1.  Contingent liabilities not provided for in respect of-
 
 a) Bank Guarantees amounting to Rs. 214.15 Lacs (Previous year - Rs.
 284.35 Lacs) [FDR for Rs. 23.98 Lacs (Previous year-Rs. 31.46 Lacs)
 pledged with the banks as margin.]
 
 b) Demand for West Bengal VAT of? 19,365,628 (Previous year Nil) and
 for Central Sales Tax of Rs. 14,32,166 (Previous year Nil) for the year
 2005-06 disputed in appeal with Senior Joint Commissioner Sales Tax. An
 Advance of? 20 Lacs paid under protest.
 
 c) Demand for West Bengal VAT of Rs. 48,558,046 (Previous year - Rs.
 67,186,278) and for Central Sales Tax of Rs.  1,399,114 (Previous year
 - Rs. 1,399,114) for the year 2006-07 disputed in appeal with West
 Bengal Commercial Taxes Appellete and Revisional Board, Kolkata. An
 Advance of Rs. 30 Lacs paid under protest.
 
 2.  Estimated amount of commitments on Capital Account (Net of
 Advances) - NIL (Previous year - Rs.  27.36 Lacs).
 
 3.  In the opinion of the management, Current Assets, Loans & Advances
 have a value on realisation at least equal to the amount at which they
 are stated in the Balance Sheet. Adequate provisions have been made for
 all known losses and liabilities.
 
 4.  Certain balances of Advances, Sundry debtors & Sundry creditors are
 subject to confirmation.
 
 5.  There are no Micro, Small and Medium Enterprises to whom the
 Company owes dues, which are outstanding for more than 45 days as at
 31st March, 2011. This information as required to be disclosed under
 the Micro, Small and Medium Enterprises Development Act, 2006 has been
 determined to the extent such parties have been identified on the basis
 of information available with the Company and relied upon by the
 auditors.
 
 6.  Managerial Remuneration:
 
 b) Liability for gratuity and leave encashment is provided on actuarial
 basis for the Company as a whole. The amount pertaining to directors is
 not ascertainable and, therefore, not included above.
 
 c) The computation of net profit for the purpose of directors''
 remuneration under Section 349 of the Companies Act, 1956 has not been
 enumerated since no commission has been paid to any director. Fixed
 managerial remuneration has been paid to the Managing Director within
 the limit specified in Schedule XIII of the Companies Act, 1956.
 
 7.  Research and Development is assimilated to the production process
 of the Company and hence cannot be segregated. No specific expenditure
 was incurred under this head.
 
 8.  Amount of excise duty on variation in stocks shown in Schedule -16
 represents differential excise duty on opening and closing stock of
 finished goods.
 
 9.  There are no transactions which are required to be disclosed under
 Clause 32 of the Listing Agreement.
 
 10.  No forward contracts/hedging instruments are outstanding at the
 Balance Sheet date. Unhedged foreign currency exposure as at 31.03.11
 is Nil.
 
 11.  During the year, the Company has changed its accounting policy
 relating to write off of share issue expenses from amortising 1/5th of
 the expenditure every year to adjusting the same against the balance
 available in Securities Premium Account as permitted in Section 78 of
 the Companies Act, 1956. The change in accounting policy does not have
 any impact on the profit for the year
 
 12.  Several Parties including the Company have disputed the basis of
 levy of fuel surcharge in electricity bills of Damodar Valley
 Corporation (DVC). Based on the order of Appellate Tribunal of
 Electricity dated 10/05/2010, the provisional bills are issued by DVC
 and provided for in the accounts of the Company.
 
 The Company has also during the year provided for disputed Electricity
 dues of DVC for Rs. 24,514,255/- in respect of earlier years as per the
 basis indicated in the said Order. However, the appeal filed by DVC in
 the matter is pending before the Hon''ble Supreme Court of India.
 
 13.  The Company is in the process of issuing Global Depository
 Receipts (GDR''s) amounting to USD 12 million. Expenses incurred during
 the year in relation thereto have been shown under the head Loans &
 Advances to be adjusted in the year of issue with balance available in
 the Securities Premium inline with the provisions of Section 78 of the
 Companies Act, 1956.
 
 14.  The Company has made current tax provision for Minimum Alternate
 Tax (MAT) u/s 115JB of the Income Tax Act, 1961. As per the provisions
 of Section 115JAA, MAT Credit receivable has been recognized as an
 asset in accordance with the recommendations contained in Guidance Note
 issued by the Institute of Chartered Accountants of India. The said
 asset is created by way of a credit to the profit & loss account and
 shown as MAT Credit Entitlement. The Company will review the same at
 each balance sheet date and write down the carrying amount of MAT
 Credit Entitlement to the extent there is no longer convincing evidence
 to the effect that Company will pay normal Income Tax during the
 specified period.
 
 15.  Disclosure pursuant to accounting Standard-15 (Revised)-Employee
 Benefits-
 
 Defined Benefit Plan:
 
 The employee gratuity fund scheme managed by SBI Life Insurance Company
 Ltd (insurer) is a defined benefit plan. The present value of
 obligation is determined based on the actuarial valuation using the
 Projected Unit Credit Method as on 31 st March 2011, which recognizes
 each period of service as giving rise to additional unit of employee
 benefit entitlement and measures each unit separately to build ud the
 final obliaation.
 
 The estimates of rate of escalation in salary considered in actuarial
 valuation, take into account inflation, seniority, promotion and other
 relevant factors including supply and demand in the employment market.
 
 The expected rate of return on plan assets is determined considering
 several applicable factors, mainly the composition of plan asset held,
 assessed risks, historical results of return on plan asset and the
 Company''s policy for plan assets management.
 
 The above information is certified by the actuary.
 
 The Company expects to contribute Rs. 2.51 Lacs to the Gratuity Fund
 managed by the SBI Life Insurance Company Ltd during the Financial Year
 2011-12.
 
 16.  Based on the synergies, risks and returns associated with business
 operations and in terms of Accounting Standard -17, the Company is
 predominantly engaged in a single reportable segment of Iron and Steel
 during the year. The risks and returns of existing captive power plant
 are directly associated with the manufacturing operations of Iron &
 Steel and hence treated as a single reportable segment as per
 Accounting Standard-17. There is no separate geographical segment.
 
 17.  Related party disclosures
 
 i.  Name of the related parties where control exists irrespective of
 whether transactions have occurred or not a) Enterprise on which the
 Company has control None
 
 b) Entities/Individuals owning directly or indirectly   - None
    an interest - in the voting power that gives them 
    control
 
 ii.  Names of the other related parties with whom transactions have
 taken place during the year
 
 a) Joint Venture                  Moira Mahujore Coal Ltd
 
 b) Key Managerial Personnel 
    (KMP) & Relatives of KMP       Mr.Vikash Patni, Managing Director
 
                                   Mr.Vimal Kumar Patni, Director 
 
                                   Mr. Akkash Patni, Director 
 
                                   Mrs. Premlata Patni, Mother of MD 
 
                                   Mrs. Sunita Patni, Wife of MD
 
 c) Enterprises owned or 
    significantly Influenced by 
    (b) above                      Impex Infotech Ltd
 
                                   Brahmand Udyog Ltd.  
 
                                   Swami Vinimay Ltd.  
 
                                   Impex Ferro Tech Ltd.  
 
                                   Vikash Smelters & Alloys Ltd.  
 
                                   Unilever Enterprises Ltd.  
 
                                   Sahyogi Distributors Ltd.  
 
                                   Vikash Ores Ltd.  
 
                                   Lucky Prime Dealers Pvt Ltd
 
 18. Components of Deferred tax liability as on 31st March, 2011 are as
 follows:
 
 Deferred tax asset on account of unabsorbed depreciation has been
 recognised as there exists virtual certainty of realisation on reversal
 of deferred tax liability in future years on account of depreciation.
 
 19. In compliance with Accounting Standard - 27 on Financial Reporting
 for Interests in Joint Venture as notified under Companies (Accounting
 Standards) Rules, 2006, brief description of Joint Venture of the
 Company are:
 
 Moira Madhujore Coal Ltd - A Joint Venture with five other Companies
 for the purpose of development of Coal Block. The Company''s share in
 the said Venture is 23.32%.
 
 20. Previous year''s figures have been reworked, re-grouped, re-arranged
 and reclassified, wherever considered necessary. Accordingly amounts
 and other disclosures for the preceding year are included as an
 integral part of the current year financial Statements and are to be
 read in relation to the amounts and other disclosures relating to the
 current year.