BF Utilities

1 (i) Term Loan from Industrial Development Bank Of India Ltd., is
 secured by first charge by way of hypothecation of receivables, both
 present and future from sale of power/electricity and sale assignment
 of Sales Tax benefit pertaining to the Wind Mill Project at village
 Boposhi, Maloshi and Kadave Khurd, Dt. Satara, the amount lying in cash
 Collateral account and Stock, book debts, machinery etc. pertaining to
 the above Wind Mill Project. Secured by first charge by way of mortgage
 of land at village Boposhi,Maloshi and Kadave Khurd, Dt. Satara.
 pertaining to the above Wind Mill Project.
 
 (ii) Term Loan from Citicorp Finance (India) Ltd., is secured against
 pledge of shares held by Subsidiary Companies.
 
 (iii) Term Loan from Axis Bank Ltd., is secured by second charge on the
 movable and immovable assets of Wind Mill Project located at village
 Boposhi and Maloshi, Dt. Satara and pledge of Equity shares of Kalyani
 Steels Limited held by associ- ates and other group companies with a
 security cover of 2 times.
 
 2 Segment information, based on the consolidated financial statements
 of the Company and its Subsidiaries, Joint Ventures & Associates is set
 out in a separate statement annexed to the schedule.
 
 3 Related party disclosures have been set out in a separate statement
 annexed to this schedule. The related parties, as defined by Accounting
 Standard 18th Related Party Disclosure issued by the Institute of
 Chartered Accountants of India, in respect of which the disclosures
 have been made, have been identified and taken on record by the Board.
 
 4 The Company is liable to pay Minimum Alternate Tax under section 11
 5JB of Income Tax Act 1961 and accordingly provision for Tax has been
 made.
 
 5 Consequent to completion of the renewal of registration of the wind
 power generation project as a Clean Development Mechanism (CDM) project
 with UNFCCC, the Company has accrued income in respect of Certified
 Emission Reduction (CER) units, which are to be received on completion
 of further formalities, for the period 1 St April 2007 to 30th
 September 2008 aggregating Rs. 26 341 586/- (including for the year Rs.
 18279804/-) as reasonable certainty of their receipt.
 
 6 The Company has acquired Development Rights of 70,857 sq. mtrs.
 of Land situated in Pune for a consideration aggregating of 
 Rs. 134567106/- and in terms of Development Agreements the Company is
 entitled to construct buildings for residential / commercial /
 non-commercial use on the said land or part thereof, and also marketing
 of the same.
 
 7 Advance under an Arrangement represents advance from Bharat Forge
 Limited, to maintain and set up an advanced Training Facility to
 enhance its Human Resource Development Programme.
 
 8 Micro, Small and Medium Enterprises Development Act 2006 has come
 into force from 2nd October 2006 which has repealed the provisions of
 interest on payment to small scale and ancillary industrial undertaking
 act, 1993. On the basis of information available with the Company,
 regarding the status of suppliers as defined under the Micro Small and
 Medium Enterprises Development Act 2006, there are no dues to suppliers
 covered under above mentioned Act as at 30th September 2008.
 
 9 Significant accounting policies followed by the Company are as
 stated in the statement annexed to this schedule.
 
 10 Disclosures required as per Clause 32 of the Listing Agreement have
 been set out in a separate statement annexed hereto.
 
 11 Previous years figures have been regrouped wherever necessary.