1.  Employee Benefits
 
 The Company has, with effect from January 1, 2007, adopted Accounting
 Standard 15 (Revised) [AS- 15(Revised)] on employee Benefits.
 Consequently, the additional liability for employee benefits based on
 actuarial valuation as at January 1, 2007 as per AS-15 (Revised),
 amounting to Rs. 89 (000s) has been adjusted against General Reserve
 as at January 1, 2007.
 
 (C) The liability for leave encashment as at the year end is Rs.
 4,072,421.
 
 In accordance with AS-15 (Revised), the Company has provided leave
 encashment on the basis of actuarial valuation at the year-end as
 against the earlier policy of providing leave encashment based on
 unavailed leave balance to the credit of employees at the year-end. Had
 the Company provided leave encashment on the earlier basis, loss for
 the year would have been higher by Rs. 200 (000).
 
 This being the first year of implementation of revised AS-15 (Revised),
 previous year figures have not been given.
 
 2. The Company is eligible to claim refund of excise/ customs duty paid
 on material sold pursuant to contracts entered with certain customers.
 As at December 31, 2007, benefit receivable on deemed exports includes
 Rs.  31,032 (000s) for which the Company has applied/is in process of
 filing application with government authorities for claiming such
 refunds. However, eventual recovery of the aforesaid refund is
 dependent on completion of certain formalities and submission of
 certain documents.
 
 Note:
 
 a) Provision for Indirect Tax Matters represents estimates made for
 probable liabilities arising out of pending disputes/ litigations with
 various authorities. The timing of the outflow with regard to the said
 matters depends on exhaustion of remedies available to the Company
 under the law and hence the Company is not able to reasonably ascertain
 the timing of cash outflow.
 
 b) Warranty covers the expenses related to repairing and maintenance of
 detectors and cylinders sold as per the terms of the contract entered
 into by the Company with its Customers. Future Cash Flows in respect of
 the same is expected to occur over the period of warranty.
 
 Note:
 
 On consideration of prudence, the deferred tax asset is recognised only
 to the extent of deferred tax liability.
 
 (b) The Company is yet to commence an independent review for assessing
 compliance with Transfer pricing Rules, 2001 issued by the Central
 Board of Direct Taxes, India. On the basis of self assessment of the
 operations during the year, the Management does not expect any
 deviation from the requirements of the aforesaid Transfer Pricing
 Rules.
 
 3.  Segment Information:
 
 Primary Segment
 
 In accordance with Accounting Standard 17 Segment Reporting, the
 Company has determined its business segment as manufacture, erection
 and commissioning of Fire Protection System and supply of related
 components and spare parts.  There are no other primary reportable
 segments. Accordingly, the segment revenue, segment result, total
 carrying amount of segment assets, total carrying amount of segment
 liabilities, total cost incurred to acquire segment assets, total
 amount of charge for depreciation during the year are as reflected in
 the Financial Statements as of and for the year ended December 31,2007.
 
 Secondary Segment
 
 The performance of the Company is mainly driven by the sales made
 locally and hence, no separate geographical segment is identified.
 
 4.  Related Party Disclosure:
 
 Related Party Disclosures as required by Accounting Standard 18,
 Related Party Disclosures are given below:
 
 I Ultimate Holding Company
 
 United Technologies Corporation Inc., U.S.A.
 
 II Enterprises having control over the Company
 
 Kidde Pic, U.K.
 
 Kidde International Limited, U.K.
 
 III Enterprises under common control
 
 Kidde Fire Fighting
 
 Angus Fire
 
 Chemetron Fire Systems
 
 Kidde Italia, S.p.a.
 
 Kidde Fenewal, Inc.
 
 Detector Electronics Corporation.
 
 Kidde Fire Protection Limited
 
 Autronica Fire and Security AS, Norway
 
 Kidde Denmark A/S (formerly Ginge-Kerr Denmark A/S)
 
 Kidde Deugra Brandschutz System-GmBH
 
 Kidde Asia Pte Limited
 
 Kidde Finance Limited, U.K.
 
 Guardfire Limited
 
 Kidde Middle East
 
 Carrier AirConditioning & Refrigeration Limited
 
 Chubb Hongkong Limited
 
 Chubb Alba Control Systems Limited
 
 Chubb Protection Corporation
 
 Chubb Singapore Pte Limited
 
 IV Key Management Personnel
 
 Mr. Nikhil Pathak - Managing Director (w.e.f. November 15, 2006) Mr.
 Devendra Mehta - Finance Director (w.e.f. November 8, 2006)
 
 5.  In view of the erosion of net worth of the Company arising from
 operating losses, Kidde International Limited, U. K., the holding
 company, has informed the Company of its intention to continue to
 support the operations of the Company and accordingly, the financial
 statements have been prepared on going concern basis.
 
 6.  These accounts have not been authenticated.by whole-time company
 secretary as the Company has not appointed a new whole-time company
 secretary.
 
 7.  Sundry Creditors as at December 31, 2007 include amount of Rs.
 5,110 (000s) [Previous Year: Rs. 4,289] which are outstanding for more
 than three years. The Management has initiated the process of
 reconciliation and no material adjustments are anticipated on
 completion of reconciliation by the Management.
 
 8.  There are no delays in payment to Micro and Small enterprises as
 required to be disclosed under the Micro, Small and medium Enterprises
 Development Act, 2006.
 
 The above information and that given in Schedule -10 Current
 liabilities and provision regarding Micro and Small Enterprises has
 been determined to the extent to such parties have been identified on
 the basis of information available with the Company. This has been
 relied upon by Auditors.
 
 9.  Disclosures pursuant to Accounting Standard (AS) 7 (Revised)
 
 i) Contract Revenue recognised for the year ended December 31, 2007 is
 Rs. 636,697 (000s) [Previous Year Rs, 454,194 (000s)].
 
 ii) Aggregate amount of contract costs incurred and recognised profits
 (less recognised losses) up to December 31, 2007 is Rs. 1,666,098
 (000s) [Previous Year Rs. 1,487,964 (000s)].
 
 iii) Amount of customer advance outstanding for Contracts in progress
 as at December 31, 2007 is Rs. 32,946 (000s) [Previous Year Rs. 26,491
 (000s)].
 
 iv) Retention amounts receivable from customers for contracts in
 progress as at December 31, 2007 is Rs. 144,357 (000s) [Previous Year
 Rs. 94,212 (000s)].
 
 10.  Previous years figures have been regrouped and rearranged,
 wherever necessary.
 
 11.  Refer Annexure for additional information pursuant to Part IV of
 Schedule to the Act.