Notes to Accounts of Stelco Strips Ltd.

Mar 31, 2012

(a) Rights and restrictions attached to shares

The company has one class of equity shares having a par value of Rs.10 each. Each shareholder is eligible for one vote per share held.In the event of liquidation, equity shareholders are eligible to receive the remaning assets of the company after distribution of all preferential amounts in proportion to their shareholding.

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Mar 31, 2010

Contingent Liabilities

There have been no capital contracts pending to be executed at the end of the year (Previous Year Rs.Nil)

(ii) In the opinion of the Board of Directors, the current assets, loans and advances and current liabilities are having the value at which they are stated in the Balance Sheet, if realised, in the ordinary course of business and subject to confirmation.

(iii) There is no micro, small & medium enterprises under the Micro, Small & Medium Enterprises Development Act, 2006 to whom the company owes a sum exceeding Rs.1.00 lac for more than 30 days as on the Balance Sheet date to extent such enterprises have been identified based on the information available with the company.

(iv) Secured Loans

(a) Term Loans are secured by first charge on block assets of the company and second charge on the moveable assets.

(b) Working capital facilities are secured by way of first charge on current as well as fixed assets of the company.

(v) As the Companys business activity falls within a single business segment i.e. Steel, the disclosure requirement of the Accounting Standard (AS-17) on segment reporting issued by the Institute of Chartered Accountants of India is not applicable

(vi) Accounting for Taxes & Income

Provision for taxation for year comprises of current tax. Current tax is the amount of Income Tax ascertained on the basis of assessable profit computed in accordance with the provisions of Income Tax Act, 1956. Deferred tax is recognized, subject to the consideration prudence, on timing difference, being the difference between income and Accounting income that originate in one period and are of reversal in one or more subsequent period.

The Company has made net Deferred Tax Liability amounting to Rs. 25,60,000/- during the year charged from general reserve.

(vii) Impairment of Fixed Assets

The Company has reviewed as at 31.03.2010 the future earning of its cash generating unit in accordance of the "Accounting Standard 28 Impairment of Asset" issued by the Institute of Chartered Accountants of India. As the carrying amount of the assets does not exceed the future recoverable amount, consequently no adjustment is considered necessary by the management.

(viii) Foreign Currency Transactions

(i) Foreign currency transactions are recorded at exchange rate prevailing at the time of actual payment/ receipt.

(ii) The export sales are converted at exchange rate prevailing on the date of negotiation of export bills.

Export Receivable are net of export bill discounted.

(ix) Previous year figures have been re-grouped/re-arranged wherever considered necessary to make them comparable with current year figures.

(x) Schedules A to T to the Balance Sheet form an integral part of Balance Sheet.