Notes to Accounts of Vaswani Industries Ltd.

Mar 31, 2024

p. Provision and Contingencies

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the Financial Statement.

q. Employee Benefits:-

a. Provident Fund is a defined contribution scheme and the contributions are charged to the Profit & Loss A/c of the year when the contributions to the Government Funds is due.

b. Gratuity Liability is defined benefit obligations and is provided for on the basis of Actuary Valuation obtained from Registered Actuary.

c. Short Term Compensated absences are provided for based on estimates. Long Term compensated absences are provided for based on actuarial valuation.

d. Actuarial gains / losses are immediate taken to the profit & loss account and are not deferred.

e. Re-measurement of defined benefit plans in respect of post-employment are charged to the Other Comprehensive Income.

r. Segment Reporting:-

a) Business Segment: - The accounting policies adopted for segment reporting are in the line with the accounting policies of the company. Segment Revenue, Segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue, Expenses, Assets, Liabilities which relates to the company as whole and not allocable to segment on reasonable basis have been included under “Unallocated revenue/ expenses/ assets/ liabilities”.

b) Geographical Segment: - The Company sells its products within India. The condition prevailing in India being uniform. So no separate geographical segment disclosure is considered necessary.

s. Research & Development Expenditure:-

Revenue expenditure pertaining to research is charged to the Profit and Loss Statement. Development costs of products are charged to the Profit and Loss Statement unless a product’s technological feasibility has been established, in which case such expenditure is capitalized.

t. Intangible assets:-

Cost incurred on intangible assets, resulting in future economic benefits are capitalized as intangible assets and amortized on equated basis over the estimated useful life of such assets.

u. Events Occurring After the Balance Sheet Date:

Events occurring after the balance sheet date and related to circumstances existing on the Balance Sheet are accounted for. Events not related to circumstances existing on the Balance Sheet date are disclosed by way note to accounts.

22. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

23. In the Opinion of the Board of directors, the loans, advances and other current & non-current assets have a value on realization in the ordinary course of business, at least equal to the amounts of which these are stated and that the provisions for the known liabilities are adequate and not in excess of the amount reasonably necessary.

24. The outstanding balance at the year end in respect of Sundry Creditors, Loans and Advances, Deposits and certain Bank Accounts are subject to confirmation / reconciliation from the respective parties and the same have been reckoned in these accounts as per the balances appearing in the books. Any further adjustments arising out of reconciliation will be accounted for as and when such reconciliation is completed. The company however does not expect any material effect in a particular year or in future years.

25. In the opinion of the Management, Current Assets, Loans & Advances have the value at which they are stated in the balance sheet if realized in the ordinary course of the business.

26. In the opinion of the management there is no such events occurred after the date of Balance sheet, which needs disclosure in these accounts.

27. In respect of Micro/Small/Medium Enterprises Development Act 2006, certain disclosures are required to be made relating to Micro/Small/Medium Enterprises. The company is in the process of compiling relevant information''s from its suppliers about their coverage under the act.

Amount due to Micro and Small Enterprises as defined in the The 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.

31. Segment-wise Revenue Results:

Basis of Preparation

Business Segment-: Business segments of the company have been identified as distinguishable components that are engaged in a group of related product and that are subject to risks and returns different from other business segments. Accordingly Steel, Power, Real State & Fabrics have been identified as the business segments.

36. Other Statutory Information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company has not advanced or loaned or invested funds to any other person or entity, including foreign entities 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 or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vi) The Company has not received any fund from any person or entity, including foreign entities with the understanding 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 or

(b) provide any guarantee, security or the like on behalf of the Ultimate beneficiaries.

(vii) The Company does not have any such transaction which is not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

(viii) The Company has not been declared as Willful defaulter by any Banks, Financial institution or Other lenders

37. The figures in financial statements are presented in Rs. in lakhs and hence the totals at various pages may appear to be different from apparent total, but such anomaly is merely due to presentation of figures in lakhs.

38. The company has been sanctioned working capital limits in excess of five crores rupees, in aggregate, from banks or financial institutions on the basis of security of current assets during any point of time of the year. We have considered the quarterly return/statement filed by the company till date for the period under audit. The quarterly returns or statements filed by the company with such banks or financial institutions are in agreement with the books of account of the Company other than those mentioned below

AS PER OUR REPORT OF EVEN DATE FOR AND ON BEHALF OF THE BOARD

FOR, AMITABH AGRAWAL & COMPANY VASWANI INDUSTRIES LIMITED

CHARTERED ACCOUNTANTS CIN : L28939CT2003PLC015964

FRN 006620C

Sd/- ^Sd/- ^Sd/-

AMAR SINHA YASHWANT VASWANI SATYA NARAYAN GUPTA

PARTNER DIRECTOR DIRECTOR

M.NO.451734 DIN : 01627408 DIN: 09517381

UDIN - 24451734BKALPC3259

Place : Raipur Date : 22.05.2024

Sd/- Sd/-

KUSHAL VASWANI MONALI MAKHIJA

CFO COMPANY SECRETARY

M.No.: A71644

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Mar 31, 2023

p. Provision and Contingencies

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the Financial Statement.

q. Employee Benefits:-

a. Provident Fund is a defined contribution scheme and the contributions are charged to the Profit & Loss A/c of the year when the contributions to the Government Funds is due.

b. Gratuity Liability is defined benefit obligations and is provided for on the basis of Actuary Valuation obtained from Registered Actuary.

c. Short Term Compensated absences are provided for based on estimates. Long Term compensated absences are provided for based on actuarial valuation.

d. Actuarial gains / losses are immediate taken to the profit & loss account and are not deferred.

e. Re-measurement of defined benefit plans in respect of post-employment are charged to the Other Comprehensive Income.

r. Segment Reporting:-

a) Business Segment: - The accounting policies adopted for segment reporting are in the line with the accounting policies of the company. Segment Revenue, Segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue, Expenses, Assets, Liabilities which relates to the company as whole and not allocable to segment on reasonable basis have been included under “Unallocated revenue/ expenses/ assets/ liabilities”.

b) Geographical Segment: - The Company sells its products within India. The condition prevailing in India being uniform. So no separate geographical segment disclosure is considered necessary.

s. Research & Development Expenditure:-

Revenue expenditure pertaining to research is charged to the Profit and Loss Statement. Development costs of products are charged to the Profit and Loss Statement unless a product’s technological feasibility has been established, in which case such expenditure is capitalized.

t. Intangible assets:-

Cost incurred on intangible assets, resulting in future economic benefits are capitalized as intangible assets and amortized on equated basis over the estimated useful life of such assets.

u. Events Occurring After the Balance Sheet Date:

Events occurring after the balance sheet date and related to circumstances existing on the Balance Sheet are accounted for. Events not related to circumstances existing on the Balance Sheet date are disclosed by way note to accounts.

NOTES ON ACCOUNTS: -

22. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

23. In the Opinion of the Board of directors, the loans, advances and other current & non-current assets have a value on realization in the ordinary course of business, at least equal to the amounts of which these are stated and that the provisions for the known liabilities are adequate and not in excess of the amount reasonably necessary.

24. The outstanding balance at the year end in respect of Sundry Creditors, Loans and Advances, Deposits and certain Bank Accounts are subject to confirmation / reconciliation from the respective parties and the same have been reckoned in these accounts as per the balances appearing in the books. Any further adjustments arising out of reconciliation will be accounted for as and when such reconciliation is completed. The company however does not expect any material effect in a particular year or in future years.

25. In the opinion of the Management, Current Assets, Loans & Advances have the value at which they are stated in the balance sheet if realized in the ordinary course of the business.

26. In the opinion of the management there is no such events occurred after the date of Balance sheet, which needs disclosure in these accounts.

27. (a) Company has purchased raw material and other consumables from different firms and company, but the company has not identified its status whether the same are either SSI Units or others, hence the particulars are not mentioned here.

(b) In respect of Micro / Small / Medium Enterprises Development Act 2006, certain disclosures are required to be made relating to Micro/Small/Medium Enterprises. The company is in the process of compiling relevant information''s from its suppliers about their coverage under the act since the relevant information is not readily available, no disclosure have been made in the accounts.

31. Segment-wise Revenue Results:

Basis of Preparation

Business Segment-: Business segments of the company have been identified as distinguishable components that are engaged in a group of related product and that are subject to risks and returns different from other business segments. Accordingly Steel, Power, Real State & Fabrics have been identified as the business segments.

35. Corporate Social Responsibility (CSR)

As per Section 135 of the Companies Act’ 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities.

CSR expenditure required to be spent as per section 135 of Companies Act’ 2013 read with Schedule VII thereof by the company are as under

36. Other Statutory Information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company has not advanced or loaned or invested funds to any other person or entity, including foreign entities 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 or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vi) The Company has not received any fund from any person or entity, including foreign entities with the understanding 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 or

(b) provide any guarantee, security or the like on behalf of the Ultimate beneficiaries.

(vii) The Company does not have any such transaction which is not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

(viii) The Company has not been declared as Willful defaulter by any Banks, Financial institution or Other lenders

37. The figures in financial statements are presented in Rs. in lakhs and hence the totals at various pages may appear to be different from apparent total, but such anomaly is merely due to presentation of figures in lakhs.

38. The company has been sanctioned working capital limits in excess of five crores rupees, in aggregate, from banks or financial institutions on the basis of security of current assets during any point of time of the year. We have considered the quarterly return/statement filed by the company till date for the period under audit. The quarterly returns or statements filed by the company with such banks or financial institutions are in agreement with the books of account of the Company other than those mentioned below

AS PER OUR REPORT OF EVEN DATE FOR AND ON BEHALF OF THE BOARD

FOR, AMITABH AGRAWAL & COMPANY VASWANI INDUSTRIES LIMITED

CHARTERED ACCOUNTANTS CIN : L28939CT2003PLC015964

FRN 006620C

AMITABH AGRAWAL YASHWANT VASWANI SATYA NARAYAN GUPTA

PARTNER DIRECTOR DIRECTOR

M.NO.075315 DIN : 01647208 DIN: 09517381

UDIN - 23075315BGYVDN6148

Place : Raipur Date : 29.05.2023

KUSHAL VASWANI SAKSHI AGRAWAL

CFO COMPANY SECRETARY

M.No.: 70486

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Mar 31, 2018

NOTES ON ACCOUNTS: -

1. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

2. In the Opinion of the Board of directors, the loans, advances and other current & non-current assets have a value on realization in the ordinary course of business, at least equal to the amounts of which these are stated and that the provisions for the known liabilities are adequate and not in excess of the amount reasonably necessary.

3. The outstanding balance at the yearend in respect of Sundry Creditors, Loans and Advances, Deposits and certain Bank Accounts are subject to confirmation / reconciliation from the respective parties and the same have been reckoned in these accounts as per the balances appearing in the books. Any further adjustments arising out of reconciliation will be accounted for as and when such reconciliation is completed. The company however does not expect any material effect in a particular year or in future years.

4. In the opinion of the Management, Current Assets, Loans & Advances have the value at which they are stated in the balance sheet if realized in the ordinary course of the business except the balance of "Suvikash Alloys And Steel Pvt Ltd, Bhadramaruti Concast Private Limited".

No Provision has been made as matter is under court proceedings.

5. In the opinion of the management there is no such events occurred after the date of Balance sheet, which needs disclosure in these accounts.

6. There were no employees at any time during the year drawing Rs.500000/- per month or more.

7. Contingent liabilities & Commitments not provided for in respect of:

8. Deferred Tax : In accordance with the Accounting Standard - 22 "Accounting for taxes on Income" issued by the Institute of Chartered Accountants of India, which has become mandatory from 1st April'' 2002 for listed companies, the company has accounted for deferred tax during the year. Consequently, the cumulative net deferred tax liability of Rs. 8679711/- as on 31st March'' 2018 has been recognized and adjusted from Statement of Profit & Loss.

The deferred tax liability/(asset) of the year amounting to Rs (19778146/-) has been charged in profit and loss a/c

9. Segment Wise Reporting Results:

Basis of Preparation

Business Segment-: Business segments of the company have been identified as distinguishable components that are engaged in a group of related product and that are subject to risks and returns different from other business segments. Accordingly Steel, Power, Real Estate & Fabrics have been identified as the business segments.

Geographical Segment: - The geographic segments identified as secondary segments are "Domestic Market" and "Export Market". Since there is no Export Market Revenue, the same has not been disclosed. The entire capital employed is within India.

10. Directors Disqualification

a. Shri Ravi Kumar Vaswani Managing Director of the company is disqualified under Section 164 of the Companies Act, 2013 with effect from 01/11/2016 to 31/10/2021 due to non-filing of annual accounts and annual return of Vaswani Ispat Limited, Vaswani Energy Limited and Vaswani Cement Limited for a period of three years and Strike off of Elite Buildhome Limited by ROC, Chhattisgarh. However, director has duly filed the annual accounts and annual returns of Vaswani Ispat Limited, Vaswani Energy Limited and Vaswani Cement Limited under CoDS scheme, 2018 and paid the penalty and have initiated process for revival of Elite Buildhome Limited.

b. Shri Pawan Kumar Jha, Director of the Company is disqualified under section 164 of the Companies Act, 2013 with effect from 01/11/2016 to 31/10/2021 due to Strike off of Elite Buildhome Limited by ROC, Chhattisgarh. Director has initiated process for revival of Elite Buildhome Limited.

c. Shri Yashwant Vaswani, Whole-time Director of the Company was disqualified under Section 164 of the Companies Act, 2013 with effect from 01/11/2016 to 31/10/2021 due to non-filing of annual accounts and annual return of Vaswani Ispat Limited, Vaswani Energy Limited and Vaswani Cement Limited for a period of three years. However, director has duly filed the annual accounts and annual returns of Vaswani Ispat Limited, Vaswani Energy Limited and Vaswani Cement Limited under CoDS Scheme, 2018 and paid the penalty and ROC has removed his disqualification with effect from 16th March, 2018. MCA DIN enquiry status is attached.

Notes: Related party relationship in terms of Accounting Standard 18 as given above is pointed out by the management and relied upon by the Auditors.

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Mar 31, 2015

1. Computation of basic and diluted earnings per share:

Particulars Current Year Previous Year

Net Profit after tax (in lacs ) 115.06 2.94

Weighted average number of Equity Share 28654700 28049086

Nominal Value per share 10.00 10.00

Basic and Diluted Earnings Per share 0.40 0.01

2. The figures of the previous year have been regrouped wherever considered necessary to confirm with current year''s presentation. The figures have been rounded off in Rs. in Lacs.

3. Balance under sundry debtors, other current assets, sundry creditors, and loans & advances are subject to confirmation and reconciliation if any.

4. In the opinion of the Management, Current Assets, Loans & Advances have the value at which they are stated in the balance sheet if realized in the ordinary course of the business except the balance of "Suvikash alloys and Steel Pvt. Ltd, Cement Corporation of India Ltd. and Bhadramaruti concast private limited". No Provision has been made as matter is under court proceedings.

5. In respect of Micro / Small / Medium Enterprises Development Act, 2006, certain disclosure is required to made relating to Micro / Small / Medium Enterprises. The company could not get relevant information from its supplier about their coverage under the Act since the relevant information is not readily available, no disclosure have been made in the account. Hence disclosure, if any, relating to amounts unpaid as at the year end together with interest paid/ payable as required under the said act have not been made.

6. Details of Employee benefits are given below:-

(a) Defined Contribution Plans:-

During the year the company has recognized the following amount in the profit & loss Accounts (included in Contribution to provident & other funds):-

(b) Defined Benefit Plan:-

Rs.7.90 Lacs (Cumulative figure) has been provided for Gratuity on the basis of the formula given in point no.16 of Significant Accounting Policies, only for those employees who have completed continuous five year service in the enterprise.

Above policy is not matched with calculation prescribed in AS-15

7. Related Party Disclosures :

a. Name of the related parties

Group Companies/ Key Management Relatives of Key Associates Personnel management Personnel

M/S Kwality Foundry Shri Ravi Vaswani 1.Smt. Sudha Vaswani Industries

C.G.Ispat Pvt. Ltd. Shri Pramod Vaswani 2.Smt. Juhi Vaswani

Cosmos Castings Shri Yaswant Vaswani 3.Smt. Manisha Vaswani (India) Limited

Vaswani Ispat Ltd.

Vaswani Cement Ltd.

Vaswani Energy Ltd.

Shubh Infrastructure Ltd.

8. Valuation & Consumption of inventories has been taken as valued and certified by the management.

9. There were no employee at any time during the year drawing Rs. 500000/- or more per month.

10. Segment Reporting as required by Accounting Standard (AS-17) issued by the Institute of Chartered Accountants of India:-

11. Contingent liabilities & Commitments not provided for in respect of:

(a) Claims against the Company not acknowledged as debt: (Rs. in Lacs)

Particular 2014-15 2013-14

- Sales Tax 75.53 75.53

- Excise Duty 294.55 236.10

- Customs Duty 86.02 0.00

(b) Guarantees:-

Particular 2014-15 2013-14

Letter of Credit 2572.93 2306.49

(c) Law Suit: South Eastern Coalfields Ltd has lodged case against the company of which outcome of law suit is unquantifiable, hence no provision accounted in books.

12. Since the company is engaged in the generation of power from A.Y 2008-09, So the company is entitled to claim the deduction under section -80IA of Income tax act & the quantum of deduction is 100% of profit & gains derived from such business for 10 consecutive assessment years out of 15 years beginning with the year in which enterprises begins to generate Power. Hence the company is decided to claim the deduction from A.Y.2013- 14.

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Mar 31, 2014

1. The figures of the previous year have been regrouped wherever considered necessary to confirm with current year''s presentation. The figures have been rounded off in Rs. in Lacs.

2. Balance under sundry debtors, other current assets, sundry creditors, and loans & advances are subject to confirmation and reconciliation if any.

3. In the opinion of the Management, Current Assets, Loans & Advances have the value at which they are stated in the balance sheet if realized in the ordinary course of the business except the balance of "Suvikash Alloys and Steel Pvt. Ltd, Cement Corporation of India Ltd. and Bhadramaruti Concast Private Limited". No Provision has been made as matter is under court proceedings.

4. In respect of Micro / Small / Medium Enterprises Development Act, 2006, certain disclosure is required to made relating to Micro / Small / Medium Enterprises. The company could not get relevant information from its supplier about their coverage under the Act since the relevant information is not readily available, no disclosure have been made in the account. Hence disclosure, if any, relating to amounts unpaid as at the year-end together with interest paid/ payable as required under the said act have not been made.

5. Valuation & Consumption of inventories has been taken as valued and certified by the management.

6. There were no employee at any time during the year drawing Rs. 500000/- or more per month.

7. Contingent liabilities & Commitments not provided for in respect of:-

(a) Claims against the Company not acknowledged as debt:-

(Rs.in Lacs)

Particular 31.03.2014 31.03.2013

* Sales Tax 75.53 75.53

* Excise Duty 236.10 239.27

(b) Guarantees:-

Particular 31.03.2014 31.03.2013

Letter of Credit 2306.49 2424.59

8. Since the company is engaged in the generation of power from A.Y 2008-09, So the company is entitled to claim the deduction under section - 80IA of Income tax act & the quantum of deduction is 100% of profit & gains derived from such business for 10 consecutive assessment years out of 15 years beginning with the year in which enterprises begins to generate Power. Hence the company is decided to claim the deduction from A.Y.2013-14.

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Mar 31, 2013

1. The figures of the previous year have been regrouped wherever considered necessary to confirm with current year''s presentation. The figures have been rounded off in Rs. in Lacs.

2. Balance under sundry debtors, other current assets, sundry creditors, and loans & advances are subject to confirmation and reconciliation if any.

3. In the opinion of the Management, Current Assets, Loans & Advances have the value at which they are stated in the balance sheet if realized in the ordinary course of the business except the balance of "Suvlkash alloys and Steel Pvt. Ltd and Cement Corporation of India Ltd.". No Provision has been made as matter is under court proceedings.

4. In respect of Micro / Small / Medium Enterprises Development Act, 2006, certain disclosure is required to made relating to Micro / Small / Medium Enterprises. The company could not get relevant information from its supplier about their coverage under the Act since the relevant information is not readily available, no disclosure have been made In the account. Hence disclosure, If any, relating to amounts unpaid as at the year end together with Interest paid/ payable as required under the said act have not been made.

5. Details of Employee benefits are given below:-

6. Valuation 8t Consumption of inventories has been taken as valued and certified by the management.

7. There were no employee at any time during the year drawing Rs. 500000/- or more per month.

8. Contingent liabilities & Commitments not provided for in respect of:-

(a) Claims against the Company not acknowledged as debt:-

(Rs.in Lacs)

Particular 2012-13 2011-12

- Sales Tax 75.53 49.59

- Excise Duty 239.27 239.27

Income Tax NIL 1.01

(b) Guarantees:-

Particular 2012-13 2011-12

Tetter of Credit 2424.59 1565.73

9. Since the company is engaged in the generation of power from A.Y 2008-09, So the company is entitled to claim the deduction under section - 80IA of Income tax act & the quantum of deduction is 100% of profit & gains derived from such business for 10 consecutive assessment years out of 15 years beginning with the year in which enterprises begins to generate Power. Hence the company is decided to claim the deduction from A.Y.2013-14.

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Mar 31, 2012

The Company has only one class of equity shares having a par value of Rs.10 Each. Each shareholder Is eligible for 1 vote per share. Out of Issued, Subscribed and Paid Up Capital 10000000 shares (previous year- nil) @ Rs. 10/- each face and rs.39/- as premium received from public Issue. Out of Issued, Subscribed and Paid Up Capital 2500000 shares (previous year- nil) Issued as bonus shares.

NOTE - 1

Computation of basic and diluted warnings par aharai

Particulars Current Year Previous Year

Net Profit after tax 109.50 495.29

Weighted average number of Equity Share 24925126 15990700

Nominal Value per share 10.00 10.00

Basic and Diluted Earnings Per share 0.44 3.10

Pursuant to the approval of the Board of Directors at Its meeting held on October 17, 2011 and subsequent approval of the shareholders, the Company has Issued 25,00,000 bonus shares to all the shareholders of the Company except the promoters In the ratio of 1:4 equity shares of Rs 10 each by way of capitalization of sum standing to the credit of securities premium account of the Company. The earnings per share (basic and diluted) have been adjusted accordingly for the previous year also.

NOTE - 2

The figures of the previous year have been regrouped wherever considered necessary to confirm with current year's presentation. The figures have been rounded off In Rs. In Lacs.

NOTE - 3

Balance under sundry debtors, other current assets, sundry creditors, and loans & advances are subject to confirmation and reconciliation If any.

NOTE - 4

In the opinion of the Management, Current Assets, Loans & Advances have the value at which they are stated In the balance sheet If realized In the ordinary course of the business except the balance of "Suvlkash alloys and Steel Pvt. Ltd and Cement Corporation of India Ltd.". No Provision has been made as matter Is under court proceedings.

NOTE - 5

In respect of Micro / Small / Medium Enterprises Development Act, 2006, certain disclosure Is required to made relating to Micro / Small / Medium Enterprises. The company could not get relevant Information from Its supplier about their coverage under the Act since the relevant Information Is not readily available, no disclosure have been made In the account. Hence disclosure. If any, relating to amounts unpaid as at the year end together with Interest paid/ payable as required under the said act have not been made.

NOTE - 6

Details of Employee benefits are given below:-

During the year the company has recognized the following amount In the profit & loss Accounts (Included In Contribution to provident & other funds):-

(b) Defined Benefit Plan:-

Rs.5.77 Lacs (Cumulative figure) has been provided for Gratuity on the basis of the formula given In point no.16 of Significant Accounting Policies, only for those employees who have completed continuous five year service In the enterprise.

Notes: Related party relationship In terms of Accounting Standard 18 as given above Is pointed out by the management and relied upon by the Auditors.

NOTE - 7

Valuation & Consumption of Inventories has been taken as valued and certified by the management.

NOTE - 8

There were no employee at any time during the year drawing Rs. 500000/- or more per month.

NOTE - 9

The Company has completed Its IPO during the period..There Is no amount outstanding from IPO proceeds at the end of the year.

NOTE - 10

Segment Reporting as required by Accounting Standard (AS-17) Issued by the Institute of Chartered Accountants of India:-

(B) Geographical Segment: -

The Company sales Its products within India. The condition prevailing In India being uniform, no separate geographical segment disclosure Is considered necessary.

NOTE - 11

Contingent liabilities & Commitments not provided for In respect of:-

(a) Claims against the Company not acknowledged as debt:-

(Rs.in Lacs)

Particular 2011-12 2010-11

- Sales Tax 49.59 Nil

- Excise Duty 239.27 239.27

- Income Tax 1.01 1.01

(b) Guarantees:-

Particular 2011-12 2010-11

Letter of Credit 1565.73 Nil

NOTE - 11

Since the company is engaged In the generation of power from A.Y 2008-09, So the company Is entitled to claim the ' deduction under section -80IA of Income tax act & the quantum of deduction Is 100% of profit & gains derived from such business for 10 consecutive assessment years out of 15 years beginning with the year In which enterprises begins to generate Power. Hence the company Is decided to claim the deduction from A.Y.2013-14.

NOTE - 12

During the year company has converted Land (held as fixed assets, costing RS.7.58 lacs) In to Stock In Trade. Conversion has been done at prevailing market rate of RS. 1273.24 Lacs,

NOTE - 13

After the Balance Sheet date SECL has Invoke the bank guarantee due to termination of Coal Supply Agreement of Power Division. Due to this bank has recovered Rs.95.89 Lacs from company.

NOTE - 14

Interest Receivable of Rs. 7.32 lacs not provided In the books, due to this profit Is understated to the extent of this amount.

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Mar 31, 2010

1 (a) Balance under sundry debtors, other current assets sundry credits, and loans & advances are subject to confirmation and reconciliation if any.

2. In the opinion of the Management, Current Assets, Loans & Advances have the value at which they are started in the balance sheet if realised in the ordinary course of the business except the balance of " Suvikash alloys and Steel Pvt. Ltd" from whom recovery of amount is doubtful and provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

3. The figures of the previous year have been regrouped wherever considered necessary to confirm with current years presentation. The figure have been rounded off to the nearest rupee.

4. During the year the company has not produced M.S Ingots.

5.(a) Company has purchased raw material and other consumables from different firms and company, which are outstanding at the end of year, but the company has not identified its status that whether the same are SSI unit or others, hence the particulars are not mentioned here.

(b) In respect of Micro /Small/ Medium Enterprises Development Act, 2006, certain disclosure are required to made relating to Micro /Small / Medium Enterprises. The company is in the process of compiling relevant information from its supplier about their coverage under the Act since the relevant information is not readily available, no disclosure have been made in the account. Hence disclosure, if any, relating to amounts unpaid as at the year end together with interest paid/ payable as required under the said act have not been made.

6. Details of Employee benefits as required by the Accounting Standard 15 "Employee Benefits" are given below:-

(b) Defined benefit plan:-

327528.00 has been provided for Gratuity on the basis of the formula given in point no.16 of (A) of notes to accounts, only for those employee who have completed continuous five year service in the enterprises.

7. Related Party Disclosures :

a. Name of the related parties

Group Companies/ Associates Key Personnel management Relatives of Personnel management Personnel

1. M/S Kwality Foundry 1. Shri Ravi Vaswani 1. Smt. Sudha Industries Vaswani

2. Meghana Texim Pvt. Ltd 2. Shri Pramod Vaswani

3. Shri Yaswant 2. Smt Juhi Vaswani 3. Cosmos Casting India Vaswani Limited

4. Vaswani Ispat Ltd.

5. Vaswani Cement Ltd.

8. Deferred Tax; In accordance with the Accounting Standard- 22 "Accounting for taxes on Income" issued by the Institute of Chartered Accountants of India, the company has accounted for deferred tax during the year. Consequently, the cumulative net deferred tax liabilities of RS.61411012.00/- as on March 2010 on net timing difference of Rs.180673762.08 has been recognized.

9. Valuation & Consumption of inventories has been taken as valued and certified by the Management

10. There were no employee at any time during the year drawing Rs. 200000/- or more per month.

11. The Company has made a provision of Rs. 5.73 Lac (Previous year Rs. 9.57 Lac) for Corporate Dividend Tax on the amount of dividend proposed for the year ended 31st March, 2010 as per the provision of Section 115-O of Income tax act, 1961.

(B) Geographical Segment: -

The Company sell its products within India. The condition prevailing in India being uniform, no separate geographical segment disclosure is considered necessary.

12. Contingent liabilities not provided for in respect of:- (RS. in Lac)

Particular 2009-10 2008-08

- Sales Tax(pending with ACIT Appeals Sales Tax Raipur) 3.59 3.59

- Excise Duty 192.53 139.64

13 Company has generated 60396000 units in its Power division during the F.Y 2009-10 out of which 8257960 units has been capitively consumed in its Sponge & Furnace Division. The transfer pricing of power units has been taken on Fair Market value Basis. However the transfer pricing policy does not affect the profit of the company as whole.

14 Since the company is engaged in the generation of power from A.Y 2008-09, So the company is entitled to claim the deduction under section -80IA of Income tax act & the quantum of deduction is 100% of profit & gains derived from such business for 10 consecutive assessment years out of 15 years beginning with the year in which enterprises begins to generate Power. Hence the company is decided to claim the deduction from fifth year starting from A.Y 2008-09 18.

15. On Some Case Tds has been deducted late and interest payment on it has not been made.