Steelco Gujarat Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

O. Provisions and Contingencies:

A provision is recognised when:

• The Company has a present 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

• A reliable estimate can be made of the amount of the obligation.

Provisions are measured at the management''s best estimate of the expenditure required
to settle the present obligation at the end of the reporting period. If the effect of the time
value of money is material, provisions are discounted using a current pre-tax rate that
reflects current market assessments of the time value of money and the risks specific to
the liability. The increase in the provision due to the passage of time is recognised as
finance costs.

The Company does not recognise contingent liabilities but it is disclosed in the financial
statements unless the possibility of an outflow of resources embodying economic benefits
is remote.

Contingent asset is not recognised in the financial statements.

P. Earnings per Share:

Basic earnings per share is calculated by dividing the profit attributable to owners of the
Company by the weighted average number of equity shares outstanding during the
financial year.

Diluted earnings per share adjusts the figures used in the determination of basic earnings
per share after considering the income tax effect of all finance costs associated with
dilutive potential equity shares, and the weighted average number of additional equity
shares that would have been outstanding assuming the conversion of all dilutive potential
equity shares.

The Company has not issued any dilutive potential equity shares.

Q. Exceptional items:

Certain occasions, the size, type or incidence of an item of income or expense, pertaining
to the ordinary activities of the Company is such that its disclosure improves the
understanding of the performance of the Company, such income or expense is classified
as an exceptional item and accordingly, disclosed in the notes accompanying to the
financial statements.

3. USE OF JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

While preparing financial statements in conformity with Ind AS, the management has
made certain estimates and assumptions that require subjective and complex judgments.
These judgments affect the application of accounting policies and the reported amount of
assets, liabilities, income and expenses, disclosure of contingent liabilities at the
statement of financial position date and the reported amount of income and expenses for
the reporting period. Financial reporting results rely on the management estimate of the
effect of certain matters that are inherently uncertain. Future events rarely develop
exactly as forecasted and the best estimates require adjustments, as actual results may
differ from these estimates under different assumptions or conditions. Estimates and
underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized prospectively.

Judgment, estimates and assumptions are required in particular for:

a) Determination of the estimated useful life of tangible assets

Useful life of tangible assets is based on the life prescribed in Schedule II of the
Companies Act, 2013. In cases, where the useful life are different from that prescribed
in Schedule II, they are based on technical advice, taking into account the nature of the
asset, the estimated usage of the asset, the operating conditions of the asset, past
history of replacement, anticipated technological changes, manufacturers'' warranties
and maintenance support.

b) Recognition and measurement of defined benefit obligations

The obligation arising from defined benefit plan is determined on the basis of
actuarial assumptions. Key actuarial assumptions include discount rate, trends in
salary escalation, actuarial rates and life expectancy. The discount rate is determined
by reference to market yields at the end of the reporting period on government bonds.
The period to maturity of the underlying bonds correspond to the probable maturity
of the post-employment benefit obligations. Due to complexities involved in the
valuation and its long-term nature, defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are reviewed at each reporting period.

c) Recognition of deferred tax liabilities

Deferred tax assets and liabilities are recognized for the future tax consequences of
temporary differences between the carrying values of assets and liabilities and their
respective tax bases, and unutilized business loss and depreciation carryforwards and
tax credits. Deferred tax assets are recognized to the extent that it is probable that
future taxable income will be available against which the deductible temporary
differences, unused tax losses, depreciation carry-forwards and unused tax credits
could be utilized.

d) Discounting of financial assets / liabilities

All financial assets / liabilities are required to be measured at fair value on initial
recognition. In case of financial assets / liabilities which are required to be
subsequently measured at amortized cost, interest is accrued using the effective
interest method.

3. A. Critical accounting judgments and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements,
estimates and assumptions about the reported amounts of assets and liabilities, and,
income and expenses that are not readily apparent from other sources. Such judgments,
estimates and associated assumptions are evaluated based on historical experience and
various other factors, including estimation of the effects of uncertain future events,
which are believed to be reasonable under the circumstances. Actual results may differ
from these estimates. The estimates and underlying assumptions are reviewed on an on¬
going basis. Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period or in the period of the revision
and future periods if the revision affects both current and future periods.

The following are the critical judgements and estimations that have been made by the
management in the process of applying the Company''s accounting policies and that have
the most significant effect on the amount recognised in the financial statements and/or
key sources of estimation uncertainty that may have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the next
financial year

(i) Assets acquired under finance lease

During the year 1991-92, the Company acquired under a finance lease from G.I.D.C., land situated at plot No.2, G.I.D.C. estate, N.H.No.8, Palej,
Dist. Bharuch, Gujarat (India). The lease period is for 99 years which can be extended for another 99 years at the option of the Company.

(ii) Property, plant and equipment hypothecated as security

Equitable Mortgage(EM) over the entire fixed assets ranking pari- passu. First pari - passu charge over the entire existing fixed assets of
the Company including EM over leasehold right ( leased by GIDC palej) over factory and admeasuring 241775 SQ MTR in Palej Industrial
area consisting of 13, 14, 15, 16, 18, 20, 21, 22, 24tp, 25, 26, 27, 28tp, 35tp, 36/p. 37. 38, 39, 40tp, 43 44 45 46, 47and factory building
premises situated thereon within the Village limit of Palej, Baruch , Gujarat Lease period is 99 years. residual period of lease 79 years.

(vi) Estimation of fair value

The fair values of the investment properties have been carried out by an independent valuer. The best evidence of fair value is current
prices in an active market for similar properties. The investment properties have been fair valued using the sales comparison method in
which due weightage has been given to property rates as evident from sales instances of comparable land and building found upon market
enquiry, area, location, nearby civic amenities available etc. This is a Level 2 measurement as per the fair value hierarchy set out in fair
value measurement disclosures.

• As per NCLT Order ,the Existing Paid up Equity and Preference Shares issued to promoters and their Associates/Nominees amounting to
Rs.78,86,80,220/- (Equity Share of 3,19,21,366 of Rs.10 /-each amounting to Rs.3192.14/- Lakhs, 3,28,20,000 12.5% Cumulative Redeemable Non
Convertible Preference Share of Rs.10/-each amounting to Rs. 3282.00/- Lakhs and 34,86,200 7% Cumulative Redeemable Non-Convertible
Preference Shares of Rs.10/-each amounting to Rs. 348.62/- Lakhs) have been reduced to “NIL”.

Out of the Equity Share Capital of Rs. 496.60/- Lakhs, Public share holding was Rs. 26.60/- Lakhs Keeping the minimum Public holding requirement
as per Regulation 19A (d) of the Securities Contract Regulation, Rule 1957, listed Companies are allowed to maintain at least 5% of the Capital
instead of minimum required shareholding of at least 25% as the Company’s share capital is being restructured as per the Order of NCLT.
However,the same is required to be raised to at least 10% within 12 months and subsequently at least 25% Public Share Holding to be achieved
within maximum period of 3 Years from the date of short fall.

• As per Resolutions Plan, SRA (Successful Resolution Applicant) was allowed to infuse a sum of Rs.86.15 Crores in the form of capital and loan along
with its associates and nominees. Out of the total authorised capital of Rs.5 Crores, SRA along with its affiliates /nominees is required to hold at least
51% equity of the company which will be under lock- -in period for a period of 3 Years. Pursuant to Resolution Plan and NCLT Order, out of total
infusion of Rs.86.15 Crores, part of that amount i.e Rs.4.7 Crores was converted in to equity and allotted to SRA / its affiliates /lenders and Rs.26.60/-
lakhs remains to Public.

(i) Loan from corporate (Security details )

(a) Primary : Hypothecation of entire current assets including Raw Metrial, Work in process, Finished goods, spares and consumables and receivables
etc on pari-passu basis. Extension of Hypothecation of entire current assets (present and future on pari- passu basis).

(b) Collateral : Equitable Mortgage(EM) over the entire fixed assets ranking pan passu. First pari - passu charge on factory building and plant and
machinery Pari- passu first charge over the entire existing fixed assets of the Company including EM over leasehold right ( leased by GIDC palej) over
factory and admeasuring 241775 SQ MTR in Palej Industrial area consisting of 13, 14, 15, 16, 18, 20, 21, 22, 24tp, 25, 26, 27, 28tp, 35tp, 36/p. 37. 38, 39,
40tp, 43 44 45 46, 47and factory building premises situated thereon within the Village limit of Palej, Baruch , Gujarat Lease period is 99 years.
residual period ot lease 79 years.

Risk Management framework

The Company is exposed to various risks in relation to financial instruments. The Company''s financial assets and liabilities are summarised by category in note 35. The main
types of risks to which the Company is exposed are market risk, credit risk, and liquidity risk. The Company''s risk management is coordinated at its headquarters, in close
cooperation with the board of directors, and focuses on actively securing the Company''s short to medium-term cash flows by minimizing exposure to volatile financial
markets. The Company does not actively engage in the trading of financial assets for speculative purposes nor does it write options. The most significant financial risks to
which the Company is exposed are described below.

(A) Credit risk

Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company is exposed to this risk for various financial assets such as trade
receivables, security deposits, other receivables, etc. The Company''s maximum exposure to credit risk is limited to the carrying amount of the following types of financial
assets.

-Trade receivables
-Fixed deposits with banks
-Cash and cash equivalents

-Other financial assets measured at amortised cost

The Company continuously monitors defaults of customers and other counterparties, identified either individually or by the Company, and incorporates this ''information into
its credit risk controls. Where available at reasonable cost, external credit ratings and/or reports on customers and other counterparties are obtained and used. The

a) Credit risk management

Cash and cash equivalent and Fixed deposits with banks

Credit risk related to cash and cash equivalents is managed by selecting highly rated banks and diversifying bank deposits and accounts in different banks across the country.
Trade receivables

In the case of export sales, credit risk related to trade receivables is mitigated by taking letters of credit from overseas customers or making sales against advances where
credit risk is high. The Company closely monitors the credit-worthiness of the customers and only sells goods to credit-worthy parties.

Other financial assets measured at amortized cost

Other financial assets measured at amortized cost include security deposits, export incentives receivables, and others. The Company does not see any credit risks from export
incentives receivables since the counterparty involved is government authorities. Credit risk related to other financial assets is managed by ''monitoring the recoverability of
such amounts continuously, while at the same time, internal control systems in place ensure the amounts are within defined limits.

b) Expected credit losses

Company provides expected credit losses based on the following

(B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed
credit facilities to meet obligations when due. Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of
expected cash flows. The Company takes into account the liquidity of the market in which it operates. In addition, the Company''s liquidity management policy involves
projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and
external regulatory requirements, and maintaining debt financing plans.

(C) Market Risk

a) Foreign currency risk

Most of the Company''s transactions are carried out in INR. Exposures to currency exchange rates arise from the Company''s loan from the holding company, trade receivables
in case of export sales, and trade payables denominated in Euro and USD. To mitigate the Company''s exposure to foreign currency risk, non-INR cash flows are monitored in
accordance with the Company''s risk management policies. Generally, the Company''s risk management procedures distinguish short-term foreign currency cash flows (due
within 6 months) from longer-term cash flows (due after 6 months). Where the amounts to be paid and received in a specific currency are expected to largely offset one
another, no further hedging activity is undertaken.

b) Interest rate risk

The Company''s policy is to minimize interest rate cash flow risk exposures on long-term financing. As at 31 March 2025, the Company is exposed to changes in market
interest rates through bank borrowings at variable interest rates. Other borrowings i.e. loans from holding companies and redeemable preference shares are at fixed interest
rates. The Company does not have any investments in bond or money markets and hence it is not exposed to any interest rate changes in financial assets. The following table
illustrates the sensitivity of profit and equity to a reasonably possible change in interest rates of /- 1% for the year ended 31 March 2025 (31 March 2024: /- 1%). These
changes are considered to be reasonably possible based on observation of current market conditions. The calculations are based on a change in the average market interest
rate for each period, and the financial instruments held at each reporting date that are sensitive to changes in interest rates. All other variables are held constant.

33. Capital management

The Company'' s capital management objectives are

- to ensure the company''s ability to continue as a going concern

- to provide an adequate return to shareholders

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of the balance sheet.

Management assesses the Company''s capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into
account the subordination levels of the Company''s various classes of debt. The Company manages the capital structure and makes adjustments to it in light of changes in
economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of
dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.

36.Segment Reporting

Ind AS 108 Operating Segments requires Management to determine the reportable segments for the purpose of disclosure
in financial statements based on the internal reporting reviewed by Chief Operating Decision Maker (CODM) to assess
performance and allocate resources.

Operating segments are defined as ''Business Units'' of the Company about which separate financial information is available
that is evaluated regularly by the Chief Operating Decision Maker or decision making group in deciding how to allocate
resources and in assessing performance.

The Company is engaged in only one business segment. The Company is operating in a single geographical segment i.e.
India. The management considers that these business units have similar economic characteristic nature of the product,
nature of the regulatory environment etc. Based on the management analysis, the Company has only one operating
segment, so no seperate segment report is given. The principle geographical areas in which company the Company operates
is India.

37. In the opinion of the Board of Directors, Current Assets, Loans & Advances have value at which they are stated in the
Balance Sheet, if realized in the ordinary course of business. The provision for depreciation and for all know liabilities is
adequate and not in excess of the amount reasonably necessary.

38. The company has no any transactions with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956 in F.Y 2023-2024.

39. The Company do not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.

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

41. The Company has not traded or invested in Crypto currency or Virtual Currency during the year.

42. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall: 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 provide
any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

43. 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.

44. The Company do not have any such transaction which is not recorded in the books of accounts and that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search
or survey or any other relevant provisions of the Income Tax Act, 1961).

45. The Company has paid / provided for excess remuneration to the managing director during FY: 2016-17, 2017-18 and
2018-19 without obtaining the approvals in accordance with Section 197 of the Act. The excess remuneration reversed is
shown as recoverable from the Managing Director. The matter is disclosed under report on other legal and regulatory
requirements section of independent auditor''s audit report. The Company has filed suit against the Managing Director for
the recovery of the excess amount of remuneration.

46. The company holds all the title deeds of immovable property in its name.

47. There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the
Companies Act, 2013.

48. The company is not declared as wilful defaulter by any bank or financial Institution or other lender.

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

Reason for variance in the above ratios

Increase & decrease in ratio is because of adjustments (write off / write back) of assets and liabilities post take-over
of the operations of the Company by the New Management pursuant to the NCLT order.

For M Sahu & Co. For Steelco Gujarat Limited

Chartered Accountants

Firm Registration No. 130001W

Anshoo Raj Khare Anoop Saxena

Director Managing Director

Partner (Manojkumar Sahu) DIN : 10311752 DIN : 10311727

M. No. 132613

UDIN : 25132623BMGYUQ2507

Parag Dave Mahendra Parekh

Company Secretary Chief Financial Officer

Vadodara : 26th May, 2025 Vadodara : 26th May, 2025

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Mar 31, 2024

O. Provisions and Contingencies:

A provision is recognised when:

• The Company has a present 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

• A reliable estimate can be made of the amount of the obligation.

Provisions are measured at the management''s best estimate of the expenditure required
to settle the present obligation at the end of the reporting period. If the effect of the time
value of money is material, provisions are discounted using a current pre-tax rate that
reflects current market assessments of the time value of money and the risks specific to
the liability. The increase in the provision due to the passage of time is recognised as
finance costs.

The Company does not recognise contingent liabilities but it is disclosed in the financial
statements unless the possibility of an outflow of resources embodying economic benefits
is remote.

Contingent asset is not recognised in the financial statements.

P. Earnings per Share:

Basic earnings per share is calculated by dividing the profit attributable to owners of the
Company by the weighted average number of equity shares outstanding during the
financial year.

Diluted earnings per share adjusts the figures used in the determination of basic earnings
per share after considering the income tax effect of all finance costs associated with
dilutive potential equity shares, and the weighted average number of additional equity
shares that would have been outstanding assuming the conversion of all dilutive potential
equity shares.

The Company has not issued any dilutive potential equity shares.

Q. Exceptional items:

Certain occasions, the size, type or incidence of an item of income or expense, pertaining
to the ordinary activities of the Company is such that its disclosure improves the
understanding of the performance of the Company, such income or expense is classified
as an exceptional item and accordingly, disclosed in the notes accompanying to the
financial statements.

3. USE OF JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

While preparing financial statements in conformity with Ind AS, the management has
made certain estimates and assumptions that require subjective and complex judgments.
These judgments affect the application of accounting policies and the reported amount of
assets, liabilities, income and expenses, disclosure of contingent liabilities at the
statement of financial position date and the reported amount of income and expenses for
the reporting period. Financial reporting results rely on the management estimate of the
effect of certain matters that are inherently uncertain. Future events rarely develop
exactly as forecasted and the best estimates require adjustments, as actual results may
differ from these estimates under different assumptions or conditions. Estimates and

underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized prospectively.

Judgment, estimates and assumptions are required in particular for:

a) Determination of the estimated useful life of tangible assets

Useful life of tangible assets is based on the life prescribed in Schedule II of the
Companies Act, 2013. In cases, where the useful life are different from that prescribed
in Schedule II, they are based on technical advice, taking into account the nature of the
asset, the estimated usage of the asset, the operating conditions of the asset, past
history of replacement, anticipated technological changes, manufacturers'' warrant ies
and maintenance support.

b) Recognition and measurement of defined benefit obligations

The obligation arising from defined benefit plan is determined on the basis of
actuarial assumptions. Key actuarial assumptions include discount rate, trends in
salary escalation, actuarial rates and life expectancy. The discount rate is determined
by reference to market yields at the end of the reporting period on government bonds.
The period to maturity of the underlying bonds correspond to the probable maturity
of the post-employment benefit obligations. Due to complexities involved in the
valuation and its long-term nature, defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are reviewed at each reporting period.

c) Recognition of deferred tax liabilities

Deferred tax assets and liabilities are recognized for the future tax consequences of
temporary differences between the carrying values of assets and liabilities and their
respective tax bases, and unutilized business loss and depreciation carryforwards and
tax credits. Deferred tax assets are recognized to the extent that it is probable that
future taxable income will be available against which the deductible temporary
differences, unused tax losses, depreciation carry-forwards and unused tax credits
could be utilized.

d) Discounting of financial assets / liabilities

All financial assets / liabilities are required to be measured at fair value on initial
recognition. In case of financial assets / liabilities which are required to be
subsequently measured at amortized cost, interest is accrued using the effective
interest method.

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Mar 31, 2016

[*] Working Capital Loan comprising Cash Credit(CC), Packing Credit in Foreign Currency (PCFC), Export Packing Credit (EPC), Bills discounted and Demand Loan (DL) is repayable on demand from Banks are secured by way of hypothecation of the Company’s entire current assets including stock of goods, including raw material, work-in-process, finished goods, stores, consumables, spares, goods in transit etc. and book-debts, both present and future, to rank on “pari-passu” basis. These facilities are also secured by way of first charge over the entire fixed assets including Equitable mortgage over leasehold right over the factory land of the Company situated at Plot No.2, GIDC Estate, Palej, Dist. Bharuch, Gujarat (India) both present and future. Interest for borrowing in Indian Currency through CC, EPC and DL is 10.30% p.a. and for borrowing in foreign currency through PCFC is in the range of Libor 2.6172 % p.a. to Libor 2.6420% p.a.

The secured borrowings are further secured by way of pledge of 3,19,21,366 Equity Shares held by the promoters in favour of the Consortium of Bankers During the year, the Company has drawn the working capital financing facility in excess of sanctioned limits at some times. However, there is no continuous overdrawing of working capital limits as at 31st March, 2016.

From Others [Unsecured] / Inter Corporate Deposits:

Unsecured, short term borrowings received, will be repayable within 90 days from the date of agreement (i.e.29th December, 2015). The applicable interest rate on the loan is 15% p.a. Payable in advance (for 90 days)

1 As on 31st March, 2016, the Company has entered into an “Agreement to Sell” and handed over possession and transferred the significant risk and ownership of the for part of its leasehold industrial land in favour of the buyer, admeasuring 40470.99 Sq. Mtr. out of it total 247581.81 Sq. Mtr. of leasehold land under 99 years lease from G.I.D.C. situated at Plot No.2, G.I.D.C. Estate, N.H.No.8, Palej, Dist.Bharuch, Gujarat (India) with M/s Steelco Colour Coating Limited at a total consideration of Rs, 1500 lakhs. The Company has received a part payment of Rs, 519 lakhs during the year. The final sale deed and convincing and registration of titles in the favaour of the buyer will be executed after obtaining regulatory approvals & compliance and completion of other regulatory and other formalities. In anticipation of completion of above stated approvals & compliances, the Company has recorded the above stated transaction as sale of land in its books of accounts on the basis of “Agreement to Sell” and the resultant net profit of Rs, 1488.84 lakhs has been shown under “Extra-ordinary Item” in the Statement of Profit & Loss.

2 During financial year 2014-15, the Company has carried out an exercise to undertake technical assessment and evaluation of its fixed assets and has appointed an independent Govt. approved technical value and assessors namely Gujarat Techno - Economic Consultants Pvt. Ltd. The said firm has carried out technical evaluation and assessment of fixed assets and based on their technical review and the practice and policy of continuous refurbishment and maintenance of the equipment and buildings, it has suggested estimated remaining useful life of Buildings and Plant and Machinery for a period which is longer than the period as is specified in Schedule-II to the fixed assets which is as under:

A The Company has worked out deferred tax liabilities / assets as at March 31, 2016. In view of unabsorbed depreciation and business losses under tax laws, net result of computation is net deferred tax assets, which are not recognized as a matter of prudence and in absence of virtual certainty as to its realization.

A Name of the Related Party and Nature of the Related Party Relationship: a Holding Company:

Spica Business Corp., Panama The Holding Company of Spica Investments Limited

Spica Investments Limited, Mauritius Holding Company

b Subsidiary Company:

Steelco Colour Coating Limited Subsidiary Company (up to 31.03.2016)

c Directors and their relatives:

Shri Rashmi Chandaria Non-Executive Director

Shri Vimal Chandaria Non-Executive Director

Shri Mahendra Lodha Non-Executive Independent Director

Shri Jatinder Mehra Non-Executive Independent Director

Dr. R. S. Mamak Non-Executive Vice Chairman (Executive Vice Chairman up to 13.08.2015)

Shri S. S. Ranjan Non-Executive Independent Director

Shri Jiban Goswami Nominee Director

Smt. Ameeta Trehan Non-Executive Independent Director

Shri Mitesh H Shah Managing Director (w.e.f. 14.11.2014)

Smt.Tejal M Shah Wife of Shri Mitesh Shah (Managing Director)

Shri N. M. Mohnot Managing Director (up to 14.08.2014)

Smt.Saroj Mohnot Wife of Shri N.M.Mohnot (Managing Director)

d Key Managerial Persons:

Shri Abhishek Jajoo Chief Financial Officer (w.e.f. 6th November, 2015)

Shri Achal Thakkar Company Secretary (w.e.f. 29th August, 2015)

Shri Sunil Singhvi Chief Finance Officer (up to 23rd October, 2015)

Shri Arvind Tambi Financial Controller & Company Secretary (up to 28th August, 2015)

e Enterprises significantly influenced by Directors and/or their relatives:

Ignis International Industries Pvt. Ltd. (Influence of Shri N. M. Mohnot up to 14.08.2014)

Grip Strapping Technologies Pvt. Ltd. (Influence of relative of Dr. R. S. Mamak)

The Financial Statements of the Company have been prepared on “Going Concern Basis” considering the following facts:

1 Promotors have infused funds during the year and have committed to the lenders to further infuse their contribution towards capex plans/meet working capital needs in the forthcoming period;

2 The Company has identified a surplus plot of land and has already initiated process to liquidate the same to raise finance to meet long term requirements after due compliance of attached regulatory & other requirements & approvals;

3 The steel industry is expected to show positive outlook with recent positive policy initiatives taken by the Government;

4 The new management team has been inducted with fresh outlook showing improvement in operational efficiencies

5 Changes implemented in marketing strategies, customer focus and product mix in order to improve margins and profitability.

NOTE: 3

Exceptional item relate to write back of an unclaimed long outstanding dues which is written back during the year as decided by the managements after its review.

Note: 4

Confirmation letters have not been obtained from some of the Trade Receivables, Trade Payables and Loans & Advances. Hence, the balances of these accounts are subject to confirmation, reconciliation and consequent adjustments, if any.

Note: 5

Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classifications/ disclosure.

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Mar 31, 2014

Contingent liability is disclosed for:

A Possible obligations which will be confirmed by future events not wholly within the control of the Company, or

B Present obligation arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are not recognised in the financial statements since this may result in the recognition of income that may never be realized.

B The equity shares rank parri passu and carry equal rights with respect to voting and dividend.

In the event of liquidation of the Company, the equity shareholders shall be entitled to proportionate share of their holding in the assets remained after distribution of all preferential amounts.

C 12.50% Cumulative Redeemable Non-Convertible Preference Shares are redeemable after a period of 18 years from the date of its issues i.e. 29-09-2008.

The said shares do not carry any voting rights nor do they participate in the profits of the Company, except that they carry preferential right in respect of cumulative arrears of unpaid dividend. In the event of liquidation of the Company, the preference shareholders shall be entitled to proportionate share of their holding in the assets remained after distribution of all other preferential amounts but before distribution to the equity shareholders.

D 7.00 % Cumulative Redeemable Non-Convertible Preference Shares are redeemable after a period of 15 years from the date of its issues i.e.21-02-2014.

The said shares do not carry any voting rights nor do they participate in the profits of the Company, except that they carry preferential right in respect of cumulative arrears of unpaid dividend. In the event of liquidation of the Company, the preference shareholders shall be entitled to proportionate share of their holding in the assets remained after distribution of all other preferential amounts but before distribution to the equity shareholders.

A Securities and Terms of Repayment for Secured Long Term Borrowings:

Rupee Term Loans:

Rupee Term Loan of Rs. 4687.99 Lacs is secured by way of joint mortgage of immovable properties of the company situated at Plot No.2, GIDC Estate, Palej, Dist. Bahruch, Gujarat (India) both present and future, and by way of hypothecation of whole of immovable property of the Company, including plant and machinery and other movables, both present and future (Save and except inventories and book debts) whether installed or not, or in the course of transit by way of first charge to the lenders subject to the first charge on specified movable assets created in favour of banks providing Working capital finance) to rank on "pari-passu basis.

The secured borrowings are further secured by way of pledge of 3,33,08,398 Equity Shares held by the promoters in favour of the Consortium of Bankers and corporate guarantee of Spica Business Corp., Panama, the holding company of Spica Investments Ltd.,Mauritius.

The loans are rescheduled in terms of Corporate Debts Restructuring Scheme as is appoved by the Corporate Debt Restructuring Cell vide its apporval letter dtd June 27, 2012. Accordingly the loans are now repayable in stepped-up quarterly 30 instalments commencing from December 2013 as detailed hereunder.

B Default in repayment of monthly Interest and Term Loan Instalments:

During the year the company has made delays in payment of interest on long term borrowings in the range of 1 to 60 days. Interest accrued & due as at 31st March 2014 has been paid subsequent to the date of financial statement. During the year the company has made delays in repayment of principal value of long term borrowings in the range of 2 to 64 days. Moreover, the company has not paid instalment of Rs. 30,53,876/- which was due on 31 - 03-2014 till the date of financial statement which have been paid subsequent to the date of financial statement.

C Terms of Repayment for Unsecured Long Term Borrowings:

Finance obligations of Rs. 52.07 Lacs is taken against Hypothecation of respective vehicles and it is repayable as per the repayment schedule ranging 36 to 48 equal monthly instalments alongwith interest for the year. The outstanding amount as at 31st March 2014 is Rs. 16.00 Lacs. [As at 31-03-2013: Rs. 30.01 Lacs]. There is no default by the company in repayment of such loan during the year.

Disclosure pursuant to Accounting Standard-15 [Revised] "Employee Benefits" : Defined benefit plan and long term employment benefit

A General description:

Gratuity [Defined benefit plan]:

The Company has a defined benefit gratuity plan. Every employee who has completed continuous services of five years or more, gets a gratuity on death or resignation or retirement at 15 days salary [last drawn salary] for each completed year of service. The gratuity scheme is administered by the company, being unfunded liability.

Leave wages [Long term employment benefit]:

The employees of the company are entitled to leave as per the leave policy of the company. The liability on account of accumulated leave as on last day of the accounting year is recognised at present value of the defined obligation at the balance sheet date based on the actuarial valuation carried out by an independent actuary using projected unit credit method. The Leave encashment obligation is administered by the company, being unfunded liability.

[*] Working Loan comprising Cash Credit(CC), Packing Credit Foreign Currency(PCFC), Export Packing Credit (EPC), Bills discounted and Demand Loan (DL) is repayable on demand from Banks, are secured by way of hypothecation of the Company''s entire current assets including stock of goods, including raw material, work-in-process, finished goods, stores, consumables, spares, goods in transit etc.and book-debts,both present and future, to rank on "pari-passu" basis. These facilities are also secured by way of first charge over the entire fixed assets including Equitable mortgate over leasehold right over the factory land of the Company situated at Plot No.2, GIDC estate, Palej, Dist. Bharuch, Gujarat (India) both present and future. Interest for borrowing in Indian Currency through CC, EPC and DL is is 11% p.a. and for borrowing in foreign currency through PCFC is in the range of Libor 2.25% p.a. to Libor 2.50% p.a.

The secured borrowings are further secured by way of pledge of 3,33,08,398 Equity Shares held by the promoters in favour of the Consortium of Bankers.

During the year the company has drawn the working capital financing facility in excess of sanctioned limits. As at March 31, 2014, total overdrawn amount is Rs. 1110.68 lacs, which have been paid subsequent to the date of financial statement.

Notes:

1 The major items of fixed assets comprising of Leasehold Land, Buildings and Plant and machineries owned by the Company were revalued by M/s Mott MacDonald Private Limited, an independent professional technical experts and valuers as at 31st March, 2011. As per their report, the above assets with a written down value of Rs. 5740.30 lacs have been revalued at 15020.48 lacs resulting into surplus of Rs. 9280.18 lacs,which is credited to "Revaluation Reserve Account." Such assets are revalued considering:- Current prevailing market prices/derived rates attributable to land;

Current cost of construction;

Present day cost of equivalent new plant and machinery installed and ready for production;

Estimated useful life of fixed assets and related degree of obsolescence; Depreciation thereon since acquisition at an appropriate rates following Straight Line Method.

DEFERRED TAX:

A The Company has worked out deferred tax liabilities / assets as at March 31, 2014. In view of unabsorbed depreciation and business losses under tax laws, net result of computation is net deferred tax assets, which are not recognised as a matter of prudence and in absence of virtual certainty as to its realization.

B Break up of Deferred Tax Liabilities and Assets into major components of the respective balances are as under :

Hitherto, the company has been working out the cost of Raw Materials on annual moving average basis.

During the current year, the Company has changed the basis of arriving at cost from the "annual moving average cost" to the "quarterly moving average cost". Had the company followed the same basis during the year to arrive cost of Raw Materials, the closing stocks (i.e. Raw Materials, Work-In-Process and Finished Goods) would have been lower by Rs. 195.39 Lacs and the loss before tax for the year would have been higher by Rs. 195.39 Lacs.

c Central Board of excise & custom ("CBEC") vide its office memorandum dated 22nd February 2011 has clarified that where the cenvat credit is availed in respect of goods exported under the duty free import authorisation("DFIA"). such credit even if the said credit without being utilised is reversed or paid back alongwith interest after the goods are cleared for export, it will be treated as if such credit is availed by the assessee. Being agrieved by issue of such memorandum in respect of benefits claimed by the company on DFIA, the company has filed a writ petition Mumbai High Court challenging the memorandum issued by CBEC, which is decided in favour the company, based on the facts of the case and prevalent legal position and Foreign Trade Policy.

However, central excise department has filed special leave petition in the supreme court challenging the above decision of the Bombay High Court, which has been admitted by Hon''ble Supreme Court. The Company has been advised by its legal advisors that the stand of the excise deptatment is not tenable, hence there would not be any financial liabilities arising on the Company.

[*] Rent Expenses: The Company has taken various residential/office premises/godowns under operating lease or leave and license agreement. The lease terms in respect of such premises are on the basis of individual agreement entered into with the respective landlords. The Company has given refundable interest free security deposits in accordance with the agreed terms. The lease payments are recognised in the statement of Profit and Loss.

Operating leases are mainly in the nature of lease of office premises with no restrictions and are renewable/ can be cancelled at the option of either of the parties. There is no escalation clause in the lease agreement. There are no sub-leases. Lease payment recognised in the statement of Profit and Loss is Rs. 8.43 lacs [Previous Year- Rs. 6.88 lacs]

[**] The Company has approached the Central Government and has filed an application for approval of remuneration payable to Non- Executive Independent Directors of the Company which is pending approval. However, in anticipation of obtaining such approval, remuneration for the current Year amounting to Rs. 2,00,000/- is provided for in the accounts.

SEGMENT INFORMATION:

As the Company has identified manufacture of steel products as its sole primary business segment, the disclosure requirements of Accounting Standard 17 - "Segment Reporting", issued by the Institute of Chartered Accountants of India are not applicable.

GOING CONCERN ASSUMPTION

The Networth of the company has substantialy been eroded and the current liabilities are more than current assets as at the date of financial statements. However the financial statement have been prepared on a "Going Concern" basis. The company has been able to manage its operational cash flows and manufacturing/production activities during the year. Moreover, during the financial year 2012- 2013, the company got the approval for Corporate Debt Restructuring Scheme ("CDR") from Corporate Debt Restructuring cell vide its approval letter dated June 27, 2012. The promoters have also infused additional funds as per the CDR scheme. As per the short term business plan, the management has projected positive cash flows so as to operate and manage normal production levels and fund requirements and operations of the Company without incurring additional capital costs. The ability of the company to continue as a "Going Concern" is dependent upon improvement in industrial and market scenario and achieve the projected profitability.

Confirmation letters have not been obtained from some of the Debtors, Creditors, and Loans & Advances. Hence the, balances of these accounts are subject to confirmation, reconciliation and consequent adjustments, if any.

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

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Mar 31, 2013

The Company has entered into a supply agreement with supplier of Zinc during the period from 1st April, 2013 to 31st March, 2014 under which it is under obligation to purchase minimum 3000 MT of Zinc during the said period with a minimum quarterly commitment of 750 MT. In case of any shortfall, the favourable pricing treatment would not be available to the Company for such shortfall quantity, the amount of which is not ascertainable.

NOTE: 1-SEGMENT INFORMATION:

As the Company has identified manufacture of steel products as its sole primary business segment, the disclosure requirements of Accounting Standard 17 – "Segment Reporting", issued by the Institute of Chartered Accountants of In dia are not applicable.

NOTE: 2-RELATED PARTY TRANSACTIONS:

A Name of the Related Party and Nature of the Related Party Relationship: a Holding Company:

Spica Business Corp., Panama Holding Company of Spica Investments Limited

Spica Investments Limited, Mauritius Holding Company

b Directors and their relatives:

Mr. R. P. Chandaria Non-Executive Director

Mr. Rashmi Chandaria Non-Executive Director

Mr. P. G. R. Prasad Non-Executive Independent Director (upto 16.11.2012)

Mr. Mahendra Lodha Non-Executive Independent Director

Mr. Jatinder Mehra Non-Executive Independent Director

Dr. R. S. Mamak Non Executive Vice Chairman (Executive Vice Chairman upto 31.01.2013)

Mr. N. M. Mohnot Managing Director

Mrs. Saroj Mohnot Wife of Managing Director

c Enterprises significantly influenced by Directors and/or their relatives:

Amfin Finser (India) LLP Disha Infin Advisor Pvt. Ltd. Ignis International Pvt. Ltd.

NOTE: 3

The financial statements have been prepared on the basis that the Company is a going concern and that no adjustments are required to the carrying value of assets and liabilities though the Company has incurred substantial losses and its net worth has been eroded in view of the fact and having regard to execution of the Master Restructuring Agreement with consortium of lenders and approval of Corporate Debt Restructuring Scheme ("CDR") by Corporate Debt Restructuring Cell vide its approval letter dtd. June 27, 2012, infusion of additional funds by the promoters, improved operating performance and measures taken by the management to sustain the same etc.,

NOTE: 4

Confirmation letters have not been obtained from some of the Debtors, Creditors and Loans & Advances. Hence the, balances of these accounts are subject to confirmation, reconciliation and consequent adjustments, if any.

NOTE: 5

Previous years'' figures have been regrouped / reclassified wherever necessary to correspond with th e current years'' classifications/ disclosure.

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Mar 31, 2012

A The equity shares rank parri passu and carry equal rights with respect to voting and dividend.

In the event of liquidation of the Company, the equity shareholders shall be entitled to proportionate share of their holding in the assets remained after distribution of all preferential amounts.

B The Preferenpe Shares are redeemable after a period of 15 years from the date of its issue i.e. 29-09-2008. The preference share holders have right to exercise option to convert such shares into equity shares in the Company on the offer made by the Board of Directors of the Company. The said shares do not carry any voting rights nor are they participative in the profits of the Company except that they carry preferential right in respect of cumulative arrears of unpaid dividend. In the event of liquidation of the Company, the preference shareholders shall be entitled to proportionate share of their holding in the assets ' remained after distribution of all other preferential amounts but before distribution to the equity shareholders

A Securities andTerms of Repayment for Secured Long Term Borrowings: .

RupeeTerm Loans:

Rupee Term Loan ofRs. 430 Lacs is secured by way of joint mortgage of immovable properties of trie company situated at PlotNo.2, GIDC Estate, Palej, Dist. Bharuch, Gujarat (India; co;h present and future, arid by way .of hypothecation of whole of immovable property of the company, including plant and machinery and other movables, both present and future (Save and except inventories and book debts whether installed or not, or in the course of transit by Way of first charge to the lenders subject to the first charge on specified movable assets created in favour of banks providing Working capital finance) to lank on "pari - passu': basis.

The Loan is repayable in 20 quarterly instalments of Rs. 90 lacs after a moratorium period of six months from the year of its origination 2008-09 alongwith interest fcr the period.The interest rates are reset based upon SBI base rate revised from time to time.The outstanding amount of loan as at 31st March 2012 is Rs. 430 Lacs [As at 31-03-2011: Rs. 792.50 Lacs]

B Terms of Repayment for Unsecured LongTerm Borrowings:

Finance obligations of Rs. 55.23 Lacs is taken against Hypothecation of respective vehicles and it is repayable as per the repayment schedule ranging 36 to 60 equal monthly instalments alongwith interest for the period. The outstanding amount as at 31st March 2012 is Rs. 43.20 Lacs. [As at 31-03-2011: X 12.65 Lacs],

A General description:

Gratuity [Defined benefit plan]:

The Company has a defined benefit gratuity plan. Every employee who has completed continuous services of five years or more, gets a gratuity on death or resignation or retirement at 15 days salary [last drawn salary] for each completed year of service. The gratuity scheme is administered by the company, being unfunded liability.

Leave wages [Long term employment benefit]:

The employees of the company are entitled to leave as per the leave policy of the company. The liability on account of accumulated leave as on last day of the accounting year is recognised at present value of the defined obligation at the balance sheet date based on the actuarial valuation carried out by an independent actuary using projected unit credit method. The Leave encashment obligation is administered by the company, being unfunded liability. -

Notes:

1 The major items of fixed assets comprising of Leasehold Land, Buildings and Plant and mac! lineries owned by the Company were revalued by M/s Mott MacDonald Private Limited, an independent professional tf.',nical expds and valuers as at 31st March, 2011. As per their report, the above assets with a written down value of Rs. 5740.30 lacs have been revalued at Rs. 15C20.48 lacs resulting into surplus of Rs. 9280.18 lacs, which is credited to "Revaluation Reserve Account." Such asset- are revalued considering: -

Current prevailing market prices/derived rates attributable to land;

Current cost of construction;

Present day cost of equivalent new plant and machinery installed and ready for production:

Estimated useful life of fixed assets and related degree of obsolescence; Depreciation there**' since arquisiuon at an appropriate rates following Straight Line Method .

NOTE: 1-DEFERRED TAX:

A The Company has worked out deferred tax liabilities / assets as at March 31, 2012. In view of unabsorbed depreciation and business losses under tax laws, net result of computation is net deferred tax assets, which are not recognised as a matter of prudence and in absence of virtual certainty as to its realization.

NOTE: 2-CONTINGENT LIABILITIES AND COMMITMENT [TO THE EXTENT NOT PROVIDED FOR]:

A Contingent Liabilities:

a In respect of guarantees given by Banks and/or counter guarantees given by the Company 152.36 120.87

b Other money for which the company is contingent liable: .

i In respect of the demands raised by the Central Excise & Service Tax Authority 400.87 437.98

ii In respect of Income Tax matters pending before appellate authorities which the 249.15 235.70

Company expects to succeed, based on decisions of Tribunals/Courts.

iii Letters of Credit 505.42 355.51

iv Dividend on Cumulative Preference Shares1,437.56 1,027.31

v Interest on Electricity Duty Deferment Loan 83.18 83.18

vi Labour Matters 50.00 45.00

vii Total 2,878.54 2,305.55

B Commitments:

a Estimated amount of contracts remaining to be executed on capital account and not 20.57 3.31

provided for [ Net of Advances ] b Commitments under Wage Settlement agreement with the workers of the Company 52.48 -Total 73.05 3.31

The Company has entered into a supply agreement with supplier of Zinc during the period '

from 1st April, 2012 to 31st March, 2013 under which it is under obligation to purchase minimum 3000 MT of Zinc during the said period with a minimum monthly commitment of 250 MT. In case of any shortfall, the favourable pricing treatment would not be available to the Company for such shortfall quantity, the amount of which is not ascertainable.

[*] Rent Expenses:

The Company has taken various residential/office premises/godowns under operating lease or leave and license agreement. The lease terms in respect of such premises are on the basis of individual agreement entered into with the respective landlords. The Company has given refundable interest free security deposits in accordance with the agreed terms. The lease payments are recognised in the statement of Profit and Loss.

Operating leases are mainly in the nature of lease of office premises with no restrictions and are renewable/ cancellable at the option of either of the parties. There is no escalation clause in the lease agreement. There are no sub-leases. Lease payment recognised in the statement of Profit and Loss is Rs. 8.81 lacs [Previous reporting period- Rs. 9.66 lacs]

[**] Miscellaneous Expenses include Payment to the auditors as [Excluding Service Tax]:

NOTE: 4-SEGMENT INFORMATION:

As the Company has identified manufacture of steel products as its sole primary business segment, the disclosure requirements of Accounting Standard 17- "Segment Reporting", issued by the Institute of Chartered Accountants of India are not applicable.

NOTE: 5

The Company has incurred substantial losses and its net worth has been eroded substantially. Company has also incurred substantial cash loss during the current reporting period. However, having regard to the master debt recast agreement under negotiation and advanced stage under Corporate Debt Restructuring Scheme ("CDR"), infusion of additional funds etc., the financial statements have been prepared on the basis that the Company is a going concern and that no adjustments are required to the carrying value of assets and liabilities. However, the appropriateness of assumption of going concern is dependent upon the approval of CDH and company's ability to raise requisite finance or generate cash flows in future to meet its future revival plans and for continuing operations.

NOTE: 6

Confirmation letters have not been obtained from some of the Debtors, Creditors, and Loans & Advances. Hence, the balances of these accounts are subject to confirmation, reconciliation and consequent adjustments, if any.

NOTE: 7

The Revised Schedule VI has become effective from April 1,2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous Period’s figures have been regrouped/ reclassified wherever necessary to correspond with the current period’s classifications/ disclosure.

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Mar 31, 2011

1. The major items of fixed assets comprising of Leasehold Land, Buildings and Plant and machineries owned by the Company were revalued by M/s Mott MacDonald Private Limited, an independent professional technical experts and valuers as at 31st March, 2011. As per their report, the above assets with a written down value of Rs. 5740.30 lacs have been revalued at Rs. 15020.48 lacs resulting into revaluation surplus of Rs.9280.18 lacs, which is credited to "Revaluation Reserve Account." Such assets are revalued considering: -

- Current prevailing market prices/derived rates attributable to land;

- Current cost of construction;

- Present day cost of equivalent new plant and machinery installed and ready for production;

- Estimated useful life of fixed assets and related degree of obsolescence;

- Depreciation thereon since acquisition at an appropriate rate following Straight Line Method.

2.. The Company has approached the Central Government and has filed an application for approval of remuneration payable to Non-Executive Independent Directors of the Company which is pending approval. However, in anticipation of obtaining such approval, remuneration for the financial year amounting to Rs. 7,50,000/- is provided for in the accounts.

3. Estimated amount of Contracts yet to be executed for capital expenditure and not provided for is Rs. 3.31 Lacs [Net of Advances] [As at 31.03.2010 - Rs. 47.83 Lacs].

4. During the year, the company has capitalised the borrowing cost amounting to Rs. Nil (Previous Year Rs. 70.15) Lacs.

5. Contingent Liabilities not provided for in respect of:

(Rs. in Lacs) Current Previous Year Year

I Guarantees given by the Company's Bankers 120.87 82.90

II Letters of Credit opened, material not supplied 355.51 175.31

III Dividend on Cumulative Preference shares 1027.31 617.06

IV Liabilities Disputed and appeals filed before higher Appellate authorities as well as in the process of being filed in respect of:

i. Income tax matters 235.70 328.53

ii. Central Excise matters (entire amount withheld by department shown under "Loans and advances") 437.98 370.50

iii.Interest on Electricity Duty Deferment Loan 83.18 83.18

iv. Labour matters 45.00 45.00

6. SEGMENT INFORMATION:

PRIMARY BUSINESS SEGMENT

As the Company has identified manufacture of steel products as its sole primary business segment, the disclosure requirements of Accounting Standard 17 - "Segment Reporting", issued by the Institute of Chartered Accountants of India are not applicable.

7. RELATED PARTY DISCLOSURE:

Name of the related party and nature of related party relationship:

(a) Enterprises having control over Company:

SpicaI investment Limited - Holding Company

(b) Directors and their relatives:

Mr. R. P. Chandaria Non-Executive Director

Mr. Rashmi Chandaria Non-Executive Director

Mr. S. C. Sheth (ceasod due to sad demise on 26.12.10) Non-Executive Independent Director

Mr. P. G. R. Prasad Non-Executive Independent Director

Mr. Mahendra Lodha Non-Executive Independent Director

Mr. J. Mehra Non-Executive Independent Director

Dr. R. S. Mamak Executive Vice Chairman

Mr. N. M. Mohnot Deputy Managing Director

8. ACCOUNTING FOR TAXES ON INCOME:

a. In view of the brought forward unabsorbed depreciation allowance, the Company does not expect any tax liability on tho income computed as per the provision of the Income Tax Act, 1961. However, in view of the provisions of the Sec. 115JB of the Income Tax Act, 1961, the company has estimated & provided the tax liability on the book profits as computed under the provision of the Sec. 115JB of the Income Tax Act, 1961.

b. The Company has worked out deferred tax liabilities / assets as at March 31, 2011. In view of unabsorbed depreciation and business losses under tax laws, net result of computation is net deferred tax assets, which are not recognised as a matter of prudence.

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

The disclosure required under Accoutring Standard 15 (Revised) "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below:-

(a) Gratuity (Defined Benefit Plan):

The company has a defined benefit Gratuity Plan. Every employee who has completed five years or more of service gets a gratuity on death or resignation or retirement at 15 days salary (last drawn salary) for each completed year of service. The gratuity scheme is administered by the company, being unfunded liability.

Leave Wage (Long term employment benefit):

The leave wages are payable to all eligible employees at the rate of daily salary for each day of accumulated leave on death or on resignation or upon retirement on attaining superannuation age.

10. Confirmation letters have not been obtained from some of the Debtors, Creditors, and Loans & Advances. Hence the, balances of these accounts are subject to confirmation, reconciliation and consequent adjustments, if any.

11. Figures of Previous year have been regrouped and reclassified wherever necessary.

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Mar 31, 2010

1. Estimated amount of Contracts yet to be executed for capital expenditure and not provided for is Rs. 47.83 Lacs [Net of Advances] [As at 31.03.2009 - Rs. 24.15 Lacs].

2. During the year, the company has capitalised the borrowing cost amounting toRs. 70.15 (Previous Year Rs.9.11 Lacs).

3. Contingent Liabilities not provided for in respect of:

(Rs. in Lacs) Current Year Previous Year

I Guarantees given by the Companys Bankers 82.90 156.45

II Letters of Credit opened, material not supplied 175.31 308.86

III Dividend on Cumulative Preference shares 617.06 206.81

IV Liabilities Disputed and appeals filed before higher appellate authorities as well as in the process of being filed in respect of:

a. Income tax matters 328.53 392.20

b. Central Excise matters (entire amount withheld by department shown under "Loans and advances") 370.50 370.50

c. Interest on Electricity Duty Deferment Loan 83.18 83.18

d. Labour matters 45.00 45.00

4. SEGMENT INFORMATION:

PRIMARY BUSINESS SEGMENT

As the company has identified manufacture of steel products as its sole primary business segment, the disclosure requirements of Accounting Standard 17 - "Segment Reporting", issued by The Institute of Chartered Accountants of India are not applicable.

5. RELATED PARTY DISCLOSURE:

Name of the related party and nature ot related party relationship:

(a) Enterprises having control over Company:

Spica Investment Limited - Holding Company

(b) Directors and their relatives:

Mr. R. P. Chandaria

Mr. Rashmi Chandaria

Mr. S.C.Sheth

Mr. Mahendra Lodha

Mr. J. Mehra

Dr. R. S. Mamak Executive Vice Chairman

Mr. N. M. Mohnot Deputy Managing Director

Mr. M. P. Singh Director (Operations) (resigned w.e.f. 24th June, 2009)

Mr. P. G. R. Prasad Additional Director (appointed w.e.f. 23rd February, 2010)

6. ACCOUNTING FOR TAXES ON INCOME:

a. In view of the brought forward-unabsorbed business losses & depreciation allowance, the company does not expect any tax liability on the income computed as per the provision of the Income Tax Act, 1961. However, in view of the provisions of the Sec. 115JB of the Income Tax Act, 1961, the company has estimated & provided the tax liability on the book profits as computed under the provision of the Sec. 115JBofthe Income Tax Act, 1961.

b. The company has worked out deferred tax liabilities / assets as at March 31,2010. in view of unabsorbed depreciation and business losses under tax laws, net result of computation is net deferred tax assets, which are not recognised as a matter of prudence.

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

The disclosure required under Accounting Standard 15 (Revised) "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below:-

(a) Gratuity (Defined Benefit Plan):

The company has a defined benefit Gratuity Plan. Every employee who has completed five years or more of service gets a gratuity on death or resignation or retirement at 15 days salary (last drawn salary) for each completed year of service. The gratuity scheme is administered by the company being unfunded liability.

Leave Wage (Long term employment benefit):

The leave wages are payable to all eligible employees at the rate of daily salary for each day of accumulated leave on death or on resignation or upon retirement on attaining superannuation age.

8. Confirmation letters have not been obtained from some ot the Debtors, Creditors, and Loans & Advances. Hence the, balances of these accounts are subject to confirmation, reconciliation and consequent adjustments, if any.

9. Disclosure regarding MSME:-

The company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006, and hence, disclosure relating to the amounts unpaid as at the year end together with interest paid/ payable under this Act has not been given.

10. Figures of Previous Year have been regrouped and reclassified wherever necessary.