(a) Basis of preparation of Accounts
 
 The financial statements have been prepared to comply in all material
 respects with the accounting standards notified by the Companies
 Accounting Standards Rules, 2006, (as amended) and the relevant
 provisions of the Companies Act, 1956. The financial statements have
 been prepared under the historical cost convention on an accrual basis.
 The accounting policies have been consistently applied by the Company
 and are consistent with those used in the previous year.
 
 (b) Use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires the management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities and disclosure of contingent liabilities at the date of
 the financial statements and the results of operations during the
 reporting period end.  Although these estimates are based upon the
 management''s best knowledge of current events and actions, actual
 results could differ from these estimates.
 
 (c) Fixed Assets
 
 Fixed assets are stated at cost less accumulated depreciation and
 impairment losses if any.  Cost comprises the purchase price inclusive
 of duties (net of CENVAT and VAT Credit), taxes, incidental expenses,
 erection /commissioning expenses and interest etc., upto the date the
 asset is ready to be put to use.
 
 Own produced materials used for fixed assets are capitalised at cost.
 
 Machinery spares which can be used only in connection with a particular
 item of fixed asset and whose use as per technical assessment is
 expected to be irregular, are capitalised and depreciated prospectively
 over the residual life of the respective asset.
 
 (d) Depreciation
 
 i) The classification of Plant and Machinery into continuous and non-
 continuous process is done as per technical certification and
 depreciation thereon is provided accordingly.
 
 ii) Depreciation is provided using the Straight Line Method as per the
 useful lives of the assets estimated by the management which is equal
 to the rates prescribed under schedule XIV of the Companies Act, 1956
 except for Railway Wagons as stated below.
 
 iii) Depreciation on Railway Wagons acquired by the Company is provided
 @ 10% p.a. as against 4.75% p.a. as prescribed in Schedule XIV because
 of the conditions prescribed in the agreement with Indian Railway
 Authorities.
 
 iv) In case of impairment, if any, depreciation is provided on the
 revised carrying amount of the assets over their remaining useful life.
 
 (e) Borrowing Costs
 
 Borrowing costs relating to acquisition/construction of qualifying
 assets are capitalized until the time all substantial activities
 necessary to prepare the qualifying assets for their intended use are
 complete. 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.
 
 (f) Impairment
 
 The carrying amounts of assets are reviewed at each balance sheet date
 if there is any indication of impairment based on internal/external
 factors.  An impairment loss is recognized wherever the carrying amount
 of an asset exceeds its recoverable amount. The recoverable amount is
 the greater of the asset''s net selling price and value in use. In
 assessing value in use, the estimated future cash flows are discounted
 to their present value using a pre- tax discount rate that reflects
 current market assessments of the time value of money and risks
 specific to the asset.
 
 After impairment, depreciation is provided on the revised carrying
 amount of the asset over its remaining useful life.
 
 (g) Fixed Assets acquired under Finance Lease
 
 Assets acquired under lease agreements which effectively transfer to
 the Company substantially all the risks and benefits incidental to
 ownership of the leased item, are capitalized at the lower of the fair
 value and present value of the minimum lease payments at the inception
 of the lease term and disclosed as leased assets. Lease payments are
 apportioned between the finance charges and reduction of the lease
 liability based on the implicit rate of return.  Finance charges are
 charged directly to expense.
 
 If there is no reasonable certainty that the Company will obtain the
 ownership by the end of the lease term, capitalized leased assets are
 depreciated over the shorter of the estimated useful life of the asset
 or the lease term.
 
 (h) Government grants and subsidies
 
 Grants and subsidies from the government are recognized when there is a
 reasonable assurance that the grant/ subsidy will be received and all
 attaching conditions will be complied with.
 
 When the grant or subsidy relates to an expense item, it is recognized
 as income over the periods necessary to match them on a systematic
 basis to the costs, which it is intended to compensate.
 
 Where the grant or subsidy relates to an asset, its value is deducted
 in arriving at the carrying amount of the related asset.
 
 Government grants of the nature of promoters'' contribution are credited
 to capital reserve and treated as a part of share-holders'' funds.
 
 (i) Investments
 
 Investments that are readily realisable and intended to be held for not
 more than a year are classified as current investments.  All other
 investments are classified as long-term investments.  Current
 investments are carried at lower of cost and fair value determined on
 an individual investment basis. Long-term investments are carried at
 cost. However, provision for diminution in value is made to recognize a
 decline other than temporary in the value of the investments.
 
 (j) Inventories
 
 Inventories are valued as follows:
 
 Raw materials
 
 At lower of cost and net realizable value. However, materials and other
 items held for use in the production of inventories are not written
 down below cost if the finished products in which they will be
 incorporated are expected to be sold at or above cost. Cost is
 determined on a weighted average basis.
 
 Stores and Spares
 
 At lower of cost and net realizable value. Cost is determined on ‘First
 in First Out'' basis except for Durg unit where the cost is determined
 on weighted average basis.
 
 Work-in- Process and Finished Goods
 
 At lower of cost and net realizable value. Cost includes direct
 materials and labour and a proportion of manufacturing overheads based
 on normal operating capacity. Cost of finished goods includes excise
 duty. Cost is determined on a weighted average basis.
 
 Scrap and By Products
 
 At net realizable value.
 
 Net realizable value is the estimated selling price in the ordinary
 course of business, less estimated costs of completion and estimated
 costs necessary to make the sale.
 
 (k) Revenue Recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 Sale of Goods
 
 Revenue from sale of goods is recognized on passage of title thereof to
 the customers, which generally coincides with delivery. Further, sales
 are inclusive of excise duty and are net of returns, claims, rebates,
 discounts, Sales Tax, VAT etc.
 
 Income from Services
 
 Income from Services is recognized on performance of the contract and
 acceptance of the services by the customers.
 
 Interest
 
 Revenue is recognised on a time proportion basis taking into account
 the amount outstanding and the rate applicable.
 
 Dividend
 
 Dividend income is recognized when the shareholders'' right to receive
 payment is established by the balance sheet date. Dividend from
 subsidiary is recognized even if same is declared after the balance
 sheet date but pertains to period on or before the date of balance
 sheet as per the requirement of schedule VI of the Companies Act, 1956.
 
 (l) Foreign currency transactions
 
 (i) Initial Recognition
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the
 transaction.
 
 (ii) Conversion
 
 Foreign currency monetary items are reported using the closing rate.
 Non- monetary items which are carried in terms of historical cost
 denominated in a foreign currency are reported using the exchange rate
 at the date of the transaction; and non- monetary items which are
 carried at fair value or other similar valuation denominated in a
 foreign currency are reported using the exchange rates that existed
 when the values were determined.
 
 (iii)Exchange Differences
 
 Exchange differences arising on the settlement / conversion of monetary
 items are recognized as income or as expenses in the period in which
 they arise.
 
 (iv)Forward Exchange Contracts not intended for trading or speculation
 purposes
 
 The premium or discount arising at the inception of forward exchange
 contracts is amortised as expense or income over the life of the
 contract.  Exchange differences on such contracts are recognised in the
 statement of profit and loss in the year in which the exchange rates
 change. Any profit or loss arising on cancellation or renewal of
 forward exchange contract is recognised as income or as expense for the
 year.
 
 (m)Retirement and other employee benefits
 
 i. Retirement benefit in the form of Provident Fund is a defined
 contribution scheme and the contribution is charged to Profit and Loss
 Account of the year when the contributions to the respective fund is
 due.  There is no other obligation other than the contribution payable
 to provident fund.
 
 ii. Gratuity liability is a defined benefit obligation and is provided
 for on the basis of actuarial valuation on projected unit credit method
 made at the end of each financial year.  Unrecognised past service cost
 arising at the time of change in plan measures are charged to profit
 and loss account on a straight line basis over the period of vesting of
 the defined benefit obligation.
 
 iii. Short term compensated absences are provided for based on
 estimates whereas long term compensated absences are provided for on
 the basis of actuarial valuation, as per projected unit credit method.
 
 iv. Actuarial gains /losses are immediately taken to profit and loss
 account and are not deferred.
 
 (n) Taxation
 
 Tax expense comprises of current and deferred tax.  Current income tax
 is measured at the amount expected to be paid to the tax authorities in
 accordance with the Income Tax Act, 1961 enacted in India. Deferred
 income taxes reflect the impact of current year timing differences
 between taxable income and accounting income for the year and reversal
 of timing differences of earlier years.
 
 Deferred tax is measured based on the tax rates and the tax laws
 enacted or substantially enacted at the Balance Sheet date. Deferred
 tax assets and deferred tax liabilities are offset, if a legally
 enforceable right exists to set off current tax assets against current
 tax liabilities and the deferred tax assets and deferred tax
 liabilities relate to the taxes on income levied by same governing
 taxation laws.  Deferred tax assets are recognized only to the extent
 that there is reasonable certainty that sufficient future taxable
 income will be available against which such deferred tax assets can be
 realized. In situations where the Company has unabsorbed depreciation
 or carry forward tax losses, deferred tax assets are recognized only if
 there is virtual certainty supported by convincing evidence that they
 can be realized against future taxable profits.
 
 At each balance sheet date the Company re-assesses unrecognized
 deferred tax assets. It recognizes unrecognized deferred tax assets to
 the extent that it has become reasonably certain or virtually certain,
 as the case may be that sufficient future taxable income will be
 available against which such deferred tax assets can be realised.
 
 The carrying amount of deferred tax assets are reviewed at each balance
 sheet date. The Company writes- down the carrying amount of a deferred
 tax asset to the extent that it is no longer reasonably certain or
 virtually certain, as the case may be, that sufficient future taxable
 income will be available against which deferred tax asset can be
 realised. Any such write-down is reversed to the extent that it becomes
 reasonably certain or virtually certain, as the case may be, that
 sufficient future taxable income will be available.
 
 Minimum Alternate 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.  In the year in
 which the MAT credit becomes eligible to be recognized as an asset in
 accordance with the recommendations contained in Guidance Note issued
 by the Institute of Chartered Accountants of India, the said asset is
 created by way of a credit to the Profit and Loss Account and shown as
 MAT Credit Entitlement. The Company reviews the same at each Balance
 Sheet date and writes down the carrying amount of MAT Credit
 Entitlement to the extent there is no longer convincing evidence to the
 effect that the Company will pay normal Income Tax during the specified
 period.
 
 (o) Expenditure on new projects and substantial expansion
 
 Expenditure directly relating to construction activity are capitalised.
 Indirect expenditure incurred during construction period are
 capitalised as part of the indirect construction cost to the extent to
 which the expenditure are indirectly related to construction or are
 incidental thereto. Other indirect expenditure (including borrowing
 costs) incurred during the construction period which are not related to
 the construction activity nor are incidental thereto are charged to the
 Profit and Loss Account.  Income earned during construction period is
 deducted from the total of the indirect expenditure.
 
 All direct capital expenditure on expansion are capitalised.  As
 regards indirect expenditure on expansion, only that portion is
 capitalised which represents the marginal increase in such expenditure
 involved as a result of capital expansion. Both direct and indirect
 expenditure are capitalised only if they increase the value of the
 asset beyond its original standard of performance.
 
 (p) Segment Reporting Policies
 
 Based on the synergies, risks and returns associated with business
 operations and in terms of Accounting Standard-17, the Company is
 predominantly engaged in a single reportable segment of Iron and Steel
 during the year.  The risks and returns of existing captive power
 plants are directly associated with the manufacturing operations of
 Iron and Steel and hence treated as a single reportable segment as per
 Accounting Standard-17. The Company at present operates in India and
 therefore the analysis of geographical segments is not applicable to
 the Company.
 
 (q) Earnings Per Share
 
 Basic earning per share is calculated by dividing the net profit or
 loss for the year attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the year.
 
 Partly paid equity shares/ instruments are treated as a fraction of an
 equity share to the extent that they were entitled to participate in
 dividends relative to a fully paid equity share during the reporting
 year.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the year attributable to equity shareholders and the
 weighted average number of shares outstanding during the year are
 adjusted for the effects of all dilutive potential equity shares.
 
 (r) Provisions
 
 A provision is recognised when an enterprise has a present obligation
 as a result of past event and it is probable that an outflow of
 resources will be required to settle the obligation, in respect of
 which a reliable estimate can be made.  Provisions are not discounted
 to their present value and are determined based on best estimates
 required to settle the obligation at the balance sheet date. These are
 reviewed at each Balance Sheet date and adjusted to reflect the current
 best estimates.
 
 (s) Cash and Cash Equivalents
 
 Cash and cash equivalents as indicated in the Cash Flow Statement
 comprise cash at bank and in hand and short- term investments with an
 original maturity of three months or less.
 
 (t) Contingent Liabilities
 
 Contingent liabilities are not provided for in the accounts and are
 separately disclosed in the Notes on Accounts.