i) Basis of accounting and preparation of financial statements
 
 The financial statements of the Company have been prepared on accrual
 basis under the historical cost convention in accordance with the
 Generally Accepted Accounting Principles in India (Indian GAAP) to
 comply with the Accounting Standards notified under Section 211(3C) of
 the Companies Act, 1956 and the relevant provisions thereof.
 
 ii) use of estimates
 
 The preparation of the financial statements in conformity with Indian
 GAAP requires the management to make estimates and assumptions that
 affect the reported amount of assets and liabilities (including
 contingent liabilities] on the date of the financial statements and the
 reported amount of revenues and expenses during the reporting period.
 Difference between the actual results and the estimates are recognised
 in the period in which the results are known /materialised.
 
 iii) Inventories
 
 Inventories are valued at lower of cost (on weighted average basis) and
 net realisable value after providing for obsolescence and other losses,
 where considered necessary. Cost includes all charges in bringing the
 goods to the point of sale including octroi and other levies, transit
 insurance and receiving charges. Finished goods and work in progress
 include apportionment of fixed and variable overheads.
 
 iv) Cash flow statement
 
 Cash flows are reported using the indirect method, whereby profit /
 (loss) before extraordinary items and tax is adjusted for the effects
 of transactions of non-cash nature and any deferrals or accruals of
 past or future cash receipts or payments. The cash flows from
 operating, investing and financing activities of the Company are
 segregated based on the available information.
 
 v) Depreciation and amortisation
 
 Depreciation has been provided for on the straight line method (SLM) as
 per the rates prescribed in Schedule XIV to the Companies Act, 1956,
 except in respect of the following assets:
 
 - Vehicles, furniture and computers are depreciated at an annual rate
 of 20%, 10% and 30% respectively to bring it in line with the useful
 life of the assets.
 
 - Railway wagons procured under Wagon Investment Scheme (WIS) are
 depreciated at the rate of 10% per annum on SLM basis.
 
 - Mining leases in proportion to actual quantity of ore extracted there
 from.
 
 - Amounts paid for renewal of forest clearances of owned mining leases
 over the operating period of lease.
 
 - Individual items of assets costing upto Rs 5,000 are fully depreciated
 in the year of acquisition.
 
 Depreciation is charged from the month of the date of purchase in the
 case of acquisitions made during the year. In respect of assets sold,
 depreciation is provided up to the month prior to the date of sale.
 
 Intangible assets are amortised over their estimated useful life.
 Expenses on implementation of Enterprise Resource Planning - SAP are
 amortised over thirty six months.
 
 vi) Revenue recognition
 
 Sale of goods
 
 Revenue is recognised when significant risks and rewards of ownership
 of the goods sold are transferred to the customer and the commodity has
 been delivered to the shipping agent/customer. Revenue represents the
 invoice value of goods and services provided to third parties net of
 discounts, sales tax/value added tax and adjustments arising on
 analysis variances.
 
 Income from services
 
 Revenue in respect of contracts for services is recognised on
 completion of services.
 
 Other Income
 
 Interest income is recognised on a time proportion basis by reference
 to the principal outstanding and at the interest rate applicable.
 
 Dividend income is recognised when the right to receive dividend is
 established.
 
 vii) Tangible fixed assets
 
 Fixed assets, except for the leasehold mine at Karnataka, are carried
 at historical cost (net of available Central and State VAT credit) less
 accumulated depreciation / amortisation and impairment losses, if any.
 Costs include expenses incidental to the installation of assets and
 attributable borrowing and financing costs incurred upto the date the
 asset is ready for its intended use.
 
 The iron ore reserves of the leased mine located in Karnataka were
 valued and shown as fixed assets by erstwhile A. Narrain Mines Ltd.
 (ANML). The Company continues to show the value of the said mining
 lease as fixed assets after merger of the said ANML. The Company''s
 other mining leases having ore reserves, however, are not valued.
 Amounts paid to government authorities towards renewal of forest
 clearances in respect of owned mining leases are capitalized as a part
 of mining leases.
 
 Machinery Spares
 
 Machinery spares which can be used only in connection with an item of
 fixed asset and whose use is expected to be irregular are capitalised
 and depreciated over the useful life of the principal item of the
 relevant assets.
 
 Capital work in progress
 
 Projects under which assets are not ready for their intended use and
 other capital work in progress are carried at cost, comprising direct
 cost, related incidental expenses and attributable interest.
 
 viii) intangible assets
 
 Intangible assets are carried at cost less accumulated amortisation and
 impairment losses, if any. The cost of an intangible asset comprises
 its purchase price and any directly attributable expenditure on making
 the asset ready for its intended use and net of any trade discounts and
 rebates.
 
 ix) Foreign currency transactions and translations
 
 Transactions in foreign currencies are recorded at exchange rates
 prevailing on the date of the transaction. Year end balances of
 monetary assets and liabilities are translated at the year end rates.
 Exchange difference arising on restatement or settlement is charged to
 the Statement of Profit and Loss.
 
 x) Foreign currency forward contracts
 
 The Company enters into forward derivative financial instruments to
 hedge its exposure to foreign currency. The Company does not hold
 derivative financial instruments for speculative purposes. Derivative
 financial instruments are initially recorded at their fair value on the
 date of the derivative transaction and are re-measured at their fair
 value at subsequent balance sheet dates.
 
 Changes in the fair value of derivatives that are designated and
 qualify as fair value hedges are recorded in the Statement of Profit
 and Loss.
 
 Changes in the fair value of derivatives that are designated and
 qualify as cash flow hedges are recorded in Reserves and Surplus.
 Amount deferred to Reserves and Surplus are recycled in the Statement
 of Profit and Loss in the period when the hedged item is recognised in
 the Statement of Profit and Loss.
 
 Derivative financial instruments that do not qualify for hedge
 accounting are marked to market at the balance sheet date and gains or
 losses are recognised in the Statement of Profit and Loss immediately.
 
 Hedge accounting is discontinued when the hedging instrument expires or
 is sold, terminated or exercised, or no longer qualifies for hedge
 accounting. Any cumulative gain or loss on the hedging instrument
 recognised in Reserves and Surplus is kept in reserves and surplus
 until the forecast transaction occurs. If a hedged transaction is no
 longer expected to occur, the net cumulative gain or loss recognised in
 Reserves and Surplus is transferred to the Statement of Profit and Loss
 for the year.
 
 xi) Government grants, subsidies and export incentives
 
 Government grants and subsidies are recognised when there is reasonable
 assurance that the Company will comply with the conditions attached to
 them and the grants / subsidy will be received.
 
 Export benefits are accounted for in the year of exports based on
 eligibility and when there is no uncertainty in receiving the same.
 
 xii) investments
 
 Long term investments are carried individually at cost less provision
 for diminution, other than temporary, in the value of investments, if
 any. Current investments are carried individually, at lower of cost and
 fair value.
 
 xiii) Employee benefits
 
 Short term employee benefits
 
 The undiscounted amount of short-term employee benefits expected to be
 paid in exchange for the services rendered by employees are recognised
 during the year when the employees render the service.
 
 Long term employee benefits Defined contribution plans:
 
 Provident fund:
 
 The Company''s contribution to the provident fund and pension fund paid
 / payable during the year is debited to the Statement of Profit and
 Loss. The shortfall in provident fund, if any, between the return
 guaranteed by the statute and actual earnings of the Fund is provided
 for by the Company and contributed to the Fund. The net actuarial
 liability of the Company''s obligation for interest rate guarantee has
 been determined at the year end based on an independent actuarial
 valuation and the shortfall, if any, recognised in the Statement of
 Profit and Loss.
 
 Annuity fund:
 
 The Company has a defined contribution plan for certain categories of
 employees, wherein it annually contributes a predetermined proportion
 of employee''s salary to an insurance company which administers the
 fund. The Company recognises such contributions as an expense over the
 period of services rendered.
 
 Defined benefit plans:
 
 Gratuity fund:
 
 The Company accounts for the net actuarial liability of its obligations
 for gratuity benefits based on an independent actuarial valuation
 determined on the basis of the projected unit credit method carried as
 at the year end. Based on the above determined obligation, the Company
 makes contribution to funds managed by insurance companies.  Actuarial
 gains and losses are immediately recognised in the Statement of Profit
 and Loss.
 
 Compensated absence:
 
 The liability in respect of compensated absence for employees is
 determined on the basis of an independent actuarial valuation carried
 out at the end of the year and differential liability recognised as
 expense in the Statement of Profit and Loss.
 
 xiv) Borrowing costs
 
 Borrowing costs include interest, amortisation of ancillary costs
 incurred and exchange differences arising from foreign currency
 borrowings to the extent they are regarded as an adjustment to the
 interest cost. Borrowing costs attributable to the acquisition or
 construction of assets requiring a substantial period of time are
 capitalised.
 
 All other borrowing costs including exchange differences on foreign
 currency loans to the extent regarded as an adjustment to the interest
 costs are charged to Statement of Profit and Loss and included under
 Finance costs.
 
 xv) Segment reporting
 
 The Company is in the business of mining and sale of iron ore and
 manufacture and sale of metallurgical coke and pig iron. All of the
 Company''s establishments are located in one country i.e. India. The
 revenues from other than sale of iron ore, metallurgical coke and pig
 iron are either incidental to the above three businesses or of non-
 recurring nature. Therefore the Company operates in three business
 segments.
 
 Segment revenue, segment expenses, segment assets and segment
 liabilities have been identified to segments on the basis of their
 relationship to the operating activities of the segment. Revenue,
 expenses, assets and liabilities which relate to the Company as a whole
 and are not allocable to segments on reasonable basis, have been
 included under Unallocated revenue / expenses / assets /
 liabilities.
 
 xvi) taxes on income
 
 The Company''s income taxes include taxes on the Company''s taxable
 profits, adjustment attributable to earlier periods and changes in
 deferred taxes. Valuation of all tax liabilities/receivables are
 carried at current amounts and in accordance with the enacted tax laws
 and in the case of deferred taxes, at rates that have been
 substantively enacted.
 
 Deferred tax is calculated to correspond to the tax effect arising when
 final tax is determined. Deferred tax corresponds to the net effect of
 tax on all timing differences which occur as a result of items being
 allowed for income tax purposes during a period different from when
 they were recognised in the financial statements.
 
 xvii) Impairment of assets
 
 The carrying amounts of fixed assets are reviewed for impairment, if
 events or changes in circumstances indicate that the carrying value of
 an asset may not be recoverable. If there are indicators of impairment,
 an assessment is made to determine whether the asset''s carrying value
 exceeds its recoverable amount. Whenever the carrying value of an asset
 exceeds recoverable amount, impairment is charged to the Statement of
 Profit and Loss.
 
 xviii) Provisions, contingent liabilities and contingent assets
 
 A provision is recognised when the Company has a present obligation as
 a result of a past event and it is probable that an outflow of
 resources will be required to settle the obligation in respect of which
 a reliable estimate can be made. Provisions (excluding retirement
 benefits) are not discounted to their present value and are determined
 based on best estimate required to settle the obligation at the balance
 sheet date. A contingent liability is disclosed unless the possibility
 of an outflow of resources embodying economic benefits is remote. A
 contingent asset is neither recognised nor disclosed.