Kirloskar Ferrous Industries

1.  Security:
 
 A) Term Loan:
 
 Term Loan of Rs.220,000,000 availed during the year from The Hongkong
 and Shanghai Banking Corporation Limited (HSBC) is secured by an
 exclusive first charge by way of hypothecation on specific fixed
 assets, namely Mini Blast Furnace -1 and Turbo Generators I and II, in
 favour of IDBI Trusteeship Services Limited, as Security Trustee for
 the benefit of HSBC.
 
 B) Working Capital facilities:
 
 Working Capital Facilities (Fund based and Non - Fund based)
 aggregating to Rs. 4,500,000,000 (previous year Rs. 2,150,000,000)
 sanctioned by the Consortium of Banks are secured by first charge by
 way of hypothecation on the current assets, both present and future, in
 favour of IDBI Trusteeship Services Limited, as Security Trustee for
 the benefit of the Consortium of Banks.
 
 2.  Warrants:
 
 The holders of 64,782,765 warrants are entitled to apply for one equity
 share of Rs.5 each per warrant at a premium of Rs.30 at any time within
 the warrant exercise period i.e., between 13th March, 2008 to 13th
 March, 2010. The Company will also have one time call option of
 compulsory conversion of warrants at any time within the warrant
 exercise period.
 
 Till 31st March, 2009, the Company has received applications from
 warrantholders for conversion of 289,494 warrants in to equity shares
 for an amount aggregating to Rs. 10,132,290 (inclusive of securities
 premium). Out of the above, 289,314 warrants amounting to Rs.
 10,125,990 have been converted into 289,314 Equity Shares (Equity Share
 Capital Rs. 1,446,570 and Securities Premium Rs. 8,679,420) till 31 st
 March, 2009.
 
 As on 31 st March, 2009, warrants 180 numbers (Previous year 1,500
 numbers) aggregating to Rs.6,300 (Previous year Rs.52,500) were pending
 for conversion into Equity Shares.
 
 3.  Interest paid on others Rs. 85,097,029 (Previous year Rs.
 71,785,984) is after deducting Rs.1,292,168 (Previous Year Rs.
 2,693,564) being interest received from
 customers/suppliers/contractors.  [Tax deducted on interest received
 Rs. Nil (Previous Year Rs. Nil)].
 
 The Company operates in one segment namely Iron castings.
 
 4.  Previous years figures have been regrouped wherever considered
 necessary to make them comparable with those of the current year.