1.  CONTINGENT LIABILITIES:
 
 No provision has been made for:
 
 a.  Outstanding Bank Guarantees and Counter Guarantees given by the
 Company Rs.713,35,112 (Rs.697,55,112).
 
 b.  Outstanding Letter of Credit Rs.14,87,50,737 (Rs.6,98,56,609).
 
 c.  Estimated amount of contracts remaining to be executed on capital
 account – Rs.465.80 lakh (net of advance) (Rs.564.00 lakh).
 
 Income Tax and Sales Tax Assessments:
 
 a.  Income tax assessments have been completed upto assessment year
 2008-09. Additional liability, if any, in respect of pending
 assessments, would be provided for on completion of assessments.
 
 b.  Additional demand, if any, in respect of pending assessments of
 Sales Tax would be known only on completion of the assessments.
 
 2.  Name of the Company has been changed from Rathi Udyog Limited to
 Rathi Steel And Power Limited w.e.f. 20.03.2008.
 
 Earning in Foreign Currency(FOB):
 
 Finished goods sale Rs. Nil (Rs. Nil).
 
 4.  Payment to auditors:
 
 a.  Audit Fee – Rs.4,00,000 (Rs.4,00,000).
 
 b.  Fee for Limited Review – Rs.20,000 (Rs.20,000).
 
 c.  Out of Pocket Expenses – Rs.15,000 (Rs.15,000).
 
 3.  Amount due for repayment within one year on term loans Rs.2027.52
 lacs (Rs.2637.17 lacs).
 
 4.  Sundry debtors, advances, creditors & other liabilities includes
 inter parties transfers and debit/credit notes are subject to
 confrmation and consequent adjustments. In the opinion of the Board of
 Directors, the current assets and loans & advances except doubtful in
 nature would realize at least the amount at which these are stated in
 the Balance Sheet.
 
 5.  Based on the information available with the Company, there are no
 over dues to micro and small enterprises under the Micro, Small and
 Medium Enterprises Development Act. Payments are as per agreed terms.
 
 6.  Related Party Disclosure:
 
 In accordance with Accounting Standard (AS-18) on related party
 disclosure, where control exists and where key management personnel are
 able to exercise significant influence and, where transactions have
 taken place during the year, along with description of relationship
 identified, are given below:
 
 a) Individuals
 
 1.  Shri Udit Rathi
 
 2.  Shri Shrivardhan Rathi
 
 b) Key Managerial Personnel Shri Pradeep Rathi
 
 Shri P N Varshney
 
 7. Segmental Reporting:
 
 The business activity of the company falls within one broad segment viz
 Steel. Hence the disclosure requirement of Accounting Standard- 17 of
 Segment Reporting issued by the Institute of Chartered Accounts of
 India is not given.
 
 8. Previous year figures have been regrouped or recast wherever
 necessary.