Notes to Accounts of Shakti Pumps (India) Ltd.

Mar 31, 2023

Provisions

A Provision is recognised when the Company has a
present obligation (legal or constructive) as a result of a
past event and it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the
amount of the obligation.

2.16 Financial Instruments:

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

(a) Financial assets

Financial assets include cash and cash equivalents,
trade and other receivables, investments in
securities and other eligible current and non¬
current assets.

At initial recognition, all financial assets are
measured at fair value. Such financial assets are
subsequently classified under one of the following
three categories according to the purpose for which
they are held. The classification is reviewed at the
end of each reporting period.

• Financial assets at amortised cost: At the

date of initial recognition, are held to collect
contractual cash flows of principal and interest
on principal amount outstanding on specified
dates. These financial assets are intended
to be held until maturity. Therefore, they
are subsequently measured at amortised
cost by applying the Effective Interest Rate
(EIR) method to the gross carrying amount
of the financial asset. The EIR amortisation
is included as interest income in the profit or
loss. The losses arising from impairment are
recognised in the profit or loss.

• Financial assets at fair value through other
comprehensive income: At the date of initial
recognition, are held to collect contractual
cash flows of principal and interest on principal
amount outstanding on specified dates, as
well as held for selling. Therefore, they are
subsequently measured at each reporting date
at fair value, with all fair value movements
recognised in Other Comprehensive Income
(OCI). Interest income calculated using
the Effective Interest Rate (EIR) method,
impairment gain or loss and foreign exchange
gain or loss are recognised in the Statement of
Profit and Loss. On derecognition of the asset,
cumulative gain or loss previously recognised
in Other Comprehensive Income is reclassified
from the OCI to Statement of Profit and Loss.

• Financial assets at fair value through profit
or loss: At the date of initial recognition,
financial assets are held for trading, or which

are measured neither at Amortised Cost nor
at Fair Value through OCI. Therefore, they are
subsequently measured at each reporting date
at fair value, with all fair value movements
recognised in the Statement of Profit and Loss.

Investment in Equity shares of subsidiaries and
associates are valued at cost.

The Company derecognises a financial asset
when the contractual rights to the cash flows
from the financial asset expire or it transfers
the financial asset and the transfer qualifies for
derecognition under Ind AS 109.

The company assesses impairment based on
the expected credit losses (ECL) model to all
its financial assets measured at amortised cost.

(b) Financial liabilities

Financial liabilities include long-term and short-term
loans and borrowings, trade and other payables and
other eligible current and non-current liabilities.

All financial liabilities are recognised initially at
fair value and, in the case of loans and borrowings
and other payables, net of directly attributable
transaction costs. After initial recognition, financial
liabilities are classified under one of the following
two categories:

• Financial liabilities at amortised cost: After
initial recognition, such financial liabilities
are subsequently measured at amortised
cost by applying the Effective Interest Rate
(EIR) method to the gross carrying amount of
the financial liability. The EIR amortisation is
included in finance expense in the profit or
loss.

• Financial liabilities at fair value through profit
or loss: which are designated as such on initial
recognition, or which are held for trading. Fair
value gains / losses attributable to changes
in own credit risk is recognised in OCI. These
gains / losses are not subsequently transferred
to Statement of Profit and Loss. All other
changes in fair value of such liabilities are
recognised in the Statement of Profit and Loss.

The Company derecognises a financial liability
when the obligation specified in the contract is
discharged, cancelled or expires.

2.17 Revenue Recognition

The Company derives revenues primarily from business
of Sales of pumps and motors.

As per Ind AS 115 revenue is recognised upon transfer
of control of promised products or services to customers
in an amount that reflects the consideration which the
Company expects to receive in exchange for those
products or services. Revenue is measured based on the

transaction price, which is the consideration, adjusted
net of returns, allowances, trade discounts and volume
discounts and GST etc.

Dividend and interest income is recorded when the right
to receive payment is established.

2.18 Earnings per share

Basic earnings per share are computed by dividing
profit or loss attributable to equity shareholders of the
Company by the weighted average number of equity
shares outstanding during the period. The Company did
not have any potentially dilutive securities in any of the
periods presented.

2.19 Segment Reporting

SPIL is mainly engaged in the business of manufacturing
of various types of Pumps & Motors. Operating
segments are reporting in a manner consistent with the
internal reporting to the Chief Operating Decision Maker
(CODM).

The Board of Directors of the group assesses the
financial performance and position of the group and
makes strategic decisions. The Board of Directors which
are identified as a CODM, consist of CMD, CFO & all
other executive Directors.

Considering the nature of business & financial reporting
of SPIL, the Company has only one segment as
reportable segment. The Company operates in Local &
Export Segments Geographically. The sales for both are
separately given, but due to the nature of business the
assets/liabilities and expenses for these activities cannot
be bifurcated separately

2.20 Cash and Cash Equivalents

Cash and cash equivalents in the balance sheet comprise
cash at banks, cash on hand and highly liquid short-term
deposits with an original maturity of three months or
less, which are subject to an insignificant risk of changes
in value.

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Mar 31, 2018

1. RELATED PARTY DISCLOSURE AS REQUIRED BY INDIAN ACCOUNTING STANDARD 24 IS AS BELOW

(i) List of Related parties and relationships

S.No. Description of relationship & name of related party :

1. Wholly Owned Foreign Subsidiary Companies :

(i) Shakti Pumps LLC, USA

(ii) Shakti Pumps FZE, UAE

(iii) Shakti Pumps Pty Ltd., Australia

(iv) Shakti Pumps (Shanghai) Limited, China

2. Wholly Owned Domestic Subsidiary Company :

(i) Shakti Energy Solutions Pvt. Ltd.

3. Enterprise over which Key Management are able to exercise significant influence :

(i) Shakti Irrigation India Ltd.

(ii) Arsh Industrial Solutions Pvt. Ltd.

(iii) Shakti Irrigation Pvt. Ltd.

(iv) Vintex Tools Pvt. Ltd.

(v) SPIL Energy Ltd.

4. Key Managerial Personnel :

(i) Mr. Dinesh Patidar

(ii) Mr. Sunil Patidar

(iii) Mr. Ramesh Patidar

B FINANCIAL RISK MANAGEMENT

Shakti Pumps (India) Limited is exposed primarily to market risk (fluctuation in foreign currency exchange rates & interest rate), credit,liquidity which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial environment & seeks to mitigate potential adverse effects on the financial performance of the Company.

1 Capital management :

The company’s capital management objectives are:

(i) The Board policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The board of directors monitors the return on capital employed.

(ii) The Company manages capital risk by maintaining sound/optimal capital structure through monitoring of financial ratios, such as debt-to-equity ratio and net borrowings-to-equity ratio on a monthly basis and implements capital structure improvement plan when necessary.

(iii) The Company uses debt ratio as a capital management index and calculates the ratio as the net debt divided by total equity. Net debts and total equity are based on the amounts stated in the financial statements.

2 CREDIT RISK :

(i) Credit risk is the risk of financial loss arising from counter-party failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit.

(ii) Financial instruments that are subject to concentration of credit risk principally consists of trade receivables, investments, derivative financial instruments and other financial assets. None of the financial instruments of the Company results in material concentration of credit risk

3 LIQUIDITY RISK : Liquidity risk management :

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per 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.

4 MARKET RISK

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company’s exposure to market risk is primarily on account of foreign currency exchange rate risk.

a) Foreign Currency exchange rate risk :

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss and other comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are denominated in a currency other than the functional currency of the respective entities. Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in AED, USD Australian Dollar, Great Britain Pound, Euro against the respective functional currencies of the Company. The Company, as per its risk management policy, evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks & uses derivative instruments primarily to hedge foreign exchange (If required).

Financial & Derivative Instruments :

Derivative Contract entered into by the company for hedging foreign currency related risks :

Foreign Currency Sensitivity :

The following tables demonstrate the sensitivity to a reasonably possible change in foreign currency exchange rates, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities.

b) Interest rate risk :

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt obligations with floating interest rates.

4. FIRST TIME ADOPTION OF IND AS

These financial statements of the Company for the year ended March 31, 2018 have been prepared in accordance with Ind AS for the periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under Section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2006 (Indian GAAP). For the purpose of transition to Ind AS, the Company has followed the guidance prescribed in Ind AS 101 - “First time adoption of Indian Accounting Standards”, with April 01, 2016 as the transition date and Indian GAAP as the previous GAAP.

5 Exemptions applied

Ind AS 101 allows first-time adopters certain exemptions for the retrospective applications of certain requirements under Ind AS. The Company has applied the following exemptions:

A Optional exemptions i. Deemed cost

Ind AS 101 permits a first time adopter to continue with the carrying value for all its property, plant and equipment as recognized in the financial statements as at the date of transition after making necessary adjustments for de-commissioning liabilities.

Since there is no change in the functional currency, the Company has elected to continue with the carrying value for all of its property, plant and equipment as recognized in its Indian GAAP financials as deemed cost at the transition date.

B Mandatory exemptions i. Estimates

The estimates as at 01 April 2016 and at 31 March 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies).

The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at 01 April2016, the date of transition to Ind AS and as of 31 March 2017.

6. Reconciliation between Indian GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows from prior periods. The following tables represent the reconciliation from previous GAAP to Ind AS.

7. Previous years figures have been regrouped / recast, wherever necessary, to correspond with the current year’s classification / disclosure.

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Mar 31, 2017

1. Borrowings from banks and ECB are secured by way of :-

Primary - All the curent assets of the company situated at Plot No. 1 Sector A, Pithampur Distt. Dhar, M.P., Plot No. F-14 & 15, Phase-I, Sector III SEZ, Pithampur and Plot No. 401, 402 & 413, Sector III, Industrial Estate, Pithampur and Plot No.400 & 412A, Sector

III, Industrial Estate, Pithampur, Dist. Dhar, M.P.

Collateral - All the fixed assets of the company situated at Plot No. 1 Sector A, Pithampur Distt. Dhar, M.P., Plot No. F-14 & 15, Phase-I, Sector III SEZ, Pithampur and Plot No. 401, 402 & 413, Sector III, Industrial Estate, Pithampur and Plot No.400 & 412A, Sector

III, Industrial Estate, Pithampur, Dist. Dhar, M.P.

2. Working Capital loans and packing credit are secured as below :

Primary - All the curent assets of the company situated at Plot No. 1 Ssector A, Pithampur Distt. Dhar, M.P., Plot No. F-14 & 15, Phase-I, Sector III SEZ, Pithampur and Plot No. 401,402 & 413, Sector III, Industrial Estate, Pithampur and Plot No. 400 & 412A, Seector III, Industrial Estate, Pithampur, Dist. Dhar, M.P.

Collateral - All the fixed assets of the company situated at Plot No. 1 Ssector A, Pithampur Distt. Dhar, M.P., Plot No. F-14 & 15, Phase-I, Sector III SEZ, Pithampur and Plot No. 401, 402 & 413, Sector III, Industrial Estate, Pithampur and Plot No. 400 & 412A, Seector III, Industrial Estate, Pithampur, Dist. Dhar, M.P.

16.1 Balance with Banks includes Unclaimed Dividend of H1919565/- (Previous year H1789798/-)

*For the purpose of this clause, the term "Specified Bank Notes" shall have the same meaning provided in the notification of the Government of India, Ministry of Finance, Department of Economic Affairs number S.O. 3407 ( E ), dated 8th November, 2016

1 Shakti Pumps LLC, USA

2 Shakti Pumps FZE , UAE Wholly Owned Subsidiary Companies

3 Shakti Pumps Pty Ltd. Australia

4 Shakti Irrigation India Limited Enterprise over Which Key management are able to exercise significant influence

5 Arsh Industrial Solutions Pvt. Ltd Enterprise over Which Relative of Key Mgt. able to exercise significant influence

6 Shakti Irrigation Private Limited Enterprise over Which Relative of Key Mgt. able to exercise significant influence

7 Vintex Tools Pvt. Ltd Enterprise over Which Relative of Key Mgt. are able to exercise significant influence

8 Shakti Energy Solutions Pvt.Ltd Enterprise over Which Relative of Key Mgt. are able to exercise significant influence

9 Dinesh Patidar

10 Sunil Patidar Key Managarial Personnel

11 Ramesh Patidar

3. FINANCIAL & DERIVATIVE INSTRUMENTS

a) Derivative Contract entered into by the company for hedging foreign currency related risks :

The Company has converted the term loan into Foreign currency term loan and in order to hedge foreign currency related risk the company has entered into currency swap contract. Nominal amount of derivative contracts entered into by the company and outstanding as on 31.03.2017 is detailed below :

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Mar 31, 2016

Note:

1. Figures in Brackets represent Cash Outflow

2. Previous Year Figures regrouped wherever necessary.

3. Borrowings from banks and ECB are secured by way of:-

Primary - All the curent assets of the company situated at Plot No. 1 Sector A, Pithampur Distt. Dhar, M.P, Plot No. F-14 & 15, Phase-I, Sector III SEZ, Pithampur and Plot No. 401,402 & 413, Sector III, Industrial Estate, Pithampur and Plot No.400 & 412A, Sector III, Industrial Estate, Pithampur, Dist. Dhar, M.P Collateral-All the fixed assets of the company situated at Plot No. 1 Sector A, Pithampur Distt. Dhar, M.P, Plot No. F-14 & 15, Phase-I, Sector III SEZ, Pithampur and Plot No. 401,402 & 413, Sector III, Industrial Estate, Pithampur and Plot No. 400 & 412A, Sector III, Industrial Estate, Pithampur, Dist. Dhar, M.P

4 Vehicle Loans are secured by respective vehicles.

5. Working Capital loans and packing credit are secured as below:

Primary - All the current assets of the company situated at Plot No. 1 Sector A, Pithampur Distt. Dhar, M.P, Plot No. F-14 & 15, Phase-I, Sector III SEZ, Pithampur and Plot No. 401,402 & 413, Sector III, Industrial Estate, Pithampur and Plot No.400 & 412A, Sector III, Industrial Estate, Pithampur, Dist.Dhar, M.P Collateral-All the fixed assets of the company situated at Plot No. 1 Sector A, Pithampur Distt. Dhar, M.P, Plot No. F-14 & 15, Phase-I, Sector III SEZ, Pithampur and Plot No. 401,402 & 413, Sector III, Industrial Estate, Pithampur and Plot No.400 & 412A, Sector III, Industrial Estate, Pithampur, Dist.Dhar, M.P

6. FINANCIAL & DERIVATIVE INSTRUMENTS

- Derivative Contract entered into by the company for hedging foreign currency related risks:

The Company has converted the term loan into foreign currency term loan and in order to hedge foreign currency related risk the company has entered into currency swap contract. Nominal amount of derivative contracts entered into by the company and outstanding as on 31.03.2016 is detailed below:

- Foreign Currency exposures that are not hedged by derivative instruments as on 31.03.2016 are as follows:

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Mar 31, 2015

1. Borrowings from banks and ECB are secured by way of

Primary - All the curent assets of the company situated at Plot No. 1 Ssector A, Pithampur Distt. Dhar, M.P., Plot No. F-14 & 15, Phase-I, Sector III SEZ, Pithampur and Plot No. 401,402 & 413, Sector III, Industrial Estate, Pithampur and Plot No.400 & 412A, Seector III, Industrial Estate, Pithampur, Dist. Dhar, M.P.

Collateral-All the fixed assets of the company situated at Plot No. 1 Ssector A, Pithampur Distt. Dhar, M.P., Plot No. F-14 & 15, Phase-I, Sector III SEZ, Pithampur and Plot No. 401, 402 & 413, Sector III, Industrial Estate, Pithampur and Plot No.400 & 412A, Seector III, Industrial Estate, Pithampur, Dist. Dhar, M.P.

2. Vehicle Loans are secured by respective vehicles.

3. Working Capital loans and packing credit are secured as below :

Primary - All the curent assets of the company situated at Plot No. 1 Ssector A, Pithampur Distt. Dhar, M.P., Plot No. F-14 & 15, Phase-I, Sector III SEZ, Pithampur and Plot No. 401, 402 & 413, Sector III, Industrial Estate, Pithampur and Plot No.400 & 412A, Sector III, Industrial Estate, Pithampur, Dist. Dhar, M.P.

Collateral - All the fixed assets of the company situated at Plot No. 1 Ssector A, Pithampur Distt. Dhar, M.P., Plot No. F-14 & 15, Phase-I, Sector III SEZ, Pithampur and Plot No. 401, 402 & 413, Sector III, Industrial Estate, Pithampur and Plot No.400 & 412A, Sector III, Industrial Estate, Pithampur, Dist. Dhar, M.P.

4.. RELATED PARTY DISCLOSURES (i) List of Related Parties

1 Shakti Pumps LLC, USA Wholly Owned Subsidiary Companies

2 Shakti Pumps FZE, UAE

3 Shakti Pumps Pty Ltd. Australia

4 Shakti Irrigation India Limited Enterprise over Which Key management are able to exercise significant influence

5 Vintex Tools Pvt. Ltd Enterprise over Which Relative of Key management are able to exercise significant influence

6 Shakti Energy Solutions Pvt. Ltd Enterprise over Which Relative of Key management are able to exercise significant influence

7 Dinesh Patidar

8 Sunil Patidar Key Managarial Personnel

9 Ramesh Patidar

5.. CONTINGENT LIABILITIES AND COMMITMENTS

1 Bank Guarantee Outstanding 386.14

2 Unexpired Letter of Credit 1724.45

3 Excise Demand Under Dispute 47.70

4 Commercial Tax Demand under Dispute 93.29

5 Income Tax Demand Under Dispute 272.18

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Mar 31, 2014

1.1 180200 Shares out of Issued Share are forfeited by the company which has not been reissued.

1.2 Borrowing from banks and ECB are secured by way of :- Primary - All the current assets of the company situated at Plot No. 1 Sector A, Pithampur Dist. Dhar, M.P., Plot No. F-14 & 15, Phase-I, Sector III SEZ, Pithampur and Plot No. 401,402 & 413, Sector III, Industrial Estate, Pithampur and Plot No.400 & 412A, Sector III, Industrial Estate, Pithampur, Dist. Dhar, M.P.

Collateral-All the fixed assets of the company situated at Plot No. 1 Sector A, Pithampur Dist. Dhar, M.P., Plot No. F-14 & 15 , Phase-I, Sector III SEZ, Pithampur and Plot No. 401,402 & 413, Sector III, Industrial Estate, Pithampur and Plot No.400 & 412A, Sector III, Industrial Estate, Pithampur, Dist. Dhar, M.P.

2.1 Working Capital loans and packing credit are secured as below : Primary - All the current assets of the company situated at Plot No. 1 Sector A, Pithampur, Dist. Dhar, M.P., Plot No. F-14 & 15, Phase-I, Sector III SEZ, Pithampur and Plot No. 401,402 & 413, Sector III, Industrial Estate, Pithampur and Plot No.400 & 412A, Sector III, Industrial Estate, Pithampur, Dist. Dhar, M.P. Collateral-All the fixed assets of the company situated at Plot No. 1 Sector A, Pithampur, Dist. Dhar, M.P., Plot No. F-14 & 15, Phase-I, Sector III SEZ, Pithampur and Plot No. 401,402 & 413, Sector III, Industrial Estate, Pithampur and Plot No.400 & 412A, Sector III, Industrial Estate, Pithampur, Dist. Dhar, M.P.

2.2 Personal Guarantee of Directors & Others.

3 CONTINGENT LIABILITIES AND COMMITMENTS

S.No Particular (Amt. in Lakhs) As At 31.03.2014

1 Bank Guarantee Outstanding 106.65

2 Unexpired Letter of Credit 2008.31

3 Excise Demand Under Dispute 47.70

4 Income Tax Demand Under Dispute 165.51

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Mar 31, 2013

(Amount in lakhs)

As at As at Particulars March 31, 2013 March 31, 2012

01 CONTINGENT LIABLITIES AND COMITMENTS

1 Bank Guarantee Outstanding 103 210.49

2 Unexpired Letter of Credit 1404.83 1175.70

3 Excise Demand Under Dispute 47.7 47.70

4 Income Tax Demand Under Dispute 165.51

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Mar 31, 2012

1.1 Optionally Convertible Debenture are convertible in equity shares with in 18 months from the date of subscription.i.e. 20.04.2011. In case OCD's does not get converted into equity shares with in 18 months from the date of subscription it will be redeemed by the company at issue price plus 20% premium compounded annually from the date of issue of OCD's. OCD's are secured by way of pledge of 2400000 Shares of Directors.

1.2 Borrowings from banks are secured by way of :-

1.3.a First Pari-passu charge by way of hypothication of the company's stock comprising of raw materials, stoch in process, finished goods, consumable stores and spares and receivables & other current assets.

1.3.b First Pari-passu charge by way of Equitable Mortgage of the company's Land& Building situate at sector-A, Pithampur Industrial Area and Plot No.F-14 & F-15, SEZ , Phase-I, Sector III, Pithampur and Machinaries installed at Plot No. 401, 402 & 413, Sector III Industrial Area , Pithampur , District -Dhar.

1.3.c Personal Gurantee of Directors

1.4 External Commercial borrowings secured by way of :

1.4.a Second Pari-passu charge by way of Equitable Mortgage of the company's Land & Building situate at Sector- I, Pithampur and Plot No.F-14 & F-15,sEz, Pithampur and Plot No.401,402 & 413 and Plot.No.400 & 412 A, Industrial Area Sector III Pithampur , District -Dhar. (M.P.)

1.4.b First pari-passu charge by way of hypothication of the company's stock com- prising of raw materials, stock in process, finished goods, consumable stores and spares and receivables & other current assets.

2.1 Working Capital loans are secured by First Pari-Passu Charge by hypothecation of present and future stock of raw materials. stock in trade, finished goods, stores & spares, claims and book debts etc.

2.2 EPC limit is secured by of hypothecation of present and future stock of raw materials, stock intarde, finished goods, stores & spares, claims and book debts etc..

2.3 Vehicle Loan are secured by way of hypothecation of respective vehicles.

3 CONTINGENT LIABLITIES AND COMITMENTS (Rs. In Lakhs)

S. Particular As At As At No 31.03.2012 31.03.2011 1 Bank Guarantee Outstanding 210 118

2 Unexpired Letter of Credit 1176 1051.87 3 Excise Demand Under Dispute 48 48

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Mar 31, 2011

1. Debtors, Creditors, Sundry Deposits, Loan & Advances and other liabilities are subject to confirmation and reconciliation if any.

2. Management has informed that in the absence of information from suppliers of their status being Small/Ancillary undertaking amount overdue and interest payable thereon can not be quantified.

3. Segment Reporting:

The Company primarily engaged in the business of manufacturing of Energy Saving Stainless Steel Submersible Pumps and as such, there are no primary and secondary segments as per requirement of AS-17 issued by The Institute of Chartered Accountants of India on segment reporting.

4. Contingent liabilities are generally not provided for and disclosed by way of notes to the accounts:

(Rs. in Lakhs)

S. Particulars 31.03.2011 30.06.2010 No.

1 Bank Guarantee Outstanding 118.00 100.00

2 Unexpired Letter of Credit 539.35 485.57

3 Bills Discounted 0.00 30.78

4 Excise demand under dispute 47.70 52.06

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Jun 30, 2010

1. Debtors, Creditors, Sundry Deposits, Loan & Advances and other liabilities are subject to confirmation and reconciliation if any.

2. Management has informed that in the absence of information from suppliers of their status being Small/Ancillary undertaking amount overdue and interest payable thereon cannot be quantified.

3. Segment Reporting:

The Company primarily engaged in the business of manufacturing of Submersible Pumps and as such, there are no primary and secondary segments as per requirement of AS-17 issued by the Institute of Chartered Accountants of India on segment reporting.

4. Contingent liabilities are generally not provided for and are disclosed by way of notes to the accounts. (Rs.in Lacs)

Sn Particulars 30.06.2010 30.06.2009

1 Bank Guarantee Outstanding 100.00 56.72

2 Unexpired Letter of Credit 485.57 178.50

3 Bills Discounted 30.78 443.00

4 Excise demands under dispute 52.06 83.64