Notes to Accounts of Ankit Metal & Power Ltd.

Mar 31, 2023

i) Accounting of Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. Contingent liabilities are recognised only when there is a possible obligation arising from past events, due to occurrence or non-occurrence of one or more uncertain future events, not wholly within the control of the Company, or where any present obligation cannot be measured in terms of future outfl ow of resources, or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for. Contingent assets are not disclosed in the financial statements unless an inflow of economic benefits is probable.

j) Revenue Recognition

Revenue is recognised to the extent it is probable that the economic benefits will flow to the company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.

Domestic sales are recognised at the time of dispatch of materials to the buyer. Export sales are recognised on the issue of bill of lading. Export Incentives arising out of Export Sales are accounted for on accrual basis.

Purchases are inclusive of freight and net of Input Tax Credit, Trade Discount and Claims.

k) Recognition of Dividend Income, Commission Income, Interest Income or Expenses

Dividend income is recognised in profit or loss on the date on which the Company''s right to receive payment is established.Income from commission is recognised based on agreements/arrangements with the customers as the service is performed using the proportionate completion method, when no significant uncertainty exists regarding the amount of the consideration that will be derived from rendering the service. Interest income or expense is recognised using the effective interest method.

l) Leases

Leases of property, plant and equipment that transfer to the Company substantially all the risks and rewards of ownership are classified as finance leases. The leased assets are measured initially at an amount equal to the lower of their fair value and the present value of the minimum lease payments. The minimum lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in the Statement of Profit and Loss. Assets held under leases that do not transfer to the Company substantially all the risks and rewards of ownership (i.e. operating leases) are not recognised in the Company''s Balance Sheet. Payments made under operating leases are recognized in the Statement of Profit or Loss on a straight-line basis over the term of the lease unless the payments to the lessor are structured to increase in line with general inflation.

m) Income Tax

Income Tax expense comprises of current and deferred tax. Current tax and deferred tax is recognized in the statement of profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in OCI.

i. Current Tax

Current Tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance sheet date.

ii. Deferred Tax

Deferred Tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period.

n) Borrowing Costs

Borrowing Costs are interest and other costs incurred in connection with the borrowing of funds. Borrowing costs directly attributable to acquisition or construction of an asset which necessarily take a substantial period of time to get ready for their intended use are capitalised as part of the cost of that asset. Other borrowing costs are recognised as an expense in the period in which they are incurred. Where there is an unrealised exchange loss which is treated as an adjustment to interest and subsequently there is a realised or unrealised gain in respect of the settlement or translation of the same borrowing, the gain to the extent of the loss previously recognised as an adjustment is recognised as an adjustment to interest.

o) Earnings per Share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

p) Segment Reporting

The Company has identified Iron & Steel as the sole business segment and the same has been treated as primary business segment. The Company sells mostly within India and does not have operations in economic environments with different risks and returns, it is considered operating in single geographical segment. Hence, no further disclosure as required under the Indian Accounting Standard -108 " Operating Segments " as issued by the ''The Institute of Chartered Accountants of India''.

q) Expenditure on new projects & substantial expansion

Preliminary project expenditure, capital expenditure, indirect expenditure incidental and related to construction/ implementation, interest on term loans to finance fixed assets and expenditure on start-up of the project are capitalised upto the date of commissioning of project to the cost of the respective assets.

(B) Nature of Security

(i) Project Term Loans , Working Capital Term Loans, Funded Interest Term Loans and Working Capital Loan are pooled together and secured as under:

a) First pari-passu charge on fixed assets by way of equitable mortgage of the land & building / shed along with all movable and immovable plant & machinery and other fixed assets thereon at Chhatna Dist. Bankura.

b) First pari-passu charge on the entire Current Assets of the Company comprised of stock of raw materials, semi finished and finished goods and book debts, outstanding moneys, receivables, both present and future pertaining to the Company''s manufacturing units/divisions at Chhatna Dist. Bankura

c) Collateral Security equitable mortgage on office space at 20A Thacker House 35, C. R. Avenue, Kolkata standing in the name of Sarita Patni & Corporate office of the group at SKP House, 132A, S.P. Mukherjee Road, Kolkata - 700 026 being 1st,2nd,3rd and 5th Floor standing in the name of Marble Arch Properties Pvt Ltd on pari passu basis.

d) Personal guarantee of Promoters / Director - Mr. Suresh Kumar Patni, Mr. Rohit Patni, Mr. Ankit Patni & Mrs. Sarita Patni.

e) Corporate guarantee of the group companies - Vasupujaya Enterprises Pvt Ltd, Poddar Mech-Tech Services Pvt Ltd, Suanvi Trading & Investment Co. Pvt Ltd, Sarita Steel & Power Limited, Marble Arch Properties Pvt Ltd & pledge of 811.80 Lacs shares of Company in the name of promoters & group associates.

(ii) Unsecured Loans from Related Parties will be converted into equity shares in due course. The conversion price will be determined in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations.

(C) Various credit facilities availed from UBI, IOB, SBI, IDBI and Allahabad Bank have been assigned by the respective banks in favour of Asset Reconstruction Companies under various assignment agreements between the respective banks and Asset Reconstruction Companies. In absence of information about the terms of assignments, the Company is carrying the various credit facilities as appearing in the books and as per the previous terms with the respective banks.

On the basis of settlement agreement, the credit facilities availed from Andhra Bank (CC, WCTL, FITL) has been assigned to Alchemist Assets Reconstruction Company and it is appearing in the books of accounts as per the agreement.

(D) Pursuant to restructuring of the Company''s debts, the CDR Proposal as recommended by SBI was approved by CDR EG on 9th September, 2014 and communicated vide Letter of Approval dated 17th September, 2014, as amended/modified from time to time. Under CDR package, additional credit facilities have been sanctioned as set out in the said Letter of Approval. The CDR Package included reliefs/measures such as reduction in interest rates, funding of interest, rearrangement of securities etc.

During the past years, performance of the Company has been adversely affected mainly because of external factors beyond management control, due to which the Company was not able to meet the repayment terms as per the CDR Package. The Working Capital of the Company has been substantially depleted due to servicing of interest and repayment to the Banks and F inancial Institutions in earlier years. The same has also resulted in the ballooning of loan. As a result, the lenders of the Company have decided to exit the CDR scheme. Hence, the outstanding dues to Corporation Bank, Syndicate Bank and UCO Bank has been shown under "Current Maturities of Long Term Borrowings".

ADDITIONAL NOTES

Note: 28 The lenders have stopped charging interest on debts, since the dues from the Company have been categorised as Non-Performing Assets. In view of the above, pending finalization of the restructuring plan, the Company has not provided accrued interest in its books during the year and reversed interest provided in earlier period pertaining to the period the account was declared NPA by the respective lenders. Interest amounting to '' 15,563.02 Lakhs (penal interest and charges thereof remains unascertained) for the year ended 31st March, 2023 has not been provided for. The unprovided accumulated liability in respect of interest on Long term and Short term borrowings as on 31st March, 2023 amounted to K 95,913.89 Lakhs. The same have consequential impact on the reported figures.

In respect of credit facility availed from Andhra Bank assigned to Alchemist Asset Reconstruction Company Ltd (AARC), the company has defaulted in making repayment of loan as per the Restructuring Package. The company has written back '' 1,572.99 Lacs in earlier years on account of Restructuring Package. As per the terms of the agreeement, the restructuring package stands revoked without any notice if payment not made till 12th December, 2022. However, the company is in active discussion with the respective party regarding revival of the Restructuring Package. Accordingly, the company has not recognised liability in respect of principal amounting to '' 991.85 Lacs and in respect of Interest accrued till 31st March, 2023 amounting to '' 1389.35 Lacs.( including '' 43.37 lacs for the quarter ended 31st March, 2023).During the year UCO bank and Asset Care Reconstruction Company has filed application to National Company Law Tribunal (NCLT), Kolkata Bench under Section 7 of IBC Act,2016. The company is in active negotations with them to withdraw the applications and arrive at a mutual settlement.

Since the aforesaid known accounts had been declared Non-Performing Assets, the statement of stock and book debts are not submitted to banks or financial institution.

Note: 29 The Company has incurred loss of K 9,746.24 Lakhs for the year ended 31st March, 2023 and accumulated loss as on 31st March, 2023 is K 1,32,863.84 Lakhs which is in excess of the entire net worth of the Company. With the substantial improvement in raw material availability, improvement in market scenario with notification of Minimum Import Price on steel, it is expected that the overall financial health would improve considerably. Considering the above developments and favorable impact thereof on the Company''s operations and financials, the Company has prepared the financial results on the basis of ''Going Concern'' assumption.

Note: 30 Contingent Liabilities not provided for in the Books of Accounts :

a) Right to Recompense to CDR Lenders for the relief and sacrifice extended, subject to provisions of CDR Guidelines, amounting to '' 48,176.00 Lakhs (P.Y K 48,176.00 Lakhs).

b) Relating to earlier assessment years a demand of K 26,594.57 Lakhs (P.Y K 62,672.38 Lakhs) was raised by the Income Tax Department against which the Company has filed appeals.

c) Relating to earlier financial years a demand of K 3,676.78 Lakhs (P.Y K 3,676.78 Lakhs) were raised by the CESTAT department against which appeals has been filed by the Company.

d) Relating to earlier financial years a demand of K 8,207.82 Lakhs (P.Y K 8,207.82 Lakhs) respectively were raised by the Sales Tax Department against which appeals has been filed by the Company.

e) Claims against the Company not acknowledged as debts K 2,559.86 Lakhs (P.Y K 2,688.83 Lakhs).

f) The Ministry of Railway issued a Show Cause Notice in respect of Evasion of Freight on loading of Iron-ore at a concessional rate & the penalty on such thereof amounting to K 4,162.19 Lakhs (P.Y K 4,162.19 Lakhs). The Company has filed a writ petition in the High Court in the year 2013 for issuing an unjustified notice.

Note: 31 In the opinion of the management, current and non current asset have a value of realisation in the ordinary course of business at least equal to the amount at which they are stated in the accounts.

Note: 32 Certain balances of "Trade Receivables", "Trade Payables", "Borrowings", "Advances from Customers", "Advances Recoverable In Cash or Kind" and "Advance to Suppliers and Other Parties" includes balances remaining outstanding for a substantial period. The balances are subject to confirmations and reconciliations. The Balance with revenue authorities are subject to final assessment order and/or submission of returns .The reported financials might have consequential impact once the confirmations are received and reconcilition if any is made. Pending such confirmations and reconciliations, the management has made a provision/(reversal) for doubtful debts for K188.79 Lakhs (P.Y. K 10.73) Lacs on trade recievables/ advances recoverable in cash or kind as per the expected credit loss policy.

Note: 33 As per consistent practice, the Company has charged off the expenses incurred for captive power generation in the natural heads of account.

Note: 34 Disclosure pursuant to Ind AS- 19 ” Employee Benefits” :

a. Defined Benefits - Gratuity

The Company''s gratuity benefit scheme for its employees in India is a defined benefit plan (funded).

The Company provides for gratuity from employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of completed service.

The present value of obligation is determined based on the actuarial valuation using the Projected Unit Credit Method as on 31st March, 2023 which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The Company''s gratuity expense is recognized under the head - "Employee Benefit Expense" in Note No. 24.

These defined benefit plans expose the Company to actuarial risks, such as interest rate risk, liquidity risk, salary escalation risk and regulatory risk.

The Company''s principal financial liabilities comprise loans and borrowings, trade payables and other payables in domestic currency. These financial liabilities are incurred mainly to finance the Company''s operations. The Company''s principal financial assets include investments, loans, trade and other receivables and cash and other bank balances that derive directly from its operations.

The Company has exposure to the following risks from financial instruments presently in use:

- Credit Risk

- Liquidity Risk

- Market Rate Risk

The Board of Directors has overall responsibility for the Company''s risk management framework. The Company''s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed by the management regularly to reflect changes in the working conditions.

Credit Risk Management

Credit Risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and loans. In addition, credit risk arises from finance guarantees.

Company''s credit risk arises principally from the trade receivables and cash & cash equivalents.

Customer credit risk is managed centrally by the Company through credit approvals establishing credit limits and continuously monitoring the credit worthiness of the customers to whom the credit is extended in the normal course of business. The concentration of credit risk is limited due the fact that the customer base is large and unrelated. The Company estimates the Expected Credit Losses on the basis of its evaluation of each case. Provision is being made as per the Company''s expected credit loss policy in the manner mentioned below:

Overdue for more than 1 year but not more than 2 years: 5%

Overdue for more than 2 years but not more than 4 years: 15%

Overdue for more than 4 years: 50%

followed by further provision on year to year basis based on the management evaluation of each case.

Credit risks from balances with banks are managed in accordance with the Company''s policy.

The fundamental goals of capital management are to:

- safeguard their ability to continue as a going concern, subject to Note No. 29 so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital.

The Board of Directors has the primary responsibility to maintain a strong capital base and reduce the cost of capital through prudent management of deployed funds and leveraging opportunities in domestic and international financial markets so as to maintain investor, creditor and market confidence and to sustain future development of the business.

For the purpose of Company''s capital management, capital includes issued capital and all other equity reserves. The Company manages its capital structure in light of changes in the economic and regulatory environment and the requirements of the financial covenants. The Company applied the same capital risk management strategy that was applied in the previous period.

The Company manages its capital on the basis of net debt to equity ratio which is net debt (total borrowings net of cash and cash equivalents) divided by total equity.

Note: 45 Previous year''s figures have been regrouped/restated wherever necessary to confirm with this year''s classification.

As per our report of even date.

For J.B.S & Company For and on behalf of Board of Directors

Chartered Accountants FRN.: 323734E

Subham Bhagat

(Chairman cum Managing Director)

Gouranga Paul

Partner

Membership No. 063711

Place: Kolkata Vishal Shah Vipul Jain

Date: 30th June, 2023. (Company Secretary) (Chief Financial Officer)

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Mar 31, 2015

1. Terms/Rights attached to Equity Shares

The Company has only one class of Equity Shares having a par value of Rs. 10/- per share. Each shareholder is eligible for one vote per share held and in case of poll, the voting rights of every member shall be in proportion to his shares of the paid-up Equity Share capital of the Company.

2. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

3. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

4. Working Capital Term Loan (WCTL) :

Upon implementaion of the CDR Package (Refer Note 28), the overdrawn portion of the Cash Credit Accounts of the Company has been carved out into separate Working Capital Term Loans (WCTL).

5. Funded Interest Term Loan (FITL) :

Upon implementaion of the CDR Package (Refer Note 28), funding of interest has been provided for:

* Interest on existing term loans for a period of 24 months from the Cut-Off Date i.e from February 01, 2014 to January 31, 2016;

* Interest on WCTL for a period of 24 months from the Cut-Off Date i.e from February 01, 2014 to January 31, 2016;

* Interest on residual cash credit limit for a period of 9 months from the Cut-Off Date i.e February 01, 2014 to October 31, 2014

6. Nature of Security :

(i) In terms of the CDR package, Project Term Loans, Working Capital Term Loans, Funded Interest Term Loans and Working Capital Loan (Refer Note 8) are pooled together and secured as under:

7. First pari-passu charge on fixed assets by way of equitable mortgage of the land & building / shed along with all movable and immovable plant & machinery and other fixed assets thereon at Chhatna Dist. Bankura.

8. First pari-passu charge on the entire Current Assets of the Company comprised of stock of raw materials, semi finished and finished goods and book debts, outstanding moneys, receivables, both present and future pertaining to the Company's manufacturing units/divisions at Chhatna Dist. Bankura.

9. Collateral Security equitable mortgage on office space at 20A Thacker House 35, C. R. Avenue, Kolkata standing in the name of Sarita Patni & Corporate office of the group at SKP House, 132A, S.P. Mukherjee Road, Kolkata - 700 026 being 1st, 2nd, 3rd and 5th Floor, standing in the name of M/s. Marble Arch Properties Pvt. Ltd. on pari passu basis.

10. Personal guarantee of Promoters / Director - Mr. Suresh Kumar Patni, Mr. Rohit Patni, Mr. Ankit Patni & Mrs. Sarita Patni.

11. Corporate guarantee of the group companies - M/s. Vasupujaya Enterprises Pvt. Ltd., M/s. Poddar Mech Tech Services Pvt. Ltd., M/s. Suanvi Trading & Investment Co. Pvt. Ltd., M/s. Sarita Steel & Power Ltd., M/s. Marble Arch Properties Pvt. Ltd. & pledge of 8,11,80,000 shares of Company in the name of promoters & group associates.

12. Loans against Vehicle amounted to Rs. 10.77 Lacs are repayble by way of Equated Monthly Installments subsequent to taking of such loan. The original period of such loans is 3 yrs out of which Rs. 9.27 Lacs is payable in the next financial year & it is treated as a current liablities (Refer Note No. 6).

13. During the year, at the request of the Company - Ankit Metal & Power Limited, the Corporate Debt Restructuring Proposal (CDR Proposal) was referred to CDR Empowered Group (CDR EG) by the consortium of lenders led by State Bank of India (SBI). The CDR Proposal as recommended by SBI was approved by CDR EG on September 9, 2014 and communicated vide Letter of Approval dated 17th September, 2014, as amended / modified from time to time. Under CDR package, the Company's debts were restructured / rescheduled and additional credit facilities have been sanctioned as set out in the said Letter of Approval. The cut off date for CDR package is February 01, 2014. Upon implementation, the financial effect thereof has been taken into accounts w.r.t. the said CDR scheme as per the said LOA. The said accounts are subject to confirmation and reconciliation with the lenders.

14. The CDR Package includes reliefs / measures such as reduction in interest rates, funding of interest, rearrangement of securities etc. The key features of the CDR Proposal are as follows:

15. Repayment of Rupee Term Loans (RTL) after moratorium of 2 years from the cut-off date in 32 structured quarterly installments commencing from April 30, 2016 to January 31, 2024.

16. Conversion of various irregular/outstanding/devolved financial facilities into Working Capital Term Loan ('WCTL'). Repayment of WCTL after moratorium period of 2 years from cut-off date in 32 structured quarterly installments commencing from April 30, 2016 to January 31, 2024.

17. Restructuring of existing fund based and non fund based financial facilities.

18. Interest on RTL and WCTL during the moratorium period of 2 years from cut-off date and interest on Cash Credit limit for a period of 9 months from the cut-off date shall be converted to FITL. Repayment of FITL would be done in 20 structured quarterly installments commencing from April 30, 2016 to January 31, 2021.

19. The rate of interest on PTL, WCTL, FITL and Fund Based Working Capital Facilities shall be 11% (linked to the base rate of SBI) with the right to reset the rate of the Term loan(s) and FITL every year with the approval of CDR-EG.

20. Waiver of penal interest for irregularities in the Cash Credit accounts for the period from cut-off date to the date of implementation of the package.

21. Contribution of Rs. 3,807 Lacs in the Company by the promoters in lieu of bank sacrifices of Rs. 12,690 Lacs to meet the additional cost of the Company. The contribution is to be brought initially in the form of unsecured loan and the same is to be converted into equity.

22. The CDR Package as well as the provisions of the Master Circular on Corporate Debt Restructuring issued by the Reserve Bank of India, gives a right to the CDR Lenders to get a recompense of their waivers and sacrifices made as part of the CDR Proposal. The recompense payable by the Company is contingent on various factors, the outcome of which currently is materially uncertain and hence the proportionate amount payable as recompense has been treated as a contingent liability. The aggregate present value of the outstanding sacrifice made/ to be made by CDR Lenders as per the CDR package is approximately Rs. 48,176 Lacs.

23. Contingent Liabilities not provided for in the books of Accounts :

a) In respect of Letter of Credit amounting to Rs. NIL Lacs (P.Y.- Rs. 16,310.00 Lacs) & Bank guarantee amounting to Rs. 539.20 Lacs ( P. Y. Rs. 482.20 Lacs).

b) Right to Recompense to CDR Lenders for the relief and sacrifice extended, subject to provisions of CDR Guidelines, amounting to Rs. 4,440.00 Lacs.

c) Relating to Assessment year 2006-07, 2009-10 & 2012-13 a demand of Rs. 21.11 Lacs, Rs. 25.28 Lacs & Rs. 6,692.78 Lacs was raised by the Income Tax Department against which the Company has filed an application with respective department. An amount of Rs. 16.10 Lacs was paid under protest relating to A.Y 2006-07.

d) Relating to Earlier Financial years a demand of Rs. 384.70 Lacs (PY Rs. 186.98 Lacs) were raised by the CESTAT department against which appeal has been filed by the Company. The Company has paid Rs. 50.00 Lacs under protest.

e) Relating to Financial year 2005-06,2006 -07, 2007-08, 2008-09, 2009-10, 2011-12 a demand of Rs. 222.89 Lacs, Rs. 917.91 Lacs, Rs. 358.16 Lacs, Rs. 2,127.7 Lacs, Rs. 37.28 Lacs & Rs. 446.29 Lacs respectively were raised by the Sales Tax department against which appeal has been filed by the Company.

f) (i) A Suit of Rs. 100 Lacs filed by Mr. Ram Krishna Mukherjee for recovery of outstanding money against coal supplied to the Company in the year 2011. The Company has opposed the suit on the ground of inferior quality.

(ii) In the year 2013 M/s. Mjunction filed a money suit for recovery of outstanding from the Company, amount being Rs. 0.40 Lacs. Hearing is under process.

g) The Ministry of Railway issued a Show Cause Notice in respect of Evasion of Freight on loading of Iron-ore at a concessional rate and the penalty on such thereof amounting to Rs. 5,697.90 Lacs. The Company has filed a writ petition in the High Court in the year 2013 for issuing an unjustified notice.

Interest of Rs. NIL (P. Y Rs. 2,643.72 Lacs) capitalised during the year as identified for acquisition & construction of qualifying assets and a sum of Rs. NIL (P. Y Rs. 1,059.03 Lacs) transferred to pre operative expenses as a borrowing cost.

Excise duty payable on Closing Stock on Finished Goods valued at Rs. 1,260.31 Lacs (P. Y Rs. 302.10 Lacs) included in Closing Stock of Finished Goods and effect on Excise duty on change in stock of Finished Goods shown under Other Expenses (Notes No. 27). Due to above, there is no effect on profitability of the Company for the year under review.

Certain balances of the Sundry Creditors, Sundry Debtors, Unsecured Loan and Advances are subject to confirmation and reconciliation.

In the opinion of the Board of Directors, the Current Assets and Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the accounts.

24. INTEREST IN JOINT VENTURE

The Company has the following investment, in a jointly controlled entity:

Name of the Entity : M/s. SKP Mining Pvt. Ltd.

Country of Incorporation : India

Percentage of ownership interest : 50% as at 31st March, 2015 Percentage of ownership interest : NIL as at 31st March, 2014

The Company's interest in this Joint Venture is reported as Non-current investment (Refer Note 13) and is stated at cost (net of provision for other than temporary diminution in value). The Company's share of each of the assets, liabilities, income, expenses, etc (each without elimination of the effect of transactions between the Company and the Joint Venture) related to its interest in this joint venture, based on the audited financial statements are :

The Company's business activity primarily falls within a single business segment i.e. Iron & Steel business. However, the Company also generate power from its captive power plant, which is entirely consumed in Iron & Steel manufacturing unit without any sale to third party. The details of such unit generated are shown below. Hence, there are no additional disclosure to be made under AS - 17.

Particulars 31-10-2015

Unit Generated (KWH ) 1,347.32

25. RELATED PARTIES DISCLOSURE AS PER AS - 18

A. Name of the Related Parties where control exists irrespective of whether transactions have occurred or not:-

A.1 Enterprise on which the company has control :

Nil

SKP Mining Pvt. Ltd.

A.2 Entities/Individuals owning directly or indrectly an interest in the voting power that gives them control :

Sarita Patni SBM Steels Pvt. Ltd.

Gajkarna Merchandise Pvt. Ltd.

Shubham Complex Pvt. Ltd.

Rellybulls Derivatives & Commodities Pvt. Ltd.

Narmada River Resources Pvt. Ltd.

A. B. Infratel Pvt. Ltd.

26. PARTICULARS ON REMITTANCES OF DIVIDEND IN FOREIGN CURRENCY

i Number of Non Resident Shareholders NIL

ii Number of Equity Shares Held by them NIL

iii Amount of remittance on account of dividend NIL

Previous year's figures have been regrouped/restated wherever necessary to conform with this year's classification.

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Mar 31, 2014

NOTE 1 ADDTIONAL NOTES ON ACCOUNTS

1.1 Contingent Liabilities not provided for in the books of Accounts :

a) In respect of Bills Discounted, outstanding as on 31.03.2014 amounting to Rs. NIL (P.Y. Rs. 4,843.40 Lacs).

b) In respect of Letter of Credit amounting to Rs. 16,310 Lacs (P.Y. Rs. 3,212.60 Lacs) & Bank guarantee amounting to Rs. 482.20 Lacs (P. Y. Rs. 272.93 Lacs).

c) Commitments against Capital Expenditure not provided in the accounts Rs. NIL (P. Y Rs. 617.15 Lacs).

d) Relating to Assessment Year 2006-07 & 2009-10 a demand ofRs. 21.11 Lacs &Rs. 25.28 Lacs was raised by the Income Tax Department against which the Company has fi led an application with respective department. An amount ofRs. 16.11 Lacs was paid under protest relating to AY. 2006-07. For the AY. 2008-09 a demand of Rs. 954.67 Lacs was raised by the department out of which orders eff ecting to the tune of Rs. 921.67 Lacs has been passed in favour of the Company and the rest of the amount is still under litigation.

e) Relating to earlier years, Central Excise Department has raised demand order aggregating to Rs. 186.98 Lacs out of which payment under protest ofRs. 35 Lacs has been made and the Company has fi led Appeal/Writ Petition in the respective Authority/Court.

f) Relating to Financial Year 2005-06, 2006-07, 2007-08, 2008-09, 2009-10, 2010-11 a demand of Rs. 222.89 Lacs, Rs. 358.16 Lacs, Rs. 917.91 Lacs, Rs. 180.88 Lacs, Rs. 1,946.82 Lacs, Rs. 37.28 Lacs, Rs. 88.14 Lacs respectively were raised by the sales tax department against which appeals have been fi led by the Company.

g) (i) A Suit of Rs. 100 Lacs fi led by Mr. Ram Krishna Mukherjee for recovery of outstanding money against coal supplied to the Company in the year 2011. The Company has opposed the suit on the ground of inferior quality.

(ii) In the year 2013, M/s. Mjunction fi led a money suit for recovery of outstanding from the Company, amount being Rs. 0.40 Lacs. Hearing is under process.

h) The Ministry of Railway issued a Show Cause Notice in respect of Evasion of Freight on loading of Iron-ore at a concessional rate & the penalty on such thereof amounting to Rs. 5,697.90 Lacs. The Company has fi led a writ petition in the High Court in the year 2013 for issuing an unjustifi ed notice.

1.2 a) Interest of Rs. 2,643.72 Lacs (P. Y Rs. 2,977.78 Lacs) capitalised during the year as identifi ed for acquisition & construction of qualifying assets and a sum of Rs. 1,059.03 Lacs (P. Y Rs. 1,838.69 Lacs) transferred to pre operative expenses as a borrowing cost.

1.3 Excise duty payable on Closing Stock on Finished Goods valued at Rs. 302.10 Lacs (P. Y Rs. 824.21 Lacs) included in Closing Stock of Finished Goods and eff ect on Excise Duty on change in stock of Finished Goods shown under Manufacturing Expenses (Note No. 25). Due to above, there is no eff ect on profitability of the Company for the year under review.

1.4 Sundry Creditors includes Rs. NIL (P. Y Rs. NIL) due to Micro, Small & Medium Enterprises to the extent such parties have been identifi ed from the available documents/information.

1.5 Debtors includes Rs. 22.90 Lacs (P. Y Rs. 22.90 Lacs) for which legal case has been fi led for recovery u/s. 138 of Negotiable Instrument Act, 1881.

1.6 Certain balances of the Sundry Creditors, Sundry Debtors, Unsecured Loan and Advances are subject to Confi rmation.

1.7 In the opinion of the Board of Directors, the Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the accounts.

1.8 Disclosure pursuant to Accounting Standard-15 (Revised) "Employee Benefits" :

a. Defi ned Contribution Plan : Amount of Rs. 11.14 Lacs is recognised as expense and included in "Payments to and Provision For Employees" in Schedule-16 of the Profit & Loss Account.

1.9 Segment Reporting

The Company''s business activity primarily falls within a single business segment i.e. Iron & Steel business. However, the Company also generate power from its Captive Power Plant, which is entirely consumed in Iron & Steel manufacturing unit without any sale to third party. The details of such unit generated are shown below. Hence, there are no additional disclosure to be made under AS - 17.

1.10 Related Parties disclosure as per AS - 18

A. Name of the Related Parties with whom the Company had transactions during the year :

Name of the Related Party Relationship

Ankit Patni_Director - KMP

Suresh Kumar PatniDirector - KMP

Sanjay SinghDirector - KMP

Name of the Related Party Relationship

Rohit PatniRelative of KMP

Sarita PatniRelative of KMP

Neha PatniRelative of KMP

Naina PatniRelative of KMP

Rohit Ferro-Tech LimitedControl of KMP

Impex Ferro Tech Limited_Control of KMP

Impex Metal & Ferro Alloys Limited_Control of KMP

Relybulls Stock Broking Private Limited (Previously known as SKP Stock Broking Private Limited)_Control of KMP

Sarita Steel & Power Limited_Control of KMP

SKP Overseas Pte. Limited_Control of KMP

Shreyansh Leafi n Private Limited_Control of KMP

VNG Mercantiles Private Limited_Control of KMP

Marble Arch Properties Private LimitedControl of KMP

Arthodock Vinimay Private LimitedControl of KMP

Whitestone Suppliers Private LimitedControl of KMP

Nucore Exports Private Limited_Control of KMP

Invesco Finance Private LimitedControl of KMP

SKP Aviation Services LimitedControl of KMP

SKP Power Ventures Limited_Control of KMP

Suanvi Trading & Investment Co. Private Limited_Control of KMP

Vasupujya Enterprises Private Limited_Control of KMP

Poddar Mech Tech Services Private Limited_Control of KMP

Divine Trading Co. Private LimitedControl of KMP

Relybulls Derivatives & Commodities Private Limited (Previously known as SKP Derivatives & Control of KMP Commodities Private Limited)_

Laxmiwan Marketing Private Limited Control of KMP

Binapani Tradelink Private Limited Control of KMP

Mahabala Merchants Private Limited Control of KMP

Versatile Suppliers Private Limited Control of KMP

Paropkar Merchants Private Limited Control of KMP

Gannath Commerce Private Limited Control of KMP

Shubham Complex Private Limited Control of KMP

Dhodwala Enterprises Limited Control of KMP

Impex Cements Limited Control of KMP

VSN Agro Products Limited Control of KMP

Impex Industries Limited Control of KMP

Gold Mohar Steel Limited Control of KMP

Patni Metal & Ferro Alloys Limited Control of KMP

SKP Impex Pte. Limited Control of KMP

Nutech Multimax Private Limited Control of KMP

Greetamax Estates Private Limited Control of KMP

SKP Infrarealty Private Limited Control of KMP

Pioneer Multimax Private Limited Control of KMP

SKP Realtors Private Limited Control of KMP

*KMP means Key Managerial Personnel

1.11 Particulars on remittances of Dividend in foreign currency.

i Number of Non Resident Shareholders NIL

ii Number of Equity Shares Held by them NIL

iii Amount of remittance on account of dividend NIL

1.12 Previous Year''s figures have been regrouped/rearranged, wherever considered necessary.

1.13 The figures have been rounded off to nearest lacs.

---

Mar 31, 2013

1.1 Contingent Liabilities not provided for in the books of Accounts :

a) In respect of Bills Discounted, outstanding as on 31st March, 2013 amounting to Rs. 4,843.40 lacs (P. Y. Rs. 2,077.35 lacs).

b) In respect of Letter of Credit amounting to Rs. 3,212.60 lacs (P. Y. Rs. 3,122.59 lacs) & Bank guarantee amounting to Rs. 272.93 lacs ( P. Y. Rs. 141.20 lacs).

c) Commitments against Capital Expenditure not provided in the accounts Rs. 617.15 lacs ( P. Y. Rs. 4,320.79 lacs).

d) Relating to Assessment year 2006-07, 2008-09, 2009-10 & 2010-11 a demand of Rs. 21.11 lacs, Rs. 217.90 lacs, Rs. 25.28 lacs & Rs. 88.43 lacs was raised by the Income Tax Department against which the Company has filed an application with respective department. The Decision of the case relating to A.Y. 2008-09 is in favour of Company against which department filed application in Tribunal. An amount of Rs. 11.10 Lacs was paid under protest relating to A.Y. 2006-07 and Rs. 50 Lacs relating to A.Y. 2008-09.

e) Relating to previous Financial Year a various demand of Rs. 88.61 lacs were raised by the Central Excise & Service Tax Department against which appeal has been filed by the Company. The Company has paid Rs. 5 lacs under protest & a search has been conduted in the factory & office premises on 11.01.2012 relating to which show cause notice has not been issued by the department during the financial year. The Company has paid Rs. 15 lacs under protest.

f) Relating to Financial year 2005-06, 2006-07, 2007-08 & 2008-09 a demand of Rs. 222.89 lacs, Rs. 358.16 lacs, Rs. 917.91 lacs, Rs. 539.04 lacs & Rs. 1,946.82 lacs respectively were raised by the sales tax department against which appeal has been filed by the Company.

g) (i) A Suit of Rs. 1 Cr. filed by Mr. Ram Krishna Mukherjee for recovery of outstanding money against coal supplied to the Company in the year 2011. The Company is opposing the suit on the ground of inferior quality.

(ii) In the year 2012 Mjunction Services Ltd. has filed a suit against the Company for non-payment of invoices raised by them on account of service charges of the bidding conducted by them.

h) In the year 2012 the Company has challanged the ACT i.e. Section 4 of West Bengal Tax on Entry of goods into the Local Areas Act 2012,(Levy & Collection of Tax). Hearing of the case is under Progress.

i) A civil suit has been filed before Hon''able Court, Calcutta against Company on 04.02.2011 for a sum of Rs. 136.82 lacs for non payment of rejected material alongwith interest and penalty for non-submission of Sales Tax Declaration in Form "C".

1.2 a) Interest of Rs. 2,977.78 lacs (P. Y. Rs. 3,597.76 lacs) capitalised during the year as identified for acquisition & construction of qualifying assets and a sum of Rs. 1,838.69 lacs (P. Y. Rs. 1,323.31 lacs) transferred to pre operative expenses as a borrowing cost.

1.3 Excise Duty payable on Closing Stock on Finished Goods valued at Rs. 824.21/- lacs (P. Y. Rs. 80.80 lacs) included in Closing Stock of Finished Goods and effect on Excise Duty on change in Stock of Finished Goods shown under Other Expenses (Notes No. 28). Due to above, there is no effect on profitability of the Company for the year under review.

1.4 Sundry Creditors includes Rs. NIL lacs (P. Y. Rs. NIL) due to Micro, Small & Medium Enterprises to the extent such parties have been identified from the available documents/ information.

1.5 Debtors includes Rs. 22.90 lacs (P. Y. Rs. 22.90 lacs) for which legal case has been filed for recovery u/s. 138 of Negotiable Instrument Act, 1881.

1.6 Certain balances of the Sundry Creditors, Sundry Debtors, Unsecured Loan and Advances are subject to confirmation.

1.7 In the opinion of the Board of Directors, the Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the accounts.

1.8 Disclosure pursuant to Accounting Standard-15 ( Revised) "Employee Benefits" :

a. Defined Contribution Plan : Amount of Rs. 8.92 Lacs is recognised as expense and included in "Payments to and Provision For Employees" in Schedule-16 of the Profit & Loss Account.

b. Defined Benefit Plan:

i. Reconciliation of Opening and Closing balances of the Present Value of the Defined Benefit Obligation :

1.09 Segment Reporting

The Company''s business activity primarily falls within a single business segment i.e. Iron & Steel business. However, the Company also generate power from its Captive Power Plant, which is entirely consumed in Iron & Steel manufacturing unit without any sale to third party. The details of such unit generated are shown below. Hence, there are no additional disclosure to be made under AS -17.

1.10 Particulars on remittances of Dividend in foreign currency.

i Number of Non Resident Shareholders NIL

ii Number of Equity Shares held by them NIL

iii Amount of Remittance on account of Dividend NIL

1.11 Previous year''s figures have been regrouped/rearranged, wherever considered necessary.

1.12 The figures have been rounded off to nearest lacs.

---

Mar 31, 2012

Terms/Rights attached to Equity Shares

The Company has only one class of Equity Shares having at a par value of Rs. 10/- per share. On a show of hands, every member present in person is entitled to one vote and in case of poll, the voting rights of every member shall be in proportion to his shares of the paid-up Equity Share Capital of the Company.

The dividend proposed if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting & paid in Indian rupees.

In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

During the year under review the Board of Directors has issued & alloted 625 lacs of Equity Shares of Rs. 10/- each at a premium of Rs. 30/- per share on preferential basis to part finance the various expansion scheme & long term working capital requirement of the Company. The entire proceeds received from the said issue during the year has been fully utilised towards the object of the issue.

Terms and Conditions relating to Share Application Money Pending Allotment

The Share Application Money amounted to Rs. 11,075.62 lacs received during the year 2010-2011 has been, with the consent of the respective allotees, adjusted against shares alloted to them in preferential issue of Equity Share of Rs. 10/- each at a premium of Rs. 30/- per share.

The existing Authorised Share Capital of the Company is sufficient to accommodate the shares to be issued against the aforesaid share appication money.

Terms and Conditions attached to Short Term Borrowings

Working Capital including SLC are jointly secured by hypothecation of all the current assets on 1st pari-passu basis &2nd pari-passu charge by way of extension of charge on the entire fixed assets of factory land, building/shed, etc. & along with equitable mortgage on office space at 35, C. R. Avenue, Kolkata on pari-passu basis & personal guarantee of three Promoters & corporate guarantee of three Companies & pledge of shares of Promoter Directors.

Loan from Banks/Others is secured by personal guarantees of Mr. Suresh Kumar Patni (Chairman) and Mr. Ankit Patni (Managing Director), Mr. Rohit Patni (Jt. Managing Director) and subservient charge on all moveable assets including stock and debtor.

1.1 Contingent Liabilities not provided for in the books of Accounts:

a) In respect of Bills Discounted, outstanding as on 31st March, 2012 amounting to Rs. 2,077.35 lacs (P.Y. - Rs. 1,050.00 lacs).

b) In respect of Letter of Credit amounting to Rs. 3,122.59 lacs (P.Y. - Rs. 1,218.15 lacs) & Bank Guarantee amounting to Rs. 141.20 lacs (P.Y. -Rs. 135.20 lacs).

c) Commitments against Capital Expenditure not provided in the accounts Rs. 4,320.79 lacs (P.Y. - Rs. 4,650.35 lacs).

d) Relating to Assessment Year 2006-07, 2007-08, 2008-09 & 2009-10 a demand of Rs. 21.11 lacs, Rs. 19.99 lacs, Rs. 217.90 lacs & Rs. 25.28 lacs was raised by the Income Tax Department against which the Company has filed an application with respective department. The decision of the case relating to Assessment Year 2008-09 is in favour of Company against which department filed application in Tribunal. An amount of Rs. 11.10 lacs was paid under protest relating to Assessment Year 2006-07, and Rs. 50 lacs relating to Assessment Year 2008-09. An amount of Rs. 4.47 lacs paid relating to year 2007-08.

e) Relating to Financial Year 2005-06, 2006-07, 2007-08 & 2008-09 a demand of Rs. 222.89 lacs, Rs. 917.91 lacs, Rs. 539.04 lacs & Rs. 1,946.82 lacs respectively were raised by the Sales Tax Department against which appeal has been filed by the Company.

f) A Civil suit has been filed before Hon'able Court, Calcutta against Company on 4/2/2011 for a sum of Rs. 136.82 lacs for non payment of rejected material alongwith interest and penalty for non-submission of Sales Tax Declaration in Form "C".

1.2 During the year, the Company has alloted 625.00 lacs Equity Shares of Rs. 10/- at a price of Rs. 40/- per Equity Share (including premium of Rs.30/- per share) to entities belonging to promoter group and strategic investors belonging to non-promoter group on a preferential basis in terms of provisions of SEBI (Issue of Capital and Disclosure Requirement) Regulation 2009. The total funds amounting to Rs. 25,000 lacs raised from the issue have been utilised for financing expansion projects and working capital requirements.

1.3 a) Interest of Rs. 3,597.76 lacs (P.Y. - Rs. 21.30 lacs) capitalised during the year as identified for acquisition & construction of qualifying assets and a sum of Rs. 1,323.31 lacs (P.Y. - Rs. 850.90 lacs) transferred to pre operative expenses as a borrowing cost.

1.4 Excise Duty payable on Closing Stock on Finished Goods valued at Rs. 80.80 lacs (P.Y. - Rs. 421.84 lacs) included in Closing Stock of Finished Goods and effect on Excise Duty on change in Stock of Finished Goods shown under Other Expenses (Notes No. 27). Due to above, there is no effect on profitability of the Company for the year under review.

1.5 Sundry creditors includes Rs. NIL lacs (P.Y. - Rs. NIL) due to Micro, Small & Medium Enterprises to the extent such parties have been identified from the available documents/information.

1.6 Debtors includes Rs. 22.90 lacs (Rs. 22.90 lacs) for which legal case has been filed for recovery under Section 138 of Negotiable Instrument Act, 1881.

1.7 Certain balances of the Sundry Creditors, Sundry Debtors, Unsecured Loan and Advances are subject to confirmation.

1.8 In the opinion of the Board of Directors, the Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the accounts.

1.9 Disclosure pursuant to Accounting Standard-15 (Revised) "Employee Benefits":

a. Defined Contribution Plan : Amount of Rs. 2.44 lacs is recognised as expense and included in "Payments to and Provision For Employees"in Schedule-16 of the Profit & Loss Account.

b. Defined Benefit Plan :

vii. The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

1.10 Segment Reporting

The Company's business activity primarily falls within a single business segment i.e. Iron & Steel business. However, the Company also generates power from its Captive Power Plant, which is entirely consumed in Iron & Steel manufacturing unit without any sale to third party. The details of such unit generated are shown below. Hence, there are no additional disclosure to be made under AS - 17.

1.11 Previous year's figures have been regrouped/rearranged, wherever considered necessary.

1.12 The figures have been rounded off to nearest lacs.

---

Mar 31, 2011

1. Contingent Liabilities not provided for in the Books of Accounts :

a) In respect of Bills Discounted, outstanding as on 31st March, 2011 amounting to Rs. 1,050.00 lacs (P.Y- Rs. 1,259.02 lacs).

b) In respect of Letter of Credit amounting to Rs. 1,218.15 lacs (P.Y-Rs. 508.92 lacs) & Bank Guarantee amounting to Rs. 135.20 lacs (P. Y-Rs. 254.55 lacs).

c) Commitments against Capital Expenditure not provided in the accounts (Net of Advances) Rs. 4,650.45 lacs (P. Y-Rs. 1,238.35 lacs).

d) Relating to Assessment year 2006-07, 2007-08, 2008-09 & 2009-10 a demand of Rs. 21.11 lacs, Rs. 3.54 lacs, Rs. 217.90 lacs & Rs. 10.32 lacs was raised by the D.C.I.T, Circle-3, Kolkata against which the Company has filed a appeal. An amount of Rs. 11.11 lacs was paid under protest relating to year 2006-07 and Rs. 50.00 lacs relating to year 2008-09.

e) Relating to Financial year 2005-06, 2006-07 & 2007-08, a demand of Rs. 215.65 lacs, Rs. 815.00 lacs & Rs. 539.04 lacs respectively were raised by the Sales Tax department against which appeal has been filed by the Company.

f) A sum of Rs. 4.46 lacs was raised by Asssistant Commissioner of Central Excise, Bolpur, as per Show Cause Notice for which Rs. 5.05 lacs has been paid by the Company.

g) A Civil suit has been filed before Hon'able Court, Calcutta against the Company on 4th February, 2011 for a sum of Rs. 136.82 lacs for non payment of rejected material along with interest and penalty for non-submission of Sales Tax Declaration in Form "C".

2. Draft Letter of Offer for issue of Equity Shares on right basis to the existing shareholders of the Company has been approved by Securities and Exchange Board of India (SEBI) subject to compliance of certain observation contained therein. Pursuant to above, the Company has received Share application money from the Promoters & Promoter's Group amounting to Rs. 1,1075.62 lacs shown under the head "Share Application Money - Pending Allotment".

3. All the related expenses of expansion project which is under implementation treated as capital work-in-progress. Administrative expenses relating to said project as identified by the management, have been transferred to Pre-operative Expenses Account. (Refer note no. B-13 hereunder).

4. Interest of Rs. 21.30 lacs (P.Y.- Rs. 61.07 lacs) capitalised during the year as identified for acquisition & construction of qualifying assets and a sum of Rs. 850.90 lacs (P.Y-Rs. 34.32 lacs) transferred to pre-operative expenses as a borrowing cost.

5. a) Excise duty payable on Closing Stock of Finished Goods valued at Rs. 421.84 lacs (P.Y-Rs. 196.05 lacs) included in Closing

Stock of Finished Goods and effect on Excise duty on change in stock of Finished Goods shown under manufacturing expenses. Due to above, there is no effect on profitability of the Company for the year under review

b) Excise duty includes Rs. 138.82 lacs paid as per the Directions given by the Custom & Central Excise Settlement Commission, Additional Bench, Kolkata as per Final Order no. F-247/CE/10-SC(KB) dated 26th November, 2010.

6. Sundry creditors includes Rs. NIL (P.Y-Rs. NIL) due to Micro, Small & Medium Enterprises to the extent such parties have been identified from the available documents/information.

7. a) Debtors include Rs. 6.07 lacs (Rs. 15.59 lacs) outstanding for more than 3 years in respect of which necessary steps have been initiated by the Company. The management considers the same are goods and fully recoverable, hence no provision has been made in the accounts at this regards.

b) Debtors includes Rs. 22.90 lacs (Rs. NIL) for which legal case has been filed for recovery under Section 138 of Negotiable Instrument Act, 1881. Since the amount is recoverable in the opinion of management, no provision has been made therefore.

8. Certain balances of the Sundry Creditors, Sundry Debtors, Unsecured Loan and Advances are subject to confirmation.

9. In the opinion of the Board of Directors, the Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the accounts.

10. Disclosure pursuant to Accounting Standard-15 (Revised) "Employee Benefits":

a. Defined Contribution Plan : Amount of Rs. 8.98 lacs is recognised as expense and included in "Payments to and Provision For Employees" in Schedule-16 of the Profit & Loss Account.

b. Defined Benefit Plan:

vii. The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

II. Segment Reporting:

The Company's business activity primarily falls within a single business segment i.e., Iron & Steel business. However, the Company also generates power from its Captive Power Plant, which is entirely consumed in Iron & Steel manufacturing unit without any sale to third party. The details of such unit generated are shown below. Hence, there are no additional disclosure to be made under AS-17.

16. Related Parties Disclosure as per AS-18

A) Name of the Related Parties with whom the Company had transactions during the year :

Name of the Related Party Relationship

Rohit Patni Director-KMP

Ankit Patni Director-KMP

Suresh Kumar Patni Director-KMP

Santa Patni Relative of KMP

Suanvi, Trading& Control of KMP Investment Co. Pvt. Ltd.

Vasupujya Enterprises Control of KMP Pvt. Ltd.

Poddar Mech Tech Services Control of KMP Pvt. Ltd.

Impex Metal & Ferro Control of KMP Alloys Ltd.

Divine Trading Co. Pvt. Control of KMP Ltd.

Invesco Finance Pvt. Ltd. Control of KMP

Impex Steel Ltd. Control of KMP

Impex Ferro Tech Ltd. Control of KMP

Rohit Ferro Tech Ltd. Control of KMP

Marble Arch Properties Control of KMP Pvt. Ltd.

SKP Aviation Services Control of KMP Ltd.

SKP Overseas Pte. Ltd. Control of KMP

VNG Mercantiles Pvt. Ltd. Control of KMP

Hira Concast Ltd. Control of KMP

Ann Minerals Pvt. Ltd. Control of KMP

Arthodock Vinimay Pvt. Control of KMP Ltd.

Nucore Exports Pvt. Ltd. Control of KMP

Shreyansh Leafin Pvt. Control of KMP Ltd.

Whitestone Suppliers Control of KMP Pvt. Ltd.

*KMP means Key Managerial Personnel

11. Quantitative Information pursuant to Para 3 & 4 of part II of Schedule VI to the Companies Act, 1956.

A) Licensed Capacity : N.A

C) Quantitative Information : Production, Stock, Sale of goods produced/traded during the year :

12. Particulars on remittances of Dividend in foreign currency

i Number of Non Resident Shareholders NIL

ii Number of Equity Shares held by NIL them

iii Amount of remittance on account NIL of dividend

13. Additional Information pursuant to Part IV of Schedule VI is as per Annexure - A

14. Previous year's figures have been regrouped/rearranged, wherever considered necessary.

15. The figures have been rounded off to nearest rupee.

---

Mar 31, 2010

1. All the related expenses of expansion project which is under implementation treated as Capital Work-in-Progress. Administrative expenses relating to said project as identified by the Management, have been transferred to Pre-operative Expenses Account (Refer note no. B-12 hereunder)

2. Interest of Rs. 61.07 Lacs (Previous year - Rs. 480.40 Lacs) capitalised during the year as identified for acquisition & construction of Qualifying assets and a sum of Rs. 34.32 Lacs (Previous year - Rs. 179.87 Lacs) transferred to pre-operative expenses as a borrowing cost.

3. Excise Duty payable on closing stock on Finished Goods valued at Rs. 196.05 Lacs (Previous year - Rs. 112.83 Lacs) included in closing stockof Finished Goods and effect on Excise Duty on change in stock of Finished Goods shown under manufacturing expenses. Due to above, there is no effect on profitability of the Company for the year under review.

4. Sundry Creditors includes Rs. NIL (Previous year - Rs. NIL) due to Micro, Small & Medium Enterprises to the extent such parties have been identified from the available documents/information.

5. Debtors include Rs. 15.59 Lacs outstanding for more than 3 years in respect of which necessary steps have been initiated by the Company. The Management considers the same are good and fully recoverable, hence no provision has been made in the accounts at this regards.

6. Certain balances of the Sundry Creditors, Sundry Debtors, Unsecured Loan and Advances are subject to confirmation.

7. In the opinion of the Board of Directors, the Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the accounts.

8. Disclosure pursuant to Accounting Standard -15 (Revised) "Employee Benefits":

a. Defined Contribution Plan .-Amount of Rs. 5.72 Lacs is recognised as expense and included in "Payments to and Provision For Employees" in Schedule-16 of the Profit & Loss Account.

b. Defined Benefit Plan:

i) Reconciliation of Opening and Closing balances of the Present Value of the Defined Benefit Obligation:

9. Segment Reporting

The Companys business activity primarily falls within a single business segment i.e. Iron & Steel business. However, the Company also generate power from its Captive Power Plant, which is entirely consumed in Iron & Steel manufacturing unit without any sale to third party. The details of such unit generated are shown below. Hence, there are no additional disclosure to be made under Accounting Standard-17.

10. Quantitative Information pursuant to Para 3 & 4 of Part II of Schedule VI to the Companies Act, 1956.

A) Licenced Capacity: N.A.

B) Detail of Capacity & Production

11. Additional Information pursuant to Part - IV of Schedule VI is as per Annexure - A

12. Previous years figures have been re-grouped/re-arranged, wherever considered necessary.

13. The figures have been rounded off to nearest rupee.