II NOTES ON ACCOUNTS :
 
 1. In the opinion of the management, Loans & Advances and current
 Assets are approximately of the value stated, if realised in the
 ordinary course of business.  The balances of sundry Debtors, sundry
 creditors, loans and Advances and other accounts as at 31.03.2000 are
 subject to confirmation.
 
 2. (i) Term Loan from Central Bank of India is secured by mortgage
 and/or hypothecation of all present and future assets, both movable and
 immovable which includes land, building, plant and machineries, spare
 parts, accessories, equipments, fixtures, dyes, tools, parts, furniture
 and other movable etc.  Further, the loans are guaranteed by the
 Managing Director and other Director of the company in their personal
 capacities.
 
 (ii) Working Capital borrowings from Central Bank of India secured by
 first charge on stocks of raw materials, work-in-progress, consumable
 stores and spares and book debts and also guaranteed by the Chairman
 and the Managing Director of the company in their personal capacities.
 
 (iii) Term loan from Bihar State Industrial Credit and Investment
 Corporation, Patna is secured by way of equitable mortgage of company's
 land measuring 6 kathas and 4 dhurs and hypothecation of all building
 constructed and to be constructed and all plant & machinery installed
 and to be installed on the plot of land.  In addition to this, the loan
 is secured by way of second charge on the assets financed by Central
 Bank of India.  The loan is also guaranteed personally by all the
 Directors of the company.
 
 3. No provision for taxation has been made during the year in view of
 the Provisions of the Income Tax Act, 1961.
 
 4. Expenditure on employees getting remuneration of not less than
 Rs.6,00,000/- per annum, if employed throughout the year or Rs.50,000/-
 per month, if employed for part of the year : Nil.  (Previous Year :
 Nil).
 
 5. Calls in Arrear amounting to Rs.10859500/- as shown in Schedule - 1
 of the statement of Accounts are in respect of shares alloted to
 persons other than Directors of the Company.
 
 6. During the year, letter of credit to the tune of Rs.65.00 lacs
 devolved upon the company.  No interest has been provided on the
 liability in respect of the devolved letters of credit as no interest
 has been debited by the bank.
 
 7. The total demand of Excise Duty after the introduction of
 compounding system stands as follows :
 
 Rolling Mill - Rs.81,80,777/- (Upto 31.03.1999)
 
                Rs.68,04,060/- (For 1999-2000)
 
 Induction Furnace - Rs.2,77,14,804 /-
 
 Out of the demand of Rs.6804060 /- in respect of the rolling mill for
 the year, Rs.1904248/- was paid during the year.  No provision in
 respect of the liabilities has been made as the matter is subjudice
 with Supreme Court of India.
 
 8. The total demand for fuel surcharge as on 31.3.2000 is as follows :
 
 Rolling Mill division - 1998-99      - Rs.8,45,328/-
 
                        Previous year - Rs.9,61,055/-
 
 Induction furnace division : 1998-99 - Rs.56,16,343/-
 
                        Previous year - Rs.58,67,196/-
 
 The same has not been provided in the accounts.
 
 9. Sales tax demand in respect of the financial year 1995-96 was
 Rs.1,96,075.72 and in respect of the financial year 1996-97, it was
 Rs.11,65,075.02.  Out of this Rs.38,216/- and Rs.2,32,406/- was
 deposited.  The matter was subjudice with Joint Commissioner of
 Commercial Taxes (Appeal) and as the matter has been decided in favour
 of the company, the amount stands refundable.
 
 10. The quantitative details of Stocks has been compiled from the
 Excise records of the company.
 
 11. Pursuant to an inspection carried out by BSEB officials in the
 premises of the company, a demand of Rs.12.62 crores was raised under
 clause 16.9 of the tariff of the BSEB upon the company for alleged
 discrepancies in the electric line of the furnace division of the
 company.  Consequently the electric line of the furnace division was
 disconnected on 28.08.1999.  However, the bill has been stayed by the
 Hon'ble Supreme Court of India and the tine has been restored on
 payment of Rs.  60.00 lacs on 1 -6-2000.
 
 12. Previous year figures have been re-grouped and/or re-arranged
 wherever considered necessary.