Notes to Accounts of Ashirwad Steels & Industries Ltd.

Mar 31, 2015

1 Terms/Rights attached to Equity Shares

The Company has only one class of equity shares having a per value of Rs.10 par share. Each holder of equity share is entitled to one vote per share and ranks Pari-pasu.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company after settlement of all outside liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

(a) Balances with banks includes Fixed deposits under lien for Bank Guarantees of Rs. 46,00,000/- issued to Central Coalfields Ltd. and Rs.82,08,000/- to The Singareni Collieries Co. Ltd. (Previous Year Rs.1,02,16,000/-).

(b) Balances with banks in deposit accounts include deposits under lien of Rs.8,50,00,000/- (previous year Rs.8,50,00,000/-)to the HDFC Bank Ltd. as security against overdraft facility provided by the said bank against the aforesaid Fixed Deposits.

(c) Balances with banks include deposits of Rs.12,01,31,888/- (previous year Rs 11,08,42,966/- ) having original maturity of 12 months or more.

2 .Lease:

The Company has leased its RLHG/LPG Bottling Plant in the WBIIDC land located at ULUBERIA, Howrah, (W. Bengal) along with all existing building, structures and equipment, storage bullets, piping etc. situated on the same land and the plant and equipment and other immovable assets with effect from 21.3.2000. The Lease Period has been renewed for a period of 3 years from 01.04.2013 to 31.03.2016. The requirement of disclosure under AS 19 in respect of Lease is not applicable as it came into effect in respect of asset leased during accounting periods commencing on or after 01.04.2001 only.

3 . During the year, in terms of accounting standard AS-28 issued by the Institute of Chartered Accountants of India on ''Impairment of Assets'', the company has determined that there was impairment loss in respect of its assets amounting to Rs. 1,85,037/- which has been charged in the Profit & Loss Account.

4 . Contingent Liabilities:

a) Bank Guarantees issued by the HDFC Bank in favour of Third Parties as follows:

i) Bank Guarantee No.014GT01133450003 dated 11.12.2013 for Rs.46,00,000/- issued in favour of Central Coal Fields Ltd. against which the company has pledged/ created lien on it fixed deposits with the HDFC Bank Ltd.

ii) Bank Guarantee No.GTEE/304557 dated 29.04.2014 for Rs.56,16,000/- issued in favour of The Singareni Collieries Co, Ltd. against which the company has pledged/ created lien on it fixed deposits with the HDFC Bank Ltd.

iii) Bank Guarantee No.GTEE/304734 dated 16.05.2014 for Rs.25,92,000/- issued in favour of The Singareni Collieries Co, Ltd. against which the company has pledged/ created lien on it fixed deposits with the HDFC Bank Ltd.

b) Claims not acknowledged by company are as under:-

2014-15 2013-14 (Rs.) (Rs.)

(1) VAT on Coal Purchase 15,08,910 15,08,910 (net of payment)

(2) Income Tax (Pending before 11,92,821 11,92,821 Appellate authorities & Hon''ble ITAT in respect of which the company is in appeal.)

(3) CENVAT on capital goods (net of payment) 12,14,662 12,14,662

c) Compensation of Rs. 1,15,48,530/- for Company''s alleged non-lifting of coal wrongly and illegally claimed by M/S Central Coalfield Ltd., Ranchi and the Company has refused and refuted such illegal and baseless claims and the entire matter is pending with the Hon''ble High Court at Ranchi for adjudication.

5 . The balances of debtors and creditors are subject to confirmation by the parties.

6 . Estimated amount of contracts remaining to be executed on Capital Accounts and not provided for(net of advance payment) Rs. Nil (Previous year Rs.Nil )

7 . Deposits include National Savings Certificates and Post Office Savings Deposit pledged with:

(i) Commercial Tax Authorities Rs.10, 000/- (Previous year Rs.10, 000/-)

(ii) Mining Licensing Authorities Rs.105, 000/- (Previous year Rs.105, 000/-)

8. There is decline other than temporary, in the value of one long term investment in Equity share, therefore the resultant reduction of Rs. 3,41,600/- in the carrying amount is charged to the profit & loss account as per AS-13.

9 . No interest has been paid/or is payable by the Company during the year to the "Suppliers" covered under the micro Small and Medium Enterprises Development Act, 2006. To the extent information available with the company, none of the suppliers were covered under the provisions of Micro Small and Medium Enterprises Development Act, 2006.

10 . Effective March, 2011; M/s. Central Coalfields Ltd., Ranchi, had increased the price of ''B'' Grade coal by whopping approx. 130% overnight in one stroke resulting in the aforesaid coal becoming absolutely unviable and uneconomical for the production of Sponge Iron at Company''s Sponge Iron Plant located at Jamshedpur. Accordingly, the Company had made several requests and representations, verbally and in writing to them with a request to supply Grade ''C'' coal or lower grade of coal whose price increase was only 30% but Central Coalfields Ltd. most arbitrarily and illegally refused such valid requests of the company. Being highly aggrieved by this most illegal, unjustified, arbitrary and discriminatory act ; the Company had taken legal action against Central Coalfields Ltd. (CCL) in the Hon''ble High Court at Ranchi and that matter is under hearing and adjudication. As the Company suffered heavy losses for non- supply of coal by CCL, despite having provided them with Bank Guarantees of Rs.46,00,000/- and Coal advance amount of Rs.1,14,30,107/-; it got entitled for compensation from Central Coalfields Ltd. as per Clause No . 4.5 to 4.8 of FSA dated 29.04.2008 entered with them and also based on law of equity and justice and it accordingly raised on CCL a Compensation Bill of Rs. 99.45,450/- for accounting year 2011-12 and Rs. 99,45,450/- for accounting year 2012-13 along with an Interest amount of Rs. 6,86,644/- receivable on the said compensation amount and an Interest Bill of Rs. 45,33,763/- on Company''s purchase advance amount of Rs. 1,14,30,107/- lying with them. Upon refusal by Central Coalfields Ltd. to pay the aforesaid compensation and interest amounts; the Company has filed legal suits against the Central Coalfields Ltd. at Hon''ble High Court at Ranchi and the said suits are pending for hearing and adjudication. Since the matter is subjudice; the Company will account for the aforesaid compensation and interest amount being legitimately receivable from Central Coalfields Ltd. on actual receipt basis after the final verdict is announced by the Hon''ble High Court at Ranchi and/or higher courts. The company has claimed further interest on the above accounts for the subsequent years and the total of such cumulative amounts stand at Rs.2,05,89,480/- as on 31.3.2015 and the same shall be accounted for on receipt basis.

11 . In accordance with Accounting Standard 19 on ''Leases'' as notified under the Companies (Accounting Standards) Rules 2006 the following disclosures in respect of operating leases are made.

The Company has taken factory land premises at Adityapur from Adityapur Industrial Area Development Authority under operating lease on 11.03.99 for a period of 90 years.

12 Depreciation on Fixed Assets in the current year calculated and based on the method as prescribed in Schedule II of the Companies Act,2013 is Rs.67,45,638/-. However if depreciation was calculated based on earlier method prescribed in Schedule XIV of the previous Company''s Act,1956 the amount of depreciation chargeable to Profit & Loss Account would have been Rs. 1,11,38,919. Therefore the difference arising due to the change in the method of depreciation is Rs. 43,93,281 and to that extent loss for the financial year under review is understated.

13 During the financial year ended 31.3.15, the company has provided unsecured inter corporate loans to M/s Consortium Capital Pvt. Ltd. & Limtex (India) Ltd. for their Working Capital needs but such loans have not exceeded the limits prescribed u/s 186 of the Companies Act, 2013. Beside these; the company has not provided loans to any other person or made any investments or given any kind of guarentee to or on behalf of any person.

14 The revised schedule III to the Companies Act, 2013 has become effective for preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Accordingly, the figures for the previous year have been re-classified, wherever necessary to conform with the current year''s classification.

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Mar 31, 2014

1. Share Capital:

(a) The entire Share Capital comprises of Equity Shares, and the shareholders have equal rights in respect of distribution of dividends and the repayment of capital.

(b) The company is neither a holding company nor a subsidiary company.

(c) There are no shares reserved for issue under options and contracts/commitments for the sale of shares/disinvestment.

(d) For the period of 5 years immediately preceding the date as at which the Balance Sheet is prepared.

(e) Shares in the company held by each shareholders holding more than 5 per cent shares:

(f) There were no securities issued having a term for conversion into equity/preference shares.

(g) There are no calls unpaid in respect of Equity Shares issued by the company.

(h) There are no forfeited shares by the company.

(i) Terms/Rights attached to Equity Shares

The Company has only one class of equity shares having a per value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share and ranks pari pasu. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company after settlement of all outside liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. Non-current Investments (At cost):

Trade Investments:

(a) Investments in Equity Instalments fully paid up(Quoted)

None of the above companies are subsidiaries or associates or joint ventures or controlled special purpose entities.

(b) Investment in Equity Instruments fully paid up (Unquoted) in associated company

3. Trade Receivables:

(i) Allowance to be made for doubtful debt is not necessary.

(ii) There are no debts due by directors or other officers of the company either severally or jointly with any other person or debts due by firms or private companies respectively in which any director is a partner or a director or a member.

4. Cash and Bank Balances:

a) Balances with banks includes deposits under lien of Rs. 46,00,000/- issued to Central Coalfields Ltd. and Rs. 56,16,000/- issued to The Singareni Collieries Co. Ltd. (Previous Year Rs. 53,86,594/-) against bank guarantees.

b) Balances with banks in deposit accounts include deposits under lien of Rs. 8,50,00,000/- (previous year Rs. 8,50,00,000/-)to the HDFC Bank Ltd. for security against overdraft facility provided by the said bank.

c) Balances with banks include deposits of Rs. 11,08,42,966/- (previous year Rs. 14,79,99,278/-) having original maturity of 12 months or more.

5. Cost of materials consumed:

Consumption of coal of the current year include the cost value of 1840.700 MT of coal valuing Rs. 40,29,293 sold during the year out of the opening stock quantity.

6. Lease:

The Company has leased its RLHG/LPG Bottling Plant in the WBIIDC land located at ULUBERIA, Howrah, (W. Bengal) along with all existing building, structures and equipment, storage bullets, piping etc. situated on the same land and the plant and equipment and other immovable assets with effect from 21.3.2000. The Lease Period has been renewed during the year for a period of 3 years from 01.04.2013 to 31.03.2016. The requirement of disclosure under AS 19 in respect of Lease is not applicable as it came into effect in respect of asset leased during accounting periods commencing on or after 1.4.2001 only.

7. Deferred Tax Liability/(Asset): Income Tax:

In accordance with the requirement of Accounting Standard (AS) 22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the deferred tax asset of Rs. 23,21,146/- for the year has been recognized in the Profit & Loss Account for the year.

8. During the year, in terms of accounting standard AS-28 issued by the Institute of Chartered Accountants of India on ''Impairment of Assets'', the company has determined that there was no potential impairment loss in respect of its assets.

9. Contingent Liabilities:

a) Bank Guarantees issued by the HDFC Bank in favour of Third Parties as follows:

i) Bank Guarantee NO.014GT01133450003 dated 11.12.2013 for Rs. 46,00,000/- issued in favour of Central Coalfields Ltd. against which the company has pledged/created lien on it fixed deposits with the HDFC Bank Ltd.

ii) Bank Guarantee No. 014GT02121370001 dated 03.04.2013 for Rs. 56,16,000/-issued in favour of The Singareni Collieries Company Ltd.

c) Compensation of Rs. 1,15,48,530/- for Company''s alleged non-lifting of coal wrongly and illegally claimed by M/S Central Coalfields Ltd., Ranchi as Company has refused and refuted such illegal and baseless claims and the entire matter is pending with the Hon''ble High Court at Ranchi.

10. On the basis of a writ petition filed by the Company against State Government''s order withdrawing remission of Sales Tax pursuant to imposition of VAT in the State; the Hon''ble High Court of Jharkhand at Ranchi has allowed the benefit of deferment of tax for VAT and although the Hon''ble High Court order is not specific about deferment of CST, the Company assumes that deferment order is applicable to both VAT and CST in respect of its sales from it''s Sponge Iron plant at Jamshedpur. The company has accordingly paid the entire disputed tax liability on account of CST Rs. 31,63,636/- and of VAT Rs. 33,72,410/- till the end of the year, although this matter is pending for decision before the Hon''ble Supreme Court.

11. The balances of debtors and creditors are subject to confirmation by the parties.

12. Estimated amount of contracts remaining to be executed on Capital Accounts and not provided for(net of advance payment) Rs. Nil (Previous year Rs. Nil)

13. Deposits include National Savings Certificates and Post Office Savings Deposit pledged with:

(i) Commercial Tax Authorities Rs. 10,000/- (Previous year Rs. 10,000/-)

(ii) Mining Licensing Authorities Rs. 1,05,000/-(Previous year Rs. 1,05,000/-)

14. Based on market value of the Company''s investments as on 31.3.2014, there was no demunition in value of shares and hence no provision for the same has been made in the accounts.

15. No interest has been paid/payable by the Company during the year to the "Suppliers" covered under the micro Small and Medium Enterprises Development Act, 2006. To the extent information available with the company, none of the suppliers were covered under the provisions of Micro Small and Medium Enterprises Development Act, 2006.

16. Effective March, 2011; M/s. Central Coalfields Ltd., Ranchi, had increased the price of ''B'' Grade coal by whopping approx. 130% overnight in one stroke resulting in the aforesaid coal becoming absolutely enviable and uneconomical for the production of Sponge Iron at Company''s Sponge Iron Plant located at Jamshedpur. Accordingly, the Company had made several requests and representations, verbally and in writing to them with a request to supply Grade ''C'' coal or lower grade of coal whose price increase was only 30% but Central Coalfields Ltd. most arbitrarily and illegally refused such valid requests of the company. Being highly aggrieved by this most illegal, unjustified, arbitrary and discriminatory act; the Company had taken legal action against Central Coalfields Ltd. in the Hon''ble High Court at Ranchi and that matter is under hearing and adjudication. As the Company suffered heavy losses for non-supply of coal by Central Coalfields Ltd., despite having provided them with Bank Guarantees of Rs. 46,00,000/- and Coal advance amount of Rs. 1,14,30,107/-; it got entitled for compensation from Central Coalfields Ltd. as per Clause No. 4.5 to 4.8 of FSA dated 29.04.2008 entered with them and it accordingly raised on CCL a Compensation Bill of Rs. 99.45,450/- for Accounting Year 2011-12 and Rs. 99,45,450/- for Accounting Year 2012-13 along with an interest amount of Rs. 6,86,644/- receivable on the said compensation amount and an Interest Bill of Rs. 45,33,763/- on Company''s purchase advance amount of Rs. 1,14,30,107/- lying with them. Upon refusal by Central Coalfields Ltd. to pay the aforesaid compensation and interest amounts; the Company has filed a suit against Central Coalfields Ltd. at Hon''ble High Court at Ranchi for winding up of the former and the said suit is pending for hearing and adjudication. Since the matter is subjudice; the Company will account for the aforesaid compensation and interest amount being legitimately receivable from Central Coalfields Ltd. on actual receipt basis after the final verdict is announced by the Hon''ble High Court at Ranchi and/or Higher Courts. The company has claimed further interest on the same for the Accounting Year 2013-14 amounting to Rs. 69,88,727/- and the same shall also be accounted for on actual receipt basis.

17. In accordance with Accounting Standard 19 on ''Leases'' as notified under the Companies (Accounting Standards) Rules 2006 the following disclosures in respect of operating leases are made.

The Company has taken factory land premises at Adityapur from Adityapur Industrial Area Development Authority under operating lease on 11.03.99 for a period of 90 years.

18. The revised schedule VI to the Companies Act, 1956 has become effective for preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Accordingly, the figures for the previous year have been re-classified, wherever necessary to conform with the current year''s classification.

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Mar 31, 2013

2. Lease:

The Company has leased its RLHG/LPG Bottling Plant in the WBIIDC land located at ULUBERIA, Howrah, (W. Bengal) along with all existing building, structures and equipment, storage bullets, piping etc. situated on the same land and the plant and equipment and other immovable assets with effect from 21.3.2000. The Lease Period expired on 31.03.2013 and the process for renewal/extension of the said lease is under progress. The requirement of disclosure under AS 19 in respect of Lease is not applicable as it came into effect in respect of asset leased during accounting periods commencing on or after 1.4.2001 only.

In accordance with the requirement of Accounting Standard (AS) 22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the deferred tax asset of Rs. 13,42,987/- for the year has been recognized in the Profit & Loss Account for the year.

2. During the year, in terms of accounting standard AS-28 issued by the Institute of Chartered Accountants of India on ''Impairment of Assets'', the company has determined that there was no potential impairment loss in respect of its assets.

3. Contingent Liabilities:

a) Bank Guarantees issued by the Citi Bank in favour of Third Parties as follows against which the company has pledged it''s Fixed Deposits .

i) Bank Guarantee No.5568116503 dated 25.04.2008 for Rs.42,00,000/- issued in favour of Central Coalfields Ltd.

ii) Bank Guarantee No. 5569323502 dated 19.11.2009 for Rs.4,00,000/-issued in favour of Central Coalfields Ltd.

c) Compensation of Rs. 1,15,48,530/- for Company''s alleged non-lifting of coal wrongly and illegally claimed by M/s. Central Coalfields Ltd., Ranchi as Company has refused and refuted such illegal and baseless claims and the entire matter is pending with the Hon''ble High Court at Ranchi.

4. On the basis of a writ petition filed by the Company against State Government''s order withdrawing remission of Sales Tax pursuant to imposition of VAT in the State; the Hon''ble High Court of Jharkhand at Ranchi has allowed the benefit of deferment of tax for VAT and although the Hon''ble High Court order is not specific about deferment of CST, the Company assumes that deferment order is applicable to both VAT and CST in respect of its sales from its Sponge Iron plant at Jamshedpur. The company has accordingly paid the entire disputed tax liability on account of CST Rs.31,63,636 /- and of VAT Rs.33,72,410 /- till the end of the year, although this matter is pending for decision before the Hon''ble Supreme Court.

5. The balances of debtors and creditors are subject to confirmation by the parties.

6. Estimated amount of contracts remaining to be executed on Capital Accounts and not provided for(net of advance payment) Rs. Nil (Previous year Rs.8,01,925)

7. Deposits include National Savings Certificates and Post Office Savings Deposit pledged with:

(i) Commercial Tax Authorities Rs.10,000/- (Previous year Rs.10,000/-)

(ii) Mining Licensing Authorities Rs. 105,000/- (Previous year Rs.55,000/-)

8. Based pn market value of the Company''s investments as on 31.3.2013, there was ndemunition in value of shares and hence no provision for the same has been made in the accounts.

9. No interest has been paid/payable by the Company during the year to the "Suppliers" covered - under the micro Small and Medium Enterprises Development Act, 2006.

To The extent information available with the company, none of the suppliers were covered under the provisions of Micro Small and Medium Enterprises Development Act, 2006.

10. Effective March, 2011; M/s. Central Coalfields Ltd., Ranchi, had increased the price of ''B'' Grade coal by whopping approx. 130% overnight in one stroke resulting in the aforesaid coal becoming absolutely unviable and uneconomical for the production of Sponge Iron at Company''s Sponge Iron Plant located at Jamshedpur. Accordingly, the Company had made several requests and representations, verbally and in writing to them with a request to supply Grade ''C'' coal or lower grade of coal whose price increase was only 30% but Central Coalfields Ltd. most arbitrarily and illegally refused such valid requests of the company. Being highly aggrieved by this most illegal, unjustified, arbitrary and discriminatory act; the Company had taken legal action against Central Coalfields Ltd. in the Hon''ble High Court at Ranchi and that matter is under hearing and adjudication. As the Company suffered heavy losses for non-supply of coal by Central Coalfields Ltd., despite having provided them with Bank Guarantees of Rs.46,00,000/- and Coal advance amount of Rs.1,14,30,107/-; it got entitled for compensation from Central Coalfields Ltd. as per Clause Nos. 4.5 to 4.8 of FSA dated 29.04.2008 entered with them and it accordingly raised on CCL then a Compensation Bill of Rs. 99,45,450/- for accounting year 2011-12 and Rs. 99,45,450/- for accounting year 2012-13 along with an Interest amount of Rs. 6,86,644/- receivable on the said compensation amount and an Interest Bill of Rs. 45,33,763/- on Company''s purchase advance amount of Rs. 1,14,30,107/- lying with them. Upon refusal by Central Coalfields Ltd. to pay the aforesaid compensation and interest amounts; the Company has filed a suit against Central Coalfields Ltd. at Hon''ble High Court at Ranchi for winding up of the former and the said suit is pending for hearing and adjudication. Since the matter is subjudice; the Company will account for the aforesaid compensation and interest amount being legitimately receivable from Central Coalfields Ltd. on actual receipt basis after the final verdict is announced by the Hon''ble High Court at Ranchi and/or higher courts.

11. In accordance with Accounting Standard 19 on ''Leases'' as notified under the Companies (Accounting Standards) Rules 2006 the following disclosures in respect of operating leases are made.

The Company has taken factory land premises at Adityapur from Adityapur Industrial Area Development Authority under operating lease on 11.03.99 for a period of 90 years.

12. Additional Information pursuant to the provisions of Part II to Schedule VI of the Companies Act, 1956 to the extent applicable

13 The revised schedule VI to the Companies Act, 1956 has become effective for preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial state- ments. Accordingly, the figures for the previous year have been re-classified, wherever necessary to conform with the current year''s classification.

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Mar 31, 2010

1. Lease:

The Company has leased its RLHG/LPG Bottling Plant in the WBIIDC land located at ULUBERIA, Howrah, (Wr Bengal) along with all existing building, structures and equipment, storage bullets, piping etc. situated on the same land and the plant and machinery and other immovable assets with effect from 21.3.2000. The Lease Period expired on 20.03.2008 and the same was renewed / extended up to 31.03.2010. The aforesaid Lease is now of in the process of renewal for a further period of 3 years up to 31.03.2013 subject to finalization of terms & condition and both the parties agreeing to the same. The requirement of disclosure under AS 19 in respect of Lease is not applicable as it comes into effect in respect of asset leased during accounting periods commencing on or after 1.4.2001 only.

2. Deferred Tax Liability/(Asset): Income Tax

In accordance with the requirement of Accounting Standard (AS) 22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the deferred tax asset of Rs. 182,999/- for the year has been recognized in the Profit & Loss Account for the year.

3. During the year, in terms of accounting standard AS-28 issued by the Institute of Chartered Accountants of India on Impairment of Assets, the company has determined that there was no potential impairment loss in respect of its assets.

4. Managing Directors Remuneration for the year is Rs.1,80,0007- (Previous year Rs.1,80,000/-)

5. Contingent Liabilities:

a) Bank Guarantees issued by the Citi Bank in favour of Third Parties on behalf of the company amount to Rs. 1,11,02,997/- counter guaranteed by the company Rs. 1,11,02,997/- (previous year Rs 12,384,466/-). These Bank guaranteed are covered by charge created in favour of the Bankers by way of lien on Fixed Deposits held with the said bank.

6. The debtors and creditors balances are subject to confirmation by the parties.

7. Raw material consumption includes only consumption of indigenous raw materials.

8. C.I.F. Value of imports, and earning in foreign exchange Rs. Nil (previous year Rs. Nil)

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Mar 31, 2009

1. Lease:

The Company has leased its RLHG/LPG Bottling Plant in the WBIIDC land located at ULUBERIA, Howrah, (W. Bengal) along with all existing building, structures and equipment, storage bullets, piping etc. situated on the same land and the plant and machinery and other immovable assets with effect from 21.3.2000. The Lease Period expired on 20.03.2008 and the same was renewed / extended up to 31.03.2010. The requirement of disclosure under AS 19 in respect of Lease is not applicable as it comes into effect in respect of asset leased during accounting periods commencing on or afterl .4.2001 only.

2. Contingent Liabilities :

a) Bank Guarantees issued by the Bank in favour of Third Parties on behalf of the company Rs. 12,384,466/ - counter guaranteed by the company Rs. 12,384,466/- (previous year Rs. 73,36,000/-). These are covered by charge created in favour of the Bankers by way of lien on Fixed Deposits held with the bank.

b) Claims not acknowledged by company are relating to the following areas:

2008-09 (Rs.) 2007-08 (Rs.)

(i) Purchase Tax (VAT) on Coal Purchase(Out of which the 3,017,821 3,017,821 company has paid Rs.15,08,911/- under protest).

(ii) Income Tax (Pending before Appellate authorities in 1,579,364 1,579,364 respect of which the company is in appeal.)

c) An appeal order in respect of income tax has been passed for the assessment year 2006-07 wherein additions to the extent of Rs. 17.32 Lac has been confirmed. However, the order for appeal effect is pending for ascertainment of additional tax liability.

3. The debtors and creditors balances are subject to confirmation by the parties.

4. Raw material consumption includes only consumption of indigenous raw materials.

5. C.I.F. Value of imports and earning in foreign exchange Rs. Nil (previous year Rs. Nil)

Year Year

6. Expenditure in Foreign Currencies: 2008-09 (Rs.) 2007-08 (Rs.)

Travel Expenses 399,440/- Nil

7. Estimated amount of contracts remaining to be executed on Capital Accounts and not provided for (net of advance payment) NIL (Previous year Rs. NIL)

8. There were no dues outstanding to any Small Scale Industrial Undertaking to whom the Company owed a sum exceeding Rs.1,00,000/- and which is outstanding for more than 30 days as at 31st March, 2009.

9. Deposits include National Savings Certificates and Post Office Savings Deposit pledged with: (i) Commercial Tax Authorities Rs.10,000/- (Previous year Rs.10,000/-)

(ii) Mining Licensing Authorities Rs.5,000/- (Previous year Rs.5000/-)

10. Based on market value of the Companys investments as on 31.3.2009, there was no demunition in value of shares and hence no provision for the same has been made in the accounts.

11. Previous years figures have been re-grouped and re-classified wherever necessary to conform to current years classifications.