1.  The Company has implemented the scheme of rehabilitation by raising
 long term funds and utilization thereof in the capital expenditure.
 During the year, working capital finance was also tied up. The Company
 has stabilized all the new equipments installed for debottlenecking of
 the facilities and accordingly the Company has recorded significant
 increase in production and sales.
 
 The Company also made efforts to develop products for additional/new
 applications towards enriching its product mix and also approached a
 number of Original Equipment Manufacturers for product and process
 approvals.
 
 The Management is hopeful of improved performance in the coming year.
 In view of the foregoing, the accounts have been prepared on a going
 concern basis despite the fact that the Company''s accumulated losses
 exceed its net worth.
 
 2.  CAPITAL EXPENDITURE PLAN
 
 The Company, as envisaged in the approved modified rehabilitation
 scheme, had undertaken capital expenditure programme. The programme
 involved acquisition of new machineries, balancing equipments, complete
 revamping and modernization of existing plant facilities.
 
 i) Pre-operative expenses (including net expenditure during trial run
 of Rs. Nil) of Rs. Nil during the year (previous year Rs.517 lac) in
 respect of assets capitalized during the previous year has been
 allocated to the direct cost of the respective assets.
 
 3.  The balances of Sundry Debtors and Sundry Creditors are subject to
 confirmation from the respective parties and consequential adjustments
 arising there from, if any. The management however does not expect any
 material variations on reconciliation.
 
 4.  In the opinion of the Board, Current Assets, Loans and Advances
 have a value on realization in the ordinary course of business at least
 equal to the amount at which they are stated in the Balance Sheet,
 unless stated otherwise. The provision for all known liabilities is
 adequate and not in excess of the amount reasonably stated.
 
 5.  SEGMENT REPORTING
 
 The Company operates in a single business segment i.e. manufacture of
 steel and steel products such as seamless tubes and rolled products and
 as such there are no primary and secondary segments as per the
 requirement of Accounting Standard (AS-17) on Segment Reporting as
 notified in the Companies (Accounting Standards) Rules 2006. The
 Company has no reportable geographical segment.
 
 6.  RELATED PARTY DISCLOSURE
 
 As for Accounting Standard (AS – 18) ''Related Party Disclosures'',
 notified in the Companies (Accounting Standards) Rules 2006, the
 disclosures of transactions with the related parties as defined in the
 Standard are given below:
 
 Name of related party Relationship
 
 - Vijay Singh Bapna Key Management Personnel (up to 31.07.2010)
 
 - Abhishek Mandawewala Key Management Personnel (w.e.f. 04.09.2010)
 
 - Welspun Steel Limited Associate Company
 
 - Wide Screen Holding Pvt Ltd Associate Company
 
 7.  In terms of Accounting Standard 22 issued by ICAI, in respect of
 Accounting of Taxes on Income the company has computed deferred tax
 asset amounting to Rs.13405 lac (previous year Rs.12138 lac) on account
 of carried forward losses and disallowances and the deferred tax
 liability amounting to Rs.3258 lac (previous year Rs.3407 lac). The net
 deferred tax assets amounting to Rs.10147 lac (previous year Rs.8731
 lac ) has not been recognized as a matter of prudence.
 
 8.  EMPLOYEE BENEFITS
 
 a) Defined Contribution Plan
 
 The Company makes contributions at a specified percentage of payroll
 cost towards Employees Provident Fund (EPF) for qualifying employees.
 
 The Company recognized Rs.184 lac (previous year Rs.141 lac) for
 provident fund contributions in the profit and loss account.
 
 b) Defined Benefit Plans
 
 Gratuity payable to all eligible employees of the company on
 superannuation, death and resignation in terms of the provision of the
 payment of Gratuity Act. The present value of obligations is determined
 based on actuarial valuation using Projected Unit Credit Method, which
 recognized each period of service as given rise to additional unit of
 employee benefit entitlement and measures each unit separately to build
 up the final obligation.
 
 d) Other Long Term Employee Benefits
 
 The Leave encashment charge for the year ended 31st March, 2011, based
 on actuarial valuation carried out using the Projected Accrued Benefit
 Method, amounting to Rs.38 lac (previous year Rs.52 lac) has been
 recognized in the Profit and Loss Account.
 
 9. FINANCIAL AND DERIVATIVE INSTRUMENTS
 
 The forward exchange to hedge the foreign currency exposure for
 payments to be made against foreign currency loan is Rs.3748.22 lac
 equivalent to USD 77.62 lac (previous year Rs 3488.73 lac equivalent to
 USD 77.70 lac).
 
 The foreign currency exposure, that have not been hedged by any
 derivative instrument or otherwise, related to liabilities as on 31st
 March, 2011 is Rs.426.37 lac, equivalent to USD 9.28 lac, Euro 0.11 lac
 and CHF 0.11 lac (previous year Rs.383.79 lac equivalent to USD 8.44
 lac and Euro 0.06 lac).
 
                                            Year Ended     Year Ended
 
                                            31.03.2011     31.03.2010
 
 f) Contingent Liability                           (Rs. in lac)
 
 a) Estimated amount of unexecuted 
 contracts on capital account
 not provided for (net of advances)                92            283
 
 b) Bank Guarantees                              1421            387
 
 c) Bills Discounted                             1284            230
 
 d) Others                                          4              4
 
 e) Service Tax                                    12              -
 
 f) Excise Duty                                    34              -
 
 g) Disputed Sales Tax Demands                     28             20 
 
 h) Disputed Income Tax Demand                     85              -
 
 10. Previous year figures have been rearranged and regrouped, wherever
 necessary.