1 Nature of Operations
 
 Jai Balaji Industries Limited is engaged in the manufacture and sale of
 steel and allied products.
 
                                                      (Rs. in lacs)
 
 2.  Contingent liabilities not provided for: 
 
                                              As at 31st    As at 31st
 
                                             March, 2011   March, 2010
 
 a) Claims against the Company not 
 acknowledged as debts
 
 i) Excise and Service Tax Demands under 
 dispute/appeal                                3,812.03      1,632.88
 
 ii) Sales Tax/VAT matters under 
 dispute/appeal                                  195.03      9,579.39
 
 iii) Others                                      44.74        162.61
 
 b) Letters of Credit, Bills discounted 
 and Bank Guarantees outstanding               4,435.17      6,974.22
 
 c) Custom Duty on Import of Equipment and 
 spare parts under EPCG Scheme                   945.35      1,202.14
 
 d) Guarantees and Counter guarantees 
 given by the Company for loans obtained by 
 subsidiary company                            4,500.00      1,500.00
 
 e) Guarantee given for Joint Venture 
 Companies                                     1,412.46      1,412.46
 
 2. In respect of an electricity supply matter where the Electricity
 Supplier has demanded enhanced charges, the matter was challenged by
 the Company at the Appellate Tribunal for Electricity (the tribunal).
 The Tribunal vide its order dated May 10, 2010 dismissed the appeal of
 the Supplier and directed to implement the tariff as determined by the
 Central Electricity Regulatory Commission vide its Order dated August
 6, 2009. The Supplier has preferred an appeal with Hon''ble Supreme
 Court, pending finalisation of the outcome of the matter, the
 liabilities for the electricity charges are accounted for based on
 provisional bills provided by the Supplier.
 
 4. Plant and Machinery includes certain assets taken on finance lease.
 At the expiry of the lease period, legal title would be passed on to
 the Company. There was no escalation clause in the lease agreement.
 There were no restrictions imposed by lease arrangements. There were no
 subleases.
 
 5. The Company has a defined benefit gratuity plan. Every employee who
 has completed five years or more of service is entitled to gratuity on
 terms not less favourable than The Provisions of Payment of Gratuity
 Act, 1972. The scheme is funded with an insurance company in the form
 of a qualifying insurance policy.
 
 (ii) Forward Cover Contracts outstanding at the year end represents the
 following:
 
 Contracts of US$ 3,712,500 (US$ 27,939,817) for minimizing the risk of
 currency exposure on foreign currency loans from banks aggregating Rs
 1,657.63 lacs (Rs 12,625.40 lacs)
 
 6.  Excise duty on increase/decrease in stock represents differential
 excise duty on opening and closing stock of Finished Goods.
 
 7.  Related Party Disclosures 
 
 a.  Name of Related Parties Subsidiary Companies 
 
 Nilachal Iron & Power Limited (NIPL)
 
 Jai Balaji Steels (Purulia) Limited (JBSPL)
 
 Jai Balaji Energy (Purulia) Limited (JBEPL)
 
 Joint Venture Companies
 
 Rohne Coal Company Private Limited (RCCPL)
 
 Andal East Coal Company Private Limited (AECCPL)
 
 Joint Venture Partner/ Co-Venturers
 
 Bhushan Power & Steel Limited (BPSL)
 
 Key Management Personnel
 
 Mr. Aditya Jajodia, Chairman and Managing Director
 
 Mr. Sanjiv Jajodia, Wholetime Director
 
 Relatives of Key Management Personnel
 
 Mr. Rajiv Jajodia, Brother of Wholetime Director
 
 Mr. Devendra Prasad Jajodia, Brother of Wholetime Director
 
 Mr. Aashish Jajodia, Brother of Chairman and Managing Director
 
 Mr. Gaurav Jajodia, Nephew of Wholetime Director
 
 Smt. Kanchan Jajodia, Sister-in-law of Wholetime Director
 
 Smt. Rina Jajodia, Sister-in-law of Chairman and Managing Director
 
 Smt. Sangeeta Jajodia, Wife of Wholetime Director
 
 Smt. Shashi Devi Jajodia, Sister-in-law of Wholetime Director
 
 Smt. Seema Jajodia, Wife of Chairman and Managing Director
 
 Enterprises owned or significantly influenced by key management
 personnel or their relatives
 
 Chandi Steel Industries Limited (CSIL)
 
 Jai Balaji Jyoti Steels Limited (JBJSL)
 
 Jai Salasar Balaji Industries Private Limited (JSBIPL)
 
 Balaji Ispat Udyog (BIU)
 
 Enfield Suppliers Limited (ESL)
 
 Hari Management Limited (HML)
 
 Jain Vanijya Udyog Limited (JVUL)
 
 Jajodia Estate Private Limited (JEPL)
 
 K.D. Jajodia Steel Industries Private Limited (KDJSIPL)
 
 8. Interest in Joint Venture :
 
 The Company has interest in following Joint Venture Companies which are
 in the process of setting up coal mining facilities at respective Coal
 blocks which they have been allotted.
 
 9. Additional Information pursuant to the provisions of paragraphs 3,
 4C and 4D of Part II of Schedule VI to the Companies Act 1956
 
 10. Figures in brackets represent previous year''s figures, which have
 been rearranged/regrouped wherever necessary to conform to this year''s
 classification.