a.  Method of Accounting
 
 The Accounts have been prepared to comply in all material aspects with
 applicable principles in India and the Accounting Standards issued by
 the Institute of Chartered Accountants of India and the relevant
 provisions of the Companies Act,1956
 
 b.  Inventories
 
 The Raw Materials, Stores and Spare Parts are valued at cost, which is
 arrived on FIFO basis. Work in progress, Semi Finished Goods and
 Finished Goods are valued at cost or at the net realisable value,
 whichever is lower. Cost of Inventories comprises of all costs of
 purchase (other than refundable duties and taxes) costs of conversion &
 other costs incurred in bringing the inventories to their present
 condition and location. Costs of Raw Materials, Packing Materials and
 Stores and Spares are determined by the average cost method. Cost of
 Work in Progress and Finished Goods Inventories are determined by the
 absorption costing method. Obsolete, defective, slow moving and
 unserviceable inventories are duly provided for.
 
 c.  Depreciation
 
 Depreciation is provided from the date the assets have been installed
 and put to use on written down value method at the rates and in the
 manner prescribed by Shedule XIV of the Companies Act, 1956. Lease hold
 land is being amortised over the period of lease. Depreciation on
 additions to assets or on sale - discardment of assets, is calculated
 on pro-rata basis from the month of such addition or upto the month of
 such sale/discardment, as the case may be.
 
 d.  Research and Development Expenditure
 
 Revenue Expenditure is charged to Profit & Loss Account and Capital
 Expenditure is added to the cost of Fixed Assets in the year when it is
 incurred.
 
 e.  Revenue Recognition/Income
 
 Revenue Income is recognised on accrual basis except where mentioned
 otherwise, in particular:
 
 i. Sales Revenue is recongnised when it is earned and no significant
 uncertainty exist as to its realisation or collection.  Sales are net
 of sales return and trade discounts. Rebate, claims and discounts are
 accounted for as and when determined.  Deductions made have been
 reduced from the Sales where found necessary. Export sales are
 accounted on the basis of acceptance by the customers and on the basis
 of export bill of lading. Export sales are accounted as per the
 prevailing exchange rate on the date of transaction. Revenue from
 services is recongnised on rendering of services.
 
 ii. Gross Sales include Excise Duty collection of Rs. 13946.47 lacs,
 Service Tax, Sales Tax and Freight charged in invoices.
 
 iii. The pipe coating income is recognised after inspection, approval
 by customers and after despatch.
 
 iv. Interest income is taken on accrual basis. Interest Income of Rs.
 759.08 Lacs netted off against interest payment during the year.
 (Previous year interest income of Rs. 477.88 lacs netted off against
 interest payment) wherever applicable.
 
 v.  Dividend income on investments are accounted for when the right to
 receive the payment is established.
 
 vi. Expenditure are accounted for on accrual basis and provisions are
 made for all known liabilities.
 
 f.  Treatment of expenditure during construction period
 
 Expenditure in the case of new units and substantial expansion of
 existing units during the construction period is included in the work
 in progress and the same is allotted to the respective Fixed Assets on
 the completion of the construction.
 
 g.  Fixed Assets
 
 i. Fixed Assets are stated at cost of acquisition and installation. The
 cost includes Freight, Taxes and related incidental expenses less
 Cenvat Credit.
 
 ii. The Company has erected factory building sheds and installed plant
 and machinery on lease hold land. The Company had incurred some
 developmental expenditure which was earlier in CWIP on factory
 building, plant and on lease hold land which increase the future
 benefits from the existing assets beyond its previously assessed
 standard of performance i.e. increase in capacity, modernisation &
 upgradation.
 
 h.  Foreign Currency Transactions
 
 i. a. The company is exposed to currency Fluctuations on Foreign
 Currency transactions. With a view to minimize the volatility arising
 from fluctuations in the currency rates, the company follows
 established risk management policies including the use of exchange
 forward contracts and other derivative instruments.
 
 b.  Foreign currency transactions are recorded at the exchange rate
 prevailing on the date of such transactions. Monetary Assets and
 Liabilities in Foreign Currency as at the Balance Sheet. Gains and
 losses arising on account of difference in foreign exchange rates on
 settlement / translation of monetary Assets and Liabilities are
 recognized in the Profit and Loss Account.
 
 c.  In respect of forward contracts assigned to the Foreign Currency
 Assets as at the Balance Sheet date, the proportionate premium /
 discount for the period up to the date of Balance Sheet is recognized
 in the Profit and Loss Account.  The exchange difference measured by
 the change rate between the inception of forward contract and date of
 Balance Sheet is applied on foreign Currency amount of the forward
 contract and is recognized in the Profit and Loss Account.
 
 ii. All loans and deferred credits repayable in foreign currency and
 outstanding at the close of the year are expressed in Indian currency
 at the appropriate rate of exchange prevailing on the date of Balance
 Sheet.
 
 iii. Balances in the form of Current Assets and Current Liabilities in
 Foreign Currency, outstanding at the close of the year, are converted
 in Indian Currency at the appropriate rates of exchange prevailing on
 the date of Balance Sheet. Resultant gain or loss is accounted during
 the year.
 
 i.  Derivative Instruments
 
 I.  The company has entered into the following derivative instruments:
 
 a.  Forward Exchange contracts (being a derivative instrument), which
 are not intended for trading or speculative purposes, but for hedge
 purposes, to establish the amount of reporting currency required or
 available at the settlement date of certain payables and receivables.
 Forward Exchange Contracts entered into by the Company as on March 31,
 2011 [8.861 USD (mn)]
 
 b.  Interest Rate Swaps to hedge against fluctuations in interest rate
 changes : No. of Contracts : NIL
 
 Notional Principal : NIL
 
 c.  Currency Swaps (other than forward exchange contracts stated above)
 to hedge against fluctuations in changes in exchange rate.
 
 No. of Contracts : NIL
 
 Notional Principal : NIL
 
 III. Derivative Instruments (causing an unhedged Foreign Currency
 exposure): NIL
 
 j.  Investments
 
 i.  Investments are of long term nature and are stated at cost of
 acquisition, less any diminishing in the value other then temporary.
 
 ii. The investments in companies under the same management and its
 subsidiaries whose shares are unquoted are valued at cost. The
 Management is of the opinion that there is no diminishing value on
 these Investments.
 
 k.  Employee Benefits
 
 A.  Short Term Employee Benefits
 
 All employee benefits payable wholly within twelve months of rendering
 the service are classified as short term employee benefits and they are
 recognised in the period in which the employee renders the related
 service. The Company recognises the undiscounted amount of short term
 employee benefits expected to be paid in exchange for services rendered
 as a liability (accrued expense) after deducting any amount already
 paid.
 
 B.  Post-employment benefits
 
 (a) Defined contribution plans
 
 Defined contribution plans are Provident Fund Scheme, Employee State
 Insurance Scheme and Government Administered Pension Fund Scheme for
 all employees and Superannuation Scheme for eligible employees. The
 Company''s contribution to defined contribution plans are recognised in
 the Profit and Loss Account in the financial year to which they relate.
 
 The Company makes specified monthly contributions towards Employee
 Provident Fund to the respective Regional Provident Fund Authority.
 
 b) Defined Benefit Gratuity Plan
 
 The Company operates a defined benefit Gratuity Plan for employees. The
 Company contributes the same to LIC towards meeting the Gratuity
 obligations.
 
 C.  Other long term employee benefits
 
 Entitlements to annual leave and sick leave are recognised when they
 accrue to employees. Sick leave can only be availed while annual leave
 can either be availed or encashed subject to a restriction on the
 maximum number of accumulation of leave. The Company determines the
 liability for such accumulated leaves using the Projected Accrued
 Benefit method with actuarial valuations being carried out at each
 Balance Sheet date.
 
 iii) For the year ended March 31, 2011, provision for Employees
 Benefits amounting to Rs. 53.56 Lacs towards Leave Encashment has been
 made to SBI Life Insurance Co. Ltd., Mumbai. The actual liability as
 per actuarial valuation amounts to Rs. 135.60 Lacs.  
 
 l.  Borrowing Cost
 
 Interest & other Borrowing Costs on specific borrowings relatable to
 the qualifying Assets are capitalised. Other Interests and Borrowing
 Costs are charged to Revenue.
 
 m.  Cash Flow Statement
 
 The Cash Flow statement is prepared by the indirect method set out in
 Accounting Standard - 3 on Cash Flow Statement and presents Cash Flows
 by operating, investing and financing activities of the Company. Cash
 and cash equivalents presented in the Cash Flow Statement consists of
 Cash in Hand and demand deposits with banks as on the Balance Sheet
 date.
 
 n.  Provisions
 
 A provision is recognised when there is a present obligation as a
 result of past event, it is probable that an outflow of resources will
 be required to settle the obligations and in respect of which reliable
 estimate can be made. Provision is not discounted to its present value
 and is determined based on the best estimate required to settle the
 obligation at the year end date. These are reviewed at each year end
 date and adjusted to reflect the best current estimate.
 
 o.  Segment Reporting
 
 The Group is engaged in the business of production of steel products
 which in the opinion of the management is considered the only business
 segment in the context of Accounting Standard - 17 on Segmental
 Reporting. Also, the Group does not consider any significant difference
 as regards the risks and returns of the product with reference to
 export and domestic sales.  Therefore, Segment information as required
 by Accounting Standard - 17 is not applicable.
 
 p.  Related Party and Key Management Personnel Disclosure 
 
 A.  Name of the Party and the Relationship
 
 a) Subsidiary Companies
 
 i.  PSL Corrosion Control Services Ltd.  : 100% Subsidiary Company
 
 ii.  Pipeline Systems Ltd., Mauritius : 100% Subsidiary Company
 
 iii.  PSL USA INC., Delaware, USA : 100% Subsidiary Company
 
 iv.  PSL Gas Distribution Pvt.Ltd.  : 100% Subsidiary Company
 
 v.  PSL Infrastructure & Ports Pvt.Ltd.  : 100% Subsidiary Company
 
 vi.  PSL FZE, Sharjah.  : 100% Subsidiary Company of Pipeline Systems
 Ltd., Mauritius
 
 vii.  PSL North America LLC.  : JV Company of PSL USA INC, Delaware,
 USA, (78% holding)
 
 b) Companies in which control exists directly / indirectly
 
 i.  BHI Ltd.
 
 ii.  Broken Hills International Ltd.
 
 iii.  Eurocoustic Products Ltd.
 
 iv.  Punj International Pvt. Ltd.
 
 v.  Punj Investments Ltd.
 
 vi.  Punj Corporation Private Limited
 
 vii.  Rosoboronterra India Pvt.Ltd.
 
 (Subsidiary of Punj Corporation Pvt.Ltd.)
 
 c) Key Management Personnel
 
 Ashok Punj :Managing Director
 
 M. M. Mathur :Director
 
 R. K. Bahri :Director
 
 G. S. Sauhta :Director
 
 D. N. Sehgal :Director
 
 S.P. Bhatia :Director
 
 C. K. Goel :Director
 
 G. Gehani :Director & Company Secretary
 
 q.  Lease
 
 Operating lease payments are recognized as expenditure in the Profit
 and Loss Account on a straight-line basis, which is representative of
 the time pattern of benefits received from the use of assets taken on
 lease. Lease rentals in respect of operating lease are recognized as
 income over the lease period.
 
 r.  Earning Per Share
 
 The Company reports basic and diluted Earnings Per Share in accordance
 with Accounting Standard 20 on Earning Per Share. Basic Earnings per
 share is computed by dividing the net profit or loss for the year by
 the weighted average number of equity shares outstanding during the
 year. Diluted Earnings Per Share is computed by dividing the net profit
 or loss for the year by the weighted average number of equity shares
 outstanding during the year as adjusted for the effects of all dilutive
 potential equity shares, except where the results are anti-dilutive.
 
 s.  Management Estimates
 
 The preparation of Financial Statements in conformity with generally
 accepted accounting principles requires estimates and assumptions to be
 made that affect the reported amounts of Assets and Liabilities and
 disclosure of Contingent Liabilities on the date of the Financial
 Statements and the reported amounts of revenues and expenses during the
 reporting period. Actual results could differ from these estimates and
 the differences between actual results and estimates are recognised in
 the periods in which the results are known / materialize.
 
 t.  Accounting for Taxes on Income
 
 Income Tax are accounted for in accordance with Accounting Standard 22
 on Accounting for taxes on income. Income tax comprise both current and
 deferred tax.
 
 Current tax is measured at the amount expected to be paid to /
 recovered from the revenue authorities, using applicable Tax Rates and
 laws. The company offsets advance payments and provisions for current
 tax and disclose the net amount it intends to settle and where it has a
 legally enforceable right to set off the recognised amount.
 
 The tax effect of the timing differences that result between taxable
 income and accounting income and are capable of reversal in one or more
 subsequent periods are recorded as a Deferred Tax Assets or a Deferred
 Tax Liability. Deferred Tax Assets and Liabilities are recognized for
 future tax consequences attributable to timing differences. They are
 measured using the substantively enacted tax rates and tax regulations.
 
 The carrying amount of Deferred Tax Assets at each Balance Sheet date
 is reduced to the extent that it is no longer reasonable certain that
 sufficient future taxable income will be available against which the
 Deferred Tax Assets can be realized.
 
 u.  Sundry Debtors/Loans & Advances
 
 Sundry Debtors, Creditors and other advances are subject to
 confirmation. The effect of the same, if any, which is not likely to be
 material, will be adjusted at the time of confirmation. Sundry
 Creditors for purchases includes Rs. 89707.07 Lacs being buyer''s credit
 availed by the Company for the purchase of Raw Materials/ Capital
 Goods.
 
 v.  Impairment of Assets:
 
 In the opinion of the company''s Management, there is no impairment to
 the assets to which Accounting Standard 28 Impairment of Assets
 applied requiring any revenue recognition.
 
 w.  Contingent liabilities
 
 Contingent liabilities as defined in Accounting Standard 29 are
 disclosed in the notes to accounts. Provisions is made if it became
 probable that an outflow of future economic benefits will be required
 for an item previously dealt with it as a contingent liability.