I.  a) METHOD OF ACCOUNTING
 
 The Financial Statements are prepared as per historical cost convention
 and in accordance with the Generally Accepted Accounting Principles in
 India, the provisions of the Companies Act 1956 , and the applicable
 Accounting Standards notified under the Companies (Accounting
 Standards) Rules, 2006. All Income and Expenditures having material
 bearing on the Financial Statements are recognized on accrual basis.
 
 b) USE OF ESTIMATES
 
 The presentation of the Financial Statements in conformity with the
 Generally Accepted Accounting policies requires, the management to make
 estimates and assumptions that affect the reported amount of Assets and
 Liabilities, Revenues and Expenses and disclosure of contingent
 liabilities.  Such estimation and assumptions are based on management''s
 evaluation of relevant facts and circumstances as on date of Financial
 Statements. Difference between the actual results and estimates are
 recognized in the period in which the results are known / materialized.
 
 II.  REVENUE RECOGNITION
 
 The Company recognizes Sales at the point of transfer of significant
 risks and rewards of ownership to the customers.  Sales are inclusive
 of Excise Duty and Sales Tax and net of returns.
 
 Revenue in respect of excise duty refund is recognized on accrual
 basis.
 
 Sales tax / Value added tax paid is charged to Profit and Loss
 Accounts. Dividend income is recognized when right to receive is
 established. Interest income is recognized on time proportion basis
 taking into account, the amount outstanding and rate applicable.
 
 III.  EXCISE DUTY
 
 Excise Duty recovered are included in sales. Excise Duty in respect of
 increase / decrease in Finished Goods are shown separately as an item
 of Manufacturing & Other Expenses and included in Valuation of Finished
 goods.
 
 IV.  FIXED ASSETS
 
 (a) Fixed assets are stated at cost (net of Cenvat), less accumulated
 depreciation [other than freehold land where no depreciation is
 charged].
 
 (b) Capital Work in progress including capital advances are stated at
 cost.
 
 (c) Cost of Trial run Production incurred during the initial period of
 production has been capitalized amongst the various heads of fixed
 assets.
 
 (d) Pre-operative expenditure incurred on projects has been / will be
 capitalized amongst the various heads of fixed assets on the
 commencement of the projects.
 
 (e) All costs including financing costs, till commencement of
 commercial production are capitalized
 
 (f) Intangible assets are stated at cost of acquisition less
 accumulated amortization.
 
 V.  VALUATION OF INVENTORIES
 
 Raw Materials, Trading Goods,    -  At Lower of Cost or Net Realizable
 Stores & Spares & Semi Finished     Value after considering credit 
 Goods                               of Vat and Cenvat.
 
 Finished goods & By-Product      -  At Lower of the Cost or Net real
                                     -izable value. finished (Includi
                                     -ng excise duty in respect of 
                                     goods)
 
 Cost of Finished Goods is determined using the absorption costing
 principle. Cost includes cost of material consumed, labour and
 systematic allocation of variable and fixed production overheads,
 including Excise Duty at applicable rates.
 
 VI.  CASH FLOW STATEMENT
 
 The Cash Flow Statement is prepared by the indirect method set out in
 Accounting Standard 3 on Cash Flow Statements and presents the cash
 flows by operating, investing and financing activities of the Company.
 
 Cash and Cash equivalents presented in the Cash Flow Statement consist
 of cash on hand and deposits with banks.
 
 VII.  INVESTMENTS
 
 Investments are classified as Long Term & Current Investments. Long
 Term Investments are valued at cost less provision for diminution other
 than temporary, in value, if any. Current Investments are valued at
 cost or fair value whichever is lower.
 
 VIII.  EMPLOYEE BENEFITS
 
 (a) Short Term
 
 Short Term employee benefits are recognized as an expense at the
 undiscounted amount expected to be paid over the period of services
 rendered by the employees to the company.
 
 (b) Long Term
 
 The Company has both defined contribution and defined benefit plans.
 
 (c) Defined Contribution Plans
 
 These are plans in which the Company pays pre-defined amounts to
 separate funds and does not have any legal or informal obligation to
 pay additional sums. These comprise of contributions to Employees
 Provident Fund. The Company''s payments to the defined contribution
 plans are reported as expenses during the period in which the employee
 performs the services that the payment covers.
 
 (d) Defined Benefit Plans
 
 Expenses for defined benefit gratuity payment plans are calculated as
 at the balance sheet date by independent actuaries in the manner that
 distributes expenses over the employees working life. These commitments
 are valued at the present value of the expected future payments, with
 consideration for calculated future salary increases, using a
 discounted rate corresponding to the interest rate estimated by the
 actuary having regard to the interest rate on Government Bonds with a
 remaining term i.e. almost equivalent to the average balance working
 period of employees.
 
 (e) Other Employee Benefit
 
 Compensated absences which accrue to employees and which can be carried
 to future periods but are expected to be encashed or availed in twelve
 months immediately following the year end are reported as expenses
 during the year in which the employees perform the services that the
 benefit covers and the liabilities are reported at the undiscounted
 amount of the benefits after deducting amounts already paid.
 
 IX.  TAXATION
 
 Income tax expenses comprise current tax and Deferred Tax charge or
 credit. Provision for current tax is made on the basis of the
 assessable income at the tax rate applicable to the relevant assessment
 year. The Deferred Tax Assets and Deferred Tax Liability is calculated
 by applying tax rate and tax laws that have been enacted or
 substantively enacted by the Balance Sheet date.  Deferred Tax Assets
 arising mainly on account of brought forward losses and unabsorbed
 depreciation under tax laws, are recognized, only if there is a virtual
 certainty of its realization, supported by convincing evidence.
 Deferred Tax Assets on account of other timing differences are
 recognized only to the extent there is a reasonable certainty of its
 realization. At each Balance Sheet date, the carrying amounts of
 Deferred Tax Assets are reviewed to reassure realization.
 
 X.  METHOD OF DEPRECIATION
 
 A.  Depreciation on fixed assets [other than land where no depreciation
 is provided] has been provided on straight-line method in accordance
 with the provisions of section 205(2)(b) of the Companies Act, 1956, at
 the rates specified in Schedule XIV to the Companies Act, 1956.
 
 B.  Depreciation in respect of plant and machineries has been provided
 on the basis of triple shift working (except for Plant and Machineries
 of Sponge Iron & Ferro Alloys Project on which depreciation has been
 provided on continuous process plant working and depreciation on
 Rolling Mill Plant has been provided on single shift working on the
 basis of certificate received from management). Depreciation in respect
 of fixed assets acquired / put to use during the years is charged on
 pro-rata basis with reference to the date of installation of fixed
 assets.
 
 C.  No Depreciation has been provided in respect of Capital Work in
 Progress.
 
 D.  Intangible assets (Software) are amortized for a period of 5 years.
 
 XI.  FOREIGN CURRENCY TRANSACTIONS
 
 Transactions in the foreign currency, which are covered by forward
 contracts, are accounted for at the contracted rate; the difference
 between the forward rate and the exchange rate at the date of
 transaction is recognized in the Profit and Loss Accounts over the life
 of the contract. Transactions in the foreign currency other than those
 covered by forward contract rates are recorded at rate of exchange in
 force at the time of occurrence of transactions. Gain or Loss due to
 fluctuation in exchange rates is dealt with through Profit and Loss
 Account. Monetary Assets and Liabilities related to foreign currency
 transactions remaining unsettled at the end of the year are translated
 at the year-end rate. The difference in transactions of monetary
 liabilities and related gains or losses on foreign exchange
 transactions is recognized in the Profit and Loss Account.
 
 XII.  BORROWING COST
 
 Borrowing costs that are directly attributable to the acquisition,
 construction or production of qualifying asset are capitalized as part
 of cost of such asset. Other borrowing costs are recognized as an
 expense in the period in which they are incurred
 
 XIII.  EARNING PER SHARE
 
 Basic earning per share is calculated by dividing the net profit after
 tax for the year attributable to Equity Shareholders of the Company by
 the weighted average number of Equity Shares in issue during the year.
 Diluted earning per Share is calculated by dividing net profit
 attributable to equity Shareholders (after adjustment for diluted
 earnings) by average number of weighted equity shares outstanding
 during the year.
 
 XIV.  IMPAIRMENT OF ASSETS
 
 The carrying value of assets of the Company''s cash generating units are
 reviewed for impairment annually or more often if there is an
 indication of decline in value based on internal/external factors.  If
 any indication of such impairment exists, the recoverable amounts of
 those assets are estimated and impairment loss is recognized, if the
 carrying amount of those assets exceeds their recoverable amount. The
 recoverable amount is the greater of the net selling price and their
 value in use. Value in use is arrived at by discounting the estimated
 future cash flows to their present value based on appropriate discount
 factor.
 
 XV.  PROVISIONS, CONTINGENT LIABILITY AND CONTINGENT ASSETS
 
 (a) Provision involving substantial degree of estimation in measurement
 is recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 
 (b) Contingent liabilities are not recognized but are disclosed in the
 notes.
 
 (c) Contingent Assets are neither recognized nor disclosed in the
 financial statements.
 
 XVI.  MISCELLANEOUS EXPENDITURE
 
 Preliminary & Public Issue expenses are amortized to Profit and Loss
 Account over a period of 5 years in equal installments.