The Company has only one class of equity Shares having a par value of Rs.5 per share. Each holder of Equity Shares is entitled to one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after payment of all preferential amounts, in proportion to their shareholding.

2. Segment information

In accordance with the requirement of the Accounting Standard 17 on segment reporting issued by the Institute of Chartered Accountants of India, the company operates in only one primary segment, i.e M.S.Bar. There are no reportable geographical segment

3. Disclosures of related party transactions (as identified & certified by the management):

a. As per Accounting Standard-18-' Related Party Disclosures' issued by the Institute of Chartered Accountants of India, the names of the related parties are given below :

b. List of related parties with whom the Company has transacted during the year

i Key Management Personnel     Mr. Sanjiv Kumar Choudhary (Managing
                                                           director)

ii Relatives of Key            Mrs. Manju Choudhary (wife of Mr. Sanjiv
Management Personnel                                  Kr. Choudhary)

                               Mr. Ankit Choudhary  ( son of Mr. Sanjiv
                                                      Kr. Choudhary)

                                        For the year       For the year
                                        ended 31st         ended 31st
4. Contingent Liabilities not           March 2014         March 2013
provided for in respect of:             Amount (Rs)        Amount (Rs)

b. Disputed Excise Duty matters u/s 3A of Central Excise Act, 1944 pending with High Court, Patna related to year 1998-99,1999-2000 wherein provision has not been made 1,443,471 1,443,471 by the Company.

However, there is an apparent discrepancy as per the Commissioner's Order according to which the liability works out Rs 37,40,926 which the company is in the process of getting rectified.

c No provision has been made in the accounts towards CENVAT credit wrongly availed during the year 2004-2005 by the Company as per the Excise department on the 298,412 298,412

strength of fake / fraudulent invoices by different parties.

d The Income Tax Department had conducted search and survey under section 132 of the Income Tax Act, 1961 (Act) and thereafter directed the company to get the accounts audited u/s 142(2A) of the Act after invoking section 153C of the Act for reassessment of income for the Assessment Years 2003-04 to 2009-10. Not satisfied with the outcome of the Income Tax proceedings, the company had filed an application with the Settlement Commission under section 245C of the Act on 1st August, 2011. However, the proceedings with the Settlement Commission have since been abated and the matter has been referred back to the original Assessing Officer for disposing of the matter.

Any liability or outcome of the aforesaid proceedings is indeterminate and has not been provided for. Such liability will be accounted for on final settlement of case by the Assessing Officer under the Act. However, the liability admitted by the company in its application with the Settlement Commission under Section 245C has not been provided in the books. In terms of the application filed on 1st August, 2011 the tax liability and interest determined and paid by the Company is Rs. 77,67,947 and Rs. 43,55,613 respectively. This has been included in ' Balances with Government Authorities' under note 13 "Long-term loans and Advances".

5. During the year, the company has claimed Rs. 2,47,40,315(P.Y. Rs. 1,01,37,895)(cumulative claim of Rs. 10,49,12,524) as Subsidy / Incentive receivable on VAT and entry tax paid in respect of new manufacturing unit implemented at Bihta, in terms of the scheme mentioned in the Industrial Scheme, 2006 by the Department of Industries, Bihar, out of which an amount of Rs. 1,21,77,779 has been received by the company for the financial year 2013-14 and Rs. 81,87,907 has been received for the financial year 2012-13.

However, in terms of the requirement under the scheme, the industrial unit must get a passbook from the State Government in which the details of tax paid under Bihar VAT would be entered and verified by the Commercial Tax Department. The company is yet to get the passbook and hence the claim for such Subsidy / Incentive remains unsubstantiated.

6. Micro, Small and Medium Enterprises

There are no Micro, Small & Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March 2014. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

7. Revenue from operations includes Sales of TMT Bar, Sponge Iron, Pig Iron, Oxygen, Billet and Rejected Rolls amounting to Rs. 71,42,25,002 (P.Y. Rs.29,21,02,663) and turnover in a commodity exchange amounting to Rs. Nil(P.Y. Rs.60,88,38,412). Similarly cost of material consumed includes Purchase of Raw materials amounting to Rs. 33,78,76,292 (P.Y. Rs.34,72,16,764) and also purchase of commodities in a commodity exchange amounting to Rs. Nil(P.Y. Rs.56,15,88,468) . No transfer of property in goods had taken place in the previous year in commodity transactions incurred in the commodity exchange as required for treatment of such revenues as turnover in terms of Accounting Standard (AS - 9) issued by Institute of Chartered Accountants of India and accordingly, these were speculative in nature.

8. Bihar state electricity Board has determined liability of energy dues in respect of Bihta unit amounting to Rs. 12,40.38,717 till the month of December 2012 and the same was payable in 20 installments with interest, the 1st installment being Rs. 62,19,717 and the remaining installments of Rs. 62,01,000 each. The Company failed to pay the Installments and Interest for the months of September 2013 to March 2014, amounting to Rs.4,86,15,840 . The company has also not booked Interest for the months of October 2013 to March 2014 amounting to Rs. 41,85,675 in total.

9. The company has received advances from customers amounting to Rs. 14,09,34,007 and security deposits from customers amounting to Rs. 1,08,67,873, some of which are lying unadjusted since long. No confirmations of accounts are available in this respect and such balances are subject to confirmation and reconciliation and consequential adjustments thereof are indeterminate.

10. The company has not provided for any bad debt which may arise in view of large number of accounts outstanding for a very long period as no confirmation of account is available in respect of such parties.

11. Balances of the Trade payables, Loans and advances incorporated in the books as per balances appearing in the relevant subsidiary records, are subject to confirmation from the respective parties and consequential adjustments arising from reconciliation, if any. The management however is of the view that there will be no material discrepancies in this regard and is taking adequate steps to get the confirmation and reconciling such accounts.

12. Due to suspension of manufacturing activities there are indications which suggest impairment in the value of fixed assets, being plant and machinery and other fixed assets of the company. The management is still in the process of getting an impairment study done and the financial impact of the impairment loss, if any will be accounted for at the relevant time.

13. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's

14. Figures have been rounded off to nearest rupee.

15. Figures in the bracket relate to previous year.