i) Basis of accounting
 
 The financial statements have been prepared on accrual basis under the
 historical cost convention to comply in all material respects with the
 Generally Accepted Accounting Principles in India and the relevant
 provisions of the Companies Act, 1956.
 
 ii) Use of estimates
 
 The presentation of financial statements requires estimates and
 assumptions to be made 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) Revenue recognition
 
 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 taxes/value added taxes, and is
 after considering adjustments on final invoices (arising on analysis
 variances) received upto the year end.
 
 Revenue in respect of contracts for services is recognised on
 completion of services.
 
 Dividend income is recognised when the right to receive dividend is
 established.
 
 Interest income is recognised on a time proportion basis by reference
 to the principal outstanding and at the interest rate applicable.
 
 iv) Employee benefits
 
 a.  Provident fund: The Company’s contribution to the recognised
 provident fund, pension fund and employees deposit linked insurance
 scheme paid/payable during the year is debited to the Profit and Loss
 Account.
 
 b.  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 Profit and Loss Account.
 
 c.  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.
 
 d.  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 Profit and Loss Account.
 
 v) Investments
 
 Long-term investments are stated at cost less provision for diminution.
 Provision for diminution is made to recognise decline (other than
 temporary) in the value of investments, if any. Current investments are
 stated at cost or market value, whichever is lower.
 
 vi) Inventories
 
 Raw material, consumable stores and spares are held for use in
 production and are valued at cost determined on the basis of weighted
 average method.
 
 Work-in-progress, stock of iron ore, metallurgical coke and pig iron
 are valued at lower of cost or net realisable value. Cost includes raw
 material and proportion of fixed and variable overheads.
 
 vii) Foreign currency transactions
 
 Transactions in foreign currency are recorded at exchange rates
 prevailing on the date of the transaction.  Year end balance of
 monetary assets and liabilities are translated at the year end rates.
 Exchange difference arising on restatement or settlement is charged to
 the Profit and Loss Account.
 
 viii) 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 Profit and Loss
 Account.
 
 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 Profit and
 Loss Account in the period when the hedged item is recognised in the
 Profit and Loss Account.
 
 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 Profit and Loss Account 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 Profit and Loss Account for
 the year.
 
 ix) Fixed assets
 
 Fixed assets except for the leasehold mine at Karnataka, are stated at
 their original cost along with taxes, duties (net of Modvat/Cenvat
 availed, if any), freight and interest on borrowings up to the date of
 commissioning for operation, attributable to acquisition/construction
 of the concerned assets.
 
 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 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.
 
 x) Borrowing costs
 
 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 are charged to revenue.
 
 xi) Depreciation
 
 Depreciation, except on the leasehold mine at Karnataka, and in respect
 of vehicles, furniture, computers and railway wagons is provided for on
 Straight Line Method (SLM) at the rates specified in Schedule XIV of
 the Companies Act, 1956. In respect of vehicles, furniture and
 computers, depreciation has been charged on SLM method at annual rate
 of 20%, 10% and 30% respectively to bring it in line with the useful
 life of the assets. The cost of railway wagons procured under Wagon
 Investment Scheme (WIS) is being depreciated at the rate of 10% per
 annum on a Straight Line basis. The value of mining leases capitalised
 are amortised in proportion to actual quantity of ore extracted
 therefrom. Amounts paid towards renewal of forest clearances in respect
 of owned mining lease are amortised over the operating period of the
 lease. Fixed assets costing less than Rs. 5,000 are wholly depreciated
 in the year of acquisition. Expenses on implementation of Enterprise
 Resource Planning - SAP are amortized over thirty six months.
 
 Depreciation has been 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.
 
 xii) Impairment of assets
 
 The carrying amounts of tangible 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 Profit and Loss Account.
 
 xiii) 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.
 
 xiv) Segment reporting
 
 The Company is in the business of mining and sale of iron ore,
 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 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”.
 
 xv) 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 enacted tax
 regulations, rates or in the case of deferred taxes those that have
 been substantially 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.
 
 xvi) Accounting for government grants/refunds
 
 Government grants/subsidies and refunds due from Government Authorities
 are accounted when there is reasonable certainty of their realisation.