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

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

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            -