Notes:
 
 1 The Cash Flow Statement has been prepared under ''Indirect Method'' in
 accordance with the requirement of Accounting Standard-3 Cash Flow
 Statement issued under Companies (Accounting Standards) Rules, 2006
 
 2 Significant Accounting Policies and Notes to accounts (Note 31) forms
 an integral part of Cash Flow Statement.
 
 3 Previous year''s figures have been regrouped wherever necessary to
 conform to this year''s classification 
 
 (a) Terms of Securities convertible into Equity Shares:
 
 38,00,000 Share Warrants allotted on 15th March 2011 at an issue price
 of A60/- each, comprising of A10/- each towards face value and A50/-
 each towards premium are convertible at the option of the holder
 thereof in one or more tranches to 38,00,000 Equity Shares on or before
 expiry of 18 months from the date of allotment. The last date for
 exercise of option by the holder is 15th September 2012.
 
 (b) Terms / rights attached to Equity Shares
 
 The Company has only one class of Equity Shares having par value of
 A10/- per Share. Each holder of Equity Shares is entitled to one vote
 per Share. The Company declares and pays dividend in Indian Rupees.
 
 (c) During the year ended 31st March 2012, the amount of per Share
 dividend recognised as distribution to Equity Shareholders was Nil.
 (Previous year A1.80)
 
 (d) In the event of liquidation of the Company, the holders of the
 Equity Shares will be entitled to receive remaining assets of the
 Company after distribution of all preferential amounts. The
 distribution will be in proportion to the number of Equity Shares held
 by the shareholders.
 
 During the year on exercise of option of conversion by the allottee,
 18,30,000 (previous year 4,00,000) Share Warrants to 18,30,000
 (previous year 4,00,000) Equity Shares were allotted and accordingly a
 sum of Rs 1,83,00,000/- (previous year Rs 40,00,000/-) and Rs
 9,15,00,000/- (previous year Rs 2,00,00,000/-) was adjusted to Paid-up
 Capital (at Rs 10/- per share) and Share Premium account (at Rs 50/-
 per share) respectively.
 
 i.  Term Loan borrowings from banks are secured by first mortgage and
 charge on all the immovable and movable assets, present and future,
 subject to the charges created in favour of the Company''s Bankers on
 current assets for securing borrowings for working capital and
 guaranteed by two Directors of the Company. The Principal amount on
 these term loans are generally repayable in 32 equated quarterly
 installments after moratorium period of one year with interest payable
 on monthly rests.  The interest rates vary from 13.5% to 15.5% p.a. and
 interest amount payable at monthly rests.
 
 The period of maturity with reference to four term Loan Borrowings from
 Balance Sheet date are: (a) Loan 1 comprises nine quarterly
 installments comprising eight quarterly installments of Rs 37188000/-
 each and one installment of Rs 37172000/- (Rs ) Loan 2 comprises twelve
 quarterly installments of Rs 27375000/- each; eight quarterly
 installments of Rs 32625000/- each and six quarterly installments of Rs
 7875000/- each and (c) Loan 3 comprises twenty four quarterly
 installments of Rs 12550000/- each and one installment of Rs
 10950000/-.  Loan 4 is yet to be drawn fully and hence period of
 maturities is not determined.
 
 ii.  Borrowings from other parties are on hypothecation of assets and
 guaranteed by the Managing Director of the Company. These loans are
 mostly repayable in 36 equated monthly installments including interest.
 The interest rates vary from 10.5% to 12.5% p.a. The future maturities
 from the Balance Sheet date comprises (a) loan 1 comprises ten
 installments of A361111/- each and Loan two comprises fourteen
 installments of Rs 132004/- each.
 
 iii. The Sales Tax Deferment is an interest free loan granted by the
 Government of Andhra Pradesh on sales tax collections and repayable in
 ten installments, each installment comprising one year collections. The
 period of maturies from the Balance Sheet date of this borrowal
 comprises two installments of Rs 32650739/- and Rs 38487138/-.
 
 iv.  The above borrowings and interest due thereon have been paid upto
 date and there are no continuing defaults.
 
 i.  Working capital loans from banks and Buyer''s credit are secured by
 hypothecation of stocks and book debts and further secured by second
 charge on fixed assets of the Company and guaranteed by two Directors
 of the Company. The rate of interest on working capital loans varies
 from 14.50% to 15.25% p.a. The rate of interest in respect of Buyer''s
 credit varies from LIBOR  110 bps to LIBOR   250 bps p.a.
 
 ii.  The rate of interest in respect of loans from related parties is
 12% p.a.
 
 iii. The above borrowings and interest due there on have been paid upto
 date and there are no defaults.
 
 1 CORPORATE INFORMATION:
 
 Sathavahana Ispat Limited (the Company) is a listed company in India
 and is engaged in the manufacture of Pig iron, Metallurgical Coke with
 Co-generation of Power. The Pig Iron plant is in Anantapur District of
 Andhra Pradesh and the Metallurgical Coke with Co-generation Power
 facility is in Bellary District, Karnataka. The Company''s head office
 is at Hyderabad, India. A major portion of Metallurgical Coke is
 captively used for manufacture of Pig Iron.  The Company''s turnover is
 mainly from domestic markets. The Equity Shares of the Company are
 listed on The Bombay Stock Exchange Limited and The National Stock
 Exchange of India Limited.
 
 2 PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS:
 
 During the year ended 31st March 2012, the Revised Schedule VI notified
 under the Companies Act, 1956 has become applicable to the Company for
 preparation and presentation of its financial statements. The adoption
 of Revised Schedule VI does not impact recognition and measurement
 principles followed for preparation of financial statements. However,
 it has significant impact on presentation and disclosures made in the
 financial statements.  The Company has also reclassified the previous
 year figures in accordance with the requirements applicable in the
 current year.
 
 3 In the opinion of the Board, assets other than Fixed Assets and
 non-current investments have a value on realisation in the ordinary
 course of business atleast equal to the amount at which they are stated
 and provision for all known liabilities have been made.
 
 4 EXCISE DUTY ON OPENING AND CLOSING STOCKS:
 
 Excise Duty on sales for the year has been disclosed as reduction from
 turnover. Excise Duty relating to the difference between closing stock
 and opening stock has been included in Note 27 Changes in inventories
 of finished goods, work-in-progress and scrap.
 
 (a) The present value of obligation in respect of provision for payment
 leave encashment is determined based on actuarial valuation using the
 projected unit credit method, which recognises each period of service
 as giving rise to additional unit of employee benefit entitlement and
 measures each unit separately to build up the final obligation
 recognised and charged off to Statement of Profit and Loss.
 
 (b) The estimates of rate of escalation in salary considered in
 actuarial valuation is determined after taking into account inflation,
 seniority, promotion and other relevant factors including supply and
 demand in the employment market. The above information is certified by
 the Actuary.
 
 5 DISCLOSURES UNDER ACCOUNTING STANDARD 17 ON SEGMENT REPORTING:
 
 The Company''s business consists of two reportable segments viz., Pig
 Iron and Metallurgical Coke with Co-generation Power as per Accounting
 Standard 17 Segment Reporting issued under the Companies (Accounting
 Standard) Rules 2006.  Segment information has been prepared in
 conformity with the accounting policies adopted for preparing and
 presenting the financial statements of the Company. Inter/Intra segment
 transfers are accounted at selling price to the transfering segment.
 Inter segment transfers are eliminated on consolidation. The following
 tables present the revenue, profit or loss, assets and liabilities
 information relating to the business/geographical segment for the year
 ended 31st March 2012.
 
 6 DISCLOSURES UNDER ACCOUNTING STANDARD 19 ON LEASES:
 
 Information on leases as per Accounting Standard 19 Leases issued
 under the Companies (Accounting Standard) Rules 2006: Operating lease
 expenses:
 
 
 The Company has various operating leases for various premises that are
 renewable on a periodic basis and cancellable at its option.  Rental
 expenses for operating leases recognised in the Statement of Profit and
 Loss for the year is Rs 4503210/- (previous year Rs 3970822/-)