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
(c) The Company has issued Ordinary Shares having a face value of Rs 10/- each. Each holder of
Ordinary Shares is entitled to one vote per share. The Company declares dividend in Indian rupees. The
dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual
(d) In the event of liquidation of the Company, the holders 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.
d) 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, 2016 amounts to Rs. 2,99,61,705/- ( 2015 - Rs.
2,78,45,752/- ). A total sum of Rs. 5,67,69,560/- (NIL amount 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.
e) 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.
1,04,19,521/- have been incurred against earlier provisions and Rs. 1,12,00,000/- have been provided.
f) Research and Development Expenses
Research and Development Expenses relating to revenue nature aggregating to Rs. 100.66 lacs (2015 - Rs.
71.03 lacs) have been charged to respective heads of accounts in the Statement of Profit and Loss and
relating to capital nature aggregating to Rs. 60.02 lacs (2015 - Rs. 10.75 lacs) under different heads in
Fixed Assets in the Balance Sheet.
k) Disclosure pertaining to Corporate Social Responsibility expenditures as per section 135 of the
Companies Act, 2013:
- Gross amount required to be spent by the Company during the year : Rs 48,23,453/
- Amount spent by the Company : Rs. 5,00,000/-
- The Company is primarily 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 are no business segment.
The primary segment is geographical based on location of customer, i.e domestic and export sales.
- The segment wise revenue and assets figures relate to amounts directly identifiable to each of the
segments. The operating facilities of the Company are situated in India and are common for production of both
domestic and export market.
s) Previous year''s figures have been rearranged / regrouped wherever found