Notes to Accounts of Prakash Steelage Ltd.

Mar 31, 2024

a) Company has written off the outstanding receivable balance amounting to INR 4,458.88 Lakhs against which the provision forbad and doubtful debts was already made through profit and loss account during the financial years 2015-16 and 2018-19. During the year ended March 31,2024, the company had successfully recovered INR 3,476.91 Lakhs from the debtor as a full and final settlement and the same has been disclosed as exceptional item. Consequently, the Company reversed the provision for bad and doubtful debts during the year ended March 31,2024, and written off the remaining receivable balance of Rs. 981.97 Lakhs.

(a) The Company had receivable balance against the advances paid to one Vendor amounting to INR 634 Lakhs, against which provisions for bad and doubtful debts were previously accounted for in the statement of profit and loss for the 2018-19. The Company reversed the provision forbad and doubtful debts during the year ended March 31,2024, and written off the receivable balance of Rs. 634 Lakhs as decided by the management. Accordingly, the balance post and adjustment has been disclosed above.

Right and restrictions attached to shares

Equity Share : The Company has one class of equity shares having a par value of Re. 1 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Director is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. The Equity share of the Company has been sub-dividend from face value of Rs. 10 each of face value of Re. 1 each w.e.f. 04th March, 2016, the record date pursuant to the shareholders approval through postal ballotdates 12th Februaty, 2016.

Notes:

Nature and Purpose of Reserve

(A) Created on the issue of shares at premium. It shall be utilized as perthe provisions of the CompaniesAct 2013.

(B) General Reserve is created out of the profits earned/Losses incurred by the Company by way of transfer from surplus in the statement of profit and loss. The Company can use this reserve for payment of dividends and issue of fully paid-up shares. As General Reserve is created by transfer of one component of equity to another and is notan item of other comprehensive income, items included in General Reserve will not be reclassified to statement of profit and loss.

a) Disclosure underthe Micro, Small and Medium Enterprises Development Act, 2006

There are few Micro and Small Enterprises to whom the Company owes dues which are outstanding for more than 45 days as at 31st March, 2024. This information as required to be disclosed underthe Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings. The company''s pending litigations comprise of claims against the company and proceeding pending with Statutory and Tax authorities. The company has reviewed all its pending litigations and proceedings and has made adequate provisions, whenever required and disclosed the contigent liabilities wherever applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materials impact on itsfinancial position.

30 Employee benefit plans

1) Defined contribution plans:

The Company participates in defined contribution plans on behalf of relevant personnel. Any expense recognized in relation to these schemes represents the value of contributions payable during the period by the Company at rates specified by the rules of those plans. The only amounts included in the balance sheet are those relating to the prior months contributions that were not due to be paid until after the end of the reporting period.

The defined contribution plans are as below:

a) Provident fund

In accordance with the Employee''s Provident Fund and Miscellaneous ProvisionsAct, 1952 eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees'' salary. The contributions, as specified under the law, are made to the provident fund administered and managed by Government of India (GOI). The Company has no further obligations under the fund managed by the GOI beyond its monthly contributions which are charged to the Statement of Profit and Loss in the period they are incurred. The benefits are paid to employees on their retirement or resignation from the Company.

2) Defined Benefit Plans:

The Defined Benefit Plan is as below:

Gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. It provides for lump sum payment to vested employees at retirement, on death while in employment or on termination of the employment in terms of the provisions of the Payment of Gratuity Act, 1972 or as per the Company''s Scheme, as applicable. Vesting occurs upon completion of five years of service. The Company accounts for the liability for gratuity benefits payable based on an actuarial valuation.

The plan typically exposes the Company to actuarial risks such as: interest rate risk, longevity risk and salary risk. Interest risk Longevity risk Salary risk

The most recent actuarial valuation of the present value of the defined benefit obligation was carried out at 31^st March, 2024 by an independent actuary. The present value of the defined benefit obligation, the related current service cost and pastservice costwere measured using the projected unit credit method.

G. SensitivityAnalysis

The Sensitivity Analysis below has been determined based on reasonably possible change of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant. These sensitivities show the hypothetical impact of a change in each of the listed assumptions in isolation. While each of these sensitivities holds all other assumptions constant, in practice such assumptions rarely change in isolation and the asset value changes may offset the impact to some extent. For presenting the sensitivities, the present value of the Defined Benefit Obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the Defined Benefit Obligation presented above. There was no change in the methods and assumptions used in the preparation of the SensitivityAnalysis from previous year.

34. Some of the balances of Trade Receivables, Deposits, Loans & Advances, Advances received from customers, Liability for expenses and Trade Payables are subject to confirmation from the respective parties and consequential reconciliation/adjustment arising there from, if any. The management, however, does not expect any material variation.

35. Segment Reporting

The company has identified Manufacturing and Trading of "Stainless Steel Tubes & Pipes", as its only primary reportable segment in accordance with requirements of Indian Accounting Standards 109 "Operating Segments". Accordingly no separate segment has been provided.

36. Disclosure in respect of Corporate Social Responsibility Expenditure (CSR) is as under.

(a) CSR amount required to be spent as per Sec 135 of the Companies Act 2013, read with schedule VII thereof by the Company during the year is Rs. 27.65 lakhs

38. Financial instruments and Risk Management

38.1 Capital Management

The capital structure of the Company consist of net debt ( borrowings offset by cash and bank balances) and total equity of the Company. The Company manages its capital to ensure that the Company will be able to continue as going concern. The Company''s management review it''s capital structure consisting the cost of capital, the risk associated with each class of capital and the need to maintain adequate liquidity to meet its financial obligations when they become due.

38.2 Categories of financial instrument

The following table provides categorisation of all financial instrument at carrying value.

38.3 Financial risk management

The financial risk emanating from the company''s oprating bussiness include market risk, credit risk and liquidity risk. These risks are managed by the company using appropriate financial instrument. The Company has laid down written policies to manage these risks.

38.3.1 Market risk management

Market risk is the risk that the fair value of future cash flow of a financial instrument will fluctuate because of changes in market prices. Market risk comprise of Currency risk, Interest rate risk and other price risk.

A. 1 Foreign Currency sensitivity analysis:

The Company''s exposure for foreign currency changes for all currencies is not material.

B. Interest rate risk management

The Company does not have interest rate risk exposure on its outstanding loan as at the year end as these loans are short-term loans on fixed interest rate basis.

38.3.2 Credit risk management

Credit risk arises from the the possibility that a counter party''s inability to settle its obligations as agreed in full and in time. The maximum exposure to credit risk in respect of the financial assets at the reporting date is the carrying value of such assets recorded in the financial statement net of any allowance for losses.

The Company had an outstanding receivable balance from one of the debtors amounting to INR4,458.88 Lakhs, against which provisions for bad and doubtful debts were previously accounted for in the profit and loss accounts for the financial year 2015-16 and FY2018-19. During the quarter ended 31st March, 2024, the company has successfully recovered INR 3,476.91 Lakhs from the debtor as a full and final settlement and the same has been disclosed as exceptional item.

Consequently the Company reversed the provisions for bad and doubtful debts during the quarter ended 31,2024, and wrote off the remaining receivable balance of Rs. 981.87 Lakhs.

B. Other FinancialAssets

The Company maintain exposure in cash and cash equivalents, time deposits with bank. Investment of surplus funds are made only with approved counter parties. The maximum exposure to credit risk at the reporting date is the carrying value each class of financial assets.

38.3.3 Liquidity risk management .Liquidity risk table

The following table details the company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The table have been drawn up based on the undiscounted cash flow of financial liabilities based on the earliest date on which the Company can be required to pay. The table include principle cash flow along with interest.

40.ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III i. Details of benami property held

No proceedings have been intiated on are pending against the company for holding benami property under the Benami Transactions (Prohibition)Act, 1988 (45 of 1988) and Rules made thereunder.

ii Borrowing secured against current assets

The company does not has borrowings from banks and financial institutions on the basis of security of current assets. The quarterly returns or statement of current assets filed by the company with banks and financial institutions are in agreement with the books of accounts.

iii Wilful defaulter

The company has not been declared wilful defaulter by any bank or financial institution or any lender.

iv Relationship with struck off companies

The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

v Compliance with number of layers of companies

The company has complied with the numberof layers prescribed underthe CompaniesAct, 2013.

vi Compliance with approved scheme(s) of arrangements

The company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

vii Utilisation of borrowed funds and share premium

The company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (International) with the understanding that the Intermediary shall

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

The company has not received any fund from any person(s)orentity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

viii Undisclosed Income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments underthe Income TaxAct, 1961, that has not been recorded in the books of account.

ix Details of crypto currency or virtual currency

The company has not traded or invested in crypto currency or virtual currency during the current or previous year.

x Valuations of PP&E, intangible assets and investment property

The company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

xi Title deeds of immovable properties not held in name of the company

The title deeds of all the immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in note no. 3 to the financial statement, are held in the name of the company.

xii Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are yet to be registered with the Registrar of companies beyond the statutory period.

41 Previous year''s figure have been regrouped / recast/ reclassified, wherever necessary.

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Mar 31, 2023

2.15 Provisions, Contingent Liabilities and Contingent Assets:

Provisions : Provisions are recognised when there is a present legal or constructive obligation 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 there is a reliable estimate of the amount of the obligation. Provisions are measured using the cash flows estimated to settle the present obligation at the Balance sheet date.

Contingent Liabilities : Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company ora present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

Contingent Assets: Contingent assets are disclosed, where an inflow of economic benefits is probable.

2.16 Cash and cash equivalents:

Cash and Cash equivalents include cash, cheques on hand, cash at bank and short term deposits with banks having original maturity of three months or less, which are subject to insignificant risk of changes in value.

2.17 Statementof Cash Flows:

Cash flows are reported using the indirect method whereby profit / (loss) is adjusted for the effects of transactions of

non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are seggregated based on the available information.

2.18 Dividend to equity shareholders:

Dividend to equity shareholders is recognised as a liability and deducted from shareholders'' equity, in the period in which the dividends are approved by the equity shareholders in the general meeting.

2.19 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 weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

2.20 Critical accounting judgements and key sources of estimation uncertainty:

The preparation of financial statements in conformity with Ind AS requires that the management of the Company makes judgements, estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. The judgements, estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to significant accounting estimates include useful lives and impairment of property, plant and equipment, allowance for doubtful debts/advances, deferred tax assets, future obligations in respect of retirement benefit plans, expected cost of completion of contracts, allowances for inventories, etc. Difference, if any, between the actual results and estimates is recognised in the period in which the results are known.

(if Useful lives and Impairment of property, plant and equipment

The Company reviews the useful life of property, plant and equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in future periods.

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company makes an estimate of the asset''s recoverable amount. An asset''s recoverable amount is the higher of its fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets and the asset’s value in use cannot be estimated to be close to its fair value. In such cases the asset is tested for impairment as part of the cash-generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses relating to continuing operations are recognised in those expense categories consistent with the function of the impaired asset.

fiif Allowance for doubtful debts/advances

When determining the lifetime expected credit losses for trade receivables, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company’s historical experience and credit assessment and including forward-looking information. Refer Note 9 (i).

(Hit Deferred tax assets

Significant management judgment is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits. The amount of total deferred tax assets could change if estimates of projected future taxable income or if tax regulations undergo a change.

(iv) Employee Benefit Obligations

Employee benefit obligations are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, employee benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

(v) Allowance for Inventories

An inventory provision is recognised for cases where the realisable value is estimated to be lower than the inventory carrying value. The inventory provision is estimated taking into account various factors, including prevailing sales prices of inventory item and losses associated with obsolete / non-moving inventory items.

29 Employee benefit plans

1) Defined contribution plans:

The Company participates in defined contribution plans on behalf of relevant personnel. Any expense recognized in relation to these schemes represents the value of contributions payable during the period by the Company at rates specified by the rules of those plans. The only amounts included in the balance sheet are those relating to the prior months contributions that were not due to be paid until after the end of the reporting period.

The defined contribution plans are as below:

a) Provident fund

In accordance with the Employee''s Provident Fund and Miscellaneous Provisions Act, 1952 eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees’ salary. The contributions, as specified under the law, are made to the provident fund administered and managed by Government of India (GOI). The Company has no further obligations under the fund managed by the GOI beyond its monthly contributions which are charged to the Statement of Profit and Loss in the period they are incurred. The benefits are paid to employees on their retirement or resignation from the Company.

Contribution to Defined Contribution Plans, recognized in the Statement of Profit and Loss for the year under employee benefits expense, are as under:

Gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. It provides for lump sum payment to vested employees at retirement, on death while in employment or on termination of the employment in terms of the provisions of the Payment of Gratuity Act, 1972 or as per the Company''s Scheme, as applicable. Vesting occurs upon completion of five years of service. The Company accounts for the liability for gratuity benefits payable based on an actuarial valuation.

The plan typically exposes the Company to actuarial risks such as: interest rate risk, longevity risk and salary risk. Interest risk Longevity risk Salary risk

The most recent actuarial valuation of the present value of the defined benefit obligation was carried out at 31^st March, 2023 by an independent actuary. The present value of the defined benefit obligation, the related current service cost and past service cost were measured using the projected unit credit method.

30. RELATED PARTIES

Name of Party Relationship

A. Key Management Personnel

1 Shri Prakash C. Kanugo Chairman & Managing Director

2 ShriAshokM. Seth Executive Director & Chief Financial Officer

3 Shri Hemant P. Kanugo Whole Time Director

B. Relatives of Key Management Personnel

1 Smt. Babita P. Kanugo Spouse of Shri Prakash C. Kanugo

2 Shri Vimal P. Kanugo Son of Shri Prakash C. Kanugo

3 Shri Kirti P. Kanugo Son of Shri Prakash C. Kanugo

4 Shri Kamal P. Kanugo Son of Shri Prakash C. Kanugo

5 Smt. Ekta H. Kanugo Spouse of Shri Hemant P. Kanugo

6 Smt. Neha K. Kanugo Spouse of Shri Kamal P. Kanugo

7 Smt. BhavikaV. Kanugo Spouse of Shri Vimal P. Kanugo

8 Smt. PallaviA. Seth Spouse of ShriAshokM. Seth

C. Enterprises Over which any of (A) and (B) can exercise control or significance influence

1 M/s. AMS Trading & Investments Pvt Ltd Directors -Ashok M. Seth & Hemant P. Kanugo

2 M/s. Seth Iron & Steel Pvt. Ltd. Directors -Ashok M. Seth & Vipresh V. Chaturvedi

3 M/s. Seth Steelage Pvt. Ltd. Directors-Ashok M. Seth & Vipresh V. Chaturvedi

4 M/s. Prakash Stainless Pvt. Ltd. Directors - Prakash C. Kanugo & Hemant P. Kanugo

5 M/s. PCK Metal Pvt. Ltd. Directors-Prakash C. Kanugo & Hemant P. Kanugo

41 .ADDITIONAL REGULATORY INFORMATION REQUIRED BYSCHEDULE III i. Details of benami property held

No proceedings have been intiated on are pending against the company for holding benami property under the Benami Transactions (Prohibition)Act, 1988 (45 of 1988) and Rules made thereunder.

ii Borrowing secured against current assets

The company does not has borrowings from banks and financial institutions on the basis of security of current assets. The quarterly returns or statement of current assets filed by the company with banks and financial institutions are in agreement with the books of accounts.

iii Wilful defaulter

The company has not been declared wilful defaulter by any bankorfinancial institution or any lender.

iv Relationship with struck off companies

The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

v Compliance with numberof layers of companies

The company has complied with the numberof layers prescribed under the Companies Act, 2013.

vi Compliance with approved scheme(s) of arrangements

The company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

vii Utilisation of borrowed funds and share premium

The company has not advanced or loaned or invested funds to any other person(s) orentity(ies), including foreign entities (International) with the understanding that the Intermediary shall

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

viii Undisclosed Income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

ix Details of crypto currency or virtual currency

The company has not traded or invested in crypto currency or virtual currency during the current or previous year.

x Valuations of PP&E, intangible assets and investment property

The company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

xi Title deeds of immovable properties not held in name of the company

The title deeds of all the immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in note no. 3 to the financial statement, are held in the name of the company.

xii Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are yet to be registered with the Registrar of companies beyond the statutory period.

42 Previous year''s figure have been regrouped / recast/ reclassified, wherever necessary.

AS PER OUR REPORT OF EVEN DATE FOR PIPARA & CO LLP

CHARTERED ACCOUNTANTS FRN : 107929W/W100219

FOR AND ON BEHALF OF THE BOARD

Sd/-

BHAWIK MADRECHA

PARTNER Sd/- Sd/- sd I-

mhim^BoSrlPRAKASH C. KANUGO ASHOK M. SETH HIMANSHU SETHIA

PI ACF² MIIMRAI ^UPJM1J,i4 CHAIRMAN & EXECUTIVE DIRECTOR & COMPANY SECRETARY

DATE '' 26™ Mav 2023 MANAGING DIRECTOR CHIEF FINANCIAL OFFICER MEMBERSHIP NO.

'' ^y’ DIN : 00286366 DIN: 00309706 ACS 68328

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Mar 31, 2015

1 Disclosure under Revised Accounting Standard 15 on Employee Benefits:

Consequent to Accounting Standard 15 "Employee Benefits" (Revised 2005) becoming effective, the Company has made the provision for Defined Contribution Plan and Defined Benefit Plan.

Defined Contribution Plan

During the year, the Company has recognized Rs. 3,489,560/- (Previous Year Rs. 3,500,521/- ) towards Provident Fund and Employees, State Insurance Corporation as Defined Contribution Plan Obligation.

Defined Benefit Plan Gratuity & Leave Encashment

Liability is computed on the basis of Gratuity & Leave Encashment payable on retirement, death and other withdrawals as per the Act and already accrued for past service, with the qualifying wages/salaries appropriately projected, as per the Projected Unit Credit Method.

2 Segment Reporting

The Company's operations predominantly relates to manufacturing and trading of "Stainless Steel Tubes & Pipes", Hence there is no separate reporting segment as per Accounting Standard 17 "Segment Reporting" as prescribed under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

3 Related Party Disclosure

Disclosure requirement as per Accounting Standard 18 (AS-18) "Related Party Disclosure" as prescribed under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

The information has been given in respect of such vendors to the extent they could be identified as "Micro, Small and Medium" Enterprises on the basis of information available with the Company.

4 Some of the balances of Trade Receivables, Deposits, Loans & Advances, Advances received from customers, Liability for expenses and Trade Payables are subject to confirmation from the respective parties and consequential reconciliation/adjustment arising there from, if any. The management, however, does not expect any material variation.

5 In the opinion of the Management, Current Assets, Loans & Advances are approximately of the value stated, if realized, in the ordinary course of business. The provision for all known and determined liability is adequate and not in the excess of the amount reasonably required.

6 Sundry balances (net) written off amounting to Rs. 20,010,323/- are net of sundry credit balances written back amounting to Rs.4,527,680/- (in previous year sundry balances (net) written off amounting to Rs. 31,326,734/- are net of sundry credit balances written back amounting to Rs.85,65,196/-)

7 Prior period adjustment (Net) amounting to Rs 35,805/- (credit) {Previous year Rs. 31,090/- (credit)} includes income of Rs. 37,864/- (Previous year Rs. 290,025/- ) and expenses Rs. 2,059/- (Previous year Rs.258,935/-).

8 During the year, the Company has written off Bad debts amounting to Rs.102,592,154/-. This being a material amount, the same has been shown as 'Exceptional Item' for the year. ('Exceptional Item' for the previous year ended 31st March, 2014 represents gain of Rs.17,500,000/- on account of forfeiture of advance due to cancellation of sale contract by the customer as per terms of contract.)

9 Discolosures of derivative instruments

The Company has entered into the following derivative instruments. All the forward contracts are accounted for as per Accounting Policies stated in Note 1(i) annexed to Balance Sheet and Statement of Profit and Loss.

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations. The Company does not use forward contracts for speculative purposes.

10 During the year, pursuant to the notification of Schedule II to the Companies Act, 2013 with effect from 1 April, 2014, the Company has revised the useful life of its assets to the useful life specified in Schedule II whereas previously the Company was providing the depreciation on its fixed assets at the rates specified in Schedule XIV of the Companies Act, 1956. Accordingly, the carrying amount of the fixed assets as on 1st April, 2014 has been depreciated over the remaining revised useful life of the fixed assets. As a result, the depreciation charge for year ended 31st March, 2015 is higher by Rs.23,621,956/- and profit before tax year ended 31st March, 2015 is lower to the said extent. Further, based on the transitional provisions provided in note 7(b) of the Schedule II, fixed assets whose useful life has already been completed as on 1st April, 2014, the carrying value of those fixed assets amounting to Rs. 9,070,071/- and the corresponding deferred tax thereon amounting to Rs. 3,082,917/- have been debited and credited respectively to the opening balance of 'Retained Earnings'.

11 The Company has entered into a Joint Venture Agreement with Tubacex S. A. on February 13, 2015. Pursuant to the joint ventured agreement, the Company proposes to transfer its Seamless Stainless Steel Tubes and Pipes business (herein after referred as "seamless business" or "discontinued operations") to the new Joint Venture Company (JVC) (incorporated on April 22, 2015) at a net consideration of Rs. 209.16 crores and sell additional land measuring about 16,188 sq. metres for an additional consideration of about Rs.20 crores subject to fulfilment of various terms & condition based on which the execution of the business transfer agreement will take place. The JVC has been incorporated as a wholly owned subsidiary and subsequently the 67.53% of the shareholding in the JVC will be held by Tubacex S.A and 32.47% by the Company. The effect of the said transaction will be given on fulfilment of various terms and conditions of joint venture agreement.

The Company operates under a single business segment i.e. 'Stainless Steel Tubes & Pipes' within the meaning of Accounting Standard – 17 'Segment Reporting'. The transfer of the seamless business would involve transfer of assets and liabilities as are related to the seamless business and as the same are identified by the parties to the transaction. For this purpose, employees, tangible and intangible assets, current assets, market territories, other liabilities etc. are being identified as are related to the seamless business. In view of common employees, marketing expenses, operating expenses, finance cost, common customers, common suppliers, logistics & distribution arrangements and general corporate overheads, which are not separately identifiable for seamless business, the Company is unable to determine the income, expenses, assets and liabilities clearly attributable to the discontinued operations. As per the practice followed by the Company for preparation of its financial statements for financial reporting purposes, its present system of maintenance of books of account and other relevant records do not provide clearly identifiable details of income and expenditure as are related to the seamless business. Under the circumstances, the management is of the view that seamless business, a component of the enterprise, cannot be distinguished operationally and for financial reporting purposes and also in view of the fact that the binding agreement for the transfer of the seamless business is pending, the initial disclosures, namely total assets, total liabilities, revenue, expenses, net cash flows and pre-tax profit or loss in respect of the ordinary activities attributable to the discontinuing operation and the income tax expense related thereto pertaining to the discontinuing operations as required by Accounting Standard (AS) 24 'Discontinuing Operations' are not given.

12 The Company's pending litigations comprise of claims against the Company and proceedings pending with Statutory and Ta x Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, whenever required and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material impact on its financial position (Refer note no 28 for details on contingent liabilities).

13 The Company periodically reviews all its long term contracts including derivative contracts to assess for any material foreseeable losses. Based on such review, the Company has made adequate provisions for these long term contracts in the books of account as required under any applicable law/ accounting standard.

14 For the year ended march 31, 2015. the Company is not required to transfer any amount into the investor education & protection fund.

15 Disclosure in respect of Corporate Social Responsibility Expenditure ( CSR ) is as under. (a) Gross amount required to be spent by the company during the year is Rs 4,850,465/- (b) Amount spent during the year is Rs Nil

16 Disclosure pursuant to clause 32 of the Listing Agreement:

17 Details of loans given , Investments made and guarantee given covered u/s 186 (4) of the Companies Act, 2013:

Details of the loans are given in note 45 above and details of investment are given in note no 10 above.

18 During the previous year, Company had initiated the development of the "Industrial Park Project" on its idle land at Palgam (Umbergaon) and accordingly, it had converted the Land from Fixed Assets into Stock-in- Trade at lower of cost or net realizable value i.e. at cost of Rs. 88,18,164/-. It had passed a special resolution for including real estate business activities as one of the main object and obtained approval from shareholders. However, the Company could not alter the main object clause of memorandum and articles of association as the Registrar of the Companies (ROC) has approved the same subject to change of name of the Company in line with proposed new business. Accordingly, during the year, it has reconverted the Land from stock-in-trade to Fixed Assets.

19 During the previous year, Company has incorporated on 10th April, 2013, wholly-owned foreign subsidiary viz. Pioneer Stainless & Alloy - F.Z.C. at Ajman, United Arab Emirates for doing trade activities internationally in ferrous and non ferrous metal items.

20 Figures of the previous year have been re-grouped, re-classified and re-arranged, wherever necessary.

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Mar 31, 2014

1 Earnings Per Share (EPS)

In accordance with Accounting Standard 20 - "Earning per Share" notified under Companies (Accounting Standard) Rules, 2006, (as amended) and relevant provisions of Companies Act, 1956 the required disclosure is given below:

The Company does not have any potential dilutive equity shares. Consequently, the basic and diluted earnings per share remain the same.

2 Disclosure under Revised Accounting Standard 15 on Employee Benefits:

Consequent to Accounting Standard 15 "Employee Benefits" (Revised 2005) becoming effective, the Company has made the provision for Defined Contribution Plan and Defined Benefit Plan.

Defined Contribution Plan

During the year, the Company has recognized Rs. 3,500,521/- (Previous Year Rs. 3,902,078/-) towards Provident Fund and Employees, State Insurance Corporation as Defined Contribution Plan Obligation.

Defined Benefit Plan

Gratuity & Leave Encashment

Liability is computed on the basis of Gratuity & Leave Encashment payable on retirement, death and other withdrawals as per the Act and already accrued for past service, with the qualifying wages/salaries appropriately projected, as per the Projected Unit Credit Method.

3 Segment Reporting

The Company''s operations predominantly relates to manufacturing and trading of "Stainless Steel Tubes & Pipes", and the revenue from Real Estate segment is yet to commence, there is no separate reporting segment as per Accounting Standard 17 "Segment Reporting" notified under the Companies (Accounting Standard) Rules, 2006.

4 Related Party Disclosure

Disclosure requirement as per Accounting Standard 18 (AS-18) "Related Party Disclosure" notified under Companies (Accounting Standard) Rules, 2006, (as amended) and relevant provisions of Companies Act 1956,

Related Parties Nature of relationship

M/s. Pioneer Stainless & Alloys F.Z.C. Subsidiary Company (w.e.f. 10th April, 2013)

M/s. Sunrise Metal Industries Enterprise of which key management person (Shri Prakash Kanugo) is proprietor

M/s. AMS Trading & Investments Pvt. Ltd. M/s. Seth Iron & Steel Pvt. Ltd. M/s. Seth Steelage Pvt. Ltd. Associates / Enterprises over which direcors and / or their relatives has significant influence M/s. PCK Metal Pvt. Ltd. M/s. Seth Carbon & Alloys Pvt. Ltd.

M/s. Prakash & Daga Infra Projects Pvt. Ltd.

M/s. Prakash C. Kanugo (HUF)

M/s. Ashok M. Seth (HUF)

M/s. Prakash Integrated Hi-Tech Steel And Metal Cluster Private Limited

M/s. Chandan and Kanugo Land Developer

M/s. Hemant & Co.

M/s. Prakash Land Developer

M/s. Hemant P Kanugo ( HUF )

M/s Vimal P Kanugo ( HUF )

Shri Prakash C. Kanugo, Chairman & Managing Director

Shri Ashok M. Seth, Executive Director Key Management Personnel

Shri Hemant P. Kanugo, Whole Time Director

Shri Kamal P. Kanugo , Whole Time Director

Smt. Babita P. Kanugo

Shri Vimal P. Kanugo

Shri Kirti P. Kanu o Relatives of Key Management Personnel

Smt. Ekta H. Kanugo

Note: Related Party Relationships have been identified by the management and relied upon by the Auditors.

5 Contingent Liabilities

31st March 31st March 2014 In Rs 2013 In Rs

Contingent liabilities not provided for in respect of:

(a) Guarantees given by the bankers of the company 43,665,328 48,226,175

(b) Sales Tax demands disputed in appeals 15,459,374 448,879

(c) Letter of Credit - 16,104,672

(d) Gujarat Commercial Tax Penalty - 234,581

(e) Central Sales Tax Liability towards pending declaration forms 29,811,068 7,594,259

(f) Disputed Excise Duty Rebate Claim 551,080 551,080

(g) Disputed CENVAT Credit 3,599,712 3,599,712

(h) Commitment towards development work for Industrial Park Project 85,000,000 -

6 Details of dues to micro, small and medium enterprises as defined under the MSMED Act, 2006

The Company has amounts due to suppliers under The Micro, Small and Medium Enterprise Development Act, 2006, (MSMED Act) as at 31st March, 2014. The disclosure pursuant to the said Act is as under:

The information has been given in respect of such vendors to the extent they could be identified as "Micro, Small and Medium" Enterprises on the basis of information available with the Company.

7 Some of the balances of Trade Receivables, Deposits, Loans & Advances, Advances received from customers, Liability for expenses and Trade Payables are subject to confirmation from the respective parties and consequential reconciliation/adjustment arising there from, if any. The management, however, does not expect any material variation.

8 In the opinion of the Management, Current Assets, Loans & Advances are approximately of the value stated, if realized, in the ordinary course of business. The provision for all known and determined liability is adequate and not in the excess of the amount reasonably required.

9 Sundry balances (net) written off amounting to Rs. 31,326,734/- are net of sundry credit balances written back amounting to Rs.85,65,196/- (in previous year sundry credit balance written back amounting to Rs. 9,284,930/- are net of sundry debit balances written off amounting to Rs.4,653,705/-)

10 Prior period adjustment (Net) amounting to Rs 31,090/- (credit) {Previous year Rs. 1,100,001/-(debit)} includes income of Rs. 290,025/- (Previous year Rs. 130,807/- ) and expenses Rs. 258,935/- (Previous year Rs.1,230,808/-).

11 Exceptional item represents gain of Rs.1,75,00,000/- on account of forfeiture of advance due to cancellation of sale contract by the customer as per terms of contract.

12 Disclosures of derivative instruments

The Company has entered into the following derivative instruments. All the forward contracts are accounted for as per Accounting Policies stated in Note 1(i) annexed to Balance Sheet and Statement of Profit and Loss.

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations. The Company does not use forward contracts for speculative purposes.

13 Company has initiated the development of the "Industrial Park Project" on its idle land at Palgam (Umbergaon) and accordingly, the Company has converted the Land into Stock-in-Trade at lower of cost or net realizable value i.e. at cost of Rs. 88,18,164/-.

14 During the year, Company has incorporated on 10th April, 2013, wholly-owned foreign subsidiary viz. Pioneer Stainless & Alloy - F.Z.C. at Ajman, United Arab Emirates for doing trade activities internationally in ferrous and non ferrous metal items.

15 Figures of the previous year have been re-grouped, re-classified and re-arranged, wherever necessary.

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Mar 31, 2013

1 Disclosure under Revised Accounting Standard 15 on Employee Benefits:

Consequent to Accounting Standard 15 "Employee Benefits" (Revised 2005) becoming effective, the Company has made the provision for Defined Contribution Plan and Defined Benefit Plan.

Defined Contribution Plan

During the year, the Company has recognized Rs. 1,493,963/- (Previous Year Rs. 1,408,812/-) towards Provident Fund and Employees, State Insurance Corporation as Defined Contribution Plan Obligation.

Defined Benefit Plan Gratuity & Leave Encashment

Liability is computed on the basis of Gratuity & Leave Encashment payable on retirement, death and other withdrawals as per the Act and already accrued for past service, with the qualifying wages/salaries appropriately projected, as per the Projected Unit Credit Method.

2 Segment Reporting

The Company''s operations predominantly relates to manufacturing and trading of "Stainless Steel Tubes & Pipes", Hence there is no separate reporting segment as per Accounting Standard 17 "Segment Reporting" notified under the Companies (Accounting Standard) Rules, 2006.

3 Related Party Disclosure

Disclosure requirement as per Accounting Standard 18 (AS-18) "Related Party Disclosure" notified under Companies (Accounting Standard) Rules, 2006, (as amended) and relevant provisions of Companies Act 1956,

4 Contingent Liabilities

31st March, 2013 31st March, 2012 In Rs. In Rs.

Contingent liabilities not provided for in respect of:

(a) Guarantees given by the bankers of the company 48,226,175 114,170,699

(b) Sales Tax demands disputed in appeals 448,879 489,346

(c) Letter of Credit 16,104,672 3,576,074

(d) Gujarat Commercial Tax Penalty 234,581 234,581

(e) Central Sales Tax Liability towards pending declaration forms 7,594,259 2,828,568

5 Details of dues to micro, small and medium enterprises as defined under the MSMED Act, 2006

The Company has amounts due to suppliers under The Micro, Small and Medium Enterprise Development Act, 2006, (MSMED Act) as at 31st March, 2013. The disclosure pursuant to the said Act is as under:

The information has been given in respect of such vendors to the extent they could be identified as "Micro, Small and Medium" Enterprises on the basis of information available with the Company.

6 Some of the balances of Trade Receivables, Deposits, Loans & Advances, Advances received from customers, Liability for expenses and Trade Payables are subject to confirmation from the respective parties and consequential reconciliation/adjustment arising there from, if any. The management, however, does not expect any material variation.

7 In the opinion of the Management, Current Assets, Loans & Advances are approximately of the value stated, if realized, in the ordinary course of business. The provision for all known and determined liability is adequate and not in the excess of the amount reasonably required.

8 Sundry credit balances written back amounting to Rs. 9,284,930/- are net of sundry debit balances written off amounting to Rs.4,653,705/- (in previous year sundry credit balance written back amounting to Rs.1,511,517/- are net of sundry debit balances written off amounting to Rs.3,974,001/-)

9 Prior period adjustment (Net) amounting to Rs 1,100,001/-(debit) {Previous year Rs. 1,598,251/-(debit)} includes income of Rs. 130,807/- (Previous year Rs. 1,134,791/- ) and expenses Rs. 1,230,808/- (Previous year Rs.2,733,042/-).

10 Disclosures of derivative instruments

The Company has entered into the following derivative instruments. All the forward contracts are accounted for as per Accounting Policies stated in Note 1(i) annexed to Balance Sheet and Statement of Profit and Loss.

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations. The Company does not use forward contracts for speculative purposes.

11 Subsequent to the balance sheet date, on 10th April, 2013, the Company has incorporated wholly-owned foreign subsidiary viz. Pioneer stainless & alloy- F.Z.E. at United Arab Emirates.

12 Figures of the previous year have been re-grouped , re-classified and re-arranged, wherever necessary.

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Mar 31, 2012

A) 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 holder of equity shares is entitled to one vote per share. 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.

The Board of Directors, in their meeting on 28th May, 2012, proposed a final dividend of Re.1 per equity share. The proposal is subject to the approval of shareholders at the Annual General Meeting to be held on 14th August, 2012. The total dividend appropriation for the year ended 31st March, 2012 amounted to Rs.1,75,00,039/- excluding corporate dividend tax of Rs.28,38,944/-.

During the year ended 31st March, 2011, the amount of final dividend recognized as distributions to equity shareholders was Re.1 per equity share. The total dividend appropriation for the year ended 31st March, 2011 amounted to Rs.1,75,00,039/- excluding corporate dividend tax of Rs.28,38,944/-.

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 the proportion to the number of equity shares held by the shareholders.

a) Foreign currency loan from Bank (secured) carries interest @ LIBOR 1.5 % p.a. The loan is repayable in 9 half yearly installment of USD 388,888.88 each along with interest, from the date of loan, viz., 16th March, 2007. The loan is secured by way of mortgage of factory land & building and hypothecation of plant & machinery of Company at Umbergaon. (First pari passu charges between ICICI Bank & Vijaya Bank ) further it is also secured by mortgage of residential flat at Tardeo Tower, Mumbai belonging to Director and his relatives and by personal guarantee of three Directors).

b) Indian rupee loan from Bank (secured) carries interest @BPLR 0.50 % 0.25 % which was 14.50 % to 15.75 % p.a. The loan is repayable in 84 monthly installments of Rs 14,57,764/- each along with interest from the date of loan, viz., 10th July, 2008 the loan is secured by way of mortgage of factory land & building, and hypothecation of plant & machinery of Company at Umbergaon. (First pari passu charges between ICICI Bank & Vijaya Bank )

c) i) Vehicle loans from Banks (secured) carries interest in the range of 7.50% p.a. to 12.50% p.a. All the loans are repayable in 34 - 36 monthly installments from the date of disbursement. These loans are secured against hypothecation of specific capital assets i.e. Motor Cars and Post Dated Cheques for Principal & Interest payable thereon.

ii) Vehicle loan from NBFC (secured) carries interest of approximately 11.50% p.a. The loan is repayable in 34 monthly installments from the date of disbursement and is secured against hypothecation of specific capital asset i.e. Motor Car and Post Dated Cheques for Principal & Interest payable thereon.

Cash Credit from Banks (Secured) are repayable on demand and carries interest @ 12% to 16% p.a., Buyers Credit (Secured) represents Foreign Currency Buyers Credit from various Banks. The said facility is repayable on demand. These loans carries interest ranging from 2 % to 4.25% p.a., Export Packing Credit from Banks (Secured) are for a tenor of maximum up to 180 days and the rate of interest is Margin LIBOR i.e. approximately 4% to 4.5% p.a. and Bill Discounting from Banks (Secured) represents bill discounted with various banks. The tenor of the loan is in the range of 60 - 120 days and the rate of interest (local bill discounting) is 13.25% p.a. to 14.25% p.a. and rate of interest (foreign bill discounting) is in the range of 3.80% to 4.50% p.a., All these loans are secured by Hypothecation of Stock of Raw Material, Stock-in-process, Finished Goods, book debts (both present and future), Receivables and Collateral security in the form of Land, Building and on the entire Fixed Assets at Silvassa (First Pari Passu charges between Vijaya Bank, ICICI Bank, Bank of Baroda, The Royal Bank of Scotland and Standard Chartered Bank) and collateral security in the form of Land & Building and entire Fixed Assets at Umergaon (Second Pari Passu charges between Vijaya Bank, ICICI Bank, Bank of Baroda , The Royal Bank of Scotland and Standard Chartered Bank) and first pari-passu charge on office premises no 101 & 102 at Islampura Street, at Mumbai and 701, Mahalaxmi chambers, at Mumbai belonging to Director and his relatives and Personal Guarantee of three Directors and their relatives.

Cash Credit from Bank (Unsecured) carries interest approximately 14% p.a. The interest is payable at monthly rests, Buyers Credit (Unsecured) represents Foreign Currency Buyers Credit from various Banks. The said facility is repayable on demand & carries interest ranging from 2% to 4.25% p.a., Working capital loan from Bank (Unsecured) is availed for meeting working capital requirements of the company. The maximum tenor of the loan is 180 days and rollover is permitted after cooling period 3 days. The current rate of interest is 12.75% p.a. The interest is payable monthly at the end of each month / at the end of closure of the loan transaction, Export Packing Credit (Unsecured) availed from a Bank carries interest approximately 2.25% p.a. The interest is payable at monthly rests, Bill Discounting from Bank (Unsecured) represents export bills discounted with a bank. The tenor of the loan is in the range of 60 to 120 days and the rate of interest is approximately 3.50% p.a. and Bill Discounting from a NBFC (Unsecured) is availed from a finance company. The tenor of the loan is 90 days and the rate of interest is 13.25% p.a.

1 Disclosure under Revised Accounting Standard 15 on Employee Benefits:

Consequent to Accounting Standard 15 "Employee Benefits" (Revised 2005) becoming effective, the Company has made the provision for Defined Contribution Plan and Defined Benefit Plan.

Defined Contribution Plan

During the year, the Company has recognized Rs. 3,574,023/- (Previous Year Rs. 2,774,399/-) towards Provident Fund and Employees, State Insurance Corporation as Defined Contribution Plan Obligation.

Defined Benefit Plan Gratuity & Leave Encashment

Liability is computed on the basis of Gratuity & Leave Encashment payable on retirement, death and other withdrawals as per the Act and already accrued for past service, with the qualifying wages/salaries appropriately projected, as per the Projected Unit Credit Method.

2 Segment Reporting

The Company's operations predominantly relates to manufacturing and trading of "Stainless Steel Tubes & Pipes", Hence there is no separate reporting segment as per Accounting Standard 17 "Segment Reporting" notified under the Companies (Accounting Standard) Rules, 2006.

3 Related Party Disclosure

Disclosure requirement as per Accounting Standard 18 (AS-18) "Related Party Disclosure" notified under Companies (Accounting Standard) Rules, 2006, (as amended) and relevant provisions of Companies Act 1956,

4 Contingent Liabilities

31st March, 2012 31** March, 2011

In Rs. In Rs.

Contingent liabilities not provided for in respect of:

a) Guarantees given by the bankers of the company 114,170,699 26,002,411

b) Sales Tax demands disputed in appeals 479,346 3,926,267

c) Letter of Credit 933,943,287 442,266,854

d) Gujarat Commercial Tax Penalty 234,581 234,581

5 Utilization of money raised through public issue

During previous year, the Company came out with Initial Public Offer (IPO) of its Equity Shares aggregating Rs.687,504,290/- and the same were listed on the Bombay Stock Exchange Limited (BSE) and the National Stock Exchange of India Limited (NSE). Out of amount debited to share premium account of Rs.45,602,005/- (net of tax) in the financial year 2010-11, expenses of Rs.924,174/- pertaining to the issue of shares has been written back during the year as the same is no longer payable. Further during the year, the tax impact of Rs.1,410,392/- has been credited to share premium account on claim amounting to Rs.4,347,025/- under section 35D of Income Tax Act, 1961, on completion of pending cost of projects. Details of utilization of funds received from IPO of Equity Shares are as under:

The information has been given in respect of such vendors to the extent they could be identified as "Micro, Small and Medium" Enterprises on the basis of information available with the Company.

6 Some of the balances of Trade Receivables, Deposits, Loans & Advances, Advances received from customers, Liability for expenses and Trade Payables are subject to confirmation from the respective parties and consequential reconciliation/adjustment arising there from, if any. The management, however, does not expect any material variation.

7 In the opinion of the Management, Current Assets, Loans & Advances are approximately of the value stated, if realized, in the ordinary course of business. The provision for all known and determined liability is adequate and not in the excess of the amount reasonably required.

8 Sundry credit balances written back amounting to Rs.1,511,517/- are net of sundry debit balances written off amounting to Rs.3,974,001/- (in previous year sundry debit balance written off amounting to Rs.1,080,856/- are net of sundry credit balances written back amounting to Rs.7,627,246/-)

9 Prior period adjustment (Net) amounting to Rs. 1,598,251/-(debit) {Previous year Rs. 773,423/-(credit)} includes income of Rs.1,134,791/- (Previous year Rs. 1,037,678/-) and expenses Rs. 2,733,042/- (Previous year Rs.264,255/-)

10 During the year ended 31st March, 2012, the Revised schedule VI notified under The Companies Act 1956, has become applicable to the Company, for presentation and preparation of its financial statement. The adoption of revised schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impacts on presentation and disclosure made in the financial statements. The Company has also reclassified the previous year figure in accordance with the requirements applicable in the current year.

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Mar 31, 2011

1) Some of the balances of Sundry Debtors, Deposits, Loans & Advances, Advances received from customers and Sundry Creditors are subject to confirmation from the respective parties and consequential reconciliation/adjustment arising there from, if any. The management, however, does not expect any material variation.

2) The Company has amounts due to suppliers under The Micro, Small and Medium Enterprise Development Act, 2006, (MSMED Act) as at 31ST March, 2011. The disclosure pursuant to the said Act is as under:

The information has been given in respect of such vendors to the extent they could be identified as “Micro, Small and Medium” Enterprises on the basis of information available with the Company.

3) In the opinion of the Management, Current Assets, Loans & Advances are approximately of the value stated, if realized, in the ordinary course of business. The provision for all known and determined liability is adequate and not in the excess of the amount reasonably required.

4) Sundry debit balances written off amounting to Rs. 1,080,856/- are net of sundry credit balances written back amounting to Rs. 7,627,246/- (in previous year sundry credit balance written back amounting to Rs. 2,697,956/- are net of sundry debit balances written off amounting to Rs. 1,663,763/-)

5) Prior period adjustment (Net) amounting to Rs. 773,423/-(Cr.) {Previous year Rs. 266,789/-(Cr.)} includes income of Rs.1,037,678/- (Previous year Rs. 1,142,317/-) and expenses Rs. 264,255/- (Previous year Rs. 875,528/-)

6) During the year, the Company has reviewed its fixed assets for impairment loss as required by Accounting Standard 28 “Impairment of Assets”. In the opinion of management no provision for impairment loss is considered necessary.

7) During the year 2008-09 search operation u/s. 132 of the Income Tax Act, 1961 was carried out by the Income Tax Authorities on the Company and the Company, based on professional advice, had declared undisclosed income of Rs. 71,097,351/- to buy peace. The income tax liability arising as a result of such declaration has been provided for in the books of accounts in the said year. However, based on professional advice, the penalty, if any, payable on the tax liability has so far not been provided for as the same has not yet been quantified by the Tax Authorities.

8) Related Party Disclosure:

Disclosure requirement as per Accounting Standard 18 (AS-18) "Related Party Disclosure" issued by the Institute of Chartered Accountants of India.

9) Initial Public Offer

During the current year, the Company has completed an Initial Public Offer (IPO) of its 6,250,039 Equity Shares of Rs. 10/- each for cash at a price of Rs. 110/- The premium of Rs. 100/- per share amounting to Rs.625,003,900/- is credited to share premium account. Expenses pertaining to the issue of shares amounting Rs.52,098,433/- after net of tax of Rs.6,496,428/- i.e. Rs.45,602,005/- has been written off against the balance available in share premium account in terms of section 78 of the Companies Act, 1956.

Pursuant to the public issue, shares of the Company were listed on Bombay Stock Exchange and National Stock Exchange with effect from August 25, 2010.

10) Figures of the previous year have been re-grouped, re-classified and re- arranged, wherever necessary.