A provision is recognized if, as a result of a past event, the Group has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where 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. Accordingly the Contingent Liabilities of the Company are noted below:

a) The management has reported that there is no contingent liability in respect of Bank guarantee except the bank guarantees of aggregate of Rs.19,40,000.00/- lacs given to four power distribution companies, against which there is F.D of Rs.4,85,000/- lying with bank. Bank guarantee claim period expired and there is no outstanding BG .

b) Tata SSL Limited has filed a Summary Suit against the company for a claim of Rs. 41,48,696.00/- plus interest. As per company liabalities is Rs. 32,76,471/- The company had accounted for Rs.32,76,471.00/- in its books of accounts being amount payable to Tata SSL Limited. Ta ta SSL had already orally committed to us that they will start supplying material to us and we gradually pay their dues in installments as mutually decided. As and when, the particular requirement of material arises, the company will proceed. Accordingly, the difference amount of claim is contingent. The matter has not yet come for hearing till date.

c) Pankaj Metals Pvt.Ltd. has filed summary suit against the company for a claim of Rs. 9106848/- Which is pending before the Hon'ble high court. The company had filled an affidavit against their claim. The hon'ble High court transferred the suit to the list of commercial causes.

2. Onerous Contract:

Provisions for onerous contracts are recognized when the expected benefits to be derived by the Group from a contract are lower than the unavoidable costs of meeting the future obligations under the contract. The provision is measured at lower of the expected cost of terminating the contract and the expected net cost of fulfilling the contract. There are no such contracts entered into by the Company.

3. Balances of sundry debtors, creditors, loans & advances are as provided by the Management if any. , management has been told to confirm the balances of sundry debtors, creditors and loans and they have replied that the same will be provided later on.

4. During the Year Bad Debts of Rs.36,36,198.03/- has been charged to Profit &Loss Account and procedure for the Bad debts have been observed by the Assessee by way of Communication and Reminders.

5. In the opinion of Board of Directors, Current Assets, Loans & Advances have a value on realization at least equal to the amount at which they are stated in the Balance Sheet. Adequate provisions have been made in account for all known liabilities except stated otherwise.

6. Based on the information with the Company, there are no suppliers who are registered as Micro, Small, and Medium Enterprise as at 31.03.2014 in terms of the provisions of " The Micro, Small, and Medium Enterprise Development Act, 2006."

7. In view of the suspension of business of the company, the Whole Time Director has claim only salary and not claimed any commission, P.F., perquisites & other funds hence the computation of net profit under section 349 of the Companies Act, 1956, is not required.

8. Since company has suspended its manufacturing and business activity and hence laborers at the plant are laid off; their balances are yet to be settled. The Company is in the process of clearing the dues and partial compensation has been given for the same.

9. a) As far as the secondary business segment is concerned the operations of the company are only spread within the geographical region of India and there are no activities outside India.

b) Segments have been identified and reporting is done according to the nature of products and services, the differing risk and returns, the organisation structure and internal financial reporting systems.

c) Segment Revenue, results, assets and liabilities are reported, wherever possible, based on the respective amount identifiable to each of the segments and amounts allocated on reasonable basis.

10. There are no Related Party Trans actions as certified by the Management in this regards, except the loans from Directors as mentioned in the financial statements.

11. Previous year figures are regrouped, rearranged and rounded off wherever necessary.

12. The Break up of the Deferred Tax Li ability for the year is as under:

Refer Schedules forming part of the Balance sheet - Schedule No.9