a) The Term Loan from State Bank of Bikaner and Jaipur is secured by First hypothecation change by covering entire Fixed Assets of the Company. Colleterial security by extending of 2nd change over Company's entire Current Assets (present and future) and personal Guarantee of promoter director Shri Raj Kumar Rathi.

b) Balance of Term Loan is payable in 6 quarterly installments started from April, 2015 (Previous year repayable in 10 quarterly installments from April, 2014).

c) The Term Loan from State Bank of India is secured by second pari passu charges (including) equitable mortgage over entire Fixed Assets of the Company. Collateral security by extending of 2nd charge over Company's entire Current Assets (present and future) along with 2 crores TDR (exclusive of SBI) and personal Guarantee of two Directors.

d) The Term Loan from RIICO Limited is secured by second pari passu charges (including) equitable mortgage over entire Fixed Assets of the Company. Collateral security by extending of 2nd pari passu charge over Company's entire Current Assets (present and future) and personal Guarantee of two directors.

e) Balance outstanding of Rs. 9,50,00,000/- of Term Loan-I from SBI is payable in 8 quarterly installments started from April, 2015 (Previous year repayable in 12 quarterly installments from April, 2014).

f) Balance outstanding of Rs. 4,60,00,000/- of Term Loan-II from SBI is payable in 12 quarterly installments started from April, 2015 (Previous year repayable in 22 quarterly installments from December, 2014).

g) Balance outstanding of Rs. 14,09,01,258/- of Term-III from SBI is payable in 20 quarterly installments started from April, 2015 (Previous year repayable in 19 quarterly installments from April, 2014).

h) Balance outstanding Rs. 6,81,81,822/- of Term Loan from RIICO Ltd. is payable in 15 quarterly installments started from April, 2015 (Previous year repayable in 19 quarterly installments from April, 2014). j) Car Loan are secured against hypothecation of vehicles purchase thereunder. Repayment of monthly installment till the tenure of loan concerned.

Notes:

a) The Working Capital limit from State Bank of Bikaner and Jaipur is covered by way of hypothecation over entire Current assets of the Company. Collateral security emending or 2nd charges over Company's entire fixed assets by way of equitable mortgage of Factory Land and Building at Bhiwadi, Rajastan and Persona guarantee of promoter director Shri Raj Kumar Rathi.

b) The Working Capital limit from State Bank of India is secured by first pari passu charges by way of hyphothecation over entire current assets of the Company. Collateral security by extending of 2nd pari passu charges over Company's entire fixed assets by way of equitable mortgage of Factory Land and Building and Plant & Machinery at Chopanki, Rajastan aling with 2 crores TDR (exclusive for SBI) and personal guarantee of two Directors.

c) The Working Capital limit from Bank of Maharastra is secured by first pari passu charges by way of hypothecation over entire current assets of the Company. Collateral security by extending of 2nd pari passu charges over Company's entire fixed assets by way of equitable mortgage of Factory Land and Building and Plant & Machinery at Chopanki, Rajasthan and personal guarantee of two Directors.

2. Non Current Investment

a) Market value of quoted investment is Rs .82,206/- (Previous year -Rs. 75,231/-).

3. PROVISION FOR CURRENT AND DEFERRED TAX

Provision far current tax assets and lability is estimated as per provisions of the Income Tax Act. 1961.

Deferred Tax Assets/Liabilities is recognized subject to the consideration of prudence on timing difference being the difference between taxable incomes and accounting income that originate in one period end are capable of reversal in one or more period. The components of Defened Tax Assets/ liabilities in accordance with the AS-22 "Accounting for taxes on Income" as on 31.03.2015 are as follows:

4. RELATED PARTY DISCLOSURES

In accordance with ihe Accounting Standards rAS-10) on Related Party Disclosures, where control exists and where key management personnel are able to exercise significant influence and, where transactione have taken place during tne year, along with description of re ationahip as ide.ntified are given bek*v:

5. Interest @10% per annum has been provided on security deposit received from dealers.

6. Sales include trading sales of Rs. 19,34,65,524 (Previous Rs. 21,60,00,120).

7. In the opinion of the Management all the current assets are realizable at the stated value.

8. CONTINGENT LIABILITIES

Contingent Liabilities not provided for:

I. Letter of Credit established in favour of the suppliers for raw materials Rs.1,34,77,210/- (Previous year Rs.1,13,95,403/-).

II. Bank Guarantee Rs.11,00,000/- (Previous year Rs.1,00,000/-).

III. The Company has given corporate to its subsidiary M/s RGTL Industries Limited for loan taken by others from bank or financial institutions.

9. Necessary disclosures required under the Micro, Small and Medium Enterprises Development Act,2006, can only be considered once relevant information to identify the suppliers who are covered the said Act are received from such parties/suppliers.

10. Expenditure in Foreign Currency is Rs. Nil (Previous year Rs.Nil)

11. EARNINGS PER SHARE

The basic earnings per share is calculated by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the year.

12. The Company has made investment in M/s Rathi Steel And Power Limited which is listed in stock exchange. The company has not made a provision of diminution in investment of Rs.11,63,344/- .

13. To comply with the guidance note on "Accounting Treatment of excise duty" issued by the Institute of Chartered

Accountants of India, excise duty amounting to Rs. 12,11,418/- has been included in the value of inventories as on 31st March, 2015 and the corresponding amount of Excise Duty payable has been included in other liabilities. However this accounting policy has no impact on the profit for the year.

14. Balance of debtors, creditors, loans and advances are subject to reconciliation and confirmation.

15. Previous year figures have been regrouped / rearranged wherever necessary, to correspond to current year figures.