Notes to Accounts of Sirhind Steel Ltd.

Mar 31, 2014

1 Share Capital

Note:

During the period of five financial years immediately preceeding the Balance Sheet date, the company has not:

(i) allotted any fully paidup equity shares by way of bonus shares;

(ii) allotted any equity shares pursuant to any contract without payment being received in cash;

(iii) brought back any equity shares

(a) Rights, Preferences and Restrictions

The authorised share capital of the Company has only one class of shares referred to as ‘equity shares'' having a par value of Rs. 10/- each. The rights and privileges to equity shareholders are general in nature and defined under the Articles of Association of the Company and as allowed under Companies Act, 1956.

The equity shareholders shall have:

(i) right to vote in shareholders meeting. Where voting is to be made on a show of hands, every member present in person and holder of equity share, shall have one vote and in case of poll, the voting rights shall be in proportion to the shares in the paid up capital of the Company;

(ii) right to receive dividend in proportion to the amount of capital paid up on the shares held;

The shareholders are not entitled to exercise any voting right either personally or proxy at any meeting of the Company in cases calls or other sums payable have not been paid.

2 Trade payable

There are no amounts due to the suppliers covered under Micro, Small & Medium Enterprises Development'' 2006. This information takes into account suppliers who have responded to the inquiry made by the company for this purpose.

3 Business Operations

The company was in the business of manufacturing running a steel rolling mill till October, 2012 and investing in mutual funds, shares and bank deposits etc.

Pursuant to closure of manufacturing activities the entire funds used as working capital to run the business are also surplus and invested in mutual funds, liquid funds, bank fix deposits etc. It is uncertain as to what new activity the company would be able to start, this activity has thus been included in the main objects clause of the company.

On advice of its legal counsel, subsequent to balance sheet date the company has approached Reserve Bank of India seeking advice about the legal regulatory compliances the company is required to undertake, if any, regarding the provision relating to Non Banking Financial Companies. Pending response from Reserve Bank of India the income from aforesaid investment has been considered as "Revenue from Operation".

4 In the opinion of the Board, current assets, loans & advance are approximately of the value stated, if realized in the ordinary course of business.

5 The Company''s operation fall under single segment namely investment in securities. Hence segment reporting is not applicable

6 Related Party Disclosures

As required by accounting standard - AS 18 "Related Parties Disclosure" issued by The Institute of Chartered Accountants of India are as follows:

(a) List of related parties with whom transactions have taken place during the year and relationship:

Sr. Name of related party Relationship No. 1 Mr. Ravi Malhotra, Managing Director

2 Mrs. Rajika Malhotra, Whole time Director Key Management Personnel

3 Mr. N. C. Kapadia Director

7 In accordance with the requirements of Accounting Standard 28 (AS-28) on "Impairment of Assets" the Company has carried out necessary assessment to access the impairment loss of assets. Based on such assessment since there is no impairment of assets no adjustment in respect thereto is required to be made in the accounts.

8 The previous year''s figures have been reworked, regrouped and reclassified wherever necessary so as to make them comparable with those of the current year.

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Mar 31, 2012

1.1 Share Capital

(e) Rights, Preferences and Restrictions

The authorised share capital of the Company has only one class of shares referred to as 'equity shares' having a par value of Rs. 10/- each. The rights and privileges to equity shareholders are general in nature and defined under the Articles of Association of the Company and as allowed under Companies Act, 1956.

The equity shareholders shall have:

(i) right to vote in shareholder's meeting. Where voting is to be made on a show of hands, every member present in person and holder of equity share, shall have one vote and in case of poll, the voting rights shall be in proportion to the shares in the paid up capital of the Company:

(ii) right to receive dividend in proportion to the amount of capital paid up on the shares held ;

The shareholders are not entitled to exercise any voting right either personally or proxy at any

meeting of the Company in cases calls or other sums payable have not been paid.

1.2 There are no amounts due to the suppliers covered under Micro, Small & Medium Enterprises Development Act, 2006. This information takes into account suppliers who have responded to the inquiry made by the Company for this purpose.

1.3 In accordance with the requirements of Accounting Standard 28 (AS-28) on "Impairment of Assets" the Company has carried out necessary assessment to access the impairment loss of assets. Based on such assessment since there is no impairment of assets no adjustment in respect thereto is required to be made in the accounts.

1.4 The Company's operation fall under single segment namely manufacturing of rolled products. Hence segment reporting is not applicable.

1.5 The financial statements for the year ended 31st March, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the companies Act, 1956. Consequent to the notification under the Companies Act, 1956, the financial statements for the year ended 31st March, 2012 are prepared under the Revised Schedule VI. Accordingly, previous year figures have also been reclassified to conform this year's classification.

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Mar 31, 2010

1. In the opinion of the Board, current assets, loans & advance are approximately of the value stated, if realised in the ordinary course of business. The provision for depreciation and all known liability is adequate and not in excess of the amount reasonably necessary.

2. The disclosures required in respect of Gratuity as per Accounting Standard 15 "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below :

The estimates of rate of escalations in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The expected rate of return on plan assets is based on LIC structure of interest rates. The above information is certified by the actuary.

3. The Deferred Tax Liability Comprise of the following :

4. There are no amounts due to the suppliers covered under Micro, Small & Medium Enterprises Development Act, 2006. This information takes into account suppliers who have responded to the inquiry made by the Company for this purpose.

5. In accordance with the requirements of Accounting Standard 28 (AS-28) on "Impairment of Assets" the Company has carried out necessary assessment to access the impairment loss of assets. Based on such assessment since there is no impairment of assets no adjustment in respect thereto is required to be made in the accounts.

6. The Management is of the view that shortfall of Rs. 4114959/- between the aggregate cost price and aggregate Net Asset value of long terms investments in units of mutual funds is temporary and hence no provision is required in respect thereof.

7. The Companys operation fall under single segment namely manufacturing of rolled products.

8. Previous Year Figures have been regrouped and recast wherever necessary.

9. Additional information under Part IV of Schedule VI to the Companies Act, 1956.

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Mar 31, 2009

1. Provision and Contingent Liabilities . Tne Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

2. In the opinion of the Board, current assets, loans & advance are approximately of the value stated, if realised in the ordinary course of business. The provision for depreciation and all known liability is adequate and not in excess of the amount reasonably necessary.

3. Related Party Transactions

Name of Related Party Relationship Transaction during the year

Sirhind Enterprises Limited Associates

Mr Ravi Malhotra Managing Director Remuneration Rs. 2572994 (Previous Year Rs. 2297687)

Mrs Rajika Malhotra Whole-time Director Remuneration Rs. 272055 (Previous Year Rs. Nil)

4. There are no amount due to the suppliers covered under Micro, Small & Medium Enterprises Development Act, 2006. This information takes into account suppliers who have responded to the inquiry made by the Company for this purpose.

5. In accordance with the requirements of Accounting Standard 28 (AS-28) on "Impairment of Assets" the Company has carried out necessary assessment to access the impairment loss of assets. Based on such assessment since there is no impairment of assets no adjustment in respect thereto is required to be made in the accounts.

6. The Management is of the view that shortfall of Rs. 1,12,60,900/- between the aggregate cost price and aggregate market value of quoted investments and shortfall of Rs. 8,76,44,540/- between the aggregate cost price and aggregate Net Asset Value of unqouted investments are temporary and hence no provision is required in respect thereof.

7. The Companys operation fall under single segment namely manufacturing of rolled products.

8. Previous Year Figures have been regrouped and recast wherever necessary.