Notes to Accounts of Vallabh Steels Ltd.

Mar 31, 2015

Note : 1 ADJUSTMENT RELATING TO FIXED ASSETS

Pursuant to the enachment of the Companies Act, 2013 the company has applied the estimated useful lives as specified in schedule II. Accordingly the unamortised carrying value is being depreciated/ amortised over the revised remaining useful lives. The written down value of fixed assets whose lives have expired as 1st April 2014 have been adjusted net of taxes in the profit and loss by 524.81 lacs.

Note : 2 PRESENTATION OF FINANCIAL STATEMENTS

Financial Statements and other presentational requirements are drawn in accordance with the Companies Act, 2013. Previous year's figures have been recasted/regroupted/ rearranged whereever considered necessary to make them comparable with current year's figures.

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Mar 31, 2014

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

1.1 Working Capital Loans from Punjab National Bank and State Bank of India are secured by hypothecation of entire present and future tangible current assets of the company and personally guaranteed by three directors of the company. It is further secured by charge on Fixed Assets of the company.

2.1 Based on the information available with the company regarding the coverage of its suppliers under the Micro, Small and Medium Enterpri -ses Development Act 2006, no amount was overdue to any party covered under the said Act.

Note : 2 PRESENTATION OF FINANCIAL STATEMENTS

Financial Statements are drawn in accordance with Schedule VI and other presentational requirements of the Companies Act, 1956. Previous year''s figures have been recasted/ regrouped/ rearranged whererever considered necessary to make them comparable with current year''s figures.

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Mar 31, 2013

Note : 1 SEGMENT REPORTING

The Company operates in only one segment viz Iron and Steel.

Note : 2 CONTINGENT LIABILITIES NOT PROVIDED FOR

Capital Contracts 12,99,543

Letters of Credit 25,79,17,896 24,36,20,035

Bank Guarantee 28,25,000 2,00,000

Note : 3 PRESENTATION OF FINANCIAL STATEMENTS

Financial Statements are drawn in accordance with Schedule VI and other presentational requirements of the Companies Act, 1956. Previous year''s figures have been recasted/ regrouped/ rearranged whererever considered necessary to make them comparable with current year''s figures.

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Mar 31, 2012

1.1 Working Capital borrowings are secured by hypothecation of entire present and future tangible assets of the company and personally guaranteed by three directors of the company.

2.1 Based on the information available with the company regarding the coverage of its suppliers under the Micro, Small and Medium Enterprises Development Act 2006, no amount was due to any party covered under the said Act.

2.2 Balances of creditors are subject to confirmation and reconciliation.

Note : 3 SEGMENT REPORTING

The Company operates in only one segment viz Iron and Steel.

Note : 4 CONTINGENT LIABILITIES NOT PROVIDED FOR

Capital contracts 13.00 9.12

Letters of Credit 2,436.20 2,979.78

Bank Guarantee 2.00 2.00

Note : 5 PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS

In compliance with the Ministry of Corporate Affairs Notification No F No 2/6/2008-C L-V dated 30th March 2011, the financial statements of the company for the year ended 31st Mar 2012 have been drawn up in accordance with the terms of the revised Schedule VI to the Companies Act. The adoption of the revised Schedule Vi does not impact the measurement and recognition principles followed for the preparation of financial statements. However, it has significant impact on the presentation of and disclosures made in the financial statements. The company has also recast the previous year's figures to meet the requirements of the revised Schedule VI.

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Mar 31, 2011

1. Contingent Liabilities not provided for:

a) Estimated amount of contracts remaining to be executed on capital account (net of advances) Rs. Nil (Previous year Rs. Nil).

b) Letter of Credits in favour of suppliers and others Rs. Nil (Previous year Rs. Nil).

c) Bank Guarantees in favour of suppliers and others Rs. 2 lacs (Previous year Rs. 35.85 lacs).

d) Corporate Guarantee on given on behalf of others Rs. 400 lacs (Previous year Rs. 900 lacs).

2. In response to the letters sent to the suppliers seeking to know the status of their coverage under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED Act) the Company has received replies from some of the suppliers. Based on these replies, there is no information that is required to be disclosed under the provisions of the said Act.

3. The balances of sundry debtors and sundry creditors are subject to confirmation.

4. In the opinion of the Board of Directors, the Current Assets and Loans and Advances have a value on realization in the ordinary course of business at least equal to the value at which they are stated in the foregoing Balance Sheet, unless stated otherwise.

Due to the inadequacy of profits for the year, the company has paid remuneration to its Managing Director in terms of notification GSR No 36(E) dated 16.01.2002. The remuneration is within the limits laid down in Schedule XIII to the Companies Act, 1956.

5. The company operates in only one segment: Iron & Steel.

6. The Income Tax and Sales Tax assessments of the Company have been completed upto accounting year 2006-07 and 2004-05 respectively.

7. Interest paid on working capital is net of interest received.

8. The Company has given guarantee to IDBI for a Term Loan of Rs. 4.00 crores (Outstanding Rs. 0.25 crores) given to Vardhman Industries Limited.

9. On the basis of information available with the Company and relied upon by the Auditors, no party falls under the definition of related party as defined in AS - 18 on "Related Party Disclosures" issued by ICAI.

* Quantity includes 35469 MT as job work production/sale (Previous Year 27617) and excludes 2764 MT (previous year 3757 MT) on account of inter unit transfer.

** Quantity includes 19200 MT transferred from Rolling Mill Division (Previous Year 20196 MT) for which value not considered.

*** Quantity includes 2467 MT transferred from C R Division to P T Mill (Previous year 2156 MT) for which value not considered.

10. Figures have been rounded off to the nearest Rupee and Metric Ton in case of amount and quantity respectively.

11. Previous year's figures have been regrouped / rearranged wherever considered necessary in order to make them look comparable with the current year's figures.

12. Annexures'A' to 'R' form an integral part of the Balance Sheet and Profit and Loss Account.

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Mar 31, 2010

1. CONTINGENT LIABILITIES NOT PROVIDED FOR :

(Rs. in Lacs)

As At As At

31.03.2010 31.03.2009

Bank Guarantee 35.85 61.62

2. In the opinion of the Board of Directors and to the best of their knowledge and belief, the value on realisation of loans, advances and current assets in the ordinary course of business will not be less than the amount at which these are stated in balance sheet.

3. Parties balances under Debtors, Creditors and Advances are subject to confirmation, reconcilation and adjustments, if any.

4. The Income Tax and Sales Tax assessments of the Company have been completed upto accounting year 2005-06 and 2004-05 respectively.

5. Interest on Working Capital is net of interest received.

6. Inter-unit transfers are made at market price and same have been excluded from sales. The opening and closing stock is partly comprised of the material so transferred. The mode of valuation referred at cost represents cost worked out by the unit seperately taking into account the price charged in the inter-unit transfer.

7. The Company has given guarantee to IDBI for a Term Loan of Rs. 9.00 crores (Outstanding Rs. 1.25 crores) given to another group Company Vardhman Industries Limited.

8. The Honble Punjab & Haryana High Court at Chandigarh has approved the Scheme of Arrangement for hiving off the Sponge Iron unit of the company and the effective date for the same is 01.03.2006. All the legal and procedural formalties related there to have been complied with.

9. Figures have been rounded off to the nearest Rupee and Metric To n in case of amount and quantity respectively.

10. Previous year figures have been regrouped/rearranged to make them comparable with those of Current Year.

11. In response to letters from existing suppliers with whom company deals regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006, the Company has received replies from some of the suppliers. Based on these replies, there is no information that has to be disclosed under the provisions of the above referred Act.

12. The Company operates in one Segment i.e. Iron & Steel.

13. Employee Benefits :

TheDisclosures in accordance with requirements of accounting standard 15 (Revised 2005) issued by the Institute of Chartered Accountants of India, employees benefits are provided below :

a) Defined Contribution Plans

The Company has recognised Rs.29,97,847/- (Previous Year Rs.29,53,031/-) towards post employment defined contribution plans comprising of Provident Fund, Employee State Insurance Corporation and other funds debited in the profit and loss account.

14. On the basis of information available with the Company and relied upon by the Auditors, no party falls under the definition of related party as defined in AS - 18 on "Related Party Disclosures" issued by ICAI.

15. Annexures A to S form an integral part of the Balance Sheet and Profit and Loss Account.