1.  Contingent Liabilities
 
 (a) Guarantees
 
 The Company has given guarantees aggregating 991.11 crores (31.03.2010
 : 355.28 crores) to banks and financial institutions on behalf of
 others. As at 31st March, 2011, the contingent liabilities under these
 guarantees amounted to 991.11 crores (31.03.2010 : 355.28 crores).  
 
 (b) Claims not acknowledged by the Company
 
                                           As at             As at
                                        31.03.2011         31.03.2010
                                          crores            crores
 
                                            Rs.                  Rs.
 
 (i) Excise                               313.26            296.59
 
 (ii) Customs                              13.68             13.68
 
 (iii) Sales Tax and VAT                  494.54            587.97
 
 (iv) State Levies                        187.28            173.62
 
 (v) Suppliers and Service Contract        72.21             71.02
 
 (vi) Labour Related                       38.84             36.92
 
 (vii) Income Tax                         119.79            143.44
 
 (c) Claim by a party arising out of conversion arrangement - 195.82
 crores (31.03.2010 : 195.82 crores). The Company has not acknowledged
 this claim and has instead fi led a claim of 139.65 crores (31.03.2010
 : 139.65 crores) on the party. The matter is pending before the
 Calcutta High Court.
 
 (d) The Excise Department has raised a demand of 235.48 crores
 (31.03.2010 : 235.48 crores) denying the benefi t of Notifi cation
 
 No. 13/2000 which provides for exemption to the integrated steel plant
 from payment of excise duty on the freight amount incurred for transpor
 ting material from plant to stock yard and consignment agents. The
 Company fi led an appeal with CEST A T , K olkata and the order of the
 department was set aside. The department has fi led an appeal in
 Supreme Court where the matter is pending.
 
 (e) TMT bars and rods in coil form are sent to external processing
 agents (EPA) for decoiling and cutting into specifi ed lengths before
 the products are despatched for sale. Excise department demanded duty
 from the EPA, holding the activity as manufacture and ignoring the
 payment of duty made by Tata Steel. An appeal against the order of the
 Commissioner of Central Excise, Jamshedpur was fi led in CEST A T , K
 olkata and was allowed in favour of the EPA. Subsequently, the
 department challenged the same in Jharkhand High Court, Ranchi, which
 is still pending for hearing. Subsequent demands in this regard have
 not been adjudicated. The liability till
 31st March 2011, if materialises, will be to the tune of 298.87 crores
 (31.03.2010 : 291.22 crores). However, the company has already paid
 duty amounting to 196.48 crores (2009-10: 189.52 crores) till date
 based on the fi nal sale price of the material.
                                     
 
 (f) The State Government of Odisha introduced Orissa Rural
 Infrastructure and Socio Economic Development Act 2004 with effect
 from February 2005 levying tax on mineral bearing land computed on the
 basis of value of minerals produced from the mineral bearing land. The
 Company had fi led a Writ Petition in the High Court of Odisha,
 challenging the validity of the Act. Odisha High Court held in November
 2005 that State does not have authority to levy tax on minerals. The
 State Government of Odisha moved the Supreme Court against the order of
 Odisha High Court and the case is pending with Supreme Court. The
 liability, if it materialises, as at 31.03.2011 would be 1,562.72
 crores (31.03.2010 : 1,277.74 crores).  
 
 (g) In terms of the agreements entered into between Tata Teleservices
 Ltd. (TTSL), Tata Sons Ltd. (TSL) and NTT DoCoMo, Inc. of Japan
 (Strategic Partner-SP), the Company was given by Tata Sons an option to
 sell 52,46,590 equity shares in TTSL to the S P, as part of a secondary
 sale of 25,31,63,941 equity shares effected along with a primary issue
 of 84,38,79,801 shares by TTSL to the S P. Accordingly, the company
 realised Rs. 60.91 crores on sale of these shares resulting in a Profit
 of Rs. 49.77 crores during the year ended March 31, 2009.
 
 Pursuant to the Rights Issue made in 2010-11, SPs shareholding in TTSL
 has increased from 1,09,70,43,742 equity shares of Rs.10 each to
 1,17,26,17,866 equity shares of Rs. 10 each as on March 31, 2011. The
 shareholding of SP represents 26.27% of the paid up equity share
 capital of TTSL on a fully diluted basis as against 26.01% prior to the
 issuance and allotment of Rights Shares to them.  If certain
 performance parameters and other conditions are not met, should the SP
 decide to divest its entire shareholding in TTSL, acquired under the
 primary issue and the secondary sale, and should TSL be unable to fi nd
 a buyer for such shares, the Company is obligated to acquire the
 shareholding of the S P, at the higher of fair value or 50 percent of
 the subscription purchase price, in proportion of the number of shares
 sold by the company to the aggregate of the secondary shares sold to
 the S P, or if the SP divests the shares at a lower price pay a
 compensation representing the difference between such lower sale price
 and the price referred to above.  Further, in the event of breach of
 the representations and warranties (other than title and tax) and
 covenants not capable of specifi c performance, the Company is liable
 to reimburse TSL, on a pro rata basis, upto a maximum sum of Rs. 78.75
 crores. The exercise of the option by SP being contingent on several
 variables the liability, if any, is remote and indeterminable.  (h) The
 Company has been paying royalty on coal extracted from its quarries
 pursuant to the judgement and order dated 23.07.2002 passed by the
 Jharkhand High Court. However, the State Government demanded royalty on
 processed coal at rates applicable to processed coal. Though the
 Company has contested the above demand, it has started paying, under
 protest, royalty on processed coal from November 2008. The incremental
 royalty, paid under protest, during November 2008 to March 2011 of
 54.22 crores has been charged off to Profit and Loss Account. The
 incremental amount (including interest), if payable, for the period
 till October 2008 works out to 355.95 crores (31.03.2010 : 344.19
 crores) and has been considered as a contingent liability.
                                          
 
 (i) Uncalled liability on partly paid shares and debentures 0.01 crore
 (31.03.2010 : 0.01 crore).
 
                                    
 (j) Bills discounted 212.38 crores (31.03.2010 : 274.55 crores).  
 
 2.  The Company has given undertakings to: (a) ICICI Bank Ltd.
 (formerly ICICI), IFCI and IIBI not to dispose of its investment in the
 Indian Steel Rolling Mills Ltd. (ISRM). The ISRM is under liquidation.
 (b) IDBI not to dispose of its investment in Wellman Incandescent India
 Ltd. (c) IDBI and ICICI Bank Ltd. (formerly ICICI) not to dispose of
 its investment in Standard Chrome Ltd. (d) Standard Chartered Bank,
 Hong Kong and Shanghai Banking Corporation not to dispose of majority
 stake in Tata Steel (KZN) (Pty) Ltd.  (e) Mizuho Corporate Bank
 Limited, not to dispose of its investments in Tata NYK Shipping Pte.
 Limited, (minimal stake required to be able to provide a corporate
 guarantee towards long term debt). (f) Bank of America, NA and the
 Royal Bank of Scotland, NV not to dispose of the management control
 (indirectly held) in Tata Steel Global Procurement Co. Pte Ltd. (g)
 State Bank and others not to dispose of its investment in Centennial
 Steel Company Ltd. (CSCL) below 51% of CSCLs paid up equity share
 capital.  (h) State Bank of India not to dispose of the management
 control (indirectly held) in Tata Steel UK Holdings Ltd. and Tata Steel
 Netherlands Holding B V and other companies (the borrower group),
 without the prior consent of the respective financial
 institutions/banks so long as any part of the loans/facilities
 sanctioned by the institutions/banks to these companies remains
 outstanding.
 
 The Company has furnished a Security Bond in respect of its immovable
 property to the extent of Rs. 20 crores in favour of the Registrar of the
 Delhi High Court and has given an undertaking not to sell or otherwise
 dispose of the said property.
 
 The Promoters of Tata BlueScope Limited (TBSL) (i.e. BlueScope Steel
 Limited, Australia and Tata Steel Ltd.) have given an undertaking to
 IDBI Trusteeship Services Ltd., Debenture Trustees, not to dispose of
 the management control in TBSL.
 
 The Promoters (i.e. L & T Infrastructure Development Projects Ltd. and
 Tata Steel Ltd.) combined investments in The Dhamra Port Company Ltd.,
 (DPCL) representing 51% of DPCLs paid-up equity share capital are
 pledged with IDBI Trusteeship Services Ltd.
 
 The Promoters (i.e. The Tata Power Company Limited and Tata Steel
 Ltd.) combined investments in Industrial Energy Limited, (IEL)
 representing 51% of IELs paid-up equity share capital are pledged with
 Infrastructure Development Corporation Limited (IDFC).
 
 The Company has agreed, if requested by Tata Steel UK Holdings Ltd.
 (TSUKH), an indirect wholly owned subsidiary, to procure an injection
 of funds to reduce the outstanding net debt in TSUKH and its
 subsidiaries, to a mutually accepted level.
 
 3.  The Company had, on 20th August, 2005, signed an agreement with the
 Government of Jharkhand to participate in a special health insurance
 scheme to be formulated by the Government of Jharkhand for the purpose
 of providing medical facilities to the families of the people below
 poverty line. The state government would develop a suitable scheme and
 the Company has agreed to contribute to such scheme, when operational,
 a sum of Rs. 25 crores annually for a period of 30 years or upto the year
 of operation of the scheme whichever is less. The scheme is yet to be
 formed and no contribution has been made till 31st March, 2011.
 
 4.  The Board of Industrial and Financial Reconstruction (BIFR)
 sanctioned a scheme for rehabilitation of The Indian Steel and Wire
 Products Limited (ISWP), a sick company in FY 2003-04. In terms of the
 scheme, the Company –
 
 (a) took management control of ISWP; (b) acquired 4,74,130 Equity
 Shares from the existing promoters at 1/- per share;
 
 (c) converted 5.00 crores of dues into 50,00,000 fully paid Equity
 Shares at 10 each and 10.88 crores into unsecured loan to be Rs.Rs. repaid
 by ISWP in 8 annual installments starting from FY 2004-05; (d) has an
 advance of 11.50 crores as at 31.03.2011 (31.03.2010 :
 
 
 14.91 crores) with ISWP towards one time settlement with financial
 institutions for capital expenditure and margin for working capital.  
 
 5.  Estimated amount of contracts remaining to be executed on Capital
 Account and not provided for : 9,605.46 crores (31.03.2010 : 10,698.54
 crores).
 
 
 6.  Profit and Loss Account
 
 a) i) Provision for employee separation compensation (ESS) has been
 calculated on the basis of net present value of the future monthly
 payments of pension and lump sum benefi ts under the scheme including Rs.
 27.53 crores (31.03.2010 : Rs. 46.34 crores) in respect of schemes
 introduced during the year.  ii) The amounts payable within one year
 under the ESS aggregates to Rs. 175.27 crores (31.03.2010 : Rs. 192.85
 crores).
 
 b) The manufacturing and other expenses and depreciation shown in the
 Profit and Loss Account include Rs. 72.90 crores (2009- 10 : Rs. 39.49
 crores) and Rs. 2.79 crores (2009-10 : Rs. 1.94 crores) respectively in
 respect of Research and Development activities undertaken during the
 year.
 
 c) The company has opted for accounting the exchange differences
 arising on reporting of long term foreign currency monetary items in
 line with Companies (Accounting Standards) Amendment Rules 2009
 relating to Accounting Standard 11 (AS-11) notifi ed by Government of
 India on 31st March, 2009 which allows foreign exchange difference on
 long-term monetary items to be capitalised to the extent they relate to
 acquisition of depreciable assets and in other cases to amortise over
 the period of the monetary asset/ liability or the period up to 31st
 March, 2011, whichever is earlier.
 
 As on 31st March, 2011, Rs.Nil (31.03.2010 : Credit of Rs.206.95 crores)
 remains to be amortised in the Foreign Currency Monetary Items
 Translation Difference Account after taking a credit of Rs.261.44
 crores (2009-10 : Charge of Rs. 85.67 crores) in the Profit & Loss
 Account and Rs. 2.07 crores (net of deferred tax Rs. 3.57 crores) [2009-10
 : Rs.47.35 crores (net of deferred tax Rs. 24.38 crores)] adjusted against
 Securities Premium Account during the current financial year on
 account of amortisation. The Depreciation for the year ended 31st
 March, 2011 is higher by Rs.0.48 crore (2009-10 : Rs.0.41 crore) and the
 Profit before taxes for the year ended 31st March, 2011 is higher by RS.
 208.99 crores (2009-10 : Lower by Rs. 561.60 crores).
 
 D.  Promoters holding together with its subsidiary is more than 20%
 
 Tata Sons Ltd.
 
 E.  Key Management Personnel – Whole time Directors
 
 Mr. H. M. Nerurkar
 
 24. Earnings in Foreign Exchange
 
 (i) Export of steel and other materials (at F.O.B. value) 2,252.37
 crores (2009-10 : 2,034.81 crores) [including value of exports through
 export houses].
 
 (ii) Interest received 57.90 crores (2009-10 : 20.60 crores).
                                    
 
 (iii) Others 63.70 crores (2009-10 : 44.07 crores).
                                    
 25.  Derivative Instruments
 
 I) The Company has entered into the following derivative instruments :
 
 a) The Company uses foreign currency forward contracts to hedge its
 risks associated with foreign currency fl uctuations. 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.
 
 26.  Previous years figures have been recast/restated where
 necessary.
 
 27.  Figures in italics are in respect of the previous year.