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Notes to Accounts of Eimco Elecon (India) Ltd.

Mar 31, 2023

As at 31-March-2023 and 31-March-2022 the fair values of the properties are based on market valuations performed by a Registered Valuer, as defined under Rule 2 of Companies (Registered Valuers and Valuation) Rules. 2017, by applying valuation model recommended by the International Valuation Standards Committee.

The Company has no restrictions on the realisability of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

The valuation of investment property as at 31^st March, 2023 and 31^st March, 2022 is done based on market feedback on values of similar properties and hence considered under "Level 2" of fair value measurement.

10.2 : Rights, preferences and restrictions attached to Equity Shares:

The Company has only one class of Equity Shares having at par value of '' 10/- per share.

Each shareholder is eligible for one vote per share. The Company declares and pays dividend in Indian rupees. 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 equity shares will be entitled to receive the 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.

The disclosure in respect of the amount payable to enterprises which have provided goods and services to the Company and which qualify under the definition of Micro, Small and Midium enterprises, as defined under Micro, Small and Midium Enterprises Development Act, 2006 has been made in the Financial statement as at 31-March-2023 based on the information received and available with the Company. On the basis of such information, no interest is payable to any micro, small and medium enterprises.

Provision for warranty

A provision for warranties relates mainly to standard warranty on sale of the product manufactured by the Company. The provision is based on technical evaluation, historical warranty data and a weighting of all possible outcomes by their associated probabilities.

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

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The Companyâs principal financial liabilities comprise trade & other payables. The main purpose of these financial liabilities is to finance the Companyâs operations and to support its operations. The Companyâs principal financial assets include Investments, trade and other receivables and cash & short-term deposits that derive directly from its operations.

The Company''s activities expose it to market risk, credit risk and liquidity risk. In order to minimise any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts are entered to hedge certain foreign currency exposures. Derivatives are used exclusively for hedging purposes and not as trading / speculative instruments. The Audit Committee/Board of Director has oversight in the area of financial risks and controls. It also covers policies on specific risk areas such as currency risk, interest rate risk and investment of surplus funds

For risk management, management identifies, evaluates and hedges financial risks in close co-operation with the Company''s operating units. The management provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments and investment of excess liquidity.

The following disclosures summarize the Company''s exposure to financial risks and information regarding use of derivatives employed to manage exposures to such risks. Quantitative sensitivity analysis have been provided to reflect the impact of reasonably possible changes in market rates on the financial results. cash flows and financial position of the Company.

(a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk. such as equity price risk and commodity risk. Financial instruments affected by market risk include borrowings, deposits, Investments, trade and other receivables, trade and other payables.

Company. Sensitivity analysis provides an approximate quantification of the exposure in the event that certain specified parameters were to be met under a specific set of assumptions. The risk estimates provided here assume:

The potential economic impact, due to these assumptions, is based on the occurrence of adverse / inverse market conditions and reflects estimated changes resulting from the sensitivity analysis. Actual results that are included in the Statement of Profit and Loss may differ materially from these estimates due to actual developments in the global financial markets.

The analyses exclude the impact of movements in market variables on the carrying values of gratuity and other post-retirement obligations and provisions.

The following assumption has been made in calculating the sensitivity analyses:

- The sensitivity of the relevant Statement of Profit or Loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31-March-2023 and 31-March-2022 including the effect of hedge accounting.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company does not have any borrowings with floating interest rate. Hence, the Company does not have any interest rate risk at present.

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 transacts business in local currency and in foreign currency, primarily in USD, GBP and EUR. Consequently, the Company has foreign currency trade payables and receivables etc. and is, therefore, exposed to foreign exchange risk. However, exposure to foreign currency is not material and hence, foreign currency risk is assessed by the Company is low.

Foreign Currency Sensitivity:

The Company is principally exposed to foreign currency risk against USD and EUR.Sensitivity of profit or loss arises mainly from USD and EUR denominated payables.

Equity price risk

The Company''s investment consists of investments in publicly traded companies held for purposes other than trading. Such investments held in connection with non-consolidated investments represent a low exposure risk for the Company and are not hedged.

(b) Credit Risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, and other financial instruments.

Trade Receivables

Customer credit risk is managed by each business unit subject to the Companyâs established policy, procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on 30 days to 90 days credit term. Credit limits are established for all customers based on internal rating criteria. Outstanding customer receivables are regularly monitored. The Company has no concentration of credit risk as the customer base is widely distributed both economically and geographically.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on actual incurred historical data. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 6. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

The requirement of impairment is analysed at each reporting date.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Companyâs treasury department in accordance with the Companyâs policy. Investments of surplus funds are made only with approved counterparties who meet the minimum threshold requirements under the counterparty risk assessment process. The Company monitors the ratings, credit spreads and financial strength of its counterparties. Based on its on-going assessment of counterparty risk, the Company adjusts its exposure to various counterparties. The Company''s maximum exposure to credit risk for the components of the Balance Sheet as on 31-March-2023 and 31-March-2022 is the carrying amount as disclosed in Note 25.

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company''s objective is to at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing, including bilateral loans, debt and overdraft from domestic banks at an optimised cost. It also enjoys strong access to domestic capital markets across equity.

For the purpose of the Companyâs capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Companyâs capital management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise shareholder value.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions or its business requirements. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings less cash and short-term deposits (including other bank balance). ,* _in i_akhs)

1. Debt is defined as all Long Term and Short Term Debt outstanding Current Maturity outstanding in lieu of Long Term Debt including Lease Liabilities.

2. Equity is defined as Equity Share Capital Other Equity

No changes were made in the objectives, policies or processes for managing capital during the years ended 31-March-2023 and 31- March-2022.

Note 29 : Contingent Liabilities		('' in Lakhs)
Particulars	31-March-2023	31-March-2022
Contingent liabilities not provided for a. Income tax demands disputed by the Company	202.36	200.93
b. Sales tax demands disputed by the Company	-	3.22
c. Excise & Service tax demands disputed by the Company	702.20	702.20
Note: Above all figures are excluding unquantified interest payable wherever applicable and outflow of funds, if any,
would depend upon the outcome of the dispute / contingency.
Note 30 : Capital commitments		('' in Lakhs)
Particulars	31-March-2023	31-March-2022
Capital commitments
Estimated amount of Contracts remaining to be executed on capital account and not provided for (Net of Advance)	371.69	302.42

B. Defined benefit plan:

The Company has following post employment benefits which are in the nature of defined benefit plans:

(a) Gratuity

The Company operates gratuity plan wherein every employee is entitled to the benefit as per scheme of the Company, for each completed year of service. The same is payable on retirement or termination whichever is earlier. The benefit vests only after five years of continuous service.

C. Terms and conditions of transactions with related parties

Transaction entered into with related party are made on terms equivalent to those that prevail in armâs length transactions.

D. Commitments with related parties

The Company has outstanding commitment of Rs. 246.72 Lacs to the related party as at 31.03.2023

Note 35 (a) : Other Amendments with respect to Schedule III

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

2. The company is not declared as wilful defaulter by any bank or financial Institution or other lender.

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

4. The company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

5. The company have not traded or invested in Crypto currency or Virtual Currency during the year.

6. The company does not have any transactions with companies struck off.

7. The company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

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

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

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

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

10. The previous yearâs figures have been regrouped / rearranged wherever necessary to make it comparable with the current year.

(1) Total Debt represents Current Borrowings Non Current Borrowings Lease liabilities.

(2) Earnings available for debt service represents Profit Before Tax Interest on Debt

(3) Debt Service represents Interest on Debt Scheduled principal repayment of non-current borrowings Current maturity of lease liabilities.

(4) Capital Employed represents Total Equity Borrowings Deferred Tax liabilities

(5) Income generated from invested funds represents Interest Income, Actual Gain / (Loss) on Sale of Investments in Shares / Mutual Funds and Notional Gain / (Loss) on unsold Investments in Shares / Mutual Funds.

(6) Average Invested funds represents Average Investments in Fixed deposits, Equity Shares and Mutual Funds.

Mar 31, 2018

1. CORPORATE INFORMATION

Eimco Elecon (India) Limited is a public company domiciled in India and is incorporated in 1974 under the provisions of the Companies Act applicable in India. Its shares are listed on two recognised stock exchanges in India. The registered office of the company is located at Vallabh Vidyanagar, Gujarat. The Company is principally engaged in the business of Manufacturing of Equipment for Mining and Construction sectors.

The financial statements were authorised for issue in accordance with a resolution of the Board of Directors on 3rd May, 2018.

2.1 Significant accounting judgments, estimates and assumptions

The preparation of the Companyâs financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgments

In the process of applying the Companyâs accounting policies, management has made the following judgments, which have the most significant effect on the amounts recognized in the financial statements:

Finance lease commitments - Company as lessee

The Company has entered into leases whereby it has taken land on lease. The Company has determined, based on an evaluation of the terms and conditions of the arrangements, such as the lease term constituting a major part of the economic life of the property and the fair value of the asset, that it retains all the significant risks and rewards of ownership of these properties and accounts for the contracts as finance leases.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Defined benefit plans (gratuity benefits)

The cost of the defined benefit plan and the present value of the obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, attrition rate and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation.

The underlying bonds are further reviewed for quality. Those having excessive credit spreads are excluded from the analysis of bonds on which the discount rate is based, on the basis that they do not represent high quality corporate bonds.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates for the respective countries.

Further details about gratuity obligations are given in Note 31.

Taxes

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Allowance for uncollectible trade receivables

Trade receivables do not carry any interest and are stated at their nominal value as reduced by appropriate allowances for estimated irrecoverable amounts. Estimated irrecoverable amounts are based on the ageing of the receivable balance and historical experience. Additionally, a large number of minor receivables is grouped into homogeneous groups and assessed for impairment collectively. Individual trade receivables are written off when management deems them not to be collectible.

Warranty Provision

The company generally offers 12-18 months warranties for the products sold. Management estimates the related provision for future warranty claims based on historical warranty claim information as well as recent trends that might suggest that past cost information may differ from future claims. The assumptions made in relation to the current period are consistent with those in the prior periods. Factors that could impact the estimated claim information include the success of the companyâs productivity and quality initiatives.

Intangible Assets

Refer Note 2.2 (h) for the estimated useful life of Intangible assets. The carrying value of Intangible assets has been disclosed in Note 5.

Property, Plant and Equipment

Refer Note 2.2 (f) for the estimated useful life of Property, plant and equipment. The carrying value of Property, plant and equipment has been disclosed in Note 3.

2.2 Ind AS 115 Revenue from Contract with Customers:

On 28th March 2018, Ministry of Corporate Affairs has notified the Ind As115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or service to customers in an amount that reflects the consideration which the entity expects to be entitled in exchange for those goods or service. Further the new standard requires enhanced disclosures about the nature, amount timing and certainty of revenue and cash flow arising from the entityâs contract with customers.

The standard permits two possible method of transition

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

2. 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 period beginning on or after 1st April 2018.

The company will adopted the standard on 1st April, 2018 by using the cumulative catch-up transition method and accordingly comparative for the year ending on 31st March, 2018 will not be retrospectively adjusted. The effect on adoption of Ind AS 115 is expected to be insignificant. Based on the preliminary assessment, the company does not expect any significant impacts on transition to Ind AS 115. This assessment is based on currently available information and may be subject to changes arising from further reasonable and supportable information when the standard will be adopted. The quantitative impacts would be finalized based on a detailed assessment which has been initiated to identify the key impacts along with evaluation of appropriate transition options to be considered.

3.1 : Rights, preferences and restrictions attached to Equity Shares:

The Company has only one class of Equity Shares having at par value of Rs. 10/- per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amount exists currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities related to income taxes levied by the same tax authority.

During the year ended 31-March-2018 and 31-March-2017, the Company has paid dividend to its shareholders. This has resulted in payment of dividend distribution tax (DDT) to the taxation authorities. The Company believes that dividend distribution tax represents additional payment to taxation authority on behalf of the shareholders. Hence dividend distribution tax paid is charged to equity.

Note 4 : Fair value disclosures for financial assets and financial liabilities

Set out below is a comparison, by class, of the carrying amounts and fair value of the Companyâs financial instruments, other than those with carrying amounts that are reasonable approximations of fair values:

The discount for lack of marketability represents the amounts that the Company has determined that market participants would take into account when pricing the investments.

Note 5 : Fair value hierarchy

The following table provides the fair value measurement hierarchy of the Companyâs assets and liabilities

Note 6 : Financial instruments risk management objectives and policies

The Companyâs activities expose it to market risk, credit risk and liquidity risk. In order to minimise any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts are entered to hedge certain foreign currency exposures. Derivatives are used exclusively for hedging purposes and not as trading / speculative instruments.

For risk management, management identifies, evaluates and hedges financial risks in close co-operation with the Companyâs operating units. The management provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments and investment of excess liquidity.

(a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include borrowings, deposits, Investments, trade and other receivables, trade and other payables.

Within the various methodologies to analyse and manage risk, the Company has implemented a system based on âsensitivity analysisâ on symmetric basis. This tool enables the risk managers to identify the risk position of the Company. Sensitivity analysis provides an approximate quantification of the exposure in the event that certain specified parameters were to be met under a specific set of assumptions. The risk estimates provided here assume: The potential economic impact, due to these assumptions, is based on the occurrence of adverse / inverse market conditions and reflects estimated changes resulting from the sensitivity analysis. Actual results that are included in the Statement of Profit and Loss may differ materially from these estimates due to actual developments in the global financial markets.

The analyses exclude the impact of movements in market variables on the carrying values of gratuity and other post-retirement obligations and provisions.

The following assumption has been made in calculating the sensitivity analyses:

- The sensitivity of the relevant Statement of Profit or Loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31-March-2018 and 31-March-2017 including the effect of hedge accounting.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company does not have any borrowings with floating interest rate. Hence the Company does not have any interest rate risk at the present.

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 transacts business in local currency and in foreign currency, primarily in EUR/USD. The Company has foreign currency trade payables and receivables etc. and is, therefore, exposed to foreign exchange risk. However, exposure to foreign currency is not material and hence, foreign currentcy risk is assessed by the Company is low.

Equity price risk

The Companyâs investment consists of investments in publicly traded companies held for purposes other than trading. Such investments held in connection with non-consolidated investments represent a low exposure risk for the Company and are not hedged.

(b) Credit Risk

Trade Receivables

The requirement of impairment is analysed as each reporting date.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Companyâs treasury department in accordance with the Companyâs policy. Investments of surplus funds are made only with approved counterparties who meet the minimum threshold requirements under the counterparty risk assessment process. The Company monitors the ratings, credit spreads and financial strength of its counterparties. Based on its on-going assessment of counterparty risk, the Company adjusts its exposure to various counterparties. The Companyâs maximum exposure to credit risk for the components of the Balance Sheet as on 31-March-2018 and 31-March-2017 is the carrying amount as disclosed in Note 25.

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Companyâs objective is to at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing, including bilateral loans, debt and overdraft from domestic banks at an optimised cost. It also enjoys strong access to domestic capital markets across equity.

Note 7 : Capital Management

Note 8 : Disclosure pursuant to Employee benefits

A. Defined contribution plans:

Amount of Rs. 72.32 Lakh. (March 31, 2017: Rs. 74.12 Lakh) is recognised as expenses and included in Note No. 21 âEmployee benefit expenseâ

B. Defined benefit plan:

The Company has following post employment benefit which is in the nature of defined benefit plans:

(a) Gratuity

C. Other Long Term Employee Benefit Plans Leave encashment / Compensated absences

Salaries, Wages and Bonus include Rs. 16.74 Lakhs (Previous Year Rs. 37.19 Lakhs) towards provision made as per actuarial valuation in respect of accumulated leave encashment/compensated absences.

Note 8 : Related Party Transactions

As per the Indian Accounting Standard on âRelated Party Disclosuresâ (IND AS 24), the related parties of the Company are as follows :

c. Terms and conditions of transactions with related parties

Transaction entered into with related party are made on terms equivalent to those that prevail in armâs length transactions.

d. Commitments with related parties

The Company has not provided any commitment to the related parties as at 31-March-2018, (31-March-2017: Rs. Nil)

Note 9 : Corporate Social Responsibility (CSR) Activities:

a. As per Section 135 of the Companies Act, 2013, a CSR Committee has been formed by the Company. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation and rural development projects. The funds were primarily allocated to a corpus and utilized throughout the year on these activities which are specified in Schedule VII of the Companies Act, 2013.

b. Amount spent during the year on:

Mar 31, 2017

2.3 Significant accounting judgments, estimates and assumptions

The preparation of the Company''s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgments

In the process of applying the Company''s accounting policies, management has made the following judgments, which have the most significant effect on the amounts recognized in the financial statements:

Finance lease commitments - Company as lessee

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based on its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Defined benefit plans (gratuity benefits)

Further details about gratuity obligations are given in Note 31.

Taxes

Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Allowance for uncollectible trade receivables

Warranty Provision

Intangible Assets

Refer Note 2.2 (h) for the estimated useful life of Intangible assets. The carrying value of Intangible assets has been disclosed in Note 5.

Property, Plant and Equipment

Refer Note 2.2 (f) for the estimated useful life of Property, plant and equipment. The carrying value of Property, plant and equipment has been disclosed in Note 3 .

As at 31-March-2017, 31-March-2016 and 01-April-2015, the fair values of the properties are based on Market valuations performed by an accredited independent valuer, who is a specialist in valuing these types of investment properties. A valuation model in accordance with that recommended by the International Valuation Standards Committee has been applied.

The Company has no restrictions on the reliability of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

Fair value hierarchy disclosures for investment properties are in Note 26.

10.2: Terms/Rights attached to the Equity Shares

(a) Rights, preferences and restrictions attached to Equity Shares:

The Company has only one class of Equity Shares having at par value of '' 10/- per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amount exists currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

There is no principal amount and interest overdue to Micro and Small Enterprises as at the year end. During the year, no interest has been paid to such parties. The above information has been compiled in respect of parties to the extent to which they could be identified as Micro, Small and Medium Enterprises on the basis of information available with the Company.

During the year ended 31-March-2017 and 31-March-2016, the Company has paid dividend to its shareholders. This has resulted in payment of dividend distribution tax (DDT) to the taxation authorities. The Company believes that dividend distribution tax represents additional payment to taxation authority on behalf of the shareholders. Hence dividend distribution tax paid is charged to equity.

Note 1: Fair value disclosures for financial assets and financial liabilities

Set out below is a comparison, by class, of the carrying amounts and fair value of the Company''s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values:

The discount for lack of marketability represents the amounts that the Company has determined that market participants would take into account when pricing the investments.

Note 2: Fair value hierarchy

The following table provides the fair value measurement hierarchy of the Company''s assets and liabilities

Note 3: Financial instruments risk management objectives and policies

The Company''s principal financial liabilities comprise trade & other payables. The main purpose of these financial liabilities is to finance the Company''s operations and to support its operations. The Company''s principal financial assets include Investments, trade and other receivables and cash & short-term deposits that derive directly from its operations.

"The Company''s activities expose it to market risk, credit risk and liquidity risk. In order to minimise any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts are entered to hedge certain foreign currency exposures. Derivatives are used exclusively for hedging purposes and not as trading / speculative instruments.

For risk management, management identifies, evaluates and hedges financial risks in close co-operation with the Company''s operating units. The management provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, and credit risk, use of derivative financial instruments and non-derivative financial instruments and investment of excess liquidity."

(a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include borrowings, deposits, Investments, trade and other receivables, trade and other payables.

Within the various methodologies to analyze and manage risk, the Company has implemented a system based on "sensitivity analysis" on symmetric basis. This tool enables the risk managers to identify the risk position of the Company. Sensitivity analysis provides an approximate quantification of the exposure in the event that certain specified parameters were to be met under a specific set of assumptions.

The analyses exclude the impact of movements in market variables on the carrying values of gratuity and other post-retirement obligations and provisions.

The following assumption has been made in calculating the sensitivity analyses:

- The sensitivity of the relevant Statement of Profit or Loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31-March-2017, 31-March-2016 and 01-April-2015, including the effect of hedge accounting.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company does not have any borrowings with floating interest rate. Hence the Company does not have any interest rate risk at the present.

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 transacts business in local currency and in foreign currency, primarily in EUR/USD. The Company has foreign currency trade payables and receivables etc. and is, therefore, exposed to foreign exchange risk. However, exposure to foreign currency is not material and hence, foreign currency risk is assessed by the Company is low.

Equity price risk

(b) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, and other financial instruments.

Trade Receivables

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on 30 days to 90 days credit term. Credit limits are established for all customers based on internal rating criteria. Outstanding customer receivables are regularly monitored. The Company has no concentration of credit risk as the customer base is widely distributed both economically and geographically.

The requirement of impairment is analyzed as each reporting date.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties who meet the minimum threshold requirements under the counterparty risk assessment process. The Company monitors the ratings, credit spreads and financial strength of its counterparties. Based on its on-going assessment of counterparty risk, the Company adjusts its exposure to various counterparties. The Company''s maximum exposure to credit risk for the components of the Balance Sheet as on 31-March-2017, 31-March-2016 & 01-April-2015 is the carrying amount as disclosed in Note 25.

Note 28: Capital Management

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximize shareholder value.

B. Defined benefit plans:

The Company has following post employment benefits which are in the nature of defined benefit plans:

(a) Gratuity

C. Other Long Term Employee Benefit Plans Leave encashment / Compensated absences

Salaries, Wages and Bonus include Rs. 37.19 Lakhs (Previous Year Rs. 9.14 Lakhs) towards provision made as per actuarial valuation in respect of accumulated leave encashment/compensated absences.

Note 32: Related Party Transactions

As per the Indian Accounting Standard on "Related Party Disclosures" (IND AS 24), the related parties of the Company are as follows :

a. Name of Related Parties and Nature of Relationship :

a.		Associate	Eimco Elecon Electricals Ltd.
b.		Individual/Enterprise having control/ significant influence	Shri P. B. Patel Elecon Engineering Co. Ltd.
c.		Key Management Personnel	Shri P. B. Patel Shri M. G. Rao Shri N. D. Shelat Smt. B. L. Isarani
d.		Enterprises over which (b) or (c) above have significant influence	EMTICI Engineering Ltd. Prayas Engineering Ltd. Power Build Pvt. Ltd. Elecon Information Technology Ltd. Madhubhan Prayas Resorts Ltd. Akaaish Mechatronics Ltd. Speciality Woodpack Pvt. Ltd. Elecon Peripherals Ltd. Bipra Investments & Trusts Pvt. Ltd Devkishan Investments Pvt. Ltd. K. B. Investments Pvt. Ltd. Aishpra Properties Pvt. Ltd. Akaaipra Infracon Pvt. Ltd BIP Buildcon Pvt. Ltd.
			Jamko Consultants Pvt. Ltd. Kirloskar Power Build Gears Ltd. Madhuban Heights Pvt. Ltd. MTC Buildcon Pvt. Ltd. Akaaish Investments Pvt. Ltd. Wizard Fincap Ltd. Tech Elecon Pvt. Ltd. Elecon Hydraulics Pvt. Ltd. Vijay M. Mistry Construction Pvt. Ltd. Elecon Australia Pty. Ltd. Elecon Africa Pty. Ltd. Elecon Singapore Pte. Ltd. Elecon Middle East FZCO Elecon Engineering (Suzhou) Co Ltd. Elecon Transmission International Ltd. Power Build Transmission International Ltd. Elecon UK Transmission Ltd. Elecon USA Transmission Ltd. David Brown System Sweden AB, Sweden AB Benzlers, Sweden Benzler Technisch Buro Aandrijftechniek B.V. (The Netherlands) Banzler Transmission A.S (Denmark) Benzler Andtriebstech nik GmbH, Germany OY Benzler AB (Finland) Radicon Transmission (Thailand) Ltd. Radicon Transmission System (Thailand) Ltd. Radicon Transmission (Australia) Pty. Ltd.
e	Collaborators		Sandvik AB Sweden Tamrock Great Britain Holdings Ltd.
	Note: Related party relationship is as identified by the Company and relied upon by the Auditors

d. Terms and conditions of transactions with related parties

Transaction entered into with related parties is made on terms equivalent to those that prevail in arm''s length transactions.

e. Commitments with related parties

The Company has not provided any commitment to the related parties as at 31-March-2017, (31-March-2016: '' Nil and 01-April-2015: '' Nil)

f. Transactions with key management personnel Compensation of key management personnel of the Company

Note 34 : Corporate Social Responsibility (CSR) Activities:

Note 35 : First- time adoption of Ind AS

These financial statements, for the year ended 31-March-2017 are the first annual Ind AS financial statements, the Company has prepared in accordance with the Ind AS. For periods up to and including the year ended 31-March-2016, 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, 2014 (Indian GAAP). Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ended on 31-March-2017, together with the comparative period data as at and for the year ended 31-March-2016, as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening Balance Sheet was prepared as at 01-April-2015, the Company''s 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 01-April-2015 and the previously published Indian GAAP financial statements as at and for the year ended 31-March-2016.

Exemptions Applied

Ind AS 101 "First-time Adoption of Indian Accounting Standards" allows first-time adopter certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

Ind AS optional exemptions

1. Deemed Cost

Ind AS 101 permits a a first time adopter to elect to measure an item of property, plant and equipment at the transition to Ind AS at its fair value and use that fair value as its deemed cost at that date.

Accordingly, the Company has elected to measure certain classes of its property, plant and equipment at fair value on the date of transition to Ind AS and used those fair value as deemed cost of property, plant and equipment.

Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its Investment property and Intangible assets as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition.

Accordingly, since there is no change in the functional currency, the Company has elected to continue with the carrying value for all of its Investment properties and Intangible assets, as recognized in its Indian GAAP financials, as deemed cost at the transition date.

4. Investment in Associates

The Company has elected the option provided under Ind AS 101 to measure all its investments in Associates at previous GAAP carrying value on the date of transition in its separate financial statement and used that carrying value as the deemed cost of such investments.

Ind AS mandatory exceptions

5. Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP, unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 01-April-2015 are consistent with the estimates as at the same date made in the conformity with previous GAAP. The Company made estimates for the following in accordance with Ind AS at the date of transition as these were not required under previous GAAP.

6. Investment measured at FVTPL

The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at 01-April-2015, the date of transition to Ind AS and as of 31-March-2016.

7. Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS. Reconciliations between previous GAAP and Ind AS.

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for the year ended 31-March-2016 and equity as at 01-April-2015 (Opening Balance Sheet).

Notes to the reconciliation of equity as at 1-April-2015 and 31-March-2016 and total comprehensive income for the year ended 31-March-2016

i. Fair Valuation of Property, plant and equipment

The Company has elected to measure certain items of Property, Plant and Equipment (PPE) at fair value at the date of transition to Ind AS and to use the fair value as deemed cost on the date of transition. The resulting change has been adjusted in retained earnings. Change in depreciation & amortization of the subsequent period due to fair valuation of items of PPE have been recognized in statement of profit & loss. The following table summarizes the aggregate fair value and adjustment to the carrying amount reported under previous GAAP for items of PPE for which fair value measurement is adopted:

ii. Impact of fair valuation of Financial Instruments

Under previous GAAP, the long-term investments were measured at cost less permanent diminution in value, if any and current investment was measured at cost and fair value whichever is lower. Ind AS requires all investments to be measured at fair value at the reporting date and all changes in the fair value subsequent to the transition date to be recognized either in the Statement of profit and loss or Other Comprehensive Income (based on the category in which they are classified).

iii. Proposed Dividend and tax thereon

Under Previous GAAP, proposed dividends are recognized as liability in the period to which they relate irrespective of the approval by shareholders. Under Ind AS, a dividend distribution is recognized as a liability in the period in which it is declared by the company (on approval of Shareholders in a general meeting) or paid. Therefore, the liability recorded under previous GAAP has been derecognized.

iv. Re-measurement gain / loss on defined benefit plan

Under Ind AS, re-measurement i.e. actuarial gain loss and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of profit or loss. Under the previous GAAP, this re-measurement were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended on 31-March-2016 increased by '' 2.14 Lakhs (net of Tax). There is no impact on the total equity as at 31-March-2016.

v. Tax impacts on Ind AS adjustments

The impact of transition adjustments together with Ind AS mandate of using balance sheet approach (against profit and loss approach under previous GAAP) for computation of deferred tax has resulted in adjustment to Reserves, with consequential impact in the subsequent periods to the Statement of profit and loss or Other comprehensive income, as the case may be.

vi. Retained Earnings

Retained earnings as at 01-April-2015 has been adjusted consequent to the above Ind AS transition adjustments.

vii. Classification & Presentation

a. Investment Property

Under the previous GAAP, Building given on lease has been shown as Investment property and disclosed under the head Investments. Under Ind AS, Building given on lease is disclosed separately as Investment property on the face of the Balance sheet.

b. Excise Duty

Under the previous GAAP, sale of goods was presented as net of excise duty. Under Ind AS, revenue from sale of products is presented inclusive of excise duty. The excise duty paid on sale of products is separately presented on the face of statement of profit and loss as a part of expense. Thus sale of goods under Ind AS has increased by Rs.950.63 lakhs with a corresponding increase in other expense.

viii. Statement of cash flows

The impact of transition from previous GAAP to Ind AS on the statement of cash flows is due to various reclassification adjustments recorded under Ind AS in Balance sheet and Statement of profit and loss and difference in the definition of cash and cash equivalents under these two GAAPs like bank overdraft.

Note 36: Standards issued but not yet effective

The standard issued, but not yet effective up to the date of issuance of the Companyâs financial statements is disclosed below. The Company intends to adopt this standard when it becomes effective.

In March 2017, the Ministry of Corporate Affairs has issued the Companies (Indian Accounting Standards) (Amendment) Rules, 2017, notifying amendments to Ind AS 7, ''Statement of Cash Flows'' and Ind AS 102, ''Share-based Payments''. These amendments are in accordance with the recent amendments made by International Accounting Standards Board (IASB) to IAS 7, ''Statement of Cash Flows'' and IFRS 2, ''Share-based Payment'', respectively. The amendments are applicable to the Company from April 01, 2017. Amendment to Ind AS 7

The amendment to Ind AS 7 required the entities to provide disclosures that enables users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities, to meet the disclosure requirement.

The Company has evaluated the disclosure requirements of the amendment and the effect on the financial statements is not expected to be material.

Amendment to Ind AS 102

The amendment to Ind AS 102 provides specific guidance for the measurement of cash settled awards, modification of cash settled awards and awards that includes a net settlement features in respect of withholding taxes. As the Company does not have such nature of transaction, this amendment does not have any effect on the financial statements of the Company.

Mar 31, 2016

Terms / Rights attached to Shares

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

The Company declares and pays dividends in Indian rupees. The dividend proposed by Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31^st March, 2015 the amount of per share dividend recognized as distribution to equity shareholders was '' 5 /-.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amount exists currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note : Outflow of funds, if any, would depend upon the outcome of the dispute / contingency.

(b) Commitment:

Estimated amount of contracts remaining to be executed on Capital Account is '' 306.30 Lac (Net of advance) (P.Y. '' 121.45 Lac)

1. The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with insurance companies in the form of a qualifying insurance policy.

The following table summarizes the components of net benefit expense recognized in the Statement of Profit and loss and the funded status and amounts recognized in the Balance Sheet for the plan.

(h) The expected contributions for Defined Benefit Plan for the next financial year will be in line with FY 2015-16.

2. SEGMENT REPORTING

In terms of AS-17 on âSegment Reportingâ the Company neither has more than one business segment nor more than one geographical segment requiring separate disclosure as there is no more distinguishable component or economic environment of an enterprise engaged in providing individual product or service or a group of related products or service and the same is not subjected to different risks and returns either of business or geographical segments.

3. PROVISION FOR WARRANTY

A provision of '' 143.67 Lac (P.Y '' 200.43 Lac) has been recognized for expected warranty claims at 1% on products sold during the current financial year. The warranty claims are for the period of 12 months and hence it is expected that the expenditure towards warranty will be incurred in the next financial year.

4. RELATED PARTY TRANSACTIONS

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

A) Name of the related parties and nature of relationships :

a) Associates and Joint Ventures

(i) Elecon Engineering Company Limited (Joint Venture & Partner)

(ii) Wizard Fincap Limited (Associate)

(iii) Eimco Elecon Electricals Limited (Associate)

b) Individual having control / significant influence

(i) P. B. Patel

c) Key management Personnel

(i) M. G. Rao

(ii) N. D. Shelat

d) Enterprises over which (b) or (c) above have significant influence

(i) Elecon EPC Projects Ltd.

(ii) EMTICI Engineering Ltd.

(iii) Prayas Engineering Ltd.

(iv) Power Build Private Ltd.

(v) Narmada Travel Services Ltd.

(vi) Elecon Information Technology Ltd.

(vii) Madhubhan Prayas Resorts Ltd.

(viii) Akaaish Mechatronics Ltd.

(ix) Speciality Woodpack Pvt. Ltd.

(x) Elecon Peripherals Ltd.

(xi) Bipra Investment & Trusts Private Ltd.

(xii) Devkishan Investments Private Ltd.

(xiii) K.B.investment Private Ltd.

(xiv) Aishpra Properties Pvt. Ltd.

(xv) Akaaipra Infracon Pvt. Ltd

(xvi) BIP Buildcon Pvt. Ltd.

(xvii) Madhuban Heights Pvt. Ltd.

(xviii) MTC Buildcon Pvt. Ltd.

(xix) Akaaish Investments Pvt. Ltd

(xx) Elecon Australia Pty. Ltd.

(xxi) Elecon Africa Pty. Ltd.

(xxii) Elecon Singapore Pte. Ltd.

(xxiii) Elecon Middle East FZCO

(xxiv) Elecon Engineering (Suzhou) Co. Ltd.

(xxv) Elecon Transmission International Ltd.

(xxvi) Power Build Transmission International Ltd.

(xxvii) Elecon UK Transmission Ltd.

(xxviii) Elecon USA Transmission Ltd.

(xxix) David Brown System Sweden AB, Sweden

(xxx) AB Benzlers, Sweden

(xxxi) Benzler Technisch Buro Aandrijftechniek B.V ( The Netherlands)

(xxxii) Banzler Transmission A.S ( Denmark )

(xxxiii) Benzler Andtriebstech nik GmbH, Germany

(xxxiv) OY Benzler AB ( Finland )

(xxxv) Radicon Transmission ( Thailand ) Ltd.

(xxxvi) Radicon Transmission System ( Thailand ) Ltd.

(xxxvii) Radicon Transmission (Australia) Pty. Ltd.

5. Corporate Social Responsibility (CSR) :

As per Section 135 of the Companies Act, 2013, a CSR Committee has been formed by the company. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation and rural development projects. The funds were primarily allocated to a corpus and utilized throughout the year on these activities which are specified in Schedule VII of the Companies Act, 2013.: Rs.52.34 Lac.

6. Details of Corporate Guarantees given by the Company covered u/s 186 (4) of the Companies Act, 2013.

7. In view of reclassification certain figures of current year are not strictly comparable with those of previous year.

Mar 31, 2015

1. COMPANY OVERVIEW

Eimco Elecon (India) Limited (the Company) is situated at Vallabh Vidyanagar, Gujarat - 388120. The Company was incorporated in 1974 and is engaged in the business of Manufacturing of Equipments for Mining and Construction sector.

2. Terms / Rights attached to Shares

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

The Company declares and pays dividends in Indian rupees. The dividend proposed by Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March, 2014 the amount of per share dividend recognised as distribution to equity shareholders was Rs. 4/-.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amount exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

3. CONTINGENT LIABILITY AND COMMITMENT

(a) Contingent Liabilities not provided for: (Rs. in lacs) As at 31st March 2015 2014

Guarantee given by the Company on behalf 2,773.77 3,037.50

Elecon Engineering Co. Ltd.

Income tax demand disputed by the Company 112.78 179.01

Sales Tax Demand Disputed by the Company 53.73 22.38

Excise & Service tax Demand Disputed by the Company 1,006.89 584.77

Note : Outflow of funds, if any, would depend upon the outcome of the dispute / contingency.

(b) Commitment:

Estimated amount of contracts remaining to be executed on Capital Account is Rs. 121.45 Lacs (Net of advance) (P.Y. Rs. 509.73 Lacs)

4. SEGMENT REPORTING

In terms of AS-17 on "Segment Reporting" the Company neither has more than one business segment nor more than one geographical segment requiring separate disclosure as there is no more distinguishable component or economic environment of an enterprise engaged in providing individual product or service or a group of related products or service and the same is not subjected to different risks and returns either of business or geographical segments.

5. PROVISION FOR WARRANTY

A provision of Rs. 200.43 lacs (P.Y Rs. 193.35 lacs) has been recognized for expected warranty claims at 1% on products sold during the current financial year. The warranty claims are for the period of 12 months and hence it is expected that the expenditure towards warranty will be incurred in the next financial year.

6. Corporate Social Responsibility (CSR) :

As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the company. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation and rural development projects. The funds were primarily allocated to a corpus and utilized through out the year on these activities which are specified in Schedule VII of the Companies Act, 2013 : Rs. 43.23 Lacs.

7. In view of reclassification certain figures of current year are not strictly comparable with those of previous year.

Mar 31, 2014

1. COMPANY OVERVIEW

Eimco Elecon (India) Ltd. is in business of Manufacturing of Equipments for Mining and Construction sector. The Company was incorporated in 1974 and it is situated at Vallabh Vidyanagar, Gujarat - 388 120.

2.1 CONTINGENT LIABILITY AND COMMITMENT

(a) Contingent Liabilities not provided for: (Rs. in lacs)

As at 31st March 2014 2013

Guarantees issued by Banks 1457.58 1961.55

Guarantee given by the company on behalf of third party 3037.50 -

Income tax demands disputed by the Company 179.01 185.38

Sales tax demand disputed by the Company 22.38 57.86

Excise & Service tax demand disputed by the Company 584.77 842.46

24.2 The Company has a Defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with insurance companies in the form of a qualifying insurance policy.

2.2 PROVISION FOR WARRANTY

A provision of Rs. 193.35 Lacs (P.Y Rs. 170.00 Lacs) has been recognized for expected warranty claims at 1% on products sold during the current financial year. The warranty claims are for the period of 12 months and hence it is expected that the expenditure towards warranty will be incurred in the next financial year.

2.3 RELATED PARTY TRANSACTIONS

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

A) Name of the related parties and nature of relationships :

a) Associates and Joint Ventures

(i) Wizard Fin Cap Ltd. (Associates)

(ii) Eimco Elecon Electricals Ltd. (Associates)

(iii) Elecon Engineering Company Ltd. (Joint Venture)

b) Individual having control / significant infuence

(i) Prayasvin B. Patel

(ii) M. G. Rao

c) Key management Personnel

(i) M. G. Rao

d) Enterprises over which (b) or (c) above have significant infuence

(i) EMTICI Engineering Limited

(ii) Prayas Engineering Limited

(iii) Power Build Limited

(iv) Elecon EPC Projects Limited

(v) Elecon Information Technology Limited

(vi) Madhubhan Prayas Resorts Limited

(vii) Akkaish Mechatronics Limited

(viii) Speciality Woodpack Pvt. Limited

(ix) Elecon Peripherals Limited

(x) Bipra Investment & Trusts Private Limited

(xi) Devkishan Investments Private Limited

(xii) K.B.investment Private Limited

(xiii) Eleccon Australia Pty. Limited

(xiv) Elecon Africa Pty. Limited

(xv) Elecon Singapore Pte. Limited

(xvi) Elecon Middle East FZCO

(xvii) Elecon Engineering (Suzhou) Co. Limited

(xviii) Elecon Transmission International Limited

(xix) Power Build Transmission International Limited

(xx) Elecon UK Transmission Limited

(xxi) Elecon USA Transmission Limited

(xxii) David Brown System Sweden AB, Sweden

(xxiii) AB Benzlers , Sweden

(xxiv) Benzler Technisch Buro Aandrijftechniek B.V. (The Netherland)

(xxv) Banzler Transmission A.S. (Denmark)

(xxvi) Benzler Andtriebstech nik GmbH, Germany

(xxvii) OY Benzler AB (Finland)

(xxviii) Radicon Transmission (Thailand) Limited

(xxix) Radicon Transmission System (Thailand) Limited

(xxx) Radicon Transmission (Australia) Pty. Limited

e) Collaborators

(i) Sandvik AB, Sweden

(ii) Tamrock Great Britain Holdings Limited, U.K.

2.4 In view of reclassifcation certain fgures of current year are not strictly comparable with those of previous year.

Mar 31, 2013

1. COMPANY OVERVIEW

Eimco Elecon (India) Ltd. is in business of Manufacturing of Equipments for Mining and Construction sector. The Company was incorporated in 1974 and situated at Vallabh Vidyanagar, Gujarat - 388 120.

2.1 CONTINGENT LIABILITY AND COMMITMENT

(a) Contingent Liabilities not provided for:

(Rs. in lacs) As at 31st March 2013 2012

Guarantees Issued By Banks 1961.55 1978.38

LC opened but goods yet to be received 497.90 366.76

Income tax demand disputed by the Company 185.38 262.17

Sales Tax Demand Disputed by the Company 57.86 27.42

Excise & Service tax Demand Disputed by the Company 842.46 1468.47

(b) Commitment:

Estimated amount of contracts remaining to be executed on Capital Account is Rs. 202.73 Lacs (P.Y. Rs. 668.88 Lacs)

2.2 The Company has a defned beneft gratuity plan. Every employee who has completed fve years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with insurance companies in the form of a qualifying insurance policy.

2.3 SEGMENT REPORTING

In terms of AS-17 on "Segment ReportingÂ the Company neither has more than one business segment nor more than one geographical segment requiring separate disclosure as there is no more distinguishable component or economic environment of an enterprise engaged in providing individual product or service or a group of related products or service and the same is not subjected to different risks and returns either of business or geographical segments.

2.4 PROVISION FOR WARRANTY

A provision of Rs. 170.00 Lacs (P.Y. Rs. 176.50 Lacs) has been recognized for expected warranty claims at 1% on products sold during the current fnancial year. The warranty claims are for the period of 12 months and hence it is expected that the expenditure towards warranty will be incurred in the next fnancial year.

2.5 RELATED PARTY TRANSACTIONS

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

A) Name of the related parties and nature of relationships :

a) Associates

(i) Elecon Engineering Company Limited

(ii) Elecon EPC Projects Limited

(iii) Wizard FinCap Limited

(iv) Eimco Elecon Electricals Limited

b) Individual having control/ signifcant infuence

(i) Prayasvin B. Patel (ii) M. G. Rao

c) Key management Personnel

(i) Prayasvin B. Patel (ii) M. G. Rao

d) Enterprises over which (b) or (c) above have signifcant infuence

(i) EMTICI Engineering Limited

(ii) Prayas Engineering Limited

(iii) Power Build Limited

(iv) Elecon Information Technology Limited

(v) Madhubhan Prayas Resorts Limited

(vi) Akkaish Mechatronics Limited

(vii) Speciality Woodpack Pvt. Limited

(viii) Elecon Peripherals Limited

(ix) Bipra Investment & Trusts Private Limited

(x) Devkishan Investments Private Limited

(xi) K. B. Investment Private Limited

(xii) Elecon Australia Pty. Limited

(xiii) Elecon Africa Pty. Limited

(xiv) Elecon Singapore Pte. Limited

(xv) Elecon Middle East FZCO

(xvi) Elecon Engineering (Suzhou) Co. Limited

(xvii) Elecon Transmission International Limited

(xviii) Power Build Transmission International Limited

(xix) Elecon UK Transmission Limited

(xx) Elecon USA Transmission Limited

(xxi) David Brown System Sweden AB, Sweden

(xxii) AB Benzlers, Sweden

(xxiii) Benzler Technisch Buro Aandrijftechniek B.V. (The Netherland)

(xxiv) Banzler Transmission A.S. (Denmark)

(xxv) Benzler Andtriebstech nik GmbH, Germany

(xxvi) OY Benzler AB (Finland)

(xxvii) Radicon Transmission (Thailand) Limited

(xxviii) Radicon Transmission System (Thailand) Limited

(xxix) Radicon Transmission (Australia) Pty. Limited

e) Collaborators

(i) Sandvik AB, Sweden

(ii) Tamrock Great Britain Holdings Limited, U.K.

2.6 In view of reclassifcation certain fgures of current year are not strictly comparable with those of previous year.

Mar 31, 2012

1. COMPANY OVERVIEW

Eimco Elecon (India) Ltd. is in business of Manufacturing of Equipment for Mining and Construction sector. The Company was incorporated in 1974 and it is situated at Vallabh Vidyanagar, Gujarat - 388 120.

Terms / Rights attached to Shares

The Company has only one class of shares referred to as 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 dividend in Indian rupees. The dividend proposed by Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March, 2011 the amount of per share dividend recognized as distribution to equity shareholders was Rs 4/-.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amount exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

2.1 CONTINGENT LIABILITY AND COMMITMENT

(a) Contingent Liabilities not provided for (Rs in lacs)

Particulars 2011-12 2010-11

Guarantees Issued By Banks 1978.38 1841.65

LC opened but goods yet to be received 366.76 249.19

Income tax demand disputed by the Company 262.17 179.88

Sales Tax Demand Disputed by the Company 27.42 27.42

Excise & Service tax Demand Disputed by the Company 1468.47 1367.04

(b) Commitment:

Estimated amount of contracts remaining to be executed on Capital Account is Rs 668.88 Lacs (P.Y. Rs NIL )

2.2 The Company has entered into an Agreement with Sandvik Asia Pvt. Ltd. Pune for sale of Surface Drilling Product line for a total consideration of Rs 1650 lacs. In view of the same, the company has written off inventory of Rs 751.17 Lacs pertaining to the above. The Company has shown the same as Exceptional item (Net) of Rs 898.83 lacs after adjusting the cost of inventory.

2.3 The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with insurance companies in the form of a qualifying insurance policy.

2.4 SEGMENT REPORTING

In terms of AS-17 on "Segment Reporting" the company neither has more than one business segment nor more than one geographical segment requiring separate disclosure as there is no more distinguishable component or economic environment of an enterprise engaged in providing individual product or service or a group of related products or service and the same is not subjected to different risks and returns either of business or geographical segments.

2.5 PROVISION FOR WARRANTY

A provision of Rs 176.50 Lacs (P.Y. Rs 184.44 Lacs) has been recognized for expected warranty claims at 1% on products sold during the Current financial year. The warranty claims are for the period of 12 months and hence it is expected that the expenditure towards warranty will be incurred in the next financial year.

2.6 DERIVATIVE INSTRUMENTS

(a) During the year the Company has not entered into any forward contracts to offset foreign currency risk arising from the amounts denominated in currencies other than the Indian rupees. Hence there is no outstanding as at the year end.

2.7 RELATED PARTY TRANSACTIONS

Related Party Disclosures as required by Accounting Standard (AS) 18 are given below: A) Name of the related parties and nature of relationships :

a) Associates and Joint Ventures

(i) Elecon Engineering Company Limited

(ii) Wizard FinCap Limited

(iii) Eimco Elecon Electricals Limited

b) Individual having control/ significant influence

(i) Mr. Prayasvin B. Patel

(ii) Mr. A. M. Deshpande

(iii) Mr. M. G. Rao

c) Key management Personnel

(i) Mr. Prayasvin B. Patel

(ii) Mr. A. M. Deshpande

(iii) Mr. M. G. Rao

d) Enterprises over which (b) or (c) above have significant influence

(i) EMTICI Engineering Limited

(ii) Prayas Engineering Limited

(iii) Power Build Limited

(iv) Narmada Travel Services Limited

(v) Elecon Information Technology Limited

(vi) Madhubhan Resorts & Spa

(vii) Akkaish Mechatronics Limited

(viii) Specialty wood pack Pvt. Limited

(ix) Elecon Peripherals Limited

(x) Bipra Investment & Trusts Private Limited

(xi) Devkishan Investments Private Limited

(xii) K. B. Investment Private Limited

(xiii) Elecon Australia Pty. Limited

(xiv) Elecon Africa Pty. Limited

(xv) Elecon Singapore Pte. Limited

(xvi) Elecon Middle East FZCO

(xvii) Elecon Engineering (Suzhou) Co. Limited

(xviii) Elecon Transmission International Limited

(xix) Power Build Transmission International Limited

(xx) Elecon UK Transmission Limited

(xxi) Elecon USA Transmission Limited

(xxii) David Brown System Sweden AB, Sweden

(xxiii) AB Benzlers, Sweden

(xxiv) Benzler Technisch Buro Aandrijftechniek B.V ( The Netherland )

(xxv) Banzler Transmission A.S ( Denmark )

(xxvi) Benzler Andtriebstech nik GmbH, Germany

(xxvii) OY Benzler AB ( Finland )

(xxviii) Radicon Transmission ( Thailand ) Limited

(xxix) Radicon Transmission System ( Thailand ) Limited

(xxx) Radicon Transmission (Australia) Pty. Limited

e) Collaborators

(i) Sandvik AB Sweden

(ii) Tamrock Great Britain Holdings Limited

2.8 In view of reclassification certain figures of current year are not strictly comparable with those of previous year.

Mar 31, 2010

(1) Estimated amount of contracts remaining to be executed on Capital Account Rs. 34 lacs

Particulars Rupees Rupees

Gurantees Issued By Banks 124,930,289 90,828,491

LC opened but goods yet to be receicved 80,749,052 47,763,394

Income tax Demand Disputed by the Company 16,713,882 23,713,135

Sales Tax Demand Disputed By the Company 20,944,190 2,742,317

Excise Demand Disputed By the Company 17,823,858 17,772,265

(2) Contingent Liabilities Not Provided For Product warranty expenses are determined based on CompanyÃs historical experience and estimates are accrued in the year of Sale.

(3) The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each year of service. The scheme is funded with insurance company in the form of a qualifying insurance policy.

The following tables summarise the components of net benefit expense recognised in the Profit and Loss Account and the funded status and amounts recognised in the Balance Sheet for the respective plans.

4. SEGMENT REPORTING

In terms of AS-17 on " Segment Reporting " the company neither has more than one business segment nor more than one geographical segment requiring separate disclosure as there is no more distinguishable component or economic environment of an enterprise engaged in providing individual product or service or a group of related products or service and the same is not subjected to different risks and returns either of business or geographical segments.

5. PROVISION FOR WARRANTY

A provision of Rs.1,62,23,616/- ( P.Y Rs.71,85,687/- ) has been recognised for expected warranty claims at 1% on products sold during the Current financial year. The warranty claims are for the period of 12 months and hence it is expected that the expenditure towards warranty will be incurred in the next financial year.

6. The Company has not received any intimation from Suppliers regarding their status under Micro and Medium Enterrprises Development Act, 2006 and hence disclouser, if any, relating to amounts unpaid as at year end together with interest paid/payable as required under the said Act have not been given.

A Micro, Small and Medium industrial undertaking has the same meaning as assigned to it under section 3 of the Industries (Development and Regulation) Act,1951.

7. Figures of the previous year have been shown in brackets.

8. Figures of the Previous Year have been regrouped / re-arranged wherever necessary to confirm to current yearÃs classifications.

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