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Notes to Accounts of Anil Special Steel Industries Ltd.

Mar 31, 2014

1.1 Term loan from Bank is secured by first pari passu charge over movable and immovable assets of the company situated at Ananthpura & Kanakpura. It is also guaranteed by Shri Sudhir Khaitan, CMD of the company.

1.2 Term loan from Financial institutions is secured by first pari passu charge over movable and immovable assets of the company situated at Ananthpura & Kanakpura and also guaranteed by Shri Sudhir Khaitan.CMD of the company.

1.3 Hire purchase loan from Banks/ others are secured by respective Vehicle/Equipment financed by them, except loan from Kotak Mahindra Bank Limited, which is secured by registered mortgage of Land measuring 1088.80 Sq. yards and all the present and future super structure known as plot no. 2/17 Kalyan Kunj, Civil Lines, Jaipur and guaranteed by Shri Sudhir Khaitan, CMD of the company.

1.4 Terms of Repayment are given below:-

a) Term loan from Bank is repayable in 20 quarterly installments of Rs. 77,50,000/- commencing from May, 2013.

b) Hire Purchase loans/term loans are repayable in the FY 2014-15 Rs. 1,57,84,702/- & in FY 2015-16 Rs. 82,42,316/- & in FY 2016-17 Rs.22,261/-

1.5 Unsecured loans are interest free.

2.1 Working Capital limits of Unit-I is secured by First charge over current assets of the company (Present and future) situated at Kanakpura ranking Pari Passu among the consortium bankers. It is further secured by way of second charge on the entire fixed assets (Movable and Immovable) of company situated at Kanakpura and Ananthpura both present and future ranking pari passu among consortium bankers and personal guarantee of Shri Sudhir Khaitan, CMD of the company.

2.2 Working capital limits of Unit II from bank is secured by first charge over Current Assets of the company (both existing and future) situated at village Ananthpura, Chimanpura, Tehsil-Chomu, District- Jaipur & Second Parri passu charge among consortium Bank on the fixed assets of the company, situated at Kanakpura and Ananthpura and personal guarantee of Shri Sudhir Khaitan, CMD of the company.

3.1 Lease hold land being Written off proportionately.

3.2 The company is relocating its industrial undertaking (Unit-1 of Flat Rolled Products) from Kanakpura, Jaipur to Village Sepatpura, Patwar Halka Dhawii, Tehsil Shahpura, Distt. Jaipur and has entered into sale agreement for sale of Factory Land & Building on which Unit-1 is running.

3.3 The Company has sold open land, situated at Kanakpura (unit-1), having khasara No. 115,42/48,43,44,45,45/48, measuring 47044.61 sq mtr during the year. -

3.4 Plant & Machinery includes assets taken on lease for value of Rs. 87.47 lacs (Previous year RS. 87.47 lacs) since transferred to company at value of Re. 11-

3.5 Certain fixed assets have been revalued as at 01/04/1998. It had resulted in an increase in gross cost of Leasehold land by Rs. 7830308/ (Net of Sales of Rs. 7056692/-), Building Rs. 14428000 and Plant & Machinery Rs.88729692/- (Net of sale of Rs. 10649308/-). Consequent to the said revaluation there is additional charge of Depreciation of Rs. 2440317/- (Previous year Rs: 2440317/-) for the year and cummulative Depreciation upto 31/03/2014 Rs.92027722/- has been withdrawn from Revaluation reserve. There is no impact on profit for the year.

3.6 Unit-ll; There is change in depreciation method from last year. The company has adopted Written Down Method from financial year 2013-14 instaed of Straight line method adopted till 2013.

Depreciation is provided at WDV at the rates specified in Schedule XIV and provisions made therein of companies Act, 1956 ( as amended), on the original cost.

117 Lease rental on Leasehold land is amortized over the period of lease. Depreciation on incremental value arising on account of revaluation of assets has been charged to Revaluation Reserve Account. 11.8 At Unit-I, as per technical opinion from expert, the Company had identified certain Plant & Machineries as "Continuous Process Plant'' during financial year 2006-07 and depreciation on the same is being provided for at the rates specified under Schedule XIV of the Companies Act, 1956 (as amended) for continuous process plant till 2013. During the financial year 2013-14 company has changed its method from Continuous Process Plant to Triple Shift Plant.

4.1 Provision required to be made on account of Diminution in the value of Unquoted investment has not been ascertained & provided for as the financial statements of these companies are not available.

4.2 Investment of Rs. 8,55,000/- has been done in Kotak Smart Advantage plan of Kotak Life Insurance .The amount of investment consist the life insurance premium and other charges, paid on the life of Managing Director of the company has not been charged to revenue. The investment has been made in view of stipulation of Kotak Mahindra Bank Ltd. for sanction of Term Loan. The market value of investment as on 31st March, 2014 is not ascertainable as the policy to be kept in force for duration of 10 years. The Managing Director has given an undertaking to assign all policy benefits in favour of the company.

5.1 Deferred Tax Assets are recognised and carried forward to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such Deferred Tax Asset can be realised. Accordingly the company has recognised Deferred TaxAsset Rs.1,67,00,000/- up to 31/03/2009. The addition to deferred tax asset for the year Rs.37,67,017/- and cumulative up to 31/03/14 amounting to Rs. 1,17,78,996/- has not been done! Management has deferred the reversal till the deferred tax liability arises.

6.1 Processing and legal charges on borrowings are being amortized over five years from the year in which these are incurred. Accordingly a sum of Nil (P.Y. Rs. 1,61,030/-) has been amortized during the year.

6.2 Capital issue expenses Rs. 14,12,634/- are being amortized over 5 years. Accordingly a sum of 2,82,526/- has been written off during the year

7.1 No provision has been made for debts of Rs.3,48,835/- (previous year Rs.31,73,582/-) which are under litigation. As per legal opinion taken by the Company, these debts are good for recovery. The Provision/ write off will be done on final ascertainment.

8.1 Other Receivable includes security deposit of Rs. 98,00,000/- given against hiring of premises at Mumbai which has been called back by the company. However, till the amount is received back ,the property is being occupied and rent has not been provided since Jan 2002 in the books of accounts. Premium / deficit on Security Deposit will be accounted for on final settlement with the property owner.

8.2 The Income tax being deducted at source by the parties has been accounted on due basis.

9.1 The Company has sold open land, situated at Kanakpura (unit-1), having khasara No.115,42/48,43,44,45,45/ 48, measuring 47044.61 sq mtr during the year.

10.1 Bonus to employees is being accounted for on cash basis.{Refer Note No. 1(J)}

10.2 Leave pay is being accounted for on cash basis. Gratuity partly remain unprovided for. {Refer Note No. 1(1)}

11.1 Income tax for current year has been calculated as per applicable provisions of Section 115JB of Income Tax Act, 1961 as the tax on book profit is higher than tax on business income.

11.2 The liability of Income tax for earlier years, if any is being accounted for on crystalisation in view of Legal opinion and various appeals, rectifications pending.

As at As at 31.03.2014 31.03.201 Rupees Rupees

12 CONTINGENT LIABILITIES AND COMMITMENTS

a. Contingent Liabilities

i. Bank Guarantees(Margin their against 175187/-) 7,585,187 8,940,307

ii. Against Sales Tax Cases for earlier years under Appeal 1,052,185 1,052,185

(amount paid their against Rs. 1052185/-)

iii. Against Excise matter being disputed 4,319,085 4,319,085 (amount paid their against Rs. 30,08,388/-)

b. Commitments

i) Estimated amount of contracts remaining to be executed on Capital Account and not provided for 2,627,691 4,285,352

ii) Advances paid in respect thereof 431,005 -

13 These financial statements have been prepared in the format prescribed by the Revised Schedule VI to the Companies Act, 1956. Previous year Figures have been regrouped/ restated wherever necessary.


Mar 31, 2013

1 CONTINGENT LIABILITIES AND COMMITMENTS

a. Contingent Liabilities

i. Bank Guarantees(Margin their against 175137/-) 8,940,307 4,675,137

ii. Against Sales Tax Cases for earlier years under Appeal (amount paid their against 1,052,185 1,052,165 Rs, 1052185/-)

iii Against Excise matter being disputed . 4,318,085 1,310,S97 (amount paid theif against Rs. 30,08,388/- (Py NIL)

2 These financiaJ statements have been prepared in the format prescribed by the Revised Schedoie VI to the Companies Act, 1956. Previous year Figures have been regrouped/ restated wherever necessary.


Mar 31, 2012

1. SHARE CAPITAL

1.1 The Company had issued 1,21,78,302 Equity Share Warrants on preferential basis to selected group of persons at a price of Rs. 11.50 per warrant, compulsorily convertible in Equity Share of Rs. 10/- each at a premium of Rs. 1.50 per share within 18 months from 30.03.2010 which has approval of BSE vide letter dated 19/03/2010 out of this, the Company has converted 1,10,77,902 Equity Share Warrants into Equity Shares of Rs. 10/- each on premium of Rs. 1.50 per share and decided to refund the amount received against 11,00,400 Equity Share Warrants in the board meeting.

2. MONEY RECEIVED AGAINST SHARE WARRANTS

The Company had issued 1,21,78,302 Equity Share Warrants on preferential basis to selected group of persons at a price of Rs. 11.50 per warrant, compulsorily convertible in Equity Share of Rs. 10/- each at a premium of Rs. 1.50 per share within 18 months from 30.03.2010 which has approval of BSE vide letter dated 19/03/2010 out of this, the Company has converted 1,10,77,902 Equity Share Warrants into Equity Shares of Rs. 10/- each on premium of Rs. 1.50 per share and decided to refund the amount received against 11,00,400 Equity Share Warrants in the board meeting.

3. LONG TERM BORROWINGS

3.1 Tern loan from Bank is secured by first pari passu charge over movable and immovable assets of the company situated at Ananthpura & Kanakpura. It is also guaranteed by Shri Sudhir Khaitan, CMD of the company.

3.2 Term loan from Financial institutions is secured by first pari passu charge over movable and immovable assets of the company situated at Ananthpura & Kanakpura and also guaranteed by Shri Sudhir Khaitan, CMD of the company & Rashmi Khaitan, Director.

3.3 Hire purchase loan from Banks/others are secured by respective vehicle/equipment financed by the them, except loan from Kotak Mahindra Bank Limited Which is secured by registered mortgage of Land measuring 1088.80 Sq. yards and all the present and future super structure known as plot no. 2/17 Kalyan Kunj, Civil Lines, Jaipur and guaranteed by Shri Sudhir Khaitan CMD of the company and Smt Rashmi Khaitan, Director.

3.4 Terms of Repayment are given below:-

a) Term loan from Bank is repayable in 20 quarterly installments of Rs. 77,50,000/- commencing from May, 2013.

b) Term loan from Financial Institution is repayable in 20 quarterly installments of Rs. 85,75,000/- commencing from May, 2013.

c) Hire Purchase loans are repayable in the year 2013-14 Rs. 70,65,011/- & in FY 2014-15 Rs. 2,70,503/-

3.5 Unsecured loans are interest free.

4. SHORT TERM BORROWINGS

4.1 Working Capital limits of Unit-I is secured by First charge over current assets of the company (Present and future) situated at Kanakpura ranking Pari Passu among the consortium bankers. It is further secured by way of second charge on the entire fixed assets (Movable and immovable) of company situated at Kanakpura and Ananthpura both present and future ranking pari passu among consortium bankers and personal guarantee of Shri Sudhir Khaitan, CMD of the company.

4.2 Working capital limits of Unit II (Outstanding Rs. Nil) from bank is secured by first charge over Current assets of the company (both existing and future) situated at village Ananthpura, Chimanpura, Tehsil Chomu, District-Jaipur & Second Parri passu charge among consortium Bank on the fixed assets of the company, situated at Kanakpura and Ananthpura and personal guarantee of Shri Sudhir Khaitan, CMD of the company.

5. TRADE PAYABLES

As per information available with the Company from the suppliers who have registered themselves under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006), there were no overdues payable to any of the supplier.

SCHEDULE 6: FIXED ASSETS

6.1 Lease hold land being Written off proportionately.

6.2 Depreciation has been provided on original cost of all assets on straight line method in accordance with provisions of section 205 and 350 read with schedule XIV of Companies Act, 1956.

6.3 Plant & Machinery includes assets taken on lease for value of Rs. 87.47 lacs (P.Y. RS. 87.47 lacs) since transferred to company at value of Re. 1/-

6.4 The Gross Block of Fixed Assets includes Rs. 14887000/- (P.Y. Rs. 14887000/-) on Leasehold land, Rs. 14428000/- (P.Y. Rs. 14428000/-) on Building and Rs. 88723692/- (P.Y. Rs. 88723692/-) on Plant & Machinery (Net of sale of Rs. 10643308/-) on account of revaluation as on 1.4.1338. Consequent to the said revaluation there is additional charge of Depreciation of Rs. 2440317/- (P.Y. Rs. 2440317/-) and an equivalent has been withdrawn from Revaluation reserve. There is no impact on profit for the year.

6.5 Capital Work in Progress are in relation to TMT BAR Division at Village Anatpura, Chimanpura, Tehsil Chomu, Distt. Jaipur, Rajasthan.

7. NON CURRENT INVESTMENTS

7.1 Provision required to be made on account of Diminution in the value of Unquoted investment has not ascertained & provided for as the financial statements of these companies are not available.

7.2 Investment of Rs. 8,55,000/- has been done in Kotak Smart Advantage plan of Kotak Life Insurance. The amount of investment consist the life insurance premium and other charges, paid on the life of Managing Director of the company has not been charged to revenue.

The investment has been made in view of stipulation of Kotak Mahindra Bank Ltd. for sanction of Term Loan of Rs. 4,00,00,000/-. The market value of investment as on 31st March, 2012 is not ascertainable as the policy to be kept in force for duration of 10 years. The Managing D rector has given an undertaking to assign all policy benefits in favour of the company.

8. DEFERRED TAX ASSETS (NET)

8.1 Deferred Tax Assets are recognised and carried forward to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such Deferred Tax Asset can be realised. Accordingly the company has recognised Deferred Tax Asset Rs. 1,67,00,000/- up to 31/03/2009. The reversal of deferred tax asset for the year Rs. 38,05,027/- and cumulative up to 31/03/12 amounting to Rs. 139,02,133/- has not been done. Management has deferred the reversal till the deferred tax liability arises.

9. OTHER NON-CURRENT ASSET

9.1 Deferred Revenue expenditure of Rs. 2,46,84,514/- determined in earlier years in respect of interest paid on one time settlement has been amortized in 18 monthly installments w.e.f. 01.08.2009.

9.2 Processing and legal charges on borrowings are being amortized over five years from the year in which these are incurred. Accordingly a sum of Rs. 1,61,030/- has been amortized during the year.

9.3 Capital issue expenses Rs. 14,12,634/- are being amortized over 5 years. Accordingly a sum of Rs. 2,82,527/- has been written off during the year.

10. TRADE RECEIVABLES

10.1 No provision has been made for debts of Rs. 31,73,582/- (previous year Rs. 33,00,168/-) which are under litigation. As per legal opinion taken by the Company, these debts are good for recovery. The Provision/ write off will be done on final ascertainment.

11. SHORT TERM LOANS & ADVANCES

11.1 Other Receivable includes security deposit of Rs. 98,00,000/- given against hiring of premises at Mumbai which has been called back by the company. However, till the amount is received back the property is being occupied and rent has not been provided since Jan 2002 in the books of accounts. Premium/deficit on Security Deposit will be accounted for on final settlement with the property owner.

11.2 Income tax Advance/TDS includes Rs. 13,92,646/- which has been claimed for refund. The income tax being deducted at source by the parties are being accounted on receipt of TDS certificates from parties.

12. EMPLOYEE BENEFIT EXPENSES

12.1 Bonus to employees is being accounted for on cash basis. (Refer Note No. 1(J))

12.2 Leave pay is being accounted for on cash basis. Gratuity partly remain unprovided for. (Refer Note No. 1(I))

13. TAX EXPENSES

13.1 Income tax for current year has been calculated as per applicable provisions of Section 115JB of Income Tax Act, 1961 as the tax on book profit is higher than tax on business income

13.2 The liability of Income tax for earlier years, if any is being accounted for on crystalisation in view of Legal opinion and various appeals, rectifications pending.

14. RELATED PARTY DISCLOSURE

Names and Relationship of related parties

i) Key Management personnel and relatives

Name of Related Party Relationship

1) Mr. Sudhir Khaitan Chairman & Managing Director

2) Mrs. Rashmi Khaitan Director

34. CONTINGENT LIABILITIES AND COMMITMENTS

As at As at 31.03.2012 31.03.2011 Rupees Rupees

a. Contingent Liabilities

i. Bank Guarantees (Margin their against 175187/-) 4,675,187 5,875,187

ii. Against Sales Tax Cases for earlier years under Appeal 1,052,185 1,052,185 (amount paid their against Rs. 1052185/-)

iii. Against Excise matter being disputed 1,310,697 1,778,133

b. Commitments

i) Estimated amount of contracts remaining to be executed on Capital Account and not provided for 180,890,644 268,700,000

ii) Advances paid in respect thereof 141,817,701 26,549,711

15. These financial statements have been prepared in the format prescribed by the Revised Schedule VI to the Companies Act, 1956. Previous year Figures have been regrouped/restated.


Mar 31, 2011

A. Contingent Liabilities not provided in respect of :

Current Previous Year (Rs.) Year (Rs.)

i. Bank Guarantees 5875187 6675187

ii. Against Sales Tax Cases for earlier years under appeal 1052185 1508261

iii. Against Excise matter being disputed 1778133 1778133

b. Fixed Assets - Leasehold Land, Building and Plant & Machinery were revalued as on 1.04.1998 resulting into increase in value by sum of Rs.1,286.94 lacs and Revaluation Reserve for the same amount was created. Depreciation/ reversal on sale of assets Rs.929.16 lacs upto 31.03.2010 and Depreciation of Rs.24.40 lacs for the current year has been charged from Revaluation Reserve.

c. Capital Work In Progress of Rs. 743.72 lacs includes Land & Civil Works Rs. 415.63 lacs, Pre-operative expenses Rs. 60.01, Security Deposit Rs. 2.58 lacs and Advances agasint Capital Expenditure Rs 265.50 lacs. The capital expenditure so Incurred are in relation to TMT BAR Division at Village Anatpura, Chimanpura, Tehsil Chomu, Distt. Jaipur, Rajasthan.

d. The Stock of Finished Goods include Material-In-Transit of Rs.4,82,593 (Previous year Rs.Nil).

e. Term loans from Allahabad Bank and Indian Overseas Bank are secured on pari passu basis by deposit of title deeds of the immovable properties of the company (45396 sq meter Industrial land bearing khasara no.317 & 47044 sq Meter lease hold land bearing khasara no.115, 42/481, 43, 44,45 & 45/ 485), situated at Kanakpura, Jaipur and charge by way of hypothecation over movable assets (other than inventories and receivables) both present and future. However, the company has repaid these loans but charge is yet to be released by respective banks. The term loan are also guaranteed by one of the promoter and Managing Director of the Company. Term loan from Kotak Mahindra Bank Ltd. is secured by registered mortgage of land measuring 1088.80 sq. yards and all the present and future super structures, known as Plot No. 2/17 Kalyan Kunj, Civil Lines, Jaipur.

The working capital borrowings from the Bankers are secured by way of hypothecation on pari passu charge basis over stocks and receivables, and also secured by way of second and subservient charge over fixed and other movable assets of the company, situated at Kanakpura and personal guarantee of the promoter and Managing Director of the Company.

Hire purchase loan from others are secured by respective Vehicle/Equipment financed by the them.

f. i) Deffered Revenue Expenditure of Rs.2,46,84,514/- determined in earlier years in respect of interest paid on one time settlement is being amortised in 18 monthly instalments w.e.f 1.08.2009 . Accordingly a sum of Rs. 1,37,13,618/- has been amortised during the year.

ii) Processing and legal charges on borrowings are being amortised over five years from the year in which these are incurred. Accordingly a sum of Rs. 4,52,606/- has been amortised during the year.

iii) Capital issue expenses Rs. 14,12,634/- are being amortised over 5 years. Accordingly a sum of Rs. 2,82,527/- has been written off during the year.

g. No provision has been made for debts of Rs.33.00 lacs (previous year Rs.28.12 lacs) which are under litigation. As per legal opinion taken by the Company, these debts are good for recovery. The Provision/ write off will be done on final ascertainment.

h. Unsecured loans from bodies corporate, directors are interest free. Unsecured loans from others amounting to Rs.36.00 Lacs (Previous year Rs.81.00 Lacs) are also interest free.

i. Investment of Rs. 8,55,000/- has been done in Kotak Smart Advantage plan of Kotak Life Insurance The amount of investment consist the life insurance premium and other charges, paid on the life of Managing Director of the company has not been charged to revenue. The investment has been made in view of stipulation of Kotak Mahindra Bank Ltd. for sanction of Term Loan of Rs. 400.00 lacs. The market value of investment as on 31st March, 2011 is not ascertainable as the policy to be kept in force for duration of 10 yeras. The Managing Director has given an undertaking to assign all policy benefits in favour of the company.

j. The advances recoverable includes security deposit of Rs. 98.00 lacs given against hiring of premises at Mumbai has been called back by the company. However, till the amount is received back the property is being occupied and rent has not been provided since Jan 2002 in the books of accounts. Premium / deficit on Security Deposit will be accounted for on final settlement with the property owner.

k. The Company is having book profits during the year. At the same time it is having brought forward book losses and depreciation as provided under the provisions of section 115JB of the Act. As per legal opinion obtained by the Company, it would not be liable to pay taxes on book profits for the year. However on the current book profit, without adjusting the brought forward book losses and depreciation the tax liability works out to Rs. 60.72 lacs, which is not being provided for.

l. As per information available with the Company from the suppliers who have registered themselves under the Micro, Small and Medium Enterprises Development Act, 2006( MSMED Act, 2006), there were no Over dues payable to any of the supplier.

m. During the year, the company has accounted for Deferred Tax in accordance with the Accounting Standard 22-" Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India. The deferred tax Assets as on 31.03.2011 of Rs.66.03 lacs, calculated as per prevailing tax rates. The company has recognised deferred tax assets Rs. 167.00 lacs upto 31.3.2009 but had not recognised deferred tax assets Rs. 94.67 lacs for FY 2009-10. During the year, the company has not reverted deferred tax assets of Rs. 100.97 lacs.

n. Related Party Disclosures :

Disclosures as required by the Accounting Standard 18 "Related Party

Disclosures" are given below :

Names and Relationships of the related parties :-

a) Key Management personnel and relatives

(1) Mr. Sudhir Khaitan - Chairman & Managing Director

(2) Mrs. Rashmi Khaitan - Wife of Mr. Sudhir Khaitan-GM (Purchase) Transaction with related Parties during the year

i) Remuneration

A) Mr. Sudhir Khaitan- Rs.23,63,063.00

B) Mrs Rashmi Khaitan-Rs. 8,35,648.00 ii) Interest Free Borrowings as on 31.03.2011.

a) From Mr. Sudhir Khaitan-Rs. 70,67,693.00

b) The Key managerial persons are not having any significant control over on firm or corporate bodies. The company has also not done any transactions with firms or companies in which directors are interested.

# As certified by the management.

* This includes internal consumption of 10 MT, out of which 17320 Nos. Circular Saws/Steel Disc/LBK and Nil Springs were procured on job work basis (Previous Year 64 MT, out of which 36638 Nos. Circular Saws/ Steel Disc/LBK and 15470 Springs were procured).

Includes 34 MT (Previous year 123 MT) samples and transfer to WIP. "Includes 244 Nos. (Previous year 57 Nos.) samples and transfer to WIP

o. Previous year figures have been regrouped and rearranged wherever it is necessary. Figures in brackets are for previous year.


Mar 31, 2010

A. Contingent Liabilities not provided in respect of :

Current Previous

Year
i. Bank Guarantees 6675187 7460560

ii. Against Sales Tax Cases for earlier years under appeal 1508261 3052485

iii. Against Excise matter

being disputed 1778133 1310697

c. Fixed Assets - Leasehold land, Building and Plant & Machinery were revalued as on 1.04.1998 resulting into increase in value by sum of Rs. 1,286.94 lacs and Revaluation Reserve for the same amount was created. Depreciation/ reversal on sale of assets Rs.904.75 lacs upto 31.03.2009 and Depreciation of Rs. 24.40 lacs for the current year has been charged from Revaluation Reserve.

d. Capital Work In Progress of Rs. 238.98 lacs includes Rs 3.39 lacs on account of pre-operative expenses and Rs 89.09 lacs advances against capital expenses. The capital expenditure so incurred are in relation to TMT BAR Division at Village Anatpura, Chimanpura, Tehsil Chomu, Distt. Jaipur, Rajasthan.

e. The Stock of Finished Goods include Material-ln-Transit of Rs Nil (Preious year Rs.293198/-).

f. Term loans from Allahabad Bank and Indian Overseas Bank are secured on pari passu basis by deposit of title deeds of the immovable properties of the company (45396 sq meter Industrial land bearing `khasara no.317 & 47044 sq Meter lease hold land bearing khasara no. 115, 42/481, 43, 44,45 & 45/485), situated at Kanakpura, Jaipur and charge by way of hypothecation over movable assets (other than inventories and receivables) both present and future. The term loan are also guaranteed by one of the promoter and Managing Director of the Company. Term loan from Kotak Mahindra Bank Ltd. is secured by registered mortgage of land measuring 1088.80 sq. yards and all the present and future super structures.known as Plot No. 2/17 Kalyan Kunj, Civil Lines, Jaipur.

The working capital borrowings from the Bankers are secured by way of hypothecation on pari passu charge basis over stocks and receivables, and also secured by way of second and subservient charge over fixed and other movable assets of the company, situated at Kanakpura and personal guarantee of the promotor and Managing Director of the Company.

Vehicle hire purchase loan from others are secured by respective vehicle financed by the them.

g. i) Deffered Revenue Expenditure of Rs. 24,684,514/- determined in earlier years in respect of interest paid on one time settlement is being amortised in 18 monthly instalments w.e.f 1.08.2009. Accordingly a sum of Rs. 10,970,8967- has been amortised during the year.

ii) Processing and legal charges on borrowings are being amortised over five years from the year in which these are incurred. Accoringly a sum of Rs. 452,606/- has been amortised during the year.

iii) Pre operative expenses (pending capitalisation) Rs. 9,44,651/- have been written off during the year as the project for which consultancy was taken has been abondoned.

iv) Capital issue expenses Rs. 14,12,634/- would be amortised over 5 years. Accordingly a sum of 2,82,527/- has been written off during the year.

h. No provision has been made for debts of Rs. 28.12 lacs (previous year Rs. 23.13 lacs) which are under litigation. As per legal opinion taken by the Company, these debts are good for recovery. The Provision/ write off will be done on final ascertainment.

i. Unsecured loans from bodies corporate, directors are interest free. Unsecured loans from others amounting to Rs. 81.00 Lacs(Previous year Rs. 103.00 Lacs) are also interest free.

j. Investment of Rs. 5,80,000/- has been done in Kotak Smart Advantage plan of Kotak Life Insurance The amount of investment consist the life insurance premimum and other charges, paid on the life of Managing Director of the company has not been charged to revenue. The investment has been made in view of stipulation of Kotak Mahindra Bank Ltd. for sanction of Term Loan of Rs. 400 lacs. The market value of investment as on 31st March, 2010 is not ascertainable as the policy to be kept in force for duration of 10 years. The Managing Director has given an undertaking to assign all policy benefits in favour of the company.

k. The advances recoverable includes security deposit of Rs. 98.00 lacs given against hiring of premises at Mumbai has been called back by the company. However, till the amount is received back the property is being occupied and rent has not been provided since Jan 2002 in the books of accounts. Premium / deficit on Security Deposit will be accounted for on final settlement with the property owner.

I. The Company is having book profits during the year. At the same time it is having brought forward book losses and depreciation as provided under the provisions of section 115JB of the Act . As per legal opinion obtained by the Company, it would not be liable to pay taxes on book profits for the year. The Company has provided Income Tax on book profit for the year ended 31st March, 2009 to the tune of Rs. 578192/-. The company is revising its Income Tax Return, as it was not liable for book profit tax, in view of b/f losses and depreciation. Accordingly, the provision of Income Tax made in earlier year is being reverted. However on the current book profit, without adjusting the brought forward book losses and depreciation the tax liabilty works out to Rs. 35.38 lacs, which is not being provided for.

m. Due to accounting of Bonus and Leave Pay on cash basis the Company has charged a sum of Rs.74.01 lacs on account of Bonus and Rs. 13.22 lacs on account of Leave Pay during the current year. However the Bonus accrued Rs. 83.56 lacs for the year ended 31st March2010 and Leave Pay accrued Rs. 43.93 lacs up to 31st March 2010 remain un-provided for.

n. As per information available with the Company from the suppliers who have registered themselves under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006), there were no overdues payable to any of the supplier.

r. Earning Per Share :

Basic Earning Per Share has been calculated by dividing profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The company has issued the potential equity shares and accordingly, basic earning per share and diluted earning per share has been computed as under:

Previous year figures have been regrouped and rearranged wherever it is necessary. Figures in brackets are for previous year.b. Contingent Liabilities not provided in respect of :

Current Previous

Year
i. Bank Guarantees 6675187 7460560

ii. Against Sales Tax Cases for earlier years under appeal 1508261 3052485

iii. Against Excise matter

being disputed 1778133 1310697

c. Fixed Assets - Leasehold land, Building and Plant & Machinery were revalued as on 1.04.1998 resulting into increase in value by sum of Rs. 1,286.94 lacs and Revaluation Reserve for the same amount was created. Depreciation/ reversal on sale of assets Rs.904.75 lacs upto 31.03.2009 and Depreciation of Rs. 24.40 lacs for the current year has been charged from Revaluation Reserve.

d. Capital Work In Progress of Rs. 238.98 lacs includes Rs 3.39 lacs on account of pre-operative expenses and Rs 89.09 lacs advances against capital expenses. The capital expenditure so incurred are in relation to TMT BAR Division at Village Anatpura, Chimanpura, Tehsil Chomu, Distt. Jaipur, Rajasthan.

e. The Stock of Finished Goods include Material-ln-Transit of Rs Nil (Preious year Rs.293198/-).

f. Term loans from Allahabad Bank and Indian Overseas Bank are secured on pari passu basis by deposit of title deeds of the immovable properties of the company (45396 sq meter Industrial land bearing `khasara no.317 & 47044 sq Meter lease hold land bearing khasara no. 115, 42/481, 43, 44,45 & 45/485), situated at Kanakpura, Jaipur and charge by way of hypothecation over movable assets (other than inventories and receivables) both present and future. The term loan are also guaranteed by one of the promoter and Managing Director of the Company. Term loan from Kotak Mahindra Bank Ltd. is secured by registered mortgage of land measuring 1088.80 sq. yards and all the present and future super structures.known as Plot No. 2/17 Kalyan Kunj, Civil Lines, Jaipur.

The working capital borrowings from the Bankers are secured by way of hypothecation on pari passu charge basis over stocks and receivables, and also secured by way of second and subservient charge over fixed and other movable assets of the company, situated at Kanakpura and personal guarantee of the promotor and Managing Director of the Company.

Vehicle hire purchase loan from others are secured by respective vehicle financed by the them.

g. i) Deffered Revenue Expenditure of Rs. 24,684,514/- determined in earlier years in respect of interest paid on one time settlement is being amortised in 18 monthly instalments w.e.f 1.08.2009. Accordingly a sum of Rs. 10,970,8967- has been amortised during the year.

ii) Processing and legal charges on borrowings are being amortised over five years from the year in which these are incurred. Accoringly a sum of Rs. 452,606/- has been amortised during the year.

iii) Pre operative expenses (pending capitalisation) Rs. 9,44,651/- have been written off during the year as the project for which consultancy was taken has been abondoned.

iv) Capital issue expenses Rs. 14,12,634/- would be amortised over 5 years. Accordingly a sum of 2,82,527/- has been written off during the year.

h. No provision has been made for debts of Rs. 28.12 lacs (previous year Rs. 23.13 lacs) which are under litigation. As per legal opinion taken by the Company, these debts are good for recovery. The Provision/ write off will be done on final ascertainment.

i. Unsecured loans from bodies corporate, directors are interest free. Unsecured loans from others amounting to Rs. 81.00 Lacs(Previous year Rs. 103.00 Lacs) are also interest free.

j. Investment of Rs. 5,80,000/- has been done in Kotak Smart Advantage plan of Kotak Life Insurance The amount of investment consist the life insurance premimum and other charges, paid on the life of Managing Director of the company has not been charged to revenue. The investment has been made in view of stipulation of Kotak Mahindra Bank Ltd. for sanction of Term Loan of Rs. 400 lacs. The market value of investment as on 31st March, 2010 is not ascertainable as the policy to be kept in force for duration of 10 years. The Managing Director has given an undertaking to assign all policy benefits in favour of the company.

k. The advances recoverable includes security deposit of Rs. 98.00 lacs given against hiring of premises at Mumbai has been called back by the company. However, till the amount is received back the property is being occupied and rent has not been provided since Jan 2002 in the books of accounts. Premium / deficit on Security Deposit will be accounted for on final settlement with the property owner.

I. The Company is having book profits during the year. At the same time it is having brought forward book losses and depreciation as provided under the provisions of section 115JB of the Act . As per legal opinion obtained by the Company, it would not be liable to pay taxes on book profits for the year. The Company has provided Income Tax on book profit for the year ended 31st March, 2009 to the tune of Rs. 578192/-. The company is revising its Income Tax Return, as it was not liable for book profit tax, in view of b/f losses and depreciation. Accordingly, the provision of Income Tax made in earlier year is being reverted. However on the current book profit, without adjusting the brought forward book losses and depreciation the tax liabilty works out to Rs. 35.38 lacs, which is not being provided for.

m. Due to accounting of Bonus and Leave Pay on cash basis the Company has charged a sum of Rs.74.01 lacs on account of Bonus and Rs. 13.22 lacs on account of Leave Pay during the current year. However the Bonus accrued Rs. 83.56 lacs for the year ended 31st March2010 and Leave Pay accrued Rs. 43.93 lacs up to 31st March 2010 remain un-provided for.

n. As per information available with the Company from the suppliers who have registered themselves under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006), there were no overdues payable to any of the supplier.

r. Earning Per Share :

Basic Earning Per Share has been calculated by dividing profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The company has issued the potential equity shares and accordingly, basic earning per share and diluted earning per share has been computed as under:

Previous year figures have been regrouped and rearranged wherever it is necessary. Figures in brackets are for previous year.

 
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