1.  Contingent Liabilities
 
 i.  Estimated amount of contracts remaining to be executed on capital
 account [net of advances] and not provided for Rs. 4969.12 Lacs [P.Y.
 4338.04 Lacs].
 
 ii.  Contingent Liability not Provided for in respect of :- 
 
                                                       [Rs. in Lacs]
 
 Particulars                                    As at          As at
                                           31-03-2011     31-03-2010
 
 Letter of Credit                              493.75        1223.69
 
 Bank Guarantee Given                           26.27         265.65
 
 Corporate Guarantees Given to Banks 
 for Shah Alloys Ltd.                        8,000.00       8,000.00
 
 Claim lodged by party not acknowledge 
 by us                                         500.07         234.90
 
 Disputed Value Added Tax Demand               365.63              -
 
 2.  Foreign currency exposure at the year end not hedged by derivative
 instruments.
 
 a) The Company has not entered into any forward contracts to offset
 foreign currency risks arising from the amounts denominated in
 currencies other than the Indian Rupee.
 
 3.  Segment Reporting
 
 The Company is manufacturing Ferro Alloys & Sponge Iron, which is
 basically used in Iron & Steel Industry. Further power generated in the
 company in its power plant is used for captive as well as trading
 purpose. In view of this, the company has to consider Iron & Steel
 and Power as Primary Reportable business segment, as per Accounting
 Standard -17, Segment Reporting issued by The Institute of Chartered
 Accountants of India. However, due to substantial competition, risk,
 on-going position of Company and largely in the interest of the Company
 as well as interest of the stack holders involved, therefore,
 management has not made disclosure of Primary Reportable segment as per
 Accounting Standard -17. Further, the Company has its business within
 the geographical territory of India Therefore, Company has considered
 INDIAN GEOGRAPHY as the only secondary reportable business segment,
 as per the Accounting Standard 17 issued by the Institute of Chartered
 Accountants of India.
 
 4.  Related Party Disclosures
 
 Associates               : Shah Alloys Ltd., Adarsh Foundation 
                            (Charitable Trust)
 
 Key Management Personnel : Rajendra V. Shah, Dr. K. C Thatoi, 
                            Sujal A. Shah (KMP)
 
 5.  As informed to us, the Company has not received information from
 the Suppliers regarding their status under The Micro, Small & Medium
 Enterprises Development Act, 2006. Hence, disclosures, if any, relating
 to amounts unpaid as at the Balance Sheet date together with interest
 paid or payable as per the requirement under the said Act, have not
 been made.
 
 6.  As per Accounting Standard - 15 Employee Benefits, the
 disclosures of Employee benefits as defined in the Accounting Standard
 are given below:
 
 Defined Benefit Plan
 
 The present value of obligation is determined based on actuarial
 valuation using the Projected Unit Credit Method, which recognizes each
 period of service as giving rise to additional unit of employee benefit
 entitlement and measures each unit separately to build up the final
 obliga- tion. The obligation for leave encashment is recognized in the
 same manner as gratuity.
 
 vi.  Actuarial assumptions
 
 The estimates of rate of escalation in salary considered in actuarial
 valuation, take into account inflation, seniority, promotion and other
 relevant factors including supply and demand in the employment market.
 The above information is certified by the actuary. The expected rate of
 return on plan assets is determined considering several applicable
 factors, mainly the composition of plan assets held, assessed risks,
 historical results of return on plan assets and the Company''s policy
 for plan assets management.
 
 7. Certain Balance of Debtors, Creditors, Loans & Advances for capital
 Expenditures are non- moving / sticky since last 3 years. However in
 view of management, the same is recoverable / payable. Hence no
 provision for the same is made in the books of accounts.
 
 8.  Expenses have been capitalized and transferred to pre-operative
 expenses on the basis of bifurcation made by the management. This being
 technical matter, auditors have accepted the same as correct.
 
 9.  The company has opted for Tax Remission Scheme in place of
 original composite scheme of Sales Tax. Due to this change, the VAT
 collected by the Company becomes Income of the Company and accordingly
 credited to Profit and Loss Account.
 
 10.  In the opinion of the Board of Directors, the current assets,
 loans and advances are approxi- mately of the value stated, if realized
 in the ordinary course of business and the provisions for depreciation
 and all known and ascertained liabilities are adequate and not in
 excess of the amounts reasonably necessary.
 
 11.  Inventories are as taken, valued and certified by the Management.
 
 12.  Balances of Unsecured Loans, Sundry debtors, Creditors and Loans
 and advances are subject to confirmation from respective parties.
 
 13.  Previous year''s figures have been re-grouped / rearranged wherever
 necessary so as to confirm to current year''s groupings.