1. Contingent liabilities not provided in respect of:
(i) taxation matters in dispute pending at various stages of appeal Rs.
63,823,099 (previous year - Rs. 42,271,000);
(ii) claims against the Company not acknowledged as debts Rs.5,970,000
(previous year - Rs. 5,481,000);
(iii) bills discounted/cheques purchased with banks Rs. 25.546,920
(previous year - Rs. 20,281,403);
(iv) excise matters - Rs. 58,200,000 (previous year - Rs. 49,975,869);
2. Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs. 73,854,594 (previous year - Rs.
3. Guarantees amounting to Rs. 922,356,457 (previous year - Rs.
934,906,075) have been given by the bankers on behalf of the Company,
and are secured by the hypothecation of stocks (including loose tools,
stores and spares) and book debts.
4. Repairs to machinery include Rs. 24,129,816 (previous year - Rs.
25,896,138) spares consumed.
1. As the Company also sells as spare parts/ ancillary equipment (for
goods manufactured and sold by it), some of its bought- out components,
the items shown above as consumption include cost of such items sold,
this being an activity ancillary to its manufacturing activity.
2. The Company is of the opinion that the purchase & sale of such
bought-out components is a part of its activity to manufacture and
deliver a complete pump unit and, therefore, is not a trading activity
as referred to in paragraph 3(ii)(b) of Part 11 of Schedule VI to the
Companies Act, 1956, requiring the disclosure of quantitative details
in respect of opening stocks, purchases and closing stocks of such
items. Quantitative details and values of such sales have been included
in Note 14.
3. The consumption figures in value are balancing figures ascertained
on the basis of opening stocks plus purchases less closing stocks and
therefore, include adjustments for excesses and shortages ascertained
on physical count, etc.
4. * The quantity consumed includes scrap internally generated by
other units and used by the Foundry Divisions, to which no value is
Note : Components and spare parts referred to in para 4 (D) (c) of Part
11 of Schedule VI of the Companies Act, 1956, are interpreted to mean
the components and spare parts which are incorporated in the products
sold and not those used for the maintenance of plant and machinery.
* Under a notification dated July 25,1991 issued by the Ministry of
Industry, the Company''s industrial undertakings are exempt from the
licensing provisions of the Industries (Development and Regulation)
Act,1951.ln accordance with the said notification memoranda have been
filed with the Department of Industrial Development (Secretariat of
Industrial Approvals). ** Represents registered capacity,with the
Department of Industrial Development.
1. Opening stock indludes a) Nil pumps (Previous year -79 Pumps)
Scrapped/ written off during the year.
2. Production includes
a) 3,600 valves ( previous year - 3,282 valves ) meant for captive
b) Nil pump ( previous year - 3 pumps) meant for captive consumption.
3. Sales exclude
a) 251 pumps (previous year -105 pumps) and 312 valves ( previous year
- 261 valves) given as free replacement.
b) 6 pumps ( previous year - 114 pumps) lost in transit during the
c) 1025 pumps ( previous year - 1,256 pumps ) manufactured on behalf of
the Company by a third party given as free replacement..
d) 78 pumps for resale (previous year Nil pumps) scrapped/ written off.
e) 3 pumps for resale ( previous year Nil pumps) lost in transit during
5. Production includes 46,522 pumps (previous year 46,008 pumps)
manufactured on behalf of the Company by a third party.
6. The Company sells as spare parts a proportion of its manufactured
components. The Company considers a component as meant for sale only
when it is actually sold or transferred to the marketing offices for
sale. The manufactured components sold during the year are 226,445
numbers (previous year - 210,211 numbers). It is not practicable to
furnish quantities information in respect of stock of spares in view of
considerable number of items diverse in size and nature.
7. In respect of Power Driven Pumps, whilst the components .including
motors are invoiced on delivery & the value reflected in the turnover
of the year of delivery or in closing stock, as the case may be , for
the purpose of quantitative information a Power Driven Pump is treated
as having being produced / sold during the year in which the main
component i.e. the pump is produced and sold respectively.
8. The quantity disclosed under production for castings is the
quantity sold, as the Company considers production meant for sale
only when it is sold.
9. Research and Development expenditure debited to the Profit and
Loss Account aggregating Rs. 1,069,200 (previous year - Rs. 4,748,150)
has been incurred by the Company and disclosed under appropriate
10. The net exchange differences arising during the year recognised
appropriately in the profit and loss account - net loss- Rs. 13,270,612
(previous year - net gain Rs. 29,821,365.