NATURE OF OPERATION:

Tulsyan NEC Limited is engaged in the Manufacturing TMT bars, Coal Based Power Plant and Synthetics Woven Fabrics and Sacks. It has manufacturing plant at Gummudipoondi, Tamilnadu and Bangalore (Doddaballapura).

2. Segment Reporting

A. Primary Segment Reporting - by Business Segment on Type of Products

Segments have been identified in line with the Accounting Standard on Segment Reporting (AS 17), taking into account the type of products and differential risk and returns of the segments

3. Related parties Disclosure

Disclosure as required by Accounting Standards 18 "Related Party Disclosures" are given below: a) List of Related Parties

1. Cosmic Global Limited Subsidiary

2. Chitrakoot Steel & Power P Ltd Subsidiary

3. Tulsyan Power Limited Subsidiary

4. Balaji Engineering & Galvanizing Ltd Subsidiary

5. Color Peppers Media P Ltd. Subsidiary

6. T G Logistics P Ltd Subsidiary

7. Tulsyan Smelters P Ltd Related entity

8. Shri Lalit Kumar Tulsyan Executive Chairman/Key Management Person

9. Shri Sanjay Tulsyan Managing Director/Key Management Person

10. Shri A P Venkateswaran Director-Finance/Key Management Person

11. Shri Sanjay Agarwalla Whole-time Director/Key Management person

b) Transaction with related parties

Purchase of Goods - Subsidiary 1334.72 (Chitrakoot Steel & Power P Ltd)

Sale of Goods - Subsidiary 2836.34 (Chitrakoot Steel & Power P Ltd)

Sale of Goods - Related entity 1599.00 (Tulsyan Smelters P Ltd)

Purchase of Fixed Assets - Related entity NIL Sale of Fixed Assets - Related entity NIL Rendering Services - Related entity NIL

Receiving Services - Subsidiary 943.78 (T G Logistics P Ltd )

Receiving Services - Related entity 58.23 (Tulsyan Smelters P Ltd)

Agency Arrangements NIL

Leasing or Hire Purchase

Arrangement - Related entity NIL

Transfer of Research & Development NIL

Licence Agreements NIL

Interest Paid NIL

Outstanding balances as on 31.03.2015

Amount Receivable (Associates and Subsidiaries) 261.60

Amount Payable (Associates and Key Management Persons) 49.95 Equity Contribution in Subsidiary in Cash 791.36

Guarantees and collaterals NIL

Payment towards Management (Employment) contracts Key Management Personnel 190.52

5. Taxes on Income

Tax expenses for a year comprises of current tax and deferred tax.

Current tax is measured at the amount expected to be paid to the tax authority, after taking into consideration, the applicable deductions and exemptions admissible under the provisions of the Income Tax Act, 1961.

Deferred tax reflects the impact of current year timing difference between taxable income and accounting income for the year and reversal of timing difference of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date.

Deferred tax assets are recognized only to the extent that is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. If there is unabsorbed depreciation or carry forward of losses under tax laws, deferred tax assets are recognized only to the extent that is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Deferred tax resulting from timing differences which originate during the tax holiday period but are expected to reversed after such tax holiday period is recognized in the year in which the timing difference originate using the tax rates and laws enacted or subsequently enacted at the Balance Sheet date.

At each Balance Sheet date, the company reassesses unrecognized deferred tax assets. It recognizes unrealized deferred tax assets to the extent it has become reasonably certain or virtually certain, as the case may be, that sufficient taxable income will be available against which the deferred tax can be realized.

6. LEASE PAYMENTS AND RECEIPTS

Lease payments have been made towards land at Chennai and amortised on a straight line basis during the period of lease.

Lease payments have been made towards Hire Purchase of Vehicles. Lease charges have been debited to the Statement of Profit and Loss based on the certificate issued by the Lessor. The Principal amount of lease due has been disclosed in the Balance Sheet under Secured Loans.

7. The information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. There are no overdues to parties on account of principal amount and/or interest and accordingly no additional disclosures have been made.

8. Impairment of Fixed Assets

There being no indication of impairment of Asset determined by the Company, no loss has been recognized on impairment loss.

9. Borrowing Cost

In respect of new units/major expansions, the interest paid/payable on borrowing funds, attributable to construction of building and acquisition/erection of Plant and machinery is capitalized up to the date of construction/acquisition/erection of aforesaid assets all other borrowing costs are charged to the statement of profit and loss. During the year under audit the below mentioned amount has been capitalized as per AS-16 issued by the Institute of Chartered Accountants of India - Nil.

10. Expenditure incurred Rs. 50,80,003/- towards Right Issue of Shares and the same has been disclosed in the Balance Sheet under the head Miscellaneous Expenditure and would be written off over a period of five years after the completion of Rights Issues.

11. Previous year figures are regrouped and reclassified whenever necessary to conform to the current year classification as per Schedule III of the Companies Act, 2013.