i) Basis of Preparation of Financial Statements
 
 the financial statements are prepared under the historical cost
 convention, on going concern basis and in terms of the Accounting
 Standards notifed by Companies (Accounting Standards) Rules, 2006 in
 compliance with Section 211(3C) of the Companies Act, 1956. The Company
 follows the mercantile system of accounting and recognises income and
 expenditure on accrual basis to the extent measurable and where there
 is certainty of ultimate realisation in respect of incomes. Accounting
 policies not specifically referred to otherwise are consistent and in
 consonance with the generally accepted accounting principles in India.
 
 ii) Use of estimates
 
 the preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amount 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. Although these estimates are based upon management''s best
 knowledge of current events and actions, actual results could differ
 from these estimates. difference between the actual result and
 estimates are recognised in the period in which the results are
 known/materialised.
 
 iii) Fixed Assets and depreciation
 
 a) Fixed Assets
 
 Fixed Assets are stated at cost less accumulated depreciation and
 impairment losses, if any. Costs include cost of acquisitions or
 constructions, including incidental expenses thereto and other
 attributable costs of bringing the asset to its working condition for
 its intended use and are net of available duty/tax credits.
 
 b) Expenditure during construction period
 
 Expenditure related to and incurred during implementation of
 new/expansion-cum- modernisation projects is included under capital
 work-in-progress and the same is allocated to the respective Fixed
 Assets on completion of its construction/erection.
 
 c) Intangible Assets
 
 Intangible Assets are recognised on the basis of recognition criteria
 as set out in Accounting Standard (AS-26) ''intangible Assets''.
 
 d) depreciation and Amortisation
 
 depreciation on fixed assets is provided on straight-line method (SLm)
 at the rates and in the manner specified in Schedule XiV to the
 Companies Act, 1956. Leasehold land and aircraft are amortised over the
 period of lease.  In the case of assets where impairment loss is
 recognised, the revised carrying amount is depreciated over the
 remaining estimated useful life of the asset.
 
 Certain Plant and machinery have been considered as continuous process
 plant on the basis of technical assessment and depreciation on the same
 is provided for accordingly.
 
 Intangible Assets are amortised on straight-line method over the
 expected duration of benefits not exceeding ten years.
 
 iv) Impairment of Assets
 
 The carrying amount of assets is reviewed for impairment at each
 balance sheet date wherever events or changes in circumstances indicate
 that the carrying amount may not be recoverable. An impairment loss is
 recognised for the amount for which the asset''s carrying amount exceeds
 its recoverable amount being the higher of the assets net selling price
 and its value in use. Value in use is based on the present value of the
 estimated future cash flows relating to the asset. For the purpose of
 assessing impairment, assets are grouped at the lowest levels for which
 there are separately identifiable cash flows (i.e. cash generating
 units).
 
 Previously recognised impairment losses are reversed where the
 recoverable amount increases because of favourable changes in the
 estimates used to determine the recoverable amount since the last
 impairment was recognised. A reversal of an asset''s impairment loss is
 limited to its carrying amount that would have been determined (net of
 depreciation or amortisation) had no impairment loss been recognised in
 prior years.
 
 v) Accounting for Leases
 
 a) Finance lease, is recognised as an asset and a liability to the
 lessor at fair value at the inception of the lease.
 
 b) The lease payments under operating lease as per respective lease
 agreements are recognised as expense in the Profit and loss account on a
 straight line basis over the lease term.
 
 vi) Borrowing Cost
 
 Borrowing cost related to a qualifying asset is worked out on the basis
 of actual utilisation of funds out of project specific loans and/or
 other borrowings to the extent identifiable with the qualifying asset
 and is capitalised with the cost of the qualifying asset.  other
 borrowing costs incurred during the period are charged to Profit and
 loss account.
 
 vii) Segment Reporting
 
 a) Identifcation of segments
 
 The Company''s operating businesses are organised and managed separately
 according to the nature of products manufactured and services provided,
 with each segment representing a strategic business unit that offers
 different products. The analysis of geographical segments is based on
 the areas in which major operating divisions of the Company operate.
 
 b) Inter-segment transfers
 
 The Company accounts for intersegment sales and transfers as if the
 sales or transfers were to third parties at current market prices.
 
 c) Allocation of common costs
 
 Common allocable costs are allocated to each segment on reasonable
 basis.
 
 d) Unallocated items
 
 It Include general corporate income and expense items which are not
 allocable to any business segment.
 
 e) Segment Policies
 
 The company prepares its segment information in conformity with the
 accounting policies adopted for preparing and presenting the financial
 statements of the company as a whole.
 
 viii) Valuation of Inventories
 
 Raw materials and Stores & Spares are valued at lower of cost, computed
 on weighted average basis, and net realisable value. Cost includes the
 purchase price as well as incidental expenses. Scrap is valued at
 estimated realisable value.
 
 Work-in-process is valued at lower of estimated cost and net realisable
 value and finished goods are valued at lower of cost and net realisable
 value. Cost for this purpose includes direct cost and appropriate
 administrative and other overheads.
 
 Net realisable 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.
 
 ix) Inter-division transfers
 
 Inter-division transfer of goods, as independent marketable products
 produced by various divisions for captive consumption, is accounted for
 at approximate prevailing market price. The same is shown as a contra
 item to reflect the true working of the respective divisions in the
 Profit & Loss Account. Any unrealised Profit on unsold stocks is
 eliminated while valuing the inventories.  the value of such
 inter-divisional transfer is netted off from sales and operational
 income and expenses under materials, manufacturing and others.
 
 Inter-divisional transfer/captive consumption related to Fixed Assets
 is at cost.
 
 x) Foreign Currency Transactions
 
 Foreign currency transactions are recorded at the rate of exchange
 prevailing at the date of the transaction.  monetary foreign currency
 assets and liabilities are translated at the year-end exchange rates
 and resultant gains/losses are recognised in the Profit & loss account
 for the year, except to the extent that they relate to new projects
 till the date of capitalisation which are carried to pre-operative
 expenses and those relating to fixed assets which are adjusted to the
 carrying cost of the respective assets.
 
 In case of forward foreign exchange contracts, exchange differences are
 dealt with in the Profit & loss account over the life of the contract
 except those relating to fixed assets in which case they are capitalised
 with the cost of respective fixed assets.  Non-monetary foreign currency
 items are carried at historical cost.
 
 In case of foreign subsidiaries, with non-integral foreign operations,
 revenue items are converted at the average rate prevailing during the
 year. All assets and liabilities are converted at the rates prevailing
 at the end of the year. Exchange difference arising on conversion is
 recognised in Foreign Currency Translation Reserve.
 
 xi) Investments
 
 Long-term investments are carried at cost. Provision is made when, in
 the opinion of the management, diminution in the value of investment is
 other than temporary in nature. Current investments are carried at the
 lower of cost or market/fair value.
 
 xii) Revenue Recognition
 
 a) Sales and operational income comprises of sales, inter-division
 transfer, job charges and export benefits.  ''Net Sales and operational
 income'', net of excise duty and inter-divisional transfer is also
 disclosed separately.
 
 b) Sales is inclusive of excise but net of returns, rebates, VAt and
 sales tax. materials returned/ rejected are accounted for in the year
 of return/ rejection.
 
 c) Export sales are accounted for on the basis of the date of bill of
 lading/airways bill.
 
 d) Income from job charges is accounted for at the time of completion
 of service and billing thereof.
 
 e) export benefits available under the export Import policy of the
 Government of India are accounted for in the year of export, to the
 extent measurable.
 
 xiii) other income
 
 a) Claims receivable
 
 Since it is not possible to ascertain with reasonable certainty, the
 quantum of accruals in respect of claims recoverable such as from
 Railways, Insurance, Electricity, Customs, Excise and the like, the
 same are accounted for on receipt basis.
 
 b) Income from Investment
 
 Income from Investment is accounted for on accrual basis when the right
 to receive income is established.
 
 xiv) excise duty
 
 excise duty liability on finished goods manufactured and lying in the
 factory is accounted for and the corresponding amount is considered for
 valuation thereof.
 
 xv) employee benefits
 
 expenses & liabilities in respect of employee benefits are recorded in
 accordance with Accounting Standard (AS-15) ''employee benefits''.
 
 a) Provident Fund
 
 The Company makes contribution to statutory provident fund in
 accordance with the Employees Provident Fund & miscellaneous Provisions
 Act, 1952 which is a defined contribution plan and contribution paid or
 payable is recognised as an expense in the period in which services are
 rendered by the employee.
 
 b) Gratuity
 
 Gratuity is a post employment benefit and is in the nature of a defined
 benefit plan.  the liability recognised in the Balance Sheet in respect
 of gratuity is the present value of the defined benefit/ obligation at
 the Balance Sheet date less the fair value of plan assets, together
 with adjustment for unrecognised actuarial gains or losses and past
 service costs. the defined benefit/obligation is calculated at or near
 the Balance Sheet date by an independent Actuary using the projected
 unit credit method.
 
 c) Compensated absences
 
 Liability in respect of Compensated absences due or expected to be
 availed within one year from the Balance Sheet date is recognised on
 the basis of undiscounted value of estimated amount required to be paid
 or estimated value of benefit expected to be availed by the employees.
 Liability in respect of compensated absences becoming due or expected
 to be availed more than one year after the Balance Sheet date is
 estimated on the basis of an actuarial valuation performed by an
 independent Actuary using the projected unit credit method.
 
 d) other short term benefits expense in respect of other short term
 benefits is recognised on the basis of the amount paid or payable for
 the period during which services are rendered by the employee.
 
 xvi) Research and development expenditure
 
 Research and development expenditure not fulflling the recognition
 criteria as set out in Accounting Standard (AS-26) ''intangible Assets''
 is charged to the Profit and loss account while capital expenditure is
 added to the cost of fixed assets in the year in which it is incurred.
 
 xvii) employee Stock option Scheme
 
 Stock options granted to the employees of the Company and its
 subsidiary under the Employees'' Stock option Scheme(s) are evaluated on
 intrinsic Value method as per the accounting treatment prescribed by
 the employee Stock option Scheme and Employee Stock Purchase Scheme
 Guidelines, 1999 issued by the Securities and Exchange Board of India.
 
 Accordingly, excess of market value of the stock option as on date of
 grant over the exercise price of the option is recognised as deferred
 employee compensation and is charged to the Profit and loss account as
 employee cost on straight line method over the vesting period of the
 options. The options that lapse are reversed by a credit to employees''
 compensation expenses, equal to amortised portion of value of lapsed
 portion and credit to deferred employee compensation expense, equal to
 the unamortised portion. The balance in employee stock option
 outstanding amount net of any unamortised deferred employee
 compensation is shown separately as part of shareholder''s funds.
 
 xviii) Taxes on Income
 
 Provision for current tax is made considering various allowances and
 benefits available to the Company under the provisions of the Income Tax
 Act, 1961.
 
 In accordance with Accounting Standard (AS-22) ''Accounting for taxes on
 income'', deferred taxes resulting from timing differences between book
 and tax Profits are accounted for at the tax rate substantively enacted
 by the Balance Sheet date to the extent the timing differences are
 expected to be crystallised. deferred tax assets are recognised and
 reviewed at each Balance Sheet date to the extent there is
 reasonable/virtual certainty of realising such assets against future
 taxable income.
 
 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.
 
 xix) Provisions, contingent liabilities and contingent assets
 
 Provisions are recognised for present obligations of uncertain timing
 or amount arising as a result of a past event where a reliable estimate
 can be made and it is probable that an outflow of resources embodying
 economic benefits will be required to settle the obligation. Where it is
 not probable that an outflow of resources embodying economic benefits
 will be required or the amount cannot be estimated reliably, the
 obligation is disclosed as a contingent liability, unless the
 probability of outflow of resources embodying economic benefits is
 remote.
 
 Possible obligations, whose existence will only be confirmed by the
 occurrence or non-occurrence of one or more uncertain events, are also
 disclosed as contingent liabilities unless the probability of outflow of
 resources embodying economic benefits is remote.
 
 Contingent assets are neither recognised nor disclosed in the financial
 statements.
 
 xx) Miscellaneous expenditure
 
 Iron ore/Coal mines development expenditure shown under ''miscellaneous
 expenditure is amortised over a period of ten years starting from the
 year of commencement of commercial production.
 
 xxi) Earnings per Share
 
 The earnings considered in ascertaining the Company''s Earnings per
 Share (EPS) comprise of the net Profit after tax attributable to equity
 shareholders.  The number of shares used in computing basic EPS is the
 weighted average number of shares outstanding during the period
 adjusted for events of bonus issue post period end, bonus elements in a
 rights issue to existing shareholders, share split, and reverse share
 split (consolidation of shares). The diluted EPS is calculated on the
 same basis as basic EPS, after adjusting for the effects of potential
 dilutive equity shares unless impact is anti-dilutive.
 
 xxii) Financial derivatives
 
 Forward contracts, other than those entered into to hedge foreign
 currency risk on unexecuted frm commitments or highly probable forecast
 transactions, are treated as foreign currency transactions and
 accounted as per Accounting Standard (AS-11) ''the Effects of Changes in
 Foreign Exchange Rates''.  Exchange differences arising on such
 contracts are recognised in the period in which they arise.
 
 All other derivative contracts, including forward contracts entered
 into to hedge foreign currency/ interest rate risks on unexecuted frm
 commitments and highly probable forecast transactions, are recognised
 in the financial statements at fair value at each reporting date, in
 pursuance of the announcement of the Institute of Chartered Accountants
 of India (iCAi) on Accounting for derivatives.