1) General
 
 i) These accounts are prepared under the historical cost convention on
 accrual basis and comply with Accounting Standards referred to in
 section 211 (3C) of the Companies Act, 1956.
 
 ii) Accounting policies not specifically referred to otherwise are
 consistent and in consonance with generally accepted accounting
 principles.
 
 2) Revenue Recognition
 
 a) Sales
 
 i) Sales are recognized when the significant risks and rewards of
 ownership of goods have been passed to the buyer. Sales are net of
 sales tax and sales returns.
 
 ii) Inter Division Transfer represents transfer of finished /
 semi-finished products within the Segment for further processing and
 sale.
 
 b) Export Incentives
 
 Export Incentives are recognized when right to receive credit as per
 prevalent scheme is established in respect of the exports made and when
 there is no significant uncertainty regarding realization of such
 claim.
 
 3) Fixed Assets
 
 i) Fixed assets are stated at their original cost of acquisition
 including taxes, duties, freight, other incidental expenses related to
 acquisition and installation of the concerned assets and excludes
 refundable taxes and duties.
 
 ii) All incidental expenses incurred during project implementation, for
 the project as well as trial run expenses are treated as expenditure
 during construction and are capitalized.
 
 4) Depreciation
 
 i) Leasehold land - Cost of leasehold land is amortised over lease
 period.
 
 ii) Depreciation on Building and Plant & Machinery is provided on
 straight line method in the manner and at the rates specified in
 Schedule XIV of the Companies Act, 1956.
 
 iii) Deprecation on Furniture & Fixtures, Office Equipment and vehicle
 is provided on written down value method in the manner and at the rates
 specified in Schedule XIV of the Companies Act, 1956.
 
 5) Intangibles
 
 Intangible assets are stated at costs less accumulated amortisation.
 
 The cost relating to intangible assets are capitalised and amortised
 over the period of 5 years which is based on their estimated useful
 life.
 
 6) Leased assets
 
 i) Finance Lease
 
 Lease rentals in respect of finance lease are segregated into cost of
 the Assets and Finance Components by applying an implicit internal rate
 of return. The cost component is amortized over the useful life of the
 Asset and the Finance Component is recognized in the Profit and Loss
 Account.
 
 ii) Operating Lease
 
 Lease rentals in respect of operating lease are charged to profit and
 loss account as per the terms of the lease agreement.
 
 7) Inventories
 
 i) Classification: Scrap generated from Tube Segment is classified as
 raw material as the same is mostly used by Steel Segment.
 
 ii) Valuation
 
 a) Raw Materials are valued at lower of cost or net realisable value.
 Cost is determined on weighted average basis.
 
 b) Semi finished and finished goods are valued at lower of cost or net
 realisable value. The cost includes raw material, labour cost,
 manufacturing expenses, production overheads and depreciation.
 
 c) Stores and Spares are valued at cost determined on weighted average
 basis except for those which have a longer usable life, which are
 valued on the basis of their remaining useful life.
 
 iii) Inventories include goods in transit under the appropriate heads.
 
 8) Employee Benefits
 
 (i) Defined Contribution Plan
 
 The Company makes defined contribution to Provident Fund and
 Superannuation Schemes, which are recognized in the Profit and Loss
 Account on accrual basis.
 
 (ii) Defined Benefit Plan
 
 The Company''s liabilities under Payment of Gratuity Act (funded), long
 term compensated absences are determined on the basis of actuarial
 valuation made at the end of each financial year using the projected
 unit credit method except for short term compensated absences, which
 are provided on actual basis. Actuarial gain and losses are recognized
 immediately in the statement of the Profit and Loss Account as income
 or expense. Obligations is measured at the present value of estimated
 future cash flows using a discounted rate that is determined by
 reference to market yields at the Balance Sheet date on Government
 bonds where the currency and terms of the Government bonds are
 consistent with the currency and estimated terms of the defined benefit
 obligation.
 
 9) Research & Development
 
 Research and Development costs (other than costs of fixed assets
 acquired) are charged to Profit & Loss Account in the year in which
 they are incurred.
 
 10) Long Term Investments
 
 Long Term investments are valued at cost of acquisition.  Provision for
 diminution in value of Long Term investments is made only if such a
 decline is other than temporary in the opinion of the Management.
 
 11) Foreign Currency transactions
 
 i) All transactions in foreign currency are recorded by applying the
 exchange rate prevailing at the time of the transaction.
 
 ii) Monetary foreign currency assets and liabilities (monetary items)
 are reported at the exchange rate prevailing on the balance sheet date.
 Pursuant to the notification of the Companies (Accounting Standards)
 Amendment Rules 2011 on 11th May, 2011, which amended Accounting
 Standard 11 on The Effects of Changes in Foreign Exchange Rates,
 exchange differences relating to long term monetary items are dealt
 with in the following manner:
 
 a) Exchange differences relating to long term monetary items, arising
 during the year, in so far as they relate to the acquisition of capital
 asset are add to / deducted from the cost of the asset.
 
 b) In Other cases such differences were accumulated in the Foreign
 Currency Monetary Item Translation Difference Account and amortized to
 the profit and loss account over balance life of the long term monetary
 item, however that the period of amortization does not extend beyond
 31st march 2011.
 
 iii) All other exchange differences are dealt with in the profit and
 loss account.
 
 iv) In respect of forward exchange contracts, the difference between
 the forward rate and the spot rate is recognised as income or expense
 over the contract period. Gains or losses on cancellation or renewal of
 forward exchange contracts are recognized as income or expenses.
 
 v) Non-monetary items such as investments are carried at historical
 cost using the exchange rate on the date of transaction.
 
 12) Miscellaneous Expenditure
 
 i) Preliminary expenses in the nature of public issue expenses and
 expenses in respect of increase in authorized capital are amortized
 over a period of ten years.
 
 ii) Loan processing fees are amortised over the Loan period.
 
 13) Borrowing Costs
 
 Borrowing costs that are directly attributable to the acquisition of
 qualifying assets are capitalized as a part of the cost of such assets.
 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.
 
 14) Income Tax
 
 i) Tax expenses comprise of current and deferred tax.
 
 ii) Provision for current income tax is made on the basis of relevant
 provisions of the Income Tax Act, 1961 as applicable to the financial
 year.
 
 iii) Deferred tax on timing differences is measured based on the tax
 rates and the tax laws enacted or substantively enacted at the balance
 sheet date. Deferred tax assets are recognised only to the extent that
 there is virtual certainty with convincing evidence that sufficient
 future taxable income will be available against which such deferred tax
 assets can be realised.
 
 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.
 
 15) Government Incentives
 
 Mega Project Incentives are recognised in the Profit and Loss Account
 in accordance with the provisions of the Package Scheme of Incentives
 2007 and the eligibility certificate issued by the Government of
 Maharashtra.
 
 16) Impairment of Assets
 
 Where there is an indication that an asset is impaired, the recoverable
 amount if any, is estimated and the impairment loss is recognized to
 the extent carrying amount exceeds recoverable amount.
 
 17) Contingent Liabilities
 
 Contingent Liabilities are not provided and are disclosed in notes on
 accounts. A disclosure for a contingent liability is made when there is
 a possible obligation or a present obligation that may, but probably
 will not, require an outflow of resources. When there is a possible
 obligation or a present obligation in respect of which the likelihood
 of outflow of resources is remote, no provision or disclosure is made.