Cost of Product Warranties including provisions are included under the
 head Miscellaneous Expenses, which includes cost of raw materials
 and components for free replacement of spares, and other overheads.
 
 (a) The Company has issued ordinary shares having a face value of Rs
 10/- each. Each holder of ordinary share is entitled to one vote per
 share. The Company declares dividends in Indian rupees. The dividend
 proposed by the Board of Directors is subject to the approval of the
 shareholders at the Annual General Meeting.
 
 (b) In the event of liquidation of the company, the holder of ordinary
 shares will be entitled to receive any of the remaining assets of the
 company after distribution of all preferential amounts. The
 distribution will be in the proportion to the number of ordinary shares
 held by the shareholders.
 
 Note A - Others represent Term Loan comprising of two loans amounting
 to Rs. 15 crores each, repayable as under :
 
 i) Term Loan of Rs. 15 crores repayable in three equal installments of
 Rs. 5 crores each on 20.10.2013, 20.10.2014 and 20.10.2015.
 
 ii) Term Loan of Rs. 15 crores repayable in two equal installments of
 Rs. 7.50 crores each on 20.06.2013 and 20.09.2013.
 
 5 DEFERRED TAX LIABILITIES (Net)
 
 In compliance with the Accounting Standard 22 on Accounting for Taxes
 on Income issued by the Institute of Chartered Accountants of India,
 the Company has adjusted the Deferred Tax Liability (net) of Rs.
 45.59,217/- for the year has been recognized in the Profit and Loss
 Account. The Deferred Tax Liability (net) comprises of:
 
 As required to be disclosed under the Micro, Small and Medium
 Enterprises Development Act, 2006 and to the extent such parties are
 identified on the basis of information available with the Company,
 there are no Micro enterprises or Small Scale enterprises to whom the
 Company owes any due which are outstanding as at 31st March, 2012;
 (2011 - Rs Nil).
 
 c) Accrued liability on account of Gratuity payable to the employees of
 the Company on retirement at future dates as per actuarial valuation as
 at 31st March, 2012 amounts to Rs. 2,19,47,713/- ( 2011 - Rs.
 2.15,05,000/- ). A total sum of Rs. 4,79,06,560/- (including Rs.
 35.00,000/- during the current year) has been charged in the Financial
 Statements and paid to LICI by way of premium under Group Gratuity
 Scheme for its employees to cover current as well as past liability.
 
 d) Warranty costs are accrued at the time the products are sold. Based
 on past experience, the provision is discharged over the contractual
 warranty period from the date of sale. During the year, Rs. 72.50.892/-
 have been adjusted against the earlier provisions and Rs. 89,25,000/-
 have been provided afresh.
 
 e) Research and Development Expenses
 
 Research and Development Expenses relating to revenue nature
 aggregating to Rs. 66.97 lacs (2011- Rs. 59.80 lacs) have been charged
 to respective heads of accounts in the Statement of Profit and Loss,
 and relating to capital nature aggregating to Rs. Nil (2011- Rs. 28.17
 lacs) have been debited to different heads in Fixed Assets in the
 Balance Sheet.
 
 f) Segment Reporting :
 
 The Company is engaged in the business of design, development,
 manufacture, marketing, installation and servicing of vertical and
 horizontal pumps of various sizes required for lift irrigation/major
 irrigation schemes, thermal/nuclear power plants etc. and accordingly
 there is no business segment. The provisions of reporting of
 geographical segments based on location of customers, i.e. domestic and
 export as per Accounting Standard 17 does not apply, and hence not
 reported here.
 
 Previous year''s figures have been rearranged/regrouped wherever found
 necessary.-