1.  NATURE OF OPERATIONS :
 
 Adhunik Metaliks Limited having manufacturing facility at Sundargarh
 District, Rourkela, Orissa is primarily engaged in the manufacture and
 sale of steel, both alloy & non alloy.
 
                                                   ( Rs. in Lacs)
 
                                         31.03.2011        31.03.2010
 
 2.  Contingent liabilities not provided 
 for in respect of:
 
 a) Claims & Government demands against 
 the Company not acknowledged as debt:
 
 i) Excise*                                1,121.60         1,109.88
 
 ii) Sales Tax*                              618.27           596.29
 
 iii) Others                                 380.41                -
 
 * Against the above claims/demands, payments have been made under
 protest to the extent of Rs. 187.12 lacs (^203.09 lacs)
 
 b) Bills discounted and Bank Guarantees outstanding 2,452.00 I 1,362.06
 
 3.  a) The Rupee Term Loans of Rs. 86,404.74 lacs (Rs. 62,671.01 lacs)
 from banks are secured by way of equitable mortgage by deposit of title
 deeds of the Company''s immovable properties both owned and leasehold
 and building at Chadrihariharpur Kuarmunda, Sundargarh, Orissa and a
 first charge by way of hypothecation of the Company''s moveable assets
 including machinery, machinery spares, tools, furniture''s fixtures,
 Carnes etc. (both present and future).
 
 b) Cash credit and working capital facilities of Rs. 40,013.43 lacs
 (Rs.  33,481.79 lacs) from banks are secured by first charge by way of
 hypothecation of consumable stores, raw materials, finished goods,
 process stock and book debts (both present and future).
 
 c) Loan facility of Rs. 15,000.00 lacs from ICICI Bank is secured by a
 second charge on all movable and immovable fixed assets and pledge of
 300,000 shares of its subsidiary company, Orissa Manganese and Minerals
 Limited.
 
 The charge referred to in 5(a), (b) & (c) above rank parri passu
 amongst various banks.
 
 d) Rupee Term Loans and working capital facilities from banks (as
 specified in 5 (a), (b) & (c) above) as well as short term loans from
 Banks are further secured by personal guarantee of one or more promoter
 directors of the Company.
 
 e) Deferred Payment Credits are secured by hypothecation of the
 respective equipments/vehicles.
 
 f) Term loans aggregating to Rs. 11,095.27 lacs (Rs. 11,853.84 lacs)
 are repayable within one year.
 
 4.  The Company has given undertaking to the lenders not to dispose off
 its 51% shareholding in Orissa Manganese and Minerals Limited (OMM), a
 wholly owned subsidiary till the loan taken by OMM is paid in full.
 Further, the Company has also placed 200,000 shares held by it as
 investment in OMM as a security against the above loan.
 
 5.  a) In terms of Section 115JB of the Income Tax Act, 1961, Minimum
 Alternate Tax (MAT) amounting to Rs. 974.52 lacs (Rs. 1,125.84 lacs)
 for the year ended 31st March 2011 have been provided in the books of
 account.  Further, in terms of Accounting Policy 2(XVI)(d) above and
 because of the fact that the Company is not likely to have taxable
 income in the relevant period, MAT credit of Rs. 2,947.39 lacs (Rs.
 1,972.87 lacs) has not been recognized in the books of accounts.
 
 b) The Hon''ble High Court at Calcutta vide its Order dated March 29,
 2010 has allowed the Company to utilize the Securities Premium Account
 shown under the head ''Reserves and Surplus'' towards meeting the Net
 Deferred Tax liability upto Rs. 15,794.88 lacs. Accordingly, the
 Securities Premium Account has been utilized towards meeting the net
 deferred tax liability arisen during the year amounting to Rs. 1,289.03
 lacs (Rs. 3,545.74 lacs) instead of charging it off to profit and loss
 account. The above accounting treatment is not in line with Accounting
 Standard 22 Accounting for Taxes on Income (AS-22) notified by the
 Companies (Accounting Standards) Rules 2006 (as amended).
 
 6.  Derivative Instruments and Unhedged Foreign Currency Exposure as on
 the Balance Sheet date are as under :
 
 a) Forward Contract
 
 For minimizing the risk of currency exposure, the Forward Cover
 Contracts are of USD 1,500,000 (Nil) for trade receivables, USD
 25,192,798 (Nil) for trade payables and Nil (USD 27,593,802) for long
 term loans.
 
 b) Defined Benefit Plan
 
 The Company has a defined benefit gratuity plan. Every employee who has
 completed five years or more of service gets Gratuity on terms not
 lower than the amount payable under the Payment of Gratuity Act, 1972.
 The aforesaid scheme is unfunded and as such there are no plan assets.
 The following table summarizes (to the extent applicable) the
 components of net benefits / expenses recognized in Profit & Loss
 account and amount recognized in the balance sheet.
 
 7. Operating Lease
 
 The Company has obtained Liquid Oxygen Plant on operating lease. The
 lease rent payable per annum is Rs.312 Lacs (Rs. 312 Lacs). The lease
 term is for a period of 10 years and the initial term may be extended
 for such further period and on such terms and conditions as the parties
 may mutually agree. There is no escalation clause in the lease
 agreement.  There are no restrictions imposed by lease arrangements.
 There are no sub leases.
 
 8.  Stores & Spares amounting to Rs. 2,842.78 Lacs (Rs. 1,360.56 Lacs)
 are included under other heads in the Profit & Loss Account.
 
 9.  Excise duty on sales amounting to Rs. 12,488.45 lacs (Rs. 8,691.17
 Lacs) has been reduced from sales in Profit and Loss Account and excise
 duty on stocks amounting to Rs. 316.84 lacs (Rs. 1,204.22 Lacs)
 represents differential excise duty on opening & closing stock of
 finished goods.
 
 10. Interest in Partnership Firm
 
 The Company has entered into a Partnership Agreement with United
 Minerals (jointly controlled entity), a firm registered under The
 Indian Partnership Act, 1932, which is engaged in mining of limestone
 and dolomite.
 
 11. Segment Information
 
 a.  Business Segment: The Company''s business activity primarily falls
 within a single business segment i.e. Iron & steel business and hence
 there are no disclosures to be made under Accounting Standard-17, other
 than those already provided in the financial statements.
 
 b.  Geographical Segments: The Company primarily operates in India and
 therefore the analysis of geographical segment is based on the areas in
 which customers of the Company are located.
 
 c.  Since the Company has common fixed assets for producing goods for
 domestic and overseas markets, separate figures for fixed assets /
 additions to fixed assets for these two segments are not furnished
 
 12. Related Party Disclosures :
 
 a) Name of the related parties :
 
 Subsidiary Companies Adhunik Power Transmission Ltd.
 
 (Formely Unistar Galvanisers & Fabricators Ltd)
 
 Adhunik Power & Natural Resources Ltd.
 
 Neepaz V Forge (India) Ltd 
 
 Orissa Manganese & Minerals Ltd.
 
 Partnership Firm (Joint Venture)  
 
 United Minerals
 
 Key Management Personnel 
 
 Mr. Ghanshyam Das Agarwal (Chairman)
 
 Mr. Manoj Kumar Agarwal (Managing Director)
 
 Mr. Jugal Kishore Agarwal (Director)
 
 Mr. Nirmal Kumar Agarwal (Director)
 
 Relatives of Key Management personnel      
 
 Mr. Mohan Lal Agarwal (Brother of Mr Manoj Kumar Agarwal)
 
 Mr. Mahesh Kumar Agarwal (Brother of Mr Manoj Kumar Agarwal)
 
 Mrs. Sonika Agarwal (Wife of Mr. Manoj Kumar Agarwal)
 
 Mrs. Pramila Agarwal (Wife of Mr. Jugal Kishore Agarwal)
 
 Mrs. Anita Agarwal (Wife of Mr. Nirmal Kumar Agarwal)
 
 Mrs. Meena Agarwal (Wife of Mr. G. D. Agarwal)
 
 Mrs. Rita Agarwal (Wife of Mr. Mohan Lal Agarwal)
 
 Mrs. Chandrakanta Agarwal (Wife of Mr. Mahesh Agarwal)
 
 Mr. Naveen Agarwal (Son of Mr. Jugal Kishore Agarwal)
 
 Mrs. Ekta Agarwal (Wife of Mr. Naveen Agarwal)
 
 Mr. Sachin Agarwal (Son of Mr. Jugal Kishore Agarwal)
 
 Enterprises over which Key Management Personnel / Relatives have
 significant influence
 
 Adhunik Alloys & Power Ltd.
 
 Adhunik Corporation Ltd.
 
 Adhunik Infotech Ltd.
 
 Adhunik Industries Ltd. (w.e.f. 05.01.2010)
 
 Adhunik Meghalaya Steels (Private) Ltd.
 
 Adhunik Steels Ltd.
 
 Futuristic Steels Ltd.
 
 Mahananda Suppliers Ltd.
 
 Neepaz B.C. Dagara Steels Pvt Ltd.
 
 Sungrowth Shares & Stock Limited
 
 Swarnarekha Steel Industries Ltd
 
 Zion Steel Ltd.
 
 13. For valuation of finished goods and work in progress inventory, the
 cost computation basis during the year has been changed from annual
 weighted average to quarterly weighted average basis. The prices of
 major raw materials are now normally determined globally on quarterly
 basis and hence, the management believes that such change will reflect
 the fairest possible approximation to the cost incurred in bringing the
 items of inventory to their present location and condition as required
 under Accounting Standard -2 Valuation of Inventories. As a result of
 such change, the inventory valuation of finished goods and work in
 progress is higher by Rs. 1,239.95 lacs, with consequential impact on
 profit thereof.
 
 14. Previous year figures including those given in the brackets have
 been regrouped / rearranged wherever considered necessary.