1.  Contingent Liabilities:
 
 a.  Contingent liabilities not provided for in respect of:
 
                                                           (Rs. in Lacs)
 
 Description                                   2010-2011      2009-2010
 
 Guarantee given by the bank on behalf of the 
 Company to Purvanchal Vidyut Vitran Nigam 
 for Electricity Load Sanction.                   150.00         150.00
 
 Guarantees given by the bank on behalf of 
 the Company to Uttar Pradesh Pollution 
 Control Board for NOCs.                           12.00          10.00
 
 Guarantees given by the bank on behalf of 
 the Company to Gorakhpur Industrial 
 Development Authority.                                -          14.91
 
 Claims not acknowledged as debts (Amount paid 
 to Commercial Tax Department, UP)                 24.82          11.14
 
 b. Estimated amount of contracts remaining to 
 be executed on capital account is Rs. 13780.80 lacs.
 
 2.1.(a) Primary Securities:
 
 i)   Term Loans:
 
 (a) First Pari pasu charge over all the borrower''s fixed assets
 (Present & Future).
 
 (b) Second Pari pasu charge over all the borrowers'' current assets
 including Debtors and Stock etc.
 
 (c)Corpoarte& Personal Guarantee
 
 Personal Guarantee of the Sri C.P Agarwal, Sri Prem Prakash Agarwal and
 Sri Nitin M. Kandoi.
 
 ii) Cash credit:
 
 (a) Hypothecation of entire current assets of the company (present and
 future) consisting of raw material, Sip finished goods, store & spares
 and book debts.
 
 (b) Extension of First Pari pasu charge over all the borrower''s fixed
 assets (Present & Future).  
 
 (c)Corpoarte& Personal Guarantee
 
 Personal Guarantee of the Sri C.P Agarwal, Sri Prem Prakash Agarwal and
 Sri Nitin M. Kandoi.
 
 6.  Impairment of Assets:
 
 Pursuant to Accounting Standard (AS 28)-lmpairment of Assets issued by
 Institute of Chartered Accountant of India, the Company assessed its
 fixed assets for impairment as at March 31, 2011 and concluded that
 there has been no significant impaired fixed asset that needs to be
 recognized in the books of accounts.
 
 8.  During the year the company concluded its Initial Public offering
 through which 81,00,208 Equity Shares (including 14,00,000 Equity
 Shares issued to promoters and Promoers group, contribution proceeds of
 which Rs. 7,00,00,000/- had been brought in before opening of the IPO)
 of Rs. 10/-each at a premium of Rs. 40/- each issued by the company to
 Qualified Institutional Buyers, Non Institutional Investors and to
 Retail Individual Investors which closed on 24th September, 2010. The
 Equity Shares of the Company has been listed on Bombay Stock Exchange
 Limited and National Stock Exchange of India Limited (Stock
 Exchanges) and trading in Equity Shares started from 11th October,
 2011.
 
 11. Disclosure as per section 22 of the Micro, Small and Medium
 Enterprises Development Act, 2006 :
 
 The company has not received any intimation from suppliers regarding
 status under the Micro, Small and Medium Enterprises Development Act
 2006 and hence disclosures, if any, relating to amount unpaid as at the
 year end together with the interest paid/payable as required under the
 said act have not been furnished.
 
 12. Sundry Creditors include Rs. Nil (Previous Year Rs. Nil) due to
 Small Scale industrial undertaking to the extent such parties have been
 identified from the available documents / information.
 
 13.  Balance of the Sundry Debtors, Creditors, Loans and advances are
 subject to confirmation from respective parties.
 
 14.  Other Receivable under the head Loans & Advances includes Excise
 duty and service tax of Rs. 576.11 Lacs and VAT receivable of RS163.35
 Lacs.
 
 15. As per Government Order of State Government of Uttar Pradesh the
 company is eligible for interest free loan of equivalent amount of VAT
 liability paid for 15 years and which shall be re-payable after 15
 years. The company has claimed Rs. 1517.55 Lacs up to 31st March 2011
 (upto previous year Rs. 502.76 Lacs) on account of this tax liability
 the amount is yet to be received. However no provision of this amount
 has been made in the books.
 
 16 (a) As per incentive scheme of State Government of Uttar Pradesh
 vide Government Order No. 1502/77-6-2006-10 tax/04 dated 01st June 2006
 and which have been elaborated in Government Order No.
 2941/77-6-2006-10 tax/04 dated 30th November 2007 and amended from time
 to time the company is eligible for incentives i.e. Capital investment
 subsidy @ 20% of fixed capital investment, infrastructure subsidy @ 10%
 of total fixed capital investment and 5% additional capital subsidy
 being the first unit in Purvanchal region. During the year the company
 has received Rs. 2428.00 Lacs of such incentives against the claim made
 by company of Rs. 7589.33 Lacs of the capital investment made upto 31st
 October 2010. The incentive received has been credited in fixed assets
 in the ratio of capital investment made. No provision has been made for
 the unrealized claim of Rs. 5161.33 Lacs in the books.
 
 (b) As per incentive scheme of State Government of Uttar Pradesh vide
 Government Order No. 1502/77-6-2006-10 tax/04 dated 01st June 2006 and
 which have been elaborated in Government Order No. 2941/77-6-2006-10
 tax/04 dated 30th November 2007 and amended from time to time the
 company is eligible for incentives including freight subsidy on Iron
 Ore equivalent to the freight paid to Railway and local handling
 expenses upto maximum of 5% of the railway freight.  During the year
 company has provided an amount of Rs. 859.59 Lacs, which has been
 adjusted with freight paid on Iron Ore in Profit Loss account and shown
 as Advance recoverable in Balance sheet.
 
 17. During the year the company has earned Rs. 17.34 Crore from sale of
 right in land. Right on land was acquired from the original sellers
 through negotiation and on terms and conditions as embodied in the
 agreements entered into with them and afterwards Company has sold the
 right on land so acquired.
 
 18. Related Party Disclosures (As identified by the Management): Name
 of Related Parties and Description of Relationship.
 
 I.  Associate Company & Firm Gallant Udyog Ltd
 
 Gallantt Metal Ltd
 
 Chandra Prakash Agrawal & Sons (HUF)
 
 Gallantt Landmark (Properitor C.P.Agrawal & Sons HUF) Prem Prakash
 Agrawal HUF
 
 II.  Key Managerial Personnel Mr. Chandra Prakash Agrawal
 
 Mr. Prem Prakash Agrawal
 
 Mr. Nitin Kandoi
 
 III.  Relatives of Key Managerial Personnel Mr. Mayank Agrawal
 
 Mr. Ashutosh Agrawal
 
 19. Adjustment of subsidies etc under the heading ''Fixed Assets'' as on
 March 31, 2011 includes Rs. 2428.00 Lacs received from State Government
 of Uttar Pradesh and Rs. 591.96 Lacs on account of duties and taxes.
 
 20. During the year the company has transferred Rs. 31.83 Lacs from
 administrative expenses to pre-operative expenses pending
 capitalisation.
 
 Previous year figures have been regrouped and reclassified wherever
 necessary to facilitate comparison with Current year figures.