Notes:
 
 1.  The Cash Flow Statement has been compiled from and is based on the
 Balance Sheet as at June 30,2012and the related Statement of Profit and
 Loss for the year ended on that date.
 
 2.  The Cash Flow Statement has been prepared under the indirect method
 as set out in the Accounting Standard 3 on Cash flow Statement as
 notified under Section 211(3C) of the Companies Act, 1956 and
 reallocation required forthis purpose are as made by the Company.
 
 * Current Investments in debt based Mutual Funds are readily
 convertible into cash and having insignificant risk of changes of value
 have been included in Cash and Cash Equivalents
 
 4.  Figuresin bracket indicate cash outgo, except foradjustments for
 operating activities.
 
 5.  Previous year''s figures have been reclassified / regrouped,
 wherever necessary.
 
 1.  GENERAL INFORMATION
 
 Kennametal India Limited (the Company) is incorporated under The
 Companies Act 1956. The Company is in the business of manufacturing and
 trading of hard metal and hard metal products, and machine tools.  The
 Company has its registered office and a manufacturing facility at
 Bangalore and sells its products and services through sales and support
 offices. The Company is a public limited company listed on the Bombay
 Stock Exchange (BSE).
 
 (a) Rights, preferences and restrictions attached to shares
 
 The Company has only one class of equity shares having a par value of
 Rs.10 per share. Each shareholder is eligible for one vote per share
 held. The dividend proposed by the Board of Directors is subject to
 approval of the shareholders in the ensuing Annual General Meeting,
 except in case of interim dividend. In the event of liquidation, the
 equity shareholders are eligible to receive the remaining assets of the
 Company after distribution of all preferential amounts, if any, in pro
 portion to their shareholding.
 
 2.  CAPITAL AND OTHER COMMITMENTS:
 
 2.1 Capital Commitments (net of advances) Rs.905 (2011: Rs.2100)
 
 3.  CONTINGENT LIABILITIES
 
 Nature of Contingent Liability                     2012      2011
 
 Income Tax matters [Note (a)]                      1259       654
 
 Excise Duty /Service Tax matters under dispute       93        70
 
 Sales Tax matters under dispute                      48        24
 
 Notes:
 
 a) Relates to transfer pricing adjustments made by the Income Tax
 Department for the assessment years 2007-08 and 2008-09 which is
 disputed by the Company and the matter is lying under appeal with The
 Income Tax Appellate Tribunal, Bangalore, and The Commissioner of
 Income Tax, Appeals, Bangalore respectively. The Company has paid
 under protest Rs.1237 (2011: Nil) to the Income Tax Department in
 this regard.
 
 b)Thereare certain non-quantifi able industrial disputes pending before
 various judicial authorities.
 
 Note: The above disclosure of tangible fixed assets categories is based
 on Department of Scientific & Industrial Research (DSIR), Ministry of
 Science and Technology, Government of India requirements.
 
 * The Guidance Note on implementation of AS15  Employee Benefits
 issued by the Institute of Chartered Accountants of India states that
 Provident Fund set up by employers that guarantee a specified rate of
 return and which require interest shortfall to be met by employer would
 be a Defined Benefit plan in accordance with the requirements of para
 (26b) of AS15. Pursuant to the Guidance Note, the liability in respect
 of the shortfall of interest determined on the basis of an independent
 actuarial valuation [carried out as per the Guidance Note (GN29) issued
 by Institute of Actuaries of India effective fromApril 1,2011], as at
 June30,2012is Nil.
 
 i) The discount rate is based on the prevailing market yield on
 Government securities as at the balance sheet date for the estimated
 term of obligations.
 
 ii) The expected return on plan assets is determined considering
 several applicable factors mainly the composition of plan assets held,
 assessed risk of asset management, historical results of the return on
 plan assets, and the company''s policy for plan asset management.
 
 iii) The estimates of future salary increases, considered in actuarial
 valuation, take account of inflation, seniority, promotion and other
 relevant factors such as supply and demand factors in the employment
 market.
 
 4. SEGMENT REPORTING
 
 The Company is in the business of manufacturing and trading of hard
 metal and hard metal products, and machine tools, which have been
 identified as business segment, for primary segment reporting.  The
 Company''s products are sold in domestic and export markets, which have
 been identified as geographicsegmentsforsecondary segment reporting.
 
 Note: Revenue from export sales is below threshold set out in
 Accounting Standard 17 Segment Reporting and accordingly,
 disclosure of revenue by geographical location of the customer and
 carrying amount of segment assets by geographical location is
 notapplicable.
 
 5. Accounting and disclosure for leases has been made in accordance
 with the Accounting Standard 19 as follows:
 
 Operating Lease:
 
 I) Company as Lessee:
 
 The Company has various operating leases for motor vehicles, office
 facilities, residential premises for employees, etc. Such leases are
 generally with options of renewal against increased rent and premature
 termination of agreement through notice period of 1 to 3 months. The
 particulars of these leases are as follows:
 
 Notes:
 
 a) The Company sets up and maintains provisions for trade and other
 demands when a reasonable estimate can be made. These provisions are
 made based on estimates made by the management that are reviewed
 annually. These matters involve quick settlements not exceeding a
 period of two to three years in most cases.
 
 b) Relates to provision toward disputed taxes. Considering the very
 nature of such disputes, the timing/ uncertainties of cash outflow is
 not readily ascertainable.
 
 c) Figures in brackets relate to prioryear.
 
 6.  The Company does not have a scheme for grant of its stock options
 either to the Executive Directors or employees for the shares issued in
 India. However, the Managing Director and certain senior management
 employees of the Company are granted stock options in a share based
 compensation plan of Kennametal Inc. USA, the ultimate holding company.
 
 These plans are assessed, managed and administered by the ultimate
 holding company and no cross charges/ debits have been made on the
 Company.
 
 7.  The financial statements for the year ended June 30, 2011 had been
 prepared as per the then applicable, pre revised Schedule VI to the
 Companies Act, 1956. Consequent to the notification of Revised Schedule
 VI under the Companies Act, 1956, the financial statements for the year
 ended June 30, 2012 are prepared as per Revised Schedule VI.
 Accordingly, the previous year figures have also been reclassified to
 conform to this year''s classification. The adoption of Revised Schedule
 VI for previous year figures does not impact recognition and
 measurement princi pies followed fo r pre paration of fi nancial
 statements.