Notes to Accounts of Real Strips Ltd.

Mar 31, 2015

1. Rights, preference and restriction attached to Equity Shares

The company has only one class of equity shares having a face value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The proposed dividend recommended by the Board of Directors is subject to the approval of the Shareholders. In the event of liquidation of the company, the holder of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. (a) Term Loan from State Bank of India are secured by way of First charge on Fixed Assets of the company, movable and/or immovable, present or future situated at Survey No.244, 245 and 247 at : Village : Sari, Taluka : Sanand, District : Ahmedabad (Gujarat) and office situated at 401-402, "Florence" Opp.Ashram Road P.O., Ashram Road, Ahmedabad - 380 009 and Wind Mill situated at Ukhrala (Dist.Bhavnagar), Gujarat and further said loans are also secured by personal guarantees of some of the Directors of the Company.

(b) Corporate Loan from Union Bank of India is Secured by way of Second Charge on Fixed Assets of the company and personal guarantees of some of the Directors of the Company.

3. The company is contingently liable for the followings:-

(a) Bills discounted and reduced from debtors of Rs. 39.43 Lacs (Previous Year Rs. 474.35 Lacs).

(b) Letter of credit issued by the bank of Rs. 6.48 Lacs (Previous Year Rs. 1.79 Lacs )

(c) Bank Guarantee of Rs. 87.38 Lacs (Previous Year Rs. 87.38 Lacs )

(d) Estimated amount of contracts remaining to be executed on capital account and not provided are Rs. 30 Lacs (Previous Year Rs.306.00 Lacs)

(e) Disputed statutory Claims/levies in respect of Service tax / Excise for which the company has preferred appeal (including Interest and penalty) of Rs. 11.38 Lacs (Previous Year Rs. 11.38 Lacs) and in respect of Income Tax is Rs. 92.30 Lacs (Previous Year Rs. 0.90 Lacs).

4. As required by Accounting Standard -AS 18 "Related Parties Disclosures" issued by the Institute of Chartered Accountants of India, the details as identified by the Company on the basis of information with the company, are as follows:

(A) Particulars of Associates

Name of the Related Parties Nature of Relationship

(i) Garuda Overseas. Associate Firm

(ii) Raajratna Metal Industries Ltd. * Associate Company

(iii) Raajratna Ventures Pvt. Ltd. * Associate Company

*Ceases to be Associate company after the resignation from the Directorship by Managing Director Mr. Arvind D. Sanghvi with effect from 13/11/2014 and accordingly transactions up to 13/11/2014 with these associates companies have only been disclosed.

(B) Key Managerial Personnel

Name of the Related Parties Nature of Relationship

(i) Mr.A.K. Kataria Chairman

(ii) Mr.Ugamraj M. Hundia Joint Managing Director

(iii) Mr.Prakashraj S. Jain Joint Managing Director

(iv) Mr.Pukhraj S. Jain Director

(v) Mr.Chandresh V. Shah Director

(vi) Mr.Ashwin A. Kataria Director

(vii) Mr.Amol R. Dalal Director

(viii) Mr.Pawankumar R. Murarka Director

(ix) Mr. Ashish Shah Director

(x) Mr. Jitendra Mamtora Director

(xi) Ms. Nipa P. Shah (w.e.f. 30/03/2015) Additional Director

(xii) Mr. Deepak U. Hundia (Son of General Manager Mr.Ugamraj M. Hundia)

(xiii) Mr. Romitraj P. Jain (Son of General Manager(Marketing) Mr. Prakashraj S. Jain)

(xiv) Mr. Arvind D. Sanghvi * Managing Director

* Mr. Arvind D. Sanghvi has resigned from the post of Managing Director and also ceases to be a Director of the Company w.e.f. 13/11/2014. 5. The Company has capitalised finance cost of Rs. 53,13,574/-( Previous Year Rs. 60,56,471/- ). Out of which expenditure of Rs. 10,66,461/- has been allocated towards Building and Plant & Machinery and Balance Expenditure of Rs. 42,47,113/- has been included in capital work in progress.

6. (a) In the opinion of the Board of Directors,the current assets,loans and advances are approximately of the value stated,if realised in the ordinary course of the business. There is no contingent liabilty other than stated above and provisions for all known liabilities are adequate. Some of accounts of trade payables, trade receivables, loans & advances including squared up accounts and unsecured loan are subject to confirmation from the respective parties and necessary adjustments and/ or proper classification thereof, if any ,will be made on its reconciliation and/or settlement. The classification / grouping of items of the accounts are made by the management, on the basis of the available data with the company and which has been relied upon by the auditors.

(b) Trade Receivables include receivables of Rs. 291.27 Lacs (Previous Year - Rs. Nil) which are outstanding since long and management is of the view that the same is fully recoverable and therefore these are treated as good and no provision for it has been made.

7. The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current year presentation.

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Mar 31, 2013

Corporate Information

Real Strips Limited (the Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company is engaged in manufacturing of Cold Rolled Stainless Strips/coils. Its shares are listed on Bombay Stock Exchange in India.

1.1 The company is contingently liable for the followings:-

(a) Bills discounted and reduced from debtors of Rs. 302.83 Lacs (Previous Year Rs. 275.03 Lacs). (b) Letter of credit issued by the bank of Rs. 5.27 Lacs (Previous Year Rs. 2.91 Lacs)

(c) Bank Guarantee of Rs. 292.92 Lacs (Previous Year Rs. 232.76 Lacs )

(d) Estimated amount of contracts remaining to be executed on capital account and not provided are Rs. 10.00 Lacs (Previous Year Rs. Nil)

(e) Disputed statutory Claims/levies for which the company has preffered appeal : (including Interest and penalty) of Rs. 25.93 Lacs (Previous Year Rs. Nil) 2.30 Segment Reporting:

The Company is engaged in manufacturing of single product i.e.Cold Rolled Stainless Strips/coils, and does not have other reportable Segment identifiable in accordance with Accounting Standard (AS)-17,issued by the Institute of Chartered Accountants of India.

1.2 The Company has determined Pre-operative Expenditure (including borrowing cost) of Rs. 23,24,622/- (Previous Year Rs. 150,09,687/-) and the same have been allocated towards the respective fixed assets.

1.3 (a) In the opinion of the Board of Directors,the current assets,loans and advances are approximately of the value stated,if realised in the ordinary course of the business.There is no contingent liabilty other than stated above and provisions for all known liabilities are adequate. Some of accounts of trade payables, trade receivables and loans & advances including squared up accounts are subject to confirmation from the respective parties and necessary adjustments and/or proper classification thereof, if any, will be made on its reconciliation and/or settlement.

(b) In the opinion of the company, the doubtful trade receivables will be recovered and therefore, its provision has not been made.

(c) The company is in the process to fill the post of Company Secretary.

1.4 The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current year presentation.

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Mar 31, 2012

A Rights, preference and restriction attached to Equity Shares

The company has only one class of equity shares having a face value ofRs. 10/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pay dividends in Indian rupees. The proposed dividend recommended by the Board of Directors is subject to the approval of the Shareholders.

In the event of liquidation of the company, the holder of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

b There were no shares reserved at the year-end for issue under options and contracts / commitments for the sale of shares / disinvestment.

c Aggregate number of Bonus Shares issued, shares issued for consideration other than Cash and Shares Bought back during the Period of five Years immediately preceding the reporting date.

NIL

d The Company have calls in arrears / unpaid calls ofRs. 50000/- (P.Y 51500/-)and has not forfeited any shares at balance sheet date.

Notes: -

1) (a) Term Loan (Including Foreign Currency Term Loan) from State Bank of India are secured by way of First charge on Fixed

Assets of the company, movable and/or immovable, present or future situated at Survey No.244, 245 and 247 at: Village : Sari, Taluka : Sanand, District: Ahmedabac (Gujarat) and office situated at 401-402, "Florence" Opp.Ashram Road P.O., Ashram Road, Ahmedabad - 380 009 and Wind Mill situated at Ukhrala (Dist.Bhavnagar), Gujarat and further said loans are also secured by personal guarantees of some of the Directors of the Company.

(b) Corporate Loan from Union Bank of India is Secured by way of Second Charge on Fixed Assets of the company and personal guarantees of some of the Directors of the Company.

2) Hire purchase finance is secured by Hypothecation of Vehicles financed and personal guarantees of some of the Directors of the Company.

1) Working Capital facilities from Union Bank of India, State Bank of India and IDBI Bank Ltd. are secured by way hypothecation of Inventories, Book debts and personal guarantees of some of the Directors of the Company and further said loan is also secured by way of second charge on Fixed Assets of the Company.

As per Information available on Company's records, no amount was due to Micro Small and Medium Enterprises as defined under the MSME Act, 2006 and Hence disclosure relating to amounts unpaid as at the year end together with interest paid/payable under this Act and as required by Schedule VI of the Companies Act,1956 is not given.

* Excise Duty shown under expenditure represents the difference between excise duty on opening and closing stock of finished goods

# General Charges includes Office electricity Expense, Several Charges paid for services received and maintainance expenses. @ It includes lease rent paid for windmill.

Corporate Information

Real Strips Limited (the Company) is a public company domiciled in India and Incorporated under the provisions of the Companies Act, 1956.

3.1 The company is contingently liable for the followings:-

(a) Bills discounted and reduced from debtors of Rs. 275.03 Lacs (Previous YearRs. 41.55 Lacs).

(b) Letter of credit issued by the bank of Rs. 2.91 Lacs (Previous Year Rs. 633.85 Lacs )

(c) Bank Guarantee of Rs. 232.76 Lacs (Previous Year Rs. 42.74 Lacs)

3.2 Segment Reporting:

The Company is engaged in manufacturing of single product i.e.Cold Rolled Stainless Strips/coils, and does not have other reportable Segment identifiable in accordance with Accounting Standard (AS)-17,issued by the Institute of Chartered Accountants of India.

3.3 The Company has determined Pre-operative Expenditure (including borrowing cost) of 1 15,009,687/- (Previous Year Rs. NIL) and the same have been allocated towards the respective Fixed Assets.

3.4 (a) In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated, if realised in the ordinary course of the business. There is no contingent liability other than stated above and provisions for all known liabilities are adequate. Some of accounts of creditors, debtors and loans & advances including squared up accounts are subject to confirmation from the respective parties and necessary adjustments and/or proper classification thereof, if any, will be made on its reconciliation and/or settlement.

(b) The company is in the process to fill the post of Company Secretary.

(c) Any other accounting policy not specifically referred to are consistent with generally accepted accounting principles.

3.5 Till the year ended 31.03.2011 the Company was using pre-revised schedule VI to the Companies Act, 1956, for preparation and presentation of its financial statements. During the year ended 31.03.2012, the revised schedule IV notified under the Companies Act, 1956 has become applicable to the Company. The Company has reclassified previous year figures to conform to this year's classification. The adoption of revised schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it significantly impacts presentation and disclosures made in the financial statements, particularly presentation of balance sheet.

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Mar 31, 2010

1.(a) In the opinion of the Board of Directors,the current assets, loans and advances are approximately of the value stated,if realised in the ordinary course of the business.There is no contingent liabilty other than stated above and provisions for all known liabilities are adequate. Some of accounts of creditors, debtors and loans & advances including squared up accounts are subject to confirmation from the respective parties and necessary adjustments and/or proper classification thereof, if any, will be made on its reconciliation and/or settlement.

(b) The company is in the process to fill the post of Company Secretary.

(In absence of data of earlier year, Previous Year figures are not stated)

2. The company is contingently liable for the followings:- (a) Estimated amount of contracts remaining to be executed on capital account and not provided are Rs. 37.80 Lacs (Previous Year Rs.6.20 lacs)

(b) Bills discounted and reduced from debtors of Rs. 1363.89 Lacs (Previous Year Rs.834.35 Lacs).

(c) Letter of credit issued by the bank of Rs. 900.00 Lacs (Previous Year Rs. NIL )

(d) Bank Guarantee of Rs.42.74 Lacs (Previous Year Rs. NIL)

(e) Disputed statutory Claims/levies for which the company has preffered appeal in respect of(excluding interest leviable if any) : Income tax liability of Rs. NIL (Previous Year Rs 11.50 Lacs)

3. Related Parties Disclousures as indetified by the company & with whom transaction during the year has taken place :

(A) Particulars of Associates Name of the Related Parties Nature of Relationship

(i) Raajratna Metal Industries Ltd. Associate Company

(ii) Raajratna Stock Holdings Pvt.Ltd. Associate Company

(B) Key Management Personnel

Name of the Related Parties Nature of Relationship

(i) Mr.A.K. Kataria C hairman

(ii) Mr.Arvindkumar D. Sanghvi Managing Director

(iii) Mr.Ugamraj M. Hundia Joint Managing Director

(iv) Mr.Prakashraj S.Jain Joint Managing Director

(v) Mr.Babulal S. Jain Director

(vi) Mr.Chandresh V. Shah Director

(vii) Mr.Ashwin A. Kataria Director

(viii) Mr.Amol R. Dalal Director

(ix) Mr.Pawankumar R. Murarka Director

(x) Mr.Deepak U. Hundia General Manager

(xi) Mr. Romitraj P. Jain General Manager(Marketing)

4. Segment Reporting:

The Company is engaged in manufacturing of single product i.e.Cold Rolled Stainless Strips/coils, and does not have other reportable Segment identifiable in accodance with Accounting Standard (AS)-17,issued by the Institute of Chartered Accountants of India.

5. 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 amounts unpaid as at the year end together with interest paid/payable under this Act and as required by Schedule VI of the Companies Act,1956 have not been given.

6. Corresponding figures of the previous year have been regrouped and/or re-arranged wherever necessary to confirm to this years figures. Figures in brackets relates to previous year. Signature to the Schedule 1 to 15