The light coming one with the engine does show that there is a problem with the charging system but there can be other problems where the light will be off and the alternator still not work.
Normally there will be a resistor inside the alternator between the #1 terminal and the alternator case if the alternator is designed to be used with a light. Since the resistor is not used if the alternator is used with an ammeter it is quite possible to see them used in applications with a light. The alternator will work okay with the exception that the light will not be as bright with the switch on and the engine not running. In this situation if the field circuit from the #1 terminal though the bush, the rotor winding, the second brush and back to the regulator should become open the alternator will stop charging but the light will not come on. In this case the light will now longer come on with the switch on and engine not running.
If the diode trio fails with open diodes it is possible for the alternator to continue to charge even though the light will be on. The alternator output will be somewhat limited due to the voltage drop through the indicator lamp. If a tractor is wired with a diode rather than a light it is quite possible to have this type of diode trio failure and never notice a problem since the field coil will continue to be powered through the external diode. This problem was mentioned in an earlier post where the #1 circuit will have several amps flowing through it with no indication of an alternator problem
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