1.  Pending completion of the relevant formalities of transfer of
 certain assets and liabilities of Powmex Steels Undertaking of GKW
 Limited (GKW) acquired pursuant to the Scheme of Arrangement sanctioned
 by the Honble High Court at Calcutta vide Order of 22nd May, 2009,
 such assets and liabilities remain included in the books of the Company
 under the name of GKW (including another company, erstwhile Powmex
 Steels Limited, which was amalgamated with GKW in earlier years).
 
 2.  The Company has entered into a Power Delivery agreement with Wardha
 Power Company Limited (WPCL) for procurement of power for its
 manufacturing activity at the terms set out in the said agreement for
 twenty five years from the commencement of commercial operation of
 power plant to be declared by WPCL. As per the terms of another related
 agreement with WPCL, the Company invested Rs. 247.66 Lakh (Previous
 Year – Rs. 24.77 Lakh) in its Class A Equity Shares and Rs. 312.34 Lakh
 (Previous Year – Rs. 312.34 Lakh) in its 0.01% Class A Redeemable
 Preference Shares, shown under Investments (Schedule 7) and advanced
 Rs.  Nil (Previous Year – Rs. 222.89 Lakh) to WPCL against investment,
 shown under Loans and Advances (Schedule 12) and are required to
 subscribe Rs.350.00 Lakh to Class C Redeemable Preference Shares of
 WPCL prior to commencement of commercial operation of the said Power
 Plant. The aforesaid shares are/shall be under lien with WPCL.
 
 Upon the expiry of Power Delivery agreement, Class A Equity Shares and
 Class A Redeemable Preference Shares will be bought back by WPCL for a
 total consideration of Re.1. One-tenth of Class C Redeemable Preference
 Shares will be redeemed on every anniversary from the date of issue at
 Re.0.01 per share.
 
 3.  a) Fixed Assets including Capital Work-in-Progress includes
 Pre-operative expenses : Salary, Wages & Bonus Rs. 51.79 Lakh
 (Previous Year – Rs. 8.31 Lakh), Contribution to Provident and Pension
 Funds Rs. 3.27 Lakh (Previous Year – Rs. 0.52 Lakh), Contribution to
 Superannuation Fund Rs. 4.03 Lakh (Previous Year – Rs. Nil), Staff
 Welfare Expenses Rs. Nil (Previous Year – Rs. 0.01 Lakh), Stores &
 Spare Parts Consumed Rs. 5.27 Lakh (Previous Year – Rs. 18.59 Lakh),
 Electricity Charges Rs. 2.60 Lakh (Previous Year – Rs. Nil), Other
 Repair Rs. Nil (Previous Year – Rs. 0.15 Lakh), Rates & Taxes Rs. 0.67
 Lakh (Previous Year – Rs. Nil), Insurance Rs. 1.35 Lakh (Previous Year
 – Rs. Nil), Travelling & Conveyance Rs. 4.82 Lakh (Previous Year – Rs.
 0.74 Lakh), Professional Charges Rs. 26.62 Lakh (Previous Year – Rs.
 32.27 Lakh), Bank Charges Rs. 271.58 Lakh (Previous Year – Rs. 0.32
 Lakh), Miscellaneous Expenses Rs. 2.96 Lakh (Previous Year – Rs. 0.52
 Lakh) and Interest Expense Rs. 2.21 Lakh (net off Interest Income of
 Rs. 34.79 Lakh)(Previous Year – Rs. Nil).
 
 The above particulars, as applicable, have been given in respect of
 MSEs to the extent they could be identified on the basis of the
 information available with the Company.
 
 4.  d) In respect of 1,19,32,742 Equity Shares of Rs. 2/- each allotted
 as fully paid up on conversion of Foreign Currency Convertible Bonds as
 indicated in Note 2 on Schedule 1 before the book closure date but
 after 31st March, 2010, dividend amounting to Rs. 417.65 Lakh (Previous
 Year – Rs. Nil) has been paid for the year ended 31st March, 2010.
 
 5.  Contingent Liabilities not provided in respect of –
 
                                                          (Rs. in Lakh)
                                               As at 31st    As at 31st
                                              March, 2011   March, 2010
 
 (I) Claims not acknowledged as debts : 
 
 (i) Disputed Excise Duty for which appeals 
     are pending                                    394.01       398.42
 
 (ii) Disputed Customs Duty for which appeals 
      are pending                                 1,060.75      1068.97
 
 (iii) Disputed Service Tax for which appeals 
       are pending                                  218.23       304.89
 
 (iv) Disputed Sales Tax for which appeals 
      are pending                                   506.32       491.64
 
 (v) Disputed Entry Tax for which appeals 
     are pending                                    246.04       246.04
 
 (vi) Others                                        295.79       390.04
 
 6. Research and Development Expenditure of revenue nature of Rs. 20.56
 Lakh (Previous Year - Rs. 29.62 Lakh)
 
 7.  Employee Benefits
 
 (I) Post Employment Defined Benefit Plans
 
 (A) Gratuity
 
 The Company provides for gratuity, a defined benefit retirement plan
 covering eligible employees. As per the scheme, the Gratuity Fund
 Trusts, administered and managed by the Life Insurance Corporation of
 India (LICI), makes payment to vested employees at retirement, death,
 incapacitation or termination of employment, of an amount based on the
 respective employees salary and the tenure of employment. Vesting
 occurs upon completion of five years of service. Liabilities with
 regard to the Gratuity Plan are determined by actuarial valuation as
 set out in Note 1(J)(b) above, based upon which, the Company makes
 contributions to the Employees Gratuity Funds.
 
 (i) The estimate of future salary increases take into account
 inflation, seniority, promotion and other relevant factors.
 
 (j) The expected return on plan assets is determined after taking into
 consideration composition of the plan assets held, assessed risks of
 asset management, historical results of the return on plan assets, the
 Companys policy for plan asset management and other relevant factors.
 
 (B) Provident Fund
 
 Certain employees of the Company receive provident fund benefits, which
 are administered by the Provident Fund Trusts set up by the Company.
 Aggregate contributions along with interest thereon are paid at
 retirement, death, incapacitation or termination of employment. Both
 the employees and the Company make monthly contributions at specified
 percentage of the employees salary to such Provident Fund Trusts. The
 Company has an obligation to fund any shortfall in return on plan
 assets over the interest rates prescribed by the authorities from time
 to time.
 
 In terms of the Guidance on implementing Accounting Standard 15
 (Revised 2005) on Employee Benefits issued by the Accounting Standard
 Board of The Institute of Chartered Accountants of India (ICAI), a
 provident fund set up by the Company is defined benefit plan in view of
 the Companys obligation to meet shortfall, if any, on account of
 interest. Interest shortfall for the year has been provided for in
 these accounts.
 
 Unlike earlier years, the Actuary has expressed his inability to
 provide an actuarial valuation of the provident fund as at the year-end
 in the absence of a Guidance Note from The Institute of Actuaries of
 India. Accordingly, complete information pertaining to the year
 required to be considered as per AS-15 in this regard are not available
 and the same could not be disclosed.
 
 The Companys contribution to the aforesaid provident fund for the year
 amounting to Rs. 40.65 Lakh (31st March, 2010 – Rs. 31.85 Lakh) has
 been included in Contribution to Provident and Pension Funds in
 Schedule 16.
 
 (II) Post Employment Defined Contribution Plans
 
 During the year an amount of Rs. 500.53 Lakh (Previous Year - Rs.497.56
 Lakh) has been recognised as expenditure towards defined contribution
 plan of the Company.
 
 8.  Disclosure pursuant to SEBIs circular No.SMD/POLICY/CIR-02/2003
 
 b) The Company has given loans and advances in the nature of loans to
 its employees for housing, medical etc. [balance outstanding as on 31st
 March, 2011 is Rs.147.64 Lakh (Previous Year - Rs.140.61 Lakh)] where,
 in some cases, the repayment schedule extends beyond seven years and
 interest is below the rate referred to in Section 372A of the Companies
 Act,1956. In view of the voluminous data, furnishing of required
 particulars by name, amount and maximum amount due in respect of such
 loans is not considered practicable.
 
 9. SEGMENT INFORMATION
 
 A.  Primary Segment Reporting (by Business Segments) 
 
 i) Composition of Business Segments
 
 The Companys operations predominantly related to the following
 segments:
 
 a) Graphite and Carbon Segment, engaged in the production of Graphite
 Electrodes, Anodes and other miscellaneous Carbon and Graphite
 Products,
 
 b) Power Segment engaged in generation of Power,
 
 c) Steel Segment engaged in production of High Speed Steel and Alloy
 Steel, and
 
 d) Other Segment, engaged in manufacturing of Impervious Graphite
 Equipment (IGE) and Glass Reinforced Pipes (GRP)
 
 ii) Inter Segment Transfer Pricing
 
 Inter Segment prices are normally negotiated amongst the segments with
 reference to the costs, market prices and business risks.
 
 10.  RELATED PARTY DISCLOSURES :
 
 (In accordance with Accounting Standard-18 prescribed under the Act)
 
 i) Related Parties
 
 Name                                             Relationship
 
 (a) Where control exists :
 
 Bavaria Carbon Holdings GmbH                     Subsidiary
 
 Bavaria Carbon Specialities GmbH                 Subsidiary
 
 Bavaria Electrodes GmbH                          Subsidiary
 
 Carbon Finance Limited                           Subsidiary
 
 Carbon International Holdings N.V.               Subsidiary
 
 Graphite Cova GmbH                               Subsidiary
 
 Graphite International B.V.                      Subsidiary
 
 (b) Others :
 
 Mr. M. B. Gadgil, Executive Director             Key Management 
                                                  Personnel
 
 11.  The Company has cancellable operating lease arrangements for
 certain accommodation with tenures of three years. Terms of such lease
 include option for renewal on mutual agreed terms. Operating lease
 rentals for the year debited to Profit and Loss Account amount to Rs.
 99.94 Lakh (Previous Year - Rs. 99.00 Lakh).
 
 12.  Previous Years figures have been re-grouped and/or re-arranged,
 wherever necessary.