1.1.1 The Company has only one class of shares referred to as equity
 shares having a par value of Re 1/-. Each holder of equity shares is
 entitled to one vote per share. In the event of liquidation, the equity
 shareholders are eligible to receive the remaining assets of the
 company, after distribution of all preferential amount, in proportion
 of their shareholding.
 
 1.1.2 The dividend proposed by the Board of Directors is subject to the
 approval of the shareholders in the ensuing Annual General Meeting.
 
 1.1.3 During the year ended 31 March 2012, the amount of per share
 dividend recognized as distribution to equity shareholders was Re. 0.50
 
 1.2.1 The Company through Qualified Institutional Placements had issued
 33568312 warrants at a price of Rs. 3 each, entitling the holder to 1
 (one) equity share. As per terms and conditions of the issue, the
 warrant holders have an option to convert, warrant into equity at any
 time on or after three years from the date of allotment (i.e.
 08/02/2010) and upto five years from the date of allotment (i.e.
 08/02/2010) at exercise price of Rs. 59.58 per share. The warrant issue
 price aggregating to Rs. 1,007.05 lakhs, being non adjustable/non
 refundable has been credited to Capital Reserve.
 
 1.2.2 Premium on Zero Coupon Convertible Bond has been provided
 proportionately and accordingly Rs. 519.88 lakhs (out of total
 redemption premium amounting to Rs. 3,563.48 lakhs) (previous year Rs.
 611.29 lakhs, out of total redemption premium amounting to Rs. 3,137.73
 lakhs) on this account has been debited to Securities Premium Account.
 
 1.3.1 11.80% Non Convertible Debentures (privately placed) are secured
 by first pari-passu charge on company''s fixed assets (immovable and
 movable) including land and buildings both present and future other
 than assets located at Chennai and Elavur. However the Company
 exercised the put option during the year and re-paid the outstanding
 amount.
 
 1.3.2 9.15% Non Convertible Debentures (privately placed) are secured
 by second pari-passu charge on company''s fixed assets (immovable and
 movable) including land and buildings both present and future other
 than assets located at Chennai and Elavur. These debentures were
 allotted on 8th February, 2010 and redeemable at par on 8th February,
 2013.
 
 1.3.3.1 Term loan from a financial institution are secured by way of
 first pari-passu charge over the movable fixed assets, lands and other
 immovable properties of the Company both present and future other than
 assets located at Chennai and Elavur.
 
 1.3.3.2 Term loan of Rs. 1,50,00 lakhs is repayable in 16 quarterly
 equal Installments of Rs. 9,37.50 lakhs from 14th August 2010 and term
 loan of Rs. 1,00,00 lakhs is repayable in 17 quarterly equal
 installments of Rs. 5,88.23 lakhs from 30th December 2011. The interest
 rate ranges from 10% to 12%.
 
 1.3.4.1 External Commercial Borrowing of Rs. 3,94,24.25 lakhs is
 secured by way of first pari-passu charge on all immovable and movable
 Fixed Assets, both present and future of the Company other than assets
 located at Chennai and Elavur, and External Commercial Borrowing of Rs.
 3,51,00.30 lakhs is to be secured by way of first pari-passu charge on
 all immovable and movable Fixed Assets, both present and future of the
 Company other than assets located at Chennai and Elavur.
 
 1.3.4.2 External Commercial Borrowings of Rs. 3,94,24.25 lakhs is
 repayable in 3 annual installments of 33.25% in July''2013, 33.25% in
 July''2014 & 33.50% in July''2015 and external commercial borrowings of
 Rs. 3,51,00.30 lakhs is repayable in 12 Semi annual installments from
 29th August''2015. The interest rate ranges from 6M Libor   200 to 500
 bps.
 
 1.4.1 Working Capital facilities from Banks (both fund based and non
 fund based) are secured by pari passu charge by way of joint
 hypothecation of inventories and book debts, both present and future.
 
 1.5.1 Including acceptances of Rs. 1,05,62.71 lakhs (previous year Rs.
 2,39,67.81 lakhs)
 
 1.5.2 Disclosure of Trade payables is based on the information
 available with the company regarding the status of the suppliers as
 defined under the  Micro, Small and Medium Enterprise Development
 Act, 2006 (the Act). There are no delays in payment made to such
 suppliers and there is no overdue amount outstanding as at the balance
 sheet date. Based on above the relevant disclosures u/s 22 of the Act
 are as follows :
 
 1.6.1 Other provisions include (a) provision relating to indirect
 taxes in respect of proceedings of various excise duty matters -
 carrying amount at the end of the year Rs. 5,00.00 lakhs and carrying
 amount at the beginning of the year Rs. 5,00.00 lakhs. No amount was
 used and reversed during the year. Outflows in these cases would depend
 on the final developments/outcomes; (b) Other class of provisions
 related to disputed customer claims/rebates/demands - carrying amount
 at the end of the year Rs. nil and at the beginning of the year Rs.
 28,40.00 lakhs. Amount reversed during the year was Rs. 28,40.00 lakhs.
 
 Notes :
 
 1.7.1.  Plant and Equipments indudes Rs.8,03.021akhs (Previous year
 Rs.3,40.87 lakhs) being contribution for laying the Power line, the
 ownership of which does not vest with the company
 
 1.7.2 Depreciation and amortization for the year includes Rs.11,90.62
 lakhs (Previous year Rs. 10,92.69 lakhs) transferred to Pre-operative
 expenses.
 
 1.7.3 Leasehold Land of Rs.2,04.00 lakhs( Previous Year Rs.2,04.00
 lakhs) is pending execution of lease agreement and registration
 thereof.
 
 1.7.4 Freehold land includes Rs. 1,31.39 lakhs (Previous year
 Rs.2,05.97 lakhs) in respect of which the execution of conveyance deeds
 is under process.
 
 1.7.5 Plant and Equipments includes Rs. 24,98.72 lakhs (Previous year
 Rs. 24,98.72 lakhs) being cost of wagons procured under Wagon
 Investment Scheme.
 
 1.7.6 Other adjustment(net) includes Rs. 4,74.39 lakhs(Previous Year
 17.70 lakhs) being interest capitalised during the year, Rs. 359.41
 lakhs(Previous Year nil) representing foreign exchange fluctuation.
 
 1.7.7.  Railway siding includes Rs. 40,35.96 lakhs (Previous year Rs.
 nil) being amount incurred for construction, the ownership of which
 does not vest with the company
 
 1.7.8 Land with factory buildings (net block Rs. 61.02 lakhs) at
 Elavur plant of the Company are mortgaged in the favour of lender to
 Electrosteel Steel limited, an associate of the Company
 
 1.7.9 Refer note 2.3 and 2.7
 
 1.8.1 500000000 Equity shares of Rs 10/- each fully paid up of
 Electrosteel Steels Ltd. aggregating Rs. 5,00,00.00 lakhs held by the
 Company as Investment have been pledged in favour of Electrosteel
 Steels Ltd. lenders for securing financial assistance to Electrosteel
 Steels Ltd.
 
 1.8.2 The Company has investment in equity shares of Domco Private
 Limited (DPL), a Company incorporated in India, and has joint control
 (proportion of ownership interest of the Company being 50%) over DPL
 along with other venturers (the Venturers). The Venturers had filed a
 petition before the Company Law Board, Principal Bench, New Delhi (CLB)
 against the Company on various matters including for forfeiture of the
 Company''s investment in equity shares of the DPL. The Company had
 inter alia filed petition before the Hon''ble High Court of Jharkhand
 at Ranchi,. The Hon''ble High Court of Jharkhand at Ranchi upheld the
 Company''s appeal and decided that the matter would have to be
 referred for Arbitration. The Venturer has challenged the aforesaid
 judgment in the Divisional Bench of the Hon''ble High Court of
 Jharkhand at Ranchi. Pending final outcome of the matter and since, the
 other Venturer are not providing the financial statements of DPL,
 disclosures as regards contingent liability and capital commitments, if
 any, aggregate amounts of each of the assets, liabilities, income and
 expenses related to the Company''s interest in DPL has not been made
 in these financial statements.
 
 1.8.3 The Company''s investment in Electrosteel Steels Limited being
 strategic and long term in nature, no provision has been considered
 necessary with regard to diminution in market value of these
 investment.
 
 1.9.1 Quoted Investments for which quotations are not available have
 been included in the market value at the face value/paid up value,
 whichever is lower except in case of debenture, bonds and government
 securities where the net present value at current yield to maturity
 have been considered.
 
 1.10.1 Includes loans and advances to employees.
 
 1.10.2 Includes Rs. 2,34.59 lakhs (previous year Rs. 60.98 lakhs) paid
 towards share application money.
 
 1.10.3 In the opinion of the Board of Directors, current assets and
 loans and advances have the value at which these are stated in the
 Balance Sheet, unless otherwise stated and adequate provisions for all
 known liabilities have been made and are not in excess of the amount
 reasonably required.
 
 1.10.4 Security deposits include Rs. 5,57.50 lakhs (previous year Rs.
 5,57.50 lakhs) with Private Limited Companies in which directors are
 interested as a member / director.
 
 1.11.1 Balances of Trade receivables including for Turnkey Contracts,
 Work-in-progress, Creditors and advances are subject to
 confirmation/reconciliation and adjustments in this respect are carried
 out as and when amounts thereof, if any are ascertained.
 
 1.12.1 Fixed Deposits with Banks include Fixed Deposit of Rs. 4,96.70
 lakhs (previous year Rs. 4,08.28 lakhs) lodged with Government
 Departments, Customers and Banks.
 
 1.13.1 Includes Rs. 9,97.93 lakhs (previous year Rs. nil) receivable
 from banks on account of derivative settlement.
 
 1.14.1 Miscellaneous expenses include Charity and Donation of Rs. 15.78
 lakhs (previous year Rs. 63.97 lakhs), Rs. nil (previous year Rs.
 3,00.00 lakhs) towards relocation of certain assets of Elavur unit.
 
 1.14.2 The Marked-to-Market losses on derivative contract for the year
 stood at Rs. 68,61.35 lakhs (previous year Rs. 18.26 lakhs).  Even
 though such losses have not been determined and accrued during the
 year, keeping in view the announcement of Institute of Chartered
 Accountants of India dated March 29, 2008 regarding Accounting for
 Derivatives, the Company has recognized losses in the Statement of
 Profit and Loss for the year.
 
 1.14.3 The Company has certain operating lease arrangements for office
 accommodations etc. with tenure extending upto 9 yrs.  Term of certain
 lease arrangements include escalation clause for rent on expiry of 36
 months from the commencement date of such lease and deposit / refund of
 security deposit etc. Expenditure incurred on account of rent during
 the year and recognized in the Statement of Profit and Loss amounts to
 Rs. 5,61.03 lakhs (previous year Rs. 5,15.86 lakhs).
 
 1.14.4 During the year, the Company has incurred Rs. 91.44 lakhs
 (previous year Rs 83.26 lakhs) on account of research and development
 expenses which has been charged to Statement of Profit and Loss.
 
 1.15.1 The Company has provided for Minimum Alternate Tax (MAT). The
 Company is entitled to MAT credit and accordingly based on evidences
 MAT credit of Rs. 7,00.21 lakhs (previous year Rs. Nil) has been
 recognised in this financial statements.
 
 Defined Benefit Scheme
 
 The employee''s gratuity fund scheme managed by Life Insurance
 Corporation of India and ICICI Prudential Life Insurance Company Ltd.
 is a defined benefit plan. The present value of obligation is
 determined based on actuarial valuation using the Projected Unit Credit
 Method, which recognizes each period of service as giving rise to
 additional unit of employee benefit entitlement and measures each unit
 separately to build up the final obligation.
 
 Notes :
 
 i) Assumptions relating to future salary increases, attrition, interest
 rate for discount & overall expected rate of return on Assets have been
 considered based on relevant economic factors such as inflation, market
 growth & other factors applicable to the period over which the
 obligation is expected to be settled.
 
 ii) The Company expects to contribute Rs 1,30.00 lakhs (previous year
 Rs 1,00.00 lakhs) to Gratuity fund in 2012-13.
 
 1.16 The expenses incurred for projects/assets during the
 construction/mine development period are classified as Pre-operative
 Expenses pending capitalization and are included under capital work
 in progress and will be allocated to the assets on completion of the
 project/assets. Consequently expenses disclosed under the respective
 head are net of amount classified as preoperative expenses by the
 Company. The details of these expenses are as follows :
 
 1.17 As regards construction contracts in progress as on 31.03.2012,
 aggregate amount of costs incurred and recognised profit (less
 recognized losses) upto the year end (to the extent ascertained by the
 management), aggregate amount of advances received and aggregate amount
 of retentions are Rs. 1,79,61.59 lakhs, Rs. 5,96.34 lakhs and Rs.
 10,10.09 lakhs respectively.  (previous year Rs. 2,87,81.12 lakhs, Rs.
 8,23.69 lakhs and Rs.7,90.41 lakhs respectively).
 
 i) The Company has disputed downward revision in the prices effected by
 the purchaser subsequent to sale of certain specified materials. In the
 opinion of the management and also on the merit of the case, as advised
 legally no liability is likely to arise. The matter is subjudice and
 pending final judgement the amount payable, if any is not ascertainable
 presently.
 
 Note : Future cash outflows, if any, in respect of (a) to (d), and (i)
 above is dependent upon the outcome ofjudgments / decisions.
 
 1.18 Related party disclosure as identified by the management in
 accordance with the Accounting Standard (AS) 18 on Related Party
 Disclosures are as follows :
 
 A) Names of related parties and description of relationship
 
 1) Subsidiary Company Electrosteel Europe SA
 
 Electrosteel Algeria SPA 
 
 Electrosteel Castings (UK) Limited
 
 Electrosteel USA LLC
 
 WaterFab, LLC (100% subsidiary of Electrosteel USA, LLC) 
 
 Mahadev Vyapaar Private Limted 
 
 Electrosteel Trading S.A, Spain Singardo International Pte Ltd.
 
 2) Associate Company Lanco Industries Ltd.
 
 Electrosteel Steels Limited (Formerly Electrosteel Integrated Limited)
 
 Electrosteel Thermal Power Ltd.
 
 3) Joint Venture North Dhadhu Mining Company Pvt. Ltd.
 
 Domco Private Limited
 
 4) (a) Key Management
 
 Personnel (KMP)
 
 Mr. Umang Kejriwal (Managing Director)
 
 Mr. Mayank Kejriwal (Joint Managing Director )
 
 Mr. Uddhav Kejriwal (Wholetime Director)
 
 Mr. Vyas Mitre Ralli (Wholetime Director)
 
 Mr. Mahendra Kumar Jalan (Wholetime Director)
 
 Mr. Rama Shankar Singh (Wholetime Director)
 
 Mr. S Y Rajagopalan (Director)
 
 4) (b) Relatives of Key Management
 
 Personnel (KMP)
 
 Smt. Uma Kejriwal-mother of Mr. Umang Kejriwal-Managing Director Mr. S.
 Y Ganapathy - brother of Mr. S Y Rajagopalan, Director Umang
 Kejriwal(H.U.F)
 
 5) Enterprise where KMP/Relatives of KMP have signifinant influnce or
 control
 
 Global Exports Ltd.
 
 G. K. & Sons Private Limited
 
 Badrinath Industries Ltd.
 
 Akshay Ispat & Ferro Alloys Pvt. Ltd.
 
 Electrocast Sales India Ltd
 
 Tulsi Highrise Pvt. Ltd.
 
 Wilcox Merchants Pvt. Ltd.
 
 Murari Investment & Trading Company Ltd.
 
 Electrosteel Thermal Coal Ltd.
 
 1.19.1 The Company has given Corporate Guarantee amounting to Rs.
 2,50,00.00 lakhs on behalf of Electrosteel Steels Limited. Out of the
 aforesaid amount, Electrosteel Steels Limited has drawn Rs. 1,38,00.00
 lakhs.
 
 1.20 The company operates mainly in one business segment viz Pipes
 being primary segment and all other activities revolve around the main
 activity. The secondary segment is geographical, information related to
 which is given as under :
 
 1.21 The Ministry of Corporate Affairs (MCA) has issued the amendment
 dated 29th December 2011 to AS-11. The effect of changes in foreign
 exchange rates, to allow companies deferral / capitalisation of
 exchange differences arising on long term foreign currency monetary
 items. In accordance with the amendment to AS-11, the Company has
 capitalised / decapitalised exchange loss/gain respectively arising on
 long term foreign currency loans, amounting to Rs. 69,51.67 lakhs
 (previous year Rs. Nil) to Capital work in progress and Fixed assets.
 The Company does not have any other long term foreign currency monetary
 items. Hence, the amount of exchange loss deferred in the Foreign
 Currency Monetary Item Translation Difference Account is Rs. Nil
 (previous year Rs. Nil).
 
 1.21 Till the year ended March 31, 2011, the company was using
 pre-revised Schedule VI to the Companies Act 1956, for the preparation
 and presentation of its financial statements. During the year ended
 March 31, 2012, the revised Schedule VI notified under the Companies
 Act 1956, has become applicable to the company. The company has
 reclassified previous year figures to conform to this year''s
 classification.