1.  Contingent liabilities not provided for :
 
 Demand of Rs. 2,24,379/- raised by Sales Tax authorities, for the
 accounting year 2003-04 which is disputed by the Company.
 
 Demand of Rs. 1,40,975/- raised by Sales Tax authorities, for the
 accounting year 2004-05 which is disputed by the Company.
 
 Penalty Demand of Rs. 2,06,340/- raised by Income Tax authorities, for
 Assessment year 2001-02 which is disputed by the Company.
 
 Demand of Rs. 92,796/- raised by Income Tax authorities, for Assessment
 year 2007-08 which is disputed by the Company.
 
 Demand of Rs. 16,35,840/- raised by Income Tax authorities, for
 Assessment year 2008-09 which is disputed by the Company.
 
 Demand of Rs. 30,09,730/- raised by Income Tax authorities, for
 Assessment year 2008-09 which is disputed by the Company.
 
 2.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for in the Accounts (net of advances) NIL
 
 3.  In terms of accounting policy (J) for the accounting of export
 incentives, estimated benefit of Rs. 163.04 Lacs have been taken in to
 account under DES Scheme. Steps are being taken to import raw materials
 and utilize the same.
 
 4.  Securities :
 
 a) Term Loan of Rs. 6200 Lacs availed from Punjab National Bank is
 secured by way of first charge over company''s block of assets including
 all the immovable properties, both present and future situated at
 Survey No. 771,772,773,774,777 & 779/A, at Village Thol, Tal. Kadi,
 Dist. Mehsana and also on land situated at Survey No. 767/2 at Village
 Vanku Moti Sondholli Dist. Kutch and first charge over Suraj House
 situated at Usmanpura Ahmedabad and personal guarantees of Directors of
 the Company viz. Ashokbhai T Shah, Kunalbhai T Shah & Gunvantbhai T
 Shah and corporate guarantee of M/s. Suraj Impex Pvt. Ltd.
 
 b) The working capital Limits of Rs. 73.50 Lacs from Punjab National Bank
 and 19.50 Lacs from State Bank of India are secured against
 Hypothecation of Raw Materials, Stock in process, Finished and Semi-
 finished Goods, Stores and spares, Book Debts, Other Current Assets of
 the company and personal guarantees of Directors of the Company viz.
 Ashokbhai T Shah, Kunalbhai T Shah & Gunvantbhai T Shah and corporate
 guarantee of M/s. Suraj Impex Pvt. Ltd. It is further secured by Second
 charge on all fixed assets of the company located at the factory
 premises at Survey No. 779/A, Thol, Taluka: Kadi Dist.  Mehsana and
 assets of windmill at village-Vanku, Dist-Kutch.
 
 5.  Particulars of Managerial Remuneration :
 
 As fixed monthly remuneration has been paid to the Directors'' as per
 Schedule XIII of the Companies Act, 1956, the company has not computed
 net profit for the purpose of Managerial remuneration under section 349
 of the Companies Act, 1956.
 
 Managerial Remuneration paid to Managing Director and Whole Time
 Directors is Rs. 1,20,00,000 /- (previous year Rs. 1,17,00,000/-) included
 in salaries & wages.
 
 6.  In the opinion of the Directors, the current assets, loans and
 advances are approximately of the value stated, if realized in the
 ordinary course of business and provision for all known and determined
 liabilities (except wherever otherwise stated)are adequate and not in
 excess of the amount reasonably necessary.
 
 7.  Balances under Sundry Debtors, Sundry Creditors, Loans & Advances
 are subject to confirmation and reconciliation with the respective
 parties/ concerns. Necessary adjustment if any, thereon having an
 importance of revenue nature, will be made in the year of such
 confirmation / reconciliation.
 
 8.  Employee Benefits :
 
 As per Accounting Standard 15 Employee Benefits, the disclosure of
 Employee benefits as defined in the Accounting Slandered are given
 below. :
 
 a) Gratuity (defined benefit plans)
 
 The Company has defined gratuity plan. Every employee who has completed
 five years or more of service gets a gratuity on death or resignation
 or retirement at 15 days salary (last drawn salary) for each completed
 year of service. The scheme is funded with an insurance company in the
 form of qualifying insurance policy.
 
 b) Leave wages (long term employment benefit)
 
 The leave wages are payable to all eligible employees a the rate of
 daily salary for each day of accumulated leave on death or on
 resignation or upon retirement on attaining superannuation age.
 
 9.  Segment Reporting :
 
 a) Primary Segment :
 
 The Company''s operations predominantly relates to a single segment
 namely Stainless Steel Tubes & Pipes which as per Accounting
 Standards 17 is considered the only reportable business segment.
 
 10.  As required by Accounting Standard 18 issued by Institute of
 Chartered Accountants of ndia relating to Related Party Disclosure,
 information is as under:
 
 a) Related parties and nature of relationship
 
 * Directors of the Company :        * Associate Companies :
 
 1 Shri Ashok T. Shah                  1 Suraj Impex Pvt. Ltd.
 
 2 Shri Gunvant T. Shah                2 Suraj Enterprise Pvt.Ltd.
 
 3 Shri Kunal T. Shah                  3 Suraj Retail Pvt. Ltd.
 
 4 Shri Bipin K. Prajapati             4 Suraj Star Trading Pvt.Ltd.
 
 5 Shri Ketan R. Shah                  5 Suraj Commodities Pvt.Ltd.
 
 6 Shri Dipak H. Shah                  6 TBS Metal Ltd.
 
 7 Shri Haren R.Desai
 
 (b) Transactions that have taken place during the period April 1, 2010
 to March 31, 2011 with related parties by the company.
 
 11.  Additional Information pursuant to the paragraphs 3, 4C and 4D of
 Part- II of Schedule VI of the Companies Act, 1956.
 
 As certified by the management and relied upon by the auditors.
 
 12.  The Company has not received any information from ''Suppliers''
 regarding their status under the Micro, Small and Medium Enterprise
 Development Act, 2006 and hence disclosure requirements in this regard
 as per Schedule VI of the Companies Act, 1956 could not be provided.
 
 13.  Schedule 1 to 18 will form part of the Balance Sheet as at 31st
 March, 2011
 
 14.  Previous year''s figures have been regrouped/reclassified and/or
 rearranged wherever considered necessary.
 
 15.  Particulars as required in part IV to schedule VI is annexed
 herewith.