1.  Contingent Liabilities not provided for:
 
 a) Estimated amount of contracts remaining to be executed on capital
 account (net of advances) Rs. Nil (Previous year Rs. Nil).
 
 b) Letter of Credits in favour of suppliers and others Rs. Nil
 (Previous year Rs. Nil).
 
 c) Bank Guarantees in favour of suppliers and others Rs. 2 lacs
 (Previous year Rs. 35.85 lacs).
 
 d) Corporate Guarantee on given on behalf of others Rs. 400 lacs
 (Previous year Rs. 900 lacs).
 
 2.  In response to the letters sent to the suppliers seeking to know
 the status of their coverage under the Micro, Small & Medium
 Enterprises Development Act, 2006 (MSMED Act) the Company has received
 replies from some of the suppliers. Based on these replies, there is no
 information that is required to be disclosed under the provisions of
 the said Act.
 
 3.  The balances of sundry debtors and sundry creditors are subject to
 confirmation.
 
 4.  In the opinion of the Board of Directors, the Current Assets and
 Loans and Advances have a value on realization in the ordinary course
 of business at least equal to the value at which they are stated in the
 foregoing Balance Sheet, unless stated otherwise.
 
 Due to the inadequacy of profits for the year, the company has paid
 remuneration to its Managing Director in terms of notification GSR No
 36(E) dated 16.01.2002. The remuneration is within the limits laid down
 in Schedule XIII to the Companies Act, 1956.
 
 5.  The company operates in only one segment: Iron & Steel.
 
 6.  The Income Tax and Sales Tax assessments of the Company have been
 completed upto accounting year 2006-07 and 2004-05 respectively.
 
 7.  Interest paid on working capital is net of interest received.
 
 8. The Company has given guarantee to IDBI for a Term Loan of Rs. 4.00
 crores (Outstanding Rs. 0.25 crores) given to Vardhman Industries
 Limited.
 
 9. On the basis of information available with the Company and relied
 upon by the Auditors, no party falls under the definition of related
 party as defined in AS - 18 on Related Party Disclosures issued by
 ICAI.
 
 * Quantity includes 35469 MT as job work production/sale (Previous Year
 27617) and excludes 2764 MT (previous year 3757 MT) on account of inter
 unit transfer.
 
 ** Quantity includes 19200 MT transferred from Rolling Mill Division
 (Previous Year 20196 MT) for which value not considered.
 
 *** Quantity includes 2467 MT transferred from C R Division to P T Mill
 (Previous year 2156 MT) for which value not considered.
 
 10.  Figures have been rounded off to the nearest Rupee and Metric Ton
 in case of amount and quantity respectively.
 
 11.  Previous year''s figures have been regrouped / rearranged wherever
 considered necessary in order to make them look comparable with the
 current year''s figures.
 
 12. Annexures''A'' to ''R'' form an integral part of the Balance Sheet and
 Profit and Loss Account.