1 Contingent Liabilities:
 
 (a) Estimated amount of contracts on Capital Account remaining to be
 executed and not provided for in accounts is Rs. Nil lacs( Previous-
 Year Rs. Nil lacs).
 
 (b) Claims not acknowledged as debts since disputed Rs. 249.29 lacs
 (Previous Year Rs. 249.29 lacs). Amounts already paid under protest Rs.
 33.21 lacs(Previous Year : Rs. 33.21 lacs) have been debited to Advance
 Account.
 
 (c) Counter guarantees in favour of Consortium Banks in respect of
 their outstandings with Ferro Alloys Corporation Limited and Facor
 Alloys Limited. Due to the nature of the liability, its financial
 impact is not ascertainable.
 
 2 The Company has entered into a Power Delivery agreement with Wardha
 Power Company Limited (WPCL) for procurement of power for its
 manufacturing activity at the term set out in the said agreement for
 twenty five years from the commencement of commercial operation of
 power plant to be declared by WPCL. As per the terms of another related
 agreement with WPCL, the company has invested Rs. 440 lacs shown under
 investments (schedule F) in the class A Equity shares of 1945867 of
 Rs10 each aggregating to Rs19458670/- and 2454133 no of 0.01%
 redeemable class A preference shares aggregating to Rs 24541330/- and
 Company is required to invest Rs275 lakhs in 0.01% class C redeemable
 preference shares of 2750000 of Rs 10 each at par , prior to
 commencement of commercial operation of the said power plant. Therefore
 said shares are/shall be under lien with WPCL. Upon the expiry of Power
 Delivery agreement. Class A Equity Shares and Class A Redeemable
 Preference Shares will be bought back by WPCL for total consideration
 of Rs. 1. One tenth of Class C Redeemable Preference Shares will be
 redeemed on every anniversary from the date of issue at Rs. 0.01 share.
 
 3 (Note No. 7 - Schedule ‘K’ of Annual Accounts)
 
 No provision for current Income-Tax is considered necessary in view of
 the brought forward Business loss and unabsorbed depreciation.  In view
 of current year book loss no provision for Minimum Alternate Ta x is
 required.
 
 4 (Note No. 14 - Schedule of Annual Accounts)
 
 During the year Company has issued 1500000 (nos.) 5% Redeemable
 Cumulative Preference Shares of Rs. 100/- each to one of the Promoter
 group entity against Inter Corporate Deposit worth Rs. 1500 lacs.
 
 5 (Note No. 15 - Schedule ''K'' of Annual Accounts)
 
 Maharashtra Electricity Regulatory Commission (MERC) vide its order
 dated 27th April 2007 has directed Maharashtra State Electricity
 Distribution company Limited (MSEDCL) to refund, Regulatory Liability
 Charges (RLC) collected by it during the period commencing December
 2003 to September 2006, to selected consumer category within which the
 company gets covered. Company has received refund of Rs. 24367270/-from
 MSEDCL upto 31.03.2010. In the current Financial year company has
 recognised refund of Rs.41924123/- of which Rs. 29573589/- is
 outstanding as on 31.03.2011 and the same is grouped under other
 current assets.
 
 6 (Note No. 16 - Schedule ''K'' of Annual Accounts)
 
 Loans and Advances includes Rs. 75.58 lacs(previous year Rs. 75.58)
 towards advance paid against supply of scrap by overseas supplier
 against which company has initiated action for recovery towards quality
 dispute.
 
 7 (Note No. 17 - Schedule ''K'' of Annual Accounts)
 
 In accordance with the accounting policy followed by the Company,
 Excise Duty in respect of goods manufactured by the Company is being
 accounted for at the time of removal of goods from the factory. Such
 Excise Duty payable on goods awaiting clearances from the factory is
 estimated at Rs. 493.26 lacs.(previous year Rs. 340.21 lacs) However,
 the said liability, if accounted, would have no impact on the results
 for the year.
 
 Note:
 
 The above information and that given in Schedule -H ''Current
 Liabilities and Provisions'' regarding micro enterprises and small
 enterprises has been determined on the basis of information available
 with the Company.
 
 8 (Note No. 27 - Schedule ''K'' of Annual Accounts) Segment Information:
 
 The Management Information System of the Company identifies and
 monitors Steel Product as the business segment. The company is managed
 organisationally as a single unit. In the opinion of the management,
 the company is primarily enganged in the business of Steel Product. As
 the basic nature of these activities are governed by the same set of
 risk and return, these constitute and are grouped as single segment as
 per Accounting Standard AS-17 dealing with segment reporting issued by
 ICAI.
 
 9 (Note No. 28 - Schedule ''K'' of Annual Accounts)
 
 Previous Year''s figures have been re-grouped wherever necessary.
 
 10 (Note No. 29 - Schedule ''K'' of Annual Accounts) Related Party
 Disclosure:- I List of related parties:- A Name and nature of
 relationship of the related party where control exists:- Vidarbha Iron
 and Steel Corporation Limited (VISCO)- Associates
 
 B Enterprises,over which Key management personnel and their relatives
 exercise significant influence, with whom transactions have taken place
 during the year.
 
 I Ferro Alloys Corporation Limited   2 Facor Alloys Limited
 
 3 Rai Bahadur Shreeram & Co.         4 Dass Papers Products. Ltd.
   Pvt. Ltd.
 
 5 Orchard Consultancy Pvt. Ltd.      6 Godavari Devi Saraf & Sons.
 
 7 S.D. Ores Pvt. Ltd.                8 Suchitra Investment & Leasing 
                                        Ltd.
 
 9 Saraf Bandhu Pvt. Ltd.             10 Facor Power Ltd.
 
 II GDP Infrastructure Pvt. Ltd.      12 Queen consultancy Services 
                                         Pvt.Ltd.
 
 13 Vineet Infin Pvt. Ltd.
 
 C Key Management Personnel :
 
 1 N.D. Saraf       Chairman & whole Time Director
 
 2 M.D. Saraf       Vice chairman & Managing Director
 
 3 Vinod Saraf      Managing Director
 
 4 Anurag Saraf     Joint Managing Director