as balance appearing in the name of Dhaneshvari Commodities Pvt. Ltd. is after Mark-to-Market adjustment for the above open position.

15. Contingent Liabilities

Bank Guarantees outstanding as on 31st March, 2011, amounted to Rs 11,81,47,311/- (p.y. Rs 9,83,67,176/-) and Letters of Credit outstanding as at 31st March 2011, amounted to Rs 13,14,79,845/- (p.y. Rs. 6,41,90,080/-) against which the company has kept the Margin Money in the form of Fixed Deposit worth Rs. 3,28,81,715 (p.y. Rs. 1,99,27,057/-).

The Company has given Corporate Guarantees for Performance of Products to the tune of Rs.96,24,351/- (p.y. Rs. 6,14,679/-) to EPC Customers being Private Companies.

Income Tax Assessment Demand for AY 2007-08 of Rs. 3,59,880/-. Company has filed an appeal against the same before the Commissioner of Income Tax (Appeals) Vadodara, which is pending to be heard. However, the demand has been paid off by the Company.

Service Tax Credits Reversed under Protest–Rs. 654717/- (Decision Pending)

Demand for 2008-09 by Excise Dept–Rs. 3,40,420/- (disallowance of credit availed). Company has won its appeal before the Asst. Commissioner of Central Excise. However, the Department has preferred further appeal VAT / CST Credit Reversal & Penalty for 2006-07 – Rs. 576170 – Appeal Filed is Pending Legal Case Filed against Company by its Creditors-Rs.1,64,340/- Legal Case Filed by Company against Debtors with amount still outstanding in books-Rs. 78,780 There are no other claims against the Company to be acknowledged as debt. Estimated amount of contracts to be executed on Capital Account: Rs. 200 Lacs (p.y. Rs Nil)

16. Post Employment Benefits:

Provident Fund dues amounting to Rs. 8,85,578 (PY Rs. 8,59,740) paid during the year being defined contributions has been charged to the Profit and Loss Account.

Employee Benefits on account of compensated absences are considered as Short Term Benefits considering the

Leave Encashment Policy and have been accounted based on the actual leave standing to the credit of the employees as at the year end.

The Company has a defined benefit gratuity plan. Every employee who has completed five or more years of service is eligible for gratuity @ 15 days salary (last drawn) for every completed year of service with an overall ceiling of Rs. 10,00,000 (PY Rs. 3,50,000). The Company has taken a Group Gratuity cum Life Insurance Policy from Life Insurance Corporation of India (a qualifying policy) and makes annual contributions to the same to create a fund to meet this defined benefit gratuity obligation.

17. Segment Reporting

With respect to Accounting Standard-17, The Management of the Company is of the view that the products offered by the Company are in the nature of Transformers and its related products, having the same risks and returns, same type and class of customers and regulatory environment. Hence, the business of production and sale of transformers and its related products belong to one business segment only.

18. Related Party Transactions

The Company has identified all the related parties having transactions during the year, as per details given below, in line with Accounting Standard-18. In respect of the outstanding balance receivable as on 31.3.2011 no provision for doubtful debts / advances is required to be made.

19. Deferred Taxes

In compliance with Accounting Standard – 22 on Taxes on Income, the Company has disclosed deferred tax liabilities and deferred tax assets as under for the year ended 31st March, 2011 after charging the net deferred tax liability for the year under report of Rs. – 4,46,604 (p.y. Rs. 8,60,259) the profit and loss account.

Deferred Tax Assets on Account of Provision for Diminution in Value of Investments are not recognized since there is no reasonable certainty that Company will have future taxable capital gains income against which such deferred tax assets can be realized.

20. Disclosure as per Accounting Standard 19 on "Accounting for Leases"

The Company has obtained certain premises and equipment on lease / leave and license basis. All the agreements fall under operational leases as per the accounting and recognition policy of the Company.

21. Impairment of Assets:

As a tool to measure to the value of fixed assets, the Company has considered the technical Valuation carried out by expert in the recent. In terms of the valuation report and further in absence of any indications, external or internal, as to any probable impairment of assets, no provision has been made for the same during the year under report. However, Valuation relating to Delhi Office and Furniture has not been obtained and hence it is not possible to determine the impairment, if any, on account of those assets.

22. There are no amounts pending to be transferred to the Investors Education and Protection Fund as at the end of the year.

23. The figures in respect of previous year have been regrouped / recast wherever necessary to conform to the current years classifications

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Mar 31, 2010

1. Foreign Currency Monetary Item Translation Difference :

In terms of Notification issued by the Ministry of Corporate Affairs on 31st March, 2009 and accepted by the Institute of Chartered Accountants of India, the Company had opted for accumulating the Exchange

2. During the year, the Company has sold its investments in shares of Intech Agenci|s Private Limited (the then Company under thsj same Management), The Company held 105000 eqi§ty shares of Rs. 10/- each costing a sum totaliof Rs. 10,50,000A. Provision for diminution in value his been made for this entire amount of Rs. 10,00,000/- in earlier years. During the year, these investments were disposed off for Rs. 55000/-. Company hasrayersed the provision for diminutionto that extent and adjusted the sale proceeds against the same

3. Long Term Investments held by the Company to thetune of sRss ©89985/r were diminished fully till the end of the previous financial year and have not been reflected in the Schedules to the Balance Sheet since their net carrying cost has been reduced to Nil

No new Provision has been made for diminution (not considered as temporary) in the value of Long Term Investments during the year.

4. No Borrowing Costs were eligible for capitalization during the year.

5. Sundry Debtors are as per books and have not been corroborated by circulation / confirmation of balances. As for Sundry Creditors, confirmation of parties concerned, for the amount due to them as per accounts of the company, are received for some of the parties and for others, adjustments if any, required will be made as and when the accounts are settled.

6. Other Current Liabilities include credits in the Bank Accounts of the Company not identifiable with a particular party. The same are adjusted against the relevant parties on receipt of information / confirmation of balances with the said parties.

7. With reference to amounts shown as payable to Micro, Small and Medium Enterprises, the information has been compiled in respect of parties to the extent they could be identified as Micro, Small and Medium Enterprises on the basis pffrtfo^ and same has been relied upon by the auditors. The Company deals with various Micro Small and Medium Enterprises on mutually accepted terms and conditions. No interest is payable if the mutual terms are adhered to by the Company.

Accordingly, no interest has been paid during the year and further no provision for interest payable to such units is required or has been made underMicro,. Small and Medium Enterprises Development Act, 2006. Hence, informatioias required under Schedule VI of the Companies Act, 1 956 relating to delayed payments and interest c|n delayed payments to Micro, Medium and Small Enterprises has not been compiled and presented,

8. The Company owns a Windmill which produces power. The Units of Power generated from the Windmill are setoff against the monthly power bill of the Company. Consequently, the power cost of the Company for the year under reports net of the setoff of the power units generated from the Windmill.

9. During the year, Company has sold a piece of Land for Rs. 44,00,000. However, In absence of detailed Fixed Assets Register f orjthe period pjior to the year 2000, the actual cost / revalued cost of this particular land as covered under the Gross Block of Land in the Fixed Assets Schedule could not be ascertained. The Company has worked out the actual acquisition and development cost of Rs. 611795 and treated the balance amount of Rs> 37,88,205lasProfit.on thesale.

10. In the opinion of the Board, the Current Assets, Loans and Advances which are considered good are expected to realise at least the amount at which they are stated, if realized in the ordinary course of business. Further, in the opinion of the Board, provision of all known liabilities has been adequately made in the accounts and as per management experience and estimates no provision is required for guarantees and warranties, liquidated damages etc.

11. Contingent Liabilities

Bank Guarantees outstanding as on 31st March, 2010, amounted to Rs 9,83,67,176/- (p.y. Rs 5,61,74,100/-) and Letters of Credit outstanding as at 31st March 2010, amounted to Rs 6,41,90,080/- (p.y. Rs. 2,97,80,822/-) against which the company has kept the Margin Money in the form of Fixed Deposit worth Rs. 1,99,27,057 (p.y. Rs. 1,03,42,206/-).

The Company has given Corporate Guarantees for Performance of Products to the tune of Rs.6,14,679/ - to EPC Customers being Private Companies.

12. Post Employment Benefits:

Provident Fund dues amounting to Rs. 859740 (PY Rs. 855417) paid during the year being defined contributions has been charged to the Profit and Loss Account.

Long Term Employee Benefits on account of compensated absences have been accounted for on actuarial basis using the Projected Unit Credit Method.

The Company has a defined benefit gratuity plan. Every employee who has completed five or more years of service is eligible for gratuity @ 15 days salary (last drawn) for every completed year of service with an overall ceiling of Rs. 350000. The Company has taken a Group Gratuity cum Life Insurance Policy from Life Insurance Corporation of India (a qualifying policy) and makes annual contributions to the same to create a fund to meet this defined benefit gratuity obligation.

13. Segment Reporting

With respect to Accounting Standard-17, The Management of the Company is of the view that the products offered by the Company are in the nature of Transformers and its related products, having the same risks and returns, same type and class of customers and regulatory environment. Hence, the business of production and sale of transformers and its related products belong to one business segment only.

14. Related Party Transactions

The Company has identified all the related parties having transactions during the year, as per details given below, in line with Accounting Standard-18. In respect of the outstanding balance receivable as on 31.3.2010 no provision for doubtful debts / advances is required to be made.

15. Deferred Taxes

In compliance with Accounting Standard - 22 on Taxes on Income issued by the Institute of Chartered Accountants of India, the Company has disclosed deferred tax liabilities and deferred tax assets as under for the year ended 31st March, 2010 after charging the net deferred tax liability for the year under report of Rs. 8,60,259 (p.y. Rs. 1,40,529) the profit and loss account.

16. Impairment of Assets:

As a tool to measure to the value of fixed assets, the Company has considered the technical Valuation carried out by expert in the immediate past. In terms of the valuation report and further in absence of any indications, external or internal, as to any probable impairment of assets, no provision has been made for the same during the year under report. However, Valuation relating to Delhi Office and Furniture has not been obtained and hence it is not possible to determine the impairment, if any, on account of those assets.

17. There are no amounts pending to be transferred to the Investors Education and Protection Fund as at the end of the year.

18. The figures in respect of previous year have been regrouped / recast wherever necessary to conform to the current years classifications