1.  General Information
 
 Usha Martin Limited (the ''Company'') is a public limited company
 domiciled in India, incorporated under the provisions of the Companies
 Act, 1956 and is listed on two stock exchanges in India and its GDRs on
 one stock exchange in Luxembourg. The Company is engaged in the
 manufacturing of specialty steel and value added steel products. The
 Company caters to both domestic and international markets.
 
 
 (a) 8,019,495 (31 March, 2011: 4,729,370) Equity Shares are represented
 by Global Depository Receipts (GDRs) out of above paid up Equity
 Shares.
 
 (b) Rights, preference and restrictions attached to shares issued:
 
 The Company has only one class of equity shares having a par value of
 Re.1 per share. Each shareholder is eligible for one vote per share
 held (except in case of GDRs). The dividend if proposed by the Board of
 Directors is subject to the approval of the shareholders in the ensuing
 Annual General Meeting, except in case of interim dividend. In the
 event of liquidation, the equity shareholders are eligible to receive
 the remaining assets of the Company after distribution of all
 preferential amounts, in proportion to their shareholding.
 
 Nature of Security and terms of repayment for secured borrowings :
 Nature of Security
 
 All Term Loans from Financial Institution and Banks are secured by way
 of Joint Equitable Mortgage by deposit of title deeds of certain
 immovable properties and hypothecation over movable assets of the
 Company both present and future subject to prior charges of the
 Company''s Bankers on specified movable assets for Working Capital
 requirements.
 
 Terms of Repayment
 
 (a) Rupee term loan from a Financial Institution amounting to Rs.25,000
 (31st March, 2011:Rs. 25,000) is repayable in eighteen quarterly
 installments commencing from 20th June 2013 to 20th September 2017.
 Interest is payable on monthly basis at One Year Gsec plus 2.85% p.a.
 
 (b) Rupee term loan from a Financial Institution amounting to Rs.20,000
 (31st March, 2011:Rs. Nil) is repayable in eighteen quarterly
 installments commencing from 20th June 2014 to 20th September 2018.
 Interest is payable on monthly basis at One Year Gsec plus 3.25% p.a.
 
 (c) Rupee term loan from a Bank amounting to Rs.10,000 (31st March,
 2011 :Rs. 10,000) is repayable in twenty quarterly installments
 commencing from 1st April 2013 to 1st January 2018. Interest is payable
 on monthly basis at Base rate of the Bank plus 2% p.a.
 
 (d) Rupee term loan from a Bank amounting to Rs. 8,000 (31st March,
 2011:Rs. 9,600) is repayable in nineteen quarterly installments from
 29th April 2013 to 29th October 2017.  Interest is payable on monthly
 basis at Base rate of the Bank plus 1.75% p.a.
 
 (e) Rupee term loan from a Bank amounting to Rs. 20,000 (31st March,
 2011:Rs. 24,000) is repayable in eleven quarterly installments from
 30th June 2013 to 31st December 2015.  Interest is payable on monthly
 basis at Base rate of the Bank plus 2.15% p.a.
 
 (f) Rupee term loan from a Bank amounting to Rs.20,000 (31st March,
 2011:Rs. Nil) is repayable in twelve quarterly installments commencing
 from 31st December 2013 to 30th September 2016.  Interest is payable on
 monthly basis at Base rate of the Bank plus 1.15% p.a.
 
 (g) Rupee term loans from Banks aggregating to Rs. Nil (31st March,
 2011 Rs. 10224) carrying interest at Base rate of the banks plus 2.25%
 p.a. have been prepaid during the year.
 
 (h) Foreign Currency term loan from a Bank amounting to Rs.  63,588
 (31st March, 2011:Rs. 11,138) is repayable in ten equal quarterly
 installments commencing from 30th October 2015 to 31st January 2018.
 Interest is payable on quarterly basis at three months USD LIBOR plus
 2.85% p.a.
 
 (i) Foreign Currency term loan from a Bank amounting to Rs.  12,717
 (31st March, 2011 :Rs.20,048) is repayable in five equal quarterly
 installments from 16th May 2013 to 16th May 2014.  Interest is payable
 on half yearly basis at six months JPY LIBOR plus 1.40% p.a.
 
 (j) Foreign Currency term loan from a Bank amounting to Rs.  17,804
 (31st March , 2011:Rs. 15,592) is repayable in five equal quarterly
 installments commencing from 16th August 2013 to 16th August 2014.
 Interest is payable on half yearly basis at six months JPY LIBOR plus
 2% p.a.
 
 (k) Foreign Currency term loan from a Bank amounting to Rs.  Nil (31st
 March, 2011:Rs. 2,339) is repayable in two equal installments on 15th
 August, 2012 and 15th February, 2013 respectively. Interest is payable
 on half yearly basis at six months USD LIBOR plus 1.50% p.a.
 
 (l) Foreign Currency term loan from a Bank amounting to Rs. Nil (31st
 March, 2011:Rs. 4,009) is repayable on 5th June, 2012 and 3rd July,
 2012 respectively. Interest is payable on monthly basis at six months
 USD LIBOR plus 1.50% p.a.
 
 (m) Outstanding balances of loans as indicated in (a) to (l) above are
 exclusive of current maturities of such loans as disclosed in Note 11.
 
 2. Contingent Liabilities
 
                                               As at 31st    As at 31st
                                               March, 2012   March, 2011
 
 A Claims against the Company not 
 acknowledged as debt
 
 Disputed Tax and Duty for which the 
 Company has preferred appeal before
 appropriate authorities.
 
 Demand for Income Tax Matters                       1,940         1,940
 
 Demand for Sales Tax                                  465            84
 
 Demand for Excise Duty and Service Tax              5,812         4,433
 
 Demand for Customs Duty                                83           124
 
 Outstanding Labour Disputes                            31            34
 
 Disputed Electricity duty rebate 
 matters which is subjudice                            504             - 
 
 B Guarantees
 
 Corporate Guarantee given by the 
 Company to secure the financial
 assistance/accommodation                            6,779         6,851 
 extended to other Bodies Corporate
 
 C Bills discounted with Banks 
 including against Letter of Credit                 12,682        11,034
 
 @ Contribution towards Provident Fund for certain employees is made to
 the regulatory authorities, where the Company has no further
 obligations. Such benefits are classified as Defined Contribution
 Schemes as the Company does not carry any further obligations, apart
 from the contribution made on a monthly basis and recognised as expense
 in the statement of Profit and Loss, indicated above.
 
 (b) Post Employment Defined Benefit Plans
 
 I.  Gratuity (Funded)
 
 The Company provides for gratuity, a defined benefit retirement plan
 covering eligible employees. As per the scheme, the Gratuity Trust
 Funds managed by the Life Insurance Corporation of India (LIC) and
 other insurance companies make payment to vested employees at
 retirement, death, incapacitation or termination of employment, of an
 amount based on the respective employee''s eligible salary for
 specified number of days (ranging from fifteen days to one month)
 depending upon the tenure of service subject to a maximum limit of
 twenty months'' salary. Vesting occurs upon completion of five years
 of service. Liabilities with regard to the Gratuity Plan are determined
 by actuarial valuation as set out in Note 2.13 (b) above, based upon
 which, the Company makes contributions to the Gratuity Funds.
 
 II.  Provident Fund
 
 Provident Funds contributions in respect of employees [other than those
 covered in (a) above] are made to Trusts administered by the Company
 and such Trusts invest funds following a pattern of investments
 prescribed by the Government. Both the employer and employee contribute
 to this Fund and such contributions together with interest accumulated
 thereon are payable to employees at the time of their separation from
 the Company or retirement, whichever is earlier. The benefit vests
 immediately on rendering of services by the employee, The interest rate
 payable to the members of the Trusts is not lower than the rate of
 interest declared annually by the Government under the Employees''
 Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall,
 if any, on account of interest is to be made good by the Company. In
 terms of the Guidance on implementing Accounting Standard (AS) 15 on
 Employee Benefits issued by the Accounting Standards Board of the
 Institute of Chartered Accountants of India, a provident fund set up by
 the Company is treated as a defined benefit plan in view of the
 Company''s obligation to meet interest shortfall, if any.
 
 Unlike in earlier years, the Actuary has carried out actuarial
 valuation of plan''s liabilities and interest rate guarantee obligations
 as at the balance sheet date using PUCM and Deterministic Approach as
 outlined in the Guidance Note 29 issued by the Institute of Actuaries
 of India. Based on such valuation, there is no future anticipated
 shortfall with regard to interest rate obligation of the Company as at
 the balance sheet date. Further during the year, the Company''s
 contribution of Rs.412 (Previous year:Rs.333) to the Provident Fund
 Trust, has been expensed under Contribution to Provident and Other
 Funds. Disclosures given hereunder are restricted to the information
 available as per the Actuary''s report,
 
 3. Lease Commitments
 
 (a) Operating Lease Commitments
 
 The Company has two non-cancellable operating lease agreements both
 having a tenure of fifteen years, in connection with establishment and
 operation of plants, by the lessor, for production of gaseous oxygen to
 cater to the Company''s Steel Plant at Jamshedpur. One of such
 agreements became operative in 2001-02 (Lease A) and the other one has
 become operative in 2007-08 (Lease B). The Company pays minimum lease
 rent and fixed, as well as, variable operating and maintenance charges
 for both the Leases.
 
 In respect of Lease A, 30% of lease rent, fixed and variable operation
 and maintenance charges will be escalated every quarter in the same
 proportion as increase in Wholesale Price Index published by the
 Reserve Bank of India in its bulletin (base period 1st August, 1999 ).
 
 In respect of Lease B, 70% of lease rents and operation and maintenance
 charges will be escalated every quarter in the same proportion as
 increase in Wholesale Price Index published by the Reserve Bank of
 India in its bulletin ( base period 20th April, 2007)
 
 (b) The Company has entered into cancellable operating leases and
 transactions for leasing of accommodation for office spaces, employees
 residential accommodation etc. Tenure of leases generally vary between
 1 and 3 years. Terms of the lease include operating term for renewal,
 increase in rent in future periods and term of cancellation. Related
 lease rentals aggregating Rs.558 (Previous year Rs.393 ) have been
 debited to the Profit and Loss Account.
 
 a - denotes Subsidiaries
 
 b - denotes Loans outstanding as at 31st March, 2012
 
 c - denotes amount due on account of accrued interest, management
 service charges and recovery of expenses outstanding as at 31st March,
 2012
 
 d - denotes maximum amount outstanding during the year ended 31st
 March, 2012 e - denotes no repayment schedule or repayment beyond seven
 years.
 
 II.  In view of voluminous data furnishing of particulars such as name,
 amount outstanding at the year end and maximum amount outstanding
 during the year in respect of loans and advances in the nature of loan
 given to employees for medical, furniture, housing, vehicle etc. with
 interest rate varying from 0 - 6 per cent and repayment terms varying
 from 1 - 10 years is not considered practicable. Aggregate amount of
 such advances and loans outstanding at the year end is Rs.124 [31st
 March 2011 ; Rs.132).
 
 4.  Provision for Dividend Tax is net of write back of excess
 provision Rs.Nil (Pervious Year : Rs.12) made in earlier year,
 
 5.  The financial statements for the year ended 31st March, 2011 had
 been prepared as per the then applicable, pre-revised Schedule-VI to
 the Companies Act, 1956. Consequent to the notification of Revised
 Schedule VI under the Companies Act, 1956, the financial statements for
 the year ended 31st March, 2012 are prepared as per Revised Schedule
 VI. Accordingly, the previous year figures have also been reclassified
 to confirm to this year''s classification.