Notes to Accounts of Advance Metering Technology Ltd.

Mar 31, 2018

1. General Information

Advance Metering Technology Limited (“AMTL” or “the Company”) was incorporated on 7th February,2011 under the provisions of the Companies Act,1956. The Company operates in the Energy Sector and within the business segment Energy Generation, Energy Measurement and Energy Management. The Company is engaged in manufacturing and selling of Energy Meters, provides technical services relating to Energy Sector and in the business of Wind Power Generation through Wind Mills/ other renewable energy sources. Its shares are listed on Bombay Stock Exchange Limited.

The AMTL was incorporated as a Special Purpose Vehicle (SPV) to take over the Metering Division and proposed power generation business/undertakings of Eon Electric Limited (formerly Indo Asian Fuse gear Limited) as a going concern. The Hon’ble High Court for the States of Punjab & Haryana at Chandigarh vide its order dated 27th March 2012, has approved the Scheme of Arrangement ( ‘Scheme’ ) u/s 391 to 394 of the Companies Act,1956 between the Company and Eon electronic Limited ( Eon ) and their respective shareholders and creditors for demerger of the Metering Division and Power Generation Business ( “De-merged Undertaking”) of Eon and transfer/ vesting of the said undertaking in favour of AMTL with effect from Ist April 2011 ( Appointed Date) on going concern basis. The scheme become effective on 8th April 2012 ( Effective Date) on filling of the Certified True Copy of the said Order of the Hon’ble High Court with the Registrar of Companies, NCT of Delhi & Haryana.

These Financial statements are Standalone financial statements of the Company.

The financial statement were authorised for issue by the board of directors on 29 May 2018.

General Reserve

This represents appropriation of profit by the company.

Retained Earnings

This comprise company’s undistributed profit after taxes.

Capital Reserve

The capital reserve is created due to demerger of Metereing Division and proposed power generation business/ undertaking of EON electric Limited as a going concern to Advance Meter Technology Limited from EON.

2.1.1 Summary of borrowing arrangements

(i) Term Loan of Rs 277.44 lacs (31st March,2017: Rs. 278.39 lacs and 1 April,2016:Nil) from kotak bank are secured by land and repayable in 100 monthly instalments of Rs 4.17 lacs each upto June 2026. The interest rate of this loan is 10.25% p.a. Rs. 23.50 lacs of term loan payable in FY 2019-20, hence shown under current maturities of long term borrowings

(ii) Term Loan of Rs 301.44 lacs (31st March,2017: Rs. Nil and 1 April,2016:Nil) from kotak bank are secured by land and repayable in 120 monthly instalments of Rs 3.84 lacs each upto Feb 2028. The interest rate of this loan is 9% p.a. Rs. 19.73 lacs of term loan payable in FY 2018-19, hence shown under current maturities of long term borrowings

(iii) Vehicle loan of Rs 73.85 lacs ( 31st March,2017:Rs 114.89 lacs and 1 April, 2016: Rs 132.42 lacs) from ICICI bank and Rs 82.44 lacs ( 31st March,2017: Nil and 1 April, 2016: Nil ) from HDFC Bank are secured against vehicles respectively under vehicle hire purchase agreement. These obligations are repayable in monthly instalments up to Dec’22. The interest rate for these obligations ranges from 9.25% to 12.49% p.a. Rs. 59.52 lacs of vehicle loan payable in FY 2018-19, hence shown under current maturities of long term borrowings.

(iv) Equipment loans of Rs Nil (31st March,2017 : Rs 1.99 lacs and 1 April,2016 : Rs 13.42 lacs) from ICICI bank are secured against machinery respectively. These obligations are repayable in monthly instalments up to May’2017. The interest rate for these obligations is 10.75% p.a.

(v) The rate of interest on the working capital loans from banks ranges between 9% p.a. to 10.5% p.a. depending upon the prime lending rate of the banks wherever applicable and the interest rate spread agreed with the banks. Details of security given for short-term borrowings are as under:

- Overdraft facility from ICICI bank of Rs. 387.23 lacs and RBL bank of Rs 5153.70 lacs are secured against mutual funds.

- Working capital facility of Rs.157.56 lacs from SBI bank are secured against Immovable property (Land) at Jhalandhar, current assets and movable fixed assets.

- Overdraft facility of Rs.518.89 lacs from SBI bank are secured against fixed deposits.

3. Other Notes

(i) In the opinion of the Board, the current assets, loans and advances are approximately of the value stated, if realised, in the ordinary course of business. The provision of depreciation and all known liabilities are adequate and not in excess of the amount reasonably necessary.

(ii) The balances of debtors, advances and creditors are subject to confirmation in some cases.

(iii) The Company has paid annual listing fees to BSE Limited where its equity shares are listed.

4. Employee Benefits

A Defined Contribution plans

The Company has recognised Rs. 19.32 lakhs in statement of profit and loss as Company’s contribution to provident fund, Rs13.75 lakhs and Rs 7.52 lakhs as Company’s contribution to Employees State Insurance scheme.

B.1. Defined Benefit plans-Gratuity

i. The principal assumptions used for the purpose of the actuarial valuation were as follows:

Sensitivities due to mortality and withdrawals are not material & hence impact of change not calculated.

Sensitivities as to rate of inflation, rate of increase of pensions in payment, rate of increase of pensions before retirement & life expectancy are not applicable being a lump sum benefit on retirement.

xi. The estimates of future salary increase considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors. The above information is certified by the actuary and relied upon by the auditors.

Sensitivities due to mortality and withdrawals are not material & hence impact of change not calculated.

Sensitivities as to rate of inflation, rate of increase of pensions in payment, rate of increase of pensions before retirement & life expectancy are not applicable being a lump sum benefit on retirement.

viii. The estimates of future salary increase considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors. The above information is certified by the actuary and relied upon by the auditors.

5. Segment Reporting Identification of Segments

The Board of Directors of the Company has been identified as Chief Operation Decision Maker who monitors the operating results of its business segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. Accounting policy in respect of segments is in conformity with accounting policy of the company as a whole.

The Company’s operations have been categorized into the following business segment:-

Meter & Others includes manufacturing of Energy Meter and Technical Consultancy on energy savings.

Power Generation includes generation of electricity from Wind.

There are no geographical segments as the operations of the Company’s existing business segments take place in India only.

Segment Revenue & Results

The Revenue and Expenditures in relation to the respective segments have been identified and allocated to the extent possible. Other revenue and expenditures non allocable to specific segments are disclosed separately as unallocated and adjusted directly against total income of the Company.

Segment Assets & Liabilities

Segment Assets includes all operating assets used by the operating segment and mainly consisting property, plant & equipment, trade receivables, cash and cash equivalents and inventory etc. Segment Liabilities primarily include trade payables and other liabilities. Common assets & liabilities which can not be allocated to specific segments are shown as a part of unallocable assets/liabilities.

6. Capital Management

The Company manages its capital to ensure that the entities in the Company will be able to continue as going concern while maximizing the return to shareholders and also complying with the ratios stipulated in the loan agreements through the optimization of the debt and equity balance.

The capital structure of the Company consists of net debt (borrowings as detailed in note 14 offset by cash and bank balances as detailed in note 10 and 11) and total equity of the Company.

The Company is not subject to any externally imposed capital requirements.

The Company monitors capital on the basis of following gearing ratio, which is net debt divided by total equity

Loan Covenants

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to call loans and borrowings or charge some penal interest. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the current years and previous years.

7.1 Gearing ratio

The gearing ratio at the end of the reporting period was as follows:

Note:

i. Debt is defined as long and short-term borrowings (excluding derivative, financial guarantee contracts), as described in note 14.

7.2 Dividends

The company has not declared dividend on equity share for the year ended March 31, 2018. (PY Nil)

8. Fair Value Measurement

(i) Fair Value Hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (A) recognised and measured at fair value and (B) measured at amortised cost and for which fair values are disclosed in financial statements. To provide an indication about the reliability of inputs used in determining fair values, the group has classified its financial instruments into three levels prescribed under the accounting standards.

The following table provides the fair value measurement hierarchy of Company’s asset and liabilities, grouped into Level 1 to Level 3 as described below :-

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

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

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

(ii) Valuation techniques used to determine Fair value

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Specific valuation technique used to value financial instrument includes:

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

- the fair value of financial assets and liabilities at amortised cost is determined using discounted cash flow analysis The following method and assumptions are used to estimate fair values:

The Carrying amounts of trade receivables, trade payables, capital creditors, cash and cash equivalents, short term deposits etc. are considered to be their fair value , due to their short term nature

Long-term fixed-rate and variable-rate receivables / borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. For borrowing fair value is determined by using the discounted cash flow (DCF) method using discount rate that reflects the issuer’s borrowings rate. Risk of non-performance for the company is considered to be insignificant in valuation.

Financial assets and liabilities measured at fair value and the carrying amount is the fair value.

9. Financial risk management

The Company’s activities expose it to a variety of financial risks which includes market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company’s focus is to ensure liquidity which is sufficient to meet the Company’s operational requirements. The Company monitors and manages key financial risks so as to minimise potential adverse effects on its financial performance. The Company has a risk management policy which covers the risks associated with the financial assets and liabilities. The details for managing each of these risks are summarised ahead.

9.1 Market risk

Market risk is the risk that the expected cash flows or fair value of a financial instrument could change owing to changes in market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity price risk. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments.

9.2 Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company does not operates internationally but has foreign currency trade payables and receivables and is therefore, exposed to foreign exchange risk. Exposure is very limited as compared to the size of the company, thus there is very nominal risk due to foreign currency risk.

The carrying amounts of the company’s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows.

Foreign currency sensitivity analysis

The following table details the company’s sensitivity to a 10% increase and decrease in the INR against the relevant outstanding foreign currency denominated monetary items. 10% sensitivity indicates management’s assessment of the reasonable possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates. A positive number below indicates an increase in profit or equity where Rupee appreciates 10% against the relevant currency. A negative number below indicates a decrease in profit or equity where the Rupee depreciates 10% against the relevant currency.

In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year.

9.3 Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the Company’s position with regard to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of the fixed rate and floating rate financial instruments in its total portfolio.

(iii) Sensitivity

Interest rate sensitivity analysis

The sensitivity analyses below have been determined based on the exposure to interest rates for both derivatives and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease represents management’s assessment of the reasonably possible change in interest rates.

9.4 Other price risks

The company’s exposure to price risk arises from the investment held by the company . To manage its price risk arising from investments in marketable securities, the company diversifies its portfolio and is done in accordance with the company policy. The company’s major investments are actively traded in markets and are held for short period of time. Therefore no sensitivity is provided for the same.

9.5 Credit risk management

Credit risk arises from the possibility that the counterparty will default on its contractual obligations resulting in financial loss to the company. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, current economic trends, and analysis of historical bad debts and ageing of accounts receivable.

The Company considers the probability of default upon initial recognition of assets and whether there has been a significant increase in credit risk on an on going basis through each reporting period. To assess whether there is significant increase in credit risk, it considers reasonable and supportive forward 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 obligation

(iv) Significant increase in credit risk an other financial instruments of the same counterparty

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

The company major exposure is from trade receivables, which are unsecured and derived from external customers. Credit risk on cash and cash equivalents is limited as we generally invest in deposits with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies. Investments primarily include investment in liquid mutual fund units, quoted securities and certificates of deposit which are funds deposited at a bank for a specified time period.

Expected credit loss for trade receivable on simplified approach:

The Company uses a provision matrix to determine impairment loss on portfolio of its trade receivable. The provision matrix is based on its historically observed default data over the expected life of the trade receivable and is adjusted for forward- looking estimates. At every reporting date, the historical observed default rates are updated and changes in forward-looking estimates are analysed. In case of probability of non collection, default rate is 100%.

9.6 Liquidity Risk

Liquidity risk is defined as the risk that company will not be able to settle or meet its obligation on time or at a reasonable price. The Company’s objective is to at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company’s management is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risk are overseen by senior management. Management monitors the company’s net liquidity position through rolling, forecast on the basis of expected cash flows.

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments:

10. Transition to Ind AS

These financial statements for the year ended March 31,2018 are the first Ind AS financials prepared in accoradnce with Ind AS notified under Companies (Indian Accounting Standards) Rules, 2015. The adoption of Ind AS was carried out in accordance with Ind AS 101, using April 1, 2016 as the transition date. Ind AS 101 requires that all Ind AS standards and interpretations that are effective for the Ind AS financial statements for year ended March 31, 2018, be applied consistently and retrospectively for all fiscal years presented. All applicable Ind AS have been applied consistently and retrospectively wherever required.

For the periods upto and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with the accounting standards notified under section 133 of the Companies Act 2013, read together with Paragraph 7 of the Companies(Accounts) Rules,2014(Indian GAAP).

Accordingly, the Company has prepared its financial statement to comply with the Ind AS for the year ending March 31, 2018, together with the comparative date as at and for the year ended March 31, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, Company’s opening balance sheet was prepared as at April 01, 2016, the date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at April 01, 2016 and the financial statements as at and for the year ended March 31, 2017.

10.1 Exemptions and Exceptions opted by the Company on the date of transition:-

Ind AS 101 allows first-time adopters certain exemptions and exceptions from the retrospective application of certain requirements under Ind AS. The Compnay has applied the following exemptions and exceptions:

a) Exemptions and Exceptions from retrospective application

1. The Company has elected not to apply Ind AS 103- Business Combinations, retrospectively to past business combinations that occurred before April 01, 2016. Consequent to use of this exemption from retrospective application:

i) The carrying amount of assets and liabilities acquired pursuant to past business combinations and recognised in the financial statements prepared under Previous GAAP, are considered to be the deemed cost under Ind AS, on the date of acquisition. After the date of acquisition, measurement of such assets and liabilities is in accordance with respective Ind AS. Also, there is no change in classification of such assets and liabilities;

ii) The Company had not recognised assets and liabilities that neither were recognised in the financial statements prepared under Previous GAAP nor qualify for recognition under Ind AS in the Balance Sheet of the acquiree;

iii) The Company had excluded from its opening Balance Sheet (As at April 1, 2016), those assets and liabilities which were recognised in accordance with Previous GAAP but do not qualify for recognition as an asset or liability under Ind AS.

2 The Company has elected to continue with carrying value of all Property, plant and equipment under the previous GAAP as deemed cost as at the transition date i.e. April 01, 2016. Under the previous GAAP, Property, plant and equipment were stated at their original cost (net of accumulated depreciation, amortization and impairment), if any, adjusted by revaluation of certain assets.

The Company has elected to continue with the carrying value of Capital work in progress as recognized under the previous GAAP as deemed cost as at the transition date.

The Company has elected to continue with the carrying value for intangible assets (computer softwares) as recognized under the previous GAAP as deemed cost as at the transition date. Under the previous GAAP, Computer Software was stated at its original cost, net of accumulated amortization.

3. The Company has elected to continue with carrying value of all investments in its subsidiaries under the previous GAAP as deemed cost as at the transition date i.e. April 01, 2016.

4. Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. However, the Company has used Ind AS 101 exemption and assessed all arrangements for embedded leases based on conditions in place as at the date of transition.

b) Estimates

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

11. Reconciliation between balance sheet, statement of profit and loss and cash flow statement prepared under previous IGAAP and those presented under Ind AS

(a) Effect of Ind AS adoption on the Balance Sheet as at March 31, 2017

12. Notes to the first time adoption of Ind AS

1) Fair Value of Investments

Under the previous GAAP, Long term investments were carried at cost less provision for permanent diminution in the value of such investment. Current investment were carried at cost . Under IND As they are required to be measured at fair value

a) Under Ind AS, financial assets and financial liabilities designated at fair value through profit and loss (FVTPL) are fair valued at each reporting date with changes in fair value recognized in the statement of profit and loss. Mutual fund investments have been classified as FVTPL.

2) Fair valuation as deemed cost for Property, Plant and Equipment

The Company has elected to measure certain items of its Property, Plant and Equipment and its related intangible assets at its fair value and use that fair value as its deemed cost at the date of transition to Ind AS

3) Leasehold land

As per IND AS 17 Leasehold land are amortised over the primary period of lease

4) Defined benefit liabilities

Under previous GAAP, actuarial gains and losses were recognised in the statement of profit and loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability/ asset which is recognised in other comprehensive income. Consequently, the tax effect of the same has also been recognised in other comprehensive income under Ind AS instead of the statement of profit and loss.

5) Provision for expected credit losses

Under Previous GAAP, such estimates were determined based on experience of historic losses on such contracts.

Impairment for trade receivable is measured in Ind AS based on life time expected credit losses. Expected credit loss allowance is measured based on historical credit loss experience, defaults, bankruptcy and forward looking information where relevant adjusted for probability of recovery. Under Previous GAAP, provision for trade receivable is measured based on factors such as age of receivables, defaults etc. adjusted for probability of recovery.

6) Security Deposits

Under previous GAAP, security deposits were recognised based on historical cost. However under Ind AS, the same has been accounted for as per amortised cost using effective interest rate. Accordingly interest income on such deposits has been recognised as part of other income and unwinding of security deposits has been amortised as a part of expenses.

7) Sale of goods

Under Indian GAAP, sale of goods was presented as net of excise duty. However, under Ind AS, sale of goods includes excise duty. Excise duty on sale of goods is presented as a part of other expenses in statement of profit and loss.

13. Recent Accounting Pronouncements

Appendix B to Ind AS 21, Foreign currency transactions and advance consideration: On March 28, 2018, Ministry of Corporate Affairs (“MCA”) has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency.The amendment will come into force from April 1, 2018. The Company is evaluating the effect of this on the financial statements.

Ind AS 115- Revenue from Contract with Customers: On March 28, 2018, Ministry of Corporate Affairs (“MCA”) has notified the Ind AS 115, Revenue from Contract with Customer The core principle of the new standard is that an entity should recognize 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 or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts with customers.

The standard permits two possible methods of transition:

- Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8- Accounting Policies, Changes in Accounting Estimates and Errors

- Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch - up approach)

The effective date for adoption of Ind AS 115 is financial periods beginning on or after April 1, 2018.

The Company will adopt the standard on April 1, 2018 by using the cumulative catch-up transition method and accordingly comparatives for the year ending or ended March 31, 2018 will not be retrospectively adjusted. The Company is evaluating the effect on adoption of Ind AS 115.

14. The previous year’s including figures as on the date of transition have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year including figures as at the date of transition are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

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Mar 31, 2016

1 The rights, preferences and restrictions attached to each class of shares including restrictions on the distribution of dividends and the repayment of capital are as under:

The Company has only one class of equity shares having a par value of Rs.5 per share. Each share holder is entitled to one vote per share. The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, the holders of the equity shares will be entitled to receive the remaining assets of the company, after distribution of all the preferential amounts. The distribution will be in proportion to the number of equity shares held by each of the equity share holders.

2 During the current year and in the previous year, there have been no movements in the number of outstanding equity shares.

3. No shares have been allotted as fully paid up pursuant to contract(s) without payment being received in cash, bonus shares and shares bought back for the period of five years immediately preceding the reporting date.

4 There is no other information required to be disclosed in respect to share capital.

5 Contingent Liabilities and Commitments:

a. Contingent Liabilities

i) Bank Guarantees- Rs1, 16, 61,182 (Previous Year Rs 40, 08,300)

ii) Standby Letter of Credit (SBLC ) issued by Barclays bank on behalf of Advance Metering Technology Ltd for Global Power and Trading (GPAT) PTE Ltd, Singapore for USD 200,000 (Previous Year USD 200,000) for purpose of Business Transactions

b. Commitments

Capital Commitments (Net of Advance) Rs Nil (Previous year Rs 4, 77,575)

6 Provision for income tax has been made without considering some taxes and amounts which will be paid before filling of Income Tax Return as provided under section 43-B of the Income Tax Act, 1961.

7 In the opinion of the Board, the current assets, loans and advances are approximately of the value stated, if realized, in the ordinary course of business. The provision of depreciation and all known liabilities are adequate and not in excess of the amount reasonably necessary.

8 The balances of debtors, advances and creditors are subject to confirmation in some cases.

9 The Company has paid annual listing fees to Bombay Stock Exchange Limited and National Stock Exchange of India Limited where its equity shares are listed.

10 Information of Segment Reporting of the Company for the Year Ended 31st March 2016 Business Segments

In accordance with Accounting Standard (AS) 17 “Segment Reporting" , the Company''s operations have been categorized into the following business segment:-

Meter & Others includes manufacturing of Energy Meter and Technical Consultancy on energy savings.

Power Generation includes generation of electricity from Wind

Segment Revenue relating to each of the above business segments includes Other Income, where applicable

The above business segments have been identified considering:

a) The nature of products and services;

b) The differing risk and returns;

c) The organization structure, and

d) The internal financial reporting systems.

There are no geographical segments as the operations of the Company''s existing business segments take place in India only.

Notes:-

i. Segment result represents Profit/(loss) before Interest and Tax.

ii. Capital Expenditure pertains to gross additions made to the Fixed Assets during the year including capital work in progress.

iii. Segment Assets includes Fixed Assets, Current Assets and Loan and Advances directly attributable to respective business segments.

iv. Segmental Liabilities include Current Liabilities and Provisions directly attributable to respective business segments.

v. The accounting polices used to derive reportable segment results are consistent with those described in the "Significant Accounting Policies" being note no. 2 to the financial statements.

vi. Information’s about Business Segments

37 Related Party Disclosures

Disclosures as required by Accounting Standard (AS-18) "Related Party Disclosures" are given below:

A. Subsidiary Companies

PKR Energy Ltd. - wholly owned subsidiary

Global Power and Trading PTE Ltd., Singapore - subsidiary

Advance Power and Trading GMBH., Germany - wholly owned subsidiary

R. S. Info systems Private Limited - subsidiary (till 13th May 2014)

B. Investing Parties with whom the company is a JV Partner

Saudi National Lamps and Electrical Company Limited - ceased to be a Joint Venture with effect from 24th January 2014.

C. Directors, Key Management Personnel

Mr. Pranav Kumar Ranade - Chairman cum Managing Director

Mr. Vikram Ranade - Executive Director

Mr. Prashant Ranade - Executive Director

D. Relatives of Directors, Key Management Personnel

Mrs. Ameeta Ranade (Wife of Mr. Pranav Kumar Ranade)

Mrs. Ashima Ranade (Wife of Mr. Vikram Ranade)

Mrs. Natasha Tara Ranade (Wife of Mr. Prashant Ranade)

E. Enterprises over which directors exercise significant influence PKR Infrastructure Private Limited

PKR Technologies Private Limited

Renewable Power Venture Private Limited (Formerly Known as PKR Power Private Limited) R.S.Infosystems Private Limited

F. LLP firms in which directors and their relatives are partners

PKR Hitech Industrial Corporation LLP Industrial Solutions Corporation LLP

11. The Company is engaged in the business of manufacturing of energy meters. However, maintenance of cost records and cost audit is not applicable on the Company in view of Section 148 of the Companies Act, 2013 read with Companies (Cost Records and Audit) Rules, 2014.

12. Financial Reporting of Interests in Joint Venture

Company had a joint venture share of interest of 20% in Saudi National Lamps and Electricals Company Limited, Saudi Arabia that has been terminated during the previous year ended on 31st March 2014. As at the date of termination, the Company had following in the said joint venture

- Investment in share capital - Rs 25,732,351

- Receivables - Rs.42, 754,347

In the opinion of the management of the Company, the aforesaid investment stands impaired and needs to be written off subject to regulatory approvals. Therefore, the Company has made the provision of 99% of value thereof as under- for investment in share capital of Rs 25,475,027 in earlier years

- For receivables of Rs. 42,326,804 in earlier years

As the joint venture stands terminated, no additional disclosures as per Accounting Standard (AS) 27- ''Financial Reporting of Interest in Joint Venture'' are made.

The material consumption by R&D is reflected in group manufacturing expenses under a\c head ''Research & Development Expenditure.

13 There is no other material item that needs to be disclosed in accordance with Listing Agreement/ Companies Act, 2013.

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Mar 31, 2015

Company Overview :

1 Advance Metering Technology Limited ("AMTL" or "the Company") was incorporated on 7th February,2011 under the provisions of the Companies Act,1956. The Company operates in the Energy Sector and within the business segment Energy Generation, Energy Measurement and Energy Management. The Company is engaged in manufacturing and selling of Energy Meters, provides technical services relating to Energy Sector and in the business of Wind Power Generation through Wind Mills/ other renewable energy sources.Its shares are listed on the National Stock Exchange of India Limited and Bombay Stock Exchamge Limited.

The AMTL was incorporated as a Special Purpose Vehicle (SPV) to take over the Metering Division and proposed power generation business/undertakings of Eon Electric Limited ( formerly Indo Asian Fusegear Limited) as a going concern. The Hon'ble High Court for the States of Punjab & Haryana at Chandigarh vide its order dated 27th March 2012, has approved the Scheme of Arrangement ( 'Seheme' ) u/s 391 to 394 of the Companies Act,1956 between the Company and Eon electronic Limited ( Eon ) and their respective shareholders and creditors for demerger of the Metering Division and Power Generation Business ( "De-merged Undertaking") of Eon and transfer/ vesting of the said undertaking in favour of AMTL with effect from Ist April 2011 ( Apponited Date) on going concern basis. The scheme become effective on 8th April 2012 ( Effective Date) on filling of the Certified True Copy of the said Order of the Hon'ble High Court with the Registrar of Companies, NCT of Delhi & Haryana.

2.1 Terms/rights attached to the Equity Shares

2.1 (a) The Company now has only one class of equity shares having a par value of Rs 5 per share since the record date consequent to the scheme of arrangement. Each holder of equity shares is entitled to one vote per share. The Company declares and pay dividend in Indian rupees. The Board of Directors has not prescribed any dividend for the year ( Previous Year Nil ).

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

3.2 There is no other information required to be disclosed in respect to share capital.

4.1 Represents the provision made for dimunation in the value of receivables of Rs Nil (Previous Year Rs 31,070,351) in Saudi National Lamps and Electrical Company Limited.

4.2 Represents the provision made for dimunation in the value of Investment of Rs Nil (Previous Year Rs 25,475,027) in Saudi National Lamps and Electrical Company Limited.

5 Contingent Liabilities and Commitments:

a. Contingent Liabilities

I) Bank Guarantees- Rs 4,008,300 (Previous Year Rs 706,000)

ii) Guarantees to Bank and others on behalf of earstwhile Joint Venture Company for Rs Nil, (Previous year Rs Nil ).

iii) Standby Letter of Credit (SBLC) issued by Barclays Bank on behalf of Advance Metering Technology Limited for Global Power and Trading (GPAT) PTE Ltd., Singapore for USD 200,000 (Previous Year USD 200,000) for purpose of business transactions.

b. Commitments

Capital Commitments (net of advance) Rs 477,575 (Previous year Rs 4,054,768)

6 Provision for income tax has been made without considering some taxes and amounts which will be paid before filling of Income Tax Return as provided under section 43-B of the Income Tax Act, 1961.

7 In the opinion of the Board, the current assets, loans and advances are approximately of the value stated, if realised, in the ordinary course of business. The provision of depreciation and all known liabilities are adequate and not in excess of the amount reasonably necessary.

8 The balances of debtors, advances and creditors are subject to confirmation in some cases.

9 The Company has paid annual listing fees to Bombay Stock Exchange Limited and National Stock Exchange of India Limited where its equity shares are listed.

10 Information of Segment Reporting of the Company for the Year Ended 31st March 2014 Business Segments

In accordance with Accounting Standard (AS) 17 "Segment Reporting", the Company's operations have been categorised into the following business segment:-

Meter & Others includes manufacturing of Energy Meter and Technical Consultancy on energy savings.

Power Generation includes generation of electrcity from Wind

Segment Revenue relating to each of the above business segments includes Other Income, where applicable The above business segments have been identified considering:

a) the nature of products and services;

b) the differing risk and returns;

c) the organisation structure, and

d) the internal financial reporting systems.

There are no geographical segments as the operations of the Company's existing business segments take place in India only.

Notes:-

i. Segment result represents Profit/(loss) before Interest and Tax.

ii. Capital Expenditure pertains to gross additions made to the Fixed Assets during the year including capital work in progress.

iii. Segment Assets includes Fixed Assets, Current Assets and Loan and Advances directly attributable to respective business segments.

iv. Segmental Liabilities include Current Liabilities and Provisions directly attributable to respective business segments.

v. The accounting polices used to derive reportable segment results are consistent with those described in the "Significant Accounting Policies" being note no. 2 to the financial statements.

11 Related Party Disclosures

Disclosures as required by Accounting Standard (AS-18) "Related Party Disclosures" are given below:

A. Subsidiary Companies

PKR Energy Ltd. - wholly owned subsidiary

Global Power and Trading (GPAT) PTE Ltd., Singapore - subsidiary

Advance Power and Trading GMBH., Germany - wholly owned subsidiary

B. Investing Parties with whom the company is a JV Partner

Saudi National Lamps and Electrical Company Limited - ceased to be a Joint Venture with effect from 21st January 2014.

C. Directors, Key Management Personnel

Mr. Pranav Kumar Ranade - Chairman cum Managing Director

Mr. Vikram Ranade - Executive Director

Mr. Prashant Ranade - Executive Director

Mr. Ravinder Singh - Chief Financial Officer

Mr. Rakesh Dhody - AVP-Corporate Affairs & Company Secretary

D. Relatives of Directors, Key Management Personnel

Mrs. Ameeta Ranade ( Wife of Mr. Pranav Kumar Ranade)

Mrs. Ashima Ranade ( Wife of Mr. Vikram Ranade )

Mrs. Natasha Tara Ranade ( Wife of Mr. Prashant Ranade )

E. Enterprises over which directors exercise significant influence PKR Infrastructure Private Limited

PKR Technologies Private Limited PKR Power Private Limited RS Infosystems Pvt Ltd

F. LLP firms in which directors and their relatives are partners

PKR Hitech Industrial Corporation LLP Circular Industrial Corporation LLP

12 Operating leases:

a) The company had taken commercial premises under cancellable operating lease. These lease agreements provided an option to the Company to renew the lease period at the end of the expiry. There were no exceptionas/restrictive covenants in the lease agreement.The Company had terminated these lease agreements during the year.There are no further disclosure requirements in this regard.

b) Lease Payments under an operating lease are recognised as an expense in the statement of Profit & Loss on a straight line basis over the lease term, Accordingly Rs 4,406,014 has been charged to Statement of Profit and Loss during the year (Previous year Rs. Rs 8,492,722)

13 The Company is engaged in the business of manufacturing of energy meters. However, maintenance of cost records and cost audit is not applicable on the Company in view of Section 148 of the Companies Act, 2013 read with Companies (cost records and audit) Rules, 2014.

14 Financial Reporting of Interests in Joint Venture Company had a joint venture share of interest of 20% in Saudi National Lamps and Electricals Company Limited, Saudi Arabia that has been terminated during the previous year ended on 31st March 2014. As at the date of termination, the Company had following in the said joint venture

- Investment in share capital - Rs 25,732,351

- Receivables - Rs.42,754,347

In the opinion of the management of the Company, the aforesaid investment stands impaired and needs to be written off subject to regulatory approvals. Therefore, the Company has made the provision of 99% of value thereof as under- - for investment in share capital of Rs. Nil, previous year (Rs 25,475,027 ).

- for receivables of Rs.Nil previous year ( Rs. 42,326,804 )

As the joint venture stands terminated, no additional disclosures as per Accounting Standard (AS) 27- 'Financial Reporting of Interest in Joint Venture' are made.

15 There is no other material item that needs to be disclosed in accordance with Listing Agreement/ Companies Act, 2013.

---

Mar 31, 2014

Company Overview :

1 Advance Metering Technology Limited ("AMTL" or "the Company") was incorporated on 7th February,2011 under the provisions of the Companies Act,1956. The Company operates in the Energy Sector and within the business segment Energy Generation, Energy Measurement and Energy Management. The Company is engaged in manufacturing and selling of Energy Meters, provides technical services relating to Energy Sector and in the business of Wind Power Generation through Wind Mills/ other renewable energy sources. Its shares are listed on the National Stock Exchange of India Limited and Bombay Stock Exchange Limited.

The AMTL was incorporated as a Special Purpose Vehicle (SPV) to take over the Metering Division and proposed power generation business/undertakings of Eon Electric Limited ( formerly Indo Asian Fusegear Limited) as a going concern. The Hon''ble High Court for the States of Punjab & Haryana at Chandigarh vide its order dated 27th March 2012, has approved the Scheme of Arrangement ( ''Seheme'' ) u/s 391 to 394 of the Companies Act,1956 between the Company and Eon electronic Limited ( Eon ) and their respective shareholders and creditors for demerger of the Metering Division and Power Generation Business ( "De-merged Undertaking") of Eon and transfer/ vesting of the said undertaking in favour of AMTL with effect from Ist April 2011 ( Apponited Date) on going concern basis. The scheme become effective on 8th April 2012 ( Effective Date) on filling of the Certified True Copy of the said Order of the Hon''ble High Court with the Registrar of Companies, NCT of Delhi & Haryana.

1.1 Reconciliation of the number of Shares outstanding at the beginning and at the end of year

1.2 Terms/rights attached to the Equity Shares

1.3 (a) The Company had a class of equity shares having a par value of Rs 10 per share in the preceding year ending 31st March 2013 which has been extinguished consequent to the scheme of arrangement on record date. Each holder of equity shares was entitled to one vote per share.

1.4 (b) The Company now has only one class of equity shares having a par value of Rs 5 per share since the record date consequent to the scheme of arrangement. Each holder of equity shares is entitled to one vote per share. The Company declares and pay dividend in Indian rupees. The Board of Directors has not prescribed any dividend for the year ( Previous Year Nil ).

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

1.5 Margin Money Deposits are kept with banks against issuance of Bank Guarantees and Letter of Credit.

1.6 Represents the provision made for dimunation in the value of receivables of Rs 31,070,351 (Previous Year Rs 11,256,453) in Saudi National Lamps and Electrical Company Limited.

1.7 Represents the provision made for dimunation in the value of Investment of Rs 25,475,027 (Previous Year Rs Nil) in Saudi National Lamps and Electrical Company Limited.

2 Contingent Liabilities and Commitments:

a. Contingent Liabilities

i) Bank Guarantees- Rs 706,000 (Previous Year Rs 1,000,000)

ii) Guarantees to Bank and others on behalf of earstwhile Joint Venture Company for Rs Nil, (Previous year Rs.54,416,548 (SR 3,759,347)).

b. Commitments

Capital Commitments (net of advance) Rs 4,054,768 (Previous year Rs 275,380)

3 Provision for income tax has been made without considering some taxes and amounts which will be paid before filling of Income Tax Return as provided under section 43-B of the Income Tax Act, 1961.

4 In the opinion of the Board, the current assets, loans and advances are approximately of the value stated, if realised, in the ordinary course of business. The provision of depreciation and all known liabilities are adequate and not in excess of the amount reasonably necessary.

5 The balances of debtors, advances and creditors are subject to confirmation in some cases.

6 The Company has paid annual listing fees to Bombay Stock Exchange Limited and National Stock Exchange of India Limited where its equity shares are listed.

7 Information of Segment Reporting of the Company for the Year Ended 31st March 2014 Business Segments

In accordance with Accounting Standard (AS) 17 " Segment Reporting" , the Company''s operations have been categorised into the following business segment:-

Meter & Others includes manufacturing of Energy Meter and Technical Consultancy on energy savings.

Power Generation includes generation of electricity from Wind

Segment Revenue relating to each of the above business segments includes Other Income, where applicable The above business segments have been identified considering:

a) the nature of products and services;

b) the differing risk and returns;

c) the organisation structure, and

d) the internal financial reporting systems.

There are no geographical segments as the operations of the Company''s existing business segments take place in India only.

Notes:-

i. Segment result represents Profit/(loss) before Interest and Tax.

ii. Capital Expenditure pertains to gross additions made to the Fixed Assets during the year including capital work in progress.

iii. Segment Assets includes Fixed Assets, Current Assets and Loan and Advances directly attributable to respective business segments.

iv. Segmental Liabilities include Current Liabilities and Provisions directly attributable to respective business segments.

v. The accounting polices used to derive reportable segment results are consistent with those described in the "Significant Accounting Policies" being note no. 2 to the financial statements.

8 Related Party Disclosures

Disclosures as required by Accounting Standard (AS-18) "Related Party Disclosures" are given below:

A. Subsidiary Companies

PKR Energy Ltd. - wholly owned subsidiary

Global Power and Trading PTE Ltd., Singapore - wholly owned subsidiary Advance Power and Trading GMBH., Germany - wholly owned subsidiary RS Infosystems Pvt Ltd. - subsidiary with effect from 19th July 2013

B. Investing Parties with whom the company is a JV Partner

Saudi National Lamps and Electrical Company Limited - ceased to be a Joint Venture with effect from 24th January 2014.

C. Directors, Key Management Personnel

Mr. Pranav Kumar Ranade - Chairment cum Managing Director

Mr. Vikram Ranade - Executive Director

Mr. Prashant Ranade - Executive Director

D. Relatives of Directors, Key Management Personnel

Mrs. Ameeta Ranade ( Wife of Mr. Pranav Kumar Ranade)

Mrs. Ashima Ranade ( Wife of Mr. Vikram Ranade )

Mrs. Natasha Tara Ranade ( Wife of Mr. Prashant Ranade )

E. Enterprises over which directors exercise significant influence PKR Infrastructure Private Limited

PKR Technologies Private Limited PKR Power Private Limited

F. LLP firms in which directors and their relatives are partners

PKR Hitech Industrial Corporation LLP

9 Operating leases:

a) The company has taken commercial premises under cancellable operating lease. These lease agreements provides an option to the Company to renew the lease period at the end of the expiry. There are no exceptional/restrictive covenants in the lease agreement.

b) Lease Payments under an operating lease are recognised as an expense in the statement of Profit & Loss on a straight line basis over the lease term, Accordingly Rs 8,492,722 has been charged to Statement of Profit and Loss during the year (Previous year Rs.9,204,779)

10 Financial Reporting of Interests in Joint Venture

Company had a joint venture share of interest of 20% in Saudi National Lamps and Electricals Company Limited, Saudi Arabia that has been terminated during the year. As at the date of termination, the Company had following in the said joint venture

- Investment in share capital - Rs 25,732,351

- Receivables - Rs.42,754,347

In the opinion of the management of the Company, the aforesaid investment stands impaired and needs to be written off subject to regulatory approvals. Therefore, the Company has made the provision of 99% of value thereof as under- - for investment in share capital of Rs 25,475,027 during the year ended 31st March 2014.

- for receivables of Rs.42,326,804 (Rs 31,070,351 during the year ended 31st March 2014 and Rs 11,256,453 during the year ended 31st March 2013.

As the joint venture stands terminated, no additional disclosures as per Accounting Standard (AS) 27- ''Financial Reporting of Interest in Joint Venture'' are made.

11 There is no other material item that needs to be disclosed in accordance with Listing Agreement/ Companies Act,1956.

---

Mar 31, 2013

1. Company Overview :

Advance Metering Technology Limited ("AMTL" or "the Company") was incorporated on 7th February,2011 under the provisions of the Companies Act, 1956. It has been incorporated as a Special Purpose Vehicle(SPV) to take over the Metering Division and proposed power generation business/undertakings of Eon Electric Limited (formerly Indo Asian Fusegear Limited) as a going concern. The Hon''ble High Court for the States of Punjab & Haryana at Chandigarh vide its order dated 27th March, 2012, has approved the Scheme of Arrangement ("Scheme") u/s 391 to 394 of the Companies Act, 1956 between the company and Eon Electric Limited ( "Eon") and their respective shareholders and creditors for demerger of the Metering Division and Power Generation Business ("De-merged Undertaking") of Eon and transfer / vesting of the said undertaking in favour of AMTL with effect from 1st April, 2011 (Appointed Date) on a going concern basis. The Scheme became effective on 8th April, 2012 (Effective Date) on filing of the Certified True Copy of the said Order of the Hon''ble High Court with the Registrar of Companies, NCT of Delhi & Haryana. Its shares are listed on the National Stock exchange of India Limited and Bombay Stock Exchamge Limited. The Company is engaged in manufacturing and selling of Energy Meters. The Company has also entered into the business of Wind Power Generation.

2.1 The Company, during the year, has changed the method for providing depreciation on Power Generation assets (Windmills) from W.D.V to S.L.M with effect from the date of capitalisation of such assets (Jan, 2012), as a result of which a sum of Rs.49,16,414/-has been written back as exceptional item in the Profit and Loss account for the year 2012-13. Had this change not been made, the profit for the year would have been lower by Rs. 2,21,65,929/- on account of current depreciation and the value of net fixed assets would have been lower by Rs.2,70,82,343/-.

2.2 Represent the provision made for dimunation in the value of receivables of Rs. 1,12,56,453/- in Saudi National Lamps and Electrical Company Limited, a Joint Venture Company.

3 Contingent Liabilities and Commitments:

a. Contingent Liabilities

i) Bank Guarantees- Rs.10,00,000/- (Previous year Nil)

ii) Guarantees to Bank and others on behalf of Joint Venture Company of Rs.5,44,16,548(SR 37,59,347),(Previous year Nil)

b. Commitments

Capital Commitments (net of advance) Rs.2,75,380/- (Previous year Rs.13,64,48,289/- )

4 Provision for income tax has been made without considering some taxes and amounts which will be paid before filling of Income Tax Return as provided under Section 43-B of the Income Tax Act, 1961.

5 In the opinion of the Board, the current assets, loans and advances are approximately of the value stated, if realised, in the ordinary course of business. The provision of depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary.

6 The balances of Debtors, Advances and Creditors are subject to confirmation in some cases.

7 The company has paid annual listing fees to Bombay Stock Exchange Limited and National Stock Exchange of India Limited where its equity shares are listed.

8 Information of Segment Reporting of the Company for the year ended 31st March 2013 Business Segments

In accordance with Accounting Standard (AS) 17 " Segment Reporting" , the Company''s operations have been categorised into the follwing business segment:-

Meter & Others includes manufacturering of Energy Meter and Technical Consultancy on energy savings. Power Generation includes generation of electrcity from Wind

Segment Revenue relating to each of the above business segments includes Other Income, where applicable The above business segments have been identified considering:

a) the nature of products and services

b) the differing Risk and returns

c) the organisation structure, and

d) the internal financial reporting systems.

There are no geographical segments as the operations of the company''s exsiting Business Segments take place in india only.

Notes:-

i. Segment result represents Profit/(Loss) before Interest and Tax.

ii. Capital Expenditure pertains to gross additions made to the Fixed Assets during the year including capital work in progress.

iii. Segment Assets includes Fixed Assets, Current Assets and Loan and Advances directly attributable to respective business segments.

iv. Segmental Liabilities include Current Liabilities and Provisions directly attributable to respective business segments.

v. The accounting polices used to derive reportable segment results are consistent with those described in the "Significant Accounting Policies" note to the financial statements.

9 Related Party Disclosures

Disclosures as required by Accounting Standard (AS-18) "Related Party Disclosures" are given below:

A. Subsidiary Companies

PKR Energy Ltd.( formerly IAF Cables Ltd.)

Global Power and Trading PTE Ltd., Singapore Advance Power and Trading GMBH., Germany

B. Investing Parties with whom the company is a JV Partner

Saudi National Lamps and Electrical Company Limited

C. Directors, Key Management Personnel

Mr. P. K. Ranade -Director Mr. Vikram Ranade -Director Mr. Prashant Ranade -Director

D. Relatives of Directors, Key Management Personnel

Mrs. Ameeta Ranade Mrs. Ashima Ranade Mrs. Natasha Tara Ranade

E. Enterprises over which directors exercise significant influence

Indo Asian Marketing Private Limited PKR Technologies Private Limited PKR Power Private Limited Indo Nordex Lighting Private Limited Gard Tools Private Limited IAFL Switchgear Private Ltd.

Indo Asian Capital Finance Private Limited

10 During the year the Company has incorporated 2 wholly owned subsidiary Companies. The Company has paid Share Application Money of Rs. 4,41,337/- to Global Power and Trading Pte.Ltd., Singapore and Rs. 8,84,379/- to Advance Power and Trading Gmbh, Germany. The WOS has not yet alloted the shares pending completion of certain formalities. The WOS companies have not yet commenced their opeartions.

11 Lease Payments under an operating lease are recognised as an expense in the statement of Profit & Loss on a straight line basis over the lease term, Accordingly Rs.92,04,779/- has been charged to Statement of Profit and Loss during the year (Previous year Nil)

12 Earning in Foreign Exchange: - -

13 There is no other items to be disclosed in accordance with Listing Agreement/ Companies Act,1956 that is material in nature.

14 Previous year figures are not comparable due to the first year of opeartions after the De-merger.

---

Mar 31, 2012

Company Overview :

1. Advance Metering Technology Limited ("AMTL" or "the Company") was incorporated on 7th February, 2011 under the provisions of the Companies Act, 1956. It has been incorporated as a Special Purpose Vehicle(SPV) to take over the Metering Division and proposed power generation business/undertakings of Eon Electric Limited(formerly Indo Asian Fusegear Limited) as a going concern. The Hon'ble High Court for the States of Punjab & Haryana at Chandigarh vide its order dated 27th March, 2012, has approved the Scheme of Arrangement ("Scheme") u/s 391 to 394 of the Companies Act, 1956 between the company and Eon Electric Limited ("Eon") and their respective shareholders and creditors for demerger of the Metering Division and Power Generation Business ("De-merged Undertaking") of Eon and transfer/vesting of the said undertaking in favour of AMTL with effect from 1st April, 2011 (Appointed Date) on a going concern basis. The Scheme became effective on 8th April, 2012 (Effective Date) on filing of the Certified True Copy of the said Order of the Hon'ble High Court with the Registrar of Companies, NCT of Delhi & Haryana.

2. SHARE CAPITAL

2.1 Terms/rights attached to Equity Shares

The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees.

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

2.2 In accordance with the scheme of demerger approved by Hon'ble High Court for the States of Punjab & Haryana, these shares will be paid back at par in cash to the shareholders on the record date upon the scheme becoming effective from 8th April, 2012. In the merged Balance sheet of the year 31.03.2013, the new share capital coming out of demerger will replace the above equity share capital.

3. DEFERRED TAX ASSETS

3.1 Deferred Tax Asset have been created as under the Income Tax Act, 1961, the Company is required to file the return of income after considering the operations of Advance Metering Technology Limited from the appointed date April 01, 2011. (In view of the decision of Hon'ble Supreme Court vide order dated November 27, 1996 in the matter of Marshall Sons & Co. (India) Limited vs Income Tax officer in Civil Appeal No. 1661 and 1662 of 1992)

4. Advance Metering Technology Limited ("AMTL" or "the Company") was incorporated on 7th February, 2011 under the provisions of the Companies Act, 1956. It has been incorporated as a Special Purpose Vehicle (SPV) to take over the metering division and proposed power generation business/undertakings of Eon Electric Limited (formerly Indo Asian Fusegear Limited) as a going concern. The Hon'ble High Court for the States of Punjab & Haryana at Chandigarh vide its order dated 27th March, 2012, has approved the Scheme of Arrangement ("Scheme") u/s 391 to 394 of the Companies Act,1956 between the Company and Eon Electric Limited ("Eon") and their respective shareholders and creditors for demerger of the Metering Division and Power Generation Business ("De-merged Undertaking") of Eon and transfer/vesting of the said undertaking in favour of AMTL with effect from 1st April, 2011 (Appointed Date) on a going concern basis. The Scheme became effective on 8th April, 2012 (Effective Date) on filing of the Certified True Copy of the said Order of the Hon'ble High Court with the Registrar of Companies, NCT of Delhi & Haryana.

In terms of the Scheme, the Authorized, Issued, Subscribed and Paid up Share Capital of Eon, as on the Record Date, will be reduced to half by changing the face value of the shares from Rs. 10/- to Rs. 5/- each. All the members whose name appear in the records of Eon on the Record Date shall become the holders of the same number of Equity Shares of the face value of Rs. 5/- each credited as fully paid up of Eon and AMTL on the same terms, conditions and rights in the records of the respective companies.

Upon the coming into effect of Scheme and in terms of the Scheme :

a) The business and operations of the De-merged Undertaking shall be deemed to be vested and transferred with the company with retrospective effect from 1st April, 2011.

b) The related assets and liabilities of the De-merged Undertaking at the opening of business on 1st April, 2011 shall be deemed to have been vested and transferred with the company with effect from that date at their respective book values.

c) The business of the De-merged Undertaking shall be deemed to have been carried out by Eon, in trust for and on behalf of AMTL from the appointed date till the effective date.

Necessary effects in respect of the aforesaid scheme of arrangement would be given in the books of accounts of the company such as :-

a) Eon Electric Limited has bought back and extinguished 17,84,162 fully paid-up Equity Shares of the face value of Rs. 10/- each from its existing shareholders. A total sum of Rs. 11,59,64,056/- has been spent towards the said buy-back out of the free reserves of the company. As per the scheme of arrangement, the said amount has to be apportioned equally between Eon and AMTL. Accordingly a sum of Rs 5,79,82,028/- has been paid to Eon towards the said buy-back out of the General Reserve of the company.

b) Eon Electric limited has also allotted 8,90,000 Equity Shares of Rs. 10/- on conversion of 8,90,000 Zero Coupon Convertible Warrants allotted by it on preferential basis by private placement to the promoters of the company as per Securities and Exchange Board of India (Issue of Capital & Disclosure Requirements) Regulations, 2009.

5. Contingent Liabilities and Commitments:-

a. Contingent Liabilities - Nil

b. Commitments

Capital Commitments Rs. 13,61,15,500/-

6. Since no commercial activity has been undertaken during the period ended March 31, 2012, there is no reportable segment referred to in the statement of Accounting Standard (AS-17) for segmental reporting.

7. Related Party Disclosures

Disclosures as required by Accounting Standard (AS-18) "Related Party Disclosures" are given below:

A. Directors, Key Management Personnel

Mr. P. K. Ranade - Director

Mr. Vikram Ranade - Director

Mr. V. P. Mahendru - Director

Mr. Vinay Mahendru - Director

Mr. Prashant Ranade - Additional Director

B. Relatives of Directors, Key Management Personnel

Mrs. Ameeta Ranade

Mrs. Ashima Ranade

Mrs. Natasha Ranade

C. Enterprises over which directors exercise significant influence

Indo Asian Marketing Private Limited

D. LLP firms in which directors and their relatives are partners

PKR Hitech Industrial Corporation LLP

8. There is no other information apart from the information already disclosed above required to be disclosed pursuant to the relevant clauses of New Schedule VI as inserted to Companies Act by the Notification No. S.O. 447(E), Dated 28-2-2011 (As amended by Notification No. F.NO. 2/6/2008-CL-V, Dated 30-3-2011).

9. The Company was incorporated on February 07, 2011 and this, being the first financial statements of the Company, previous year figures are not given.