1. CONTINGENT LIABILITIES NOT PROVIDED FOR

a) According to the information and explanations given to us, an amount of Rs. 748.52 Lacs, (Rs. 659.88 Lacs) of MSL towards Customs Import Duty, Interest & Penalty on the capital goods imported under EPCG Scheme & resultant export obligation not fulfilled is payable by the company. Proportionate custom duty amount saved, in respect of Advance Import License against which export obligation is pending, is Rs. 260.84 Lacs (Rs. 221.82 Lacs) Bank Guarantees issued against the same is Rs. 101.10 Lacs (Rs. 101.10 Lacs) & an amount of Rs. 133.55 lacs (Rs. 112.68 lacs) of MEL towards Custom Duty saved on Import of Capital goods under EPCG scheme & an amount of Rs. 33.46 lacs (Rs.21.52 lacs) of MTL towards Custom Duty saved on Import of Capital goods under EPCG scheme and Bank Guarantees issued against the same is Rs. 10.670 Lacs (Rs. 9.00 Lacs) & Rs. 18.07 lacs (Rs. 11.62 Lacs) respectively. Further an amount of Rs. 655.01 Lacs (239.16 Lacs) of MSL is pending towards the Excise Duty, Interest & Penalty claims made by the various Central Excise authorities, the company has preferred Appeals against such orders, at the appropriate levels. An Amount of Rs. 37.99 lacs (Rs.32.05 lacs) of MEL towards Excise Duty & Penalty, & an amount of Rs. 74.49 lacs (Rs. 16.00 Lacs) of MTL towards Excise duty and Penalty. Flowever, there is an amount of Rs. 2.43 lacs towards Income Tax demand of MEL and an amount of Rs. 3.40 lacs towards Income Tax demand of MTL is payable in respect of income tax. There no other , wealth tax, sales tax, custom duty and excise duty were outstanding as at 31st March, 2014 for a period of more than six months from the date they became payable.

b) Custom duty saved on import of total Capital goods under EPCG Scheme is Rs 137.50 Lacs (Rs. 137.50 Lacs). Bank Guarantee issued against the same is Rs. 70.37 Lacs (Rs 70.37 Lacs). Total export obligation under the EPCG Scheme was USD 81.25 Lacs.

c) Bank Guarantee for obtaining power given to Gujarat Electricity Board is Rs. 5.00 Lacs (Rs. 5.00 Lacs)

2. Sundry debtors, creditors and advances are subject to confirmation and reconciliation.

3. The opinion of Board of Directors, the Current assets, loans and advances have a value of at least equal to the amounts shown in the balance sheet. If realized in the ordinary course of business provision for all known liabilities is adequate and not in excess of amount considered reasonably necessary. There are no contingent liabilities other than those stated in Note No. 1.

4. The company operates in one segment only, of manufacturing Stainless Steel, Copper and Brass Tubes, Bars, Ingots etc. Hence in the opinion of the management this is the only reportable segment. As per accounting standard 17 on segment reporting issued by the Institute of Chartered Accountants of India.

5. Related Party Disclosures :

I. List of Related Parties over which control exists

Sr. No. Related Parties

I Associates

Mardia Tube & Wire Industries

II Key Management Personnel (KMP)

Surendra Mardia

Ravindra Mardia Omana Nayak

HI Relatives & Enterprises of KMP

Sunita Mardia Bina Mardia Gaurav Mardia

II Names of the Related Parties with whom transactions were carried out during year and description of relationship

Sr. No. Name of the Related Party

I Associates

Mardia Tube & Wire Industries

II Key Management Personnel (KMP)

Ravindra Mardia

Omana Nayak

6. Additional information pursuant to the provision of paragraphs (3) & (4) of part II of schedule VI to The Company's Act, 1956, read together with other notes.

7. The Company has not received any information from any of the suppliers of their being a small scale industrial unit. Hence the amount due to small scale industrial unit outstanding as on 31" March, 2015 are not ascertainable.

8. Figures for the previous year have been regrouped, reclassified wherever necessary to make them comparable with the current year's figures. Figures in the bracket, wherever appeared are for previous year.