1.  Nava Bharat Ventures Limited (the Company) has been incorporated on
 7th November,1972. At present the Company is engaged in the business of
 manufacture of ferro alloys, sugar and generation of power.
 
 2.  The following are the signifcant Accounting Policies adopted by the
 Company in preparation and presentation of financial statements.
 
 3. i) Disclosure of Sundry Creditors under Current Liabilities is based
 on the information available with the Company regarding the status of
 the suppliers as defned under the Micro, Small and Medium Enterprises
 Development Act, 2006 and relied upon by the Auditors.
 
 4. In terms of Accounting Standard 22 Accounting for Taxes on Income
 (AS 22) issued by The Institute of Chartered Accountants of India, the
 Company has accounted for the deferred taxes during the year. The
 following are the major components of deferred tax (asset)/liability.
 
 5.  Out of 76,364,668 (previous year 76,255,458) Equity Shares of Rs 2/-
 each fully paid-up of the Company:
 
 i) 14,167,095 shares were allotted as fully paid-up pursuant to schemes
 of amalgamation without receiving the payment in cash.
 
 ii) 12,137,095 shares are allotted as fully paid-up by way of bonus
 shares by capitalising Reserves.
 
 iii) Pursuant to the order of Hon’ble High Court of Andhra Pradesh
 dated 30.12.1996 in the Scheme of amalgamation of Nav Chrome Limited
 with the Company, 4,973,510 equity shares of Rs 2/- each fully paid up
 owned by the Company are vested in a Trustee for the benefit of the
 Company which are to be sold and net sale proceeds are to be paid to
 the Company and such shares are not considered for dividend.
 
 iv) During the year, the Company has allotted 109,210 (Previous Year
 282,730) Equity Shares of Rs 2/- each at a premium of Rs 111.15
 (including the difference between the fair value and the exercise
 price) per share on exercise of 109,210 (Previous Year 282,730)
 Employees Stock options.
 
 v) Dividend for the year is provided on the equity shares arising out
 of proposed conversion of FCCBs into capital also, as the conversion is
 expected to take place before book closure.
 
 6.  a) During the year 2006-07, the Company has issued Zero Coupon
 Foreign Currency Convertible Bonds for an amount of JPY 6.00 billion at
 par. These bonds are convertible into Equity Shares with a fixed rate of
 exchange of Rs 0.3976 per 1 JPY at an initial conversion price of Rs
 136.50 per Share at the option of bondholders at any time on or after
 14th October, 2006 and on or before the close of business hours (i.e.
 5.00 P.M.) on 31st August 2011. The Company also has an option to
 convert all these bonds on or after 29th September 2009 and prior to
 30th September 2011 at the then prevailing conversion price as per the
 terms of issue. Out of the above, 2.48 billion Bonds were converted
 during the year 2007-08 and if all the remaining bonds are converted
 into Equity Shares, the paid up Equity Share Capital of the Company
 will increase by 9,700,620 Equity Shares of Rs 2/- each. If no such
 conversion takes place, the Bonds are redeemable on 30th September 2011
 at a redemption premium of 25.96% so as to give the bondholders gross
 yield to maturity of 4.67% per annum compounded semi-annually.
 
 b) The Company issued Conversion notice on 17th January 2011 to the
 Trustees for Bondholders fixing the date of conversion as 28th February
 2011. The Issuers’ Conversion Right will be restricted to the
 conversion of Bonds into Equity Shares which works out to less than
 14.5% of the enhanced Capital for each bondholder. The Bondholders have
 to comply with the procedures to enable the Company to complete the
 conversion process.
 
 c) As the variables are indeterminate at present, the premium on actual
 redemption is not computable and hence will be recognised, as and when
 the redemption option is exercised, as a charge to the Securities
 Premium Account in terms of Section 78(2)(d) of the Companies Act,1956.
 
 7.  Fixed Deposit Receipts for Rs 504.86 Lakhs (Previous year Rs 391.81
 Lakhs) are in lien with Bankers towards Margin Money for Bank
 Guarantees and Letters of Credit issued by them.
 
 8.  a) The Company’s land of about 5.08 acres was given possession to
 M/s.Hyderabad Vanaspathi Limited. The sale price of the same is yet to
 be adjusted pending permission from the Government of Andhra Pradesh.
 
 b) The title in respect of the land costing Rs 1.23 Lakhs (previous year
 Rs 1.23 Lakhs) admeasuring 6 acres and 23 guntas (previous year 6 acres
 23 guntas) is yet to be transferred in the name of the Company.
 
 c) Land costing Rs 26.06 Lakhs admeasuring 5.05 acres allotted by APIIC
 Limited during the year 2009-10, is not yet transferred in the name of
 the Company.
 
 d) Cost of leasehold land amounting to Rs 140.33 Lakhs shown under the
 head Fixed Assets represents the premium paid to the State Government
 of Orissa for alienation of 56.36 acres in favour of the Company by
 virtue of lease deeds for 90/99 years and the said land can be resumed
 by the said Government by giving 6 months notice in writing during the
 tenure of lease.
 
 9.  As required by Accounting Standard (AS 28) Impairment of Assets,
 the management has carried out the assessment of impairment of assets
 and no impairment loss has been recognised during the year other than
 the assets discarded/ dismantled and written off to profit and Loss
 Account.
 
 c) 6 year National Savings Certifcates of the face value of Rs 3.24
 Lakhs (Previous year Rs 2.91 Lakhs) shown under the investments are in
 the names of employees of the Company and the certifcates in respect of
 face value of Rs 3.19 Lakhs (Previous year Rs 2.86 Lakhs) were pledged
 with various Government Departments as security.
 
 10. a) In the opinion of the management, the Current Assets, Loans and
 Advances are expected to realise at least the amount at which they are
 stated, if realised in the ordinary course of business and provision
 for all known liabilities have been adequately made in the accounts.
 
 b) Sundry Debtors due for less than six months amounting to Rs 19,570.75
 Lakhs (Previous year Rs 14,502.52 Lakhs) include Rs 14,171.53 Lakhs
 (Previous year Rs 8,731.82 Lakhs) due from a foreign subsidiary Company
 viz., M/s.Nava Bharat (Singapore) Pte. Limited, Singapore.
 
 The rate of escalation in salary considered in actuarial valuation is
 estimated taking into account infation, seniority, promotion and other
 relevant factors.
 
 The above information is certifed by an actuary.
 
 11. The Company uses derivative financial instruments such as forward
 contracts and currency swap to hedge currency exposures, present and
 anticipated, denominated mostly in US Dollars and Japanese Yen and all
 financial and derivative contracts entered into by the Company are for
 hedging purpose only.
 
 12. a) Working Capital Loans from Banks are secured by hypothecation of
 raw materials, work-in-progress, fnished goods, stores and spares and
 book debts to the extent of Rs 20,000 Lakhs and a second charge on fixed
 assets of the Company.
 
 b) The Term Loans from IDBI Bank Limited, Infrastructure Development
 Finance Company Limited, Andhra Bank, State Bank of India, Bank of
 India, State Bank of Hyderabad, UCO Bank are secured by First Charge by
 way of equitable mortgage by deposit of title deeds to cover all
 immovable properties of the Company and hypothecation of all movable
 properties including movable Plant and Machinery, spares, tools and
 accessories, both present and future and a second charge by way of
 hypothecation of all movable properties both present and future (except
 book debts) subject to prior charges created/to be created in favour of
 Companys bankers on its stocks of raw materials, semi-fnished and
 fnished goods, consumable stores for securing borrowings for working
 capital requirements.  The mortgage/charges created above shall rank
 pari-passu with the charges created/ to be created in favour of other
 Financial Institutions/Banks.
 
 c) The Term Loan availed from Andhra Bank amounting to Rs 6,000.00 Lakhs
 out of the sanction of Rs 20,000 Lakhs for funding a foreign subsidiary
 Company, i.e. Nava Bharat (Singapore) Pte Limited is also secured by
 pledge of 6,300,000 equity shares of US/- each held by Company in the
 said subsidiary and hypothecation of mineral and mining rights of
 subsidiary.
 
 d) All the above said loans are also guaranteed by some of the
 directors of the Company in their personal capacity.
 
 13.  Contingent liabilities not provided for on account of:
 
                                                     (Rs in Lakhs)
 
                                              As at       As at
 
                                     31st March 2011  31st March 2010
 
 a) Guarantees given by the Bankers          941.96       543.37
 
 b) Guarantees given by the Company 
 on behalf of others                      32,115.20        10.40
 
 c) Claims against the Company not 
 acknowledged as debts                     1,033.08       883.92
 
 d) Demand raised by A. P. State 
 Electricity Board (reconstituted as
 Transmission Corporation of Andhra 
 Pradesh Limited) towards additional
 charges on power tariff difference 
 between HT I and HT
 
 III categories and surcharge on belated 
 payments disputed by the                    136.45      136.45
 
 Company, pending in appeal with High 
 Court of A.P.
 
 e) Interest on dues to A. P. State 
 Electricity Board (reconstituted as
 Transmission Corporation of Andhra 
 Pradesh Limited).                            62.35       62.35
 
 f) Demand from Income-tax department 
 disputed                                  1,191.51      684.41
 
 g) Customs duty payable on 
 imports-in-transit                            0.62         -
 
 14. The Company has imported certain goods under the Export Promotion
 Capital Goods Scheme of the Government of India at concessional rates
 of duty on an undertaking to fulfl quantifed exports against which the
 remaining future obligations aggregate to Rs 1,362.27 Lakhs and Rs
 1,734.95 Lakhs which is to be fulflled within next 2 years and 5 years
 respectively.  Non-fulflment of the balance obligation within the said
 period render the Company liable to pay the balance duty of Rs 387.15
 Lakhs and other penalties under the above referred Scheme.
 
 15.  Showcause notices received from Central Excise Department to issue
 demand notices for an amount of Rs 10,169.35 Lakhs (Previous year Rs
 9,064.91 Lakhs) are pending for fnal consideration and the Company has
 already submitted its objections in writing against the said demands.
 
 16.  The amount of contracts remaining to be executed on capital
 account and not provided for are estimated at Rs 944.33 Lakhs (previous
 year Rs 29,366.91 Lakhs).
 
 17.  Excise Duty included in Rates and Taxes and debited to profit and
 Loss Account represents the aggregate of Excise Duty borne by the
 Company and the difference between Excise Duty on opening and closing
 stock of fnished/saleable goods.
 
 18. Segment reporting as per AS 17 issued by the Institute of Chartered
 Accountants of India.  
 
 A.  Primary disclosures:
 
 The company has identifed the reportable primary business segments
 considering:
 
 i) the nature of products and services;
 
 ii) the differing risks and returns;
 
 iii) the organisation structure; and
 
 iv) the internal financial reporting system.
 
 19. Previous year fgures have been re-grouped and/or reclassifed
 wherever necessary to make them comparable with those of current year.