1.  Contingent Liabilities not provided for :-
 
 a) Claims against the Company not acknowledged, as debt is Rs. NIL
 
 b) Letter of Credits outstanding in favour of suppliers is Rs.
 72,57,390.00 (Previous Year Rs.  82,06,688.00)
 
 c) The company has filed an appeal with CEGAT against demand raised by
 D.C. Central Excise, Range, Ludhiana for differential duty Rs. 142684/-
 and interest thereon Rs. 75702/-. The company has deposited Rs.
 142684/- under protest and has not deposited the interest Rs.75702/-.
 
 2.  There are no Micro, Small and Medium Enterprises, to whom the
 company owes the dues, which are outstanding for more than 45 days as
 at the balance sheet date. The above information regarding Micro, Small
 and Medium Enterprises has been determined to the extent such parties
 have been identified on the basis of information available with the
 company. This has been relied upon by the Auditors.
 
 3.  As the companys business activity falls within a single primary
 business segment viz. Iron and steel, the disclosure requirements of
 Accounting Standard (AS-17)on Segment Reporting issued by the Institute
 of Chartered Accountants of India are not applicable.
 
 4.  Related Party Disclosures under Accounting Standard AS-18: -
 
 a)  Key Management Personnel Sh.   : Sandeep Gupta, Executive Director
 
                                    : Sh. Krishan Chand Gupta, Chairman
 
 
 b) Relatives of Key Management 
    Personnel
 
    Mr. Deepak Gupta                : Relative of Sh. Krishan Chand Gupta
 
    Mr. Pardeep Gupta               : Relative of Sh. Krishan Chand Gupta
 
    Mrs. Simla Rani                 : Relative of Sh. Krishan Chand Gupta
 
    Mrs. Meena Gupta                : Relative of Sh. Sandeep Gupta
 
 
 c) Enterprise over which key 
    management Personnel is 
    able to exercise significant
    influence                       : Akriti Cine Media (P) Ltd.
 
                                    : D.B.A. Switchgears (P) Ltd.   
 
                                    : Good Luck Travellers (P) Ltd.  
 
                                    : Odeon Enterprises (P) Ltd.  
 
                                    : Matry Mangal Builders (P) Ltd.  
 
                                    : Mukesh Industrial Finance Ltd.  
 
                                    : Mukesh Steels Limited 
 
                                    : Mukesh Udyog Limited 
 
                                    : Sandeep Gupta HUF 
 
                                    : krishan Chand Gupta HUF 
 
                                    : Krishan Chand Joginder Paul
           
                                                    (Rs. In Lacs)
 
 
 Particulars           Key Management      Enterprises   Total Personnel
 
                       (KMP)               over which
 
                       and their           KMP is able
 
                       relatives           to exercise
 
                                           Significant
 
                                           Influence
 
 The above information regarding Small Scale Industrial Undertakings has
 been determined to the extent such parties have been identified as
 S.S.I, on the basis of information available with the company. This
 information has been relied upon by the auditors.
 
 No amount has been claimed from the company under the Interest on
 Delayed Payments to Small Scale and Ancillary Industrial Undertakings
 Act, 1993.
 
 5.  The Basic & Diluted Earning Per Share disclosed in Profit & Loss
 Account has been calculated by dividing the net profit for the year
 attributable to Equity Shareholders by the weighted average number of
 equity shares outstanding during the said financial year.
 
 The net profit attributable to equity shareholders is Rs. 29,55,575/-
 (Previous Year Rs.  19,94,313/-) and weighted average number of equity
 shares is 36,60,000 for this purpose.
 
 6.  The company has carried out comprehensive exercise to assess the
 impairment loss of assets.  Based on such exercise, there is no
 impairment of assets. Accordingly, no adjustment in respect of loss on
 impairment of asset is required to be made in the accounts.
 
 7.  In the opinion.of the Board of Directors, the current assets and
 loans & advances have a value on realization-in the ordinary course of
 business at least equal to the value at which they are stated.
 
 8.  Confirmation- of Balances, whether in debit or credit, from
 parties and banks have not been obtained? As such their effect on
 Profit & Loss Account cant be reflected.
 
 9.  Previous year figures have been regrouped/rearranged wherever
 considered necessary to make them comparable with the current year
 figures.
 
 10.  Schedules I to XX form an integral part of the Balance Sheet and
 Profit & Loss Account and have been duly authenticated.
 
 II.  CAPACITIES
 
 (As certified by the management but not verified by us being technical
 matter)
 
 i) Licensed Capacity ¦: - No Industrial License is required for any of
 the products manufactured by the Company.
 
 IV.  EXPENDITURE/EARNING IN FOREIGN CURRENCY
 
 Interest on FCNRB/Buyer Credit: 2630752/- (Previous Year Rs. 2413142/-)
 
 V.  VALUE OF INDIGENOUS AND IMPORTED RAW MATERIAL & STORES CONSUMED