1.  Contingent Liabilities
                                          31.03.2011    31.03.2010
                                          Rs. In lacs   Rs. In lacs
 
 Contingent Liabilities not provided for
 
 a).  Income tax                              589.22         92.46
 
 b).  VAT/CST                               2,001.28             -
 
 c).  Entry tax                               260.97             -
 
 d).  Bank Guarantee                        5,133.83      5,360.79
 
 e).  Letter of credit                      3,791.52        101.31
 
 
 2.  Estimated amounts of contracts remaining to be executed on capital
 account and not provided : Rs.658.93 lacs (As at 31.3.2010 Rs. 444.48
 lacs) [Net of advances Rs. 10.90 (As at 31.03.2010 Rs. Nil)].
 
 3.  The Company had been allotted a Coal block along with two other
 companies in 2006-07. The investment and the operation of the mine
 would be done by the company as the leader of the group. The company
 has paid advance payments for acquisition of land. The Company has
 arranged for bank guarantee of Rs. 3250.00 lacs as at 31.03.2011 (As at
 31.03.2010 Rs.3250.00 lacs).
 
 4.  Sales Tax
 
 a). The Company had filed a writ petition before the High Court of
 Orissa for sales tax exemption for a period of two years w.e.f. 10th
 June 1997 as a Pioneer Unit. The High Court initially ruled that the
 Company should pay the sales tax under dispute pending disposal of the
 writ petition. Accordingly, the Company paid Sales tax, which had not
 been collected from customers, and amounts aggregating to Rs 573.73
 lacs had been charged to the Profit & Loss Account during the years
 1997-98 to 1999-2000.
 
 The High Court directed the Sales Tax Authorities to refund the amount
 after ascertaining that the said refund shall not unjustly enrich the
 Company. The Sales Tax Officer passed the order stating that the refund
 shall unjustly enrich the Company against which the Company has filed a
 writ petition in the High Court challenging the correctness of the
 assessment and the same is pending. No credit has been taken in the
 accounts, as the matter has not reached finality.
 
 b). As per Industry Policy Resolution 1992 of Government of Orissa, the
 company has to pay a minimum sales tax of Rs.  252.56 lacs before
 availing exemption from sales tax on incremental sale of Sponge Iron
 from Kiln 1 and 2. The company was paying the above amount until the
 rate of sales tax was reduced. With reduction in rate of sales tax, the
 company contends that the above limit of Rs. 252.56 lacs has to
 correspondingly reduce and accordingly is making reduced payment. The
 company however has provided for the differential amount of Rs. 397.92
 lacs as at 31st March 2011 (As at 31.03.201 ORs. 271.64 lacs).
 
 5.  Related party transaction
 
 a) List of Related Parties and Relationship 
 
 Name of the Related Party
 
 i) Tata Steel Limited         Promoter Company holding more than 20%
 
 ii) Key Management Personnel
 
 Mr. Suresh Thawani            Managing Director
 
 6.  Employee Benefits
 
 Defined Contribution Plans
 
 The Company has recognised, in the Profit and Loss Account for the
 current year an amount of Rs. 178.58 lacs
 
 7.  The Company is engaged in production and sale of Sponge Iron and
 hence Sponge Iron is the only reportable segment in accordance with
 Accounting Standard 17 - Segment Reporting.
 
 8.  Based on and to the extent of information obtained from suppliers
 regarding their status as Micro, Small or Medium enterprises under
 Micro, Small and Medium Enterprises Development Act, 2006, there are no
 amounts due to them as at the end of the year.
 
 9.  Derivative Instruments
 
 The Company uses foreign currency forward contracts to hedge its risks
 associated with foreign currency fluctuations. The use of foreign
 currency forward contracts is governed by the Companys strategy
 approved by the Board of Directors, which provide principles on the use
 of such forward contracts consistent with the Companys Risk Management
 Policy. The Company does not use forward contracts for speculative
 purposes.
 
 10.  Disclosure as required under AS 29
 
 Provisions for Sales tax and Entry tax have been recognised in the
 financial statements considering the following:
 
 i).  The company has a present obligation as a result of past event
 
 ii).  It is probable that an outflow of resources embodying economic
 benefits will be required to settle the obligation; and
 
 iii).  A reliable estimate can be made of the amount of the obligation
 
 11.  Figures for the previous year have been restated/regrouped where
 necessary to conform with figures for the current year