A) Basis of Preparation
 
 The Financial Statements of the Company have been prepared in
 accordance with the Generally Accepted Accounting Principles in India
 (Indian GAAP) and comply in all material respects with the Accounting
 Standards notified under the Companies (Accounting Standards) Rules,
 2006, (as amended) and the relevant provisions of the Companies Act,
 1956. The Financial Statements have been prepared under the historical
 cost convention on an accrual basis except in respect of fixed assets
 for which revaluation is carried out. Further, insurance & other
 claims, on the ground of prudence or uncertainty in realisation, are
 accounted for as and when accepted / received. The accounting policies
 adopted in the preparation of Financial Statements are consistent with
 those used in the previous year except for the changes explained below:
 
 Presentation and disclosure of financial statements
 
 During the fifteen months period ended 30th June 2012, the revised
 Schedule VI notified under the Companies Act 1956, has become
 applicable to the Company, for preparation and presentation of its
 financial statements. The adoption of revised Schedule VI does not
 impact recognition and measurement principles followed for preparation
 of financial statements. However, it has significant impact on the
 presentation and disclosures made in the financial statements. The
 company has also reclassified the previous year figures in accordance
 with the requirements of the Revised Schdule VI, applicable in the
 current period.
 
 Dividend on Investment in subsidiary companies
 
 Till the year ended 31st March 2011, the Company, in accordance with
 the pre - revised Schedule VI requirement , was recognising dividend
 declared by the subsidiary companies after the reporting date in the
 current year''s statement of profit and loss if such dividend pertained
 to the period ending on or before the reporting date. The revised
 schedule VI , applicable for financial years commencing on or after 1
 April 2011, does not contain this requirement. Hence, to comply with
 Accounting Standard 9 Revenue Recognition, the company has changed its
 accounting policy for recognition of dividend income from subsidiary
 companies. In accordance with the revised policy , the company
 recognises dividend as income only when the right to receive the same
 is established by the reporting date. However, there is no impact of
 such change in the accounting policy on the current period''s financial
 statements as no such dividend has been declared by the subsidiary
 companies pertaining to the period ended on or before 30th June 2012.
 
 B) Use of Estimates
 
 The preparation of financial statements in conformity with the
 generally accepted accounting principles requires the management to
 make estimates and assumptions that affect the reported amounts of
 assets and liabilities and disclosure of contingent liabilities at the
 date of the financial statements and the results of operations during
 the reporting period. Although these estimates are based upon the
 management''s best knowledge of current events and actions, actual
 results could differ from these estimates.
 
 C) Tangible Fixed Assets :
 
 (i) Fixed Assets are stated at cost of acquisition inclusive of duties
 (net of CENVAT / VAT), taxes, incidental expenses,
 erection/commissioning expenses and interest, etc. up to the date the
 asset is ready to be put to use. In case of revaluation of fixed
 assets, the cost as assessed by the valuer is considered in the
 accounts and the differential amount is transferred to revaluation
 reserve.
 
 (ii) Machinery spares which can be used only in connection with an item
 of fixed assets and whose use as per technical assessment is expected
 to be irregular, are capitalized and depreciated over the residual
 useful life of the respective assets.
 
 (iii) Expenditure on new projects and substantial expansion:
 
 Expenditure directly relating to construction activity are capitalized.
 Indirect expenditure incurred during construction period are
 capitalized as part of the indirect construction cost to the extent to
 which the expenditure are related to construction activity or are
 incidental thereto.  Other indirect expenditure (including borrowing
 costs) incurred during the construction period which are not related to
 the construction activity nor are incidental thereto, are charged to
 the Statement of Profit and Loss. Income earned during construction
 period is deducted from the total of the indirect expenditure.
 
 D) Depreciation :
 
 (i) The classification of Plant and Machinery into continuous and
 non-continuous process is done as per technical certification and
 depreciation thereon is provided accordingly.
 
 (ii) Depreciation on Fixed Assets is provided on Straight Line Method
 (SLM) at the rates and in the manner prescribed in Schedule XIV of the
 Companies Act, 1956 except in case of road, boundary wall, drains and
 culverts on which depreciation has been provided @ 6.67% p.a.  as
 compared to Schedule XIV rate of 3.34% p.a.
 
 (iii) Leasehold land is amortised on a straight line method over the
 period of respective leases.
 
 (iv) Depreciation on fixed assets added / disposed off during the
 period, is provided on pro-rata basis with reference to the month of
 addition / disposal.
 
 (v) Discarded Fixed Assets awaiting disposal are valued at estimated
 realisable value and disclosed separately.
 
 (vi) Depreciation on Insurance Spares / standby equipments is provided
 over the remaining useful life of the respective mother assets.
 
 E) Intangibles
 
 (i) Acquired computer softwares and licenses are capitalized on the
 basis of costs incurred to bring the specific intangibles to its
 intended use.  These costs are amortized on a straight line basis over
 their estimated useful life of three years.
 
 (ii) Net Present Value paid to the various State Governments for
 restoration of forest as a pre-condition of granting license for mining
 in non- broken forest area (Mining Rights) are capitalized and
 amortized prospectively on a straight line basis over the remaining
 lease period.
 
 F) Foreign Currency Transactions : 
 
 i) Initial Recognition
 
 Foreign currency transactions are recorded in the reporting currency by
 applying to the foreign currency amount the exchange rate between the
 reporting currency and the foreign currency at the date of the
 transaction.
 
 ii) Conversion
 
 Foreign currency monetary items are reported using the exchange rate
 prevailing at the reporting date. Non-monetary items, which are
 measured in terms of historical cost denominated in a foreign currency,
 are reported using the exchange rate at the date of the transaction.
 Non-monetary items, which are measured at fair value or other similar
 valuation denominated in a foreign currency, are reported using the
 exchange rate at the date when such value was determined.
 
 iii) Exchange Differences
 
 Exchange differences arising on the settlement of monetary items or on
 reporting of such monetary items at rates different from those at which
 they were initially recorded during the year or reported in previous
 financial statements are recognized as income or as expenses in the
 year in which they arise.
 
 iv) Forward Exchange Contracts not intended for trading or speculation
 purposes:
 
 The premium or discount arising at the inception of forward exchange
 contracts is amortised as expense or income over the life of the
 contract. Exchange differences on such contracts are recognized in the
 statement of profit and loss in the year in which the exchange rates
 change. Any profit or loss arising on cancellation or renewal of
 forward exchange contract is recognized as income or as expense for the
 year.
 
 G) Investments
 
 Investments that are readily realisable and intended to be held for not
 more than a year are classified as current investments. All other
 investments are classified as long-term investments. Current
 investments are carried at lower of cost and fair value determined on
 an individual investment basis. Long-term investments are carried at
 cost. However, provision for diminution in value is made to recognise a
 decline ''other than temporary'' in the value of the investments.
 
 H) Inventories
 
 (i) Raw materials, stores and spares and trading goods are valued at
 lower of cost computed on moving weighted average basis and net
 realisable value. However, materials and other items held for use in
 the production of inventories are not written down below cost if the
 finished products in which they will be incorporated are expected to be
 sold at or above cost.
 
 (ii) Finished goods, work in progress and by products are valued at the
 lower of cost computed on weighted average basis and net realizable
 value. Cost includes direct materials and labour and a part of
 manufacturing overheads based on normal operating capacity. Cost of
 finished goods includes excise duty.
 
 (iii) The Closing stock of materials inter-transferred from one unit to
 another is valued at cost of the transferor unit or net realizable
 value, whichever is lower.
 
 (iv) Net realizable value mentioned above is the estimated selling
 price in the ordinary course of business less estimated costs of
 completion and estimated cost necessary to make the sale.
 
 I) Borrowing Costs
 
 Borrowing costs relating to the acquisition / construction of
 qualifying assets are capitalized until the time all substantial
 activities necessary to prepare the qualifying assets for their
 intended use are complete. A qualifying asset is one that necessarily
 takes substantial period of time to get ready for its intended use. All
 other borrowing costs are charged to revenue.
 
 J) Excise Duty & Custom Duty
 
 Excise duty is accounted for at the point of manufacture of goods and
 accordingly is considered for valuation of finished goods stock lying
 in the factories as on the balance sheet date. Similarly, customs duty
 on imported materials in transit / lying in bonded warehouse is
 accounted for at the time of import / bonding of materials.
 
 K) Earnings Per Share
 
 Basic earnings per share is calculated by dividing the net profit or
 loss for the period attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the period.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 L) Revenue Recognition
 
 Revenue is recognised to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 Sale of Goods
 
 Revenue from sale of goods is recognized when all the significant risks
 and rewards of ownership of the goods have passed to the buyer, which
 generally coincides with delivery. Sales are net of returns, claims,
 trade discounts, Sales Tax and VAT etc. Export turnover includes
 related export benefits.
 
 Interest Income
 
 Interest income is recognised on a time proportion basis taking into
 account the amount outstanding and the applicable interest rate.
 
 Dividends
 
 Dividends are recognized when the shareholders'' right to receive
 payment is established by the balance sheet date.
 
 M) Retirement and other Employee Benefits
 
 i) Retirement benefit in the form of Provident Fund is a defined
 contribution scheme and is charged to the Statement of Profit and Loss
 of the year when the contributions to the respective fund is due. The
 Company has no obligation other than the contribution payable to
 respective fund.
 
 ii) Gratuity liability is a defined benefit obligation and is provided
 for on the basis of an actuarial valuation, as per projected unit
 credit method made at the balance sheet date.
 
 iii) Short term compensated absences are provided for based on
 estimates. Long term compensated absences are provided for based on
 actuarial valuation, as per projected unit credit method.
 
 iv) Actuarial gains/losses are immediately taken to the Statement of
 Profit and Loss and are not deferred.
 
 N) Taxation
 
 i) Tax expense comprises of Current and Deferred Tax. Current income
 tax is measured at the amount expected to be paid to the tax
 authorities in accordance with the provisions of the Indian Income Tax
 Act, 1961.
 
 ii) Deferred income taxes reflect the impact of current year timing
 differences between taxable income and accounting income for the period
 and reversal of timing differences of earlier years. Deferred tax is
 measured using income tax rates enacted or substantively enacted at the
 Balance Sheet date. Deferred tax assets are recognised only to the
 extent that there is reasonable certainty that sufficient future
 taxable income will be available against which such deferred tax assets
 can be realised. In situations where the Company has unabsorbed
 depreciation or carry forward tax losses, all deferred tax assets are
 recognised only if there is virtual certainty supported by convincing
 evidence that they can be realised against future taxable profits.
 
 iii) The carrying amounts of deferred tax assets are reviewed at each
 balance sheet date. The Company writes-down the carrying amount of
 deferred tax asset to the extent that it is no longer reasonable
 certain or virtually certain, as the case may be, that sufficient
 future taxable income will be available against which deferred tax
 asset can be realized. Any such write-down is reversed to the extent
 that it becomes reasonable certain or virtually certain, as the case
 may be, that sufficient future taxable income will be available.
 
 iv) Minimum Alternative tax (MAT) credit is recognised as an asset only
 when and to the extent there is convincing evidence that the company
 will pay normal income tax during the specified period. In the year in
 which the MAT credit becomes eligible to be recognised as an asset in
 accordance with the recommendations contained in guidance note issued
 by the Institute of Chartered Accountants of India, the said asset is
 created by way of a credit to the Statement of Profit and Loss and
 shown as MAT Credit Entitlement. The company reviews the same at each
 balance sheet date and writes down the carrying amount of MAT Credit
 Entitlement to the extent there is no longer convincing evidence to the
 effect that the company will pay normal income tax during the specified
 period.
 
 O) Segment Reporting
 
 Identification of Segments
 
 The Company has identified Iron & Steel products as its sole operating
 segment and the same has been treated as primary segment. The Company''s
 secondary geographical segments have been identified based on the
 location of customers and then demarcated into Indian and overseas
 revenue earnings.
 
 P) Leases
 
 i) Finance Lease :
 
 Assets acquired under finance leases, which effectively transfer to the
 Company substantially all the risks and benefits incidental to the
 ownership of the leased items, are capitalized at the lower of the fair
 value and present value of the minimum lease payments after discounting
 them at an interest rate implicit in the lease at the inception of the
 lease term and disclosed as leased assets. Lease payments are
 apportioned between the finance charges and reduction of the lease
 liability so as to achieve a constant rate of interest on the remaining
 balance of the liability. Finance charges are charged directly to
 expenses account.
 
 Leased assets capitalized are depreciated over the shorter of the
 estimated useful life of the asset or the lease term.
 
 ii) Operating Lease:
 
 Leases where the lessor effectively retains substantially all the risks
 and rewards incidental to the ownership of the leased assets are
 classified as operating leases. Operating lease payments are recognized
 as an expense in the Statement of Profit and Loss on straight line
 basis over the lease term.
 
 Q) Cash and Cash Equivalents
 
 Cash and cash equivalents as indicated in cash flow statement comprise
 cash at bank and in hand and short-term investments with an original
 maturity of three months or less.
 
 R) Impairment of Assets
 
 The carrying amounts of assets are reviewed at each Balance Sheet date
 to determine if there is any indication of impairment based on
 external/internal factors. An impairment loss is recognized wherever
 the carrying amount of an asset exceeds its recoverable amount which
 represents the greater of the net selling price and ''Value in use'' of
 the repective assets. The estimated future cash flows considered for
 determining the value in use, are discounted to their present value at
 the pre tax discount rate that reflects current market assessments of
 the time value of money and risks specific to the asset.
 
 After impairment, depreciation is provided on the revised carrying
 amount of the assets over its remaining useful life.
 
 S) Derivative instruments
 
 In accordance with the ICAI announcement, derivative contracts, other
 than foreign currency forward contracts covered under Accounting
 Standard 11, are marked to market on a portfolio basis, and the net
 loss, if any, after considering the offsetting effect of gain on the
 underlying hedged item, is charged to the Statement of Profit and Loss.
 Net gain, if any, after considering the offsetting effect of loss on
 the underlying hedged item, is ignored.
 
 T) Provision
 
 A provision is recognized when the company has a present obligation as
 a result of past event, it is probable that an outflow of resources
 embodying economic benefits will be required to settle the obligation
 and a reliable estimate can be made of the amount of the obligation.
 Provisions are not discounted to its present value and are determined
 based on best estimate required to settle the obligation at the balance
 sheet date. These are reviewed at each balance sheet date and adjusted
 to reflect the current best estimates.
 
 U) Contingent Liabilities
 
 A contingent liability is a possible obligation that arises from past
 events whose existence will be confirmed by the occurrence or
 non-occurrence of one or more uncertain future events beyond the
 control of the company or a present obligation that is not recognized
 because it is not probable that an outflow of resources will be
 required to settle the obligation. The company does not recognize a
 contingent liability but discloses its existence in the financial
 statements.
 
 V) Measurement of EBITDA
 
 As permitted by the Guidance Note on Revised Schedule VI to the
 Companies Act, 1956, the Company has elected to present earnings before
 interest, tax, depreciation and amortisation (EBITDA) as a separate
 line item on the face of the Statement of Profit and Loss.