1.  During the year the company has allotted 35,50,000 Equity shares of
 Rs.10/- each at a premium of Rs.27/- per share resulting in increase in
 paid up equity share capital of the company.
 
 2.  During the year the company allotted 40,00,000 convertible share
 warrants of Rs. 10/- each at a premium of Rs. 28/- per share warrant
 and issued 51,00,000 share warrants of Rs. 10 each at a premium of Rs.
 35/- per share warrant.
 
 3.  SECURED LOANS:
 
 The term loans, Corporate Loans and working capital loans availed are
 secured by mortgage / hypothecation of all fixed assets both present
 and future including land, building, plant and machinery, other
 equipments, stocks and book debts and personal guarantees of the
 Directors, B. Suresh Kumar, V.V. Krishna Rao, B. Suresh and B. Satish
 Kumar in their personal capacities.
 
 4.  During the year, the company has subscribed to 1,66,87,066 Equity
 shares of Rs.10 each fully paid of M/s. Simbadri Power Limited, a
 company promoted by the company as a special purpose vehicle (SPV) to
 setup the 60MW power plant at GSAL premises. The same has been
 reflected under Investments.
 
 5.  DEFERRED REVENUE EXPENDITURE
 
 a.  During the financial year 2009-2010, the company incurred an
 expenditure of Rs.1,40,00,000 towards brand promotion of Simhadri TMT
 by way of sponsorship of the sports event (Afro Asia T20 cup) conducted
 by World Future League Private limited. The same has been shown under
 deferred revenue expenditure to be written off over a period of five
 years.
 
 b.  During the year the company incurred an expenditure of
 Rs.1,92,50,000 towards processing fee and professional charges for
 availing Corporate term loans from State Bank of India and State bank
 of Hyderabad. The same has been shown under deferred revenue
 expenditure to be written off over a period of five years.
 
 6.  During the year the company incurred expenditure of Rs. 30,30,000
 towards increase in authorised capital. The same has been shown under
 deferred revenue expenditure to be written off over a period of five
 years.
 
 7.  The details of related party transactions in terms of Accounting
 Standard (AS 18) are as follows:
 
 a.  Names Of Related Parties And Description of Relationship:
 
 i.  Associate Concerns 1. VPL Projects Pvt. Ltd
 
 2. Vizag Profile Constructions India Pvt. Ltd.
 
 3. Vizag Profiles Pvt. Ltd
 
 4. Umashiv Garments Pvt Ltd
 
 5. World Future League Pvt Ltd.
 
 6. Simhadri Power Ltd
 
 ii.  Key Management Personnel 1. B. Satish Kumar-Managing Director
 
 2.  B. Suresh Kumar-Jt. Managing Director
 
 3.  B. Suresh - Director (Finance)
 
 i i i.  Relatives of key Management Personnel
 
 1.  B. Ramesh Kumar
 
 2.  B. Rajesh
 
 8. Employee benefits as per AS-15 (Revised): Gratuity
 
 As per the accounting policy on retirement benefits(AS-15) the Gratuity
 liability is provided for the employees covering upto Rs. 10,00,000 (
 Previous year Rs. 3,50,000) as per actuarial valuation.
 
 9.  Contingent Liability not provided for:
 
 a.  Demand by Sales Tax Authority for the FY 2002-03 amounting to Rs.
 22,43,895/-(previous year 22,43,895) towards CST is pending in appeal.
 A sum of Rs. 2,80,487/- was deposited and is included in Loans and
 Advances.
 
 b.  Demand by Central Excise and Customs Authorities towards customs
 duty amount refunded in respect of exports amounting to Rs.54,35,648.
 The Company has filed an appeal with the Hon''ble High Court against the
 demand.
 
 c.  A case has been filed against the Company by Rashtriya Ispat Nigam
 Limited (RINL) for infringement of Trade Mark and the final orders were
 passed by the trail Court at Vishakapatnam not granting any damages to
 RINL. However the Company appealed before the Hon''ble High Court of
 Andhra Pradesh and a cross appeal was also filed by RINL. The Hon''ble
 High Court of Andhra Pradesh had suspended the orders of the trail
 Court and aggrieved by the same, RINL preferred a special leave
 petition before the Hon''ble Supreme Court of India and the SLP was
 dismissed by the Hon''ble Supreme Court of India.
 
 d.  Demand by Sales Tax Authority for the F.Y 2004-05 amounting to
 Rs.28,27,172/- (previous year Rs. 28,27,172/-) pending in appeal. A sum
 of Rs. 3,53,397/- has been paid under protest during the year 2008-09
 and is included in Loans and Advances.
 
 e.  Letters of credit for purchases ~ Nil (previous year Rs. nil lakhs)
 
 f.  The company has given guarantee of Rs.25.00 crores to Pridhvi Asset
 Reconstruction and Securitisation Company Limited
 
 10.  Previous year figures have been regrouped/or rearranged wherever
 necessary. Amounts have been rounded off to nearest rupee.
 
 11.  The balance shown in Sundry Debtors, Sundry Creditors, advances
 are subject to confirmation from the respective parties.
 
 12.  In the opinion of the management, the Current Assets, Loans and
 Advances are expected to realise at least the amount at which they are
 stated in the ordinary course of business and provision for all known
 liabilities have been adequately made in the accounts.