1.  NON CONVERTIBLE DEBENTURES
 
 Non Convertible Debentures of the face value of Rs.20 crores issued to
 Oriental Bank of Commerce are yet to be redeemed due to paucity of
 funds. Debenture Redemption Reserve has not been created till date in
 the absence of operational profits.
 
 2.  PREFERENCE SHARES
 
 a) The company has not redeemed the preference shares due for
 redemption in October, 2001 and October, 2003 issued to Oriental Bank
 of Commerce, due to paucity of funds.
 
 3.  CONTINGENT LIABILITIES (Rs. In lacs)
 
                                        As at 31.03.11    As at 31.03.10
 
 Claims against the company not 
 acknowledged as debts:
 
 I) Income-Tax demands against which the
 department has gone on appeal.                 274.00            274.00
 
 II) Sales-tax demands against which 
 company has gone on appeal.                    153.58            153.58
 
 A Sum of Rs. 119.84 lacs has
 already been paid/ adjusted against 
 this liability
 
 III)   Guarantees issued and outstanding      4245.00           4245.00
 
 4.  LEGAL CASES
 
 Some of the banks/institutions where payment of interest / principal
 are in arrears, have filed cases against the Company for recovering an
 aggregate sum of Rs. 7,948.37 lacs (previous year 12,470.08 lacs) and
 the same are pending before various courts. The company is negotiating
 for waiver/concessions in interest/principal. Consequently no provision
 has been made for interest/ charges on such loans.
 
 Some of the Non-banking finance companies have filed civil/ criminal
 cases for recovery of debts and dishonoring of cheques and the same are
 pending before various courts.
 
 5.  DEFERRED TAX
 
 During the current year, due to timing difference, there has been
 decrease in deferred tax liability to the tune of Rs. 1,658,291/-.
 
 6.  DIRECTORS'' REMUNERATION
 
 a) As no commission has been paid to the directors, the computation of
 Net Profit for the purpose of Directors Remuneration under Sec.349ofthe
 Companies Act, 1956isnot enumerated.
 
 7.  OTS SCHEME
 
 The Company has fully paid the loans due to a Bank under One Time
 Settlement Agreement (OTS) entered with them. As a result, a sum of
 Rs.3,142.96 lakhs has been transferred to Capital Reserve due to
 remission of the principle.
 
 8. SEGMENT REPORTING
 
 The company has disclosed business segment as the primary segment.
 Segments have been identified taking into account nature of products
 and services, differencing risks and returns, the organisation
 structure and internal reporting system.
 
 The Company''s operations predominantly relate to Manufacture of Iron
 Steel Bars. Other business segments are Trading in Empty Bottles.
 
 The company''s entire business is in domestic market as such there are
 no reportable Geographical segments.
 
 Segment revenue, Segment results, Segment Assets and Liabilities
 include the respective amounts identifiable to each of the segments has
 also amounts allocated on a reasonable basis.
 
 The net expenses, which are not attributable to the business segment,
 are shown as un allocated corporate cost.
 
 Assets and liabilities that can''t be allocated between the segments are
 shown as part of un allocated corporate assets and liabilities
 respectively.
 
 9. RELATED PARTY DISCLOSURES
 
 a) List of Related Parties as identified by the Management are as under
 
 Key Management Personnel of the Company: Shri M Sreenivasulu Reddy
 
 Sl.  Enterprises owned by / Over which key Management Personnel are 
 No.  able to exercise significant influence
 
 1.  Balaji Hotels and Enterprises Limited
 
 10.  The Company''s operations at IMFL manufacturing unit at Jeedimetla,
 Hyderabad has been suspended.
 
 11.  The furnace division at Nellore is closed and not in operation.
 
 12.  The Company has not received any intimation from suppliers
 regarding their status under the Micro, Small and Medium Enterprises
 Development Act, 2006 and hence disclosure requirements in this Regard
 as per Schedule VI of the Companies Act, 1956 could not be provided.
 
 However, we have not provided any interest for delay in payment as per
 contractual terms, if any, for the enterprises covered under the above
 act.
 
 13.  In the absence of operational profits during the year, the Company
 has not proposed dividend on Preference share capital. Since these
 shares are cumulative, the dividend accumulated up to the current year
 is Rs. 369,411,530 (Previous year– Rs. 341,661,530 ).
 
 14.  The balance of Sundry Debtors, Creditors and Loans and Advances
 are Subject to confirmation.
 
 15.  Previous year''s figures have been regrouped, reclassified and re
 arranged wherever necessary to conform to current year''s presentation.
 
 16.  Figures have been rounded off to the nearest rupee.