JSW Steel

1.  Contingent Liabilities not provided for in respect of:
 
 a) Bills Discounted Rs. 977.32 crores (Previous year Rs. 1,131.21
 crores).
 
 b) Guarantees provided on behalf of subsidiaries (including step down
 subsidiaries) and others Rs. 2,135.74 crores (Previous year Rs.
 2,993.16 crores).
 
 c) Disputed statutory claims/levies including those pending in courts
 (excluding interest leviable, if any), in respect of:
 
 (i) Excise Duty Rs.  90.01 crores (Previous year Rs. 82.17 crores);
 
 (ii) Custom Duty Rs.  223.85 cores (Previous year Rs. 219.87 crores);
 
 (iii) Income Tax Rs.  36.28 crores (Previous year Rs. 36.28 crores);
 
 (iv) Sales Tax/Special Entry tax Rs. 0.35 crores (Previous year Rs.
 0.29 crores);
 
 (v) Service Tax Rs.  31.27 crores (Previous year Rs. 20.32 crores);
 
 (vi) Miscellaneous Rs.  0.24 crores (Previous year Rs. 0.24 crores);
 and
 
 (vii) Levies by local authorities Rs.15.28 crores (Previous year Rs.
 15.92 crores).
 
 d) Claims by Suppliers and other third parties not acknowledged as
 debts Rs. 131.73 crores (Previous year Rs. 90.81 crores).
 
 2.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for (net of advances) Rs. 4,660.30 crores
 (Previous year Rs. 6,555.68 crores).
 
 3.  Pursuant to the amendment of the transitional provisions of
 Accounting Standard 11 on The Effects of Changes in Foreign Exchange
 Rates, exchange differences relating to long-term monetary items have
 been accounted for as described in A (9) of Schedule 18 foregoing.
 
 Accordingly, Rs. 268.58 crores has been added to the cost of the fixed
 assets, Rs. 7.83 crores transferred to Foreign Currency Monetary Item
 Translation Difference Account (unamortised balance at year end Rs.
 3.55 crores) and consequently, the profit for the year is higher by Rs.
 268.06 crores and the General Reserve is lower by Rs. 27.74 crores.
 
 4.  Exceptional Items represent net exchange loss of Rs.790.13 crores
 due to the unprecedented depreciation in the value of the rupee against
 various foreign currencies over the last year.
 
 5.  Derivatives:
 
 a) The Company uses foreign currency forward contracts to hedge its
 risks associated with foreign currency fluctuations relating to certain
 firm commitments and highly probable forecast transactions. The use of
 foreign currency forward contracts is governed by the Companys strategy
 approved by the Board of Directors, which provide principles on the use
 of such forward contracts consistent with the Companys Risk Management
 Policy.
 
 b) The Company also uses derivative contracts other than forward
 contracts to hedge the interest rate and currency risk on its capital
 account. Such transactions are governed by the strategy approved by the
 Board of Directors, which provide principles on the use of these
 instruments, consistent with the Companys Risk Management Policy.  The
 Company does not use these contracts for speculative purposes.
 
 6.  Segment Reporting:
 
 The Company is primarily engaged in the business of manufacture and
 sale of Iron and Steel Products. The Company has identified two primary
 business segments, namely Steel and Power (used mainly for captive
 consumption), which in the context of Accounting Standard 17 on
 Segment Reporting constitute reportable segments.
 
 7.  Operating Lease:
 
 a) As Lessor:
 
 i.  The Company has entered into lease arrangements, for renting:
 
 2,279 houses (admeasuring approximately 1,410,997 square feet) at the
 rate of Rs. 100/- per house per annum, for a period of 180 months.  672
 houses (admeasuring approximately 551,051 square feet) at the rate of
 Rs. 24/- per square feet per annum, for a period of 36 to 60 months.
 
 1 house at the rate of Rs. 0.60 lacs per annum, for a period of 11
 months.  and are renewable the options of the lessee after the end of
 the term.
 
 8.  The Company has the following Joint venture interest in India as
 at 31 March 2009:
 
 Interest as Venturer
 
 Vijayanagar Minerals Private Limited: Percentage of holding 40%
 (Previous year 40%)
 
 Rohne Coal Company Private Limited: Percentage of holding 49% (Previous
 year Nil)
 
 Interest as Investor
 
 MJSJ Coal Limited: Percentage of holding 11% (Previous year Nil)
 
 9.  Previous years figures have been regrouped, wherever necessary, to
 conform with current years presentation.