1.  Details of utilization of funds received on Qualified Institutions
 Placement (QIP) Money:
 
 On 19th December, 2006, consequent to Qualified Institutions Placement
 (QIP), the Company issued and allotted 1020408 Equity Shares of Rs. 10/-
 each at a premium of Rs. 1215/- per share through Qualified Institutions
 Placement under Chapter XIII-A of SEBI (Disclosure & Investor
 Protection) Guidelines 2000 to Qualified Institutional Buyers (QIB).
 
 2. The Company has not received information from the Suppliers
 regarding their status under The Micro, Small & Medium Enterprises
 Development Act, 2006. Hence, disclosures, if any relating to amounts
 unpaid as at the balance sheet date together with interest paid or
 payable as per the requirement under the said Act, have not been made.
 
 Defined Benefit Plan:
 
 The employees'' gratuity fund scheme managed by a Trust is a defined
 benefit plan. The present value of obligation is determined based on
 actuarial valuation using the Projected Unit Credit Method, which
 recognizes each period of service as giving rise to additional unit of
 employee benefit entitlement and measures each unit separately to build
 up the final obligation. The obligation for leave encashment is
 recognized in the same manner as gratuity.
 
 The estimates of rate of escalation in salary considered in actuarial
 valuation, take into account inflation, seniority, promotion and other
 relevant factors including supply and demand in the employment market.
 The above information is certified by the actuary.
 
 The expected rate of return on plan assets is determined considering
 several applicable factors, mainly the composition of plan assets held,
 assessed risks, historical results of return on plan assets and the
 Company''s policy for plan assets management.
 
 3. Based on the guiding principles given in Accounting Standard on
 Segment Reporting (AS-17) issued by the Institute of Chartered
 Accountants of India, the Company operates mainly in manufacturing of
 High Chrome Mill Internals (Castings) and all other activities are
 incidental thereto, which have similar risk and return, accordingly,
 there are no separate reportable Segment as far as Primary Segment is
 concerned.
 
 4.  Related party disclosures under Accounting Standard 18: 
 
 (i ) Subsidiaries :
 
 1 Welcast Steels Limited, Bangalore
 
 2 DCPL Foundries Pvt.Ltd., Trichy
 
 3 Vega Industries (Middle East) FZE, U.A.E.
 
 4 Vega Industries Ltd., U.K.
 
 5 Vega Industries Ltd., U.S.A.
 
 6 Vega Steel Industries (RSA) PTY Ltd., South Africa
 
 7 Wuxi Weigejia Trade Co. Ltd., China
 
 (ii) Relatives of Key Management Personnel :
 
 1 Hotel Gulmarg
 
 2 L.D.M. X-ray Clinic
 
 3 K.M.Shah Nursing home
 
 4 Mrs. Giraben K. Shah
 
 5 Mrs. Gita B. Shah
 
 6 AB Tradelink Pvt. Ltd.
 
 7 Powertec Engineering Pvt. Ltd.
 
 (iii) Key Management Personnel :
 
 1 Mr. Bhadresh K. Shah (Managing Director)
 
 2 Dr. S. Srikumar (Director)
 
 8.  Contingent Liabilities not provided for in Accounts : 
 
                                                 (Rs. Millions)
 
                                                 As at          As at
 
                                       31st March 2011 31st March 2010
 
 a Bank Guarantees Outstanding                 475.38          311.48
 
 b Corporate Guarantees Outstanding to 
 Customers                                     108.78          106.08
 
 c Guarantees given by the Company on behalf 
 of Subsidiaries                                30.75          133.87
 
 d Estimated amount of unexecuted Capital 
 Contracts (Net of Advances) not provided for.  69.64           35.03 
 
 e Claims against the Company / Disputed
 Liabilities not acknowledged as Debts
 
 i) Central Excise & Service Tax               147.72          118.05
 
 ii) Income Tax                                165.31           17.13
 
 iii) Sales Tax / Central Sales Tax              7.41           14.71
 
 iv) E.S.I.C.                                     Nil            0.12
 
 Total                                        1004.99          736.47
 
 5.  Derivative Instruments :
 
 a) The Company has entered into forward contracts to offset foreign
 currency risks arising from the amounts denominated in currencies other
 than the Indian Rupee. The counter parties to such forward contracts
 are banks.
 
 6.  Previous year''s figures have been reworked, reclassified,
 regrouped and rearranged wherever necessary.
 
 7.  Secured sectioned loans are secured by paripasu charge in favour
 of State Bank of India and The Royal Bank of Scotland on Company''s
 movable and immovable properties both persent and future by way of
 hypothecation and mortgage.