1.  CONTINGENT LIABILITIES
 
                                           As at 31st     As at 31st
                                           March, 2011    March, 2010
 
                                                 (Rs.in crore)
 
 (i)  Claims against the Company pending 
 appellate/judicial decisions :
 
 a) Excise Duty                             1947.97         1822.71
 
 b) Sales Tax on inter-state stock transfers 
 from plants to stockyards*.                 836.31          867.44
 
 c) Other sales tax matters                  282.73          207.02
 
 d) Income Tax                               256.56          134.99
 
 e) Other duties, cess and levies            428.19          375.93
 
 f) Civil matters **                         266.77          252.31
 
 g) Miscellaneous **                         300.01          282.06
 
 * No liability is expected to arise, as sales tax has been paid on
 eventual sales.
 
 ** includes claims of Rs.22.54 crore (Rs.25.70 crore), against which there
 are counter-claims of Rs.17.24 crore (Rs.28.90 crore).
 
 (ii) Other claims against the Company not acknowledged as debt:
 
 a) Sales Tax                                 10.52           0.86
 
 b) Duties, cess and levies                   14.73          13.05
 
 c) Civil Matters                             14.58          20.53
 
 d) Miscellaneous $                          525.67         725.08 
 
 $$ $ includes claims of Rs.73.16 crore (Rs.62.24 crore), against which
 there are counter-claims of Rs. 62.42 crore (Rs.49.62 crore).
 
 (iii) Disputed income tax/service tax/other demand on joint venture
 company for which company may be contingently liable under the joint
 venture agreement                           147.85           26.94
 
 (iv) Guarantees/Counter-guarantees of Rs.28.85 crore (Rs.28.85 crore)
 given to banks on behalf of a subsidiary company. As at the end of 
 the year, the guarantees utilised to the 
 extent of                                     0.37            0.37
 
 (v) Bills drawn on customers and discounted 
     with banks.                              10.53           17.29
 
 (vi) Price escalation claims by contractors/
 suppliers and claims by certain employees, 
 extent whereof is not ascertainable            -               -
 
 $$ The Provisional Duty Assessment Bonds against concessional duty for
 project imports of Rs.250.64 crore, submitted to the Customs Authorities,
 were included as at 31st March, 2010 erroneously. After review during
 the year ended 31st March, 2011, the same have been excluded from
 contingent liabilities considering the possibility of outflow of funds
 as remote.
 
 2.  FIXED ASSETS
 
 2.1 Land:
 
 (i) Includes 62101.12 acres (62094.00 acres) owned / possessed / taken
 on lease by the Company, in respect of which title/ lease deeds are
 pending for registration.
 
 (ii) Includes 1845.71 acres (1845.71 acres) in respect of which title
 is under dispute.
 
 (iii) 10615.66 acres (10615.66 acres) transferred/agreed to be
 transferred or made available for settlement to various Central / State
 / Semi-Government authorities, in respect of which conveyance deeds
 remain to be executed/registered.
 
 (iv) 6204.60 acres (6190.37 acres) given on lease to various
 agencies/employees/ex-employees.
 
 3.2 Buildings include net block of Rs.24.11 crore (Rs.24.06 crore) for
 which conveyance deed is yet to be registered in the name of the
 Company.
 
 3.3 Foreign exchange variations aggregating to Rs.1.46 crore (net credit)
 [Rs. 61.63 crore (net credit)] have been adjusted in the carrying amount
 of fixed assets during the year.
 
 3.4 Estimated amount of contracts remaining to be executed on capital
 account and not provided for (net of advances) - Rs.25477.01 crore
 (Rs.23822.80 crore).
 
 4.  INVESTMENT, CURRENT ASSETS, LOANS & ADVANCES AND CURRENT
 LIABILITIES & PROVISIONS
 
 4.1 The Central Board of Direct Taxes vide its Notification dated 25th
 September 2001 revised the rules for computation of certain
 perquisites. The Employees'' Union/Association filed writ petitions with
 the Hon''ble High Court at Kolkata challenging the above Notification.
 In pursuance of Hon''ble Court''s orders, the term deposits (including
 interest earned thereon) amounting to Rs.161.74 crore (Rs.152.16 crore)
 have been kept separately with bank(s) in respect of tax deducted on
 house perquisite w.e.f. 1st April 2003 and other perquisites w.e.f. 1st
 October 2001, upto 31st March 2005, pending final decision of the
 Hon''ble Court. Such deductions and deposits after 31st March 2005, have
 been made in accordance with amended law/judicial decisions. However,
 there is no impact on accounts of the company as the additional tax, if
 required, shall be recoverable from the employees.
 
 4.3 Balances shown under creditors, debtors, claims recoverable and
 advances include balances subject to confirmation/reconciliation and
 consequential adjustment, if any. Reconciliations are carried out on
 on-going basis. Provisions, wherever considered necessary, have been
 made.
 
 4.4 The Company has stock of iron ore fines of 41.23 (41.22) million
 tonnes at various mines of the Company. Since the usage/sale of such
 iron ore fines, not being readily useable /saleable, involves elements
 of uncertainties, as a matter of prudence, no valuation of such fines
 has been made in the accounts. However, the revenue earned from actual
 disposal thereof during the year has been recognised in the books of
 accounts.
 
 4.5 i) An amount of Rs 51.34 crore has been given to Chhattisgarh State
 Power Transmission Company Limited out of total amount of Rs 51.34 crore
 payable as per demand letter No.  CE/Trans./PL-HTC-31/0461 and 0462
 dated 04th May, 2010 for providing transmission lines and power
 connection at upcoming Rowghat Mines. The amount has been reflected as
 Loans & Advances - Deposits. The transmission lines will not be owned
 by the Company. The MOU has been signed on 12th May 2011.
 
 ii) An amount of Rs. 132.49 crore has been given to Railways, out of
 total amount of Rs 844.23 crore payable as per MOU dated 11th December,
 2007 and revised estimate by M/s. RVNL dated 17th July, 2009, for
 construction of railway line for movement of ore from upcoming Rowghat
 mines. The amount has been reflected as Loans & Advances - Deposits.
 As per agreement, Railways will pay at the end of every year to the
 Company cash at the rate of 7% per annum for 37 years on total
 contribution towards redemption of Company''s contribution, commencing
 from the 1st year after commissioning of the Phase - I of the project,
 subject to fulfilment of certain conditions. The underlyingassets will
 not be owned by the Company.
 
 4.6 In respect of services provided by Central Industrial Security
 Force, an agency of Government of India, the issue of payment of
 service tax on the services for the period 1st May, 2006 to 31st March,
 2009 is under examination by Ministry of Finance, Government of India.
 No contingent liability thereof has been disclosed for the period as
 there is no impact on profitability due to availability of CENVAT
 credit of the same amount.
 
 5.  PROFIT & LOSS ACCOUNT
 
 5.1 Sales include sales to Government agencies recognised on
 provisional contract prices during the year ended 31st March 2011:Rs
 3466.59 crore (Previous year: Rs 3320.53 crore) and upto 31st March,
 2011: Rs 11272.27 crore (Previous year: Rs 7970.77 crore).
 
 5.2 Power & Fuel does not include expenses for generation of power and
 consumption of certain fuel elements produced by the plants which have
 been included under the primary heads of account.
 
 5.4 The Company reviews the carrying amount of its fixed assets on each
 balance sheet date for the purpose of ascertaining impairment, if any,
 by considering assets of entire one plant as Cash Generating Unit. On
 such review as at 31st March, 2011, no provision for the loss making
 units is required to be made, as the net realisable value thereof,
 assessed by an independent agency as at 31st March, 2011 for IISCO
 Steel Plant, Alloy Steels Plant and Visvesvaraya Iron & Steel Plant, is
 more than the carrying amount.
 
 5.5 Pending issuance of accounting and disclosure practices on emission
 trading by the Institute of Chartered Accountants of India, carbon
 credit earned by the Company upto 31st March, 2011 in the form of VER
 (Voluntary Emission Reduction) has not been considered in the accounts.
 
 5.6 Other revenues for the year ended 31st March, 2011 includes Rs.
 124.36 crore, being the write back of liability/excess payment in
 respect of disputed electricity dues of Damodar Valley Corporation
 (DVC) from 1st April, 2009 to 31st March, 2010, arising out of order of
 the Appellate Tribunal of Electricity in favour of the Company.
 However, the appeal filed by DVC in the matter for the period from 1st
 April 2006 to 31st March 2009 is pending before the Hon''ble Supreme
 Court.
 
 5.7 Arising out of implementation of revised salaries & wages,
 Rs.Employees'' Remuneration & Benefits'' charged to the Profit & Loss
 account for the previous year ended 31st March, 2010 are net off of
 excess provision for wage revision, amounting to X 1572.14 crore for
 the period 1st January, 2007 to 31st March, 2009.
 
 5.8 Provision for pension under superannuation benefits has been made
 for executives as per DPE guidelines and approval of Board. As the
 issue remains to be discussed at later date for non-executives and as
 on date is undecided and there exists no liability, no provision has
 been made.
 
 5.9 Against the budgeted amount of Rs.94.00 crore approved by the Board
 towards expenditure on Corporate Social Responsibility activities
 during the year 2010-11, the Company incurred Rs.68.27 crore on the same
 and the balance budgeted amount of Rs.25.73 crore will be spent in due
 course. Since the company does not have any contractual
 obligation/liability as on 31st March 2011, the unspent amount has not
 been provided for in the accounts and would be accounted for as and
 when spent/incurred.
 
 5.10 Information on leases as per Accounting Standard 19 on Rs.Leases'':
 
 (a) The Company has granted long term lease of properties to the
 employees, ex-employees for varying periods, renewable for maximum of
 two like/unlike periods as per provisions contained in the respective
 lease agreements. The lease premium received up-front, after adjusting
 against book value, is booked to other revenues in the year of lease.
 Renewal premium, ground rent and service charges of properties, pending
 for renewal, given on lease are treated as income in the year of
 receipt.
 
 (b) In respect of assets taken on lease/rent :
 
 (i) The Company has various operating leases for, office facilities,
 guest houses and residential premises for employees that are renewable
 on a periodic basis. Rental expenses for these leases recognised in the
 Profit and Loss Account during the year is Rs.14.66 crore (Rs.16.31 crore).
 
 (ii) Sub -lease recoveries recognised in the accounts are Rs.0.02 crore
 (Rs.0.03 crore).
 
 6.  GENERAL
 
 6.1.1 General description of defined benefit schemes:
 
 Gratuity
 
 Payable on separation @15 days pay for each completed year of service
 to eligible employees who render continuous service of 5 years or more.
 Maximum amount of Rs.10 lakhs for executives and without any monetary
 limit for non- executives has been considered for actuarial valuation
 for executives.
 
 Leave Encashment
 
 Payable on separation to eligible employees who have accumulated earned
 and half pay leave. Encashment of accumulated earned leave is also
 allowed upto 30 days once in a financial year.
 
 Provident Fund
 
 12% of Basic Pay Plus Dearness Allowance, contributed to the Provident
 Fund Trusts by the company.
 
 Post Retirement Medical Benefits
 
 Available to retired employees at company''s hospitals and/or under the
 health insurance policy.
 
 Post Retirement Settlement Benefits Payable to retiring employees for
 settlement at their home town.
 
 Employees'' Family Benefit Scheme Monthly payments to disabled separated
 employees / legal heirs of deceased
 
 employees in lieu of prescribed deposit till the notional date of
 superannuation.
 
 Long Term Service Award Payable in kind on rendering minimum 25 years
 of service and also on superannuation.
 
 (c) Provident fund : Company''s contribution paid/payable during the
 year to provident fund are recognised in the Profit & Loss Account. The
 Company does not anticipate any further obligations in the near
 foreseeable future having regard to the assets of the funds and return
 on investment as confirmed by the actuary.
 
 6.2 Segment Reporting
 
 i) Business Segments: The five integrated steel plants and three alloy
 steel plants, being manufacturing units, have been considered as
 primary business segments for reporting under Rs.Accounting Standard-17 -
 Segment Reporting'' issued by the Institute of Chartered Accountants of
 India.
 
 ii) Geographical segments have been considered for Secondary Segment
 Reporting, by treating sales revenue in India and foreign countries as
 separate geographical segments.
 
 6.6 Disclosures of provisions required by Accounting Standard (AS) 29
 ''Provisions, Contingent Liabilities and Contingent Assets:
 
 Brief Description of Provisions :
 
 Mines afforestation - Payable on renewal (including deemed renewal) /
 forest clearance of mining leases to Government
 
 costs authorities, towards afforestation cost at mines for use of
 forest land for mining purposes.
 
 Mines closure costs - Estimated liability towards closure of mines, to
 be incurred at the time of cessation of mining activities.
 
 Overburden - To be incurred towards removal of overburden backlog at
 mines over the future years.
 
 Bcklog removal costs