1.                                                    ( Rs. in Lacs )
 
 A  Contingent Liabilities not provided
     for in respect of:                        31.03.2012      31.03.2011
 
 a) Counter Guarantee given to Company''s 
    Bankers for the Guarantee                  6,494.27        4,293.15
    given by them on behalf of Company
 
 b) Letter of Credit outstanding              98,215.98       81,132.32
 
 c) Bills discounted with Banks               38,001.59       26,290.73
 
 d) i) Sales Tax demands against which 
    company has preferred                     17,257.81          280.68
    appeals.
 
 ii) Excise Duty/Service Tax Show Cause
  Notices/Demands                             10,816.49        9,544.41
 against which company has preferred appeals.
 
 iii) Income tax demands against which 
 Company has preferred                         7,055.66        6,621.38
 appeals.
 
 iv) Claims and other liabilities against
  the company not                              3,859.75        9,547.30
  acknowledged as debt
 
 e) Demand made by Sr. Dy. Director of Mines,
   Notified Authority,                           320.49          320.49
   Jajpur Road Circle, Orissa as cess on 
   Chromite Ore production.
 
 The matter being pending with Hon''ble Supreme Court.
 
 e)  Demand made by Dy. Director of Mines, 
     Jajpur Road Circle,                         600.84            -
     Orissa against which company has
     preferred appeal.
 
 B   Guarantee given to custom authorities for 
     import under EPCG Scheme.                89,343.34        80,934.71
    {Custom duty saved/to be saved as on 
     31st March, 2012 Rs. 25,235.08 Lacs
     ( Rs. 23,144.54 Lacs)}
 
 C   Letter of Comfort to banks against credit
     facilities/financial assistance          66,103.68        30,710.45
     availed by subsidiaries
 
 2.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for (net of advances) is Rs. 5,725.73 ( Rs.
 45,557.21 Lacs).
 
 3.  Custom Duty saved on material consumed imported under advance
 license scheme as on 31st March, 2012 and 31st March, 2011 is Rs. 34.29
 Lacs and Rs. 353.26 Lacs respectively. The management is of the view that
 considering the past export performance, future prospects and going
 concern concept there is certainty that pending export obligation under
 advance licenses will be fulfilled before expiry of the respective
 licenses.
 
 4.  Exceptional items includes :
 
 a) Gain/(Loss) (net) of ( Rs. 17,231.29 Lacs) { Rs. 4,741.27 Lacs} on
 translation/settlement of foreign currency monetary items (including
 borrowing), gain / (loss) of Rs. 456.08 Lacs {( Rs. 600.56 Lacs)} upon
 marked to market of derivatives contracts, gain of Rs. 1,045.24 Lacs ( Rs.
 1,281.78 Lacs) on forward cover cancelation, resulting from volatile
 global market conditions.
 
 b) During the year, recomputation of energy billing to Gridco for the
 year 2010-11 as per the order of OERC resulting in net loss of Rs.
 1,484.36 Lacs.
 
 c) As per the settlement between Xstrata and the company (Jindal
 Stainless Limited), Rs. 3,561.60 Lacs has been considered as payable to
 Xstrata against the disputed shipments of Coking Coal claim (Note
 no.38).
 
 5.  Appeals in respect of certain assessments of Sales Tax / Income
 Tax are pending and additional tax liabilities/refunds, if any, are
 not determinable at this stage. Adjustments for the same will be made
 after the same are finally determined. In the opinion of management
 there will not be material liability on this account.
 
 6.  a) Addition/adjustment to Plant & Machinery / Capital
 Work-In-Progress includes Rs. 41,153.60 Lacs (Net Debit)
 {Rs. 6,508.11 Lacs (Net Credit)} on account of foreign exchange
 fluctuation on Loan/Liability including fluctuation relating to forward
 cover. (Includes amount disclosed in Note No. 43 (c) below).
 
 b) Addition to Building and Plant & Machinery include interest
 amounting to Rs. 7,380.81 Lacs and Rs. 53,466.65 Lacs respectively.
 
 c) Interest expenses includes pro-rata premium of Rs. 41.99 Lacs (Net
 Credit) {Rs. 90.92 Lacs (Net Debit)}
 
 7.  Corporate Debt Restructuring:
 
 i) Pursuant to the approval of CDR (the Scheme) in January 2010 and
 signing of Master Restructuring Agreement (MRA) in March 2010, the
 financial obligations to the lenders was rescheduled including creation
 of funded interest term loan (FITL), adjustment in interest rates and
 additional security in favour of lenders. The Scheme was subsequently
 amended in December 2010 on account of early completion of certain
 projects and reduction in FITL. Interest has been accounted for based
 on the Scheme and the amendments thereof.
 
 ii) The Funded Interest Term Loan (FITL) has been created on certain
 credit facilities as per the Scheme.
 
 iii) The Credit facilities/loans under CDR is additionally secured by
 unconditional and irrevocable Personal guarantee of VC & MD Mr. Ratan
 Jindal.
 
 iv) Under the Scheme, the company have pari passu pledged and submitted
 non-disposal undertaking for all its investments in subsidiaries as
 listed below :
 
 - JSL Lifestyle Limited
 
 - JSL Logistics Limited
 
 - PT. Jindal Stainless Indonesia
 
 - Jindal Stainless UK Limited
 
 - Jindal Stainless FZE
 
 - JSL Group Holdings Pte.  Limited
 
 - JSL Architecture Limited
 
 - Jindal Stainless Madencilik Sanayi ve Ticaret A.S.
 
 - Jindal Aceros Inoxidables S.L.
 
 - Iberjindal S.L.
 
 v) As per the Scheme, the promoters were to arrange equity of Rs. 515
 crore which included Rs. 145 crore linked to sacrifices of lenders as
 stipulated and balance Rs. 370 crore towards further capital expenditure.
 The company had infused fresh equity of Rs. 247 crore by way of QIP
 equity placement in March 2010 and balance equity is proposed to be
 deferred on account of deferment of underlying capital expenditure.
 
 vi) Certain conditions and covenants under the Scheme are in process of
 compliance. Certain secured facilities are subject to balance
 confirmations and/or reconciliation.
 
 vii) During the year, the company has made proposal to its lenders to
 re-work its debt obligations including reworking of repayment schedule,
 adjustments towards interest obligations etc and the proposal is under
 considerations with the lenders.
 
 8.  The company has filed Writ Petition (C) before the Hon''ble High
 Court of Orissa, challenging the order passed by the Dy Commissioner of
 Commercial Tax, Jajpur for the period from 01/10/2006 to 30/09/2010,
 for payment of Entry Tax under the Orissa Entry Tax Act 1999 on the
 goods procured from outside the territory of India. The demand is on
 2/3rd amount of Entry Tax on the goods imported from outside the
 territory of India on which the payment of 1/3rd amount of entry tax
 deposited as per the interim order of the Hon''ble Supreme Court. The
 amount of demand is Rs. 27.00 Crores   Interest of Rs. 2.17 Crores  
 Penalty of Rs. 54.01 Crores.
 
 The Hon''ble Court has heard the matter and vide interim order dated
 14.03.2012, directed the company to deposit 50% of the amount of
 interest i.e. Rs. 1.08 crores by 25.03.2012 and granted stay for the
 balance amount of demand till disposal of the case. The company has
 deposited the amount within the permitted time and informed the Hon''ble
 Court.
 
 9.  Sundry debtors include due from Grid corporation of Orissa
 (Gridco) Limited outstanding for more than six month amounting to Rs.
 102.87 crore. The company had initiated legal action for recovery of
 amount due upto the end of the previous year and part of the debtors
 has been realized during the financial year 2010-11. Pending
 litigation, these debtors balances are not reconciled. The debtors also
 include interest on overdue amount accounted for in terms of contractua
 obligation. The management is hopeful of recovery of these debtors from
 Gridco.
 
 10.  Initially the project was conceived in SEZ and the formal approval
 was granted by the Ministry of Commerce and Industry vide letter
 No.F2/444/2006.SEZ dated 25.10.2006 for development of a Special
 Economic Zone for Stainless steel and ancillary/downstream industry at
 Kalinga Nagar, Orissa. Due to change in global economic scenario and on
 the Company''s request for de-notification of SEZ, appropriate/concerned
 authority finally approved after refund of applicable taxes / duties.
 Finally your company has successfully exited from SEZ Scheme.
 
 11.  The company has filed Writ Petition (C) before the Hon''ble High
 Court of Orissa, Cuttak challenging the order passed by the Jt
 Commissioner of Commercial Tax, Jajpur disallowing the issue of C Form
 for the procurement of plant and machinery for Captive Power Plant
 during the year 2005-06, 2006-07 & 2007-08. The Hon''ble Court heard the
 matter and passed interim order dated 14.03.2012, directing the company
 to deposit 25% out of total demand amounting Rs. 33.06 Crores and the
 balance amount of demand have been stayed till final disposal of the
 matter. The company has deposited the amount within the permitted time
 and informed the Hon''ble Court.
 
 12.  During June 2008, Jindal Stainless Limited (JSL) entered into
 coking coal contract with M/s. Xstrata Coal Queensland Pty.  Ltd.
 (Xstrata) for two shipments of coking coal (50,000 MT each). Certain
 disputes arose between the parties in earlier years.  Xstrata invoked
 Arbitration at London Court of International Arbitration (LCIA) and
 claimed a loss of USD 12.5 million.  LCAI passed an award of USD 8
 million plus interest and costs against JSL. JSL had challenged the
 award by filing its objections u/s 34 of Arbitration and Conciliation
 Act 1996, in the Hon''ble District Court of Odisha at Cuttack, wherein
 the Court had admitted JSL''s petition and had issued notice to Xstrata.
 
 During the year, Xstrata had initiated enforcement proceedings against
 certain overseas assets of JSL, including immovable property situated
 in London, United Kingdom, assets of JSL''s overseas subsidiaries and
 JSL''s investments in its overseas subsidiaries. Subsequent to above,
 the existing lenders initiated their claims in some of the proceedings,
 pursuant to their rights under the security package.
 
 Xstrata has now in-principle agreed to settle the claim for a total
 amount of USD 7 million, however, this is subject to necessary
 statutory approvals and execution of settlement agreement to this
 effect. Pending the fulfillment of foregoing requirements, a provision
 has been created for equivalent of USD 7 million under the head
 Exceptional Items.
 
 13.  (A) certain balances of debtors, trade payable and other
 liabilities are subject to confirmation and/or reconciliation.
 
 (B) Certain charges created for secured loans are in process of
 satisfaction.
 
 (C) Although the book value/fair value of certain unquoted investments
 amounting to Rs. 3,663.10 Lacs ( Rs. 3,663.10 Lacs), as reflected in Note
 no 12, including investment in a foreign subsidiary is lower than the
 cost or companies are having negative net worth, considering the
 strategic and long term nature of the investment, future prospectus and
 assets base of the investee company, such decline, in the opinion of
 the management, has been considered to be of temporary nature and hence
 no provision for the same is considered necessary.
 
 The company has also given inter corporate deposit to its subsidiary
 company amounting to Rs. 4,639.70 Lacs ( Rs. 4,430.11 Lacs) where the
 subsidiary companies has accumulated losses/negative net worth. In view
 of the long term involvement of the company in the said companies no
 provision has been considered necessary.
 
 14.  Advance recoverable in cash or in kind or for value to be received
 includes:- (a) Interest free loan to employee amounting to Rs. 35.62 Lacs
 ( Rs. 16.82 Lacs) in the ordinary course of business and as per employee
 service rules of the company. Maximum balance outstanding during the
 year is Rs. 61.85 Lacs ( Rs. 28.16 Lacs).
 
 (b) Rs. 22.30 Lacs ( Rs. 22.30 Lacs) as advance against share application
 money with subsidiary company.
 
 15.  Research and Development expenses for the year amounting to Rs.
 86.47 Lacs ( Rs. 63.28 Lacs) on account of revenue expenditure
 charged/debited to respective heads of accounts.
 
 16. The Haryana Government levied w.e.f. 05.05.2000 a Local Area
 Development Tax (the LADT Act) on the Manufacturing units in the State
 of Haryana on the entry of goods for use and consumption. JSL and other
 units have challenged the Act in the Hon''ble Punjab and Haryana High
 Court. The Hon''ble Punjab and Haryana High Court disallowed the
 petition in December, 2001 and the company had by a Special Leave
 Petition challenged the Order of High Court in the Hon''ble Supreme
 Court. The Hon''ble Supreme Court referred the matter to a ''five judges''
 Constitutional Bench, which laid certain parameters to examine the Act
 on those lines. On the basis of these parameters the Hon''ble High Court
 have declared the Act to be ultra virus on 14th March, 2007. Since,
 this issue was being canvassed by various High Courts, the Hon''ble
 Supreme Court gave an Interim Order that those states where the High
 Courts have given judgment in favour of the petitioner, no tax would be
 collected. In the mean time the Haryana Government has repealed the
 LADT Act and introduced another Act by the name of ''Entry Tax'' on the
 same lines. That Act was also been held ultra virus by the High Court.
 However, on prudence basis, the liability has been fully provided for.
 The order of Punjab and Haryana High Court and other judgements of all
 the Courts of India have been long pending. The State Governments have
 requested the Hon''ble Supreme Court that it is very difficult for them
 to run the Government. So at least till the pendency of the cases in
 the Hon''ble Supreme Court they may be allowed to charge from past
 liability and also from the future liability to be accrued. On 30th
 October, 2009, the Hon''ble Supreme Court have directed that 1/3rd of
 the liability is to be paid by all the assesses whose cases are pending
 in the High Courts. As, at present, there is no Act either LADT/Entry
 Tax prevalent in Haryana State, no tax is being collected from the
 assesses however undertaking have given by assesses that in case they
 lose they will make the payment. As such on prudence basis, full
 liability has been provided for. In the meantime, i.e. on 16.04.2010
 the Entry Tax matters of the states have been referred to a larger
 9-Judges Constitutional Bench of the Supreme Court, where the judgement
 of 7-Judges Constitutional Bench passed 49 years ago would be
 revisited. Constitution Bench has not been constituted as yet and the
 status of the case is as it is and at present no tax is being
 collected/paid in Haryana.
 
 17.  On 28th July, 2010, the company has granted 3,577,500 stock
 options to eligible employees of the company, its subsidiaries
 including non executive directors (excluding Nominee Director), as per
 Company''s Employee Stock Option Scheme, 2010 (ESOP 2010). The exercise
 price of stock options is Rs. 75/- per share which would gradually vest
 over a maximum period of 4 years from the date of grant based on
 specified criteria, as may be decided by Compensation Committee. During
 the year ended on 31st March, 2012, 487,500 (471,250) stock options
 lapsed due to resignation, retirement etc.
 
 18.  Finance Lease
 
 Assets acquired under leases where the company has substantially all
 the risks and rewards of ownership are classified as finance lease.
 Such assets are capitalized at inception of the lease at the lower of
 the fair value or net present value if minimum lease payments and a
 liability is created for an equivalent amount.
 
 Lease interest charged to profit & loss for right to use of CTL Machine
 (Cut to length) for the services regarding cutting of Stainless Steel
 sheets.
 
 19.  During the year ended 31st March 2012, the Revised Schedule VI
 notified under the Companies Act 1956, has become applicable to the
 company, for preparation and presentation of its financial statements.
 The adoption of revised schedule VI does not impact recognition and
 measurement principles followed for preparation of financial
 statements, however it has significant impact on presentation and
 disclosures made in the financial statements. The company has also
 reclassified the previous year figures in accordance with the
 requirements applicable in the current year.
 
 20.  The company has exercised option available to its under clause 46A
 of Accounting Standard AS 11 as amended by the Companies (Accounting
 Standards) (Second Amendment) Rules, 2011 in respect of accounting for
 fluctuation in foreign exchange relating to Long Term Foreign Currency
 Monetary Items. Accordingly, during the year, the company has adjusted
 a sum of Rs. 5,611.19 Lacs to the cost of its fixed assets on account of
 such difference arising during the year ended on 31st March, 2012,
 which was hitherto charged to the profit & loss account.
 
 21. Segment Reporting
 
 i) Information about Business Segment ( for the year 2011-12 )
 
 Company operates in a Single Primary Segment ( Business Segment ) i.e.
 Stainless Steel products.
 
 22.  Related Party Transactions
 
 A List of Related Party & Relationship ( As identified by the
 Management )
 
 a) Subsidiary Companies :
 
 1 PT. Jindal Stainless Indonesia
 
 2 Jindal Stainless Steelway Limited
 
 3 JSL Lifestyle Limited
 
 4 JSL Architecture Limited
 
 5 Jindal Stainless UK Limited
 
 6 Jindal Stainless FZE
 
 7 Green Delhi BQS Limited
 
 8 Jindal Stainless Madencilik Sanayi Ve Ticaret Anonim Sirketi
 
 9 JSL Media Limited
 
 10 Jindal Aceros Inoxidables S.L.
 
 11 JSL Group Holdings Pte.  Limited
 
 12 JSL Logistics Limited
 
 13 Iberjindal S.L.
 
 14 Jindal Stainless Italy Srl.
 
 15 JSL Ventures Pte. Limited
 
 16 JSL Europe SA
 
 17 JSL Minerals & Metals SA
 
 b) Joint Ventures:
 
 1 MJSJ Coal Limited
 
 c) Key Management Personnel :
 
 1 Smt. Savitri Devi Jindal Chairperson (till 31.03.2011)
 
 2 Shri Ratan Jindal Vice-Chairman & Managing Director
 
 3 Shri Ramesh R. Nair President & Executive Director (w.e.f.
 03.11.2011)
 
 4 Shri Arvind Parakh Director - Finance (till 01.10.2011)
 
 5 Shri S.S. Virdi Executive Director & Chief Operating Officer (w.e.f.
 06.04.2010)
 
 6 Shri Jitender P Verma Executive Director - Finance (w.e.f.
 09.02.2012)
 
 7 Shri N.P. Jayaswal Executive Director (till 06.04.2010)
 
 8 Shri Jitendra Kumar Company Secretary
 
 d) Enterprises over which Key Management Personnel and their relatives
 exercise significant influence with whom transactions have been taken
 place during the year:
 
 1 Jindal Steel & Power Limited
 
 2 JSW Steel Limited
 
 3 Jindal Saw Limited
 
 4 Jindal Industries Limited
 
 5 Nalwa Steel & Power Limited
 
 6 Bir Plantation Private Limited
 
 7 Sona Bheel Tea Limited
 
 8 Jindal Overseas Holding Limited
 
 9 JSW Ispat Steel Limited
 
 23.  Previous years'' figures have been re-arranged and regrouped
 wherever considered necessary .
 
 24.  Figures in bracket indicate previous year figures.
 
 25.  Note 1 to 58 are annexed to and form integral part of the Balance
 Sheet and Statement of Profit & Loss.