Notes to Accounts of Western Ministil Ltd.

Mar 31, 2024

d] Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognised when the enterprise has a present obligation
(legal or constructive) as a result of a past event and it is probable that an
outflow of resources embodying economic benefits will be required to settle
the obligation, in respect of which a reliable estimate can be made. These
are reviewed at each balance sheet date and adjusted to reflect the current
management estimates. If the effect of the time value of money is material,
provisions are determined by discounting the expected future cash flows
specific to the liability. The unwinding of the discount is recognised as finance
cost.Contingent Liabilities are disclosed in respect of possible obligations that
arise from past events but their existence is confirmed by the occurrence or
non-occurrence of one or more uncertain future events not wholly within the
control of the company.

A contingent asset is a possible asset that arises from past events and whose
existence will be confirmed only by the occurence or non-occurrence of one
or more uncertain future events not wholly within the control of the entity.
Contingent Assets are not recognized till the realization of the income is
virtually certain. However, the same are disclosed in the financial statements
where an inflow of economic benefit is probable.

e] Earning per share:

Basic earnings per share is calculated by dividing the profit or loss for the
period attributable to the equity shareholders by the weighted average number
of equity shares outstanding during the period. For the purpose of calculating
diluted earnings per share, the profit or loss for the period attributable to
the equity shareholders and the weighted average number of equity shares
outstanding during the period is adjusted to take into account: The after
income tax effect of interest and other financing costs associated with dilutive
potential equity shares, and weighted average number of additional equity
shares that would have been outstanding assuming the conversion of all
dilutive potential equity shares.

f] Income Tax

Income tax expense/income comprises current tax expense income and
deferred tax expense income. It is recognized in statement of profit or loss
except to the extent that it relates to items recognized directly in equity or in
other comprehensive income.

Current tax comprises the expected tax payable or recoverable on the
taxable profit or loss for the year and any adjustment to the tax payable
or recoverable in respect of previous years. It is measured using tax
rates enacted or substantively enacted by the end of the reporting
period. Management periodically evaluates positions taken in tax
returns with respect to situations in which applicable tax regulation is
subject to interpretations and establishes provisions where appropriate.

Deferred Income tax is recognised in respect of temporary difference between
the carrying amount of assets and liabilities for financial reporting purpose and
the amount considered for tax purpose. Deferred tax assets are reviewed at
each reporting date and are reduced to the extent that it is no longer probable
that sufficient taxable profit will be available to allow the benefit of part or all
of that deferred tax asset to be utilised such reductions are reversed when
it becomes probable that sufficient taxable profits will be available. Deferred
tax is measured at the tax rates that are expected to be applied to temporary
differences when they reverse, using tax rates enacted or substantively
enacted by the end of the reporting period. The measurement of deferred tax
assets and liabilities reflects the tax consequences that would follow from the
manner in which the Company expects, at the reporting date, to recover or
settle the carrying amount of its assets and liabilities.

g] Cash and cash equivalents

Cash & cash equivalents in the balance sheet includes cash at bank and on
hand, deposits held at call with financial institutions, other short term highly liquid
investments, with original maturities less than three months which are readily
convertibleintocashandwhicharesubjecttoinsignificantrisksofchangesinvalue.

For the purpose of the statement of cash flows, cash and cash equivalents
cash and short term deposits as defined above is net of outstanding bank
overdrafts as they are considered an integral part of the Company''s cash
management.

h] Borrowing Cost

Interest and other borrowing costs attributable to qualifying assets are
capitalized. Other interest and borrowing costs are charged to revenue.

d Terms / Rights attached to Equity Shares:

The company has only one class of equity share having a par value of Rs.10
per share. Each holder of equity share is entitled to one vote per share. The
dividend, if any proposed by the Board of Directrs is subject to the approval of the
shareholders in the Annual General Meeting, except in case of interim dividend. In
the event of liquidation of the company the holder of equity share will be entitled
to receive remaining assets of the company after distribution of all preferential
amounts. The distribution will be in proportion to number of equity share held by
the shareholders.

e Aggregate number of bonus share issued, share issued for consideration
other than cash & share bought back during the period of five years
immediately preceeding the reporting date: NIL (Previous Year - NIL)

f Rights, preferences and restrictions attached to shares:

The Company has only one class of equity shares having face value of r 10
per share. Each holder of equity share is entitled to one vote per share. Equity
shareholders are also entitled to dividend as and when proposed by the Board
of Directors and approved by shareholders in Annual General Meeting. In the
event of liquidation of the Company, the holders of equity shares will be entitled
to receive remaining assets of the Company, after distribution of all preferential
amounts in proportion to their shareholding.

14 COMPANY INFORMATION

The Company was incorporated on August 3, 1972. The Company''s operation had
been hampered during 1995 and since then the operation continues to remain at
a standstill.

The Company was mainly engaged in the manufacture of steel in ingots or other
primary forms, and other semi-finished products of steel.

15 PROVISIONS :

a) The Company owes an aggregate amount of Rs.450.52 Lakhs (Previous Year
- Rs. 431.07 Lakhs) to its associate companies towards short term borrowings
(inclusive of accrued interest of Rs.226.61 Lakhs (Previous Year - Rs.226.61
Lakhs)), which liability, it is unable to discharge for obvious reasons of financial
difficulties and lack of funds.

b) Provision has not been made towards interest payable to the associate
companies on their short term borrowings due to the Company having not
earned any revenue / income or carried out any business activities during the
financial year ended 31-03-2024.

c) After the closure of the plant at Mulund on 01-12-1995 the remaining facilities
have been impaired/ discontinued.

d) the accumulated losses of the Company as at the Balance Sheet date
exceeds its paid up share capital and free reserves eroding its networth and
the Liabilities exceeds it assets as on the balance sheet date

The Company is evaluating possibilities if any for restructuring its activities
and accounts have been prepared on Going Concern Basis.

16 The Company does not have different segments and hence segment-wise
reporting in terms of Indian Accounting Standard (AS) 108 ''Operating Segments'' is
not applicable. Further, the Company has not carried on any production/ operation
during the financial year.

17 RELATED PARTY DISCLOSURES UNDER INDIAN ACCOUNTING STANDARD
24.

A. Enterprises over which KMP are able to exercise significant influence

WRM Pvt. Ltd. (earlier known as "Western Rolling Mills Pvt. Ltd.)

B. Key Managerial Personnel:

(i) Mr. Prithiviraj S. Parikh (Director)

(ii) Mr. Ajit K. Honyalkar (CEO & CFO)

(iii) Mr. Gyaneshwar K Singh (Company Secretary)

The Company does not have any Benami property, where any proceeding has
been initiated or pending against the Company for holding any Benani property.

The Company does not have any transactions with the companies struck off during
the year.

The Company does not have any charges or satisfaction which is yet to be
registered with ROC beyond the statutory period.

The Company have not traded or invested in Crypto currency or Virtual Currency
during the financial year.

21 Based on the Information available with the company, regarding the status of the
suppliers as defined under the Micro Small and Medium Enterprise Development
Act, 2006 (The MSMED), no suppliers are outstanding for more than 45days as
per the terms & conditions of the order.

22 The Company''s affairs are managed by the Directors assisted by C.E.O., C.F.O.
& C.S. under the superintendence of the Board as the operations are at a
standstill.

23 The Company is of the view that it is not required to make provision for gratuity
in financial statements for the year ended March 31, 2024 under the revised IND
AS - 19 as the Payment of Gratutity Act, 1972 is not applicable to the Company.

24 The previous year figures have been regrouped and reclassified wherever
necessary to correspond with the current year classification / disclosure.

25. Financial risk management objectives and policies

"The Company''s principal financial liabilities, comprise borrowings, trade and other
payables. The main purpose of the significant portion of these financial liabilities
is to finance the dues towards arrears of electricity charges, demurrage charges
and other routine expenditure of the Company. The Company''s principal financial
assets include cash and cash equivalents and other financial assets.

a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a
financial instrument will fluctuate because of changes in market interest rates.
Company does not have significant foreign currency risk exposure to the risk
of changes in market interest rates as Company''s long-term debt obligations
is at fixed interest rates.

b) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle
or meet its obligations on time or at a reasonable price. For the Company,
liquidity risk arises from obligations on account of financial liabilities -
borrowings, trade payables and other financial liabilities.

c) Credit risk

Credit risk arises from the possibility that counter party may not be able to
settle their obligations as agreed. Company is exposed to credit risk from
loans advanced and deposits with banks. To manage this, the Company
exposure to its counter parties are continuously monitored. Company deals
with counter parties having high credit rating.

26 Non Recognition of Deferred Tax Asset under IND-AS 12:Since the Company
does not expect Company to have Taxable Profit in near Future on account of
closure of Plant and the Company does not have any plan to start any other activity
in near future Deferred Tax Assets on carry forward losses of the Company is not
recognised

As per our report of even date attached

For PARESH RAKESH & For and on behalf of the Board of Directors

ASSOCIATES LLP

Chartered Accountants

ICAI FRN. 119728W/W/100743

Sd/- Sd/- Sd/-

Rasik Chaturvedi P K. R. K. Menon Sharmila S. Chitale

Proprietor Director ( DIN:00106279) Director ( DIN : 07146530)

Membership No. 039524

Sd/- Sd/-

Place : Mumbai Gyaneshwar K. Singh Ajit K. Honyalkar

Date : May 30, 2024 Company Secretary CEO / CFO

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Mar 31, 2014

1. SAHRE CAPITAL

a) Shares outstanding at the beginning of the year & at the end of the year:

No shares have been issued or brought back during the current year and previous year.

b) Terms/Rights attached to Equity Shares:

The company has only one class of equity share having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share. In the event of liquidation of the company the holder of equity share will be entitled to receive remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to number of equity share held by the shareholders

c) Aggregate number of bonus share issued, share issued for consideration other than cash & share bought back during the period of five years immediately preceding before the reporting date:

During the period of preceding five yrs, the company has not:

* allotted any share without payment being received in cash;

* allotted any share by way of bonus share; and

* bought back any share.

2. SHORT TERM BORROWINGS

*a) Interest free Loan from Associate Companies amounting to Rs. 29.40 lacs is in arrears and outstanding since 31-03-2011.

*b) Loan from Associate Companies amounting to Rs. 95.55 lacs is in arrears and outstanding since 31-03-2002.

*c) Interest on the loan from Associate Companies amounting to Rs. 149.06 lacs has not been provided for since 31-03-2002.

# No repayment period has been specified in respect of loan taken from Associate Companies and Director.

3. FIXED ASSET (NET)

Notes:

1) No addition/deletion/acquition or revaluation during the year.

2) During the financial year depreciation have been provided since closure of factory from 01 -04-1996 till 31-03-2014.

3) The leasehold rights for the unexpired term (till 30-11-2022) have been furnished as Security as directed by the Order of the Mumbai High Court in favour of Bank of Rajasthan to the satisfaction of DRAT, Mumbai. (Refer Note No. 12 (a) - Contingent Liabilities).

4) The Buildings includes factory office building which is built on the leasehold land and whose gross block and depreciation amounting to Rs. 8.18 lacs & Rs. 4.27 lacs as at 31st March, 2014. The lease is renewed and valid till 30-11-2022.

5) The Buildings also includes office premises of 2 rooms at Steel Chamber, Kalamboli, whose gross block and depreciation amounting to Rs. 3.31 & Rs. 1.31 lacs as at 31st March, 2014.

6) Depreciation provided during the year includes Rs. 5.20 lacs pertaining to earlier period from 01-04-1996 to 31-03-2013.

---

Mar 31, 2013

1 CONTINGENT LIABILITIES : ''

a) Having been dis-satisfied wijth the orders passed by DRAT on 12-10-2006 in the Appeals relating to O.A. Nos.1808/200Q,& 3202/2000, remanded for review by '' Bombay High Court vide order dated 21-07-2006, Writ Petitions have been filed in Bombay High Court for quashing the Orders of DRAT dated 31-12-2004 and 12- 10-2006. In view of the matter being subjudice, liability if any, on this account cannot be determined or accounted for.

b) The Company has received a demand notice from BMC to effect payment of alleged arrears of property tax amounting to ? 28.37 lacs as at 31-03-2005 which is being contested as there has not been any change of user in its leasehold land at Mulund, Mumbai. Bills for the period 01 -04-2005 onwards appears to have been with-held by BMC, pending disposal of Company''s appeal.

2 Trade Receivables amounting to ? 181.67 lakhs are overdue details of which are hereunder:

a) The Company has filed a suit for recovery against one of such customers i.e. M/s. Virgo Steels vide Ref. No. 4433 of 1994 in Mumbai High Court amounting to ?118.15 lacs. The customer has however, disputed the dues and filed a cross suit vide Ref. No. 3188 of 1994. Both Suits are pending for hearing & disposal with Mumbai High Court. However, no provision has been made in the accounts for the same, pending final disposal of the suits.

b) An amount of ? 17.78 lacs is due from M/s. Bharat Steel Corporation in respect of cheques dishonoured towards bills raised for sale of billets and the Company had instituted legal proceedings for the recovery of the same. However, the suit no. 1626 of 1995 is still pending for hearing before the Mumbai High Court.

c) An amount of ? 45.74 lacs is due from Sterling Re-rolling Mills Ltd. on account of billets supplied but, payments withheld by them for reasons of commercial dispute. The company has however, not filed any suit for its recovery.

3 a) The Company owes an aggregate amount of ? 527.39 lacs to its associate companies towards short term borrowings (inclusive of accrued interest of ? 311.47 lacs), which liability, it is unable to discharge for obvious reasons of financial difficulties and lack of funds.

b) Provision has not been made towards interest payable to the acsociate companies on thetr short term borrowingyd)LM»tt> the Company havfrigrwC earnedany revenue / income or carried out any business activities during the financial year ended 31-03-2013.

c) The Company has not provided for the doubtful deposits, doubtful trade receivables and doubtful advances aggregating ? 184.22 lacs as aforesaid in view of the huge amount of losses carried forward and for reasons that a major portion of trade receivables is covered under a legal dispute contested as stated above in Note 14.

d) After the closure of the plant at Mulund on 01-12-1995 the remaining facilities have been impaired/ discontinued. Depreciation has not been provided for since the financial year 1996-97. In view of this deferred taxation in terms of Accounting Standard, Accounting for Taxes on Income (AS-22) issued by the Institute of Chartered Accountants of India, has not been considered.

In view of above, the Company does not envisage any possibilities of reviving its activities in forseeable future.

4 The 6ompany does not have different segments and hence segment^wise reporting in terms of Accounting Standard (AS) 17 ''Segment Reporting'' issued by the Institute of Chartered Accountants of India is not applicable. Further, the Company has not carried on any production during the financial year.

5 RELATED PARTY DISCLOSURES UNDER ACCOUNTING STANDARD 18.

A. Relationship: Associate Companies (i) WRM Pvt. Ltd.

(ii) Eastcoast Steel Ltd.

B. Key Managerial Personnel: (i) Mr. Prithviraj S. Parikh

(ii) Mr. P. K. R. K. Menon / .

Related Party Transactions:

(i) Outstanding Loan Amount (including interes payable) to associate companies and director and other Parties as at 31.03.2013

6 Although, the Company has been making payment of lease rental charges to Lohitka Properties Pvt. Ltd., the lesser, in respect of Mulund property, these cheques have not been encashed for reasons known to the lessor only.

7 Basic and Diluted Earning Per Share (AS -20)

For the purpose of calculation of Basic and Diluted Earning Per Share the following amounts are considered:

8 Theresas been no imports or expenditure in foreign currency either during the year or in the previous year and hence no relevant information is furnished.

9 Previous Year''s figures have been regrouped wherever necessary to make them comparable with those of current year figures.

---

Mar 31, 2012

1. CONTINGENT LIABILITIES :

a) Having been dis-satisfied with the orders passed by DRAT on 12-10-2006 in the Appeals relating to O.A. Nos. 1808/2000 & 3202/2000, remanded for review by Bombay High Court vide order dated 21-07-2006, Writ Petitions have been filed in Bombay High Court for quashing the Orders of DRAT dated 31-12-2004 and 12-10-2006. In view of the matter being subjudice, liability if any, on this account cannot be determined or accounted for.

b) The Company has received a demand notice from BMC to effect payment of alleged arrears of property tax amounting to Rs. 28.37 lacs as at 31-03-2005 which is being contested as there has not been any change of user in its leasehold land at Mulund, Mumbai. Bills for the period 01-04-2005 onwards appears to have been with-held by BMC, pending disposal of Company's appeal.

2. Trade Receivables includes payment which are overdue amounting to Rs. 181.67 lakhs.

a) The Company has filed a suit for recovery against one of such customers i.e. M/s. Virgo Steels vide Ref. No. 4433 of 1994 in Mumbai High Court amounting to Rs.118.15 lacs. The customer has however, disputed the dues and filed a cross suit vide Ref. No. 3188 of 1994. Both Suits are pending for hearing & disposal with Mumbai High Court. However, no provision has been made in the accounts for the same, pending final disposal of the suits.

b) An amount of Rs. 17.78 lacs is due from M/s. Bharat Steel Corporation in respect of cheques dishonored towards bills raised for sale of billets and the Company had instituted legal proceedings for the recovery of the same. However, the suit no. 1626 of 1995 is still pending for hearing before the Mumbai High Court.

c) An amount of Rs. 45.74 lacs is due from Sterling Re-rolling Mills Ltd. on account of billets supplied but, payments withheld by them for reasons of commercial dispute. The company has however, not filed any suit for its recovery.

3. After the closure of the plant at Mulund on 01-12-1995 the remaining facilities have been impaired/discontinued, however no provisions has been made for the same. The Company does not envisage any immediate possibilities of restructuring its activities in for seeable future. In view of this deferred taxation in terms of Accounting Standard, Accounting for Taxes on Income (AS-22) issued by the Institute of Chartered Accountants of India, has not been considered.

4. The Company has not provided for the doubtful deposits, doubtful trade receivables and doubtful advances aggregating Rs. 184.21 lacs as aforesaid in view of the huge amount of losses carried forward and for reasons that a major portion of trade receivables is covered under a legal dispute contested as stated above in Note 14.

5. The Company does not have different segments and hence segment-wise reporting in terms of Accounting Standard, Segment Reporting - (AS-17) issued by the Institute of Chartered Accountants of India is not applicable. Further, the Company has not carried on any production during the financial year.

6. Depreciation has not been provided for since the Financial Year 1996-97.

7. RELATED PARTY DISCLOSURES UNDER ACCOUNTING STANDARD 18.

A. Relationship: Associate Companies

(i) WRM Pvt. Ltd.

(ii) East coast Steel Ltd.

B. Key Managerial Personnel:

Mr. Prithviraj S. Parikh

Mr. P. K. R. K.Menon

Related Party Transactions:

(ii) There are no write offs/write back of any amounts for any of the above related parties.

(iii) Other Transactions - Nil

8. Although, the Company has been making payment of lease rental charges to Lohitka Properties Pvt. Ltd., the lesser, in respect of Mulund property, these cheques have not been encashed for reasons known to the less or only.

9. Basic and Diluted Earning Per Share (AS -20)

For the purpose of calculation of Basic and Diluted Earning Per Share the following amounts are considered:

10. The Company owes an aggregate amount of Rs. 491.64 lacs inclusive of accrued interest of Rs. 311.47 lacs to its associate companies towards borrowings, which liability it is unable to discharge for obvious reasons of financial constraints.

11. Provision has not been made towards interest payable to the associate companies on their borrowings due to the Company having not earned any revenue/income or carried out any business activities during the financial year ended 31-03-2012. Due to losses, the Company has also not provided for taxation.

12. There has been no imports or expenditure in foreign currency either during the year or in the previous year and hence no relevant information is furnished.

13. Operating Lease:

a) Operating lease payment recognised in Statement of Profit & Loss amounting to Rs. 0.66 lacs (PY Rs. 0.66 lacs)

b) General description of the leasing arrangement:

i) Leased Assets : Land

ii) Future lease rentals are determined on the basis of agreed terms.

14. Previous Year's figures have been regrouped wherever necessary to make them comparable with those of current year figures.

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Mar 31, 2011

1 CONTINGENT LIABILITIES:

a) Having been dis-satisfied with the orders passed by DRAT on 12-10-2006 in the Appeals relating to O.A. Nos. 1808/2000 & 3202/2000, remanded for review by Bombay High Court vide order dated 21-07-2006, Writ Petitions have been filed in Bombay High Court for quashing the Orders of DRAT dated 31-12-2004 and 12-10-2006. In view of the matter being subjudice, liability if any, on this account cannot be determined or accounted for.

b) The Company has received a demand notice from BMC to effect payment of alleged arrears of property tax amounting to Rs. 28,36,540/- as at 31- 03-2005 which is being contested as there has not been any change of user in its leasehold land at Mulund, Mumbai. Bills for the period 01-04-2005 onwards appears to have been with-held by BMC, pending disposal of Company's appeal.

2 Sundry Debtors includes payment which are overdue amounting to Rs. 181.67 lakhs.

a) The Company has filed a suit for recovery against one of such customers i.e. M/s. Virgo Steels vide Ref. No. 4433 of 1994 in Mumbai High Court amounting to Rs.118.15 Lacs. The customer has however, disputed the dues and filed a cross suit vide Ref. No. 3188 of 1994. Both Suits are pending for hearing & disposal with Mumbai High Court. However, no provision has been made in the accounts for the same, pending final disposal of the suits.

b) An amount of Rs. 17.78 Lacs is due from M/s. Bharat Steel Corporation in respect of cheques dishonoured towards bills raised for sale of billets and the Company had instituted legal proceedings for the recovery of the same. However, the suit no. 1626 of 1995 is still pending for hearing before the Mumbai High Court.

c) An amount of Rs. 45.74 Lacs is due from Sterling Re-rolling Mills Ltd. on account of billets supplied but, payments withheld by them for reasons of commercial dispute. The company has however, not filed any suit for its recovery.

3 The Company has also not provided for the advances aggregating Rs. 2.55 lakhs as aforesaid in view of the huge amount of losses carried forward.

4 After the closure of the plant at Mulund on 01-12-1995, the remaining facilities have been impaired/ discontinued operation. The Company does not envisage any immediate possibilities of restructuring its activities in forseeable future. In view of this deferred taxation in terms of Accounting Standard, Accounting for Taxes on Income (AS-22), issued by the Institute of Chartered Accountants of India, has not been considered.

5 No provision has been made on advance to supplier, outstanding beyond 3 (three) years, which may not be realisable.

6 The Company does not have different segments and hence segment-wise reporting in terms of Accounting Standard, Segment Reporting - (AS-17) issued by the Institute of Chartered Accountants of India is not applicable. Further, the Company has not carried on any production during the financial year.

7 Depreciation has not been provided for since the Financial Year 1996-97.

8 RELATED PARTY DISCLOSURES UNDER ACCOUNTING STANDARD 18:

A. Relationship:- Associate Companies:-

(i) WRM Pvt. Ltd.

(ii) Eastcoast Steel Limited

B. Key Managerial Personnel:- (Common Managements)

Mr. Prithviraj S. Parikh

Mr. P. K. R. K. Menon

C. Related Party Transactions:-

(ii) There are no write offs/ write back of any amounts for any of the above related parties.

(iii) Other Transactions - Nil.

9 Although, the Company has been making payment of lease rental charges to Lohitka Properties Pvt. Ltd., the lesser, in respect of Mulund property, these cheques have not been encashed for reasons known to the lessor only.

10 The Company owes an aggregate amount of Rs. 494.24 lacs inclusive of accrued interest of Rs. 311.47 lacs to its director and associate companies towards loans & advances, which liability it is unable to discharge for obvious reasons of financial constraints.

11 Provision has not been made towards interest payable to the associate companies on their loans & advances due to the Company having not earned any revenue / income or carried out any business activities during the financial year ended 31-03-2011. Due to losses, the Company has also not provided for taxation.

12 PARTICULARS REGARDING LICENCED a INSTALLED CAPACITY, ACTUAL PRODUCTION, SALES, STOCKS, ETC.

a) Licensed capacity (ingots & billets) granted last has been 64,000 MT, but installed capacity is ' NIL' as the ministeel plant does not exist now.

b) In view of the Plant being closed and no manufacturing activities having been carried out since 1995, no information with regard to consumption of materials, production, stock - both opening & closing, sales, etc. are available and hence should be considered as 'NIL'.

13 There has been no imports or expenditure in foreign currency either during the year or in the previous year and hence no relevant information is furnished.

14 Previous Year's figures have been regrouped wherever necessary to make them comparable with those of current year figures.

---

Mar 31, 2010

1 CONTINGENT LIABILITIES :

a) Having been dis-satisfied with the orders passed by DRAT on 12-10-2006 in the Appeals relating to O.A. Nos. 1808/2000 a 3202/2000, remanded for review by Bombay High Court vide order dated 21-07-2006, Writ Petitions have been filed in Bombay High Court for quashing the Orders of DRAT dated 31-12-2004 and 12-10-2006. In view of the matter being subjudice, liability if any, on this account cannot be determined or accounted for.

b) The Central Excise Dept. has filed an appeal in the High Court at Bombay having been dissatisfied with the Order of Appellate Tribunal in the matter of Modvat credit availed during 1991 -92 (No. E/621 /01) decided in favour of the Company on 29-06-2005. The claim quantified at Rs. 65,55,948/- is however not tenable as per the legal advisor of the company.

c) The Company has received a demand notice from BMC to effect payment of alleged arrears of property tax amounting to Rs. 28,36,540/- as at 31-03-2005 which is being contested as there has not been any change of user in its leasehold land at Mulund, Mumbai. Bills for the period 01-04-2005 onwards appears to have been with-held by BMC, pending disposal of Companys appeal.

2. Sundry Debtors includes payment which are overdue amounting to Rs. 181.67 lakhs.

a) The Company has filed a suit for recovery against one of such customers i.e. M/s. Virgo Steels vide Ref. No. 4433 of 1994 in Mumbai High Court amounting to Rs. 118.15 lacs. The customer has however, disputed the dues and filed a cross suit vide Ref. No. 3188 of 1994. Both Suits are pending for hearing & disposal with Mumbai High Court. However no provision has been made in the accounts for the same, pending final disposal of the suits.

b) An amount of Rs. 17.78 lacs is due from M/s. Bharat Steel Corporation in respect of cheques dishonoured towards bills raised for sale of billets and the Company had instituted legal proceedings for the recovery of the same. However, the suit no. 1626 of 1995 is still pending for hearing before the Mumbai High Court.

c) An amount of Rs. 45.74 lacs is due from sterling re-rolling Mills Ltd. on account of billets supplied but, payments withheld by them for reasons of commercial dispute. The company has however, not filed any suit for its recovery.

d) The Company has also not provided for the doubtful debts and advances aggregating Rs. 184.21 lakhs as aforesaid in view of the huge amount of losses carried forward and for reasons that a major portion of sundry debtors is covered under a legal dispute contested as stated above.

3. After the closure of the plant at Mulund on 01-12-1995 the remaining facilities have been impaired / discontinued operation. The Company does not envisage any immediate possibilities of restructuring its activities in forseeable future.In view of this deferred taxation in terms of Accounting Standard, Accounting for Taxes on Income (AS-22) issued by the Institute of Chartered Accountants of India, has not been considered.

4. No provision has been made on advance to supplier, outstanding beyond 3 (three) years, which may not be realisable.

5. The Company does not have different segments and hence segment-wise reporting in terms of Accounting Standard, Segment Reporting - (AS-17) issued by the Institute of Chartered Accountants of India is not applicable. Further the Company has not carried on any production during the financial year.

6. Depreciation has not been provided for since the Financial Year 1996-97.

7. RELATED PARTY DISCLOSURES UNDER ACCOUNTING STANDARD 18.

Relationship:- Associate Companies:-

A. (i) WRM Pvt. Ltd.

(ii) Eastcoast Steel Limited

B. Key Managerial Personnel:- (Common Management) Mr. Prithviraj S. Parikh

Mr. P. K. R. K. Menon

Related Party Transactions:-

(i) Outstanding Loan Amount Payable to Associates and other Parties as at 31.03.2010

(ii) There are no write offs/write back of any amounts for any of the above related parties.

(iii) Other Transactions - Nil

8. Although, the Company has been making payment of lease rental charges to Lohitka Properties Pvt. Ltd., the lesser, in respect of Mulund property, these cheques have not been encashed for reasons known to the lessor only.

9. Basic and Diluted Earning Per Share (AS -20)

For the purpose of calculation of Basic and Diluted Earning Per Share the following amounts are considered:

10. The Company owes an aggregate amount of Rs. 489.80 lacs inclusive of accrued interest of Rs. 311.47 lacs to its associates towards loans & advances, which liability it is unable to discharge for obvious reasons of financial difficulties and lack of funds.

11. Provision has not been made towards interest payable to the associate companies on their loans & advances, due to the Company having not earned any revenue / income or carried out any business activities during the financial year ended 31-03-2010. Due to losses, the Company has also not provided for taxation.

12. PARTICULARS REGARDING LICENCED a INSTALLED CAPACITY, ACTUAL PRODUCTION, SALES, STOCKS ETC.

a) Licensed capacity (ingots 6 billets) granted last has been 64,000 MT, but installed capacity is NIL as the ministeel plant does not exist now.

b) In view of the Plant being closed and no manufacturing activities having been carried out since 1995, no information with regard to consumption of materials, production, stock - both opening 6 closing, sales etc. are available and hence should be considered as NIL .

13. There has been no imports or expenditure in foreign currency either during the year or in the previous year and hence no relevant information is furnished.

14. Previous Years figures have been regrouped wherever necessary to make them comparable with those of current year figures