Jindal Saw

 1.  CONTINGENT LIABILITIES                     As At           As At
                                      31st Dec., 2008  31st Dec, 2007
                                          Rs. In lacs     Rs. in lacs
 
 a)  Counter Guarantee given to 
     Companys bankers for
     Guarantee given by them on 
     behalf of the Company                  62,988.74       40,885.92
 
 b)  Letter of Credit Outstanding
    (Net of Liabilities 
     provided in the books)                 72,318.96       59,468.31
 
 c)  Disputed Excise duty, 
     Custom Duty and service tax                87.22           82.12
 
 d)  Disputed Sales Tax                        674.12        1,298.97
 
 e)  Liability in respect of Duty 
     Saved/Corporate Guarantee for
     availing various export based 
     incentive schemes.                     29,023.68       22,939.97
 
 2.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for (Net of Advances) 11,267.10 34,171.77
 
 3.  The Company has not received any intimation from suppliers
 regarding their status under the Micro, Small and Medium Enterprises
 Development Act, 2006, hence disclosures, if any, relating to amounts
 unpaid as at the year end together with interest paid/payable as
 required under the said Act have not been given. Sundry creditors in
 the previous period include Rs.112.01 lacs payable to Small Scale
 Industrial Undertakings.
 
 4.  The Company has unquoted investments of Rs.19,199.82 lacs (Previous
 period Rs.6,681.80 lacs) in Subsidiary Companies, which have
 accumulated losses as per the latest available Balance Sheet and
 certain other unquoted investment where the fair value (amount
 unascertained) is lower than the cost, considering the long term
 strategic investments and future prospects, such diminution, in the
 opinion of the management, has been considered to be of temporary
 nature and hence no provision for the same is considered necessary.
 
 5.  An amount of Rs.11, 814.38 lacs (Previous period Rs. 3,286.31 lacs)
 is outstanding from Subsidiary companies, which have accumulated
 losses. Having regard to the long- term involvement & future prospects,
 no provision is considered necessary towards these outstanding.
 
 6 Sundry Debtors, Creditors and other advances are subject to
 confirmation. The effect of the same, if any, which is not likely to be
 material, will be adjusted at the time of confirmation.
 
 7 During the year, the company has provided sponsors undertakings to
 lenders of the projects being sponsored by its wholly owned subsidiary
 namely Jindal ITF Limited. Major terms of the undertakings envisage
 investment of equity, retention of major equity in subsidiary company,
 supporting the projects for shortfall in debt servicing and In the
 eventuality of any cost overrun.
 
 8 During the year, Company has transferred certain investments to one
 of its Wholly Owned Subsidiary at Cost.
 
 9 The Stores and Spares consumed and Salaries & Wages incurred for
 repairs and maintenance of Plant and Machinery, Shed and Building have
 not been allocated to the respective repairs and maintenance accounts.
 
 10 In the opinion of the Board, the realizable value of Current assets,
 loans & advances, in the ordinary course of business, would not be less
 than the amount at which they are stated.
 
 11 Capital work in progress includes Advance against capital goods of
 Rs. 1,836.65 lacs (Previous period Rs. 12,995.14 lacs).
 
 12 The amount of foreign exchange fluctuation amounting to Rs.
 19,424.74 lacs (Debit) (Previous period Rs. 2,241.07 lacs- Credit) is
 included under the relevant heads of expenditure and income.
 
 13 During the year, the amount of foreign exchange fluctuation
 capitalized towards Fixed Assets is Rs. 13,056.40 lacs Debit (Previous
 period Rs. 619.82 lacs- Credit.)
 
 14 Profit for the year includes Prior Period Adjustment Rs 0.64 lacs
 (Debit) and Rs 19.19 lacs (Credit) (Previous period - Rs. 21.57 lacs
 (Debit) and Rs 22.72 lacs (Credit).
 
 15 Profit or Loss on sale of Raw Materials, Stores and Spares is not
 ascertained or shown separately and sale proceeds have been credited to
 the respective consumption accounts.
 
 16 Sundry Debtors includes Rs. 108.08 lacs (Previous period Rs. Nil)
 due from Private Company in which director of the company is a
 director.
 
 17 Financial and Derivative Instruments
 
 a) Nominal amounts of derivative contracts entered into by the company
 and outstanding as at December 31, 2008 for hedging Currency and
 interest rate related risks:
 
 18.  Previous Period figures which are for the period of 15th month
 from 1st October 2006 to 31st December 2007 have been
 regrouped/re-arranged, whenever considered necessary and practical.
 Current year figures of Profit and Loss Account are not comparable with
 previous year as the previous period figures are for fifteen months.