Notes to Accounts of Rathi Steel & Power Ltd.

Mar 31, 2023

1. COMMITMENTS:

Estimated amount of Contracts remaining to be executed on capital account-Rs. NIL (Rs. NIL)

2. CONTINGENT LIABILITIES:

A.No provision has been made for:

a. Outstanding effective Bank Guarantees and Counter Guarantees given by the Company Rs.40,17,112/- (Rs.40,17,112/-).

b. Outstanding Letter of Credit Rs. -NIL- (Rs. NIL)

c. VAT / Sales Tax liability for various years in respect of which either the Company or the department has filed appeals with higher authority amounting to Rs.45,99,27,312/-. Most of the demands have been stayed by concerned authorities and the Company is Confident to get relief and chances of any liability is very remote.

d. Excise/Service tax cases pending with various statutory authorities being disputed principal amount Rs.7,67,29,699/- (Rs. 7,98,99,193/-). The Company is Confident to get relief and chances of any liability is very remote.

e. Civil/Recovery suits and Labour cases pending against the Company not acknowledged as debt —Rs. 16,00,94,903/- (Rs. 11,57,35,659/-).

f. As per Sales Agreement between GAIL and Company for Gas, GAIL has been raising demand in relation to annual take or pay deficiency for the period prior to 2013 which Company since has been disputed by the Company on numerous occasions. After representation by the company, a Settlement Advisory Committee (“SAC”) has been appointed under the GAIL Conciliation Rules 2010 with mutual consent of both parties to settle the dispute. The company is quite confident to get the dispute settled, and liability, if any, arises will not have material effect on the financial position of the Company.

B.Income Tax and Sales Tax Assessments:

a) Assessing officer (TDS has imposed penalty and late fees towards delay in TDS deposited and late fees for issuance of relevant forms during FY 2013-14 and raised demand of Rs. 1184600/-.

b) Addition of Rs.5,65,23,941/ was also made by AO in AY 2017-18 of Cash credits including cash deposited during demonetization period and has raised demand of Rs.5,78,26,377/-. However, the said demand is stayed by the concerned authority.

Company has disputed these orders and filed Appeals before the appellate authorities. The company is quite confident to get the additions dismissed.

c) Additional liability, if any, in respect of pending assessments / appeals of Income Tax, compounding application, would be provided for on completion of assessments / disposal of appeals.

d) Additional demand, if any, in respect of pending assessment of Sales Tax / VAT / Entry Tax would be known only on completion of the assessments.

1.1 Segmental Reporting:

The business activity of the company falls within one broad segment viz Steel. Hence the disclosure requirement of Accounting Standard (Ind-AS 108) of “Segment Reporting” issued by the Institute of Chartered Accounts of India is not given.

3. FOREIGN CURRENCY TRANSACTIONS:

Expenditure in Foreign Currency:

a. Raw material purchase (CIF) Rs.26,45,82,873/ (Rs. 8,75,90,320/-)

b. Capital Goods (CIF) - Rs. NIL (Rs. 4,15,961/-)

c. Stores Purchased (CIF)- Rs.4,05,14999/- (Rs.68,57,504/-)

Earning in Foreign Currency (FOB):

Finished goods sale Rs. Nil (Rs. Nil).

Details of Consumption of Imported and Indigenous items Rs. in lacs
Particulars	Imported				Indigenous
	2022-23	%	2021-22	%	2022-23	%	2021-22	%
Materials	2645.83	4.34%	875.90	1.94%	58307.95	95.66%	44264.10	98.06%
Stores and Spares	405.15	12.50%	68.58	5.16%	2837.45	87.50%	1260.68	94.84%

4. Payment to Auditors:

a. Audit Fee - Rs.4,00,000/- (Rs.4,00,000).

b. Fee for Limited Review - Rs. NIL (Rs. NIL).

c. Out of Pocket Expenses - Rs. NIL (Rs. NIL).

d. Certification Fees - Rs.11000/- (Rs. 65000).

5. Sundry debtors, advances, creditors & other liabilities include inter parties transfers and are subject to confirmation and consequent adjustments. In the opinion of the Board of Directors, the current assets and loans & advances except doubtful in nature would realize at least the amount at which these are stated in the Balance Sheet. For doubtful debts, the Board of Directors is very much hopeful for their recovery. Therefore, no provision during the year has been made.

6. Interest / Penalty, if any on delayed payments of statutory dues (Excise, GST, PF/ESI etc.) will be provided for as and when ascertained / determined by the concerned authority.

7. The MSME status of creditors is not known to the Company, hence information is not given.

8. Dunng the previous years m order to optimize the Ghaziabad unit operation, Company did job work for other parties and re-started own production in Steel Melting Shop during the year under report for part of the year.

9. Restructuring of Secured Debts: During the period under report Company has entered into debt restructuring agreement with M/s Assets Care and Restructuring Enterprises Ltd (ACRE), effective from 01-04-2022, m respect of debt assigned by JM Financial Asset Reconstruction Company Private Limited (The Karur Vysya Bank Ltd).

The Company has also concluded the OTS (one-time settlement) entered into with Union Bank (erstwhile Corporation Bank Ltd), by adhering and paying the settled amount in full. Further, the company has entered into a OTS (one-time settlement) with Canara Bank and is confident of concluding / implementing the same as per mutually agreed terms with the bank. The said settlement has been made keeping in mind, the interest of all stakeholders, without admission of any liability.

The effect of reduction of such liabilities are represented in the respective financial statements under the head Reserves and Surplus, extra-ordinary item in the Profit and loss account. To that extent, financial statements for the current / previous year has been recasted, regrouped and rearranged wherever necessary.

The restructured portion of loan are shown as per the terms of restructuring and amount payable within one year is classified as current liabilities.

In case debt restructuring with respect to assigned loans to M/s Assets Care and Restructuring Enterprises Ltd (ACRE) and Canara Bank (OTS) agreement is terminated in accordance with terms of agreement / OTS, the Lenders shall have a right to revoke the relief and concessions provided in the Restructured / settlement agreements / sanction. Contingent liability in case of such default has not been provided for as the Company is confident of meeting its commitment as per restructuring agreement.

10. Earnings Per Share (EPS):

Basic EPS is calculated by dividing the profit or loss attributable to equity shareholders of the Group by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share are computed by dividing the profit after tax as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on conversion of all dilutive potential equity shares.

Earnings per Share (EPS) — the numerators and denominators used to calculate earnings per share: -
Particulars	Year Ended on 31.03.2023	Year Ended on 31.03.2022
Profit/(Loss) attributable to the Equity Shareholders (Rs.) (A)	872228662	(364885686)
Profit/(Loss) Cash attributable to the Equity Shareholders (Rs.) (B)	957969004	(230241849)
Weighted average number of Equity Shares Outstanding during the year (C)	31308111	31308111
Nominal Value of Share (Rs.)	10	10
Earnings Per Share (Rs.) (A)/(C )	27.86	(11.65)
Earnings Per Share (Cash) (Rs.) (B)/(C)	30.60	(7.35)

11. The company has not incurred loss during the year ended on March 31^st, 2023, however as on that date the company’s current liabilities exceed its current assets by Rs. 74,64,18,701.00 and company’s net worth has been fully eroded. Company is making all efforts for settlement/restructurmg of debts (three such agreement entered in current year refer point no 9 above) as well as to maximise the operating levels/mimmize the costs, and there has been steady improvement in reference to last couple of years. Further the Company is exploring various refinancing options with prospective Lenders / Investors.

Considering the above measures and efforts being made by the management for long term revival of debt, these financial statements have been prepared on a going concern basis on the strength of continued support of the promoters, bankers / other lenders and signs of recovery in general economic scenario.

12. Related Party Disclosure:

In accordance with Accounting Standard (Ind-AS 24) on related party disclosure, where control exists and where key management personnel are able to exercise significant influence and, where transactions have taken place during the year, along with description of relationship identified, are given below:

a) Individuals

b) Key Managerial Personnel Shn P.N. Varshney

Smt. Shobhita Singh Shri Rakesh Kumar

19. Surety given for others, amount not ascertained as company has not maintained any such records.

20. Company have not paid any dividend on cumulative Redeemable preference shares considering the debt restructuring obligations. The Company propose to pay the same on or before redemption subject to approval.

21. Company has revised its Income Tax Returns for previous financial year and preceding previous year to comply with law and avoid any unforeseen litigation.

22. The amount of Stores consumed during the financial year includes the value of stores issued for repair and maintenance.

23. Previous year figures have been regrouped or recast wherever necessary.

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Mar 31, 2015

1. COMPANY INFORMATION

Rathi Steel And Power Limited (formerly Rathi Udyog Limited) (the Company) is a public limited company incorporated in 1971 and engaged in the business of manufacturing and sale of Steel and Steel related products.

2. COMMITMENTS:

Estimated amount of Contracts remaining to be executed on capital account- Rs. NIL (Rs. NIL lakhs).

3. CONTINGENT LIABILITIES:

A. No provision has been made for:

a. Outstanding Bank Guarantees and Counter Guarantees given by the Company Rs.5,05,17,112/- (Rs.5,86,07,112/-).

b. Outstanding Letter of Credit Rs. 6,94,70,000/- (Rs.2,70,00,000/-)

c. Sales tax Liability in respect of goods impounded- amount unascertained (The Company has deposited Rs.12,39,019/- as security with the dept.)

d. VAT/Sales Tax liability for various years in respect of which either the Company or the department has filed appeals with higher authority in respect of various years Rs.40,66,56,736/-.The Company is Confident to get relief and chances of any liability is very remote.

e. Excise cases pending with various statutory authorities being disputed Rs.29,12,69,588/-.The Company is Confident to get relief and chances of any liability is very remote.

f. Civil suits and Labour cases pending against the Company not acknowledged as debts -Rs.3,73,47,274/- (Rs.3,89,54,461/-).

g. The layoff at Orissa unit has been rejected by the competent Labour Authority and raised compensation of Rs.4.65 Crores .The Company has contested the same in the Court.

h. As per Gas sales Agreement between GAIL and Company, total annual take or pay deficiency for the year 2014 works out to Rs.27.01 Crores and GAIL has raised a demand of Rs.10.33 Crores which has been disputed by the Company.

i. WESCO utility, Orissa has raised a demand of Rs.1.24 Crores towards electricity bills charges for the period up to October 2014,which has been disputed by the Company.

B. Surety given to sales tax dept. for others. The Company has not considered these as contingent liability as chances of out flow of resources are remote as Company has a right to claim the same from other party.

C. Income Tax and Sales Tax Assessments:

a. Income tax assessments have been completed upto assessment year 2012-13.Additional liability, if any, in respect of pending assessments, would be provided for on completion of assessments.

b. Additional demand, if any, in respect of pending assessment of Sales Tax/ VAT/Entry Taxwould be known only on completion of the assessments.

c. A search was conducted at the Company's premises by the Income Tax Department in the month of January 2015. Additional liability on account of the same would be provided for once finalized.

4. Name of the Company has been changed from Rathi Udyog Limited to Rathi Steel And Power Limited w.e.f.20.03.2008.

5. Post approval of Corporate Debt Restructuring scheme, Company has since implemented the same in the books of account to the extent implemented by the member banks and provision for interest has been made to the extent made by banks.

6. Supreme Court in the month of September 2014 has cancelled the coal block allotted to the Company. A charge sheet was also filed against the Company and its officials. Court in its order dated 19.05.2015 have framed charges against Company under section 120-B IPC and under section 420 r/w Section120 B IPC. As per the directions of Supreme Court Enforcement Directorate is also making investigations in connection with irregularity in Coal Block Allotment.

7. During the year there has been an increase in Depreciation due to charging of depreciation for Orissa unit assets which was not charged in the last year.

8. During the year company has charged an expense of Rs. 7.09 Crores to Profit and Loss Account as extra ordinary items. The same pertains to expenses incurred for development of Coal Block allotted to the Company, the same was cancelled by Hon'ble Supreme Court of India

9. FOREIGN CURRENCY TRANSACTIONS:

Expenditure in Foreign Currency:

a. Raw material purchase (CIF) Rs.397777952/- (Rs.114620206/-)

b. Capital Goods (CIF) - Rs.5200000/-(Rs.5344546/-).

c. Stores Purchased(CIF)-Rs.6703760/-(Nil)

Earning in Foreign Currency (FOB):

Finished goods sale Rs. Nil (Rs. Nil)

10. Payment to auditors:

a. Audit Fee - Rs.4,00,000 (Rs.4,00,000).

b. Fee for Limited Review - Rs.1,00,000

(Rs.1,00,000).

c. Out of Pocket Expenses-Rs.15,000 (Rs.15000).

11. Sundry debtors, advances, creditors & other liabilities includes inter parties transfers and are subject to confirmation and consequent adjustments. In the opinion of the Board of Directors, the current assets and loans & advances except doubtful in nature would realize at least

the amount at which these are stated in the Balance Sheet. For doubtful debts, the Board of Directors isvery much hopeful for their recovery. Therefore, No provision has been made.

12. Sundry Creditors includes amount payable to MSME amounting to Rs.28.53 lacs.The parties have since filed the cases in the court and claimed interest in terms of the MSME Act alongwith Principal amount.

13. Earning Per Share (EPS):

Earning Per Share (EPS) - the numerators and denominators used to calculate earning per share:-

14. Related Party Disclosure:

In accordance with Accounting Standard (AS-18) on related party disclosure, where control exists and where key management personnel are able to exercise significant influence and, where transactions have taken place during the year, alongwith description of relationship identified, are given below:

a) Individuals

1. Shri Udit Rathi

2. Smt. Sonal Rathi

3. Smt. Divya Rathi

b) Key Managerial Personnel Shri Pradeep Kumar Rathi Shri P N Varshney

15. Segmental Reporting:

The business activity of the company falls within one broad segment viz Steel. Hence the disclosure requirement of Accounting Standard-17 of "Segment Reporting" issued by the Institute of Chartered Accounts of India is not given.

16. Previous year figures have been regrouped or recast wherever necessary.

c) The following transactions were carried out with related parties in the ordinary course of business:

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Mar 31, 2014

NOTE NO.1

I. COMPANY INFORMATION

Rathi Steel And Power Limited (formerly Rathi Udyog Limited) (the Company) is a public limited company incorporated in 1971 and engaged in the business of manufacturing and sale of Steel and Steel related products.

1. COMMITMENTS:

Estimated amount of Contracts remaining to be executed on capital account- Rs. NIL (Rs. NIL lakhs).

2. CONTINGENT LIABILITIES:

A. No provision has been made for:

a. Outstanding Bank Guarantees and Counter Guarantees given by the Company Rs. 58607112/- (Rs.12,81,27,112).

b. Outstanding Letter of Credit Rs. 2,70,00,000 (Rs.2,70,00,000).

c. Sales tax Liability in respect of goods impounded- amount unascertained (The Company has deposited Rs.1239019/- as security with the dept.)

d. Civil suits and Labour cases pending against the

Company not acknowledged as debts - Rs. 38954461/- (14040870/-).

B. (i) Show Cause notices issued by various Government

department are not considered as contingent liability.

(ii) The Company has not considered those disputes/ demands/claims as contingent liability for which the chances of outflow of resources are remote.

C. Surety given to sales tax dept. for others. The Company has not considered these as contingent liability as chances of out fow of resources are remote as Company has a right to claim the same from other party.

D. Income Tax and Sales Tax Assessments:

a. Income tax assessments have been completed upto assessment year 2011-12. Additional liability, if any, in respect of pending assessments, would be provided for on completion of assessments.

b. Additional demand, if any, in respect of pending assessment of Sales Tax/ VAT/Entry Tax would be known only on completion of the assessments.

3. Name of the Company has been changed from Rathi Udyog Limited to Rathi Steel And Power Limited w.e.f.20.03.2008.

4. During the year, the Company''s Corporate Debt Restructuring Package (CDR Package) has been approved by the CDR Cell. Under the CDR Package, the Company''s debts were restructured/rescheduled and additional credit facilities have been sanctioned as set out in the Letter of Approval dated 24 September 2013.Accordingly Master Restructuring Agreement has been executed on 20th December 2013 between the Company and concerned lenders. The CDR Package includes reliefs / measures such as reduction in interest rates, funding of interest, rearrangement of securities etc. The Company has since implemented the CDR approved restructuring scheme in its books of account and bank accounts related to restructuring scheme are under reconciliation.

6. Payment to auditors:

a. Audit Fee – Rs.4,00,000 (Rs.4,00,000).

b. Fee for Limited Review – Rs.1,00,000 (Rs.1,00,000).

c. Out of Pocket Expenses-Rs.15,000 (Rs.15000).

7. Sundry debtors, advances, creditors & other liabilities includes inter parties transfers and are subject to confirmation and consequent adjustments. In the opinion of the Board of Directors, the current assets and loans & advances except doubtful in nature would realize at least the amount at which these are stated in the Balance Sheet. For doubtful debts , the board of directors are very much hopeful for their recovery. Therefore, No provision has been made.

8. Based on the information available with the Company, there are no over dues to micro and small enterprises under the Micro, Small and Medium Enterprises as on 31st March 2014 due for a period of more than 45 days, Accordingly no interest was paid/is payable in terms of the said Act during the year under review.

9. Earning Per Share (EPS):

Earning Per Share (EPS) – the numerators and denominators used to calculate earning per share:-

10. Related Party Disclosure:

In accordance with Accounting Standard (AS-18) on related party disclosure, where control exists and where key management personnel are able to exercise significant infuence and, where transactions have taken place during the year, along with description of relationship identified, are given below:

a) Individuals

1. Shri Udit Rathi

2. Smt. Sonal Rathi

3. Smt. Divya Rathi

b) Key Managerial Personnel Shri Pradeep Kumar Rathi Shri P N Varshney

11. Segmental Reporting:

The business activity of the company falls within one broad segment viz Steel. Hence the disclosure requirement of Accounting Standard-17 of "Segment Reporting" issued by the Institute of Chartered Accounts of India is not given.

12. Previous year figures have been regrouped or recast wherever necessary.

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Mar 31, 2013

1. COMPANY INFORMATION

Rathi Steel And Power Limited(formerly Rathi Udyog Limited) (the Company) is a public limited company incorporated in 1971 and engaged in the business of manufacturing and sale of Steel and Steel related products.

2. COMMITMENTS:

Estimated amount of Contracts remaining to be executed on capital account-Rs.NIL (Rs.1243.00 lakhs).

3. CONTINGENT LIABILITIES:

A. No provision has been made for:

a. Outstanding Bank Guarantees and Counter Guarantees given by the Company Rs. 12,81,27,112(Rs.7,03,98,000).

b. Outstanding Letter of Credit Rs. 2,70,00,000 (Rs.29,37,59,771).

c. Sales tax Liability in respect of goods impounded- amount unascertained (The Company has deposited Rs.1239019/- as security with the dept.)

d. Civil suits and Labour cases pending against the Company not acknowledged as debts -Rs.14040870/-.

B. (i) Show Cause notices issued by various Government department are not considered as contingent liability.

(ii) The Company has not considered those disputes/ demands/claims as contingent liability for which the chances of outfow of resources are remote.

C. Surety given to sales tax dept. for others. The Company has not considered these as contingent liability as chances of out fow of resources are remote as Company has a right to claim the same from other party.

D. Income Tax and Sales Tax Assessments:

a. Income tax assessments have been completed up to assessment year 2010-11. Additional liability, if any, in respect of pending assessments, would be provided for on completion of assessments.

b. Additional demand, if any, in respect of pending assessment of Sales Tax/ VAT would be known only on completion of the assessments.

4. Name of the Company has been changed from Rathi Udyog Limited to Rathi Steel And Power Limited w.e.f. 20.03.2008.

5. Prior period expenses have been debited to respective heads.

6. Unsupported expenditure amounting to Rs. 900000/-

7. The Company has incurred a net loss of Rs.110.05 crores during the year ended 31 March 2013 and as of that date the Company''s current liabilities exceeded its current assets by Rs. 129.60 crores. The Company has approached the Lenders to restructure its debt profle to convert majority of their short-term loans to long-term loans, which has already been agreed in principle by all the banks and the approval is under process. The Company has prepared the fnancial statements on the basis of going concern assumption.

8. FOREIGN CURRENCY TRANSACTIONS:

Expenditure in Foreign Currency:

a. Raw material purchase (CIF) Rs.42,90,10,186 (Rs.52,06,29,787).

b. Store Purchase (CIF) – Rs. Nil (Rs.Nil).

c. Capital Goods (CIF) – Rs.1,14,40,098(Rs.89,89,163).

Earning in Foreign Currency (FOB):

Finished goods sale Rs. Nil (Rs. Nil).

8. Payment to auditors:

a. Audit Fee – Rs.4,00,000 (Rs.4,00,000).

b. Fee for Limited Review – Rs.1,00,000 (Rs.20,000).

c. Out of Pocket Expenses-Rs.15,000 (Rs.15000).

9. Sundry debtors, advances, creditors & other liabilities includes inter parties transfers and are subject to confrmation and consequent adjustments. In the opinion of the Board of Directors, the current assets and loans & advances except doubtful in nature would realize at least the amount at which these are stated in the Balance Sheet. For doubtful debts , the board of directors are very much hopeful for their recovery. Therefore, No provision has been made.

10. Based on the information available with the Company, there are no over dues to micro and small enterprises under the Micro, Small and Medium Enterprises as on 31st March 2013 due for a period of more than 45 days, Accordingly no interest was paid/is payable in terms of the said Act during the year under review.

11. Earning Per Share (EPS):

Earning Per Share (EPS) – the numerators and denominators used to calculate earning per share:-

12. Related Party Disclosure:

In accordance with Accounting Standard (AS-18) on related party disclosure, where control exists and where key management personnel are able to exercise signifcant infuence and, where transactions have taken place during the year, along with description of relationship identifed, are given below:

a) Individuals

1. Shri Udit Rathi

2. Shri Shrivardhan Rathi

3. Smt.Sonal Rathi

4. Smt.Divya Rathi

b) Key Managerial Personnel Shri Pradeep Kumar Rathi Shri P N Varshney

13. Segmental Reporting:

The business activity of the company falls within one broad segment viz Steel. Hence the disclosure requirement of Accounting Standard-17 of "Segment Reporting" issued by the Institute of Chartered Accounts of India is not given.

14. Previous year fgures have been regrouped or recast wherever necessary.

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Mar 31, 2012

1. COMPANY INFORMATION

Rathi Steel And Power Limited(formerly Rathi Udyog Limited) (the Company) is a public limited company incorporated in 1971 and engaged in the business of manufacturing and sale of Steel and Steel related products.

2. CONTINGENT LIABILITIES:

No provision has been made for:

a. Outstanding Bank Guarantees and Counter Guarantees given by the Company Rs.703,98,000 (Rs.713,35,112).

b. Outstanding LetterofCreditRs.29,37,59,771 (Rs. 14,87,50,737).

c. Estimated amount of contracts remaining to be executed on capital account -Rs. 1243.00 lakhs (Rs.465.80 lakhs).

d. Sales tax Liability in respect of goods impounded-amount unascertained (The Company has deposited Rs.562800/- as security with the dept.)

e. Civil suits and Labour cases pending against the Company-Rs.9134620.00

3. Income Tax and Sales Tax Assessments:

a) Income tax assessments have been completed up to assessment year 2009-10. Additional liability, if any, in respect of pending assessments, would be provided for on completion of assessments.

b) Additional demand, if any, in respect of pending assessment of Sales Tax would be known only on completion of the assessment.

4. Name of the Company has been changed from Rathi Udyog Limited to Rathi Steel And Power Limited w.e.f. 20.03.2008.

5. FOREIGN CURRENCY TRANSACTIONS:

Expenditure in Foreign Currency:

a. Raw material purchase (CIF) Rs.52,06,29,787 (Rs.27,79,00,536).

b. Store Purchase (CIF) - Rs. Nil (Rs. 16,59,556).

c. Capital Goods (CIF)-Rs.89,89,163 (Rs.53,08,667).

Earning in Foreign Currency(FOB):

Finished goods sale Rs. Nil (Rs. Nil).

6. Payment to auditors:

a. Audit Fee - Rs.4,00,000 (Rs.4,00,000).

b. Fee for Limited Review - Rs.20,000 (Rs.20,000).

c. Out of Pocket Expenses-Rs. 15,000 (Rs. 15000).

7. Sundry debtors, advances, creditors & other liabilities includes inter parties transfers and are subject to confirmation and consequent adjustments. In the opinion of the Board of Directors, the current assets and loans & advances except doubtful in nature would realize at least the amount at which these are stated in the Balance Sheet.

8. Based on the information available with the Company, there are no over dues to micro and small enterprises under the Micro, Small and Medium Enterprises as on 31st March 2012 due for a period of more than 45 days, accordingly no interest was paid/is payable in terms of the said Act during the year under review.

9. Earnings Per Share (EPS):

Earnings Per Share (EPS) - the numerators and denominators used to calculate earnings per share:-

10. Related Party Disclosure:

In accordance with Accounting Standard (AS-18) on related party disclosure, where control exists and where key management personnel are able to exercise significant influence and, where transactions have taken place during the year, along with description of relationship identified, are given below:

a) Individuals

1. Shri Udit Rathi

2. Shri Shrivardhan Rathi

3. Smt. Sonal Rathi

4. Smt. Divya Rathi

b) Key Managerial Personnel

Shri Pradeep Kumar Rathi Shri P N Varshney

11. Segmental Reporting:

The business activity of the company falls within one broad segment viz Steel. Hence the disclosure requirement of Accounting Standard- 17 of "Segment Reporting" issued by the Institute of Chartered Accounts of India is not given.

12. Previous year figures have been regrouped or recast wherever necessary.

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Mar 31, 2011

1. CONTINGENT LIABILITIES:

No provision has been made for:

a. Outstanding Bank Guarantees and Counter Guarantees given by the Company Rs.713,35,112 (Rs.697,55,112).

b. Outstanding Letter of Credit Rs.14,87,50,737 (Rs.6,98,56,609).

c. Estimated amount of contracts remaining to be executed on capital account – Rs.465.80 lakh (net of advance) (Rs.564.00 lakh).

Income Tax and Sales Tax Assessments:

a. Income tax assessments have been completed upto assessment year 2008-09. Additional liability, if any, in respect of pending assessments, would be provided for on completion of assessments.

b. Additional demand, if any, in respect of pending assessments of Sales Tax would be known only on completion of the assessments.

2. Name of the Company has been changed from Rathi Udyog Limited to Rathi Steel And Power Limited w.e.f. 20.03.2008.

Earning in Foreign Currency(FOB):

Finished goods sale Rs. Nil (Rs. Nil).

4. Payment to auditors:

a. Audit Fee – Rs.4,00,000 (Rs.4,00,000).

b. Fee for Limited Review – Rs.20,000 (Rs.20,000).

c. Out of Pocket Expenses – Rs.15,000 (Rs.15,000).

3. Amount due for repayment within one year on term loans Rs.2027.52 lacs (Rs.2637.17 lacs).

4. Sundry debtors, advances, creditors & other liabilities includes inter parties transfers and debit/credit notes are subject to confrmation and consequent adjustments. In the opinion of the Board of Directors, the current assets and loans & advances except doubtful in nature would realize at least the amount at which these are stated in the Balance Sheet.

5. Based on the information available with the Company, there are no over dues to micro and small enterprises under the Micro, Small and Medium Enterprises Development Act. Payments are as per agreed terms.

6. Related Party Disclosure:

In accordance with Accounting Standard (AS-18) on related party disclosure, where control exists and where key management personnel are able to exercise significant influence and, where transactions have taken place during the year, along with description of relationship identified, are given below:

a) Individuals

1. Shri Udit Rathi

2. Shri Shrivardhan Rathi

b) Key Managerial Personnel Shri Pradeep Rathi

Shri P N Varshney

7. Segmental Reporting:

The business activity of the company falls within one broad segment viz Steel. Hence the disclosure requirement of Accounting Standard- 17 of "Segment Reporting" issued by the Institute of Chartered Accounts of India is not given.

8. Previous year figures have been regrouped or recast wherever necessary.

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Mar 31, 2010

1. CONTINGENT LIABILITIES:

i. No provision has been made for:

a. Outstanding Bank Guarantees and Counter Guar- antees given by the Company Rs.6,97,55,112/- (Rs.334,92,787/-).

b. Outstanding Letter of Credit Rs.6,98,56,609/- (Rs.18,82,23,308/-).

c. Estimated amount of contracts remaining to be ex- ecuted on capital account – Rs.564.00 lakh (net of advance) (Rs.270.60 lakh).

ii. Income Tax and Sales Tax Assessments:

a) Income tax assessments have been completed upto assessment year 2008-09. Additional liability, if any, in respect of pending assessments, would be provided for on completion of assessments.

b) Additional demand, if any, in respect of pending assessment of Sales Tax would be known only on completion of the assessment.

2. Stores consumed include stores issued for repair and maintenance.

3. Name of the Company has been changed from Rathi Udyog Limited to Rathi Steel And Power Limited w.e.f. 20.03.2008.

4. FOREIGN CURRENCY TRANSACTIONS:

Expenditure in Foreign Currency:

a. Raw material purchase (CIF) Rs.10,74,38,043

(Rs,13,58,15,262).

b. Store Purchase (CIF) - Rs.7,95,474

(Rs.36,20,097).

c. Capital Goods (CIF) - Rs.2,19,992

(Rs.46,58,272).

Earning in Foreign Currency(FOB):

Finished goods sale Rs. Nil (Rs.9,88,32,052).

5. Payment to auditors:

a. Audit Fee - Rs.4,00,000 (Rs.4,00,000).

b. Fee for Limited Review - Rs.20,000 (Rs.20,000).

c. Out of Pocket Expenses - Rs.15,000 (Rs.15,000).

6. Amount due for repayment within one year on term loans Rs.2637.17 lacs (Rs.1167.60 lacs).

7. Sundry debtors, advances, creditors & other liabilities includes inter parties transfers and are subject to confirmation and consequent adjustments. In the opinion of the Board of Directors, the current assets and loans & advances except doubtful in nature would realize at least the amount at which these are stated in the Balance Sheet.

8. Based on the information available with the Company, there are no over dues to micro and small enterprises under the Micro, Small and Medium Enterprises Development Act. Payments are as per agreed terms.

9. Related Party Disclosure:

In accordance with Accounting Standard (AS-18) on related party disclosure, where control exists and where key management personnel are able to exercise significant influence and, where transactions have taken place during the year, along with description of relationship identified, are given below:

a) Individuals

1. Shri Saurabh Rathi

2. Shri Udit Rathi

3. Shri Shrivardhan Rathi

b) Key Managerial Personnel

Shri Pradeep Rathi

Shri P N Varshney

c) Associates

Rathi Iron and Steel Industries Ltd.

d) The following transactions were carried out with related parties in the ordinary course of business:

10. Segmental Reporting:

The business activity of the company falls within one broad segment viz Steel. Hence the disclosure requirement of Accounting Standard-17 of "Segment Reporting" issued by the Institute of Chartered Accounts of India is not given.