Rs. in Crore
 
                                               As on           As on
 
                                      March 31, 2011  March 31, 2010
 
 1) Contingent Liabilities not 
 provided for in respect of
 
 i) Claims against the Company not 
 acknowledged as debt
 
 a) Sales Tax                                 12.16               -
 
 b) Income Tax-disputed by the Company         0.29               -
 
 c) Excise Duty                               31.29           23.03
 
 d) Quality Claims by the Customers 
 (Subsidiary Company)                             -            4.59
 
 e)   Others                                   7.51            4.71
 
 ii) Bills Discounted on behalf of the 
 third party                                  43.64           63.27
 
 iii) Corporate Guarantees                    28.47           26.77
 
 2) Estimated amounts of contracts remaining to be executed on Capital
 Accounts Rs. 47.34 Crore (net of advances) (Previous Year Rs. 141.42
 Crore).
 
 3) Loans and Advances include interest free advances given by the
 Company in earlier years to Employees Welfare Funds aggregating to Rs.
 3.25 Crore (Previous Year 3.90 Crore) for the benefit of designated
 employees pursuant to the proviso (b) to Section 77 (2) of the
 Companies Act, 1956.
 
 4) Loans and Advances include loans to officers of the Company Rs.
 19,825/- (Previous Year Rs. 24,925/-), (Maximum amount outstanding
 during the year Rs. 24,925/-, Previous Year Rs. 30,025/-).
 
 5) Considering the uncertainty related to realisation, the following
 items are not considered to accrue till they are settled / sanctioned /
 received as the case may be : a) Insurance claims b) Interest on
 receivables c) Electricity Refund (Regulatory Liability Charges ).
 
 6) As per the Accounting Standard 17, the company has two segment viz
 Seamless Tube and Steel.
 
 i) Revenue and expenses have been identified to a segment on the basis
 of relationship to operating activities of the segment.  Revenue and
 expenses which relate to enterprise as a whole and are not allocable to
 a segment on reasonable basis have been disclosed as unallocable.
 
 ii) Segment assets and segment liabilities represent assets and
 liabilities in respective segments. Investments, tax related assets and
 other assets and liabilities which cannot be allocated to a segment on
 a reasonable basis have been included under ''''Un-allocable Assets /
 Liabilities ''''.
 
 7) Other Liabilities include buyer''s credit of Rs. 155.56 Crore
 (Previous Year Rs. 107.93 Crore).
 
 8) The Company had issued zero percent Foreign Currency Convertible
 Bonds (FCCB) aggregating to US $ 20 Million as detailed hereunder, to
 finance inter-alia capital expenditure, repayment of foreign currency
 loan and acquisitions.
 
 Bond Series No. of Bonds Price per Bond (in US $) Aggregate Value (in
 US $) Conversion price (in INR)
 
 A 48,76,146 2.0508 10,000,000 92.00
 
 B 36,68,648 2.7258 10,000,000 122.28
 
 Each Bond in Series A and Series B would be convertible into one Equity
 Share of Rs. 5/- each fully paid any time until redemption i.e. after
 five years and one day from the date of allotment subject to terms and
 conditions of the Subscription. Unless previously redeemed or converted
 or purchased and cancelled as herein provided, the Company will redeem
 the Series A Bond and the Series B Bond along with the premium
 calculated at the rate of six months LIBOR plus 2% p.a. of their
 principal amount (the Redemption Amount ) at the end of five years
 and one day from the date of issue and allotment of the said Series A
 Bonds and Series B Bonds i.e. on December 01, 2011.
 
 Out of the proceeds of the FCCB, the Company has utilised Rs. 76.91
 Crore towards the object of the issue and the balance Rs.12.01 Crore
 are lying in the Fixed Deposit Accounts with Bankers, including
 interest and exchange difference.
 
 9) Security and other particulars of Secured Loans
 
 (i) a) Term Loans of Rs. 112.16 Crore are stipulated to be secured by a
 first charge ranking pari passu on the Company''s immovable properties
 and movable fixed assets both present and future with other term
 lenders, excluding term loan lenders where exclusive charge on moveable
 fixed assets as mentioned in clause (d) has been stipulated and assets
 of Captive Power project of the Company located at Chandrapur district
 as mentioned in clause (f). These loans are further stipulated to be
 secured by a second charge ranking pari passu by way of hypothecation
 with other term lenders on the current assets of the Company on which
 the first pari passu charge is stipulated to be created in favour of
 the Consortium Banks as mentioned in clause (c) below.
 
 b) Term Loans of Rs. 344.85 Crore are stipulated to be secured by a
 first charge ranking pari passu on the Company''s immovable properties
 and movable fixed assets both present and future with other term
 lenders, excluding term loans where exclusive charge on moveable fixed
 assets as mentioned in clause (d) has been stipulated and assets of
 Captive Power project of the company located at Chandrapur district as
 mentioned in clause (f) below.
 
 c) Working Capital borrowings from the Consortium Banks are stipulated
 to be secured by a first charge ranking pari passu by hypothecation in
 respect of the current assets of the Company and are further stipulated
 to be secured by a second pari passu charge on the Company''s immovable
 properties and all the movable fixed assets both present and future.
 
 d) Foreign Currency Term Loans of Rs. 195.40 Crore are stipulated to be
 secured by an exclusive charge on the equipment financed. Out of the
 above, term loan of Rs. 87.57 Crore is further stipulated to be secured
 with the land appurtenant thereto.
 
 e) Foreign Currency Term loan of Rs. 40.73 Crore is stipulated to be
 secured by first charge on the entire fixed assets ranking pari passu
 with other term lenders, excluding term loan lenders where exclusive
 charge on fixed assets as mentioned in clause (d) and (f) has been
 stipulated.
 
 f) Term Loans of Rs. 69.99 Crore are stipulated to be secured by first
 charge ranking pari passu on the Company''s immovable properties and
 movable fixed assets relating to Captive Power project of the Company
 located at Chandrapur district.
 
 (ii) Term Loan installments falling due within one year is Rs. 179.96
 Crore (Previous Year Rs. 146.51 Crore).
 
 10) Additional information as required by Part - II of Schedule - VI to
 the Companies Act, 1956 (figures in brackets pertain to the Previous
 Year).
 
 ii) Provision of Income Tax is made based on the provisions of Section
 115 JB of the Income Tax Act, 1961.
 
 iii) The company, based on legal advice, has transferred the balance in
 the Restructuring Reserve of Rs. 12.93 Crore towards diminution in
 value of deferred tax asset of erstwhile The Indian Seamless Metal
 Tubes Ltd. to Profit and Loss Account, in terms of the Scheme of
 Arrangement having Appointed Date as April 01, 2004 between the
 erstwhile The Indian Seamless Metal Tubes Ltd. and the company.
 
 iv) The Company (earlier Jejuri Steels & Alloys Ltd., before
 amalgamation of Indian Seamless Steels and Alloys Limited with it) had
 created  Deferred Tax Asset  in respect of unabsorbed losses,
 allowances, etc., of Indian Seamless Steels & Alloys Ltd., by
 corresponding credit to General Reserve in the first year after
 amalgamation and reflected in its first Balance Sheet as on September
 30, 2001, thereafter, pursuant to the amalgamation and in terms of the
 Scheme as well as relevant Accounting Standard, the assets and
 liabilities vested in the Company were accounted on  Purchase Method
 . Upon the review of the said  Deferred Tax Asset on the balance
 sheet date, in terms of the applicable Accounting Standards or
 otherwise, the amount as required is charged on reversal of the said
 amount of Deferred Tax Asset, which necessitates equivalent write-down
 of the said General Reserve. The Deferred Tax charge arising as
 aforesaid has been disclosed in the Profit and Loss Account and the
 corresponding withdrawal from the said General Reserve has also been
 disclosed in the Profit and Loss Account.
 
 11) Dues of Micro and Small Enterprises
 
 The Information as required to be disclosed under Schedule VI of the
 Companies Act, 1956 w.r.t. Micro and Small Enterprises under the Micro,
 Small and Medium Enterprises Development Act, 2006 (Act) is as given
 below, has been determined to the extent such parties have been
 identified on the basis of information available with the Company.
 
 12) The Company had adopted Accounting Standard-11 The effects of
 changes in Foreign Exchange Rates, read with notification issued by
 the Ministry Of Corporate Affairs dated March 31, 2009 and exercised
 the option to recognize exchange difference on long term monitory items
 related to Fixed Assets to the cost of Fixed Assets and the other long
 term monitory items to Foreign Currency Monitory Item Translation
 Difference Account from April 01, 2007. Accordingly the Company has
 accounted exchange differences as under :
 
 i) Exchange difference related to acquisition of Capital Assets has
 been adjusted to respective Fixed Asset cost Rs 0.49 Crore (Gain)
 (Previous year Rs. 27.33 Crore Gain ).
 
 ii) Exchange difference amortised during the year Rs. 2.59 Crore (Loss)
 (Previous Year Rs. 8.19 Crore, Loss) from Foreign Currency Monitory
 Item Translation Difference Account and charged to Profit and Loss
 Account and balance in the Foreign Currency Monitory Item Translation
 Difference Account as on March 31, 2011 is Rs. Nil.
 
 iii) Had this change not been effected, the profit for the year would
 been higher by Rs. 5.40 Crore (Privious Year Rs. 62.61 Crore), Fixed
 Assets would have been lower by Rs. 22.33 Crore (Privious Year Rs.
 22.82 Crore) and consequently the Reserves and Surplus would have been
 lower by Rs. 21.30 Crore (Privious Year Rs. 27.72 Crore).
 
 13) (i) Related party Disclosure as required by Accounting Standard -
 18 is as under : -
 
 a) Key Management Personnel 
 
 i) Mr. Salil Taneja - Chief Executive Officer
 
 ii) Mr. B.R. Taneja - Non Executive Director
 
 iii) Mr. Rajiv Goel - Chief Financial Officer
 
 iv) Mr. Nirmal Chandra - President (Project & Product Development)
 
 b) Subsidiary Companies i) ISMT Enterprises SA, Luxembourg
 
 ii) Structo Hydraulics AB, Sweden
 
 iii) ISMT Europe AB, Sweden
 
 iv) Structo (UK) Limited, U.K.
 
 v) Structo Hydraulics India Limited
 
 vi) Tridem Port and Power Company Pvt. Ltd.
 
 vii) Nagapattinam Energy Pvt. Ltd.
 
 viii) PT ISMT Resources, Indonesia
 
 c) Associate Companies 
 
 i) Indian Seamless Enterprises limited
 
 ii) Indian Seamless Incorporated, USA.
 
 iii) Taneja Aerospace and Aviation limited
 
 d) Details of Transaction 
 
 i) Key Management Personnel
 
 Remuneration Paid for the year Rs. 2.74 Crore (Previous Year Rs. 2.53
 Crore)
 
 ii) Subsidiary and Associate Companies
 
 In respect of Provident Fund Trust set up by the Company, there is no
 deficit of interest shortfall as on the date of Balance sheet. With
 regards to future obligation arising due to interest shortfall (i.e.
 government interest to be paid on the Provident Fund Scheme exceeding
 rate of interest earned on investment), pending issuance of the
 Guidance Note from Actuarial Society of India, the actuarial liability
 against the same cannot be reliably measured and quantified.
 
 14) Previous Year figures have been regrouped and reclassified wherever
 necessary to conform to the Current Year classification.