1. Fixed Assets
 
 i) Fixed Assets are stated at cost less depreciation at prescribed
 rates, Cost comprise the purchase price and any attributable and proportionable cost of those expenses which
are incurred for bringing
 the asset to working condition for its intended use.
 
 2. Capital Work-in-Progress
 
 The Capital work-in-progress represents expenditure incurred on
 foundation of Finishing Stands pertaining to Rolling Mills Division,
 Jamshedpur and is shown at cost.
 
 3. Depreciation
 
 i) Depreciation has been provided on Straight Line Method at the rates
 and in the manner specified in Schedule XIV of the Companies Act, 1956.
 
 ii) Depreciation on addition to Fixed Assets during the period is
 calculated on pro-rata basis from the date of the addition.
 
 iii) No amortisation is provided in accounts in respect of Leasehold
 Land.
 
 4. Investments
 
 Investments are carried at cost.
 
 5. Inventories
 
 Inventories of Stores and spares and Raw Materials are valued at cost.
 Inventory of Finished Goods are valued at estimated realisable value.
 
 6. Recognition of Income & Expenditure
 
 Items of Income & Expenditure are recognised on accrual basis.
 
 7. Grants/Subsidies
 
 Grants/Subsidies are generally accounted for on the basis of sanction
 letter issued by the related authorities.
 
 8. Gratuity
 
 As in previous years, gratuity has been charged on payment basis, and
 accordingly, no provision has been made in these accounts for the
 year-end accrued liability (amount unascertained).
 
 9. Deferred Revenue Expenses
 
 Financial Expenses for acquiring the assets on lease rent/hire purchase
 are written off over the period during which the lease rent/hire
 purchase price are paid.