ICSA (INDIA) LIMITED (the "company") The company is engaged in the business of Rural Electrification, Construction of Sub stations, Conversion of LT line to HT lines etc and engaged in the business of providing energy Audit solutions to bring down Transmission & Distribution (T&D) losses by using its technologies for power distribution companies and also engaged in the business of development and maintenance of technology solutions which includes embedded solutions and software for Power, Oil, Gas and other sectors. The company registered office at Plot no.12, Software units layout , Cyberabad, Hyderabad-500081, Telangana.

a) Loans and advances, Sundry Debtors, Sundry Creditors and other Advances are subject to confirmation and reconciliation from the concerned parties. During the accounting period some of the projects were cancelled by the customers and invoked Bank Guarantees and the amounts were adjusted towards the Risk and Cost. The receivables and advances which are not recoverable have been written off of provided during the accounting period.

b) Foreign Currency Convertible Bonds (FCCBs) issue expenses are being writen off in proportion to conversion of FCCBs into Equity Shares or repayment of such FCCBs (as the case may be) as and when such conversion/ repayment takes place.

c) Inventory is valued at cost or net realisable value, whichever is lower on FIFO basis. Inventories has been physically verified by the management and valued by the management. The diminution in the inventories on account of very slow in the progress in the completion of the projects amounting to Rs.3221.69 Lakhs has been written off during the accounting period and the same have been accounted under the consumption of the raw materials and changes in the work-in-progress/finished goods.

d) The appointment of and payment of remuneration to Dr.TVS Prasad, Executive Director w.e.f. 15.05.2012 has been declined by the Government of India and the salary Rs.7.85 Lakhs paid during the year (previouns accounting period Rs.13.76 Lakhs) has been considered under advance. The company once again approached the Government of India for approval of salary for Executive Director, the approval of which is yet to be received. Dr. TVS Prasad has resinged from the directorship w.e.f.24.03.2014.

e) Consolidated Accounts with the accounts of Subsidiary i.e. ICSA International Pte Limited

ICSA International Pte Limited have been dissolved vide the letter dated 21.11.2014 of Accounting and Corporate Regulatory Aauthority (ACRA), Singapore and hence the consolidaed accounts has not been prepared for the year.

f) Segment Information:

The company has identified three reportable segments Viz. contracts and services, Embeded solutions and software services and Power Generation. Segments have been identified and reported taking in to account nature of products and services. The accounting policies adopted for segment reporting are in line with the accounting policy of the company.

g) Deferred Tax has not been provided, as there is no certainty of taxable profits in the near future.

h) CDR package

The CDR package sanctioned by the banks on 16.03.2012, could not be implemented as per the sanctioned terms and correspondingly the banks have revoked the package in November 2013.

i) Sickness of the company

The reference made by the company to the Hon'ble Board for Industrial and Financial Reconstruction (BIFR) and the same has been registered vide case no.70/2013 and the company has been declared as Sick u/s.3(1)(o) of Sick Industrial Companies (Special Provisions) Act, 1985 on 12.02.2014. The company has submitted the Draft Rehabilitaion Scheme (DRS), which is yet to be considered.

j) The previous accounting period figures are regrouped / reclassified wherever necessary.