Notes to Accounts of Krishna Ferro Products Ltd.

Mar 31, 2012

Contingent Liability is disclosed in the case of :

a) The company has a present obligation as a result of past event, when it is not probable that an outflow of resources will be required to settle the obligation.

b) A possible obligation, unless the probability of outflow of resources is remote. Contingent Assets are neither recognized nor disclosed.

The Company has only one class of share referred to as equity shares having a par value of Rs. 10/- Each holder of equity shares is entitled to one vote per share.

Share allotment money receivable against the public issue of 1994-95 of the company is under reconciliation.

(Rs. In Lacs)

As at 31st As at 31st Particulars March, 2012 March, 2011

NOTE 27: CONTINGENT LIABILITIES NOT PROVIDED FOR:

a) Demands for Entry Tax pending in appeal. 6.25 6.25

b) Demands for CST pending in appeal. 5.17 5.17

c) Demands for VAT pending in appeal. 2.08 2.08

d) Bank Guarantee issued in favour of customers 297.00 297.00

NOTE 1: EMPLOYEE BENEFITS

The revised Accounting Standards on ' Employees Benefits' (AS-15) notified by the National Advisory Committee on Accounting Standards. The disclosure as required under AS-15 regarding the companies gratuity plan is as follows:

NOTE 2: OTHERS

a. Previous year figures have been regrouped and rearranged wherever necessary.

b. Balance under the head unsecured loans, Sundry Debtors, Sundry Creditors & Loans and Advances are subject to confirmation, wherever not received.

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Mar 31, 2011

1. Contingent liabilities not provided for :

31.03.2011 31.03.2010

(In Rs.) (In Rs.)

a) Demands for Entry Tax pending in appeal. 6,25,034 6,25,034

b) Demands for CST pending in appeal. 5,17,365 5,17,365

c) Demands for VAT pending in appeal. 2,07,654 2,07,654

d) Bank Guarantee issued in favor of customers 2,62,32,594 1,50,00,000

2. Balance under the head unsecured loans, Sundry Debtors, Sundry Creditors & Loans and Advances are subject to confirmation, wherever not received.

3. Miscellaneous expenditure includes expenses incurred by the company towards development expenses to streamline the power consumption in the new ingot plant, the benefit of which is expected to accrue for a period of 10 years.

4. The Company is in the process of identifying the supplier who would be covered under the Micro, Small and Medium Enterprises Development Act, 2006. In the circumstances, the information, if any, required to be disclosed under the said Act, is not yet ascertained.

5. Amount of borrowing cost capitalised as cost of fixed assets - Rs. Nil (previous year Rs. 49,16,705.00)

6. Employee Benefits

The revised Accounting Standards on 'Employees Benefits' (AS-15) notified by the National Advisory Committee on Accounting Standards. The disclosure as required under AS-15 regarding the companies gratuity plan is as follows:

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Mar 31, 2010

Annexed to and forming part of Balance Sheet and Profit and Loss Account For the year ended 31.03.2010.

1. Contingent liabilities not provided for:

31.03.2010 31.03.2009

(In Rs.) (In Rs.)

a) Demands for Entry Tax pending in appeal. 6,25,034 6,25,034

b) Demands for CST pending in appeal. 5,17,365 NIL

c) Demands for VAT pending in appeal. 2,07,654 NIL

d) Bank Guarantee issued in favour of customers 1,50,00,000 1,50,00,000

2. Capital Work in Progress (including capital Advance)

I. Capital Advance to vendors amounting to Rs. 1,95,78,372/- (Previous year Rs.1,19,33,547/-)

2. Share allotment money receivable against the public issue of 1994-95 of the company is under reconciliation.

3. Previous year figures have been regrouped and rearranged wherever necessary.

4. Cash credit from SBI is secured against hypothecation of stock, bills and personal guarantee of directors. Raw material assistance from NSIC is secured by bank guarantee of SBI.

5. Term Loan from SBI is secured against Equitable mortgage of factory land and building and pledge/hypothecation of plant and machineries and other fixed assets of the company.

6. Balance under the head unsecured loans, Sundry Debtors, Sundry Creditors & Loans and Advances are subject to confirmation, wherever not received.

7. Miscellaneous expenditure includes expenses incurred by the company towards development expenses to streamline the power consumption in the new ingot plant, the benefit of which is expected to accrue for a period of 10 years.

8. The Company is in the process of identifying the supplier who would be covered under the Micro, Small and Medium Enterprises Development Act, 2006. In the circumstances, the information, if any, required to be disclosed under the said Act, is not yet ascertained.

9. Amount of borrowing cost capitalised as cost of fixed assets - Rs. 49,16,705.00 (previous year Rs. Nil)

10. Employee Benefits

The revised Accounting Standards on Employees Benefits(AS-15) notified by the National Advisory Committee on Accounting Standards. The disclosure as required under AS-15 regarding the Companys gratuity plan is as follows:

11. Related Party disclosure as per AS- 18

1) a) Key Management personnel: Sri H.K.Agarwal & Smt. S.K Agarwal.

b) Relative of Key Management Personnel:

Kusumlata Agarwal ( Mother of Sri H.K Agarwal)

2) Enterprises over which key management personnel and their relatives are able to exercise significant influence:

a) Krishna Enterprises (owned by Sri H.K Agarwal)

b) Radhika Minerals N Minerals (Partnership firm of Sri H.KAqarwal)

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Mar 31, 2009

Annexed to and forming part of Balance Sheet and Profit & Loss Account for the year ended 31.03.2009

1. Contingent liabilities not provided for:

Sl. Particulars 31.03.2009 No. (ln Rs.) 31.03.2008 (ln Rs.)

a. Demands for Entry Tax pending in appeal 6,25,034 6,25,034

b. Bank Guarantee issued in favour of customers 1,50,00,000 1,00,00,000

2. Share allotment money receivable against the public issue of 1994 - 95 of the company is under reconciliation.

3. Previous year figures have been regrouped and rearranged wherever necessary.

4. Cash credit from SBI is secured by hypothecation of stock, bills and personal guarantee of directors. Raw materials assistance from NSIC is secured by bank guarantee of SBI.

5. Balance under the head unsecured loans, Sundry Debtors, Sundry Creditors & Loans and Advances are subject to confirmation, wherever not received.

6. Miscellaneous expenditure includes expenses incurred by the company towards development expenses to Streamline the power consumption in the new ingot plant, the benfit of which is expected to accrue for a period of 10 years.

7. The company is in the process of identifying the supplier who would be covered under the Micro, Small and Medium Enterprises Development Act, 2006. In the circumstances, the information, if any, required to be disclosed under the said Act, is not yet ascertained.

8. Related Party disclosure as per AS-18

1) a) Key Management Personnel: Sri H.K Agarwal & Smt. S.K Agarwal. b) Relative of key management personnel:

Kusumlata Agrawal (Mother of Sri H. K Agrawal)

Sanwar Agrawal (Brother of Sri H. K Agrawal)

2) Enterprise over which key management personnel are able to exercise significant influence: Krishna Enterprises (owned by Sri H. K Agrawal)