Lakshmi Machine Works

1.  Estimated amount of Contracts remaining to be executed on Capital
 account and not provided for net of advances is
 Rs.34,171,753/-.(Previous Year Rs.393,707,088/-)
 
 2.  (a) The Company gives warranties for its products undertaking to
 repair or replace the items that fail to perform satisfactorily during
 the warranty period. Provisions made at the end represents the amount
 of expected cost of meeting such obligations of
 rectification/replacments. The timing of the outflows is expected to be
 within a period of one year.
 
 3.  During the year, the Company has changed the basis of valuation of
 Inventories from Standard Cost to Weighted Average Cost. As a result
 the value of Inventories and the Profit for the year are more by
 Rs.43,983,774/-
 
 4.  Revenue Expenditure on Research & Development amounting to Rs.9.47
 crores (Previous Year Rs. 12.42 Crores) has been charged to Profit and
 Loss Account and Capital expenditure relating to Research and
 Development amounting to Rs.5.35 Crores (Previous Year Rs. 14 Crores)
 has been included in Fixed Assets.
 
 5.  The previous years figures have been reworked, regrouped,
 rearranged and reclassified wherever necessary.