Notes to Accounts of Kusum Iron & Steel Ltd.

Mar 31, 2014

1. Liabilities not provided for in respect of

Rs. 1,59,06,603.27 raised by West Bengal State Electricity Board (WBSEB) for the period from 01-04-95 to 30-04-97. The Company has disputed the Demand and filed a petition in Kolkata High Court. Subsequently the Kolkata High Court referred the case to the Chief Electrical Inspector, Government of West Bengal. The Chief Electrical Inspector awarded the same and directed W.B.S.E.B. to issue fresh Bill. Subsequently W.B.S.E.B. has issued revised bill Rs. 51,96,125/-.

2. No provision for gratuity has been made in as no employee has put in the qualifying period of service entitling him to benefit of gratuity.

3. Additional information pursuant to Part II of the Schedule VI to the Companies Act, 1956.

4. The Company operates in a solitary business segment i.e. Real Estate Business. Accordingly no further financial information for business segments is required to be given. The total sales of the company for the year is comprised of Real Estate Business. Accordingly no further financial information for geographical segment is required to be given.

5. Deferred Tax : The company has unabsorbed depreciation and carried forward losses available for set-off under the Income Tax Act, 1961. However in view of present uncertainty regarding generation of sufficient future taxable income, net deferred tax assets at the year end including related credit for the year have not been recognized in these accounts on prudent basis.

6. Payment against supplies from Small Scale Industries and ancillary undertakings are generally made in accordance with the agreed credit terms. There was no overdue amount outstanding for more than 30 days in this regard.

7. Since the Company has accumulated loss, so no provision for Income Tax has been made during this year.

8. No balance confirmation has been taken from any Debtor.

9. Figure''s has been rounded off to the nearest rupee.

10. Previous year''s figures have been regrouped and re-arranged wherever found necessary.

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Mar 31, 2013

1) TAXES ON INCOME :

Income Tax Expense comprises current tax and deferred tax charge or credit. The deferred tax charge or credit is recognized using current tax rates, when there is unabsorbed depreciation or carry forward losses. Deferred tax assets/liabilities are recognized only if there is virtual certainty, so that the Company in future can utilize these assets/liabilities. Deferred tax assets/ liabilities are reviewed as at each balance sheet date based on developments during the year to reassess

on assets/liabilities. However no deferred tax assets/ liabilities have been provided, since there is no virtual certainty of Profit.

2) Liabilities not provided for in respect of:-

Rs.1,59,06,603.27 raised by West Bengal State Electricity Board (WBSEB) for the period from 01-04-95 to 30-04-97. The Company has disputed the Demand and filed a petition in Kolkata High Court. Subsequently the Kolkata High Court referred the case to the Chief Electrical Inspector, Government of West Bengal. The Chief Electrical Inspector awarded the same and directed WB.S.E.B. to issue fresh Bill. Subsequently WB.S.E.B. has issued revised bill for Rs.51,96,125/-.

3) No provision for gratuity has been made in as no employee has put in the qualifying period of service entitling him to benefit of gratuity.

4) Additional information pursuant to Part II of the Schedule VI to the Companies Act, 1956.

5. The Company operates in a solitary business segment i.e. Real Estate Business. Accordingly no further financial information for business segments is required to be given. Accordingly no further financial information for geographical segment is required to be given.

6. Deferred Tax : The company has unabsorbed depreciation and carried forward losses available for set-off under the Income Tax Act, 1961. However in view of present uncertainty regarding generation of sufficient future taxable income, net deferred tax assets at the year end including related credit for the year have not been recognized in these accounts on prudent basis.

7. Payment against supplies from Small Scale Industries and ancillary undertakings are generally made in accordance with the agreed credit terms. There was no overdue amount outstanding for more than 30 days in this regard.

8. Since the Company has accumulated loss, so no provision for Income Tax has been made during this year.

9. No balance confirmation has been taken from any Debtor.

10. Figure''s has been rounded off to the nearest rupee.

11. Previous year''s figures have been regrouped and re-arranged wherever found necessary.

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Mar 31, 2012

1) Liabilities not provided for in respect of:-

Rs. 1,59,06,603.27 raised by West Bengal State Electricity Board (WBSEB) for the period from 01-04-95 to 30-04-97. The Company has disputed the Demand and filed a petition in Kolkata High Court. Subsequently the Kolkata High Court referred the case to the Chief Electrical Inspector, Government of West Bengal. The Chief Electrical Inspector awarded the same and directed W.B.S.E.B. to issue fresh Bill. Subsequently W.B.S.E.B. has issued revised bill for Rs. 51,96,125/-.

2) No provision for gratuity has been made in as no employee has put in the qualifying period of service entitling him to benefit of gratuity.

3) Additional information pursuant to Part II of the Schedule VI to the Companies Act, 1956.

4. The Company operates in a solitary business segment i.e. Real Estate Business. Accordingly no further financial information for business segments is required to be given. The total sales of the company for the year is comprised of Real Estate Business. Accordingly no further financial information for geographical segment is required to be given.

5. Deferred Tax : The company has unabsorbed depreciation and carried forward losses available for set-off under the Income Tax Act, 1961. However in view of present uncertainty regarding generation of sufficient future taxable income, net deferred tax assets at the year end including related credit for the year have not been recognized in these accounts on prudent basis.

6. Payment against supplies from Small Scale Industries and ancillary undertakings are generally made in accordance with the agreed credit terms. There was no overdue amount outstanding for more than 30 days in this regard.

7. Since the Company has accumulated loss, so no provision for Income Tax has been made during this year.

8. No balance confirmation has been taken from any Debtor.

9. Figure's has been rounded off to the nearest rupee.

10. Previous year's figures have been regrouped and re-arranged wherever found necessary.

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Mar 31, 2010

1> Liabilities not provided for in respect of :-

Rs.1,59,06,603.27 raised by West Bengal State Electricity Board (WBSEB) for the period from 01-04-95 to 30-04-97. The Company has disputed the Demand and filed a petition in Kolkata High Court. Subsequently the Kolkata High Court referred the case to the Chief Electrical Inspector, Government of West Bengal. The Chief Electrical Inspector awarded the same and directed W.B.S.E.B. to issue fresh Bill. Subsequently W.B.S.E.B. has issued revised bill for Rs.51,96,125/-.

2> No provision for gratuity has been made in as no employee has put in the qualifying period of service entitling him to benefit of gratuity.

3> Additional information pursuant to Part II of the Schedule VI to the Companies Act, 1956.

4. The Company operates in a solitary business segment i.e. Real Estate Business. Accordingly no further financial information for business segments is required to be given. The total sales of the company for the year is comprised of Real Estate Business. Accordingly no further financial information for geographical segment is required to be given.

5. The disclosure pertaining to related parties and transactions therewith is as follows:-

6. The basic and diluted earnings per shares are :-

7. Deferred Tax : The company has unabsorbed depreciation and carried forward losses available for set-off under the Income Tax Act, 1961. However in view of present uncertainty regarding generation of sufficient future taxable income, net deferred tax assets at the year end including related credit for the year have not been recognized in these accounts on prudent basis.

8. Payment against supplies from Small Scale Industries and ancillary undertakings are generally made in accordance with the agreed credit terms. There was no overdue amount outstanding for more than 30 days in this regard.

9. Since the Company has accumulated loss, so no provision for Income Tax has been made during this year.

10. No balance confirmation has been taken from any Debtor.

11. Figures has been rounded off to the nearest rupee.

12. Previous years figures have been regrouped and re-arranged wherever found necessary.