Notes to Accounts of Electrosteel Castings Ltd.

Mar 31, 2025

3.11 Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a legal or constructive obligation as
a result of past events and it is probable that there will be an outflow of resources and a reliable estimate can be made of the amount
of obligation. Provisions are not recognised for future operating losses. The amount recognized as a provision is the best estimate of
the consideration required for settlement of the present obligation at the end of the reporting period, taking into account the risks and
uncertainties surrounding the obligation.

Contingent liabilities are not recognized and are disclosed by way of notes to the financial statements when there is a possible obligation
arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the Company or when there is a present obligation that arises from past events where it is either not
probable that an outflow of resources will be required to settle the same or a reliable estimate of the amount in this respect cannot be made.

When there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure
for contingent liability is made.

Contingent assets are not recognised but disclosed by way of notes in the financial statements when an inflow of economic benefits is
probable.

3.12 Employee Benefits

Employee benefits are accrued in the year in which services are rendered by the employee.

Short Term Benefits

Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the related services are provided.
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within twelve months after the
end of the period in which the employees render the related service are recognized in respect of employees'' services up to the end of the
reporting period.

Other Long Term Employee Benefits

The cost of providing long term employee benefits consisting of leave encashment that are not expected to be settled wholly within twelve
months are measured as the present value of the expected future payments to be made in respect of services provided by employees up to
the end of the reporting period using the projected unit credit method. The benefits are discounted using the government securities (G-Sec)
at the end of the reporting period that have terms approximating to the terms of related obligation. Actuarial gains and losses and past
service cost are recognised immediately in the Statement of Profit and Loss for the period in which they occur. Long term employee benefit
obligation recognised in the Balance Sheet represents the present value of related obligation.

Post Employment Benefits

The Company operates the following post employment schemes:

- Defined Benefit Plans

The liability or asset recognized in the Balance Sheet in respect of defined benefit plans is the present value of the defined benefit obligation
at the end of the reporting period less the fair value of plan assets. The Company''s net obligation in respect of defined benefit plans is
calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods.
The defined benefit obligation is calculated annually by Actuaries using the projected unit credit method.

The liability recognized for defined benefit plans is the present value of the defined benefit obligation at the reporting date less the fair
value of plan assets, together with adjustments for unrecognized actuarial gains or losses and past service costs. The net interest cost is
calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. The benefits
are discounted using the government securities (G-Sec) at the end of the reporting period that have terms approximating to the terms of
related obligation.

Remeasurements of the net defined benefit obligation, which comprise actuarial gains and losses, the return on plan assets (excluding
interest) and the effect of the asset ceiling, are recognized in other comprehensive income. Remeasurement recognized in other
comprehensive income is reflected immediately in retained earnings and will not be reclassified to the Statement of Profit and Loss.

- Defined Contribution Plan

Defined contribution plans such as provident fund etc. are charged to the statement of profit and loss as and when incurred. Contribution
to Superannuation fund and National Pension Scheme, a defined contribution plan is made in accordance with the company''s policy and is
recognised in the Statement of Profit and Loss.

3.13 Operating and Other Income

i. Revenue from Sale of Products

Revenue from contracts with customers is accounted for only when it has commercial substance, and all the following criteria are met:

(i) parties to the contract have approved the contract and are committed to perform their respective obligations;

(ii) each party''s rights regarding the goods or services to be transferred and payment terms there against can be identified; and

(iii) consideration in exchange for the goods or service to be transferred is collectible and determinable.

Revenue from contract with customers is recognized on satisfaction of performance obligation, when control over the goods or services has
been transferred and/or goods/ services are delivered/ provided to the customer. Delivery occurs when the goods have been shipped or
delivered to a specific location, and the customer has either accepted the goods under the contract or the company has sufficient evidence
that all the criteria for acceptance have been satisfied.

Revenue is measured at the amount of transaction price (consideration specified with the customers) allocated to that performance
obligation. The transaction price of goods sold is net of variable consideration on account of rebates, claims and discounts, returns, Goods
and Service Tax (GST) and such other taxes collected on behalf of third party not being economic benefits flowing to the company are
excluded from revenue. Accumulated experience is used to estimate and provide for the discounts/ right of return, using the expected value

method.

A refund liability is recognized for expected returns in relation to sales made and corresponding assets are recognized for the products
expected to be returned.

The company recognises as an asset, the incremental costs of obtaining a contract with a customer, if the company expects to recover those
costs. The said asset is amortised on a systematic basis consistent with the transfer of goods or services to the customer.

ii. Interest, Dividend and Claims

Dividend income is recognized when the right to receive payment is established. Interest has been accounted using effective interest
rate method. Insurance claims/ other claims are accounted as and when admitted / settled.

iii. Export Benefits

Export incentives are accounted for in the year of export if the entitlements and realisibility thereof can be estimated with reasonable
accuracy and conditions precedent to such benefit is fulfilled.

3.14 Borrowing Costs

Borrowing cost comprises of interest and other costs incurred in connection with the borrowing of the funds. All borrowing costs general or
specific are recognized in the Statement of Profit and Loss using the effective interest method except to the extent attributable to qualifying
Property, Plant and Equipment (PPE) which are capitalized to the cost of the related assets. A qualifying PPE is an asset, that necessarily
takes a substantial period of time to get ready for its intended use or sale. Borrowing cost also includes exchange differences to the extent
considered as an adjustment to the borrowing costs.

3.15 Non-current assets (or disposal groups) held for sale

Non-current assets held for sale are presented separately in the balance sheet when the following criteria are met:

- the Company is committed to selling the asset;

- the assets are available for sale immediately;

- an active plan of sale has commenced; and

- Sale is expected to be completed within 12 months.

Assets held for sale and disposal groups are measured at the lower of their carrying amount and fair value less cost to sell. Assets held for
sale are no longer amortised or depreciated.

Non-current asset classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities of a Non¬
current asset classified as held for sale are presented separately from other liabilities in the balance sheet.

3.16 Government Grants

Government grants are recognized on systematic basis when there is reasonable certainty of realization of the same. Revenue grants
including subsidy/rebates are credited to the Statement of Profit and Loss Account under "Other Operating Income” or deducted from the
related expenses for the period to which these are related. Grants which are meant for purchase, construction or otherwise acquire non
current assets are recognized as Deferred Income and disclosed under Non Current Liabilities and transferred to the Statement of Profit
and Loss on a systematic basis over the useful life of the respective asset. Grants relating to non-depreciable assets is transferred to the
Statement of Profit and Loss over the periods as specified for meeting the obligations related to such grants.

3.17 Taxes on Income

Income tax expense representing the sum of current tax expenses and the net charge of the deferred taxes is recognized in the Statement
of Profit and Loss except to the extent that it relates to items recognized directly in equity or other comprehensive income.

Current income tax is provided on the taxable income and recognized at the amount expected to be paid to or recovered from the tax
authorities, using the tax rates and tax laws that have been enacted by the end of the reporting period.

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the Financial Statements
and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable
temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable
that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset related current tax assets against current tax

liabilities and when these relate to the same taxation authority. Current tax assets and tax liabilities are offset where the Company has a legally
enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the
asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and adjusted to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be utilized.

Deferred tax items in correlation to the underline transactions relating to Other Comprehensive Income and Equity are recognised in Other
Comprehensive Income and Equity respectively.

3.18 Earnings Per Share

Basic earnings per share are computed by dividing the net profit/(loss) attributable to the equity holders of the company by the weighted
average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit
attributable to the equity holders of the company by the weighted average number of equity shares considered for deriving basic earnings
per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential
equity shares.

3.19 Segment Reporting

Operating segments are identified and reported taking into account the different risk and return, organisation structure and in a manner
consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM). CODM is responsible for allocating resources
and assessing performance of the operating segments, financial results, forecasts or plan for the segment and accordingly is identified as the
chief operating decision maker.

The Company has identified one reportable segment "Pipes and Fittings” being primary segment and all other activities revolve around the
main business based on the information reviewed by the CODM.

4. Critical accounting judgments, assumptions and key sources of estimation and uncertainty

The preparation of the financial statements in conformity with the measurement principle of Ind AS requires management to make estimates,
judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts
of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues
and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates.
Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Differences
between the actual results and estimates are recognized in the year in which the results are known / materialized and, if material, their effects are
disclosed in the notes to the financial statements.

Application of accounting policies that require significant areas of estimation, uncertainty and critical judgments and the use of assumptions in
the financial statements that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the
next financial year are discussed below. The notes dealt with in 4.1 to 4.8 below provide an overview of the areas that involved a high degree of
judgement or complexity and of items which are likely to be materially adjusted due to estimates and assumptions turning out to be different than
those originally assessed. Detailed information about each of these estimates and judgements are included in the relevant notes together with
information about basis of calculation of each affected line item in the financial statements.

4.1 Depreciation / amortization and impairment on Property, Plant and Equipment / intangible assets/ ROU

Property, Plant and Equipment and Intangible Assets are depreciated/ amortised on straight-line /written down value basis over the
estimated useful lives in accordance with Schedule II of the Companies Act, 2013 or as estimated by the management, taking into account
the estimated residual value, wherever applicable. ROU are depreciated on a straight line basis over the shorter of the lease term and useful
life of the underlying asset. The Company reviews the estimated useful lives of the assets regularly in order to determine the amount of
depreciation / amortization and amount of impairment if any to be recorded during any reporting period. This reassessment may result in
variation in the amount of depreciation and amortisation in future period.

The company reviews carrying value of Tangible/ Intangible and ROU Assets whenever there is objective evidence that the assets are
impaired. In such situation Assets'' recoverable amount is estimated which is higher of asset''s or cash generating units (CGU) fair value less
cost of disposal and its value in use. In assessing value in use the estimated future cash flows are discounted using pre-tax discount rate
which reflect the current assessment of time value of money. In determining fair value less cost of disposal, recent market realisations are

considered or otherwise in absence of such transactions appropriate valuations are adopted. Accordingly, these assets have been carried
forward at their respective carrying value and no provision on account of impairment thereagainst as such have been considered necessary.

4.2 Impairment of Investments in Subsidiaries and Joint Ventures

The company reviews its carrying value of investments in Subsidiaries and Joint Venture carried at cost/ deemed cost (net of impairment if
any) annually or more frequently when there is an indication for impairment. If the recoverable amount is less than its carrying amount the
impairment loss is accounted for in the Statement of Profit and Loss. Accordingly, no further provision on account of impairment have been
considered in these financial statement.

4.3 Right-of-use assets and lease liability

Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or
terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on
a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be
exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the
lease term, costs relating to the termination of the lease and the importance of the underlying asset to the company''s operations taking into
account among other thing, the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods
is reassessed to ensure that the lease term reflects the current economic circumstances.

4.4 Claims and Compensation

Claims including insurance claims / arbitration claim are accounted for on determination of certainty of realisation thereof. Compensation
receivable against coal mine (refer note no. 49) pending final acceptance or settlement thereof has not been given effect to, as the amount
expected to be realised in this respect as dealt in the said note has not been considered to be less than the carrying amount of the relevant
assets and other recoverables. In respect of certain other claims as dealt with in note no. 52(ii), compensation already awarded in respect of
such claims are disputed and matters are pending before the judicial authorities or the time limit for appeal before the authorities has not
expired. Pending final decision on these matters, these have been disclosed as Contingent Assets as at the end of the reporting period.

4.5 Impairment allowances on trade receivables

The Company evaluates whether there is any objective evidence that trade receivables are impaired and determines the amount of
impairment allowance as a result of the inability of the customers to make required payments. The Company bases the estimates on the
ageing of the trade receivables balance, credit-worthiness of the trade receivables and historical write-off experience. In case of variation in
financial condition the amount of impairment as recognised may vary having a significant impact on the Financial Statement.

4.6 Income taxes

Significant judgment is required in determination of taxability of certain income and deductibility of certain expenses during the estimation
of the provision for income taxes. Also there are matters pending before various judicial authorities outcome whereof are uncertain. Further,
material judgement and assumptions are involved for arriving at timing differences and consequential adjustments on account of deferred
taxation are given effect to wherever there are uncertainties leading to the variations in earlier assumptions.

4.7 Defined benefit obligation (DBO)

The present value of the defined benefit obligations and long term employee benefits depends on a number of factors that are determined
on an actuarial basis using a number of assumptions. An actuarial valuation critical estimate of the DBO involves a number of critical
underlying assumptions such as standard rates of inflation, mortality, discount rate, anticipation of future salary increases etc. as estimated
by Independent Actuary appointed for this purpose by the Management. Variation in these assumptions may significantly impact the DBO
amount and the annual defined benefit expenses.

4.8 Provisions and Contingencies

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from
past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the
liability requires the application of judgement to existing facts and circumstances, which can be subject to change.

Management judgment is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/litigations/
against the Company as it is not possible to predict the outcome of pending matters with accuracy.

The carrying amounts of provisions and liabilities and estimation for contingencies are reviewed regularly and revised to consider changing
facts and circumstances.

Notes :

5.1 Plant and Equipments of Rs. 4,06.72 lakhs (previous year Rs. 4,07.72 lakhs) being contribution for laying the power line, the ownership of which
does not vest with the Company.

5.2 Railway Siding represents the cost of construction of the assets allowed to be used over the specified period as per the terms of the agreement.

5.3 Freehold land includes

(a) Rs. 32,49.00 lakhs (previous year Rs. 32,49.00 lakhs) pertaining to Parbatpur Coal Mine which has been vested to an another successful
bidder as dealt with in note no. 49, and also includes Rs. 3,35.81 lakhs (previous year Rs. 3,35.81 lakhs) in respect of which the execution of
conveyance deeds is pending.

(b) Rs. 2,75.27 lakhs (previous year Rs. 2,75.27 lakhs) towards contribution in relation of Joint Venture Company "North Dhadhu Mining
Company Private Limited" (refer note no. 8.2).

5.4 Freehold land includes Rs. 18,89.04 lakhs (previous year Rs. 18,89.04 lakhs) acquired on merger of erstwhile Mahadev Vyapar Private Limited and
Rs. 1,96,39.06 lakhs (previous year Rs. 3,51,50.37 lakhs) on merger of erstwhile Srikalahasthi Pipes Limited (SPL) pending execution of the deeds
in favour of the company.

5.5 Freehold land includes land amounting to Rs. 2,94,93.58 lakhs (previous year Rs. 2,94,93.58 lakhs) situated at Elavur plant of the Company and are
mortgaged in the favour of lender to ESL Steel Limited, an erstwhile associate of the Company. (Also refer note no. 9.1)

6.1 Right to use under WIS represents cost incurred in connection with wagon procured under "Wagon investment Scheme" (WIS) and handed over
to the railway authorities for their normal operations and ensuring the availability of the wagons on priority for transportation etc. as and when
required.

The company being deprived of the availability of the wagons as per the WIS had terminated the agreement with South Eastern Railway (SER) and
lodged a claim of Rs. 2,32,44.82 lakhs for compensation in this respect. Arbitration award pursuant to the claim for compensation amounting to
Rs. 2,52,85.27 lakhs (including interest) has been allowed in favour of the Company. Meanwhile, the company filed an application for execution
of the balance amount due/payable by SER under the award against which subsequently on June 27, 2024, the Hon''ble Calcutta High Court
has directed SER to deposit additional sum of Rs. 60,00.00 lakhs against interest accrued till June 20, 2024. SER objected to the said award and
the matter is currently pending before the Hon''ble Calcutta High Court. Pending decision of the Hon''ble Court, Rs. 3,12,85.27 lakhs as decided
including interest as stated above has been deposited by SER. The company on submission of the Bank Guarantee has withdrawn Rs. 3,10,32.42
lakhs (net of Rs. 2,52.85 lakhs on account of commission and other charges) which has been deposited in fixed deposit with bank (refer note no.
10.1) and equivalent amount towards liability, if any arising on account of the guarantee issued has been recognised (refer note no. 24) in these
financial statements.

8.1 The Company has acquired 99.11% of the equity shares of Singardo International Pte Limited ("Singardo") at a consideration of SGD 64,42,450
and remitted the entire consideration equivalent to Rs 41,48.97 lakhs on October 7, 2024. The company holds 0.89% of equity shares in
Singardo and on transfer of the equity shares acquired as above in favour of the company, Singardo with effect from October 22, 2024 i.e. the
date of transfer has become a wholly owned subsidiary of the company. On Singardo, becoming the wholly owned subsidiary, the company in
accordance with the policy being followed has designated it to be measured at cost. Accordingly, the amount lying in the Other Comprehensive
Income (net of tax) amounting to Rs. 22.55 lakhs has been transferred to retained earning.

8.2 (a) The North Dhadhu Coal Block located in the state of Jharkhand was allocated to the Company, Amalgam Steel & Power Limited (''ASPL''),

Jharkhand Ispat Private Limited (''JPL'') and Pawanjay Steel & Power Limited (''PSPL'') (collectively referred to as ''venturers'') for working
through North Dhadhu Mining Company Private Limited (''NDMCPL''), a joint venture company. The Company has joint control (proportion
of ownership interest of the Company being 48.98%) along with other venturers represented by investment of Rs. 8,22.81 lakhs in equity
shares of NDMCPL.

(b) Pursuant to the Order dated September 24, 2014 issued by the Hon''ble Supreme Court of India (''the Order'') followed by the Ordinance
promulgated by the Government of India, Ministry of Law & Justice (''legislative department'') dated October 21, 2014 (''Ordinance'') for
implementing the Order, The Ministry of Coal, Government of India had issued an order for de-allocation of North Dhadhu Coal Block.

*figures below rounding off limit

9.1 (a) The Company holds 19796000 equity shares (previous year 19796000 equity shares) of Rs. 10 each in ESL Steel Limited (''ESL'') out of which

17334999 equity shares (previous year 17334999 equity share) of Rs. 10 each amounting to Rs. 43,11.21 lakhs were pledged with the
consortium of lenders of ESL (''lenders''). The notices issued by the lenders for invocation of pledge of company''s investment was set aside
by the Hon''ble High Court at Calcutta in earlier year and the company''s plea for release of such pledge is pending before the said High
Court.

(b) Further, in earlier years, certain land amounting to Rs. 2,94,93.58 lakhs (previous year Rs. 2,94,93.58 lakhs) of the company, situated at Elavur,
Tamil Nadu were mortgaged to another lender SREI Infrastructure Finance Limited (''SREI'') of ESL and SREI had subsequently assigned it''s
right in the said property to an Asset Reconstruction Company (''ARC'') although the claims of the said lender were fully discharged by
ESL as per the Resolution Plan approved by Hon''ble National Company Law Tribunal (''NCLT''), Kolkata. Subsequently, the ARC had issued
SARAFESI Notice and taken the symbolic possession of the said land. The Company had disputed the alleged assignment of the loan by
the lender and as directed by the Hon''ble Supreme Court had filed an application before the Debt Recovery Tribunal (''DRT''), Chennai for
setting aside the SARAFESI actions and release of the title deeds of the land which vide order dated April 08, 2022 (uploaded on April 27,
2022) had been dismissed by DRT. On filing the appeal before the Debt Recovery Appellate Tribunal (''DRAT'') against the order of DRT, DRAT
has directed the Company to deposit 50% of the SARAFESI demand i.e. Rs. 2,93,55.04 lakhs (previous year Rs. 2,93,55.04 lakhs) against
which revision application under Article 227 of the Indian Constitution and a Writ Application under Article 226 of Indian Constitution has
been filed before Hon''ble Madras High Court and the matter is pending before the said court.

Earlier, the ARC had also filed an application before the Hon''ble NCLT, Cuttack for initiation of Corporate Insolvency and Resolution Process
(''CIRP'') against the Company which had been decided in the favour of the Company vide NCLT order dated June 24, 2022 (''the Order''). The
said order on being challenged by ARC has been upheld by NCLAT vide it''s order dated January 24, 2024 and thereby the order dismissing
the application of ARC by NCLT as above stands valid and effective. The judgement of NCLAT has been challenged by the ARC before
Hon''ble Supreme Court of India which is yet to be decided by the said court.

(c) Pending finalization of the matters as per (a) and (b) above, the assets have been carried forward at their book value.

20.1 The Company has only one class of shares referred to as equity shares having a par value of Re. 1/-. Each holder of equity shares is entitled to one
vote per share. 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 of their shareholding.

20.2 The company had allotted 2579344 warrants convertible into or exchangeable for 1 (one) fully paid up equity shares of the company having
face value of Re. 1 each on preferential basis to Promoter/Promoter Group on December 27, 2022. On receipt of the entire consideration in this
respect and on exercise of the conversion entitlement pursuant to the warrants issued earlier, 23579344 Equity Shares of Re. 1 each have been
allotted at the issue price of Rs. 42.41 each on January 24, 2024 to the warrant holders (Promoters/ Promoter Groups) thereof as on that date.
Accordingly, Rs. 2,35.79 lakhs being the face value of the Equity Shares has been credited to Equity Share Capital and balance Rs. 97,64.21 lakhs
was transferred in the previous year to Securities Premium.

21.1 Capital Reserve

The reserve was created on account of forfeiture of warrants convertible into equity shares.

21.2 Capital Reserve on Amalgamation

Capital Reserve on Amalgamation represent the excess of consideration paid i.e. equity shares issued with respect to net assets and
reserves acquired consequent to amalgamation of erstwhile Mahadev Vyapaar Private Limited and Srikalahasthi Pipes Limited amounting to
(Rs. 14,86.46 lakhs) and (Rs. 4,25,39.34 lakhs) respectively.

21.3 Securities Premium

Securities Premium Reserve represents the amount received in excess of par value of securities and is available for utilisation as specified under
Section 52 of Companies Act, 2013.

21.4 General Reserve

General Reserve is a free reserve which is created by transfer of profit from retained earnings. As the Reserve is created by a transfer from one
component to another, it is not an item of OCI. Item included in General Reserve is not reclassified subsequently to Statement of Profit and
Loss.

21.5 Retained Earnings

Retained earnings generally represents the accumulated undistributed surplus earnings of the company. This includes Rs. 12,66,79.28 lakhs
(previous year Rs. 11,85,80.02 lakhs) represented by changes in carrying amount of Property, Plant and Equipments being measured at fair value
as on the date of transition as deemed cost. Further unrealised loss of Rs. 9,84,10.67 lakhs (previous year Rs. 9,84,10.67 lakhs) due to changes in
carrying amount of investment has also been adjusted to the retained earning. Thereby Rs. 2,82,68.61 lakhs (previous year Rs. 2,01,69.35 lakhs)
being represented by changes in carrying value of assets in terms of provisions of Companies Act 2013 is not available for distribution. This
also includes other comprehensive income of (Rs. 2,43.19 lakhs) (previous year (Rs. 1,54.66 lakhs)) relating to remeasurement of defined benefit
plans (net of tax) which cannot be reclassified to statement of profit and loss.

21.6 Other Comprehensive Income

Other Comprehensive Income (OCI) represent the balance in equity for items to be accounted under OCI and comprises of the following:

i) Items that will not be reclassified to Profit and Loss

a. The company has elected to recognise changes in the fair value of non-current investments in equity (other than in subsidiaries and joint
ventures) in OCI. This reserve represents the cumulative gains and losses arising on equity instruments being measured at fair value. The
company transfers amounts from this reserve to retained earnings when the relevant equity securities are disposed.

b. This also includes actuarial gains and losses arising on defined benefit obligations recognised in OCI which is transferred to retained
earning as stated in note no. 21.5

21.7 Subsequent to the Balance Sheet date, the Board of Directors at its meeting held on May 10, 2025 has recommended a final dividend of Rs. 1.40
per equity share to be paid on fully paid up equity shares in respect of financial year ended March 31, 2025. The equity dividend is subject to
approval by the shareholders at the ensuing Annual General Meeting and has not been included as a liability in these financial statement. The
estimated amount of final dividend to be paid thereof amounts to Rs. 86,54.58 lakhs.

22.1.2 Rupee Term Loan of Rs. 50,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant
and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit
and Freehold Land at Haldia. The outstanding as on March 31, 2025 is Rs. 14,74.07 lakhs (previous year Rs. 14,74.07 lakhs) and is repayable in 6
equal quarterly installments starting from April 2025.

22.1.3 Rupee Term Loan of Rs. 60,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant
and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit
and Freehold Land at Haldia. The outstanding as on March 31,2025 is Rs. 23,73.90 lakhs (previous year Rs. 23,73.90 lakhs) and is repayable in 19
structured monthly installments starting from April 2025.

22.1.4 Rupee Term Loan of Rs. 2,98,50.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant
and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit
and Freehold Land at Haldia. The outstanding as on March 31,2025 is Rs. 1,89,04.00 lakhs (previous year Rs. 2,74,23.00 lakhs) and is repayable
in 12 structured quarterly installments starting from June 2025.

22.1.5 Rupee Term Loan of Rs. 75,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant
and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit
and Freehold Land at Haldia. The outstanding as on March 31, 2025 is Rs. 18,79.88 lakhs (previous year Rs. 33,60.83 lakhs) and is repayable in 5
equal quarterly installments starting from June 2025.

22.1.6 Rupee Term Loan of Rs. 45,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant
and Equipment, both present and future, of the Company located at Srikalahasthi unit. The outstanding as on March 31, 2025 is Rs. 12,89.99
lakhs (previous year Rs. 25,77.11 lakhs) and is repayable in 4 structured quarterly installments starting from May 2025.

22.1.7 Rupee Term Loan of Rs. 2,00,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant
and Equipment and other intangible assets, both present and future, of the Company located at Srikalahasthi unit. The outstanding as on March
31,2025 is Rs. 98,88.73 lakhs (previous year Rs. 98,88.73 lakhs) and is repayable in 12 structured quarterly installments starting from June 2025.

22.1.8 Rupee Term Loan of Rs. 1,20,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant
and Equipment, both present and future, of the Company located at Srikalahasthi unit. The outstanding as on March 31, 2025 is Rs. 19,17.07
lakhs (previous year Rs. 23,96.34 lakhs) and is repayable in 16 equal quarterly installments starting from June 2025.

22.2 The interest rate for the above loans ranges from 7.60% to 8.30%. p.a.

22.3 The outstanding balances disclosed in note 22.1 are based on the amortised cost in accordance with Ind AS 109 "Financial Instruments".

22.4 There are no registration/satisfaction of charges pending with Registrar of Companies beyond the statutory period as on the Balance Sheet

date.

24.1 The company started construction of a private siding at Durgachak near Haldia in 2007 which was completed in 2009. However, the
commissioning of the siding was withheld by the Railways thereby jeopardising company''s investment of Rs. 40,96.00 lakhs in the project.
South Eastern Railways (SER) had withdrawn all permissions against the siding and raised demand of Rs. 3,25.00 lakhs towards Land Licensing
Fees and liquidated damages for the period from 2012-13 till April 28, 2017 and being aggrieved by said decision of SER, the company had
filed an application before the Hon''ble Calcutta High Court for appointment of a Sole Arbitrator and by order dated July 01, 2019, the court
appointed Sole Arbitrator in the matter.

The company had submitted its final claim before the Tribunal for refund of costs incurred for the siding and excess Land Licensing fees paid
by it, alongwith compensation for loss of business etc. and interest till realization of the dues. The arbitration award allowing the claim of Rs.
2,28,00.02 lakhs was granted on January 03, 2024 in favour of the company including the amendment thereto made by supplementary award
dated February 16, 2024. During the year, the company has filed an application for execution of award before the single bench of Hon''ble
Calcutta High Court wherein the Court has directed SER to deposit Rs. 2,48,96.87 lakhs (inclusive of further interest @18% p.a. for the period
from January 05, 2024 to July 09, 2024) with the Court''s Registrar. The said amount has subsequently been deposited by SER alongwith two
applications for setting aside of the arbitral award and for stay of operation of the arbitral award before the single bench of Hon''ble Calcutta
High Court, which is pending for hearing as on this date. Pending this, the company on submission of the Bank Guarantee has withdrawn Rs.
2,48,96.87 lakhs which has been deposited in fixed deposit with bank (refer note no. 10.1) and an equivalent amount towards liability, if any
arising on account of the guarantee issued has been recognised in these financial statements. Adjustment with respect to amount of claim
(refer note 52(ii)(c)) will be given effect to on determination thereof upon final decision on the matter.

28.1 (a) Includes Rs. 9,92.53 lakhs (net) (previous year Rs. 9,92.53 lakhs (net)) being interest received in earlier years in respect of the refund granted

pertaining to Assessment Years 2008-09 to 2015-16, pending decision by Hon''ble High Court at Calcutta pertaining to the grounds
contested by the Income Tax Department against the favourable orders of the Income Tax Appellate Tribunal, Kolkata.

(b) Pursuant to the decision of the Hon''ble High Court at Calcutta in respect of the appeals filed by the Income Tax Department, provision
for income tax amounting to Rs. 36,47.00 lakh being no longer required had been written back during the previous year ended March 31,
2024 pertaining to certain issues relating to assessment years from 2003-04 to 2016-17 decided in favour of the company. Further, interest
(net) on completion of the assessment and/or resolution of the disputed matter had been recognised as Interest Income and included
under Other Income in note no. 36 in the Statement of Profit and Loss during the previous year ended March 31,2024.

(iii) The amounts receivable from customers become due after the expiry of credit period which on an average is ranging between 90 to 270 days.

(iv) Majority of the Company''s sales are against advance or are against letters of credit/ cash against documents/ guarantees of banks of national
standing. Where sales are made on credit, the amount of consideration does not contain any significant financing component. As per the terms
of the contract with its customers, either all performance obligations are to be completed within one year from the date of such contracts or
the Company has a right to receive the consideration. Accordingly, the Company has availed the practical expedient in terms of Ind AS 115 and
disclosures with respect to performance obligations remaining unsatisfied (or partially unsatisfied) at the balance sheet date have not been
made.

b) Fair Valuation Techniques

The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date.

The following methods and assumptions were used to estimate the fair values:

1. The fair value of cash and cash equivalents, current trade receivables and payables, current loans, current financial liabilities and assets and
borrowings approximate their carrying amount largely due to the short-term nature of these instruments. The management considers that the
carrying amounts of financial assets and financial liabilities recognised at nominal cost/amortised cost in the financial statements approximate
their fair values. In respect of non current trade receivables and loans, fair value is determined by using discount rates that reflect the present
borrowing rate of the company.

2. A substantial portion of the company''s long-term debt has been contracted at floating rates of interest, which are reset at short intervals. Fair
value of variable interest rate borrowings approximates their carrying value subject to adjustments made for transaction cost. In respect of fixed
interest rate borrowings, fair value is determined by using discount rates that reflects the present prevailing rates for similar borrowing in the
market.

3. Investments (other than Investments in Joint Venture and Subsidiaries) traded in active market are determined by reference to the quotes from
the Stock exchanges as at the reporting date. Investment in liquid and short term mutual fund/Alternate Investment Funds, which are classified
as Fair value through Profit and Loss are measured using quoted net assets value at the reporting date and in case of debentures, bonds and
government securities, the net present value at current yield to maturity have been considered. Unquoted investments in shares have been
valued based on the historical net asset value as per the latest audited financial statements.

4. The fair value of derivative financial instruments is determined based on observable market inputs including currency spot and forward rates,
yield curves, currency volatility etc. The said valuation has been carried out by the counter party with whom the contract has been entered with
and management has evaluated the credit and non-performance risks associated with the counterparties and believes them to be insignificant
and not requiring any credit adjustments.

(c) Fair value hierarchy

1. The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at balance sheet date:

2. During the year ended March 31,2025 and March 31,2024, there were no transfers between Level 1, Level 2 and Level 3 except for investment
in Singardo International Pte. Limited as for reasons stated in note no. 8.1.

3. The Inputs used in fair valuation measurement are as follows:

i) Fair valuation of Financial assets and liabilities not within the operating cycle of the company is amortised based on the borrowing rate of
the company.

ii) Derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are
directly or indirectly observable in the marketplace. The inputs used for forward contracts are Forward foreign currency exchange rates
and Interest rates to discount future cash flow.

iii) Unquoted investments in equity shares have been valued based on the amount available to shareholder''s as per the latest audited financial
statements wherever available. In case of AIF and Debentures these are based on valuation provided by external agencies.

(d) Derivatives financial assets and liabilities:

The Company follows established risk management policies, including the use of derivatives to hedge its exposure to foreign currency
fluctuations on foreign currency assets / liabilities. The counter party in these derivative instruments is a bank and the Company considers the
risks of non-performance by the counterparty as non-material.

(e) Sale of Financial Assets

In the normal course of business, the Company transfers its bill receivables to banks by way of discounting from them. Under the terms of the
agreements, the Company surrenders control over the financial assets and the transfer is with recourse. Under arrangement with recourse, the
company is obligated to repurchase the uncollected financial assets, subject to limits specified in the agreement with banks. Accordingly, in
such cases the amount transferred are recorded as borrowings in the statement of financial position and cash flows from financing activities. As
at March 31,2025 and March 31,2024 the maximum amount of recourse obligation in respect of financial assets are Rs 4,63,77.11 lakhs and Rs.
5,03,36.40 lakhs respectively.

(f) Financial Risk Management

The Company''s activities are exposed to variety of financial risks. The key financial risks includes market risk, credit risk and liquidity risk.
The Company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial
performance. The Board of Directors reviews and approves policies for managing these risks. The risks are governed by appropriate policies
and procedures and accordingly financial risks are identified, measured and managed in accordance with the Company''s policies and risk
objectives.

1. Market Risk

Market risk is the risk or uncertainty arising from possible market fluctuations resulting in variation in the fair value of future cash flows of
a financial instrument. The major components of Market risks are currency risk, interest rate risk, commodity price risk and other price risk.
Financial instruments affected by market risk includes trade receivables, borrowings, investments in fixed deposit/ Mutual Funds/ Bonds/
Alternative Investment funds and trade and other payables.

i) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange
rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s foreign currency
denominated borrowings, trade receivables and trade or other payables.

In order to mitigate forex losses, the Company over and above the natural hedge available against foreign currency transactions has
adopted a comprehensive risk management review system wherein it actively hedges its foreign exchange exposures within defined
parameters through use of hedging instruments such as forward contracts, options and swaps. The Company periodically reviews its risk
management initiatives and also takes experts advice on regular basis on hedging strategy.

The carrying amount of various exposures to foreign currency as at the end of the reporting period are as follows:

ii) Interest rate risk

The company''s exposure in market risk relating to change in interest rate primarily arises from floating rate borrowing with banks and
financial institutions. Considering the same, the carrying amount of said borrowing was considered to be at fair value. Borrowings at
fixed interest rate exposes the company to the fair value interest rate risk. The company maintains a portfolio mix of fixed and floating
rate borrowings. As at March 31,2025, approximately 77.82% (previous year 74.28%) of the company''s borrowings are at fixed rate and
these being short term borrowings, exposure to interest rate risk becomes minimal.

Further there are deposits with banks which are for short term period are exposed to interest rate risk, falling due for renewal. These
deposits are however generally for trade purposes as such do not cause material implication. Additionally, the company has certain fixed
deposit created in respect of amount withdrawn against claim as dealt within note no. 10.1 which are periodically renewed till the final
settlement.

With all other variables held constant, the following table demonstrates the sensitivity of the finance cost on floating rate portion of
loans and borrowings.

iii) Commodity Risk

The company''s revenue is exposed to the market risk of price fluctuation related to sale of products which is generally determined by
market forces. These prices may be influenced by factors such as supply and demand, production costs (including cost of raw material
inputs) and global and regional economic conditions and growth. Adverse changes in any of these factors may reduce the revenue of the
company. The company is also subject to fluctuation in prices of iron ore, coking coal, Ferro alloys, zinc and other raw material inputs.

The company aims to sell the products at prevailing market prices. Similarly, the company procures key raw material based on prevailing
market rates. However, these contracts with the customers generally with a delivery period of 90-180 days, results in the mismatch of cost
and sales realisation. Further the lead time for procurement of imported material consisting of coal and other ferrous products also have
an impact on profitablity.

iv) Other price risk

The Company''s equity exposure in Subsidiaries and Joint Ventures are carried at cost or deemed cost and these are subject to impairment
testing as per the policy followed in this respect. The company''s current investments are fair valued through profit and loss and non
current investment at fair value through OCI. The company invests in mutual fund schemes, AIF and Debentures of leading fund houses.
Such investments are susceptible to market price risk that arise mainly from changes in interest rate which may impact return and value of
such investments. However, given the relatively short tenure of underlying portfolio in which the company has invested, such price risk is
not significant.

2. Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial
loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables). Majority of the Company''s sales are
against advance or are against letters of credit/ cash against documents/ guarantees of banks of national standing and thereby credit risk
is minimal. The management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Major water
infrastructure projects are Government funded or foreign aided and the risk involved in payment default is minimum with respect to these
customers. Besides, export receivables are primarily from subsidiaries and sales made by them is covered under Credit Insurance. The
Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends
and ageing of accounts receivable. Individual risk limits are set accordingly. Further, the company obtains necessary security including
letter of credits and/or bank guarantee to mitigate its credit risk.

The carrying amount of respective financial assets recognised in the financial statements, (net of impairment losses) represents the
Company''s maximum exposure to credit risk. The concentration of credit risk is limited due to the customer base being large and unrelated.
Of the trade receivables balance at the end of the year (other than subsidiaries), there are no single customer accounted for more than
10% of the accounts receivable and 10% of revenue as at March 31,2025 and March 31,2024. The company takes collateral or other credit
enhancements to secure its credit risk.

The Company extends credit to customers as per the internal credit policy. Any deviation are approved by appropriate authorities, after
due consideration of the customers credentials and financial capacity, trade practices and prevailing business and economic conditions.
The Company''s historical experience of collecting receivables and the level of default indicate that credit risk is low and generally uniform
across market. Consequently, trade receivables are considered to be a single class of financial assets. All overdue customer balances are
evaluated taking into account the age of the dues, specific credit circumstances, the track record of the customers etc. The company
computes credit loss allowance based on a matrix of historically observed default rates over the expected life of trade receivables and is
adjusted for forward-looking estimates.

Financial assets that are neither past due nor impaired

Cash and cash equivalents, investment and deposits with banks are neither past due nor impaired. Cash and cash equivalents with banks
are held with reputed and credit worthy banking institutions.

Financial assets that are past due but not impaired

Trade receivables that are past due at the end of the reporting period, no credit losses there against are expected to arise. The company
also takes advance, letter of credit and bank guarantee from its customers, which mitigates the credit risk to that extent.

3. LIQUIDITY RISK

The company determines its liquidity requirement in the short, medium and long term. This is done by drawing up cash forecast for short
term and long term needs. The company manages its liquidity risk in a manner so as to meet its normal financial obligations without any
significant delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate
cash and cash equivalent. The management has arranged for diversified funding sources and adopted a policy of managing assets with
liquidity monitoring future cashflows and liquidity on a regular basis. Surplus funds not immediately required are invested in certain
mutual funds, AIF, bonds, debentures, fixed deposits etc. which provide flexibility to liquidate. Besides, the current committed line of credit
are sufficient to meet its short to medium term fund requirement.
i) Liquidity and interest risk tables

The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment
periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which
the Company can be required to pay. The tables shows principal cash flows as at balance sheet date:

* Include Rs 1,97.30 lakhs as Prepaid Finance Charges.

---

Mar 31, 2024

5.1 Plant and Equipments of Rs. 4,07.22 lakhs (previous year Rs.4,07.72 lakhs) being contribution for laying the power line, the ownership of which does not vest with the Company.

5.2 Railway Siding represents the cost of construction of the assets allowed to be used by the Company over the specified period as per the terms of the agreement.

5.3 Freehold land includes Rs.3,35.81 lakhs (previous year Rs.3,35.81 lakhs) pertaining to Parbatpur Coal Mines for which the conveyance deeds have not been executed for the reason stated in note no. 49. Freehold land also includes Rs. 2,75.27 lakhs (previous year Rs. 2,75.27 lakhs) towards contribution in relation to the Joint Venture Company "North Dhadhu Mining Company Private Limited" (refer note no. 8.2).

5.4 Freehold land includes Rs. 18,89.04 lakhs (previous year Rs.18,89.04 lakhs) acquired on merger of erstwhile Mahadev Vyapar Private Limited and Rs.3,51,50.37 lakhs (previous year Rs.3,51,50.37 lakhs) on merger of erstwhile Srikalahasthi Pipes Limited (SPL) pending execution of the deeds in favour of the company.

5.5 Freehold land includes land amounting to Rs.2,94,93.58 lakhs (previous year Rs.2,94,93.58 lakhs) situated at Elavur plant of the Company and are mortgaged in the favour of lender to ESL Steel Limited, an erstwhile associate of the Company. (Also refer note no. 9.1)

5.6 During the previous year 1942.56 sq. mtr. of land was acquired by Union of India under the provisions of National Highways Act, 1956 and required adjustment with respect to compensation amounting to Rs. 16.24 lakhs received by the company was given effect to in the month of March 2023. The company aggrieved of the compensation granted has accepted the amount under protest and filed a petition before the Hon''ble Court of Andhra Pradesh demanding a higher compensation, which pending final determination as such, has not been recognised.

6.1 Right to use Wagon represents cost incurred in connection with wagon procured under "Wagon investment Scheme" (WIS) and handed over to the railway authorities for their normal operations and ensuring the availability of the wagons on priority for transportation etc. as and when required.

The company being deprived of the availability of the wagons as per the WIS had terminated the agreement with South Eastern Railway (SER) and lodged a claim of Rs. 2,32,44.82 lakhs for compensation in this respect. Arbitration award pursuant to the claim for compensation amounting to Rs. 2,52,85.27 lakhs (including interest) has been allowed in favour of the Company. SER objected to the said award and the matter is currently pending before the Hon''ble Calcutta High Court. Pending decision of the Hon''ble Court, Rs. 2,52,85.27 lakhs has been deposited by SER in respect of the said award. The company on submission of the Bank Guarantee has withdrawan Rs. 2,50,32.42 lakhs (net of Rs. 2,52.85 lakhs on account of comission and other charges) which has been deposited in fixed deposit with bank (refer note no. 10.1) and equivalent amount towards liability, if any arising on account of the guarantee issued has been recognised (refer note no. 25) in these financial statements.

Differential amount of Rs.2,52.85 lakhs deducted on account of commission and other charges and interest if any payable in this respect depending upon the outcome of the decision of the Hon''ble Calcutta High Court has been disclosed as contingent liabilities (refer note no. 55(i) (h)) in these financial statements. Adjustments with respect to ROU Assets as above and amount of claim (refer note no. 55(ii)(b)) will be given effect to on determination thereof upon final decision on the matter.

6.2 Refer note no 23 to financial statements in respect of charge created against borrowings.

6.3 Refer note no. 49 dealing with coal mine assets.

7.1 Refer note no 23 to financial statements in respect of charge created against borrowings.

7.2 Leasehold land includes Rs. 3,60.17 lakhs (previous year Rs.3,60.17 lakhs) acquired on merger of erstwhile Srikalahasthi Pipes Limited (SPL) pending execution of the deeds in favour of the company.

8.1 The Company had investment in Domco Private Limited (DPL), a Company incorporated in India and had joint control (proportion of ownership interest of the Company being 50%) over DPL along with other venturers (the Venturers) in terms of the Shareholder''s Agreement dated March 27, 2004 for carrying out mining of Coal at Jharkhand. The Venturers had filed a petition before the Company Law Board, Principal Bench, New Delhi (CLB) against the Company on alleged operation and mismanagement of the company inter alia on various matters including for forfeiture of the Company''s investment in equity shares of the DPL. The matter was later transferred to the Company Law Board, Kolkata Bench and was under consideration of the National Company Law Tribunal, Kolkata Bench (NCLT). The Company had also inter alia filed an arbitration proceeding under Arbitration & Conciliation Act, 1996 against recovery of the said amount against which the ventures also filed their counter claims on the company. Pursuant to a settlement arrived in respect of DPL, Investment in Equity shares of DPL amounting to Rs. 30.00 lakhs and advance of Rs. 7,00.00 lakhs given to them being no longer recoverable have been written off during the year and included under Sundry balances/ Advances/ Investment/ CWIP written off. Consequent to the said settlement Arbitration and other proceedings by or against the company have been withdrawn and DPL ceased to be a Joint Venture of the company. This, however, does not have any impact on the financial statements of the current year since impairment in value thereof was provided in earlier years and the same consequent to the write off as above, has been written back and included under other income during the year (refer note no. 37).

8.2 (a) The North Dhadhu Coal Block located in the state of Jharkhand was allocated to the Company, Amalgam Steel & Power Limited (''ASPL''),

Jharkhand Ispat Private Limited (''JPL'') and Pawanjay Steel & Power Limited (''PSPL'') (collectively referred to as ''venturers'') for working through North Dhadhu Mining Company Private Limited (''NDMCPL''), a joint venture company. The Company has joint control (proportion of ownership interest of the Company being 48.98%) along with other venturers represented by investment of Rs. 8,22.81 lakhs in equity shares of NDMCPL.

(b) In pursuance of the Order dated September 24, 2014 issued by the Hon''ble Supreme Court of India (''the Order'') followed by the Ordinance promulgated by the Government of India, Ministry of Law & Justice (''legislative department'') dated October 21, 2014 (''Ordinance'') for implementing the Order, The Ministry of Coal, Government of India had issued an order for de-allocation of North Dhadhu Coal Block. NDMCPL has submitted its claim for compensation which is awaiting acceptance. In the view of the management the compensation to be received in terms of ordinance is expected to cover the cost incurred by the Joint venture company including the cost of land as stated in note no. 5.3. However as an abundant precaution, the value of the investment amounting to Rs. 8,22.81 lakhs in Joint venture had fully been provided in earlier year and recognised as impairment thereagainst.

8.3 Particulars of investments as required in terms of section 186(4) of the Companies Act, 2013 have been disclosed under note 8, 9 and 14.

9.1 (a) The Company holds 19796000 equity shares (previous year 19796000 equity shares) of Rs. 10/- each in ESL Steel Limited (''ESL'') out of

which 17334999 equity shares (previous year 17334999 equity share) of Rs. 10/- each amounting to Rs. 52,19.57 lakhs have been pledged with the consortium of lenders of ESL (lenders). The notices issued by the lenders for invocation of pledge of company''s investment was set aside by the Hon''ble High Court at Calcutta in the earlier year and the company''s plea for release of such pledge is pending before the said High Court.

(b) Further, in earlier years, certain land amounting to Rs. 2,94,93.58 lakhs (previous year Rs. 2,94,93.58 lakhs) of the company, situated at Elavur, Tamil Naidu were mortgaged to another lender SREI Infrastructure Finance Limited (''SREI'') of ESL and SREI had subsequently assigned it''s right in the said property to an Asset Reconstruction Company (''ARC'') although the claims of the said lender were fully discharged by ESL as per the Resolution Plan approved by Hon''ble National Company Law Tribunal (''NCLT''), Kolkata. Subsequently the ARC had issued SARAFESI Notice and taken the symbolic possession of the said land. The Company had disputed the alleged assignment of the loan by the lender and as directed by the Hon''ble Supreme Court had filed an application before the Debt Recovery Tribunal (''DRT''), Chennai for setting aside the SARAFESI actions and release of the title deeds of the land which vide order dated April 08, 2022 (uploaded on April 27, 2022) had been dismissed by DRT. On filing the appeal before the Debt Recovery Appellate Tribunal (DRAT) against the order of DRT, DRAT has directed the Company to deposit 50% of the SARAFESI demand i.e. Rs. 2,93,55.04 lakhs (previous year Rs. 2,93,55.04 lakhs) against which revision application under Article 227 of the Indian Constitution and a Writ Application under Article 226 of Indian Constitution has been filed before Hon''ble Madras High Court and the matter is pending before the said court.

Earlier, the ARC had also filed an application before the Hon''ble NCLT, Cuttack for initiation of Corporate Insolvency and Resolution Process (''CIRP'') against the Company which had been decided in the favour of the Company vide NCLT order dated June 24, 2022 (''the Order''). The said order on being challenged by ARC has been upheld by NCLAT vide it''s order dated January 24, 2024 and thereby the order dismissing the application of ARC by NCLT as above stands valid and effective. The judgement of NCLAT has been challenged by the ARC before Hon''ble Supreme Court of India which is yet to be taken up by the said court.

(c) Pending finalization of the matters as per (a) and (b) above, the assets have been carried forward at their book value.

9.2 The Company has made an irrevocable decision to consider investment in equity instruments, other than in Subsidiaries and Joint ventures not held for trading (non current investments) to be recognized at FVTOCI.

14.1 The Company has invested in Debentures and AIF whereby an option has been granted to redeem/ liquidate these investments after the expiry of specified period. These being required pursuant to deployment of surplus fund of the company which may be liquidated as and when funds are required for business and other purposes and therefore have been considered under Current Investments and fair valued through profit and loss.

14.2 Subscription price of AIF has been taken to be fair value as on March 31,2024. The differential of Rs. 61.77 lakhs with respect to Net Asset Value as on March 31, 2024 in terms of the agreement has since been distributed and has therefore been disclosed under "Other Financial Assets" (refer note no. 19).

19.4 (a) Includes Rs. 46,80.58 lakhs (previous year Rs. 46,80.58 lakhs) related to claim made upto June 30, 2017 under West Bengal Incentive Scheme

(WBIS) 2000. In absence of any clarification from the Government of West Bengal regarding disbursal of incentive post implementation of GST, the company had filed a writ petition in Hon''ble High Court of Calcutta for recovery against the said claim for the period upto March 31,2015 which vide it''s order dated April 08, 2024 has been decided in favour of the company and directed to release such funds.

The company is expecting the recovery of the remaining amount for the period from April 01, 2015 onward also based on the principles and criteria profounded in terms of the said judgement of the Hon''ble High Court. In view of the above, the claim amount under WBIS being carried forward from earlier years has been considered good and recoverable.

(b) Includes Rs. 12,02.49 lakhs (previous year Rs. 12,02.49 lakhs) in respect of sales tax subsidy receivable under Andhra Pradesh Industrial Investment Promotion Policy.

21.2 The company as approved by the Shareholders vide their postal ballot resolution dated December 23, 2022 had allotted 23579344 warrants convertible into or exchangeable for 1 (one) fully paid-up equity shares of the company having face value of Re. 1 each at the issue price of Rs. 42.41 each payable in cash (''warrant issue price'') on preferential basis to Promoter/ Promoter group on December 27, 2022. The said allotment was done upon receipt of Rs. 10.60 for each warrants aggregating to Rs. 24,99.41 lakhs included under other equity being the amount equivalent to 25% of the warrant issue price as upfront contribution received by the company in this respect entitling the warrant holders to apply for and get allotted one equity shares of the company against each warrant held in one or more tranche within a maximum period of eighteen months from the date of allotment on payment of balance amount of Rs. 31.81 each equivalent to remaining 75% of the warrant issue price.

On receipt of the entire consideration in this respect and on exercise of the conversion entitlement pursuant to the warrants as stated above, 23579344 Equity Shares of Re. 1 each have been allotted on January 24, 2024 to the warrant holders (Promoters/ Promoter Groups) thereof as on that date. Accordingly, Rs. 2,35.79 lakhs being the face value of the Equity Shares has been credited to Equity Share Capital and balance Rs. 97,64.21 lakhs has been transferred to Securities Premium.

22.2 Capital Reserve on Amalgamation

Capital Reserve on Amalgamation represent the excess of consideration paid i.e. equity shares issued with respect to net assets and reserves acquired consequent to amalgamation of erstwhile Mahadev Vyapaar Private Limited and Srikalahasthi Pipes Limited amounting to (Rs. 14,86.46 lakhs) and (Rs. 4,25,39.34 lakhs) respectively.

22.3 Securities Premium

Securities Premium represents the amount received in excess of par value of securities and is available for utilisation as specified under Section 52 of Companies Act, 2013.

22.4 General Reserve

General Reserve is a free reserve which is created by transfer of profit from retained earnings. As the Reserve is created by a transfer from one component to another and is not an item of OCI, item included in General Reserve is not reclassified subsequently to Statement of Profit and Loss.

22.5 Retained Earnings

Retained earnings generally represents the accumulated undistributed surplus earnings of the company. This includes Rs. 11,85,80.02 lakhs (previous year Rs. 11,82,84.60 lakhs) represented by changes in carrying amount of Property, Plant and Equipments being measured at fair value as on the date of transition as deemed cost. Further unrealised loss of Rs. 9,84,10.67 lakhs (previous year Rs. 9,84,10.67 lakhs) due to changes in carrying amount of investment has also been adjusted to the retained earning. Thereby Rs. 2,01,69.35 lakhs (previous year Rs. 1,98,73.93 lakhs) being represented by changes in carrying value of assets in terms of provisions of Companies Act 2013 is not available for distribution. This includes other comprehensive income of (Rs. 1,54.66 lakhs) (previous year (Rs. 2,29.43 lakhs)) relating to remeasurement of defined benefit plans (net of tax) which cannot be reclassified to statement of profit and loss.

22.6 Other Comprehensive Income

Other Comprehensive Income (OCI) represent the balance in equity for items to be accounted under OCI and comprises of the following: Items that will not be reclassified to Profit and Loss

a. The company has elected to recognise changes in the fair value of non-current investments (other than in subsidiaries, associates and joint ventures) in OCI. This reserve represents the cumulative gains and losses arising on equity instruments being measured at fair value. The company transfers amounts from this reserve to retained earnings when the relevant equity securities are disposed.

b. This also includes actuarial gains and losses arising on defined benefit obligations recognised in OCI which is transferred to retained earning as stated in note no. 22.5

22.7 Subsequent to the Balance Sheet date, the Board of Directors at its meeting held on May 13, 2024 has recommended a final dividend of Re. 0.90 per equity share to be paid on fully paid up equity shares in respect of financial year ended March 31,2024. The equity dividend is subject to approval by the shareholders at the ensuing Annual General Meeting and has not been included as a liability in these financial statement. The estimated amount of final dividend to be paid thereof amounts to Rs. 55,63.66 lakhs. This is over and above the Interim Dividend of Re. 0.50 (50%) per Equity Share of face value of Re. 1 each for the financial year 2023-24 declared by the Board of Directors in their meeting held on February 08, 2024 resulting in the outflow of Rs. 30,90.93 lakhs in this respect.

23.1.1 Rupee Term Loan of Rs. 1,50,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi Unit and Freehold Land at Haldia . The outstanding as on March 31, 2024 is Rs. 22,04.74 lakhs (previous year Rs. 50,47.93 lakhs) and is repayable in 3 equal quarterly installments starting from June 2025.

23.1.2 Rupee Term Loan of Rs. 50,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The outstanding as on March 31,2024 is Rs. 14,74.07 lakhs (previous year Rs. 33,12.65 lakhs) and is repayable in 6 equal quarterly installments starting from April 2025.

23.1.3 Rupee Term Loan of Rs. 4,00,00.00 lakhs from a bank was secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The said Loan has been fully repaid during the year.

23.1.4 Rupee Term Loan of Rs. 60,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The outstanding as on March 31,2024 is Rs. 23,73.90 lakhs (previous year Rs. 51,00.92 lakhs) and is repayable in 19 structured monthly installments starting from April 2025.

23.1.5 Rupee Term Loan of Rs. 75,00.00 lakhs from a bank was secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The said Loan has been fully repaid during the year.

23.1.6 Rupee Term Loan of Rs. 50,00.00 lakhs from a bank was secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The said Loan has been fully repaid during the year.

23.1.7 Rupee Term Loan of Rs. 2,98,50.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The outstanding as on March 31, 2024 is Rs. 2,74,23.00 lakhs (previous year nil) and is repayable in 16 structured quarterly installments starting from June 2024.

23.1.8 Rupee Term Loan of Rs.75,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The outstanding as on March 31, 2024 is Rs. 33,60.83 lakhs (previous year Rs.33,60.83 lakhs) and is repayable in 9 equal quarterly installments starting from June 2024.

23.1.9 Rupee Term Loan of Rs.60,00.00 lakhs from a Bank was secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The said Loan has been fully repaid during the year.

23.1.10 Rupee Term Loan of Rs.75,00.00 lakhs from a bank was secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The said Loan has been fully repaid during the year.

23.1.11 Rupee Term Loan of Rs. 75,00.00 lakhs from a bank was secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment, both present and future, of the Company located at Srikalahasthi unit. The said Loan has been fully repaid during the year.

23.1.12 Rupee Term Loan of Rs. 1,00,00.00 lakhs from a bank was secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment, both present and future, of the Company located at Srikalahasthi unit. The said Loan has been fully repaid during the year.

23.1.13 Rupee Term Loan of Rs. 1,45,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment, both present and future, of the Company located at Srikalahasthi unit. The outstanding as on March 31, 2024 is Rs. 25,77.11 lakhs (previous year Rs. 18,61.68 lakhs) and is repayable in 8 structured quarterly installments starting from May 2024.

23.1.14 Rupee Term Loan of Rs. 2,00,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company located at Srikalahasthi unit. The outstanding as on March 31,2024 is Rs. 98,88.73 lakhs (previous year Rs. 1,77,08.25 lakhs) and is repayable in 12 structured quarterly installments starting from June 2025.

23.1.15 Rupee Term Loan of Rs. 1,20,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment, both present and future, of the Company located at Srikalahasthi unit. The outstanding as on March 31, 2024 is Rs. 23,96.34 lakhs (previous year Rs 20,27.81) and is repayable in 20 equal quarterly installments starting from June 2024.

23.2.1 Rupee Term Loan of Rs.50,00.00 lakhs from a financial institution was secured by way of first pari-passu charge on all immovable and movable

Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and

Srikalahasthi unit and Freehold Land at Haldia . The said Loan has been fully repaid during the year.

23.2.2 Rupee Term Loan of Rs.1,00,00.00 lakhs from a financial institution was secured by way of first pari-passu charge on all immovable and movable

Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and

Srikalahasthi unit and Freehold Land at Haldia. The said Loan has been fully repaid during the year.

23.2.3 Rupee Term Loan of Rs. 60,00.00 lakhs from a financial institution was secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The said Loan has been fully repaid during the year.

23.3 The interest rate for the above loans ranges from 8.05% to 9.90%. p.a.

23.4 The outstanding balances disclosed in note 23.1 to 23.2 are based on the amortised cost in accordance with Ind AS 109 "Financial Instruments".

23.5 There are no registration/satisfaction of charges pending with Registrar of Companies beyond the statutory period as on the Balance Sheet date.

24.1 Lease liability represents present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made.

26.1 Provision for Mines closure and restoration charges had been made in terms of statutory obligations specified for the purpose and Rs. 4,40.00 lakhs (cumulative value as on March 31,2024 Rs. 9,20.05 lakhs) deposited in the Escrow account in terms of the stipulation made by Ministry of Coal, for Mines Closure Plan. In view of cancellation of allotment of coal mines no further provision in this respect and accrual of interest thereagainst on fixed deposit lying in Escrow account has been considered necessary. (refer note no. 17 and 49)

29.1 (a) Includes Rs. 9,92.53 lakhs (net) (previous year Rs. 16,40.53 lakhs (net)) being interest received in respect of the refund granted pertaining to

Assessment Years 2008-09 to 2015-16 (previous years from Assessment year 2003-04 to 2015-16), pending decision by Hon''ble High Court at Calcutta in respect of the grounds contested by the Income Tax Department against the orders of the Income Tax Appellate Tribunal, Kolkata.

(b) Pursuant to the decision of the Hon''ble High Court at Calcutta in respect of the appeals filed by the Income Tax Department, provision for income tax amounting to Rs. 36,47.00 lakh being no longer required has been written back during the year pertaining to certain issues relating to assessment years from 2003-04 to 2016-17 decided in favor of the company. Further, Interest received in earlier years in this respect amounting to Rs. 6,48.00 lakhs (net) have been recognised as Interest Income and included under Other Income in note no. 37 in the Statement of Profit and Loss.

30.1 Working Capital facilities from Banks (both fund based and non fund based) are secured by first pari passu charge by way of hypothecation of current assets namely raw materials, finished goods, work in progress, consumable stores and spares, book debts/receivables and all other moveable assets of the company both present and future.

30.2 There are no registration/satisfaction of charges pending with Registrar of Companies beyond the statutory period as on the Balance Sheet date.

30.3 The quarterly returns or statement of current assets filed by the Company with banks or financial institutions are in agreement with the then unaudited books of accounts. The return or statement for quarter ended March 24 are yet to be filed.

(iii) The amounts receivable from customers become due after the expiry of credit period which on an average is ranging between 90 to 270 days.

(iv) Majority of the Company''s sales are against advance or are against letters of credit/ cash against documents/ guarantees of banks of national standing. Where sales are made on credit, the amount of consideration does not contain any significant financing component. As per the terms of the contract with its customers, either all performance obligations are to be completed within one year from the date of such contracts or the Company has a right to receive the consideration. Accordingly, the Company has availed the practical expedient in terms of Ind AS 115 and disclosures with respect to performance obligations remaining unsatisfied (or partially unsatisfied) at the balance sheet date have not been made.

b) Fair Valuation Techniques

The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The following methods and assumptions were used to estimate the fair values:

1. The fair value of cash and cash equivalents, current trade receivables and payables, current loans, current financial liabilities and assets and borrowings approximate their carrying amount largely due to the short-term nature of these instruments. The management considers that the carrying amounts of financial assets and financial liabilities recognised at nominal cost/amortised cost in the financial statements approximate their fair values. In respect of non current trade receivables and loans, fair value is determined by using discount rates that reflect the present borrowing rate of the company.

2. A substantial portion of the company''s long-term debt has been contracted at floating rates of interest, which are reset at short intervals. Fair value of variable interest rate borrowings approximates their carrying value subject to adjustments made for transaction cost. In respect of fixed interest rate borrowings, fair value is determined by using discount rates that reflects the present prevailing rates for similar borrowing in the market.

3. Investments (other than Investments in Joint Venture and Subsidiaries) traded in active market are determined by reference to the quotes from the stock exchanges as at the reporting date. Investment in liquid and short term mutual fund/Alternate Investment Funds, which are classified as Fair value through Profit and Loss are measured using quoted net assets value at the reporting date and in case of debentures, bonds and goverment securities, where the net present value at current yield to maturity have been considered. Unquoted investments in shares have been valued based on the historical net asset value as per the latest audited financial statements.

4. The fair value of derivative financial instruments is determined based on observable market inputs including currency spot and forward rates, yield curves, currency volatility etc. The said valuation has been carried out by the counter party with whom the contract has been entered with and management has evaluated the credit and non-performance risks associated with the counterparties and believes them to be insignificant and not requiring any credit adjustments.

2. During the year ended March 31,2024 and March 31,2023, there were no transfers between Level 1, Level 2 and Level 3.

3. The Inputs used in fair valuation measurement are as follows:

i) Fair valuation of Financial assets and liabilities not within the operating cycle of the company is amortised based on the borrowing rate of the company.

ii) Derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are directly or indirectly observable in the marketplace. The inputs used for forward contracts are Forward foreign currency exchange rates and Interest rates to discount future cash flow.

iii) Unquoted investments in equity shares have been valued based on the amount available to shareholder''s as per the latest audited financial statements wherever available. In case of AIF and Debentures these are based on valuation provided by external agencies.

(d) Derivatives financial assets and liabilities:

The Company follows established risk management policies, including the use of derivatives to hedge its exposure to foreign currency fluctuations on foreign currency assets / liabilities. The counter party in these derivative instruments is a bank and the Company considers the risks of non-performance by the counterparty as non-material.

(e) Sale of Financial Assets

In the normal course of business, the Company transfers its bill receivables to banks. Under the terms of the agreements, the Company surrenders control over the financial assets and the transfer is with recourse. Under arrangement with recourse, the company is obligated to repurchase the uncollected financial assets, subject to limits specified in the agreement with banks. Accordingly, in such cases the amount transferred are recorded as borrowings in the statement of financial position and cash flows from financing activities. As at March 31, 2024 and March 31, 2023 the maximum amount of recourse obligation in respect of financial assets are Rs 5,03,36.40 lakhs and Rs. 3,79,16.20 lakhs respectively.

(f) Financial Risk Management

The Company''s activities are exposed to variety of financial risks. The key financial risks includes market risk, credit risk and liquidity risk. The Company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The Board of Directors reviews and approves policies for managing these risks. The risks are governed by appropriate policies and procedures and accordingly financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives.

1. Market Risk

Market risk is the risk or uncertainty arising from possible market fluctuations resulting in variation in the fair value of future cash flows of a financial instrument. The major components of Market risks are currency risk, interest rate risk, commodity price risk and other price risk. Financial instruments affected by market risk includes trade receivables, borrowings, investments in fixed deposit/ Mutual Funds/ Bonds/ Alternative Investment funds and trade and other payables.

i) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s foreign currency denominated borrowings, trade receivables and trade or other payables.

In order to mitigate forex losses, the Company over and above the natural hedge available against foreign currency transaction has adopted a comprehensive risk management review system wherein it actively hedges its foreign exchange exposures within defined parameters through use of hedging instruments such as forward contracts, options and swaps. The Company periodically reviews its risk management initiatives and also takes experts advice on regular basis on hedging strategy.

ii) Interest rate risk

The company''s exposure in market risk relating to change in interest rate primarily arises from floating rate borrowing with banks and financial institutions. Considering the same, the carrying amount of said borrowing was considered to be at fair value. Borrowings at fixed interest rate exposes the company to the fair value interest rate risk. The company maintains a portfolio mix of fixed and floating rate borrowings. As at March 31,2024, approximately 74.28% (previous year 64.42%) of the company''s borrowings are at fixed rate.

Further there are deposits with banks which are for short term period are exposed to interest rate risk, falling due for renewal. These deposits are however generally for trade purposes as such do not cause material implication.

A decrease in 0.50 basis point in Rupee Loan would have an equal and opposite effect on the Company''s financial statements.

iii) Commodity Risk

The company''s revenue is exposed to the market risk of price fluctuation related to sale of products which is generally determined by market forces. These prices may be influenced by factors such as supply and demand, production costs (including cost of raw material inputs) and global and regional economic conditions and growth. Adverse changes in any of these factors may reduce revenue for the company. The company is subject to fluctuation in prices of iron ore, coking coal, ferro alloys, zinc and other raw material inputs.

The company aims to sell the products at prevailing market prices. Similarly the company procures key raw material based on prevailing market rates. However, these contracts with the customers generally with a delivery period of 90-180 days, results in the mismatch of cost and sales realisation.

iv) Other price risk

The Company''s equity exposure in Subsidiaries and Joint Ventures are carried at cost or deemed cost and these are subject to impairment testing as per the policy followed in this respect. The company''s current investments are fair valued through profit and loss and non current investment at fair value through OCI. The company invests in mutual fund schemes, AIF and Debentures of leading fund houses. Such investments are susceptible to market price risk that arise mainly from changes in interest rate which may impact return and value of such investments. However, given the relatively short tenure of underlying protfolio in which the company has invested, such price risk is not significant.

2. Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables). The management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Major water infrastructure projects are Government funded or foreign aided and the risk involved in payment default is minimum with respect to these customers. Besides, export receivables are primarily from subsidiaries and sales made by them is covered under Credit Insurance. The Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends and ageing of accounts receivable. Individual risk limits are set accordingly. Further the company obtains necessary security including letter of credits and/or bank guarantee to mitigate its credit risk.

The carrying amount of respective financial assets recognised in the financial statements, (net of impairment losses) represents the Company''s maximum exposure to credit risk. The concentration of credit risk is limited due to the customer base being large and unrelated. Of the trade receivables balance at the end of the year (other than subsidiaries), there are no single customer accounted for more than 10% of the accounts receivable and 10% of revenue as at March 31,2024 and March 31,2023. The company takes collateral or other credit enhancements to secure its credit risk.

The Company extends credit to customers as per the internal credit policy. Any deviation are approved by appropriate authorities, after due consideration of the customers credentials and financial capacity, trade practices and prevailing business and economic conditions. The Company''s historical experience of collecting receivables and the level of default indicate that credit risk is low and generally uniform across markets; consequently, trade receivables are considered to be a single class of financial assets. All overdue customer balances are evaluated taking into account the age of the dues, specific credit circumstances, the track record of the customers etc. The company

computes credit loss allowance based on a matrix based historically observed default rates over the expected life of trade receivables and is adjusted for forward-looking estimates.

Financial assets that are neither past due nor impaired

Cash and cash equivalents, investment and deposits with banks are neither past due nor impaired. Cash and cash equivalents with banks are held with reputed and credit worthy banking institutions.

Financial assets that are past due but not impaired

Trade receivables amounts that are past due at the end of the reporting period, no credit losses there against are expected to arise. The company also takes advance, letter of credit and bank guarantee from its customers, which mitigates the credit risk to that extent.

3. Liquidity Risk

The company determines its liquidity requirement in the short, medium and long term. This is done by drawing up cash forecast for short term and long term needs. The company manages its liquidity risk in a manner so as to meet its normal financial obligations without any significant delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate cash and cash equivalent. The management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity monitoring future cashflows and liquidity on a regular basis. Surplus funds not immediately required are invested in certain mutual funds, AIF, bonds, debentures, fixed deposits etc. which provide flexibility to liquidate. Besides, the current committed line of credit are sufficient to meet its short to medium term fund requirement.

i) Liquidity and interest risk tables

The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables shows principal cash flows as at balance sheet date:

The company has current financial assets which will be realised in ordinary course of business. The Company ensures that it has sufficient bandwith on demand to meet expected operational expenses. The company relies on mix of borrowings and operating cash flows to meet its need for funds and ensures that it does not breach any financial covenants stipulated by the lender. g) Capital Management

The primary objective of the Company''s capital management is to ensure that it maintains a healthy capital ratio in order to support its business and maximise shareholder value. The Company''s objective when managing capital is to safeguard their ability to continue as a going concern so that they can continue to provide returns for shareholders and benefits for other stake holders. The Company is focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required without affecting the risk profile of the Company.

b) Post Employment Defined Benefit Plans

Post Employment Defined Benefit Plans are managed by Life Insurance Corporation of India and ICICI Prudential Life Insurance Company Limited. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. Details of such funds are as follows:

Gratuity (Funded)

The company''s gratuity scheme, a defined plan is as per the Payment of Gratuity Act 1972, covers the eligible employees and is administered through gratuity fund trust. Such gratuity fund, whose investments are managed by Life Insurance Corporation of India and ICICI Prudential Life Insurance Company Limited an insurer makes payment to vested employees or their nominee upon retirement, death, incapacitation or cessation of employment of an amount based on the respective employee''s salary and tenure of employment. Vesting occurs on completion of five year of service. The amount of gratuity payable is the last drawn basic salary per month computed proportionately for 15 days of salary multiplied for the number of year service.

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (projected unit credit method) has been applied as when calculating the defined benefit obligation recognised within the Balance Sheet. The method and type of assumption used in preparing the sensitivity analysis did not change compared to prior period.

Risk analysis

Through its defined benefit plans, the Company is exposed to a number of risks in the defined benefit plans. Most significant risks pertaining to defined benefit plans and management''s estimation of the impact of these risks are as follows:

Investment risk

The Gratuity plan is funded with Life Insurance Corporation of India and ICICI Prudential Life Insurance Company Limited and the company does not have any liberty to manage the fund provided to them. The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to Government of India bonds. If the return on plan asset is below this rate, it will create a plan deficit.

Interest risk

A decrease in the interest rate on plan assets will increase the plan liability.

Longevity risk / Life expectancy

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and at the end of the employment. An increase in the life expectancy of the plan participants will increase the plan liability.

Salary growth risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increase in the salary of the plan participants will increase the plan liability.

49. (a) In pursuance of the Order dated September 24, 2014 issued by the Hon''ble Supreme Court of India (''the Order'') followed by the Ordinance

promulgated by the Government of India, Ministry of Law & Justice (''legislative department'') dated October 21, 2014 (''Ordinance'') for implementing the Order, allotment of Parbatpur coal block (''coal block/mines'') to the Company which was under advanced stage of implementation, had been cancelled w.e.f. April 01,2015. In terms of the Ordinance, the Company was allowed to continue the operations in the said block till March 31, 2015. Accordingly, the said block had been handed over to Bharat Coking Coal Limited (''BCCL'') as per the direction from Coal India Limited (''CIL'') with effect from April 01, 2015 and the same was thereafter allotted to Steel Authority of India Limited (''SAIL'') and pending final determination, compensation of Rs. 83,12.14 lakhs was received. The company also came to understand that SAIL subsequently handed over back the said coal block to the custody of BCCL.

Following a petition filed by the Company, the Hon''ble High Court at Delhi had pronounced its judgement on March 09, 2017. Accordingly, based on the said judgement, the Company has so far claimed Rs.15,49,44.48 lakhs towards compensation against the said coal block and acceptance of the same is awaited. The Nominated Authority appointed for deciding the amount of compensation had upheld its decision of compensation already paid which was set aside by the Hon''ble High Court with a direction to the Nominated Authority to reconsider the same. The Nominated authority further passed an order dated November 11, 2019 awarding an additional compensation of Rs. 1,80.00 lakhs and with a further direction to re-determine the value of certain assets by the appropriate authority. Subsequently, a newly appointed Nominated Authority (''New Nominated Authority'') had appointed a valuer to determine the value of those specified assets as per the direction of Nominated Authority dated November 11,2019. The company came to understand that valuation report recommending a valuation of total direct/hard cost for specified assets has been submitted to the New Nominated Authority and the same being under consideration, a final compensation is yet to be decided. The company had also earlier approached the New Nominated Authority/ Ministry of Coal (''Ministry'') to reconsider the compensation determined by the previous Nominated Authority, for land and some other major assets.

In the meantime, JSW Steel Limited (''JSW'') has been declared as successful bidder for Parbatpur Coal Block in "16th Tranche of Auction Under Coal Mines (Special Provisions) Act, 2015” and vesting order dated June 08, 2023 has been issued by the Ministry of Coal in favour of JSW. JSW as being claimed by them has taken the physical possession of said coal block and has therefore requested to initiate negotiations for utilization of movable property/ assets used in coal mining. The Company has approached Hon''ble Delhi High Court in this respect and the matter is pending as on this date. The company''s management is actively pursuing to revise and determine the amount of entire compensation for the coal block including mine infrastructure and land and all other related assets in terms of Coal Mines (Special Provisions) Act, 2015 read with judgement dated March 09, 2017 pronounced by the Hon''ble High Court of Delhi and is taking all the necessary legal and other steps for the same.

Pending finalisation of the matter as above;

(i) Rs.12,88,84.11 lakhs incurred pertaining to the coal block till March 31,2015 after setting off income, stocks etc. there against as per the accounting policy then followed by the Company has been continued to be shown as freehold land, capital work in progress, other fixed assets and other respective heads of account.

(ii) Interest and other finance cost for the year ended March 31,2016 against the fund borrowed and other expenses directly attributable in this respect amounting to Rs. 95,14.74 lakhs has been considered as other recoverable under current assets; and

(iii) Compensation of Rs. 83,12.34 lakhs so far received and net realisations/claims against sale of assets, advances, input credits etc. amounting to Rs. 20,90.04 lakhs have been adjusted. Bank guarantee amounting to Rs. 9,20.00 lakhs (previous year Rs. 9,20.00 lakhs) has been given against the compensation received.

Necessary disclosures and adjustments arising with respect to above and determination of resultant claims will be given effect to on final acceptance/settlement of the amount thereof.

49. (c) Due to reasons stated in note no. 49(a) and pending determination of the amount of the claim, balances under various heads which

otherwise would have been measured and disclosed as per the requirements of various Indian Accounting Standard have been continued to be included under various heads as disclosed under note no. 49(b) considering the prevailing circumstances and objective as dealt with herein above.

50. Due to delay in grant of forest, environment and other clearances from various authorities and execution of mining lease of an area of 192.50 ha. by the State Government of Jharkhand for iron and manganese ores at Dirsumburu in Kodilabad Reserve Forest, Saranda of West Singhbhum, Jharkhand, the validity period of letter of intent granted in this respect got expired on January 11, 2017. Pending decision of Hon''ble High Court at Jharkhand on the matter pursuant to the writ petition filed before the said court, the company without prejudice to the decision to pursue the said petition has decided in earlier years, as a matter of abundant caution to charge off Rs. 27,56.99 lakhs being the amount so paid pertaining to the said mine and carried forward under Capital work in progress and advances. Further, security deposit of Rs. 2,60.59 lakhs paid for the said mine had also been provided for and recognised as impairment thereagainst in earlier year.

51. In respect of company''s claim against private railway siding at Durgachak near Haldia, the construction of which was stalled on withelding the commissioning of the same by South Eastern Railways (SER), the matter was pending before a Sole Arbitrator appointed by Hon''ble High Court at Kolkata vide it''s order dated July 01,2019. The arbitration award allowing the claim of Rs. 2,28,00.02 lakhs has been granted in favour of the company. The award being appealable, claim arising in this respect will be recognised on completion of the time period stipulated for the appeal etc., and acceptance of the said claim by SER.

52. (a) The expenses incurred for projects/assets during the construction/mine development period are classified as "Project Development

Expenses” and pending capitalization are included under capital work in progress and are allocated to the cost of the assets on completion of the project/assets. Consequently expenses disclosed under the respective heads are net of amount classified as project development expenses by the Company (refer note no. 49 and 50). The details of these expenses are as follows :

52. (c) Projects overdue and expected completion date:

(i) As stated in note no. 49, the allotment of Parbatpur coal mine which were under advanced stage of implementation was cancelled vide order dated September 24, 2014. Thereby, as dealt with in note no. 49, the project could not be further progressed and completed. Pending determination of the amount of claim, the balances as were appearing prior to the cancellation, i.e. capital work in progress and other assets balances pertaining to said coal mine have not been adjusted and carried forward in the financial statement.

(ii) Status with respect to other projects are as follows:

55. (i) Contingent Liabilities (to the extent not provided for) in respect of: (Rs. in lakhs)
	Particulars		As at March 31, 2024	As at March 31,2023
a)	Various show cause notices/demands issued/ raised, which in the opinion of the management are not tenable and are pending with various forum / authorities:
	i) Sales Tax - incentive certificate not renewed, pending forms, input tax credit, export and other disallowances etc.		63,17.47	64,14.81
	ii) Entry Tax		2,21.66	2,21.66
	iii) Excise, Custom Duty and Service tax - sale under exemption notification, availment of composite scheme under works contract disallowed		30,39.80	38,01.10
	iv) Income Tax - capital subsidy and other disallowances		5,47.45	5,47.45
	v) Goods & Service Tax- Transitional credit and other disallowances		1,05.60	80.69
b)	Employees State Insurance Corporation has raised demand for contribution in respect of Gross Job Charges for the year 2001-02, 2003-04 and March''08 to January''10. In the opinion of the management demand is adhoc and arbitrary and is not sustainable legally.		92.51	92.51
c)	Demand of Tamil Nadu Electricity Board disputed by the Company.		8.20	8.20
d)	During the year 1994 UPSEB had raised demand for electricity charges by revising the power tariff schedule applicable to the Company retrospectively from Feb''86. In the opinion of the management the revised power tariff is not applicable to the Company and accordingly the Company disputed the demand and the matter is pending before Hon''ble High Court at Allahabad.		2,61.74	2,61.74
e)	Standby Letter of Credit issued by banks on behalf of the company in favour of Subsidiary Companies		24,18.60	55,87.63
f)	Financial Guarantees given by banks on behalf of the Company		9,22.00	9,22.00
g)	Demand of differential railway freight for the year 2008-09 to 2010-11 is Rs. 57,33.29 lakhs (previous year Rs. 57,33.29 lakhs) which is contested by the Company and the matter is pending before the Hon''ble High Court at Calcutta.
h)	As stated in Note no. 6.1, the compensation awarded in favour of the company (net of Rs. 2,50,32.42 lakhs recognised as liability in note no. 25), Rs. 2,52.85 lakhs and interest, if any payable in this respect pending decision of the Hon''ble High Court of Calcutta, amount of liability and interest against the same is currently not determinable.
i)	Forest Department fee amounting to Rs. 9,28.90 lakhs which has been decided in favour of the Company by the Hon''ble High Court of Karnataka. However, the Government of Karnataka has filed a Special Leave Petition before the Hon''ble Supreme Court and the matter is pending thereof.
Note : The Company''s pending litigations Mar 31, 2023 1 Net Block of Plant and Equipments includes Rs. 4,07.72 lakhs (previous year Rs.4,08.22 lakhs) being contribution for laying the power line, the ownership of which does not vest with the Company. 2 Railway Siding represents the cost of construction of the assets for Company''s use over the specified period as per the terms of the agreement. 3 Freehold land includes Rs.3,35.81 lakhs (previous year Rs.3,35.81 lakhs ) pertaining to the Parbatpur Coal Mine in respect of which the execution of conveyance deeds are pending execution (refer note no. 48). Freehold land also includes Rs. 2,75.27 lakhs (previous year Rs. 2,75.27 lakhs) towards contribution in relation of Joint Venture Company "North Dhadhu Mining Company Private Limited". (refer note no. 8.2) 4 Freehold land includes Rs. 18,89.04 lakhs (previous year Rs.18,89.04 lakhs), acquired on merger of erstwhile Mahadev Vyapaar Private Limited and Rs.3,51,50.37 lakhs (previous year Rs.3,51,50.37 lakhs) on merger of erstwhile Srikalahasthi Pipes Limited (SPL) where title deeds in favour of the company are in process of being registered. 5 Freehold land includes, land amounting to Rs.2,94,93.58 lakhs (previous year Rs.2,94,93.58 lakhs) situated at Elavur plant of the Company which are mortgaged in the favour of lender of ESL Steels Limited, an erstwhile associate of the Company. (Also refer note no. 9.1) 6 During the year 1942.56 sq. mtr. of land was acquired by Union of India under the provisions of National Highways Act, 1956 and a compensation amounting to Rs. 16.24 lakhs was determined and received by the company in the month of March 2023. The company being aggrieved of the compensation granted against the same has accepted the amount under protest and filed a petition on April 06, 2023 demanding higher compensation. # Mahadev Vyapaar Private Limited and Srikalahasthi Pipes Limited were merged with the Company in earlier year. The transfer of the respective lands in the name of the Company is under process. 7 The Company doesn''t hold any Benami Property and there is no proceedings initiated or pending against the Company for holding any Benami Property under the Benami Transaction (Prohibition) Act, 1988 and rules made there under 8 Refer note no. 23 to financial statements in respect of charge created against borrowings. 5.10 The above includes assets pertaining to Parbatpur Coal Block, consequential adjustment whereof will be given effect to as dealt with in note no. 48 of the financial statement . Also refer note no. 49 in respect of Iron-ore and manganese ore mine. 6.1.1 Right to use Wagon represents cost incurred in connection with wagon procured under "Wagon investment Scheme" and handed over to railway authorities for their normal operations and ensuring the availability of the wagons to the company on priority for transportation by them as and when required. 6.1.2 The company being deprived of the availability of the wagons as per the "Wagon Investment Scheme” (WIS) had terminated the agreement with South Eastern Railway (SER). Arbitration award pursuant to the claim for compensation for losses/damages has been allowed in favour of the Company. SER objected to the said award and the matter is currently pending before the Hon''ble Calcutta High Court. Pending decision of the Hon''ble Court, Rs. 2,52,85.27 lakhs deposited by SER in respect of the said award has been allowed to be withdrawn by the Company on submission of the Bank Guarantee. Subsequent to the Balance Sheet date, the said amount has been withdrawn and kept in fixed deposit. Pending final decision, no adjustment with respect to ROU Assets as above or claim amount has been given effect to in the financial statement. 6.2 Refer note no 23 to financial statements in respect of charge created against borrowings. 6.3 Refer note no. 48 dealing with coal mine assets. 8.1 The Company has investment of Rs. 30.00 lakhs (previous year Rs. 30.00 lakhs) in equity shares and given advance of Rs. 7,00.00 lakhs (previous year Rs. 7,00.00 lakhs) against equity to Domco Private Limited (DPL), a Company incorporated in India, and has joint control (proportion of ownership interest of the Company being 50%) over DPL along with other venturers (the Venturers) in terms of the Shareholder''s Agreement dated March 27, 2004. The Venturers had filed a petition before the Company Law Board, Principal Bench, New Delhi (CLB) against the Company against operation and mismanagement of the company inter alia on various matters including for forfeiture of the Company''s investment in equity shares of the DPL. The matter was later transferred to the Company Law Board, Kolkata Bench and is now being taken up by the National Company Law Tribunal, Kolkata Bench (NCLT). The Company had also inter alia filed an arbitration proceeding under Arbitration & Conciliation Act, 1996 against recovery of the said amount against which the ventures also filed their counter claims on the company. The matter is sub judice before the NCLT. Pending final outcome of the above matter, the amounts in equity shares and advance have been fully provided for in the financial statements in earlier year. The other venturers are not providing the financial statements of DPL, and thereby necessary disclosures etc. could not be provided in these financial statements. 8.2 (a) The North Dhadhu Coal Block located in the state of Jharkhand was allocated to the Company, Amalgam Steel & Power Limited (ASPL) (formerly known as Adhunik Alloys & Power Limited), Jharkhand Ispat Private Limited (JPL) and Pawanjay Steel & Power Limited (PSPL) (collectively referred to as venturers) for working through North Dhadhu Mining Company Private Limited (NDMCPL), a joint venture company. The Company has joint control (proportion of ownership interest of the Company being 48.98 %) along with other venturers represented by investment of Rs. 8,22.81 lakhs in equity shares of NDMCPL. (b) In pursuance of the Order dated September 24, 2014 issued by the Hon''ble Supreme Court of India (the Order) followed by the Ordinance promulgated by the Government of India, Ministry of Law & Justice (legislative department) dated October 21, 2014 (Ordinance) for implementing the Order, The Ministry of Coal, Government of India had issued an order for de-allocation of North Dhadhu Coal Block. The Company has submitted its claim for compensation which is awaiting acceptance. In the view of the management the compensation to be received in terms of ordinance is expected to cover the cost incurred by the Joint venture company. However as an abundant precaution, impairment in the value of the investment amounting to Rs. 8,22.81 lakhs in Joint venture has been provided in earlier year. 8.3 Particulars of investments as required in terms of section 186(4) of the Companies Act,2013 have been disclosed under note 8, 9 & 14. 9.1 The Company holds 19796000 equity shares (previous year 19796000 equity shares) of Rs. 10/- each in ESL Steel Limited (ESL) out of which 17334999 equity shares (previous year 17334999 equity share) of Rs. 10/- each amounting to Rs. 57,44.81 lakhs have been pledged with the consortium of lenders of ESL (lenders). The notices issued by the lenders for invocation of pledge of company''s investment was set aside by the Hon''ble High Court at Calcutta in the earlier year and the company''s plea for release of such pledge is pending before the Hon''ble Court. Further in the earlier years, certain land amounting to Rs. 2,94,93.58 lakhs (previous year Rs. 2,94,93.58 lakhs) of the company, situated at Elavur, Tamil Naidu, were mortgaged to another lender SREI Infrastructure Finance Limited (SREI) of ESL and SREI had subsequently assigned the right of the said property to an Asset Reconstruction Company (ARC) although the claims of the said lender were fully discharged by the ESL as per the Resolution Plan approved by NCLT, Kolkata. Subsequently the ARC had issued SARAFESI Notice and taken the symbolic possession of the said land against alleged claim in SARAFESI Notice in an earlier year. The Company had disputed the alleged assignment of the loan by the lender at Hon''ble Madras High Court. Subsequently, as per direction of the Hon''ble Supreme Court, the Company had filed an application before the Debt Recovery Tribunal (DRT), Chennai for setting aside the SARAFESI actions and release of the title deeds of such land. The DRT vide its order dated April 08, 2022 uploaded on April 27, 2022 had dismissed the application of the Company. On filing the appeal before the Debt Recovery Appellate Tribunal (DRAT) against the order of DRT, DRAT has directed the Company to deposit 50% of the SARAFESI demand i.e. Rs. 2,93,55.04 lakhs (previous year Rs. 2,93,55.04 lakhs) and was of the view that at admission stage it cannot go in to the merits of the case hence, cannot give any relief on the pre-deposit. The Company then has filed revision application at Hon''ble Madras High Court under Article 227 of the Indian Constitution and a Writ Application under Article 226 of Indian Constitution challenging provisions of pre-deposit under SARAFESI Act. The matter is now pending before Hon''ble Madras High Court. Earlier, the ARC had also filed an application before the National Company Law Tribunal, Cuttack for initiation of Corporate Insolvency and Resolution Process (CIRP) process against the Company which has been decided in the favour of the Company vide NCLT order dated June 24, 2022 by dismissing the application of ARC. The ARC has challenged the order of NCLT, Cuttack and the matter is pending before National Company Law Appellate Tribunal (NCLAT), New Delhi. Pending finalization of the matter, investments and land as dealt herein above, have been carried forward at their book value. 9.2 The Company has made an irrevocable decision to consider investment in equity instruments, other than in Subsidiaries and Joint ventures not held for trading (non current investments) to be recognized at FVTOCI. 19.4 (a) Includes Rs. 46,80.58 lakhs (previous year Rs. 46,80.58 lakhs) related to claim under West Bengal Incentive Scheme (WBIS) 2000. In absence of any clarification from the Government of West Bengal regarding disbursal of incentive post implementation of GST, the West Bengal Industrial Development Corporation (WBIDC) the implementing agency is not releasing the fund in this respect. The company has filed a writ petition in Hon''ble High Court of Calcutta against the same and the matter is pending for final decision. The above claim being made in terms of incentive scheme, the amount thereof in view of the management are recoverable. (b) Includes Rs. 12,02.49 lakhs (previous year Rs. 12,02.49 lakhs) in respect of sales tax subsidy receivable under Andhra Pradesh Industrial Investment Promotion Policy. 19.5 Refer note no.29.1 to Financial Statements in respect of charge created against borrowings. 21.1 The Company has only one class of shares referred to as equity shares having a par value of Re. 1/-. Each holder of equity shares is entitled to one vote per share. 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 of their shareholding. 21.2 During the previous year, 161650538 equity shares of Re.1 each has been issued to shareholders of erstwhile Srikalahasthi Pipes Limited pursuant to the scheme of amalgamation approved by Hon''ble National Company Law Tribunal, Cuttack Brach vide its order dated December 09, 2021. 22.1 Capital Reserve The reserve was created on account of forfeiture of warrants convertible into equity shares. 22.2 Capital Reserve on Amalgamation Capital Reserve on Amalgamation represent the excess of consideration paid i.e. equity shares issued with respect to net assets and reserves acquired consequent to amalgamation of erstwhile Mahadev Vyapaar Private Limited and Srikalahasthi Pipes Limited amounting to (Rs. 14,86.46 lakhs) and (Rs. 4,25,39.34 lakhs) respectively. 22.3 Securities Premium Reserve Securities Premium Reserve represents the amount received in excess of par value of securities and is available for utilisation as specified under Section 52 of Companies Act, 2013. 22.4 General Reserve General Reserve is a free reserve which is created by transfer of profit from retained earnings. As the Reserve is created by a transfer from one component to another and is not an item of OCI, item included in General Reserve is not reclassified subsequently to Statement of Profit and Loss. 22.5 Retained Earnings Retained earnings generally represents the accumulated undistributed surplus earnings of the company. This includes Rs. 11,82,84.60 lakhs (previous year Rs. 11,80,62.49 lakhs) represented by changes in carrying amount of Property, Plant and Equipments being measured at fair value as on the date of transition as deemed cost. Further unrealised loss of Rs. 9,84,10.67 lakhs (previous year Rs. 9,84,10.67 lakhs) due to changes in carrying amount of investment has also been adjusted to the retained earning. Thereby Rs. 1,98,73.93 lakhs (previous year Rs. 1,96,51.82 lakhs) being represented by changes in carrying value of assets in terms of provisions of Companies Act 2013 is not available for distribution. This includes other comprehensive income of (Rs. 2,29.43 lakhs) relating to remeasurement of defined benefit plans (net of tax) which cannot be reclassified to statement of profit and loss. 22.6 Other Comprehensive Income Other Comprehensive Income (OCI) represent the balance in equity for items to be accounted under OCI and comprises of the following: i) Items that will not be reclassified to Profit and Loss a. The company has elected to recognise changes in the fair value of non-current investments (other than in subsidiaries, associates and joint ventures) in OCI. This reserve represents the cumulative gains and losses arising on equity instruments being measured at fair value. The company transfers amounts from this reserve to retained earnings when the relevant equity securities are disposed. b. This also includes actuarial gains and losses arising on defined benefit obligations recognised in OCI which is transferred to retained earning as stated in note no. 22.5. ii) Items that will be reclassified to profit and loss. a. This reserve represents the cumulative effective portion of changes in fair value of currency swap that are designated as cash flow hedge are recognised in OCI. This is reclassified to statement of Profit and Loss. 22.7 The company has allotted 23579344 warrants convertible into or exchangeable for 1 (one) fully paid-up equity shares of the company having face value of Re. 1 each at the issue price of Rs. 42.41 each payable in cash (''warrant issue price'') on preferential basis to Promoter/ Promoter group on December 27, 2022 as approved by the Shareholders vide their postal ballot resolution dated December 23, 2022. The said allotment has been done upon receipt of Rs. 10.60 for each warrants aggregating to Rs. 24,99.41 lakhs included under other equity being the amount equivalent to 25% of the warrant issue price as upfront contribution received by the company in this respect entitling the warrant holders to apply for and get allotted one equity shares of the company against each warrant held in one or more tranche within a maximum period of eighteen months from the date of allotment on payment of balance amount of Rs. 31.81 each which is equivalent to 75% of the warrant issue price. 22.8 The Board of Directors at its meeting held on May 17, 2023 recommended a final dividend of Re. 0.90 per equity share to be paid on fully paid up equity shares amounting to Rs. 53,51.45 lakhs for the financial year ended March 31,2023. The above is subject to approval of the shareholders at the ensuing Annual General Meeting and has not been included as a liability in these financial statement. 23.1.2 Rupee Term Loan of Rs. 50,00.00 lakhs from a bank was secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi Unit and Freehold Land at Haldia. The said loan has been fully repaid during the year. 23.1.3 Rupee Term Loan of Rs. 1,50,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi Unit and Freehold Land at Haldia . The outstanding as on March 31,2023 is Rs. 50,47.93 lakhs (previous year Rs. 1,02,34.39 lakhs). The balance loan is repayable in 7 equal quarterly installments starting from June 2024. 23.1.4 Rupee Term Loan of Rs. 50,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The outstanding as on March 31, 2023 is Rs. 33,12.65 lakhs (previous year Rs. 40,30.87 lakhs). The balance loan is repayable in 14 structured quarterly installments starting from April 2023 . 23.1.5 Rupee Term Loan of Rs. 4,00,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The outstanding as on March 31,2023 is Rs. 60,03.54 lakhs (previous year Rs. 64,39.18 lakhs). The balance loan is repayable in 26 structured quarterly installments starting from June 2023. 23.1.6 Rupee Term Loan of Rs. 60,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The outstanding as on March 31, 2023 is Rs. 51,00.92 lakhs (previous year Rs. 53,05.32 lakhs). The balance loan is repayable in 43 structured monthly installments starting from April 2023. 23.1.7 Rupee Term Loan of Rs. 75,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia . The outstanding as on March 31,2023 is Rs. 64,15.87 lakhs (previous year Rs. 70,10.16 lakhs). The balance loan is repayable in 15 structured quarterly installments starting from June 2023. 23.1.8 Rupee Term Loan of Rs. 50,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The outstanding as on March 31, 2023 is Rs. 36,43.80 lakhs (previous year Rs. 48,19.22 lakhs). The balance loan is repayable in 12 equal quarterly installments starting from May 2023. 23.1.9 Rupee Term Loan of Rs. 11,00.00 lakhs from a bank was secured by way of first pari passu charge over Current Assets of the company. This said loan has been fully repaid during the year. 23.1.10 Rupee Term Loan of Rs.75,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The outstanding as on March 31, 2023 is Rs. 33,60.83 lakhs (previous year Rs.55,68.10 lakhs). The balance loan is repayable in 9 equal quarterly installments starting from June 2024. 23.1.11 Rupee Term Loan of Rs.60,00.00 lakhs from a Bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The outstanding as on March 31, 2023 is Rs. 53,96.38 lakhs (previous year Rs. 59,94.85 lakhs). The balance loan is repayable in 18 equal quarterly installments starting from June 2023. 23.1.12 Rupee Term Loan of Rs.75,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The outstanding as on March 31, 2023 is Rs. 52,12.28 lakhs (previous year Rs.72,19.89 lakhs). The balance loan is repayable in 11 structured quarterly installments starting from May 2024. 23.1.13 Rupee Term Loan of Rs. 75,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment, both present and future, of the Company located at Srikalahasthi unit. The outstanding as on March 31, 2023 is Rs. 22,47.00 lakhs (previous year Rs. 29,92.00 lakhs). The balance loan is repayable in 6 equal quarterly installments starting from June 2023. 23.1.14 Rupee Term Loan of Rs. 1,00,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment, both present and future, of the Company located at Srikalahasthi unit. The outstanding as on March 31, 2023 is Rs.29,89.00 lakhs (previous year Rs. 49,71.00 lakhs). The balance loan is repayable in 6 equal quarterly installments starting from June 2023. 23.1.15 Rupee Term Loan of Rs. 1,45,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment, both present and future, of the Company located at Srikalahasthi unit. The outstanding as on March 31, 2023 is Rs. 18,61.68 lakhs (previous year Rs. 24,82.02 lakhs). The balance loan is repayable in 12 structured quarterly installments starting from May 2023. 23.1.16 Rupee Term Loan of Rs. 2,00,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company located at Srikalahasthi unit. The outstanding as on March 31,2023 is Rs.1,77,08.25 lakhs (previous year Rs. 1,93,98.91 lakhs). The balance loan is repayable in 20 structured quarterly installments starting from April 2023. 23.1.17 Rupee Term Loan of Rs. 15,00.00 lakhs from a bank was secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment, both present and future, of the Company located at Srikalahasthi unit. The said loan has been fully repaid during the year. 23.1.18 Rupee Term Loan of Rs. 120,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment, both present and future, of the Company located at Srikalahasthi unit. The outstanding as on March 31, 2023 is Rs. 20,70.81 lakhs (previous year nil). The balance loan is repayable in 20 equal quarterly installments starting from June 2024. 23.2.1 Rupee Term Loan of Rs.50,00.00 lakhs from a financial institution is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia . The outstanding as on March 31,2023 is Rs.49,79.98 lakhs (previous year nil). The balance loan is repayable in 12 equal quarterly instalments starting from September 2024. 23.2.2 Rupee Term Loan of Rs.1,00,00.00 lakhs from a financial institution is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The outstanding as on March 31,2023 is Rs. 56,37.19 lakhs (previous year Rs. 87,50.02 lakhs). The balance loan is repayable in 13 equal quarterly instalments starting from June 2024. 23.2.3 Rupee Term Loan of Rs. 25,00.00 lakhs from a financial institution was secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The said loan has been fully repaid during the year. 23.2.4 Rupee Term Loan of Rs. 60,00.00 lakhs from a financial institution is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The outstanding as on March 31,2023 is Rs.56,84.00 lakhs (previous year nil). The balance loan is repayable in 18 equal quarterly instalments starting from May 2023. 23.3 The interest rate for the above loans ranges from 5.75% to 10.30%. p.a. 23.4 The outstanding balances disclosed in note 23.1 to 23.2 are based on the amortised cost in accordance with Ind AS 109 "Financial Instruments". 23.5 There are no registration/satisfaction of charges pending with Registrar of Companies beyond the statutory period as on the Balance Sheet date. 25.1 Provision for Mines closure and restoration charges had been made in terms of statutory obligations specified for the purpose and Rs. 3,67.58 lakhs (value as on March 31, 2023 Rs. 8,62.57 lakhs) deposited in the Escrow account in terms of the stipulation made by Ministry of Coal, for Mines closure Plan. In view of cancellation of allotment of coal mines no further provision and accrual of income on fixed deposit lying in Escrow account has been considered necessary. (Refer note no. 17 and 48). b) Fair Valuation Techniques The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate the fair values: 1. The fair value of cash and cash equivalents, current trade receivables and payables, current loans, current financial liabilities and assets and borrowings approximate their carrying amount largely due to the short-term nature of these instruments. The management considers that the carrying amounts of financial assets and financial liabilities recognised at nominal cost/amortised cost in the financial statements approximate their fair values. In respect of non current trade receivables and loans, fair value is determined by using discount rates that reflect the present borrowing rate of the company. 2. A substantial portion of the company''s long-term debt has been contracted at floating rates of interest, which are reset at short intervals. Fair value of variable interest rate borrowings approximates their carrying value subject to adjustments made for transaction cost. In respect of fixed interest rate borrowings, fair value is determined by using discount rates that reflects the present prevailing rates for similar borrowing in the market. 3. Investments (other than Investments in Joint Venture and Subsidiaries) traded in active market are determined by reference to the quotes from the Stock exchanges as at the reporting date. Investment in liquid and short term mutual fund, which are classified as Fair value through Profit and Loss are measured using quoted market prices at the reporting date and in case of debentures, bonds and government securities, the net present value at current yield to maturity have been considered. Unquoted investments in shares have been valued based on the historical net asset value as per the latest audited financial statements. 4. The fair value of derivative financial instruments is determined based on observable market inputs including currency spot and forward rates, yield curves, currency volatility etc. The said valuation has been carried out by the counter party with whom the contract has been entered with and management has evaluated the credit and non-performance risks associated with the counterparties and believes them to be insignificant and not requiring any credit adjustments. 2. During the year ended March 31,2023 and March 31,2022, there were no transfers between Level 1, Level 2 and Level 3. 3. The Inputs used in fair valuation measurement are as follows: i) Fair valuation of Financial assets and liabilities not within the operating cycle of the company is amortised based on the borrowing rate of the company. ii) Derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are directly or indirectly observable in the marketplace. The inputs used for forward contracts are Forward foreign currency exchange rates and Interest rates to discount future cash flow. iii) Unquoted investments in equity shares have been valued based on the amount available to shareholder''s as per the latest audited financial statements wherever available. Further, external observable inputs or assumptions have been used in such valuation of equity shares in other cases. (d) Derivatives financial assets and liabilities: The Company follows established risk management policies, including the use of derivatives to hedge its exposure to foreign currency fluctuations on foreign currency assets / liabilities. The counter party in these derivative instruments is a bank and the Company considers the risks of non-performance by the counterparty as non-material. In the normal course of business, the Company transfers its bill receivables to banks. Under the terms of the agreements, the Company surrenders control over the financial assets and the transfer is with recourse. Under arrangement with recourse, the company is obligated to repurchase the uncollected financial assets, subject to limits specified in the agreement with banks. Accordingly, in such cases the amount transferred are recorded as borrowings in the statement of financial position and cash flows from financing activities. As at March 31, 2023 and March 31, 2022 the maximum amount of recourse obligation in respect of financial assets are Rs 3,79,16.20 lakhs and Rs. 1,44,65.14 lakhs respectively. The Company''s activities are exposed to variety of financial risks. The key financial risks includes market risk, credit risk and liquidity risk. The Company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The Board of Directors reviews and approves policies for managing these risks. The risks are governed by appropriate policies and procedures and accordingly financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. 1. Market Risk Market risk is the risk or uncertainty arising from possible market fluctuations resulting in variation in the fair value of future cash flows of a financial instrument. The major components of Market risks are currency risk, interest rate risk, commodity price risk and other price risk. Financial instruments affected by market risk includes trade receivables, borrowings, investments in fixed deposit/ Mutual Funds/ Bonds and trade and other payables. i) Foreign Currency Risk Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s foreign currency denominated borrowings, trade receivables and trade or other payables. In order to mitigate forex losses, the Company has adopted a comprehensive risk management review system wherein it actively hedges its foreign exchange exposures within defined parameters through use of hedging instruments such as forward contracts, options and swaps. The Company periodically reviews its risk management initiatives and also takes experts advice on regular basis on hedging strategy. A 5% strengthening of INR would have an equal and opposite effect on the Company''s financial statements. ii) Interest rate risk The company''s exposure in market risk relating to change in interest rate primarily arises from floating rate borrowing with banks and financial institutions. Considering the same, the carrying amount of said borrowing was considered to be at fair value. Borrowings at fixed interest rate exposes the company to the fair value interest rate risk. The company maintains a portfolio mix of fixed and floating rate borrowings. As at March 31,2023, approximately 64.42% (Previous Year 61.47%) of the company''s borrowings become fixed rate interest borrowing. Further there are deposits with banks which are for short term period are exposed to interest rate risk, falling due for renewal. These deposits are however generally for trade purposes as such do not cause material implication. iii) Commodity Risk The company''s revenue is exposed to the market risk of price fluctuation related to sale of products which is generally determined by market forces. These prices may be influenced by factors such as supply and demand, production costs (including cost of raw material inputs) and global and regional economic conditions and growth. Adverse changes in any of these factors may reduce revenue for the company. The company is subject to fluctuation in prices of iron ore, coking coal, ferro alloys, zinc and other raw material inputs. The company aims to sell the products at prevailing market prices. Similarly the company procures key raw material based on prevailing market rates. However, contracts with the customers are generally with a delivery period of 90-180 days, results in the mismatch of cost and sales realisation. iv) Other price risk The Company''s equity exposure in Subsidiaries and Joint Ventures are carried at cost or deemed cost and these are subject to impairment testing as per the policy followed in this respect. The company''s current investments are fair valued through profit and loss and non current investment at fair value through OCI. The company invest in mutual fund schemes of leading fund houses. Such investments are susceptible to market price risk that arise mainly from changes in interest rate which may impact return and value of such investments. However, given the relatively short tenure of underlying portfolio of mutual fund schemes in which the company has invested, such price risk is not significant. 2. Credit Risk Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables). The management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Major water infrastructure projects are Government funded or foreign aided and the risk involved in payment default is minimum with respect to these customers. Besides, export receivables are primarily from subsidiaries and sales made by them is covered under Credit Insurance. The Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends and ageing of accounts receivable. Individual risk limits are set accordingly. Further the company obtains necessary security including letter of credits and/or bank guarantee to mitigate its credit risk. The carrying amount of respective financial assets recognised in the financial statements, (net of impairment losses) represents the Company''s maximum exposure to credit risk. The concentration of credit risk is limited due to the customer base being large and unrelated. Of the trade receivables balance at the end of the year (other than subsidiaries), there are no single customer accounted for more than 10% of the accounts receivable and 10% of revenue as at March 31,2023 and March 31,2022. The company takes collateral or other credit enhancements to secure its credit risk. The Company extends credit to customers as per the internal credit policy. Any deviation are approved by appropriate authorities, after due consideration of the customers credentials and financial capacity, trade practices and prevailing business and economic conditions. The Company''s historical experience of collecting receivables and the level of default indicate that credit risk is low and generally uniform across markets; consequently, trade receivables are considered to be a single class of financial assets. All overdue customer balances are evaluated taking into account the age of the dues, specific credit circumstances, the track record of the customers etc. The company computes credit loss allowance based on a matrix based historically observed default rates over the expected life of trade receivables and is adjusted for forward-looking estimates. Financial assets that are neither past due nor impaired Cash and cash equivalents, investment and deposits with banks are neither past due nor impaired. Cash and cash equivalents with banks are held with reputed and credit worthy banking institutions. Financial assets that are past due but not impaired Trade receivables amounts that are past due at the end of the reporting period, no credit losses there against are expected to arise. The company also takes advance, letter of credit and bank guarantee from its customers, which mitigates the credit risk to that extent. 3. Liquidity Risk Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company''s objective is to maintain optimum level of liquidity to meet it''s cash and collateral requirements at all times. The company relies on borrowings and internal accruals to meet its long term and short term fund requirement. The current committed line of credit are sufficient to meet its short to medium term fund requirement. i) Liquidity and interest risk tables The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows as at balance sheet date: The company has current financial assets which will be realised in ordinary course of business. The Company ensures that it has sufficient cash on demand to meet expected operational expenses. The company relies on mix of borrowings and operating cash flows to meet its need for funds and ensures that it does not breach any financial covenants stipulated by the lender. Capital Management The primary objective of the Company''s capital management is to ensure that it maintains a healthy capital ratio in order to support its business and maximise shareholder value. The Company''s objective when managing capital is to safeguard their ability to continue as a going concern so that they can continue to provide returns for shareholders and benefits for other stake holders. The Company is focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required without where the risk profile of the Company. b) Post Employment Defined Benefit Plans Post Employment Defined Benefit Plans are managed by Life Insurance Corporation of India and ICICI Prudential Life Insurance Company Limited is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. Details of such funds are as follows: Gratuity (Funded) The company''s gratuity scheme, a defined plan is as per the Payment of Gratuity Act 1972, covers the eligible employees and is administered through gratuity fund trust. Such gratuity fund, whose investments are managed by Life Insurance Corporation of India and ICICI Prudential Life Insurance Company Limited an insurer makes payment to vested employees or their nominee upon retirement, death, incapacitation or cessation of employment of an amount based on the respective employee''s salary and tenure of employment. Vesting occurs on completion of five year of service. The amount of gratuity payable is the last drawn basic salary per month computed proportionately for 15 days of salary multiplied for the number of year service. Risk analysis Through its defined benefit plans, the Company is exposed to a number of risks in the defined benefit plans. Most significant risks pertaining to defined benefit plans and, management''s estimation of the impact of these risks are as follows: Investment risk The Gratuity plan is funded with Life Insurance Corporation of India and ICICI Prudential Life Insurance Company Limited and the company does not have any liberty to manage the fund provided to them. The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to Government of India bonds. If the return on plan asset is below this rate, it will create a plan deficit. Interest risk A decrease in the interest rate on plan assets will increase the plan liability. Longevity risk / Life expectancy The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and at the end of the employment. An increase in the life expectancy of the plan participants will increase the plan liability Salary growth risk The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increase in the salary of the plan participants will increase the plan liability. 48(a). In pursuance of the Order dated September 24, 2014 issued by the Hon''ble Supreme Court of India (the Order) followed by the Ordinance promulgated by the Government of India, Ministry of Law & Justice (legislative department) dated October 21,2014 (Ordinance) for implementing the Order, allotment of Parbatpur coal block (coal block/mines) to the Company which was under advanced stage of implementation, had been cancelled w.e.f. April 01,2015. In terms of the Ordinance, the Company was allowed to continue the operations in the said block till March 31, 2015. Accordingly, the said block had been handed over to Bharat Coking Coal Limited (BCCL) as per the direction from Coal India Limited (CIL) with effect from April 01,2015 and the same was thereafter allotted to Steel Authority of India Limited (SAIL) and pending final determination, compensation of Rs. 83,12.14 lakhs was received. The company also came to understand that SAIL subsequently handed over back the said coal block to the custody of BCCL. Following a petition filed by the Company, the Hon''ble High Court at Delhi had pronounced its judgement on March 09, 2017. Accordingly and based on the said judgement, the Company has claimed Rs.15,49,44.48 lakhs towards compensation against the said coal block and acceptance of the same is awaited. Aggrieved due to delay in acceptance of claim, on a petition filed by the Company, the Hon''ble High Court had directed the Nominated Authority appointed under Ministry of Coal to determine the amount of compensation to be paid to the company. Earlier the Nominated Authority had upheld its decision of compensation already paid which was set aside by the Hon''ble High Court with a direction to the Nominated Authority to reconsider the said decision. The Nominated authority further passed an order dated November 11,2019 awarding an additional compensation of Rs. 1,80.00 lakhs and with a further direction to re-determine the value of certain assets by the appropriate authority. Subsequently, a newly appointed Nominated Authority (New Nominated Authority) had appointed a valuer to determine the value of those specified assets as per the direction of Nominated Authority dated November 11,2019. The company came to understand that valuation report recommending a valuation of total direct/hard cost for specified assets has been submitted to the New Nominated Authority and the same is under consideration and a final compensation is yet to be decided. The company had also earlier approached the New Nominated Authority/ Ministry of Coal (Ministry) to similarly reconsider the compensation determined by the previous Nominated Authority, for land and some other major assets. Pending such decision, in the meantime, the Ministry vide notification dated November 03, 2022 had included the said Parbatpur Coal Block in the "16th Tranche of Auction Under Coal Mines (Special Provisions) Act, 2015” and JSW Steel Limited (JSW) has emerged as successful bidder in the said auction. Accordingly, the claim for compensation in this respect therefore is to be determined on receipt of order for vesting of the said mine to JSW. The company''s management however, is pursuing to revise and determine the amount of entire compensation for coal block in terms of the aforesaid judgement passed by the Hon''ble High Court of Delhi. (i) Rs.12,88,84.11 lakhs incurred pertaining to the coal block till March 31, 2015 after setting off income, stocks etc. there against as per the accounting policy then followed by the Company has been continued to be shown as freehold land, capital work in progress, other fixed assets and other respective heads of account. (ii) Interest and other finance cost for the year ended March 31, 2016 against the fund borrowed and other expenses directly attributable in this respect amounting to Rs. 95,14.74 lakhs has been considered as other recoverable under current assets; and (iii) Compensation of Rs. 83,12.34 lakhs so far received and net realisations/claims against sale of assets, advances, input credits etc. amounting to Rs. 20,90.04 lakhs have been adjusted. Bank guarantee amounting to Rs. 9,20.00 lakhs (previous year Rs. 9,20.00 lakhs) has been given against the compensation received. Necessary disclosures in terms of Indian Accounting Standard and adjustments arising with respect to above will be given effect to on final acceptance/settlement of the claim. 48(c). Due to reasons stated in note no. 48 (a) and pending determination of the amount of the claim, balances under various heads which otherwise would have been measured and disclosed as per the requirements of various Indian Accounting Standard '' have been included under various heads as disclosed under note no. 48 (b) considering the circumstances and objective of the financial statements. 49. Due to delay in grant of forest, environment and other clearances from various authorities and execution of mining lease of an area of 192.50 ha. by the State Government of Jharkhand for iron and manganese ores at Dirsumburu in Kodilabad Reserve Forest, Saranda of West Singhbhum, Jharkhand, the validity period of letter of intent granted in this respect got expired on January 11,2017. Pending decision of Hon''ble High Court at Jharkhand on the matter pursuant to the writ petition filed before the said court, the company without prejudice to the decision to pursue the said petition has decided during the year, as a matter of abundant caution to charge off the amounts so paid pertaining to the said mine and carried forward under Capital work in progress and advances and thereby, Rs. 27,56.99 lakhs has been disclosed as sundry balances/advances/ cwip written off under other expenses for the year ended March 31,2023. (c) Projects overdue and expected completion date: (i) As stated in note no. 48, the allotment of Parbatpur coal mine which were under advanced stage of implementation was cancelled vide order dated September 24, 2014. Thereby, as dealt with in note no. 48, the project could not be further progressed and completed. Pending determination of the amount of claim, the balances as were appearing prior to the cancellation, i.e. capital work in progress and other balances pertaining to said coal mine have not been adjusted and carried forward in the financial statement. D. Terms and conditions of transactions with related parties a. The transactions with related parties have been entered at an amount which are not materially different from those on normal commercial terms. For the year ended March 31, 2023, the company has not recorded impairment of receivable relating to amount owned by the parties. The measurement is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates. b. The amounts outstanding are unsecured and will be settled in cash and cash equivalent. No guarantees have been given or received. c. The remuneration of directors is determined by the Nominations & Remuneration Committee having regard to the performance of individuals and market trends. 57. Additional Information pursuant to amendments made in Schedule III to the extent applicable to the company (Other than those that have been disclosed under the respective Notes to the financial statements: (A) Utilisation of borrowed funds and share premium (i) The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities (Intermediaries) with the understanding that the Intermediary shall: a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries. (ii) The Company has not received any fund from any persons or entities, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries. (B) Details of crypto currency or virtual currency The Company has not traded or invested in crypto currency or virtual currency during the current or previous year. (C) Undisclosed income There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account. (D) Compliance with number of layers of companies The Company has complied with number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of layers) Rules, 2017. 59. The company has opted for continuing accounting policy in respect of exchange difference arising on reporting of long term foreign currency monetary items in accordance with Ind AS 101 "First time adoption of Indian Accounting Standards". The unamortised balance in the carrying amount of Property, Plant and Equipments / capital work in progress is Rs 2,80,06.55 lakhs (previous year Rs 2,83,40.19 lakhs). 60. These financial statements have been approved by the Board of Directors of the Company on May 17, 2023 for issue to the shareholders for the adoption. 61. The previous year figures have been regrouped/reclassified wherever necessary to correspond with current year''s classification/disclosure. Mar 31, 2018 1. Corporate Information Electrosteel Castings Limited (‘the company’) is a public limited company in India having its corporate office in Kolkata in the State of West Bengal and registered office at Rajgangpur, District: Sundergarh in the State of Odisha and is engaged in the manufacture and supply of Ductile Iron (DI) Pipes, Ductile Iron Fittings (DIF) and Cast iron (CI) Pipes as its core business and produces & supplies Pig Iron, in the process. It also produces Metallurgic Coke, Sinter and Power for captive consumption. The company caters to the needs of Water Infrastructure Development. The Company’s shares are listed on National Stock Exchange of India Limited and BSE Limited. 2. Statement of Compliance and Recent Pronouncements 2.1 Statement of Compliance The Company excepting as stated in Note 7.2, 7.4 and 46 has adopted Indian Accounting Standards (referred to as “Ind AS”) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) read with Section 133 of the Companies Act, 2013 (“the Act”) with effect from April 1, 2016 and therefore Ind ASs issued, notified and made effective till the financial statements are authorized have been considered for the purpose of preparation of these financial statements. 2.2 Recent Pronouncements New Standards / Amendments to Existing Standard issued but not yet effective upto the date of issuance of the Company’s Financial Statement are disclosed below : On 28th March, 2018, the Ministry of Corporate Affairs (MCA) has notified Ind AS 115 - Revenue from Contracts with Customers and certain amendment to existing Ind AS. These amendments shall be applicable to the Company from 1st April 2018. (a) Ind AS 115-Revenue from Contracts with Customers Ind AS 115 supersedes Ind AS 11, Construction Contracts and Ind AS 18, Revenue. Ind AS 115 requires an entity to report information regarding nature , amount, timing and uncertainty of revenue and cash flows arising from contract with customers. The principle of Ind AS 115 is that an entity should recognise revenue that demonstrates the transfer of promised goods and services to the customers at an amount that reflects the consideration to which the entiry expects to be entitled in exchange for those goods and services. Based on preliminary assessment performed by the Company, the impact of the application of the standard is not expected to be material. (b) Amendment to Existing issued Ind AS i. Ind AS 12 - Income Taxes ii. Ind AS 21 - The Effects of Changes in Foreign Exchange Rates iii. Ind AS 28 - Investment in Associates and Joint Ventures and iv. Ind AS 112 - Disclosure of Interests in Other Entities The impact of the above standards on the financial statements, as assessed by the Company, is not expected to be material. 3. Critical accounting judgments, assumptions and key sources of estimation and uncertainty The preparation of the financial statements in conformity with the measurement principle of Ind AS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Differences between the actual results and estimates are recognized in the year in which the results are known / materialized and, if material, their effects are disclosed in the notes to the financial statements. Application of accounting policies that require significant areas of estimation, uncertainty and critical judgments and the use of assumptions in the financial statements have been disclosed below. The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are discussed below : 3.1 Depreciation / amortization and impairment on property, plant and equipment / intangible assets Property, plant and equipment and intangible assets are depreciated / amortized on straight-line /written down value basis over the estimated useful lives (or lease term if shorter) in accordance with Schedule II of the Companies Act, 2013, taking into account the estimated residual value, wherever applicable. The company reviews its carrying value of its Tangible and Intangible Assets whenever there is objective evidence that the assets are impaired. In such situation Assets’ recoverable amount is estimated which is higher an asset’s or cash generating units (CGU) fair value less cost of disposal and its value in use. In assessing value in use the estimated future cash flows are discounted using pre-tax discount rate which reflect the current assessment of time value of money. In determining fair value less cost of disposal, recent market realisations are considered or otherwise in absence of such transactions appropriate valuations are adopted. The Company reviews the estimated useful lives of the assets regularly in order to determine the amount of depreciation / amortization and amount of impairment expense to be recorded during any reporting period. This reassessment may result in change estimated in future periods. 3.2 Impairment on Investments in Subsidiaries, Associates and Joint Ventures Investments in Subsidiaries, Associates and Joint Ventures are being carried at cost or deemed cost. The company has tested for impairment at year end based on the market value where the shares are quoted, P/E ratio of similar sector company along with premium / discount for nature of holding and Net Asset Value computed with reference to the book value / projected discounted cash flow of such company in respect of unquoted investments. 3.3 Arrangements containing leases and classification of leases The Company enters into service / hiring arrangements for various assets / services. The determination of lease and classification of the service / hiring arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee’s option to purchase and estimated certainty of exercise of such option, proportion of lease term to the asset’s economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialized nature of the leased asset. 3.4 Claims and Compensation Claims including insurance claims are accounted for on determination of certainity of realisation thereof. Compensation receivable against acquistion of coal mine (Refer Note No. 46) pending final acceptance or settlement thereof even though has not been given effect to, as amount expected to be realised in this respect has been considered to be covering the carrying amount of the relevant assets and other recoverables. 3.5 Impairment allowances for on trade receivables The Company evaluates whether there is any objective evidence that trade receivables are impaired and determines the amount of impairment allowance as a result of the inability of the customers to make required payments. The Company bases the estimates on the ageing of the trade receivables balance, credit-worthiness of the trade receivables and historical write-off experience. 3.6 Income taxes Significant judgment is required in determination of taxability of certain income and deductibility of certain expenses during the estimation of the provision for income taxes. 3.7 Defined benefit obligation (DBO) Critical estimate of the DBO involves a number of critical underlying assumptions such as standard rates of inflation, mortality, discount rate, anticipation of future salary increases etc. as estimated by Independent Actuary appointed for this purpose by the Management. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses. 3.8 Provisions and Contingencies Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability requires the application of judgement to existing facts and circumstances, which can be subject to change. Management judgment is required for estimating the possible outflow of resources, if any, in respect of contingencies/ claim/ litigations/ against the Company as it is not possible to predict the outcome of pending matters with accuracy. The carrying amounts of provisions and liabilities and estimation for contingencies are reviewed regularly and revised to take account of changing facts and circumstances. Notes : 4.1 Plant and Equipments of Rs.4,13.68 lakhs (previous year Rs.4,17.94 lakhs) being contribution for laying the Power line, the ownership of which does not vest with the company. 4.2 Railway Siding represents the cost of construction of the assets for company’s use over the specified period as per the terms of agreement. 4.3 Freehold land includes Rs.3,35.81 lakhs (previous year Rs.3,35.81 lakhs ) in respect of which the execution of conveyance deeds is pending. 4.4 Other adjustments includes Rs.66.68 lakhs (previous year nil) being interest capitalized during the year and Rs.82.72 lakhs [previous year Rs.(1,24.08) lakhs] representing foreign exchange fluctuation. 4.5 Land with factory buildings of Rs.2,95,93.21 lakhs (previous year Rs.2,97,11.81 lakhs) at Elavur plant of the Company are mortgaged in the favour of lender to Electrosteel Steels Limited, an associate of the Company. 4.6 Refer note no 22 to financial statements in respect of charge created against borrowings. 4.7 Refer note 46 dealing with coal mine assets and note no 47(a) in respect of Iron-ore and manganese Ore mine. Notes : 5.1 Right to use Wagon represents cost incurred in connection with wagon procured under “Wagon investment Scheme” and handed over to railway authorities for their normal operations against priority over availability of the wagons for transportation as and when required. 5.2 Refer note no 22 to financial statements in respect of charge created against borrowings. 5.3 Refer note 46 dealing with coal mine assets. * Figures below rounding off limit 6.1 866750000 Equity shares of Rs 10/- each fully paid up of Electrosteel Steels Limited (ESL) held by the Company as Investment have been pledged in favour of lenders of Electrosteel Steels Limited for securing financial assistance to ESL. 6.2 The company has an Investment of Rs.6,05,92.88 lakhs in equity shares of Electrosteel Steels Limited (ESL), an associate company. ESL was referred to Hon’ble National Company Law Tribunal (NCLT) for Corporate Insolvency Resolution Process (CIRP). The Resolution Professional appointed by NCLT and the Committee of Creditors of ESL had approved a resolution plan, which has also been approved by NCLT, for the acquisition of ESL to a bidder which has been subsequently challenged by another bidder and status quo has been granted and the matter is pending before the Hon’ble National Company Law Appellate Tribunal (NCLAT). Pending decision of NCLAT and in absence of any communication of resolution plan as approved above, the Company’s investment in ESL has been carried forward at its carrying value and no impairment in value thereof has been considered necessary. Further, Advances and Trade receivable amounting to Rs.2,11,51.25 lakhs receivable from ESL along with mortgage of certain land & Building of the company situated at Elavur, Tamilnadu, in the favour of one of the lenders of ESL has been carried forward at their carrying value in view of pendency of resolution proceedings. 6.3 The Company has investment of Rs.30.00 lakhs (previous year Rs.30.00 lakhs) in equity shares and given advance of Rs.7,00.00 lakhs (previous year Rs.7,00.00 lakhs) against equity to Domco Private Limited (DPL), a Company incorporated in India, and has joint control (proportion of ownership interest of the Company being 50%) over DPL along with other venturers (the Venturers) in terms of the Shareholder’s Agreement dated March 27, 2004. The Venturers had filed a petition before the Company Law Board, Principal Bench, New Delhi (CLB) against the Company against operation and mismanagement of the company interalia on various matters including for forfeiture of the Company’s investment in equity shares of the DPL. The matter was later transfered to the Company Law Board, Kolkata Bench and is now being taken up by the National Company Law Tribunal, Kolkata Bench. The Company had also inter alia filed an arbitration proceeding under Arbitration & Conciliation Act, 1996 against recovery of the said amount. Pending final outcome of the above matter, the amounts have been fully provided for in the financial statements. The other venturers since not providing the financial statements of DPL, and thereby necessary disclosures could not be provided in these financial statements. 6.4 (a) The North Dhadhu Coal Block located in the state of Jharkhand was allocated to the Company, Adhunik Alloys & Power Limited (AAP), Jharkhand Ispat Pvt. Ltd. (JPL) and Pawanjay Steel & Power Limited (PSPL) (collectively referred to as venturers) for venturing through North Dhadhu Mining Company Private Limited (NDMCPL), a joint venture company. The Company has joint control (proportion of ownership interest of the Company being 48.98 %) along with other venturers represented by investment of Rs.8,22.81 lakhs in equity shares of NDMCPL. (b) In pursuance of the Order dated September 24, 2014 issued by the Hon’ble Supreme Court of India (the Order) followed by the Ordinance promulgated by the Government of India, Ministry of Law & Justice (legislative department) dated October 21, 2014 (Ordinance) for implementing the Order, The Ministry of Coal, Government of India had issued an order for de-allocation of North Dhadhu Coal Block and deduction of Bank Guarantee of Rs.56,03.00 lakhs issued for the same. The Company’s share in the Bank Guarantee is Rs.27,45.00 lakhs. On a writ petition filed by the Company for quashing the order, stay in the matter together with encashement of bank guarantee has been granted by the Hon’ble High Court of Jharkhand. The company has also submitted its claim for compensation which is awaiting acceptance. Pending final judgement & acceptance of claim and in the view of the management that the compensation to be received in terms of ordinance is expected to cover the cost incurred by the Joint venture company, no provision in the respect of Company’s investment in NDMCPL and amount of Bank Guarantee, has been considered necessary. 6.5 Particulars of investments as required in terms of section 186(4) of the Companies Act, 2013 have been disclosed under note 7 & 13. 6.6 The Company has made an irrevocable decision to consider investment in equity instruments, other than in Subsidiaries , Associates and Joint ventures not held for trading to be recognized at FVTOCI. 7.1 Security deposits include Rs.5,57.50 lakhs ( previous year Rs.5,22.66 lakhs) with private limited companies in which directors are interested as a member / director, Rs.2,00.18 lakhs ( previous year Rs.1,98.68 lakhs) with related parties. Also include Rs.9,99.35 lakhs (previous year Rs.1,10.70 lakhs) lying with customer interms of agreement/ order towards supplies of goods. 8.1 Capital advances includes Rs. 5.27 lakhs (previous year Rs. 5.27 lakhs) paid to related party (Refer note no. 54). 8.2 Including loans and advance to employees amounting to Rs. 1.93 lakhs (previous year Rs. 2.11 lakhs). 9.1. Refer note no. 27.1 to Financial Statements in respect of charge created against borrowings. 10.1 Balances of Trade Receivables including for Turnkey Contracts, Trade payable and Advances are subject to confirmation/reconciliation and adjustments in this respect are carried out as and when amounts thereof, if any are ascertained. 10.2 Refer note no. 27.1 to Financial Statements in respect of charge created against borrowings. 11.1 Includes bank balance of Rs.11,02.52 lakhs (previous year Rs.15,90.41 lakhs) in respect of External Commercial Borrowings loan pending utilisation for intended use. 11.2 Refer note no. 27.1 to Financial Statements in respect of charge created against borrowings. 12.1 Fixed Deposits with banks include Fixed Deposit of Rs.1,25,68.46 lakhs (previous year Rs.61,66.88 lakhs) have been pledged with Banks against guarantee issued by them. 12.2 Refer note no. 27.1 to Financial Statements in respect of charge created against borrowings. 13.1 Include Rs.16,22.12 lakhs (previous year Rs.3,95.27 lakhs) lying with customer interms of agreement/order towards supplies of goods. 13.2 Movement of Allowances for doubtful advances 13.3 Refer note no. 27.1 to Financial Statements in respect of charge created against borrowings. 14.1 Includes Rs.161.43 lakhs (previous year Nil) receivable from Directors of the company towards recovery of excess remuneration paid. 14.2 Refer note no. 27.1 to Financial Statements in respect of charge created against borrowings. 15.1 The above advances have been given for general corporate purpose. Refer note no.54 and 58 15.2 Refer note no.27.1 to Financial Statements in respect of charge created against borrowings. 16.1 The Company has only one class of shares referred to as equity shares having a par value of Re 1/-. Each holder of equity shares is entitled to one vote per share. 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 of their shareholding. 16.2 Reconciliation of the number of equity shares outstandings 17.1 Refer Statement of changes in Equity for movement in balances of reserves 17.2 Capital Reserve The reserve was created mainly on account of forfeiture of warrants convertible into equity shares. 17.3 Securities Premium Reserve Securities Premium Reserve represents the amount received in excess of par value of securities and is available for utilisation as specified under Section 52 of Companies Act, 2013. 17.4 General Reserve The reserve arises on transfer portion of the net profit pursuant to the provisions of Companies Act. 17.5 Debenture Redemption Reserve Debenture Redemption Reserve is required to be created out of the profits available for payment of dividend in terms of Section 71 of the Companies Act, 2013, which is equal to 25% of the face value of the debentures issued and outstanding. This reserve will be released on redemption of the debentures. 17.6 Retained Earnings Retained earnings generally represents the undistributed profit/ amount of accumulated earnings of the company. This includes Rs. 7,76,12.03 lakhs (previous year Rs. 7,60,45.52 lakhs) which is not available for distribution as these are represented by changes in carrying amount of Property, Plant and Equipments and Investment in associates being measured at fair value as on the date of transition as deemed cost. 17.7 Other Comprehensive Income Other Comprehensive Income (OCI) represent the balance in equity for items to be accounted under OCI and comprises of the following: i) Items that will not be reclassified to profit and loss a. The company has elected to recognise changes in the fair value of non-current investments(other than in subsidiaries, associates and joint ventures) in OCI. This reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value. The company transfers amounts from this reserve to retained earnings when the relevant equity securities are disposed. b. The actuarial gains and losses arising on defined benefit obligations have been recognised in OCI. ii) Items that will be reclassified to profit and loss. a. This Reserve represents the cumulative effective portion of changes in fair value of currency swap that are designated as cash flow hedge are recognised in OCI. This is reclassified to statement of Profit and Loss. 17.8 Subsequent to Balance Sheet date, the Board of Directors has recommended a dividend of Re.0.30 per share to be paid on fully paid equity shares in respect of the financial year ended March 31, 2018. This equity dividend is subject to approval by shareholders at the ensuing Annual General Meeting and has not been included as a liability in these financial statements. The total estimated equity dividend to be paid is Rs.1070.87 lakhs and the dividend distribution tax thereon amounts to Rs. 220.12 lakhs. 18.1.1 11.75% Non Convertible Debentures (privately placed) is to be secured by first pari-passu charge on company’s Property, Plant and Equipment and other intangible assets (immovable and movable) including land and buildings both present and future other than assets located at Elavur. These debentures were allotted on March 7, 2017 and are redeemable in 20 equal quarterly instalments at the end of 5th quarter from the date of allotment. However, there is a Put and Call option available to the investor / issuer which can be exercised at the end of three years from the date of allotment and every 12 months thereafter. 18.1.2 12.00% Non Convertible Debentures (privately placed) is to be secured by second pari-passu charge on company’s Property, Plant and Equipment and other intangible assets (immovable and movable) including land and buildings both present and future other than assets located at Elavur. These debentures were allotted on March 7, 2017 and are redeemable in 16 equal quarterly instalments at the end of 9th quarter from the date of allotment. However, there is a Put and Call option available to the investor / issuer which can be exercised at the end of three years from the date of allotment and every 12 months thereafter. 18.1.3 11.00% Non Convertible Debentures (privately placed) are secured by second pari-passu charge on company’s Property, Plant and Equipment and other intangible assets (immovable and movable) including land and buildings both present and future other than assets located at Elavur. These debentures were allotted on July 5, 2013 and are redeemable at par at the end of 5th year from the date of allotment. 18.2.1 External Commercial Borrowings of USD1,39.00 million is repayable in 12 semi annual instalments from August 29, 2015. The outstanding as on March 31, 2018 is Rs.4,27,13.70 lakhs (previous year Rs.6,12,91.49 lakhs). The interest rate ranges from 6M Libor 400 to 500 basis points. External Commercial Borrowings is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future of the Company other than assets located at Elavur. 18.2.2 FCNR Loan of USD16.62 million is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future of the Company other than assets located at Elavur and Vadgaon(Pune). FCNR Loan is repayable in 25 equal quarterly instalments starting from Dec, 2016. The interest rate ranges from 3M Libor 275 to 325 basis points. The outstanding as on March 31, 2018 is Rs.79,67.81 lakhs (previous year Rs.95,47.90 lakhs). 18.2.3 Rupee Term Loan of Rs.50,00.00 lakhs from bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future of the Company other than assets located at Elavur and Vadgaon (Pune). Rupee Term Loan is repayable in 25 equal quarterly instalments starting from July, 2017. The interest rate ranges from 9.00% p.a to 10.00% p.a. The outstanding as on March 31, 2018 Rs.40,25.95 lakhs (previous year Rs.44,95.09 lakhs). 18.2.4 Rupee Term Loan of Rs.2,00,00.00 lakhs from bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future of the Company other than assets located at Elavur. Term Loan is repayable in 28 quarterly instalments starting from June,2015. The interest rate ranges from 12.50% p.a to 13.50% p.a. The outstanding as on March 31, 2018 is Rs.1,87,25.96 lakhs (previous year Rs.1,91,05.01 lakhs) 18.2.5 Rupee Term Loan of Rs.40,00.00 lakhs from bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future of the Company other than assets located at Elavur and Vadgaon (Pune). Rupee Term Loan is repayable in 16 equal quarterly installments starting from Dec, 2015. The interest rate ranges from 10.50% p.a to 12.00% p.a. The outstanding as on March 31, 2018 is Rs.14,83.45 lakhs (previous year Rs.24,56.77 lakhs) 18.3.1 Term Loan of Rs.50,00.00 lakhs from a financial institution is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future of the Company other than assets located at Elavur. Term Loan is repayable in 24 equal quarterly installments starting from July, 2016. The interest rate ranges from 11.00% p.a to 12.00% p.a. The outstanding as on March 31, 2018 is Rs.35,31.87 lakhs (previous year Rs.43,60.56 lakhs) 18.4.1 Term Loan of Rs.41,00.00 lakhs from a financial institution is repayable in 16 quarterly instalments starting from June, 2018. The interest rate ranges from 11.00% p.a to 12.00 % p.a. The outstanding as on March 31, 2018 is Rs.41,00.00 lakhs (previous year Rs.41,00.00 lakhs) 18.4.2 Term Loan of Rs.33,00.00 lakhs from a financial institution is repayable in 16 quarterly instalments starting from March, 2018. The interest rate ranges from 11.00% p.a to 12.00 % p.a. The outstanding as on March 31, 2018, is Rs.24,28.98 lakhs ( previous year Rs.25,11.48 lakhs) 18.4.3 Term Loan of Rs.25,00.00 lakhs from a financial institution is repayable in 16 quarterly instalments starting from March, 2019. The interest rate ranges from 11.00% p.a to 12.00 % p.a. The outstanding as on March 31, 2018, is Rs.25,00.00 lakhs ( previous year NIL) 18.5 The outstanding balances disclosed in Note no. 22.1 to 22.4 are based on the amortised cost in accordance with Ind AS 109 “Financial Instruments”. 19.1 Provision for Mines closure and restoration charges are made in terms of statutory obligations specified for the purpose and deposited in the Escrow account in terms of the stipulation made by Ministry of Coal, for Mines closure Plan. In view of cancellation of allotment of coal mines, no further provision has been considered necessary. (Refer note 16 and 46 ) 19.2 Movement in Mine closure and Restoration Obligation provision are provided below: 20.1 Advance from customers amounting to Rs.1,78,47.89 lakhs (previous year Rs. 2,00,32.57 lakhs) received as interest bearing advance for sale of DI Pipes, Fittings and related accessories has been classified and disclosed as aforesaid as per terms of the contract. 21.1 Includes Rs. 11,37.01 lakhs (net) [previous year Rs. 8,44.18 lakhs (net)] being interest received pertaining to Assessment Years 2003-04 to 201112 as the Income Tax Department has filed an appeal before the Kolkata High Court against the order of the the Income Tax Appellate Tribunal, Kolkata and the said appeal is pending. Further includes Rs. 97.55 lakhs (net) (previous year Nil) being interest received pertaining to Assessment Year 2012-13 and Assessment Year 201314 as the Income Tax Department has filed an appeal before the Income Tax Appellate Tribunal, Kolkata against the order of the Commissioner of Income Tax (Appeals) and the said appeal is pending. 22.1 Loans repayable on demand being Working Capital facilities from Banks (both fund based and non fund based) are secured by first pari passu charge by way of joint hypothecation of raw materials, finished goods, work in progress, consumable stores and spares, book debts/receivables and other current and non current assets of the company both present and future. 23.1 Disclosure of Trade payables as required under section 22 of Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, based on the confirmation and information available with the company regarding the status of suppliers. 24.1 Advance from customers amounting to Rs.26,04.34 lakhs (previous year Rs. 24,27.99 lakhs) received as interest bearing and Rs. 4,69.27 lakhs (previous year Nil) received from related party against sale of DI Pipes, Fittings and related accessories has been classified and disclosed as aforesaid as per terms of the contract. 25.1 Other Provisions includes : (a) Provision relating to indirect taxes in respect of proceeding of various excise duty matter amounting to Nil (previous year Rs. 5,00.00 lakhs) (b) Provision relating to disputed customer claims/rebates/demands amounting to Rs. 90.63 lakhs (previous year Rs. 4,76.74 lakhs) 25.2 Movement in other provisions are provided below: 26.1 Includes Rs Nil (previous year Rs.33,58.90 lakhs) representing profit on sale of property situated at Chennai. 27.1 Cost of material consumed includes Rs. 49,74.01 lakhs (previous year Rs.8,67.96 lakhs ) in relation to cost of goods sold for raw materials. 27.2 During the year, the Company has incurred Rs. 1,15.65 lakhs (previous year Rs. 1,02.06 lakhs) in the nature of salary and wages on account of research and development expenses which has been charged to Statement of Profit and Loss. 27.3 During the year, the Company has incurred Rs. 1,56.00 lakhs (previous year Rs.2,10.00 lakhs) on account of Corporate Social Responsibility (CSR) included under Other Miscellaneous Expenses. 27.4 Obligation under leases A. Finance Lease disclosures : The leasehold lands are located at Kashberia, Haldia, East Mednipur, West Bengal and has been classified under finance lease having lease term for a period of 90 years. The net carrying amount of the leasehold land is Rs. 12,11.24 lakhs as at March 31, 2018 (previous year Rs.12,26.81 lakhs). B. Operating Lease disclosures : The Company has certain operating lease arrangements for office accommodations etc. with tenure extending upto 9 yrs. Term of certain lease arrangements include escalation clause for rent on expiry of 36 months from the commencement date of such lease and deposit/ refund of security deposit etc. Expenditure incurred on account of rent during the year and recognized in the Profit and Loss account amounts to Rs. 4,73.52 lakhs ( previous year Rs. 6,09.20 lakhs). 28.1 Reconciliation of Income tax expense for the year with accounting profit is as follows: Taxable Income differs from ‘profit before tax’ as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. Details in this respect are as follows: Fair Valuation Techniques The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate the fair values: The fair value of cash and cash equivalents, current trade receivables and payables, current loans, current financial liabilities and assets and borrowings approximate their carrying amount largely due to the short-term nature of these instruments. The management considers that the carrying amounts of financial assets and financial liabilities recognised at nominal cost/amortised cost in the financial statements approximate their fair values. In respect of non current trade receivables and loans, fair value is determined by using discount rates that reflect the present borrowing rate of the company. A substantial portion of the company’s long-term debt has been contracted at floating rates of interest, which are reset at short intervals. Fair value of variable interest rate borrowings approximates their carrying value subject to adjustments made for transaction cost. In respect of fixed interest rate borrowings, fair value is determined by using discount rates that reflects the present prevailing rates for similar borrowing in the market. Investments (other than Investments in Associates, Joint Venture and Subsidiaries) traded in active market are determined by reference to the quotes from the Stock exchanges as at the reporting date. Quoted Investments for which quotations are not available have been included in the market value at the face value/paid up value, whichever is lower except in case of debentures, bonds and government securities where the net present value at current yield to maturity have been considered. Unquoted investments in shares have been valued based on the historical net asset value as per the latest audited financial statements. The fair value of derivative financial instruments is determined based on observable market inputs including currency spot and forward rates, yield curves, currency volatility etc. These derivatives are estimated by using the pricing models, where the inputs to those models are based on readily observable market parameters, contractual terms, period to maturity, maturity parameters and foreign exchange rates. These models do not contain a high level of subjectivity as the valuation techniques used do not require significant judgement, and inputs thereto are readily observable from market rates. The said valuation has been carried out by the counter party with whom the contract has been entered with and management has evaluated the credit and non-performance risks associated with the counterparties and believes them to be insignificant and not requiring any credit adjustments. Fair value hierarchy The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at balance sheet date: (*) Figures in round brackets ( ) indicate figures as at March 31, 2017 During the year ended March 31, 2018 and March 31, 2017, there were no transfers between Level 1, Level 2 and Level 3. The Inputs used in fair valuation measurement are as follows: Fair valuation of Financial assets and liabilities not within the operating cycle of the company is amortised based on the borrowing rate of the company. Derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are directly or indirectly observable in the marketplace. The inputs used for forward contracts are Forward foreign currency exchange rates and Interest rates to discount future cash flow. Unquoted investments in shares have been valued based on the amount available to shareholder’s as per the latest audited financial statements. There were no external unobservable inputs or assumptions used in such valuation. Derivatives financial assets and liabilities: The Company follows established risk management policies, including the use of derivatives to hedge its exposure to foreign currency fluctuations on foreign currency assets / liabilities. The counter party in these derivative instruments is a bank and the Company considers the risks of non-performance by the counterparty as non-material. d) The company has entered into USD INR Currency Swap to hedge both the principal and interest payments of the borrowing from bank amounting to USD 16.62 Mn. The critical terms of both the hedging instrument (i.e the Full currency swap) and the hedged item (i.e the borrowing) are closely aligned, thereby establishing an economic relationship between them. The Currency Swap is hence designated as hedging instrument in cash flow hedges. As the economic relationship continues to exist, no hedge ineffectiveness arises requiring recognition through statement of profit and loss. The Currency Swap is measured at fair value through Other comprehensive income (OCI). Sale of Financial Assets In the normal course of business, the Company transfers its bill receivables to banks. Under the terms of the agreements, the Company surrenders control over the financial assets and the transfer is with recourse. Under arrangement with recourse, the company is obligated to repurchase the uncollected financial assets, subject to limits specified in the agreement with banks. As at March 31, 2018 and March 31, 2017 the maximum amount of recourse obligation in respect of financial assets are Rs 29,04.98 lakhs and Rs. 13,51.06 lakhs respectively. FINANCIAL RISK FACTORS The Company’s activities are exposed to variety of financial risks. The key financial risks includes market risk, credit risk and liquidity risk. The Company’s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The Board of Directors reviews and approves policies for managing these risks. The risks are governed by appropriate policies and procedures and accordingly financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. MARKET RISK Market risk is the risk or uncertainty arising from possible market fluctuations resulting in variation in the fair value of future cash flows of a financial instrument. The major components of Market risks are currency risk, interest rate risk and other price risk. Financial instruments affected by market risk includes trade receivables, borrowings, investments and trade and other payables. Foreign Currency Risk Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s foreign currency denominated borrowings, trade receivables and trade or other payables. The Company has adopted a comprehensive risk management review system wherein it actively hedges its foreign exchange exposures within defined parameters through use of hedging instruments such as forward contracts, options and swaps. The Company periodically reviews its risk management initiatives and also takes experts advice on regular basis on hedging strategy. Derivative financial assets and liabilities dealing with outstanding derivative contracts and unhedged foreign currency exposure has been detailed in earlier paras. Unhedged foreign currency exposure is primarily on account of long term foreign currency borrowings for which hedge cover is taken as per the policy followed by the company depending upon the remaining period of maturity of the installments falling due for payment. Sensitivity analysis resulting in profit or loss mainly from USD, EURO, GBP & SGD denominated receivables and payables are as follows: Interest rate risk The company’s exposure in market risk relating to change in interest rate primarily arises from floating rate borrowing with banks and financial institutions. Borrowings at fixed interest rate exposes the company to the fair value interest rate risk. The Company has entered into interest rate swap contracts in respect of certain foreign currency borrowings whereby interest at an agreed rate are to be applied on agreed upon principal amount. The company maintains a portfolio mix of fixed and floating rate borrowings. As at March 31, 2018, after taking into account interest rate swaps, approximately 63.57% (March 31, 2017: 60.81%) of the company’s borrowings become fixed rate interest borrowing. Further there are deposits with banks which are for short term period are exposed to interest rate risk, falling due for renewal. These deposits are however generally for trade purposes as such do not cause material implication. With all other variables held constant, the following table demonstrates the impact of the borrowing cost on floating rate portion of loans and borrowings and excluding loans on which interest rate swaps are taken. A decrease in 0.50 basis point in Rupee Loan and 0.25 basis point in Foreign Currency Loan would have an equal and opposite effect on the Company’s financial statements. Other price risk The Company’s equity exposure in Subsidiaries, Associates and Joint Ventures are carried at cost or deemed cost and these are subject to impairment testing as per the policy followed in this respect. The company’s current investments which are fair valued through profit and loss are not material. Accordingly, other price risk of the financial instrument to which the company is exposed is not expected to be material. CREDIT RISK Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables). The management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Major water infrastructure projects are Government funded or foreign aided and the risk involved in payment default is minimum with respect to these customers. Besides, export receivables are primarily from subsidiaries and sales made by them is covered under Credit Insurance. The Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends and ageing of accounts receivable. Individual risk limits are set accordingly and the company obtains necessary security including letter of credits and/or bank guarantee to mitigate. The carrying amount of respective financial assets recognised in the financial statements, (net of impairment losses) represents the Company’s maximum exposure to credit risk. The concentration of credit risk is limited due to the customer base being large and unrelated. Of the trade receivables balance at the end of the year (other than subsidiaries), there are no single customer accounted for more than 10% of the accounts receivable and 10% of revenue as at March 31, 2018 and March 31, 2017. The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables. Receivables from customers are reviewed/evaluated periodically by the management and appropriate provisions are made to the extent recovery is considered to be remote. Financial assets that are neither past due nor impaired Cash and cash equivalents, investment and deposits with banks are neither past due nor impaired. Cash and cash equivalents with banks are held with reputed and credit worthy banking institutions. Financial assets that are past due but not impaired Trade receivables amounts that are past due at the end of the reporting period against which no credit losses has been expected to arise. LIQUIDITY RISK Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company’s objective is to maintain optimum level of liquidity to meet it’s cash and collateral requirements at all times. The company’s assets represented by financial instruments comprising of receivables, and those relating to Parbatpur Coal mines (refer note no. 46) are largely funded by borrowed funds. The company relies on borrowings and internal accruals to meet its fund requirement. The current committed line of credit are sufficient to meet its short to medium term fund requirement. Liquidity and interest risk tables The following tables detail the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows as at balance sheet date : The company has current financial assets which will be realised in ordinary course of business. The Company ensures that it has sufficient cash on demand to meet expected operational expenses. The company relies on mix of borrowings and operating cash flows to meet its need for funds and ensures that it does not breach any financial covenants stipulated by the lender. CAPITAL MANAGEMENT The primary objective of the Company’s capital management is to ensure that it maintains a healthy capital ratio in order to support its business and maximise shareholder value. The Company’s objective when managing capital is to safeguard their ability to continue as a going concern so that they can continue to provide returns for shareholders and benefits for other stake holders. The Company is focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required without where the risk profile of the Company. 29. Post Retirement Employee Benefits The disclosures required under Indian Accounting Standard 19 on ‘‘Employee Benefits’’ are given below : a) Defined Contribution Plans Contribution to Defined Contribution Plan, recognized for the year are as under : b) Defined Benefit Plans The employee’s gratuity fund scheme managed by Life Insurance Corporation of India and ICICI Prudential Life Insurance Company Ltd. is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. Compensated Absences The obligation for compensated absences is recognized in the same manner as gratuity except remeasurement benefit which is treated as part of OCI. The actuarial liability of Compensated Absences (unfunded) of accumulated privileged and sick leaves of the employees of the Company as at March 31, 2018 is given below: Notes : i) Assumptions relating to future salary increases, attrition, interest rate for discount & overall expected rate of return on Assets have been considered based on relevant economic factors such as inflation, market growth & other factors applicable to the period over which the obligation is expected to be settled. The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (projected unit credit method) has been applied as when calculating the defined benefit obligation recognised within the Balance Sheet. 46(a). In pursuance of the Order dated September 24, 2014 issued by the Hon’ble Supreme Court of India (the Order) followed by the Ordinance promulgated by the Government of India, Ministry of Law & Justice (legislative department) dated October 21, 2014 (Ordinance) for implementing the Order, allotment of Parbatpur coal block (coal block/mines) to the Company which was under advanced stage of implementation, had been cancelled w.e.f. April 01, 2015. In terms of the Ordinance, the Company was allowed to continue the operations in the said block till March 31, 2015. Accordingly, the same had been handed over to Bharat Coking Coal Limited (BCCL) as per the direction from Coal India Ltd. (CIL) with effect from April 01, 2015 and the same has been subsequently allotted to Steel Authority of India Limited (SAIL). Following a petition filed by the Company, the Hon’ble High Court at Delhi had pronounced it’s judgement on March 09, 2017. Accordingly based on the said judgement, the Company has claimed Rs.15,31,76.00 lakhs towards compensation against the said coal block now being allotted to SAIL, acceptance whereof is awaited. Aggrieved due to delay in acceptance of claim, on a petition filed by the company before the Hon’ble High Court , the court had directed to ministry of commerce to expedite the matter and the matter has been pending before the court. Pending acceptance of the Company’s claim as above; (i) Rs.12,88,84.11 lakhs incurred pertaining to the coal block till March 31, 2015 after setting off income, stocks etc. there against as per the accounting policy then followed by the company has been continued to be shown as freehold land, capital work in progress, other fixed assets and other respective head of accounts; (ii) Interest and other finance cost for the year ended March 31, 2016 against the fund borrowed and other expenses directly attributable in this respect amounting to Rs. 95,14.74 lakhs has been considered as other recoverable under current assets; and (iii) Compensation of Rs. 83,12.34 lakhs so far received and net realisations against sale of assets, advances etc. amounting to Rs. 654.92 lakhs have been adjusted. Bank guarantee amounting to Rs.9,20.00 lakhs (previous year Rs. 9,20.00 lakhs) has been given against the compensation received. Disclosures of above balances as per Indian Accounting Standard and adjustments arising with respect to above will be given effect to on final acceptance/settlement of the claim. 29(b). Various balances pertaining to Coal Block claim and handing over the same as detailed in different heads of accounts includes : 29(c). Due to reasons stated in note no. 46(a) and pending determination of the amount of the claim, balances under various heads which otherwise would have been measured and disclosed as per the requirements of various Indian Accounting Standard ‘ have been included under various heads as disclosed under note no. 46(b) considering the circumstances and objective of the financial statements. 30(a). Due to delay in grant of forest, environment and other clearences from various authorities and execution of mining lease of an area of 192.50 ha. by the State Government of Jharkhand for iron and manganese ores at Dirsumburu in Kodilabad Reserve Forest, Saranda of West Singhbhum, Jharkhand, the validity period of letter of intent granted in this respect has expired on January 11, 2017. The Company has filed a writ petition before the Hon’ble High Court of Jharkhand on January 10, 2017, praying inter-alia for direction for grant of said lease in favour of the Company. The Hon’ble High Court in its order while observed, being not averse in granting relief with respect to cut off date, has admitted the said petition and fixed the case for further hearing and adjudication. Pending decision of the High Court, Rs. 61,10.38 lakhs so far incurred in connection with these Mines/related facilities, have been carried forward under respective heads of fixed assets, capital work in progress, advances and security deposit. 30(b). Capital work in progress and security deposits includes a sum of Rs. 40,66.42 lacs and Rs. 30.04 lacs respectively towards construction of railway siding in Haldia, West Bengal. The railways authorities have withdrawn permission for the railways siding which is contested by the company. The company is also exploring alternate avenues to utilise the siding and hence carried at book value. 31. Capital work in progress includes plant and equipments and other assets amounting to Rs.3,22,13.31 lakhs (previous year Rs. 3,28,51.74 lakhs) under installation and capital and other expenditure incured pending completion thereof. (refer note no. 46 and 47). 32. The expenses incurred for projects/assets during the construction/mine development period are classified as “Pre-operative Expenses” pending capitalization are included under capital work in progress and will be allocated to the assets on completion of the project/assets. Consequently expenses disclosed under the respective head are net of amount classified as preoperative expenses by the Company (refer note no. 46 and 47). The details of these expenses are as follows : 33. As regards construction contracts in progress as on March 31, 2018, aggregate amount of costs incurred and recognised profit (less recognized losses) upto the year end (to the extent ascertained by the management), aggregate amount of advances received and aggregate amount of retentions are Nil, Nil and Rs 1,28.41 lakhs respectively.(previous year are Rs 25,00.99 lakhs, Rs 20,59.55 lakhs and Rs 1,14.24 lakhs respectively). 34.(i) The amount of contract revenue recognised as revenue Rs.1,64.21 lakhs (previous year Rs.50.80 lakhs). Note : The Company’s pending litigations comprises of claim against the company and proceedings pending with Taxation/ Statutory/ Government Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, and disclosed contingent liabilities, where applicable, in its financial statements. The company does not expect the outcome of these proceedings to have a material impact on its financial position. Future cash outflows, if any, in respect of (a) to (e), and (h) above is dependent upon the outcome of judgments/ decisions. ** Pre Goods & Service Tax (GST), the Company was enjoying certain benefits under Industrial Promotion scheme of state government. Post GST, pending notifications by the state government, on prudent basis, the company has not recognised any income under the scheme for the period July 01, 2017 to March 31, 2018. D. Terms and conditions of transactions with related parties a) The transactions with related parties have been entered at an amount which are not materially different from those on normal commercial terms. b) The amounts outstanding are unsecured and will be settled in cash and cash equivalent. No guarantees have been given or received. c) The remuneration of directors is determined by the Nominations & Remuneration Committee having regard to the performance of individuals and market trends. 35.1 In respect of the above parties, there is no provision for doubtful debts as on March 31,2018 and no amount has been written off or written back during the year in respect of debt due from/to them. 35.2 The above related party information is as identified by the management. 35.3 Details of Loans, Investments and Guarantees covered u/s 186(4) of the Companies Act, 2013 : a) Details of Loans and Investments are given under the respective heads (Refer Note no. 7, 13 and 19.2) b) Details of Corporate Guarantee/ Standby Letter of Credit given by the Company are as follows : 36. The company operates mainly in one business segment viz Pipes being primary segment and all other activities revolve around the main activity. The secondary segment is geographical, information related to which is given as under : 37. Post the applicability of Goods and Service Tax (GST) with effect from July 01, 2017, revenue from operations is disclosed net of GST. Accordingly, the revenue from operations and other expenses for the year ended March 31, 2018 are not comparable with the previous periods presented in the Financial Statements. The impact of the same however is not significant. 38. The company has opted for continuing accounting policy in respect of exchange difference arising on reporting of long term foreign currency monetary items in accordance with Ind AS 101 “First time adoption of Indian Accounting Standards”. Accordingly, during the year ended 31st March, 2018 the net exchange difference of Rs. 7.12 lakhs [previous year Rs. 1,24.08 lakhs (net credit)] on foreign currency loans have been adjusted in the carrying amount of fixed assets/capital work in progress. The unamortised balance is Rs. 2,66,33.54 lakhs (previous year Rs. 2,68,19.56 lakhs) 39. The Board of Directors of the Company, at its meeting held on August 11, 2014 had approved the Scheme of Amalgamation (“the Scheme”) of its wholly owned subsidiary, Mahadev Vyapaar Private Limited with the Company with effect from April 1, 2014 (“Appointed Date”). Mahadev Vyapaar Private Limited had filed an application before the Hon’ble High Court at Calcutta, which has sanctioned the said Scheme. The application filed by the Company before the Hon’ble High Court at Orissa will be taken by the National Company Law Tribunal, Kolkata Bench (“NCLT”) as per Notification no.S.O. 3677(E) dated December 7, 2016 and Rule 3 of Companies (Transfer of Pending Proceedings) Rules, 2016. The said application is yet to be transferred to NCLT. No effect of the Scheme has therefore been given in these financial statements. 40. These financial statements have been approved by the Board of Directors of the Company on 15th May 2018 for issue to the shareholders for their adoption. 40.1 The previous year’s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Mar 31, 2017 1. Corporate Information Electrosteel Castings Limited (‘the company’) is a public limited company in India having its corporate office in Kolkata in the State of West Bengal and registered office at Rajgangpur, District: Sundergarh in the State of Odisha and is engaged in the manufacture and supply of Ductile Iron (DI) Pipes, Ductile Iron Fittings (DIF) and Cast iron (CI) Pipes as its core business and produces and supplies Pig Iron in the process. It also produces Metallurgic Coke, Sinter and Power for captive consumption. The company caters to the needs of Water Infrastructure Development. The Company’s shares are listed on the National Stock Exchange of India Limited and BSE Limited. 2. Statement of Compliance and Recent Pronouncements 3. Statement of Compliance TThe Company excepting as stated in Note 46(c) and 47 has adopted Indian Accounting Standards (referred to as “Ind AS”) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) read with Section 133 of the Companies Act, 2013 (“the Act”) with effect from April 1, 2016 and therefore Ind ASs issued, notified and made effective till the financial statements are authorized have been considered for the purpose of preparation of these financial statements. These are the Company’s first Ind AS Standalone Financial Statements and the date of transition to Ind AS as required has been considered to be April 1, 2015. The financial statement up to the year ended March 31, 2016, were prepared under the historical cost convention on accrual basis in accordance with the Generally Accepted Accounting Principles and Accounting Standards as prescribed under the provisions of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014 then applicable (Previous GAAP) to the Company. Previous period figures in the Financial Statements have been recasted/restated to make it comparable with current year’s figure. In accordance with Ind AS 101-”First Time adoption of Indian Accounting Standards” (Ind AS 101), the Company has presented (Note No. 59(a)), a reconciliation of Shareholders’ equity as given earlier under Previous GAAP and those considered in these accounts as per Ind AS as at March 31, 2016, and April 1, 2015 and also the Net Profit as per Previous GAAP and that arrived including Other Comprehensive Income under Ind AS for the year ended March 31, 2016.The mandatory exceptions and optional exemptions availed by the Company on First-time adoption have been detailed in Note No. 59(b) of the financial statement. 4. Recent Pronouncements In March 201 7, Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 201 7, notifying amendments to the Ind AS 7 ‘Statement of Cash flows’ and Ind AS 102, ‘Share - Based Payment’ which are applicable w.e.f. 1st April, 2017. The amendment to Ind AS 7 “Statement of Cash Flows” requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes. The effect of this amendment on the financial statements of the Company is being evaluated. The amendment to Ind AS 102 “Share Based Payment” provides specific guidance to measurement of cash-settled share based payment transaction and share based payment transaction with a net settlement feature for withholding tax obligations. As the Company has not issued any stock options plans this amendment does not have any impact on the financial statements of the Company. 3. Critical accounting judgments, assumptions and key sources of estimation and uncertainty The preparation of the financial statements in conformity with the measurement principle of Ind AS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Differences between the actual results and estimates are recognized in the year in which the results are known / materialized and, if material, their effects are disclosed in the notes to the financial statements. Application of accounting policies that require significant areas of estimation, uncertainty and critical judgments and the use of assumptions in the financial statements have been disclosed below. The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are discussed below : 6. Depreciation / amortization and impairment on property, plant and equipment / intangible assets Property, plant and equipment and intangible assets are depreciated/ amortized on straight-line /written down value basis over the estimated useful lives (or lease term if shorter) in accordance with Schedule II of the Companies Act, 2013, taking into account the estimated residual value, wherever applicable. The company reviews its carrying value of its Tangible and Intangible Assets whenever there is objective evidence that the assets are impaired. In such situation asset’s recoverable amount is estimated which is higher of asset’s or cash generating units (CGU) fair value less cost of disposal and its value in use. In assessing value in use the estimated future cash flows are discounted using pre-tax discount rate which reflect the current assessment of time value of money. In determining fair value less cost of disposal, recent market realisations are considered or otherwise in absence of such transactions appropriate valuations are adopted. The Company reviews the estimated useful lives of the assets regularly in order to determine the amount of depreciation / amortization and amount of impairment expense to be recorded during any reporting period. This reassessment may result in change estimated in future periods. 7. Impairment on Investments in Subsidiaries, Associates and Joint Ventures Investments in subsidiaries, associates and Joint Ventures are been carried at cost or deemed cost. The company has tested for impairment at year end based on the market value where the shares are quoted, P/E ratio of similar sector company along with premium/discount for nature of holding and Net Asset Value computed with reference to the book value/ projected discounted cash flow of such company in respect of unquoted investments. 8. Arrangements containing leases and classification of leases The Company enters into service / hiring arrangements for various assets / services. The determination of lease and classification of the service / hiring arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee’s option to purchase and estimated certainty of exercise of such option, proportion of lease term to the asset’s economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialized nature of the leased asset. 9. Claims and Compensation Claims including insurance claims are accounted for on determination of certainity of realisation thereof. Compensation receivable against acquisition of coal mines (Refer Note no. 46) pending final acceptance or settlement thereof even though has not been given effect to, as amount expected to be realised in this respect has been considered to be covering the carrying amount of relevant assets and other recoverables. 10. Impairment allowances on trade receivables The Company evaluates whether there is any objective evidence that trade receivables are impaired and determines the amount of impairment allowance as a result of the inability of the customers to make required payments. The Company bases the estimates on the ageing of the trade receivables balance, credit-worthiness of the trade receivables and historical write-off experience. If the financial conditions of the trade receivable were to deteriorate, actual write-offs would be higher than estimated. 11. Income taxes Significant judgment is required in determination of taxability of certain income and deductibility of certain expenses during the estimation of the provision for income taxes. 12. Defined benefit obligation (DBO) Critical estimate of the DBO involves a number of critical underlying assumptions such as standard rates of inflation, mortality, discount rate, anticipation of future salary increases etc. as estimated by Independent Actuary appointed for this purpose by the Management. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses. 13. Provisions and Contingencies Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability requires the application of judgement to existing facts and circumstances, which can be subject to change. Management judgment is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/litigations/ against the Company as it is not possible to predict the outcome of pending matters with accuracy. The carrying amounts of provisions and liabilities and estimation for contingencies are reviewed regularly and revised to take account of changing facts and circumstances. 14. The Gross Block as on the transition date i.e. April 01, 2015 includes certain Property, Plant and Equipment i.e. freehold land and building which have been valued by an Independent valuer and considered as “deemed cost” as per the provision of Ind AS 101 “First-time Adoption of Indian Accounting Standards”- refer note no. 59. 15 Property, Plant and Equipments includes Rs. 4,17.94 lakhs (March 31, 2016 : Rs. 4,22.21 lakhs and April 1, 2015 : Rs. 4,26.47 lakhs) being contribution for laying the power line, the ownership of which does not vest with the company. 16. Railway Siding represents the cost of construction of the assets for company’s use over the specified period. 17 Leasehold Land of NIL (March 31, 2016 : Rs. 2,40.00 lakhs and April 1, 2015 : Rs. 2,40.00 lakhs) is pending execution of lease agreement and registration thereof. 18. Freehold land includes Rs. 3,35.81 lakhs (March 31, 2016 : Rs. 3,35.81 lakhs and April 1, 2015 : Rs. 3,35.81 lakhs) aquired for coal mines in respect of which the execution of conveyance deeds is pending (Refer Note no. 46). 19. Other adjustments includes NIL (March 31, 2016 : Rs. 44.37 lakhs) being interest capitalised during the year and Rs. (1,24.08) lakhs (March 31, 2016 : Rs. 3,02.29 lakhs) representing foreign exchange fluctuation. 20. Land with factory buildings of Rs. 2,97,11.81 lakhs (March 31, 2016 : Rs. 2,97,56.08 lakhs and April 1, 2015 : Rs. 2,98,21.78 Lakhs) at Elavur plant of the Company are mortgaged in the favour of lender to Electrosteel Steel limited, an associate of the Company. 21. Refer note no. 22 to financial statements in respect of charge created against borrowings. 22. Also refer note no. 46 dealing with coal mine assets and note no. 48 in respect of Iron and manganese Ore mine. 23. The Gross Block as on the transition date i.e. April 01, 2015 given herein above represents previous GAAP written down value of Other Intangible assets considered as “deemed cost” as per the provision of Ind AS 101 “First-time Adoption of Indian Accounting Standards”- refer note no. 59. 24. Right to use Wagon represents cost incurred in connection with wagons procured under “Wagon Investment Scheme” and handed over to railway authorities for their normal operations against priority over availability of the wagons for transportation as and when required. 25. Refer note no. 22 to financial statements in respect of charge created against borrowings. 26. Also refer note no. 46 dealing with coal mine assets. 27. 86,67,50,000 Equity shares of Rs. 10/- each fully paid up of Electrosteel Steels Limited(ESL) held by the Company as Investment have been pledged in favour of lenders of Electrosteel Steels Limited for securing financial assistance to ESL. 28. The Company’s investments in ESL, an Associate as required in terms has been carried at Rs. 6,05,92.88 lakhs. ESL is passing through financial stringency and therefore debt and other restructuring proposal are under consideration by lenders, final outcome whereof is awaited. Pending this, Company’s investment in the said associate measured at fair value on transition date considered as deemed cost, has been carried as above and no further impairment in value thereof has been considered necessary. 29. The Company has investment of Rs. 30 lakhs (March 31, 2016 : Rs. 30 lakhs and April 1, 2015 : Rs. 30 lakhs) in equity shares and given advance of Rs. 7,00 lakhs (March 31, 2016 : Rs. 7,00 lakhs and April 1, 2015 : Rs. 7,00 lakhs) against equity to Domco Private Limited (DPL), a Company incorporated in India, and has joint control (proportion of ownership interest of the Company being 50%) over DPL along with other venturers (the Venturers) in terms of the Shareholder’s Agreement dated March 27, 2004. The Venturers had filed a petition before the Company Law Board, Principal Bench, New Delhi (CLB) against the Company against operation and mismanagement of the company interalia on various matters including for forfeiture of the Company’s investment in equity shares of the DPL. The matter was later transfered to the Company Law Board, Kolkata Bench and is now being taken up by the National Company Law Tribunal, Kolkata Bench. The Company had also inter alia filed an arbitration proceeding under Arbitration & Conciliation Act, 1996 against recovery of the said amount. Pending final outcome of the above matter, the amounts have been fully provided for in the financial statements. The other venturers since not providing the financial statements of DPL, and thereby necessary disclosures could not be provided in these financial statements. 30. (a) The North Dhadhu Coal Block located in the state of Jharkhand was allocated to the Company, Adhunik Alloys & Power Limited (AAP), Jharkhand Ispat Pvt. Ltd. (JPL) and Pawanjay Steel & Power Limited (PSPL) (collectively referred to as venturers) for working through North Dhadhu Mining Company Private Limited (NDMCPL), a joint venture company. The Company has joint control (proportion of ownership interest of the Company being 48.98 %) along with other venturers represented by investment of Rs. 8,22.81 lakhs in equity shares of NDMCPL. (refer note no. 47) (b) The Ministry of Coal, Government of India had issued an order for de-allocation of North Dhadhu Coal Block and deduction of Bank Guarantee of Rs. 56,03.00 lakhs issued for the same. The Company’s share in the Bank Guarantee is Rs. 27,45.00 lakhs. On a writ petition filed by the Company for quashing the order, stay has been granted by the Hon’ble High Court of Jharkhand. Pending final judgement, no provision in the respect of Company’s investment in NDMCPL and amount of Bank Guarantee, has been considered necessary. (refer note no. 47) 31. Rainbow Steels Limited, a company incorporated in Uttar Pradesh is under liquidation as per Ministry of Corporate Affairs. In absence of the financial statements of the said Company, the carrying amount has been assumed to be the fair value and no impairment in value thereof has been considered necessary. 32. Particulars of investments as required in terms of section 186(4) of the Companies Act, 2013 have been disclosed under note 7 & 13. 33. Details of Subsidiaries, Associates and Joint Ventures in accordance with Ind AS 112 “Disclosure of interests in other entities” : 34. The Company as on the transition date i.e. April 01, 2015 fair valued its Investment in Srikalahasthi Pipes Limited and Electrosteel Steels Limited, as valued by an Independent valuer and considered as “deemed cost” as per the provision of Ind AS 101 “First-time Adoption of Indian Accounting Standards”- Refer Note no. 59. 35. The Company has made an irrevocable decision to consider equity instruments not held for trading to be recognized at FVTOCI. 36. Security deposits include Rs. 5,22.66 lakhs (March 31, 2016 : Rs. 4,67.82 lakhs and April 1, 2015 : Rs. 4,18.85 lakhs) with private limited companies in which directors are interested as a member / director and Rs. 1,94.00 lakhs (March 31, 2016 : Rs. 1,94.00 lakhs and April 1, 2015 : Rs. 2,03.00 lakhs) with related parties. 37. Capital advances includes Rs. 5.27 lakhs (March 31, 2016 : Rs. 5.27 lakhs and April 1, 2015 : Rs. 5.27 lakhs) paid to related party (Refer note no. 55). 38. Including loans and advance to employees amounting to Rs. 2.11 lakhs (March 31, 2016 : Rs. 5.77 lakhs and April 1, 2015 : Rs. 14.21 lakhs). 39. Refer note no. 27.1 to Financial Statements in respect of charge created against borrowings. 40 Quoted Investments for which quotations are not available have been included in the market value at the face value/paid up value, whichever is lower except in case of debentures, bonds and government securities where the net present value at current yield to maturity have been considered. 41. Refer note no. 7.6 for particulars of investments. 42. Balances of Trade Receivables including for Turnkey Contracts, Work-in-progress, Creditors and Advances are subject to confirmation/ reconciliation and adjustments in this respect are carried out as and when amounts thereof, if any are ascertained. 44. Refer note no. 27.1 to Financial Statements in respect of charge created against borrowings. 45. Refer note no. 27.1 to Financial Statements in respect of charge created against borrowings. 46. Fixed Deposits with banks include Fixed Deposit of Rs. 61,66.88 lakhs (March 31, 2016 : Rs. 9,04.23 lakhs and April 1, 2015 : Rs. 31,07.27 lakhs) including NIL (March 31, 2016 : Rs. 0.50 lakhs and April 1, 2015 : Rs. 0.54 lakhs) disclosed under Other Non-Current Assest have been lodged with Banks against guarantee issued by them. 47. Includes Fixed Deposits of NIL (March 31, 2016 NIL and April 1, 2015 : Rs. 95,16.64 lakhs) and bank balance of Rs. 15,90.41 lakhs (March 31, 2016: Rs.17,35.86 lakhs and April 1, 2015 : NIL) in respect of External Commercial Borrowings loan pending utilisation for intended use. 48. Refer note no. 27.1 to Financial Statements in respect of charge created against borrowings. 49. Includes Rs. 16,67.45 lakhs (March 31, 2016 : Rs. 15,05.45 lakhs and April 01, 2015 : Rs. 9,78.83 lakhs) lying with customers in terms of agreement/ orders with/from customers. 50. Movement of Allowances for doubtful Advances. 51. Refer note no.27.1 to Financial Statements in respect of charge created against borrowings. 52. Refer note no.27.1 to Financial Statements in respect of charge created against borrowings. 53. Refer note no.27.1 to Financial Statements in respect of charge created against borrowings. 54 Disclosure of Loans and Advances as per the Regulation 34(3) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) are as follows : 55 All the above advances have been given for general corporate purpose. In respect of advance given to Mahadev Vyapaar Pvt. Ltd., reference should be made to note no. 58. 56. The Company has only one class of shares referred to as equity shares having a par value of Rs. 1/-. Each holder of equity shares is entitled to one vote per share. 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 of their shareholding. 57. Reconciliation of the number of equity shares outstandings 58. Shareholders holding more than 5% equity shares 59. Refer Statement of changes in Equity for movement in balances of reserves. 60. Capital Reserve Capital Reserve comprises of : 61. Securities Premium Reserve Securities Premium Reserve represents the amount received in excess of par value of securities and is available for utilisation as specified under Section 52 of Companies Act, 2013. 62. General Reserve The general reserve is created from time to time by appropriating profits from retained earnings. The general reserve is created by a transfer from one component of equity to another and accordingly it is not reclassified to the Statement of profit and loss. 63. Debenture Redemption Reserve Debenture Redemption Reserve is required to be created out of the profits available for payment of dividend in terms of Section 71 of the Companies Act, 2013, which is equal to 25% of the face value of the debentures issued and outstanding. This reserve will be released on redemption of the debentures. 64. Retained Earnings Retained earnings generally represents the undistributed profit/ amount of accumulated earnings of the company. This includes Rs. 7,60,45.52 lakhs (March 31, 2016 : Rs. 7,76,42.06 lakhs and April 1, 2015 : Rs. 7,81,88.23 lakhs) which is not available for distribution as these are represented by changes in carrying amount of Property, Plant and Equipments and Investment in associates being measured at fair value as on the date of transition as deemed cost. 65. Other Comprehensive Income Other Comprehensive Income (OCI) represent the balance in equity for items to be accounted under OCI and comprises of the following: i) Items that will not be reclassified to profit and loss a. The company has elected to recognise changes in the fair value of investments(other than in subsidiaries, associates and joint ventures) in OCI. This reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value. The company transfers amounts from this reserve to retained earnings when the relevant equity securities are disposed. b. The actuarial gains and losses arising on defined benefit obligations have been recognised in OCI. ii) Items that will be reclassified to profit and loss. a. This Reserve represents the cumulative effective portion of changes in fair value of currency swap that are designated as cash flow hedge are recognised in OCI. This is reclassified to statement of Profit and Loss. 66. Subsequent to Balance Sheet date, the Board of Directors has recommended a dividend of Rs. 0.50 per share to be paid on fully paid equity shares in respect of the financial year ended March 31, 2017. This equity dividend is subject to approval by shareholders at the enshuing Annual General Meeting and has not been included as a liability in these financial statements. The total estimated equity dividend to be paid is Rs.17,84.78 lakhs and the dividend distribution tax thereon amounts to Rs. 3,63.34 lakhs. 67. 11.75% Non Convertible Debentures (privately placed) is to be secured by first pari-passu charge on company’s Property, Plant and Equipment and other intangible assets (immovable and movable) including land and buildings both present and future other than assets located at Elavur. These debentures were allotted on March 7, 2017 and are redeemable in 20 equal quarterly instalments at the end of 5th quarter from the date of allotment. However, there is a Put and Call option available to the investor / issuer which can be exercised at the end of three years from the date of allotment and every 12 months thereafter. 68. 12% Non Convertible Debentures (privately placed) is to be secured by second pari-passu charge on company’s Property, Plant and Equipment and other intangible assets (immovable and movable) including land and buildings both present and future other than assets located at Elavur. These debentures were allotted on March 7, 2017 and are redeemable in 16 equal quarterly instalments at the end of 9th quarter from the date of allotment. However, there is a Put and Call option available to the investor / issuer which can be exercised at the end of three years from the date of allotment and every 12 months thereafter. 69. 11% Non Convertible Debentures (privately placed) are secured by second pari-passu charge on company’s Property, Plant and Equipment and other intangible assets (immovable and movable) including land and buildings both present and future other than assets located at Elavur. These debentures were allotted on July 5, 2013 and are redeemable at par at the end of 5th year from the date of allotment. 70. 10.75% Non Convertible Debentures (privately placed) were secured by first pari-passu charge on company’s Property, Plant and Equipment and other intangible assets (immovable and movable) including land and buildings both present and future other than assets located at Elavur and excluding furniture and fixture, vehicles and other intangible assets. These debentures were allotted on April 11, 2012 and have been fully redeemed during the year. 71. 12.50% Non Convertible Debentures (privately placed) was secured by second pari-passu charge on company’s Property, Plant and Equipment and other intangible assets (immovable and movable) including land and buildings both present and future other than assets located at Elavur. These debenture were fully reedemed during the year ended March 31, 2016. 72. External Commercial Borrowings of USD 77.50 million was repayable in 3 annual instalments of 33.25% in July, 2013, 33.25% in July, 2014 & 33.50% in July, 2015. The outstanding as on March 31, 2017 is NIL (March 31, 2016 : NIL and April 1, 2015 : Rs. 1,62,25.26 lakhs). External Commercial Borrowings of USD 139.00 million is repayable in 12 semi annual instalments from August 29, 2015. The outstanding as on March 31, 2017 is Rs 6,12,91.49 lakhs (March 31, 2016 : Rs. 7,17,87.18 lakhs and April 1, 2015 : Rs. 8,68,68.05 lakhs). The interest rate ranges from 6M Libor 400 to 500 basis points. External Commercial Borrowings is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future of the Company other than assets located at Elavur. 73. FCNR Loan of USD 16.62 million is to be secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future of the Company other than assets located at Elavur. FCNR Loan is repayable in 25 equal quarterly instalments starting from Dec, 2016. The interest rate ranges from 3M Libor 275 to 325 basis points. The outstanding as on March 31, 2017 is Rs. 95,47.90 lakhs (March 31, 2016 : Rs. 1,05,33.72 lakhs and April 1, 2015 : NIL). 74. Rupee Term Loan of Rs. 50,00.00 lakhs from bank is to be secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future of the Company other than assets located at Elavur and Vadgaon (Pune). Rupee Term Loan is repayable in 25 equal quarterly instalments starting from July, 2017. The interest rate ranges from 10.00% p.a to 11.00% p.a. The outstanding as on March 31, 2017 is Rs. 44,95.09 lakhs (March 31, 2016 : NIL and April 1, 2015 : NIL) 75. Rupee Term Loan of Rs. 2,00,00.00 lakhs from bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future of the Company other than assets located at Elavur. Term Loan is repayable in 28 quarterly instalments starting from June, 2015. The interest rate ranges from 12.50% p.a to 13.50% p.a. The outstanding as on March 31, 2017 is Rs. 1,91,05.01 lakhs (March 31, 2016 : Rs. 1,94,85.98 lakhs and April 1, 2015 : Rs. 1,98,68.71 lakhs) 76. Rupee Term Loan of Rs. 40,00.00 lakhs from bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future of the Company other than assets located at Elavur and Vadgaon (Pune). Rupee Term Loan is repayable in 16 equal quarterly installments starting from Dec,2015. The interest rate ranges from 10.50% p.a to 12.00% p.a. The outstanding as on March 31, 2017 is Rs. 24,56.77 lakhs (March 31, 2016 : Rs. 34,19.31 lakhs and April 1, 2015 : Rs. 40,00.00) 77. Term Loan of Rs. 50,00.00 lakhs from a financial institution is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future of the Company other than assets located at Elavur. Term Loan is repayable in 24 equal quarterly installments starting from July, 2016. The interest rate ranges from 12.00% p.a to 13.00% p.a. The outstanding as on March 31, 2017 is Rs. 43,60.56 lakhs (March 31, 2016 : Rs. 49,80.28 lakhs and April 1, 2015 : Rs. 49,73.94 lakhs) 78. Term Loan of Rs. 39,54.00 lakhs from a financial institution is to be secured by way of second pari-passu charge on all movable Property, Plant and Equipment and other intangible assets and Current Assets, both present and future of the Company. The interest rate ranges from 14.00% p.a to 14.50% p.a. The outstanding as on March 31, 2017 is Nil (March 31, 2016 : Rs. 34,40.87 lakhs and April 1, 2015 : Rs. 39,26.34 lakhs). The said loan has been fully repaid during the year. 79. Term Loan of Rs. 1,00,00.00 from a financial institution was secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future of the Company other than assets located at Elavur. The outstanding as on March 31, 2017 is NIL (March 31, 2016 : NIL and April 1, 2015 : Rs. 23,51.51 lakhs). The said loan has been fully paid during the previous year. 80. Term Loan of Rs. 41,00.00 lakhs from a financial institution is repayable in 16 quarterly instalments starting from June, 2018. The interest rate ranges from 11.00% p.a to 12.00 % p.a. The outstanding as on March 31, 2017 is 41,00.00 (March 31, 2016 : NIL and April 1, 2015 : NIL) 81. Term Loan of Rs. 33,00.00 lakhs from a financial institution is repayable in 16 quarterly instalments starting from March, 2018. The interest rate ranges from 11.00% p.a to 12.00 % p.a. The outstanding as on March 31, 2017 is Rs. 25,11.48 lakhs (March 31, 2016 : NIL and April 1, 2015 : NIL). 82. Term Loan of Rs. 42,00.00 lakhs from a financial institution has been fully repaid during the year. The interest rate ranges from 11.50% p.a to 12.25% p.a. The outstanding as on March 31, 2017 is NIL (March 31, 2016 : Rs 42,00.00 lakhs and April 1, 2015 : NIL). 83. The outstanding balances disclosed in Note no. 22.1 to 22.4 are based on the amortised cost in accordance with Ind AS 109 “Financial Instruments”. 84. Provision for Mines closure and restoration charges are made in terms of statutory obligations specified for the purpose and deposited in the Escrow account in terms of the stipulation made by Ministry of Coal, for Mines closure Plan. (Refer note 16 and 46). 85. Movement in Mine closure and Restoration Obligation provision are provided below : 86. Deferred Tax Liabilities The following is the analysis of deferred tax (assets)/liabilities presented in the Balance Sheet : 87. Advance from Customers amounting to Rs. 2,24,60.56 lakhs (March 31, 2016 : Rs. 1,65,62.50 lakhs and April 1, 2015 : NIL (including Rs. 24,27.99 lakhs (March 31, 2016 : Rs. 17,91.76 lakhs and April 1, 2015 : NIL shown under current liabilities))) received as interest bearing advance for export of DI Pipes, Fittings and related accessories has been classified and disclosed as aforesaid as per terms of the contract. 88. Loans repayable on demand being Working Capital facilities from Banks (both fund based and non fund based) are secured by first pari passu charge by way of joint hypothecation of raw materials, finished goods, work in progress, consumable stores and spares, book debts/receivables and other current assets of the company both present and future. 89. Fixed Deposit amounting to NIL (March 31, 2016 : NIL and April 1, 2015 : Rs. 30,00.00 lakhs) are pledged with banks for availing working capital facilities. 90. Disclosure of Trade payables as required under section 22 of Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, based on the confirmation and information available with the company regarding the status of suppliers. 91. Including acceptances of Rs. 24,49.58 lakhs (March 31, 2016 : Rs. 21,17.11 lakhs and April 1, 2015 : Rs. 4,71.04 lakhs). 92. The same is not due for payment to investor education and protection fund. 93. Other Provisions includes : (a) Provision relating to indirect taxes in respect of proceeding of various excise duty matter amounting to Rs. 5,00 lakhs (March 31, 2016 : Rs. 5,00.00 lakhs and April 1, 2015 : Rs. 5,00.00 lakhs). (b) Provision relating to disputed customer claims/rebates/demands amounting to Rs. 4,76.74 lakhs (March 31, 2016 : Rs. 2,10.00 lakhs and April 1, 2015 : Rs. 2,10.00 lakhs). 94. Movement in other provisions are provided below : 95. Includes Rs. 10,14.09 lakhs being interest received pertaining to Assessment Year 2003-04 and from Assessment Year 2005-06 to 2008-09 as the refund and the aforesaid amount has been disputed by the Income Tax Department and the matter was pending before Income Tax Appellate Tribunal (ITAT) for which adjustment pending appeal effect to be given by the Income Tax authorities will be carried on receipt of assessment order. The ITAT during the year has passed the order for these years, however the appeal effect to the aforesaid orders is yet to be given by the Income Tax Department. 96.Includes Rs.33,58.90 lakhs (March 31, 2016 : NIL) representing profit on sale of property situated at Chennai. 97. Finance costs includes Rs. 35,00.64 lakhs (March 31, 2016 : NIL) in respect of External Commercial Borrwoings pertaining to Coal mines which have been taken over and alloted to SAIL as stated in note no. 46 below. 98. During the year, the Company has incurred Rs. 1,02.06 lakhs (March 31, 2016 : Rs. 93.59 lakhs) on account of research and development expenses which has been charged to Statement of Profit and Loss. 99. During the year, the Company has incurred Rs. 2,10.00 lakhs (March 31, 2016 : Rs. 2,35.00 lakhs) on account of Corporate Social Responsibility (CSR) included under Other Miscellaneous Expenses. 100. Obligation under leases A. Finance Lease disclosures : The leasehold lands are located at Kashberia, Haldia, East Mednipur, West Bengal and has been classified under finance lease having lease term for a period of 90 years. The net carrying amount of the leasehold land is Rs. 12,26.81 lakhs as at March 31, 2017 (March 31, 2016 : Rs. 12,07.16 lakhs and April 1, 2015 : Rs. 12,22.34 lakhs). B. Operating Lease disclosures : The Company has certain operating lease arrangements for office accommodations etc. with tenure extending upto 9 yrs. Term of certain lease arrangements include escalation clause for rent on expiry of 36 months from the commencement date of such lease and deposit / refund of security deposit etc. Expenditure incurred on account of rent during the year and recognized in the Profit and Loss account amounts to Rs. 6,09.20 lakhs (March 31, 2016 : Rs. 5,93.26 lakhs). 1. Reconciliation of Income tax expense for the year with accounting profit is as follows : Taxable Income differs from ‘profit before tax’ as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. Details in this respect are as follows : 2. FINANCIAL INSTRUMENTS The accounting classification of each category of financial instrument, their carrying amount and fair value are as follows :- Fair Valuation Techniques The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate the fair values : The fair value of cash and cash equivalents, current trade receivables and payables, current financial liabilities and assets and borrowings approximate their carrying amount largely due to the short-term nature of these instruments. The management considers that the carrying amounts of financial assets and financial liabilities recognised at nominal cost/amortised cost in the financial statements approximate their fair values. A substantial portion of the company’s long-term debt has been contracted at floating rates of interest, which are reset at short intervals. Fair value of variable interest rate borrowings approximates their carrying value subject to adjustments made for transaction cost. In respect of fixed interest rate borrowings, fair value is determined by using discount rates that reflects the present borrowing rate of the company. Investments (other than Investments in Associates, Joint Venture and Subsidiaries) traded in active market are determined by reference to the quotes from the Stock exchanges as at the reporting date. Investments in liquid and short-term mutual funds are measured using quoted market prices at the reporting date multiplied by the quantity held. Quoted Investments for which quotations are not available have been included in the market value at the face value/paid up value, whichever is lower except in case of debentures, bonds and government securities where the net present value at current yeild to maturity have been considered. Unquoted investments in shares have been valued based on the historical net asset value as per the latest audited financial statements. The fair value of derivative financial instruments is determined based on observable market inputs including currency spot and forward rates, yield curves, currency volatility etc. These derivatives are estimated by using the pricing models, where the inputs to those models are based on readily observable market parameters, contractual terms, period to maturity, maturity parameters and foreign exchange rates. These models do not contain a high level of subjectivity as the valuation techniques used do not require significant judgement, and inputs thereto are readily observable from market rates. The said valuation has been carried out by the counter party with whom the contract has been entered with and management has evaluated the credit and non-performance risks associated with the counterparties and believes them to be insignificant and not requiring any credit adjustments. During the year ended March 31, 2017 and March 31, 2016, there were no transfers between Level 1, Level 2 and Level 3. The Inputs used in fair valuation measurement are as follows : Fair valuation of Financial assets and liabilities not within the operating cycle of the company is amortised based on the borrowing rate of the company. Derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are directly or indirectly observable in the marketplace. The inputs used for forward contracts are Forward foreign currency exchange rates and Interest rates to discount future cash flow. Fair valuation of Bonds is based on the net present value at current yield to maturity from rates available from FIMMDA. Unquoted investments in shares have been valued based on the amount available to shareholder’s as per the latest audited financial statements. There were no external unobservable inputs or assumption used in such valuation. Derivatives financial assets and liabilities : The Company follows established risk management policies, including the use of derivatives to hedge its exposure to foreign currency fluctuations on foreign currency assets / liabilities. The counter party in these derivative instruments is a bank and the Company considers the risks of non-performance by the counterparty as non-material. (a) The following tables present the aggregate contracted principal amounts of the Company’s derivative contracts outstanding : (b) Un hedged Foreign Currency exposures are as follows : - (c) The table below analyses the derivative financial instruments into relevant maturity groupings based on the remaining period as of the balance sheet date : d) The company has entered into USD INR Currency Swap to hedge both the principal and interest payments of the borrowing from bank amounting to USD 16.62 Mn. The critical terms of both the hedging instrument (i.e the Full currency swap) and the hedged item (i.e the borrowing) are closely aligned, thereby establishing an economic relationship between them. The Currency Swap is hence designated as hedging instrument in cash flow hedges. As the economic relationship continues to exist, no hedge ineffectiveness arises requiring recognition through statement of profit and loss. The Currency Swap is measured at fair value through Other comprehensive income (OCI). e) The following table provides the reconciliation of cash flow hedge reserve : Sale of Financial Assets In the normal course of business, the Company transfers its bill receivables to banks. Under the terms of the agreements, the Company surrenders control over the financial assets and the transfer is with recourse. Under arrangement with recourse, the company is obligated to repurchase the uncollected financial assets, subject to limits specified in the agreement with banks. Accordingly, in such cases the amount received are adjsuted against the receivables. As at March 31, 2017, March 31, 2016 and April 1, 2015, the maximum amount of recourse obligation in respect of transferred financial assets are Rs. 13,51.06 lakhs, Rs. 51,41.86 lakhs and Rs. 69,69.41 lakhs respectively. FINANCIAL RISK FACTORS The Company’s activities and exposed to variety of financial risks. The key financial risks includes market risk, credit risk and liquidity risk. The Company’s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The Board of Directors reviews and approves policies for managing these risks. The risks are governed by appropriate policies and procedures and accordingly financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. MARKET RISK Market risk is the risk or uncertainty arising from possible market fluctuations resulting in variation in the fair value of future cash flows of a financial instrument. The major components of Market risks are currency risk, interest rate risk and other price risk. Financial instruments affected by market risk includes trade receivables, borrowings, investments and trade and other payables. Foreign Currency Risk Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s foreign currency denominated borrowings, trade receivables and trade or other payables. The Company has adopted a comprehensive risk management review system wherein it actively hedges its foreign exchange exposures within defined parameters through use of hedging instruments such as forward contracts, options and swaps. The Company periodically reviews its risk management initiatives and also takes experts advice on regular basis on hedging strategy. Derivative financial assets and liabilities dealing with outstanding derivative contracts and unhedged foreign currency exposure has been detailed in earlier pars. Unhedged foreign currency exposure is primarily on account of long term foreign currency borrowings for which hedge cover is taken as per the policy followed by the company depending upon the remaining period of maturity of the installments falling due for payment. A 5% stregthening of INR would have an equal and opposite effect on the Company’s financial statements. Interest rate risk The company’s exposure in market risk relating to change in interest rate primarily arises from floating rate borrowing with banks and financial institutions. Borrowings at fixed interest rate exposes the company to the fair value interest rate risk. The Company has entered into interest rate swap contracts in respect of certain foreign currency borrowings whereby interest at an agreed rate are to be applied on agreed upon principal amount. The company maintains a portfolio mix of fixed and floating rate borrowings. As at March 31, 2017, after taking into account interest rate swaps, approximately 60.81% (March 31, 2016: 55.68%) of the company’s borrowings become fixed rate interest borrowing. Further there are deposits with banks which are for short term period are exposed to interest rate risk, falling due for renewal. These deposits are however generally for trade purposes as such do not cause material implication. With all other variables held constant, the following table demonstrates the impact of the borrowing cost on floating rate portion of loans and borrowings and excluding loans on which interest rate swaps are taken. A decrease in 0.50 basis point in Rupee Loan and 0.25 basis point in Foreign Currency Loan would have an equal and opposite effect on the Company’s financial statements Other price risk The Company’s equity exposure in Subsidiaries, Associates and Joint Ventures are carried at cost or deemed cost and these are subject to impairment testing as per the policy followed in this respect. The company’s current investments which are fair valued through profit and loss are not material. Accordingly, other price risk of the financial instrument to which the company is exposed is not expected to be material. CREDIT RISK Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables). The management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Major water infrastructure projects are Government funded or foreign aided and the risk involved in payment default is minimum with respect to these customers. Besides, export receivables are primarily from subsidiaries and sales made by them is covered under Credit Insurance. The Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends and ageing of accounts receivable. Individual risk limits are set accordingly and the company obtains necessary security including letter of credits and/or bank guarantee to mitigate. The carrying amount of respective financial assets recognised in the financial statements, (net of impairment losses) represents the Company’s maximum exposure to credit risk. The concentration of credit risk is limited due to the customer base being large and unrelated. Of the trade receivables balance at the end of the year (other than subsidiaries), there are no single customer accounted for more than 10% of the accounts receivable and 10% of revenue as at March 31, 2017 and March 31, 2016. The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables. Receivables from customers are reviewed/evaluated periodically by the management and appropriate provisions are made to the extent recovery there against has been considered to be remote. Financial assets that are neither past due nor impaired Cash and cash equivalents, investment and deposits with banks are neither past due nor impaired. Cash and cash equivalents with banks are held with reputed and credit worthy banking institutions. Financial assets that are past due but not impaired Trade receivables amounts that are past due at the end of the reporting period against which no credit losses has been expected to arise. LIQUIDITY RISK Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company’s objective is to maintain optimum level of liquidity to meet it’s cash and collateral requirements at all times. The company’s assets represented by financial instruments comprising of receivables, and those relating to Parbatpur Coal mines (refer note no. 46) are largely by borrowed funds funded against borrowed funds. The company relies on borrowings and internal accruals to meet its fund requirement. The current committed line of credit are sufficient to meet its short to medium term fund requirement. Liquidity and interest risk tables The following tables detail the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows as at balance sheet date : The company has current financial assets which will be realised in ordinary course of business. The Company ensures that it has sufficient cash on demand to meet expected operational expenses. The company relies on mix of borrowings and operating cash flows to meet its need for funds and ensures that it does not breach any financial covenants stipulated by the lender. Capital Management The primary objective of the Company’s capital management is to ensure that it maintains a healthy capital ratio in order to support its business and maximise shareholder value. The Company’s objective when managing capital is to safeguard their ability to continue as a going concern so that they can continue to provide returns for shareholders and benefits for other stake holders. The Company is focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required without where the risk profile of the Company. 31. Post Retirement Employee Benefits The disclosures required under Indian Accounting Standard 19 on ‘‘Employee Benefits’’ are given below : a) Defined Contribution Plans Contribution to Defined Contribution Plan, recognized for the year are as under : b) Defined Benefit Plans The employee’s gratuity fund scheme managed by Life Insurance Corporation of India and ICICI Prudential Life Insurance Company Ltd. is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. Compensated Absences The obligation for compensated absences is recognized in the same manner as gratuity except remeasurement benefit which is treated as part of OCI. The actuarial liability of Compensated Absences (unfunded) of accumulated privileged and sick leaves of the employees of the Company as at March 31, 2017 is given below : Notes : i) Assumptions relating to future salary increases, attrition, interest rate for discount & overall expected rate of return on Assets have been considered based on relevant economic factors such as inflation, market growth & other factors applicable to the period over which the obligation is expected to be settled. The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (projected unit credit method) has been applied as when calculating the defined benefit obligation recognised within the Balance Sheet. 3(a). In pursuance of the Order dated September 24, 2014 issued by the Hon’ble Supreme Court of India (the Order) followed by the Ordinance promulgated by the Government of India, Ministry of Law & Justice (legislative department) dated October 21, 2014 (Ordinance) for implementing the Order, allotment of Parbatpur coal block (coal block/mines) to the Company which was under advanced stage of implementation, had been cancelled w.e.f. April 01, 2015. In terms of the Ordinance, the Company was allowed to continue the operations in the said block till March 31, 2015. Accordingly, the same had been handed over to Bharat Coking Coal Limited (BCCL) as per the direction from Coal India Ltd. (CIL) with effect from April 01, 2015 and the same has been subsequently alloted to Steel Authority of India Limited (SAIL). Following a petition filed by the Company, the Hon’ble High Court at Delhi has pronounced it’s judgement on March 09, 2017. Accordingly based on the said judgement, the Company has claimed Rs. 15,31.76 lakhs towards compensation against the said coal block now being alloted to SAIL, acceptance whereof is awaited. Pending acceptance of the Company’s claim as above; (i) Rs.12,88,84.11 lakhs incurred pertaining to the coal block till March 31, 2015 after setting off income, stocks etc. there against as per the accounting policy then followed by the company has been continued to be shown as freehold land, capital work in progress, other fixed assets and other respective head of accounts; (ii) Interest and other finance cost for the year ended March 31, 2016 against the fund borrowed and other expenses directly attributable in this respect amounting to Rs. 95,14.74 lakhs has been considered as other recoverable under current assets; and (iii) Compensation of Rs. 83,12.34 lakhs so far received and net realisations against sale of assets, advances etc. amounting to Rs. 6,33.83 lakhs have been adjusted. Adjustments arising with respect to above will be given effect to on final acceptance/settlement of the claim. 4(b). Various balances pertaining to Coal Block claim and handing over the same as detailed in different heads of accounts includes : 5(c). Due to reasons stated in note no. 46(a) and pending determination of the amount of the claim, balances under various heads which otherwise would have been recognised and measured as financial instrument in accordance with Ind AS 109 ‘Financial Instruments’ have been included under various heads as disclosed under note no. 46(b) considering the circumstances and objective of the financial statements. 6. In terms of the Hon’ble Supreme Court Order as referred above, North Dhadhu Coal Block, allotted in joint venture with other companies, has also been cancelled w.e.f. September 24, 2014. The Company barring initial contribution of Rs. 8,22.81 lakhs has not made any further investments in the said joint venture company . In respect of Company’s investment in North Dhadhu Coal Block, allotted in joint venture with other companies, in view of the management, the compensation to be received in terms of the ordinance is expected to cover the cost incurred by the Joint Venture Company and thereby no impairment requiring any adjustments in value of such investment is expected to arise. 7. Due to delay in grant of forest, environment and other clearences from various authorities and execution of mining lease of an area of 192.50 ha. by the State Government of Jharkhand for iron and manganese ores at Dirsumburu in Kodilabad Reserve Forest, Saranda of West Singhbhum, Jharkhand, the validity period of letter of intent granted in this respect has expired on January 11, 2017. The Company has filed a writ petition before the Hon’ble High Court of Jharkhand on January 10, 2017, praying inter-alia for direction for grant of said lease in favour of the Company. The Hon’ble High Court in its order while observed, being not averse in granting relief with respect to cut off date, has admitted the said petition and fixed the case for further hearing and adjudication. Pending decision of the High Court, Rs. 63,33.46 lakhs so far incurred in connection with these Mines/related facilities, have been carried forward under respective heads of fixed assets, capital work in progress and advances. 8. Capital work in progress includes plant and equipments and other assets amounting to Rs. 3,28,51.74 (March 31, 2016 : Rs. 4,01,03.05 lakhs and April 1, 2015 : Rs. 4,01,68.80 lakhs) under installation and capital and other expenditure incured pending completion thereof. (refer note no. 46 and 48) 9. The expenses incurred for projects/assets during the construction/mine development period are classified as”Pre-operative Expenses”pending capitalization are included under capital work in progress and will be allocated to the assets on completion of the project/assets. Consequently expenses disclosed under the respective head are net of amount classified as preoperative expenses by the Company (refer note no. 46 and 48). 10. As regards construction contracts in progress as on March 31, 2017, aggregate amount of costs incurred and recognised profit (less recognized losses) upto the year end (to the extent ascertained by the management), aggregate amount of advances received and aggregate amount of retentions are Rs. 25,00.99 lakhs, Rs. 20,59.55 lakhs and Rs. 1,14.24 lakhs respectively. (March 31, 2016 : Rs. 24,50.75 lakhs, Rs. 18,81.49 lakhs and Rs. 1,04.46 lakhs respectively and April 1, 2015 : Rs. 19,96.74 lakhs, Rs. 15,17.41 lakhs and Rs. 82.78 lakhs respectively). 11 In respect of the above parties ,there is no provision for doubtful debts as on March 31, 2017 and no amount has been written off or written back during the year in respect of debt due from/to them. 12. The above related party information is as identified by the management and relied upon by the auditor. 13. Details of Loans, Investments and Guarantees covered u/s 186(4) of the Companies Act, 2013 : a) Details of Loans and Investments are given under the respective heads (Refer Note no. 7, 13 and 17.2). b) Details of Corporate Guarantee/ Standby Letter of Credit given by the Company are as follows : 14. The company operates mainly in one business segment viz Pipes being primary segment and all other activities revolve around the main activity. The secondary segment is geographical, information related to which is given as under : 15. The company has opted for continuing accounting policy in respect of exchange difference arising on reporting of long term foreign currency monetary items in accordance with Ind AS 101 “First time adoption of Indian Accounting Standards”. Accordingly, during the year ended 31st March 2017 the net exchange difference of Rs. 1,24.08 lakhs (net credit) (previous year Rs. 54,58.89 lakhs) on foreign currency loans have been adjusted in the carrying amount of fixed assets / capital work in progress / claim receivable. The unamortised balance is Rs. 2,68,19.56 lakhs (March 31, 2016 : Rs. 2,71,37.17 lakhs and April 1, 2015 : Rs. 2,18,54.69 lakhs). 16. The Board of Directors of the Company, at its meeting held on August 11, 2014 had approved the Scheme of Amalgamation (“the Scheme”) of its wholly owned subsidiary, Mahadev Vyapaar Private Limited with the Company with effect from April 1, 2014 (“Appointed Date”). Mahadev Vyapaar Private Limited had filed an application before the Hon’ble High Court at Calcutta, which has sanctioned the said Scheme. The application filed by the Company before the Hon’ble High Court at Orissa will be taken by the National Company Law Tribunal, Kolkata Bench (“NCLT”) as per Notification no.S.O. 3677(E) dated December 7, 2016 and Rule 3 of Companies (Transfer of Pending Proceedings) Rules, 2016. The said application is yet to be transferred to NCLT. No effect of the Scheme has therefore been given in these financial statements. a) FIRST-TIME ADOPTION - Mandatory Exceptions and optional Exemptions These financial statements are covered by Ind AS 101, “First Time Adoption of Indian Accounting Standards” as they are the Company’s first Ind AS financial statements for the year ended March 31, 2017. i) Overall principle : a) The Company excepting as detailed under (b) below has prepared the opening balance sheet as per Ind AS as at April 1, 2015 (the transition date) by recognizing all assets and liabilities whose recognition is required by Ind AS, not recognizing items of assets or liabilities which are not permitted by Ind AS, by reclassifying certain items from Previous GAAP to Ind AS as required under the Ind AS, and applying Ind AS in the measurement of recognized assets and liabilities. The accounting policies that the Company used in its opening Ind-AS Balance Sheet may have differed from those that it used for its previous GAAP. The resulting adjustments arising from events and transactions occuring before the date of transition to Ind-AS has been recognized directly in retained earnings at the date of transition. b) Assets and liabilities pertaining to coal mines have been carried under freehold land, capital work in progress, property, plant and equipment and other respective heads of account, pending decision of the court as on the transition date and determination of exact status of the assets and company’s claim there against as detailed in note no. 46, have been k Mar 31, 2016 1 The Company has only one class of shares referred to as equity shares having a par value of Re 1/-. Each holder of equity shares is entitled to one vote per share. 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 of their shareholding. 2 The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. 3 During the year ended 31 March, 2016 the amount of per share dividend recognized as distribution to equity shareholders was Re.0.50. 4 11% Non Convertible Debentures (privately placed) are secured by second pari-passu charge on company’s fixed assets (immovable and movable) including land and buildings both present and future other than assets located at Chennai and Elavur. These debentures were allotted on 5th July, 2013 and are redeemable at par at the end of 5th year from the date of allotment i.e on 5th July 2018. However, there is a Put and Call option available to the issuer / investor which can be exercised at the end of three years from the date of allotment i.e on 5th July 2016. 5 12.50% Non Convertible Debentures (privately placed) were secured by second pari-passu charge on company’s fixed assets (immovable and movable) including land and buildings both present and future other than assets located at Chennai and Elavur. 6 10.75% Non Convertible Debentures (privately placed) are secured by first pari-passu charge on company’s fixed assets (immovable and movable) including land and buildings both present and future other than assets located at Chennai and Elavur and excluding furniture and fixture, vehicles and other intangible assets. These debentures were allotted on 11th April, 2012 and are redeemable at par in three annual installments at the end of 3rd, 4th & 5th year from the date of allotment. 7 External Commercial Borrowings is secured by way of first pari-passu charge on all immovable and movable Fixed Assets, both present and future of the Company other than assets located at Chennai and Elavur. 8 External Commercial Borrowings of USD 77.50 million was repayable in 3 annual installments of 33.25% in July, 2013, 33.25% in July, 2014 & 33.50% in July, 2015. The outstanding as on 31.03.2016 is NIL (previous year Rs. 1,62,25.26 lakhs). External Commercial Borrowings of USD 139.00 million is repayable in 12 semiannual installments from 29th August, 2015. The outstanding as on 31.03.2016 is Rs 7,17,87.18 lakhs (previous year Rs. 8,68,68.05 lakhs). The interest rate ranges from 6M Libor 400 to 500 basis points. 9 FCNR Loan of USD 16.16 million is to be secured by way of first pari-passu charge on all immovable and movable Fixed Assets, both present and future of the Company other than assets located at Chennai and Elavur. FCNR Loan is repayable in 25 equal quarterly installments from Dec, 2016. The interest rate ranges from 3M Libor 275 to 325 basis points. The outstanding as on 31.03.2016 is Rs. 1,10,08.30 lakhs (previous year NIL). 10. Rupee Term Loan of Rs. 1,96,00.00 lakhs (Previous year Rs. 2,00,00.00 lakhs) from bank is secured by way of first pari-passu charge on all immovable and movable Fixed Assets, both present and future of the Company other than assets located at Chennai and Elavur. Term Loan is repayable in 28 quarterly installments starting from June, 2015. The interest rate ranges from 12.50% p.a to 13.25% p.a. 11. Rupee Term Loan of Rs. 35,00.00 lakhs (Previous year Rs. 40,00.00 lakhs) from bank is secured by way of first pari-passu charge on all immovable and movable Fixed Assets, both present and future of the Company other than assets located at Chennai, Elavur and Vadgaon (Pune). Rupee Term Loan is repayable in 16 equal quarterly installments starting from Dec, 2015. The interest rate ranges from 10.50% p.a to 11.00% p.a. 12. Term Loan of NIL (Previous year Rs. 23,52.94 lakhs) from a financial institution was secured by way of first pari-passu charge on all immovable and movable Fixed Assets, both present and future of the Company other than assets located at Chennai and Elavur. 13 Term Loan of Rs. 50,00.00 lakhs (Previous year Rs. 50,00.00 lakhs) from a financial institution is secured by way of first pari-passu charge on all immovable and movable Fixed Assets, both present and future of the Company other than assets located at Chennai and Elavur. Term Loan is repayable in 24 equal quarterly installments starting from July 1, 2016. The interest rate ranges from 12.00% p.a to 13.00% p.a. 14. Term Loan of Rs. 34,59.75 lakhs (Previous year Rs. 39,54.00 lakhs) from a financial institution is to be secured by way of second pari-passu charge on all movable Fixed Assets and Current Assets, both present and future of the Company. The loan is repayable in 54 monthly installments starting from April, 2015. The interest rate ranges from 14.00% p.a to 14.50% p.a. 15. Term Loan of Rs. 42,00.00 lakhs (Previous year NIL) from a financial institution is repayable in 16 monthly installments starting from Dec, 2017. The interest rate ranges from 11.50% p.a to 12.25% p.a. 16. Includes Rs. 10,14.09 lakhs being interest received under section 244A of the Income Tax Act, 1961 pertaining to Assessment Year 2003-04 and from Assessment Year 2005-06 to 2008-09 as the refund and the aforesaid amount has been disputed by the Income Tax Department and the matter is under appeal before Income Tax Appellate Tribunal (ITAT). 17. Other provisions include (a) provision relating to indirect taxes in respect of proceedings of various excise duty matters -carrying amount at the end of the year Rs. 5,00.00 lakhs (previous year Rs. 5,00.00 lakhs). No amount was used and reversed during the year. Outflows in these cases would depend on the final developments/outcomes; (b) Other class of provisions related to disputed customer claims/rebates/demands - carrying amount at the end of the year Rs. 2,10.00 lakhs (previous year Rs. 2,10.00 lakhs). No amount was used and reversed during the year. Notes 18. 86,67,50,000 Equity shares of Rs 10/- each fully paid up of Electro steel Steels Limited aggregating Rs. 8,87,71.31 lakhs (previous year Rs.8,87,71.31 lakhs) held by the Company as Investment have been pledged in favour of Electro steel Steels Limited lenders for securing financial assistance to Electro steel Steels Limited. 19. Electro steel Steels Limited, an associate company is currently passing through financial stringency. Joint Lender Forum (JLF) is contemplating various restructuring and other measures which interalia include restructuring of debts, induction of new promoter etc., final outcome whereof is awaited. Pending this and assessment of change in the status and resulant valuation etc., Company’s Investment in the said associate has been carried at cost. 20. The Company has investment of Rs. 30 Lakhs in equity shares and given advance of Rs. 7,00 Lakhs against equity to Domco Private Limited (DPL), a Company incorporated in India, and has joint control (proportion of ownership interest of the Company being 50%) over DPL along with other venturers (the Venturers). The Venturers had filed a petition before the Company Law Board, Principal Bench, New Delhi (CLB) against the Company on various matters including for forfeiture of the Company’s investment in equity shares of the DPL. The Company had inter alia filed petition before the Hon’ble High Court of Jharkhand at Ranchi. The Hon’ble High Court of Jharkhand at Ranchi upheld the Company’s appeal and decided that the matter would have to be referred for Arbitration, the Venturer has challenged the aforesaid judgment in the Divisional Bench of the Hon’ble High Court of Jharkhand at Ranchi. Further advance of Rs. 7,00 Lakhs recoverable as above has also been referred for arbitration in terms of Shareholders Agreement. Pending final outcome of the matter and since, the other Venture are not providing the financial statements of DPL, and thereby disclosures as regards to contingent liability, capital commitments, if any, aggregate amounts of the assets, liabilities, income and expenses related to the Company’s interest in DPL has not been made in these financial statements. 21. (a) The North Dhadhu Coal Block located in the state of Jharkhand was allocated to the Company, M/s. Adhunik Alloys & Power Limited (AAP), M/s. Jharkhand Ispat Pvt. Ltd. (JPL) and M/s. Pawanjay Steel & Power Limited (PSPL) (collectively referred to as ventures) for working through a joint venture company. Accordingly, North Dhadhu Mining Company Private Limited (NDMCPL), a company in which the Company hasjoint control (proportion of ownership interest of the Company being 48.98 %) along with other ventures was formed. The Company has investment of Rs. 8,22.81 lakhs in equity shares of NDMCPL. (refer note no. 2.33.b) (b) The Ministry of Coal, Government of India had issued an order for de-allocation of North Dhadhu Coal Block and deduction of Bank Guarantee of Rs. 56.03 crores issued for the same. The Company’s share in the Bank Guarantee is Rs 27.45 crores. On a writ petition filed by the Company for quashing the order, stay has been granted by the Hon’ble High Court of Jharkhand. Pending final judgment, no provision is considered necessary in the respect of Company’s investment in NDMCPL and amount of Bank Guarantee. (refer note no. 2.33.b) 22. The company has opted for accounting the exchange difference arising on reporting of long term foreign currency monetary items as per Accounting Standard 11, “The Effects of Changes in Foreign Exchange Rates”. During the year ended March 31, 2016 the net exchange difference of Rs. 54,58.89 lakhs (net debit) (previous year Rs. 42,90.69 lakhs) on foreign currency loans have been adjusted in the carrying amount of fixed assets / capital work in progress / claim receivable. The un-amortized balance is Rs. 2,71,37.17 lakhs (previous year Rs. 2,18,54.69 lakhs). 23. The Board of Directors of the Company in its meeting held on August 11, 2014 has approved the Scheme of Amalgamation (“the Scheme”) of its wholly owned subsidiary, Mahadev Vyapaar Private Limited with the Company with effect from April 1,2014 (“Appointed Date”). The Company has filed an application before Hon’ble High Court of Orissa at Cuttack which is pending for hearing. In respect of the application filed by Mahadev Vyapaar Private Limited before the Hon’ble High Court at Calcutta, the Hon’ble High Court has sanctioned the said Scheme. No effect of the Scheme has been given in the above financial statement of the Company, pending sanction by the Hon’ble High Court of Orissa. 24. Previous year figures have been regrouped / reclassified wherever necessary. Mar 31, 2015 1 10.75% Non Convertible Debentures (privately placed) are secured by first pari-passu charge on company's fixed assets (immovable and movable) including land and buildings both present and future other than assets located at Chennai and Elavur and excluding furniture and fixture, vehicles and other intangible assets. These debentures were allotted on 11th April, 2012 and are redeemable at par in three annual installments at the end of 3rd, 4th & 5th year from the date of allotment. 2 External Commercial Borrowings is secured by way of first pari-passu charge on all immovable and movable Fixed Assets, both present and future of the Company other than assets located at Chennai and Elavur. 3 External Commercial Borrowings of USD 77.50 million is repayable in 3 annual installments of 33.25% in July, 2013, 33.25% in July, 2014 & 33.50% in July, 2015. The outstanding as on 31.03.2015 is Rs. 1,62,25.26 lakhs (previous year Rs.3,09,92.19 lakhs). External Commercial Borrowings of USD 139.00 million is repayable in 12 semi annual installments from 29th August, 2015. The outstanding as on 31.03.2015 is Rs.8,68,68.05 lakhs (previous year Rs.8,32,74.90 lakhs). The interest rate ranges from 6M Libor 250 to 500 basis points. 4 Rupee Term Loan from bank of Rs.2,00,00.00 lakhs (Previous year Rs.2,00,00.00 lakhs) is secured by way of first pari¬passu charge on all immovable and movable Fixed Assets, both present and future of the Company other than assets located at Chennai and Elavur. Term Loan is repayable in 28 quarterly installments starting from June, 2015. The interest rate ranges from 13.00% p.a to 13.50% p.a. 5 Rupee Term Loan from bank of Rs.40,00.00 lakhs (Previous year Rs. nil lakhs) is to be secured by way of first pari-passu charge on all immovable and movable Fixed Assets, both present and future of the Company other than assets located at Chennai, Elavur and Vadgaon (Pune). Term Loan is repayable in 16 equal quarterly installments starting from Dec, 2015. The interest rate ranges from 11.00% p.a to 11.50% p.a. 6 Term Loan from financial institution of Rs. Nil lakhs (Previous year Rs.9,37.50 lakhs) was secured by way of first pari¬passu charge on all immovable and movable Fixed Assets, both present and future of the Company other than assets located at Chennai and Elavur. 7 Term Loan from a financial institution of Rs.23,52.94 lakhs (Previous year Rs.4117.65 lakhs) is secured by way of first pari-passu charge on all immovable and movable Fixed Assets, both present and future of the Company other than assets located at Chennai and Elavur. Term Loan is repayable in 17 equal quarterly installments starting from 30th December, 2011. The interest rate ranges from 12.00% p.a to 12.50% p.a. 8 Term Loan from a financial institution of Rs. 50,00.00 lakhs (Previous year Rs. nil lakhs) is secured by way of first pari¬passu charge on all immovable and movable Fixed Assets, both present and future of the Company other than assets located at Chennai and Elavur. Term Loan is repayable in 24 equal quarterly installments starting from 01st July, 2016. The interest rate ranges from 12.00% p.a to 13.00% p.a. 9 Term Loan from a financial institution of Rs.39,54.00 lakhs (Previous year Rs.39,54.00 lakhs) is to be secured by way of second pari-passu charge on all movable Fixed Assets and Current Assets, both present and future of the Company. The loan is repayable in 54 monthly installments starting from April, 2015. The interest rate ranges from 14.00% p.a to 14.50% p.a. 10 Contingent Liabilities not provided for in respect of: Amount Rs. in lakhs As at 31.03.2015 As at 31.03.2014 a)Various show cause notices/demands issued/ raised, which in the opinion of the management are not tenable and are pending with various forum / authorities: i) Sales Tax 75,21.84 75,48.52 ii) Excise, Custom Duty and Service tax [net of provision of Rs.5,00.00 lakhs(previous year Rs.5,00.00 lakhs)] 1,34,41.52 1,34,00.78 iii) Income Tax 1,14.48 28.45 b) Employees State Insurance Corporation has raised demand for contribution in respect of Gross Job Charges for the year 2001-02, 2003-04 and March'08 to January'10. In the opinion of the management demand is adhoc and arbitrary and is not sustainable legally. 92.51 92.51 c) Demand of Tamilnadu Electricity Board disputed by the Company. 8.20 8.20 d) During the year 1994 UPSEB had raised demand for electricity charges by revising the power tariff schedule applicable to the Company retrospectively from Feb'86. In the opinion of the management the revised power tariff is not applicable to the Company and accordingly the Company disputed the demand and the matter is pending before Hon'ble High Court at Allahabad. 2,61.74 2,61.74 e) Corporate guarantee issued to banks by the Company on behalf of : (i) Subsidiary Companies 74,71.77 1,09,07.91 (ii) Others 21,61.17 - f) Standby Letter of Credit issued by banks on behalf of the Company in favour of (i) Subsidiary Companies 1,16,38.81 2,04,13.61 g) Guarantees given by banks on behalf of the Company 89,61.87 1,50,88.70 h) Bills Discounted with Banks. 69,69.41 67,47.88 i) The Company has disputed downward revision in the prices affected by the purchaser subsequent to sale of certain specified materials. In the opinion of the management and also on the merit of the case, as advised legally no liability is likely to arise. The matter is subjudice and pending final judgement the amount payable, if any is not ascertainable presently. Note: Future cash outflows, if any, in respect of (a) to (d), and (i) above is dependent upon the outcome of judgments / decisions. 11 The company has opted for accounting the exchange difference arising on reporting of long term foreign currency monetary items as per Accounting Standard 11, "The Effects of Changes in Foreign Exchange Rates". During the year ended 31st March 2015 the net exchange difference of Rs. 4290.69 lakhs (net debit)(previous year Rs.12326.02 lakhs) on foreign currency loans have been adjusted in the carrying amount of fixed assets / Capital work in progress. The unamortised balance is Rs. 21854.69 lakhs (previous year Rs.17769.41 lakhs). 12 The Board of Directors of the Company has approved the Scheme of Amalgamation (Scheme) of its wholly owned subsidiary, Mahadev Vyapaar Private Limited with the Company with effect from April 1, 2014. No effect of the Scheme has been given in the Financial Statements pending receipt of necessary approvals. 13 Previous year figures have been regrouped / reclassified whereever necessary. Mar 31, 2014 1.1.1 The Company has only one class of shares referred to as equity shares having a par value of Re 1/-. Each holder of equity shares is entitled to one vote per share. 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 of their shareholding. 1.1.2 During the year, the Company has issued 1,70,64,617 Equity Shares to Promoters/Promoters group of the Company on Preferential basis as approved by the members of the Company at the Extraordinary General Meeting held on 23.11.2013 1.1.3 The dividend propsed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. 1.1.4 During the year ended March 31, 2014 the amount of per share dividend recognized as distribution to equity shareholders was Re 0.65. 1.2.1 The Company through Qualified Institutional Placements had issued 33568312 warrant at a price of Rs. 3 each, entitling the holder to 1 (one) equity share. As per terms and conditions of the issue, the warrant holders have an option to convert, warrant into equity at any time on or after three years and upto five years from the date of allotment (i.e. 08/02/2010) at exercise price of Rs. 59.58 per share. The warrant issue price aggregating to Rs. 10,07.05 lakhs, being non adjustable/non refundable has been credited to Capital Reserve. 1.3.1 11% Non Convertible Debentures (privately placed) are secured by second pari-passu charge on company''s fixed assets (immovable and movable) including land and buildings both present and future other than assets located at Chennai and Elavur. These debentures were allotted on 5th July, 2013 and are redeemable at par at the end of 5th year from the date of allotment i.e 5th July, 2018. However, there is a Put and Call option available to the issuer / investor which can be exercised at the end of three years from the date of allotment i.e 5th July, 2013. 1.3.2 12.50% Non Convertible Debentures (privately placed) are secured by second pari-passu charge on company''s fixed assets (immovable and movable) including land and buildings both present and future other than assets located at Chennai and Elavur. These debentures were allotted on 5th July, 2013 and are redeemable at par at the end of 5th year from the date of allotment i.e 5th July, 2018. However, there is a Put and Call option available to the issuer / investor which can be exercised at the end of 30 months from the date of allotment i.e 5th July, 2013 and every quarter thereafter. 1.3.3 10.75% Non Convertible Debentures (privately placed) are secured by first pari-passu charge on company''s fixed assets (immovable and movable) including land and buildings both present and future other than assets located at Chennai and Elavur and excluding furniture and fixture, vehicles and other intangible assets. These debentures were allotted on 11th April, 2012 and are redeemable at par in three equal annual installments at the end of 3rd, 4th & 5th year from the date of allotment i.e 11th April, 2012. However, there is a Put and Call option available to the issuer / investor which can be exercised at the end of three years from the date of allotment i.e 11th April, 2015. 1.3.4.1 External Commercial Borrowing is secured by way of first pari-passu charge on all immovable and movable Fixed Assets, both present and future of the Company other than assets located at Chennai and Elavur. 1.3.4.2 External Commercial Borrowings of USD 77.50 million is repayable in 3 annual installments of 33.25% in July, 2013, 33.25% in July, 2014 & 33.50% in July, 2015. The outstanding as on 31.03.2014 is Rs. 3,09,92.19 lakhs (previous year Rs. 4,20,82.50 lakhs). External Commercial Borrowings of USD 139.00 million is repayable in 12 semi annual installments from 29th August, 2015. The outstanding as on 31.03.2014 is Rs. 7,54,77.00 lakhs (previous year Rs. 8,32,74.90 lakhs). The interest rate ranges from 6M Libor 250 to 500 basis points. 1.3.5 Rupee Term Loan from bank is to be secured by way of first pari-passu charge on all immovable and movable Fixed Assets, both present and future of the Company other than assets located at Chennai and Elavur. Term Loan is repayable in 28 quarterely installments starting from June, 2015. The interest rate ranges from 13.00% p.a to 13.50% p.a. 1.3.6.1. Term loan from a financial institution of Rs. 1,50,00 lakhs and Rs. 1,00,00 lakhs are secured by way of first pari-passu charge over the movable fixed assets, lands and other immovable properties of the Company both present and future other than assets located at Chennai and Elavur. 1.3.6.2 Term loan of Rs. 1,50,00 lakhs is repayable in 16 quarterly equal installments from 14th August, 2010. The outstanding as on 31.03.2014 is Rs. 9,37.50 lakhs (previous year Rs. 46,87.50 lakhs). Term loan of Rs. 1,00,00 lakhs is repayable in 17 quarterly equal installments from 30th December, 2011. The outstanding as on 31.03.2014 is Rs. 41,17.65 lakhs (previous year Rs. 64,70.59 lakhs). The interest rate ranges from 11.00% p.a to 12.50%. p.a. 1.3.6.3 Term Loan of Rs. 39,54 lakhs is to be secured by way of second pari-passu charge on all movable Fixed Assets and Current Assets, both present and future of the Company. The loan is repayable in 54 monthly installments starting from April, 2015. The interest rate ranged from 14.00% p.a to 14.50% p.a. 1.7.1 Loans repayable on demand being Working Capital facilities from banks (both fund based and non fund based) are secured by first pari passu charge by way of joint hypothecation of raw materials, finished goods, work in progress, consumable stores and spares, book debts / receivables and other current assets of the company both present and future. 1.8.1 Including acceptances of Rs.1,49,50.56 lakhs (previous year Rs. nil) 1.8.2 Disclosure of Trade Payables is based on the information available with the company regarding the status of the suppliers as defined under the " Micro, Small and Medium Enterprise Development Act, 2006" (the Act). There are no delays in payment made to such suppliers and there is no overdue amount outstanding as at the balance sheet date. Based on above the relevant disclosures u/s 22 of the Act are as follows: 1.9.1 Other provisions include (a) provision relating to indirect taxes in respect of proceedings of various excise duty matters - carrying amount at the end of the year Rs. 5,00.00 lakhs (previous year Rs. 5,00.00 lakhs). No amount was used and reversed during the year. Outflows in these cases would depend on the final developments/outcomes; (b) Other class of provisions related to disputed customer claims/rebates/demands - carrying amount at the end of the year Rs.2,10.00 lakhs (previous year Rs. 15,00.00 lakhs), Rs.15,00.00 lakhs were reversed during the year. Notes : 1.10.1 866750000 Equity shares of Rs 10/- each fully paid up of Electrosteel Steels Limited aggregating Rs 86675.00 lakhs held by the Company as Investment have been pledged in favour of Electrosteel Steels Limited lenders for securing financial assistance to Electrosteel Steels Limited. 1.10.2 The Company''s investment in Electrosteel Steels Limited being strategic and long term in nature, no provision has been considered necessary with regard to diminution in market value of these investment. 1.10.3 The Company has investment in equity shares of Domco Private Limited (DPL), a Company incorporated in India, and has joint control (proportion of ownership interest of the Company being 50%) over DPL along with other venturers (the Venturers). The Venturers had filed a petition before the Company Law Board, Principal Bench, New Delhi (CLB) against the Company on various matters including for forfeiture of the Company''s investment in equity shares of the DPL. The Company had inter alia filed petition before the Hon''ble High Court of Jharkhand at Ranchi. The Hon''ble High Court of Jharkhand at Ranchi upheld the Company''s appeal and decided that the matter would have to be referred for Arbitration. The Venturer has challenged the aforesaid judgment in the Divisional Bench of the Hon''ble High Court of Jharkhand at Ranchi. Pending final outcome of the matter and since , the other Venturer are not providing the financial statements of DPL, and thereby disclosures as regards to contingent liability, capital commitments, if any, aggregate amounts of the assets, liabilities, income and expenses related to the Company''s interest in DPL has not been made in these financial statements. 2.12.4 (a) The North Dhadhu Coal Block located in the state of Jharkhand was allocated to the Company, M/s. Adhunik Alloys & Power Limited (AAP), M/s. Jharkhand Ispat Pvt. Ltd. (JPL) and M/s. Pawanjay Steel & Power Limited (PSPL) (collectively referred to as venturers) for working through a joint venture company. Accordingly, North Dhadhu Mining Company Private Limited (NDMCPL), a company in which the Company has joint control (proportion of ownership interest of the Company being 48.98 %) along with other venturers was formed. The Company has investment of Rs. 8,22.81 Lakhs in equity shares of NDMCPL. (b) The Ministry of Coal, Government of India had issued an order for de-allocation of North Dhadhu Coal Block and deduction of Bank Guarantee of Rs. 56.03 crores issued for the same. The Company''s share in the Bank Guarantee is Rs 27.45 crores. On a writ petition filed by the Company for quashing the order, stay has been granted by the Hon''ble High Court of Jharkhand. Pending final judgement, no provision is considered necessary in respect of Company''s investment in NDMCPL and amount of Bank Guarantee. 2.13.1 Quoted Investments for which quotations are not available have been included in the market value at the face value/paid up value, whichever is lower except in case of debenture, bonds and government securities where the net present value at current yield to maturity have been considered. 2.13.2 Pledged with lenders against overdraft facility. (refer note no. 2.7.2) 2.14.1 Including loans and advance to employees amounting to Rs. 2.63 lakhs. 2.14.2 In the opinion of the Board of Directors, current assets and loans and advances have the value at which these are stated in the Balance Sheet, unless otherwise stated and adequate provisions for all known liabilities have been made and are not in excess of the amount reasonably required. 2.14.3 Security deposits include Rs. 5,57.50 lakhs (previous year Rs. 5,57.50 lakhs) with private limited companies in which directors are interested as a member / director and Rs.38,22.30 lakhs (previous year Rs.42,46.68 lakhs) with related parties. 2.14.4 Capital advances includes Rs 5.27 lakhs (previous year Rs.5.27 lakhs) paid to related party. 2.17.1 Balances of Trade Receivables including for Turnkey Contracts, Work-in-Progress, Creditors and advances are subject to confirmation/reconciliation and adjustments in this respect are carried out as and when amounts thereof, if any are ascertained. 2.18.1 Fixed Deposits with Banks include Fixed Deposit of Rs. 3,39.71 lakhs (previous year Rs. 20.79 lakhs) lodged with Government Departments, Customers and Bank. 2.18.2 Includes Fixed Deposit of Rs. 1,37,16.64 lakhs ( previous year Rs. 2,08,75.00 lakhs) and Bank Balances of Rs. 50,00.00 lakhs (previous year Rs. 75,00.00 lakhs ) in respect of External Commercial Borrowings loans pending utilisation for intended use. 2.29.3 Miscellaneous expenses include Charity and Donation of Rs. 3,07.70 lakhs (previous year Rs. 2,51.97 lakhs). 2.29.4 The Company has certain operating lease arrangements for office accommodations etc. with tenure extending upto 9 years. Term of certain lease arrangements include escalation clause for rent on expiry of 36 months from the commencement date of such lease and deposit / refund of security deposit etc. Expenditure incurred on account of rent during the year and recognized in the Statement of Profit and Loss amounts to Rs. 4,99.57 lakhs (previous year Rs. 4,31.63 lakhs). 2.29.5 During the year, the Company has incurred Rs. 89.47 lakhs (previous year Rs. 1,13.20 lakhs) on account of research and development expenses which has been charged to Statement of Profit and Loss. 2.30.1 The Company is entitled to MAT credit and accordingly based on evidences MAT credit of Nil (previous year Rs. 1,50.35 lakhs) has been recognised in these financial statements. 2.31 EMPLOYEEBENEFITS The disclosures required under Accounting Standard 15 on ''''Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below: Defined Benefit Scheme The employee''s gratuity fund scheme managed by Life Insurance Corporation of India and ICICI Prudential Life Insurance Company Ltd. is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. Compensated Absences The obligation for compensated absences is recognized in the same manner as gratuity. The actuarial liability of Compensated Absences (unfunded) of accumulated privileged and sick leaves of the employees of the Company as at 31.03.2014 is given below : Notes : i) Assumptions relating to future salary increases, attrition, interest rate for discount & overall expected rate of return on Assets have been considered based on relevant economic factors such as inflation, market growth & other factors applicable to the period over which the obligation is expected to be settled. ii) The Company expects to contribute Rs. 2,00 lakhs (previous year Rs. 2,00 lakhs) to Gratuity fund in 2014-15. 2.33 a. Capital work in progress includes plant and equipments and other assets under installation and capital and other expenditure incured pending completion thereof. b. The expenses incurred for projects/assets during the construction/mine development period are classified as "Pre-operative and Development Expenses" pending capitalization and are included under capital work in progress and will be allocated to the assets on completion of the project/assets. Consequently expenses disclosed under the respective head are net of amount so classified and details of these are as follows. 2.35 As regards construction contracts in progress as on 31.03.2014, aggregate amount of costs incurred and recognised profit (less recognized losses) upto the year end (to the extent ascertained by the management), aggregate amount of advances received and aggregate amount of retentions are Rs. 72,45.48 lakhs, Rs. 4,35.91 lakhs and Rs. 6,18.23 lakhs respectively. (previous year Rs. 1,90,38.15 lakhs, Rs. 1,46.88 lakhs and Rs. 12,68.47 lakhs respectively). 2.37 Contingent Liabilities not provided for in respect of: a) Various show cause notices/demands issued/ raised, which in the opinion of the management are not tenable and are pending with various forum / authorities: i) SalesTax 75,48.52 56,95.24 ii) Excise, Custom Duty and Service tax [net of provision of Rs. 5,00 lakhs (previous year Rs. 5,00 lakhs) 1,34,00.78 1,02,56.29 iii) Income Tax 28.45 42.60 b) Employees State Insurance Corporation has raised demand for contribution in respect of Gross Job Charges for the year 2001-02, 2003-04 and March, 08 to January, 10. In the opinion of the management demand is adhoc and arbitrary andisnotsustainablelegally. 92.51 92.51 c) Demand of Tamilnadu Electricity Board disputed by the Company. 8.20 8.20 d) During the year 1994 UPSEB had raised demand for electricity charges by revising the power tariff schedule applicable to the Company retrospectively from Feb''86. In the opinion of the management the revised power tariff is not applicable to the Company and accordingly the Company disputed the demand and the matter is pending beforeHon''bleHighCourtatAllahabad. 2,61.74 2,61.74 e) Corporate guarantee issued to banks by the Company on behalf of: (i) Subsidiary Companies 1,09,07.91 44,37.91 (ii) Associate Company - 4,52,00.00 f) Standby Letter of Credit issued by banks on behalf of the company in favour of: (i) SubsidiaryCompanies 2,04,13.61 2,37,45.04 g) Guarantees given by banks on behalf of the Company (including Rs. 27,45.47 lakhs referred to in note 2.12.5) 1,50,88.70 1,61,44.87 h) BillsDiscountedwithBanks. 67,47.88 80,33.11 i) The Company has disputed downward revision in the prices affected by the purchaser subsequent to sale of certain specified materials. In the opinion of the management and also on the merit of the case, as advised legally no liability is likely to arise. The matter is subjudice and pending final judgement the amount payable, if any is not ascertainable presently. Note : Future cash outflows, if any, in respect of (a) to (d), and (i) above is dependent upon the outcome of judgments / decisions. 2.38 Related party disclosure as identified by the management in accordance with the Accounting Standard (AS) 18 on "Related Party Disclosures" are as follows : A) Names of related parties and description of relationship 1) Subsidiary Company Electrosteel Europe SA Electrosteel Algerie SPA Electrosteel Castings (UK) Limited Electrosteel USA LLC WaterFab, LLC (100% subsidiary of Electrosteel USA, LLC) Mahadev Vyapaar Private Limted Electrosteel Trading S.A, Spain Singardo International Pte Ltd. Electrosteel Castings Gulf Fze Electrosteel Doha for Trading (LLC) Electrosteel Brasil Ltda. Tubos e Conexoes Duteis 2) Associate Company Lanco Industries Ltd. Electrosteel Steels Limited Electrosteel Thermal Power Ltd. 3) Joint Venture North Dhadhu Mining Company Pvt. Ltd. Domco Private Limited 4) Key Management Personnel (KMP) and their relative Mr. Umang Kejriwal (Managing Director) Mr. Mayank Kejriwal (Joint Managing Director ) Mr. Uddhav Kejriwal (Wholetime Director) Mr. Vyas Mitre Ralli (Wholetime Director) Mr. Mahendra Kumar Jalan (Wholetime Director) Mr. Rama Shankar Singh (Director) till 5th February, 2014 he was Wholetime director of the company Smt. Uma Kejriwal-mother of Mr. Umang Kejriwal-Managing Director and Mr. Mayank Kejriwal - Joint Managing Director Umang Kejriwal (H.U.F) 5) Enterprise where KMP/Relatives of KMP have signifinant influnce or control : Global Exports Ltd. G. K. & Sons Private Limited Badrinath Industries Ltd. Akshay Ispat & Ferro Alloys Pvt. Ltd. Electrocast Sales India Ltd Tulsi Highrise Pvt. Ltd. Wilcox Merchants Pvt. Ltd. Murari Investment & Trading Company Ltd. Electrosteel Thermal Coal Ltd. 2.44 The Company has opted for accounting the exchange difference arising on reporting of long term foreign currency monetary items as per Accounting Standard 11, "The Effects of Changes in Foreign Exchange Rates". During the year ended 31st March 2014 the net exchange difference of Rs.1,23,26.02 lakhs (net debit) on foreign currency loans have been adjusted in the carrying amount of fixed assets / Capital work in progress. The unamortised balance is Rs.1,51,51.66 lakhs (previous year Rs.42,03.89 lakhs). Mar 31, 2013 1.1.1 10.75% Non Convertible Debentures (privately placed) are secured by first pari-passu charge on company''s fixed assets (immovable and movable) including land and buildings both present and future other than assets located at Chennai and Elavur and excluding furniture and fixture, vehicles and other intangible assets. These Debentures were allotted on 11th April, 2012 and are redeemable at par in three equal annual installments at the end of 3rd, 4th & 5th year from the date of allotment i.e. 11th April, 2015. However, there is a Put and Call option available to the issuer / investor which can be exercised at the end of three years from the date of allotment. 1.1.2 9.15% Non Convertible Debentures (privately placed) were secured by second pari-passu charge on Company''s fixed assets (immovable and movable) including land and buildings both present and future other than certain property located at Chennai and Elavur. These Debentures were allotted on 8th February, 2010 and were redeemed during the year. 1.1.1.1 Term loan from a financial institution are secured by way of first pari-passu charge over the movable fixed assets, lands and other immovable properties of the Company both present and future other than assets located at Chennai and Elavur. 1.1.1.2 Term loan of Rs. 15000 lakhs is repayable in 16 quarterly equal installments of Rs. 937.50 lakhs from 14th August 2010 and term loan of Rs. 10000 lakhs is repayable in 17 quarterly equal installments of Rs. 588.23 lakhs from 30th December 2011. The interest rate ranges from 10% to 13%. 1.1.2.1 External Commercial Borrowings of Rs. 42082.50 lakhs is secured by way of first pari-passu charge on all immovable and movable Fixed Assets, both present and future of the Company other than assets located at Chennai and Elavur, and External Commercial Borrowings of Rs. 75477.00 lakhs is secured by way of first pari-passu charge on all immovable and movable Fixed Assets, both present and future of the Company other than assets located at Chennai and Elavur. 1.1.2.2 External Commercial Borrowings of Rs. 42082.50 lakhs is repayable in 3 annual installments of 33.25% in July''2013, 33.25% in July''2014 & 33.50% in July''2015 and external commercial borrowings of Rs. 75477.00 lakhs is repayable in 12 Semi annual installments from 29th August''2015. The interest rate ranges from 6M Libor 200 to 500 bps. 1.2.1 Loans repayable on demand being Working Capital facilities from Banks (both fund based and non fund based) are secured by pari passu charge by way of joint hypothecation of raw materials, finished goods, work in progress, consumable stores and spares, book debts / receivables and other current assets of the Company both present and future. 1.3.1 Including acceptances of Rs. Nil (previous year Rs. 10562.71 lakhs) 1.3.2 Disclosure of Trade payables is based on the information available with the company regarding the status of the suppliers as defined under the " Micro, Small and Medium Enterprise Development Act, 2006" (the Act). There are no delays in payment made to such suppliers and there is no amount outstanding as at the balance sheet date. 1.4.1 Other provisions include (a) provision relating to indirect taxes in respect of proceedings of various excise duty matters - carrying amount at the end of the year Rs. 500.00 lakhs (previous year Rs. 500.00 lakhs). No amount was used and reversed during the year. Outflows in these cases would depend on the final developments/outcomes; (b) Other class of provisions related to disputed customer claims/rebates/demands - carrying amount at the end of the year Rs. 1500.00 lakhs (previous year Rs. nil). 1.5.1 500000000 Equity shares of Rs 10/- each fully paid up of Electrosteel Steels Limited aggregating Rs. 50000.00 lakhs held by the Company as Investment have been pledged in favour of Electrosteel Steels Limited lenders for securing financial assistance to Electrosteel Steels Limited. 1.5.2 The Company''s investment in Electrosteel Steels Limited being strategic and long term in nature, no provision has been considered necessary with regard to diminution in market value of these investment. 1.5.3 The Company has investment in equity shares of Domco Private Limited (DPL), a Company incorporated in India, and has joint control (proportion of ownership interest of the Company being 50%) over DPL along with other venturers (the Venturers). The Venturers had filed a petition before the Company Law Board, Principal Bench, New Delhi (CLB) against the Company on various matters including for forfeiture of the Company''s investment in equity shares of the DPL. The Company had inter alia filed petition before the Hon''ble High Court of Jharkhand at Ranchi,. The Hon''ble High Court of Jharkhand at Ranchi upheld the Company''s appeal and decided that the matter would have to be referred for Arbitration. The Venturer has challenged the aforesaid judgment in the Divisional Bench of the Hon''ble High Court of Jharkhand at Ranchi. Pending final outcome of the matter and since , the other Venturer are not providing the financial statements of DPL, and thereby disclosures as regards to contingent liability, capital commitments, if any, aggregate amounts of the assets, liabilities, income and expenses related to the Company''s interest in DPL has not been made in these financial statements. 1.5.4 (a) The North Dhadhu Coal Block located in the state of Jharkhand was allocated to the Company, M/s. Adhunik Alloys & Power Limited (AAP), M/s. Jharkhand Ispat Pvt. Ltd. (JPL) and M/s. Pawanjay Steel & Power Limited (PSPL) (collectively referred to as venturers) for working through ajoint venture company. Accordingly, North Dhadhu Mining Company Private Limited (NDMCPL), a company in which the Company has joint control (proportion of ownership interest of the Company being 48.98 %) along with other venturers was formed. The Company has investment of Rs. 822.81 Lakhs in equity shares ofNDMCPL. (b) During the year, the Ministry of Coal, Government of India issued an order for de-allocation of North Dhadhu Coal block and deduction of Bank Guarantee of Rs. 56.03 Crores issued for the same. The Company''s share in the Bank Guarantee is Rs 27.45 crores. On a writ petition filed by the Company for quashing the order, stay has been granted by the Hon''ble High Court of Jharkhand. Pending final judgement, no provision is considered necessary in respect of Company''s investment in NDMCPL and amount of Bank Guarantee. 1.6.1 Quoted Investments for which quotations are not available have been included in the market value at the face value/paid up value, whichever is lower except in case of debenture, bonds and government securities where the net present value at current yield to maturity have been considered. 1.7.1 Includes loans and advances to employees. 1.7.2 Includes Rs. Nil (previous year Rs. 234.59 lakhs) paid towards share application money. 1.7.3 In the opinion of the Board of Directors, current assets and loans and advances have the value at which these are stated in the Balance Sheet, unless otherwise stated and adequate provisions for all known liabilities have been made and are not in excess of the amount reasonably required. 1.7.4 Security deposits include Rs. 557.50 lakhs (previous year Rs. 557.50 lakhs) with private limited Companies in which directors are interested as a member / director and Rs. 4246.68 lakhs (previous year Rs. 4246.68 lakhs) with related parties. 1.8.1 Balances of Trade receivables including for Turnkey Contracts, Work-in-progress, Creditors and advances are subject to confirmation/reconciliation and adjustments in this respect are carried out as and when amounts thereof, are ascertained. 1.7.2 ReferNoteNo.2.7 1.9.1 Fixed Deposits with Banks include Fixed Deposit of Rs. 20.79 lakhs (previous year Rs. 10.00 lakhs) lodged with Government Departments, Customers and Bank. 1.9.2 Represents amount lying in Escrow account pursuant to the stipulation made by Ministry of Coal, for Mine Closure Plan and shall be utilised for expenses to be incurred towards closure of the mine. 1.9.3 Miscellaneous expenses include Charity and Donation of Rs. 251.97 lakhs (previous year Rs. 15.78 lakhs). 1.9.4 The Marked-to-Market losses on derivative contract for the year stood at Rs. 96.28 lakhs (previous year Rs. 6861.35 lakhs). Even though such losses have not been determined and accrued during the year, keeping in view the announcement of Institute of Chartered Accountants of India dated March 29, 2008 regarding Accounting for Derivatives, the Company has recognized losses in the Statement of Profit and Loss for the year or capitalised as the case may be. Such losses crystalised during the year have been considered as revenue or capitalised depending upon the nature thereof and resultant excess amount of provision of Rs. 5060.16 lakhs being no longer required have been written back in these financial statements. 1.9.5 The Company has certain operating lease arrangements for office accommodations etc. with tenure extending upto 9 years. Term of certain lease arrangements include escalation clause for rent on expiry of 36 months from the commencement date of such lease and deposit / refund of security deposit etc. Expenditure incurred on account of rent during the year and recognized in the Statement of Profit and Loss amounts to Rs. 431.63 lakhs (previous year Rs. 561.03 lakhs). 1.9.6 During the year, the Company has incurred Rs. 113.20 lakhs (previous year Rs 91.44 lakhs) on account of research and development expenses which has been charged to Statement of Profit and Loss. 1.10.1 The Company is entitled to MAT credit and accordingly based on evidences MAT credit of Rs. 150.35 lakhs (previous year Rs. 700.21) has been recognised in these financial statements. 1.11 As regards construction contracts in progress as on 31.03.2013, aggregate amount of costs incurred and recognised profit (less recognized losses) upto the year end (to the extent ascertained by the management), aggregate amount of advances received and aggregate amount of retentions are Rs. 19038.15 lakhs, Rs. 146.88 lakhs and Rs. 1268.47 lakhs respectively. (previous year Rs. 17961.59 lakhs, Rs. 596.34 lakhs and Rs. 1010.09 lakhs respectively). 1.12 Related party disclosure as identified by the management in accordance with the Accounting Standard (AS) 18 on "Related Party Disclosures" are as follows : A) Names of related parties and description of relationship 1) Subsidiary Company Electrosteel Europe SA Electrosteel Algerie SPA Electrosteel Castings (UK) Ltd. Electrosteel USA LLC WaterFab, LLC (100% subsidiary of Electrosteel USA, LLC) Mahadev Vyapaar Private Ltd. Electrosteel Trading S.A, Spain Singardo International Pte Ltd. Electrosteel Castings Gulf FZE Electrosteel Doha for Trading LLC Electrosteel Brasil Ltda. Tubos e Conexoes Duteis 2) Associate Company Lanco Industries Ltd. Electrosteel Steels Ltd. Electrosteel Thermal Power Ltd. 3) Joint Venture North Dhadhu Mining Company Pvt. Ltd. Domco Private Ltd. 4) Key Management Personnel (KMP) and their relatives Mr. Umang Kejriwal (Managing Director) Mr. Mayank Kejriwal (Joint Managing Director ) Mr. Uddhav Kejriwal (Wholetime Director) Mr. Vyas Mitre Ralli (Wholetime Director) Mr. Mahendra Kumar Jalan (Wholetime Director) Mr. Rama Shankar Singh (Wholetime Director) Smt. Uma Kejriwal-mother of Mr. Umang Kejriwal-Managing Director and Mr. Mayank Kejriwal - Joint Managing Director Umang Kejriwal (H.U.F) 5) Enterprise where KMP/Relatives of KMP have signifinant influnce or control Global Exports Ltd. G.K.& Sons Private Ltd. Badrinath Industries Ltd. Akshay Ispat & Ferro Alloys Pvt. Ltd. Electrocast Sales India Ltd. Tulsi Highrise Pvt. Ltd. Wilcox Merchants Pvt. Ltd. Murari Investment & Trading Company Ltd. Electrosteel Thermal Coal Ltd. 1.13 In accordance with the amendment to AS-11, exchange loss/gain arising on long term foreign currency loans, is being adjusted to the cost of fixed assets. Accordingly, such losses amounting to Rs. 4792.70 lakhs (previous year Rs. 6951.67 lakhs) have been adjusted to Capital work in progress and Fixed assets. During the year, based on clarification issued by Ministry of Corporate Affairs vide its circular 25/2012/09.08.12 , Rs. 534.05 lakhs charged to Statement of Profit and Loss in the previous year has been written back under respective head of account and adjusted to the cost of fixed assets / capital work in progress. 1.14 Previous year figures have been regrouped / reclassified wherever necessary. Mar 31, 2012 1.1.1 The Company has only one class of shares referred to as equity shares having a par value of Re 1/-. Each holder of equity shares is entitled to one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company, after distribution of all preferential amount, in proportion of their shareholding. 1.1.2 The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. 1.1.3 During the year ended 31 March 2012, the amount of per share dividend recognized as distribution to equity shareholders was Re. 0.50 1.2.1 The Company through Qualified Institutional Placements had issued 33568312 warrants at a price of Rs. 3 each, entitling the holder to 1 (one) equity share. As per terms and conditions of the issue, the warrant holders have an option to convert, warrant into equity at any time on or after three years from the date of allotment (i.e. 08/02/2010) and upto five years from the date of allotment (i.e. 08/02/2010) at exercise price of Rs. 59.58 per share. The warrant issue price aggregating to Rs. 1,007.05 lakhs, being non adjustable/non refundable has been credited to Capital Reserve. 1.2.2 Premium on Zero Coupon Convertible Bond has been provided proportionately and accordingly Rs. 519.88 lakhs (out of total redemption premium amounting to Rs. 3,563.48 lakhs) (previous year Rs. 611.29 lakhs, out of total redemption premium amounting to Rs. 3,137.73 lakhs) on this account has been debited to Securities Premium Account. 1.3.1 11.80% Non Convertible Debentures (privately placed) are secured by first pari-passu charge on company's fixed assets (immovable and movable) including land and buildings both present and future other than assets located at Chennai and Elavur. However the Company exercised the put option during the year and re-paid the outstanding amount. 1.3.2 9.15% Non Convertible Debentures (privately placed) are secured by second pari-passu charge on company's fixed assets (immovable and movable) including land and buildings both present and future other than assets located at Chennai and Elavur. These debentures were allotted on 8th February, 2010 and redeemable at par on 8th February, 2013. 1.3.3.1 Term loan from a financial institution are secured by way of first pari-passu charge over the movable fixed assets, lands and other immovable properties of the Company both present and future other than assets located at Chennai and Elavur. 1.3.3.2 Term loan of Rs. 1,50,00 lakhs is repayable in 16 quarterly equal Installments of Rs. 9,37.50 lakhs from 14th August 2010 and term loan of Rs. 1,00,00 lakhs is repayable in 17 quarterly equal installments of Rs. 5,88.23 lakhs from 30th December 2011. The interest rate ranges from 10% to 12%. 1.3.4.1 External Commercial Borrowing of Rs. 3,94,24.25 lakhs is secured by way of first pari-passu charge on all immovable and movable Fixed Assets, both present and future of the Company other than assets located at Chennai and Elavur, and External Commercial Borrowing of Rs. 3,51,00.30 lakhs is to be secured by way of first pari-passu charge on all immovable and movable Fixed Assets, both present and future of the Company other than assets located at Chennai and Elavur. 1.3.4.2 External Commercial Borrowings of Rs. 3,94,24.25 lakhs is repayable in 3 annual installments of 33.25% in July'2013, 33.25% in July'2014 & 33.50% in July'2015 and external commercial borrowings of Rs. 3,51,00.30 lakhs is repayable in 12 Semi annual installments from 29th August'2015. The interest rate ranges from 6M Libor 200 to 500 bps. 1.4.1 Working Capital facilities from Banks (both fund based and non fund based) are secured by pari passu charge by way of joint hypothecation of inventories and book debts, both present and future. 1.5.1 Including acceptances of Rs. 1,05,62.71 lakhs (previous year Rs. 2,39,67.81 lakhs) 1.5.2 Disclosure of Trade payables is based on the information available with the company regarding the status of the suppliers as defined under the " Micro, Small and Medium Enterprise Development Act, 2006" (the Act). There are no delays in payment made to such suppliers and there is no overdue amount outstanding as at the balance sheet date. Based on above the relevant disclosures u/s 22 of the Act are as follows : 1.6.1 Other provisions include (a) provision relating to indirect taxes in respect of proceedings of various excise duty matters - carrying amount at the end of the year Rs. 5,00.00 lakhs and carrying amount at the beginning of the year Rs. 5,00.00 lakhs. No amount was used and reversed during the year. Outflows in these cases would depend on the final developments/outcomes; (b) Other class of provisions related to disputed customer claims/rebates/demands - carrying amount at the end of the year Rs. nil and at the beginning of the year Rs. 28,40.00 lakhs. Amount reversed during the year was Rs. 28,40.00 lakhs. Notes : 1.7.1. Plant and Equipments indudes Rs.8,03.021akhs (Previous year Rs.3,40.87 lakhs) being contribution for laying the Power line, the ownership of which does not vest with the company 1.7.2 Depreciation and amortization for the year includes Rs.11,90.62 lakhs (Previous year Rs. 10,92.69 lakhs) transferred to Pre-operative expenses. 1.7.3 Leasehold Land of Rs.2,04.00 lakhs( Previous Year Rs.2,04.00 lakhs) is pending execution of lease agreement and registration thereof. 1.7.4 Freehold land includes Rs. 1,31.39 lakhs (Previous year Rs.2,05.97 lakhs) in respect of which the execution of conveyance deeds is under process. 1.7.5 Plant and Equipments includes Rs. 24,98.72 lakhs (Previous year Rs. 24,98.72 lakhs) being cost of wagons procured under "Wagon Investment Scheme". 1.7.6 Other adjustment(net) includes Rs. 4,74.39 lakhs(Previous Year 17.70 lakhs) being interest capitalised during the year, Rs. 359.41 lakhs(Previous Year nil) representing foreign exchange fluctuation. 1.7.7. Railway siding includes Rs. 40,35.96 lakhs (Previous year Rs. nil) being amount incurred for construction, the ownership of which does not vest with the company 1.7.8 Land with factory buildings (net block Rs. 61.02 lakhs) at Elavur plant of the Company are mortgaged in the favour of lender to Electrosteel Steel limited, an associate of the Company 1.7.9 Refer note 2.3 and 2.7 1.8.1 500000000 Equity shares of Rs 10/- each fully paid up of Electrosteel Steels Ltd. aggregating Rs. 5,00,00.00 lakhs held by the Company as Investment have been pledged in favour of Electrosteel Steels Ltd. lenders for securing financial assistance to Electrosteel Steels Ltd. 1.8.2 The Company has investment in equity shares of Domco Private Limited (DPL), a Company incorporated in India, and has joint control (proportion of ownership interest of the Company being 50%) over DPL along with other venturers (the Venturers). The Venturers had filed a petition before the Company Law Board, Principal Bench, New Delhi (CLB) against the Company on various matters including for forfeiture of the Company's investment in equity shares of the DPL. The Company had inter alia filed petition before the Hon'ble High Court of Jharkhand at Ranchi,. The Hon'ble High Court of Jharkhand at Ranchi upheld the Company's appeal and decided that the matter would have to be referred for Arbitration. The Venturer has challenged the aforesaid judgment in the Divisional Bench of the Hon'ble High Court of Jharkhand at Ranchi. Pending final outcome of the matter and since, the other Venturer are not providing the financial statements of DPL, disclosures as regards contingent liability and capital commitments, if any, aggregate amounts of each of the assets, liabilities, income and expenses related to the Company's interest in DPL has not been made in these financial statements. 1.8.3 The Company's investment in Electrosteel Steels Limited being strategic and long term in nature, no provision has been considered necessary with regard to diminution in market value of these investment. 1.9.1 Quoted Investments for which quotations are not available have been included in the market value at the face value/paid up value, whichever is lower except in case of debenture, bonds and government securities where the net present value at current yield to maturity have been considered. 1.10.1 Includes loans and advances to employees. 1.10.2 Includes Rs. 2,34.59 lakhs (previous year Rs. 60.98 lakhs) paid towards share application money. 1.10.3 In the opinion of the Board of Directors, current assets and loans and advances have the value at which these are stated in the Balance Sheet, unless otherwise stated and adequate provisions for all known liabilities have been made and are not in excess of the amount reasonably required. 1.10.4 Security deposits include Rs. 5,57.50 lakhs (previous year Rs. 5,57.50 lakhs) with Private Limited Companies in which directors are interested as a member / director. 1.11.1 Balances of Trade receivables including for Turnkey Contracts, Work-in-progress, Creditors and advances are subject to confirmation/reconciliation and adjustments in this respect are carried out as and when amounts thereof, if any are ascertained. 1.12.1 Fixed Deposits with Banks include Fixed Deposit of Rs. 4,96.70 lakhs (previous year Rs. 4,08.28 lakhs) lodged with Government Departments, Customers and Banks. 1.13.1 Includes Rs. 9,97.93 lakhs (previous year Rs. nil) receivable from banks on account of derivative settlement. 1.14.1 Miscellaneous expenses include Charity and Donation of Rs. 15.78 lakhs (previous year Rs. 63.97 lakhs), Rs. nil (previous year Rs. 3,00.00 lakhs) towards relocation of certain assets of Elavur unit. 1.14.2 The Marked-to-Market losses on derivative contract for the year stood at Rs. 68,61.35 lakhs (previous year Rs. 18.26 lakhs). Even though such losses have not been determined and accrued during the year, keeping in view the announcement of Institute of Chartered Accountants of India dated March 29, 2008 regarding Accounting for Derivatives, the Company has recognized losses in the Statement of Profit and Loss for the year. 1.14.3 The Company has certain operating lease arrangements for office accommodations etc. with tenure extending upto 9 yrs. Term of certain lease arrangements include escalation clause for rent on expiry of 36 months from the commencement date of such lease and deposit / refund of security deposit etc. Expenditure incurred on account of rent during the year and recognized in the Statement of Profit and Loss amounts to Rs. 5,61.03 lakhs (previous year Rs. 5,15.86 lakhs). 1.14.4 During the year, the Company has incurred Rs. 91.44 lakhs (previous year Rs 83.26 lakhs) on account of research and development expenses which has been charged to Statement of Profit and Loss. 1.15.1 The Company has provided for Minimum Alternate Tax (MAT). The Company is entitled to MAT credit and accordingly based on evidences MAT credit of Rs. 7,00.21 lakhs (previous year Rs. Nil) has been recognised in this financial statements. Defined Benefit Scheme The employee's gratuity fund scheme managed by Life Insurance Corporation of India and ICICI Prudential Life Insurance Company Ltd. is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. Notes : i) Assumptions relating to future salary increases, attrition, interest rate for discount & overall expected rate of return on Assets have been considered based on relevant economic factors such as inflation, market growth & other factors applicable to the period over which the obligation is expected to be settled. ii) The Company expects to contribute Rs 1,30.00 lakhs (previous year Rs 1,00.00 lakhs) to Gratuity fund in 2012-13. 1.16 The expenses incurred for projects/assets during the construction/mine development period are classified as "Pre-operative Expenses" pending capitalization and are included under capital work in progress and will be allocated to the assets on completion of the project/assets. Consequently expenses disclosed under the respective head are net of amount classified as preoperative expenses by the Company. The details of these expenses are as follows : 1.17 As regards construction contracts in progress as on 31.03.2012, aggregate amount of costs incurred and recognised profit (less recognized losses) upto the year end (to the extent ascertained by the management), aggregate amount of advances received and aggregate amount of retentions are Rs. 1,79,61.59 lakhs, Rs. 5,96.34 lakhs and Rs. 10,10.09 lakhs respectively. (previous year Rs. 2,87,81.12 lakhs, Rs. 8,23.69 lakhs and Rs.7,90.41 lakhs respectively). i) The Company has disputed downward revision in the prices effected by the purchaser subsequent to sale of certain specified materials. In the opinion of the management and also on the merit of the case, as advised legally no liability is likely to arise. The matter is subjudice and pending final judgement the amount payable, if any is not ascertainable presently. Note : Future cash outflows, if any, in respect of (a) to (d), and (i) above is dependent upon the outcome ofjudgments / decisions. 1.18 Related party disclosure as identified by the management in accordance with the Accounting Standard (AS) 18 on "Related Party Disclosures" are as follows : A) Names of related parties and description of relationship 1) Subsidiary Company Electrosteel Europe SA Electrosteel Algeria SPA Electrosteel Castings (UK) Limited Electrosteel USA LLC WaterFab, LLC (100% subsidiary of Electrosteel USA, LLC) Mahadev Vyapaar Private Limted Electrosteel Trading S.A, Spain Singardo International Pte Ltd. 2) Associate Company Lanco Industries Ltd. Electrosteel Steels Limited (Formerly Electrosteel Integrated Limited) Electrosteel Thermal Power Ltd. 3) Joint Venture North Dhadhu Mining Company Pvt. Ltd. Domco Private Limited 4) (a) Key Management Personnel (KMP) Mr. Umang Kejriwal (Managing Director) Mr. Mayank Kejriwal (Joint Managing Director ) Mr. Uddhav Kejriwal (Wholetime Director) Mr. Vyas Mitre Ralli (Wholetime Director) Mr. Mahendra Kumar Jalan (Wholetime Director) Mr. Rama Shankar Singh (Wholetime Director) Mr. S Y Rajagopalan (Director) 4) (b) Relatives of Key Management Personnel (KMP) Smt. Uma Kejriwal-mother of Mr. Umang Kejriwal-Managing Director Mr. S. Y Ganapathy - brother of Mr. S Y Rajagopalan, Director Umang Kejriwal(H.U.F) 5) Enterprise where KMP/Relatives of KMP have signifinant influnce or control Global Exports Ltd. G. K. & Sons Private Limited Badrinath Industries Ltd. Akshay Ispat & Ferro Alloys Pvt. Ltd. Electrocast Sales India Ltd Tulsi Highrise Pvt. Ltd. Wilcox Merchants Pvt. Ltd. Murari Investment & Trading Company Ltd. Electrosteel Thermal Coal Ltd. 1.19.1 The Company has given Corporate Guarantee amounting to Rs. 2,50,00.00 lakhs on behalf of Electrosteel Steels Limited. Out of the aforesaid amount, Electrosteel Steels Limited has drawn Rs. 1,38,00.00 lakhs. 1.20 The company operates mainly in one business segment viz Pipes being primary segment and all other activities revolve around the main activity. The secondary segment is geographical, information related to which is given as under : 1.21 The Ministry of Corporate Affairs (MCA) has issued the amendment dated 29th December 2011 to AS-11. The effect of changes in foreign exchange rates, to allow companies deferral / capitalisation of exchange differences arising on long term foreign currency monetary items. In accordance with the amendment to AS-11, the Company has capitalised / decapitalised exchange loss/gain respectively arising on long term foreign currency loans, amounting to Rs. 69,51.67 lakhs (previous year Rs. Nil) to Capital work in progress and Fixed assets. The Company does not have any other long term foreign currency monetary items. Hence, the amount of exchange loss deferred in the "Foreign Currency Monetary Item Translation Difference Account" is Rs. Nil (previous year Rs. Nil). 1.21 Till the year ended March 31, 2011, the company was using pre-revised Schedule VI to the Companies Act 1956, for the preparation and presentation of its financial statements. During the year ended March 31, 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the company. The company has reclassified previous year figures to conform to this year's classification. Mar 31, 2011 (Rs. in lakhs) 2010-11 2009-10 1. Contingent Liabilities not provided for in respect of: a) Various show cause notices/demands issued/raised, which in the opinion of the management are not tenable and are pending with various forum / authorities: i) Sales Tax 8,12.80 4,89.74 ii) Excise, Custom Duty and Service tax [net of provision of Rs. 500.00 lakhs (previous year Rs. 500.00 lakhs)] 68,51.18 60,85.79 b) Employees State Insurance Corporation has raised demand for contribution in respect of Gross Job Charges for the year 2001-02, 2003-04 and March08 to January10. In the opinion of the management demand is adhoc and arbitrary and is not sustainable legally. 96.11 1,13.13 c) Demand of Tamilnadu Electricity Board disputed by the Company. 8.20 8.20 d) During the year 1994 UPSEB had raised demand for electricity charges by revising the power tariff schedule applicable to the Company retrospectively from Feb86. In the opinion of the management the revised power tariff is not applicable to the Company and accordingly the Company disputed the demand and the matter is pending before Honble High Court at Allahabad. 2,61.74 2,61.74 e) Corporate guarantee issued to banks by the Company on behalf of: (i) Subsidiary Companies 14,15.22 60,46.00 (ii) Associate - 21,00.00 f) Standby Letter of Credit issued by banks on behalf of the company in favour of (i) Subsidiary Companies 2,08,10.53 87,95.53 g) Guarantees given by banks on behalf of the Company 1,85,33.31 1,73,87.30 h) Bills Discounted with Banks. 88,94.72 44,36.01 i) The Company has disputed downward revision in the prices affected by the purchaser subsequent to sale of certain specified materials. In the opinion of the management and also on the merit of the case, as advised legally no liability is likely to arise. The matter is subjudice and pending final judgement the amount payable, if any is not ascertainable presently. Note : Future cash outflows, if any, in respect of (a) to (d), and (i) above is dependent upon the outcome of judgments / decisions. 2. No allocation has been made in respect of stores and spare parts and wages for repairs to Machinery and Building. 3. (a) Miscellaneous expenses include Charity and Donation of Rs. 63.97 lakhs (previous year Rs. 2,82.45 lakhs), Rs. 3,00.00 lakhs towards relocation of certain assets of Elavur unit, Job charges includes Rs. 33.17 lakhs (previous year Rs. 51.74 lakhs) incurred towards insurance on Turnkey Contracts. (b) Miscellaneous income include gain on exchange difference of Rs. 6,55.34 lakhs (previous year Rs. 42,68.18 lakhs) 4. Employee Benefits The disclosures required under Accounting Standard 15 on "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below: Defined Benefit Scheme The employees gratuity fund scheme managed by Life Insurance Corporation of India and ICICI Prudential Life Insurance Company Ltd. is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. 5. In the opinion of the Board of Directors, current assets and loans and advances have the value at which these are stated in the Balance Sheet, unless otherwise stated and adequate provisions for all known liabilities have been made and are not in excess of the amount reasonably required. 6. Balance of Sundry Debtors including for Turnkey Contracts, Work-in-progress, Creditors and advances are subject to confirmation/reconciliation and adjustments in this respect are carried out as and when amounts thereof, if any are ascertained. 7. Rs. 61,87.39 lakhs being net gain (previous year Rs 57,78.95 lakhs being net gain) on account of exchange difference has been adjusted to the respective heads of account in Profit and Loss Account. 8. Other deposits under Loans and Advances include Rs. 5,57.50 lakhs (previous year Rs. 5,57.50 lakhs) with Private Limited companies in which directors are interested as a member / director. 9. Based on the current Exchange Control Procedure in Algeria, as per the Algerian Finance Law, there is a restriction in repatriating the advance amount given by the Company to its wholly owned subsidiary at Algeria. This is to be converted into equity, however pending outcome on the representation made by the company through Indian Embassy at Algeria, this advance continued to be reflected under Loans & Advances. 10. Other provisions include (a) provision relating to indirect taxes in respect of proceedings of various excise duty matters - carrying amount at the end of the year Rs. 500.00 lakhs and carrying amount at the beginning of the year Rs. 500.00 lakhs. No amount was used and reversed during the year. Outflows in these cases would depend on the final developments/outcomes; (b) Other class of provisions related to disputed customer claims/rebates/demands - carrying amount at the end of the year Rs. 28,40.00 lakhs and at the the beginning of the year Rs. 28,40.00 lakhs. Amount reversed during the year and additional provisions made during the year was Rs. 18,40.00 lakhs. Outflows in these cases would depend on the developments/settlements. 11. Fixed Deposits with Scheduled Banks include Fixed Deposit of Rs. 4,08.28 lakhs (previous year Rs. 3,51.60 lakhs) lodged with Government Departments, Customers and Bank. 12. Premium payable on ZCCB has been provided proportionately and accordingly Rs. 6,11.29 lakhs (out of total redemption premium amounting to Rs. 31,37.73 lakhs) (previous year Rs. 3,97.93 lakhs, out of total redemption premium amounting to Rs. 31,58.84 lakhs) on this account has been debited to Share Premium Account. 13. The Company through Qualified Institutional Placements had issued 3,35,68,312 warrant at a price of Rs. 3/- each, entitling the holder to 1 (one) equity share. As per terms and conditions of the issue, the warrant holders have an option to convert, warrant into equity at any time on or after three years from the date of allotment (i.e 08/02/2010) and upto five years from the date of allotment (i.e 08/02/2010) at exercise price of Rs. 59.58 per share. The warrant issue price aggregating to Rs. 10,07.05 lakhs, being non adjustable/non refundable has been credited to Capital Reserve account. 14. The Marked-to-Market losses on derivative contract for the year stood at Rs. 18.26 lakhs (previous year Rs. 1,02.90 lakhs). Even though such losses have not been determined and accrued during the year, keeping in view the announcement of Institute of Chartered Accountants of India dated March 29, 2008 regarding Accounting for Derivatives, the Company has recognized losses in the profit and loss account for the year. 15. a) The Company has investment in equity shares of Domco Private Limited (DPL), a Company incorporated in India, and has joint control (proportion of ownership interest of the Company being 50%) over DPL along with other venturers (the Venturers). The Venturers had filed a petition before the Company Law Board, Principal Bench, New Delhi (CLB) against the Company on various matters including for forfeiture of the Companys investment in equity shares of the DPL. The Company had inter alia filed petition before the Honble High Court of Jharkhand at Ranchi. The Honble High Court of Jharkhand at Ranchi upheld the Companys appeal and decided that the matter would have to be referred for Arbitration. The Venturer has challenged the aforesaid judgment in the Divisional Bench of the Honble High Court of Jharkhand at Ranchi. Pending final outcome of the matter and since , the other Venturer are not providing the financial statements of DPL, disclosures as regards contingent liability and capital commitments, if any, aggregate amounts of each of the assets, liabilities, income and expenses related to the Companys interest in DPL has not been made in these accounts. b) During the year, the Company has invested in equity shares of Vishwa Utilities Pvt. Ltd. (VUPL), a company incorporated in India, has joint control over VUPL being 11% interest alongwith other venturers. However, the Company has aquired and held this interest exclusively with a view to its subsequent disposal in the near future and accordingly interest in the said Joint Venture Company has been accounted for as an investment in accordance with Accounting Standard 13 on Accounting for Investment. 16. As regards construction contracts in progress as on 31.03.2011, aggregate amount of costs incurred and recognised profit (less recognized losses) upto the year end (to the extent ascertained by the management), aggregate amount of advances received and aggregate amount of retentions are Rs. 2,87,81.12 lakhs, Rs. 8,23.69 lakhs and Rs.7,90.41 lakhs respectively. (Previous year Rs. 4,34,45.65 lakhs, Rs. 9,35.54 lakhs and Rs. 13,68.23 lakhs respectively). 17. The Company has certain operating lease arrangements for office accommodations etc. with tenure extending upto 9 yrs. Term of certain lease arrangements include escalation clause for rent on expiry of 36 months from the commencement date of such lease and deposit / refund of security deposit etc. Expenditure incurred on account of rent during the year and recognized in the Profit and Loss account amounts to Rs. 5,15.86 lakhs (previous year Rs. 4,50.45 lakhs). 18. During the year, the Company has incurred Rs. 83.26 lakhs (previous year Rs 80.93 lakhs) on account of research and development expenses which has been charged to profit and loss account. 19. Related party disclosure as identified by the management in accordance with the Accounting Standard (AS) 18 on "Related Party Disclosures" are as follows: A) Names of related parties and description of relationship 1) Subsidiary Company Electrosteel Europe SA Electrosteel Algeria SPA Singardo International Pte Ltd. Electrosteel Castings (UK) Limited Electrosteel USA, LLC WaterFab, LLC (100% subsidiary of Electrosteel USA, LLC) 2) Associate Company Lanco Industries Ltd. Electrosteel Steels Limited (Formerly Electrosteel Integrated Limited) Electrosteel Thermal Power Ltd. 3) Joint Venture North Dhadhu Mining Company Pvt. Ltd. Domco Private Limited 4) Key Management Personnel (KMP) and their relative Mr. Umang Kejriwal (Managing Director) Mr. Mayank Kejriwal (Joint Managing Director) Mr. Uddhav Kejriwal (Wholetime Director) Mr. Vyas Mitre Ralli (Wholetime Director) Mr. Mahendra Kumar Jalan (Wholetime Director) Mr. Rama Shankar Singh (Wholetime Director) Mr. S Y Rajagopalan (Director) Smt. Uma Kejriwal - mother of Mr. Umang Kejriwal, Managing Director Mr. S.Y. Ganapathy - brother of Mr. S.Y. Rajagopalan, Director 5) Enterprise where KMP/Relatives of KMP have signifinant influnce or control Global Exports Ltd G.K.& Sons Private Limited Badrinath Industries Ltd. Akshay Ispat & Ferro Alloys Pvt. Ltd. * Acharya Multicon Pvt. Ltd. Electrocast Sales India Ltd. * Flora Conductions Pvt. Ltd. **Highrise Multicon Pvt. Ltd. ** Kabir Projects Pvt. Ltd. ** New City Enclave Pvt. Ltd. ** Nilmoni Developers Pvt. Ltd. * Nimpith Developers Pvt. Ltd. * Paramount Tracom Pvt. Ltd. * Stewart Agencies Pvt. Ltd. Tulsi Highrise Pvt. Ltd. Wilcox Merchants Pvt. Ltd. ** Royal Multicon Pvt. Ltd. * Samar Properties Pvt. Ltd. ** Tulip Fabicon Pvt. Ltd. Murari Investment & Trading Company Ltd. Electrosteel Thermal Power Ltd. * Amalgmated into Tulsi Highrise Pvt. Ltd. as per Honble Calcutta High Court order dated 06-10-2010 ** Amalgmated into Wilcox Merchants Pvt. Ltd. as per Honble Calcutta High Court order dated 06-10-2010 20. Previous Years Figures have been re-grouped/re- arranged wherever neccessary. Mar 31, 2010 (Rs. in lakhs) Current Year Previous Year 1. Estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances): 33,00.31 35,98.99 2. Contingent Liabilities not provided for in respect of: a) Various show cause notices/ demands issued/raised, which in the opinion of the management are not tenable and are pending with various forum / authorities: Sales Tax [net of provision of Rs.13.49 lakhs (previous year Rs. 13.49 lakhs)] 4,89.74 7,41.26 ii) Excise, Custom Duty and Service tax [net of provision of Rs. 500 00 lakhs (previous year nil)] 60,85.79 53,94.77 b) Employees State Insurance Corporation has raised demand for contribution in respect of Gross Job Charges for the year 2001-02, 2003-04 and March08 to January10. In the opinion of the management demand is adhoc and arbitrary and is not sustainable legally. 1,13.13 63.55 c) Demand of Tamilnadu Electricity Board disputed by the Company. 8.20 8.20 d) During the year 1994 UPSEB had raised demand for electricity charges by revising the power tariff schedule applicable to the Company retrospectively from Feb86. In the opinion of the management the revised power tariff is not applicable to the Company and accordingly the Company disputed the demand and the matter is pending before Honble High Court at Allahabad. 2,61.74 2,61.74 e) Corporate guarantee issued to banks by the Company on behalf of: (i) Subsidiary Companies 60,46.00 89,66.00 (ii) Associate 21,00.00 48;25.00 f) Standby Letter of Credit issued by banks on behalf of the company in favour of (i) Subsidiary Companies 87,95.53 -- g) Guarantees given by banks on behalf of the Company 1,73,87.30 1,90,89.87 h) Bills Discounted with Banks. 44,36.01 18,36.62 i) The Company has disputed downward revision in the prices affected by the purchaser subsequent to sale of certain specified materials. In the opinion of [he management and also on the merit of the case, as advised legally no liability is likely to arise. The matter is subjudice and pending final judgement the amount payable, if any is not ascertainable presently Note: Future cash outflows, if any, in respect of (a) to (d), and (i) above is dependent upon the outcome of judgments / decisions. 3. Stores and spares consumption include pipe moulds written off 4. No allocation has been made in respect of stores and spare parts and wages for repairs to Machinery and Building. 5. Inventories of stores and spares include the estimated net realizable value of pipe mould (fixed assets) retired from the active use Rs. nil (previous year Rs. 88.431akhs) 6. (a) Miscellaneous expenses include Charity and Donation of Rs. 2,82.45 lakhs (Previous Year Rs. 97.20 lakhs), Job charges includes Rs. 51.74 lakhs (previous year Rs. 47.58 lakhs) incurred towards insurance on Turnkey Contracts, loss on exchange difference Rs. nil (previous year Rs. 24,04.54 lakhs) (b) Miscellaneous income include gain on exchange difference of Rs. 42,68.18 lakhs (previous year Rs. nil) 7. In the opinion of the Board of Directors, current assets and loans and advances have the value at which these are stated in the Balance Sheet, unless otherwise stated and adequate provisions for all known liabilities have been made and are not in excess of the amount reasonably required. 8. Balance of Sundry Debtors including for Turnkey Contracts, Work-in-progress, Creditors and advances are subject to confirmation/reconciliation and adjustments in this respect are carried out as and when amounts thereof, if any are ascertained. 9. Rs. 57,78.95 lakhs being net gain (Previous Year Rs 1,33,06.71 lakhs being net loss) on account of exchange difference has been adjusted to the respective heads of account in Profit and Loss Account. 10. Power and fuel consumption is net of Rs. nil lakhs (Previous Year Rs. 97.00 lakhs ) being subsidy receivable on use of coal gas. 11. The Company has not received information from vendors regarding the status of the suppliers as defined under the " Micro, Small and Medium Enterprise Development Act, 2006" (the Act) and accordingly disclosure relating to unpaid amounts at the year end together with interest paid /payable has not been given. 12. Other deposits under Loans and Advances include Rs. 5,57.50 lakhs (Previous year Rs. 5,57.50 lakhs) with Private Limited companies in which directors are interested as a member / director. 13. Other provisions include (a) provision of Rs.5,00.00 lakhs made during the year relating to indirect taxes in respect of proceedings of various excise duty matters and is outstanding as on 31.03.2010. Outflows in these cases would depend on the final developments/outcomes; (b) Rs.28,40.00 lakhs provided during the year being other class of provisions related to disputed customer claims/rebates and is outstanding as on 31.03.2010. Outflows in these cases would depend on the developments/settlements. 14. Fixed Deposits with Scheduled Banks include Fixed Deposit of Rs. 8.14 lakhs (Previous Year Rs. 23.55 lakhs) lodged with Government Departments and Customers. 15 Premium payable on ZCCB has been provided proportionately and accordingly Rs. 3,97.93 lakhs (out of total redemption premium amounting to Rs. 31,58.84 lakhs) (Previous year Rs. 9,84.94 lakhs, out of total redemption premium amounting to Rs. 35,69.25 lakhs) on this account has been debited to Share Premium Account. 16. (a) During the year, the Company has raised Rs.28,98.00 lakhs through preferential issue of equity shares being 90% of the total amount due against conversion of 1,40,00,000 warrents (issued in earlier year) into 140.00 lakhs equity share of face value of Re. 1 each at a price of Rs. 23.00 per share and the same have been utilized for business purposes including working capital requirements of the Company. (b) During the year the Company through Qualified Institutional Placements has issued 3,35,68,312 warrant at a price of Rs. 3 each, entitling the holder to 1 (one) equity share. As per terms and conditions of the issue, the warrant holders have an option to convert, warrant into equity at any time on or after three years from the date of allotment and upto five years from the date of allotment at exercise price of Rs. 59.58 per share. The warrant issue price aggregating to Rs. 10,07.05 lakhs, being non adjustable/non refundable has been credited to Capital Reserve account. 17. The company during the financial year 2007-08, had allotted 4,08,37,146 convertible warrants to promoters and others at predetermined conversion prices for which the option was not exercised till last date of its conversion. Accordingly the said warrants stands cancelled and the amount of Rs. 30,94.71 lakhs received upfront from the warrant holders has been forfeited and credited to the Capital Reserve during the year. 18. The Marked-to-Market losses on derivative contract as at March 31, 2010 stood at Rs. 1,02.90 lakhs (previous year Rs. 26,32.75 lakhs). Even though such losses have not been determined and accrued during the year, keeping in view the announcement of Institute of Chartered Accountants of India dated March 29, 2008 regarding Accounting for Derivatives, the Company has recognized losses in the profit and loss account for the year. 19 a) The Company has investment in equity shares of Domco Private Limited (DPL), a Company incorporated in India, and has joint control (proportion of ownership interest of the Company being 50%) over DPL along with other venturers (the Venturers). The Venturers had filed a petition before the Company Law Board, Principal Bench, New Delhi (CLB) against the Company on various matters including for forfeiture of the Companys investment in equity shares of the DPL. The Company had inter alia filed petition before the Honble High Court of Jharkhand at Ranchi,. The Honble High Court of Jharkhand at Ranchi upheld the Companys appeal and decided that the matter would have to be referred for Arbitration. The Venturer has challenged the aforesaid judgment in the Divisional Bench of the Honble High Court of Jharkhand at Ranchi. Pending final outcome of the matter and since , the other Venturer are not providing the financial statements of DPL, disclosures as regards contingent liability and capital commitments, if any, aggregate amounts of each of the assets, liabilities, income and expenses related to the Companys interest in DPL has not been made in these accounts. 20. As regards construction contracts in progress as on 31.03.2010, aggregate amount of costs incurred and recognised profit (less recognized losses) upto the year end (to the extent ascertained by the management), aggregate amount of advances received and aggregate amount of retentions are Rs. 4,34,45.65 lakhs, Rs. 9,35.54 lakhs and Rs.13,68.23 lakhs respectively.(Previous Year Rs. 5,64,21.66 lakhs, Rs. 22,62.41 lakhs and Rs.16,71.28 lakhs respectively). 21. The Company has certain operating lease arrangements for office accommodations etc. with tenure extending upto 9 yrs. Term of certain lease arrangements include escalation clause for rent on expiry of 36 months from the commencement date of such lease and deposit / refund of security deposit etc. Expenditure incurred on account of rent during the year and recognized in the Profit and Loss account amounts to Rs. 4,50.45 lakhs (Previous Year Rs. 4,88.76 lakhs). 22. During the year, the Company has incurred Rs. 80.93 lakhs (previous year Rs 58.89 lakhs) on account of research and development expenses which has been charged to profit and loss account. 23. Related party disclosure as identified by the management in accordance with the Accounting Standard (AS) 18 on "Related Party Disclosures" are as follows: A) Names of related parties and description of relationship 1) Subsidiary Company Electrosteel Europe SA Electrosteel Algeria SPA Singardo International Pte Ltd. Electrosteel Castings (UK) Limited Electrosteel USA, LLC WaterFab, LLC (100% subsidiary of Electrosteel USA, LLC) 2) Associate Company Lanco Industries Ltd. Electrosteel Steels Limited (Formerly Electrosteel Integrated Limited) Electrosteel Thermal Power Ltd. 3) Joint Venture North Dhadhu Mining Company Pvt. Ltd. Domco Private Limited 4) Key Management Personnel (KMP) and their relative Mr. Umang Kejriwal (Managing Director) Mr. Mayank Kejriwal (Joint Managing Director ) Mr. Uddhav Kejriwal (Wholetime Director) Mr. N C Bahl (Director) Resigned during the year Mr. SYRajagopalan (Director) Smt. Uma Kejriwal - mother of Mr. Umang Kejriwal, Managing Director SmtUsha Bahl-wife of Mr. N.C Bahl Mr. SY. Ganapathy - brother of Mr. SY. Rajagopalan, Director Mr. Vyas Mitre Ralli (Wholetime Director) Mr. Rama Shankar Singh (Wholetime Director) Mr. Mahendra Kumar Jalan (Wholetime Director) 5) Enterprise where KMP/Relatives of KMP have signifinant influnce or control Global Exports Ltd. Badrinath Industries Ltd. Akshaylspat&Ferro Alloys Pvt. Ltd. AcharyaMulticonPvtLtd. Flora Constuctions Pvt. Ltd. HighriseMulticonPvt.Ltd. Kabir Projects Pvt. Ltd. New City Enclave Pvt. Ltd. Nilmoni Developers Pvt. Ltd. Paramount Tracom Pvt. Ltd. Stewart Agencies Pvt. Ltd. TulsiHighrisePvtLtd. Wilcox Merchants Pvt. Ltd. Nimpith Developers Pvt. Ltd. Royal Multicon Pvt. Ltd. Samar Properties Pvt. Ltd. Tulip Fabicon Pvt. Ltd. Murari Investment & Trading Company Ltd. Electrosteel Thermal Coal Ltd. BiswaMicrofinancePvtLtd. Elecrrocast Sales India Ltd 24. Previous Years Figures have been re-grouped/re- arranged wherever neccessary. Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article IFSC Code Currency Select Bank Select State Select City Select Branch From INR - Indian Rupee USD - United States Dollar EUR - Euro GBP - British Pound Sterling AED - United Arab Emirates Dirham SAR - Saudi Riyal AUD - Australian Dollar OMR - Omani Rial MYR - Malaysian Ringgit CAD - Canadian Dollar CHF - Swiss Franc ZAR - South African Rand SGD - Singapore Dollar JPY - Japanese Yen BHD - Bahraini Dinar KWD - Kuwaiti Dinar QAR - Qatari Riyal BMD - Bermudian Dollar ARS - Argentine Peso AWG - Aruban Florin BAM - Bosnia and Herzegovina convertible mark BBD - Barbadian Dollar BDT - Bangladeshi Taka BGN - Bulgarian Lev BOB - Bolivian Boliviano BRL - Brazilian Real BSD - Bahamian Dollar BWP - Botswana Pula CLP - Chilean Peso CNY - Chinese Yuan COP - Colombian Peso CZK - Czech Koruna DKK - Danish Krone DOP - Dominican Peso EGP - Egyptian Pound FJD - Fijian Dollar GHS - Ghana Cedi GMD - Gambian Dalasi GTQ - Guatemalan Quetzal HKD - Hong Kong Dollar HRK - Croatian Kuna HUF - Hungarian Forint IDR - Indonesian Rupiah ILS - Israeli Sheqel IRR - Iranian Rial ISK - Icelandic Krona JMD - Jamaican Dollar JOD - Jordanian Dinar KES - Kenyan Shilling KHR - Cambodian Riel KRW - South Korean Won LAK - Lao Kip LBP - Lebanese Pound LKR - Sri Lankan Rupee MAD - Moroccan Dirham MDL - Moldovan Leu MGA - Malagasy Ariary MKD - Macedonian Denar MUR - Mauritian Rupee MVR - Maldivian Rufiyaa MXN - Mexican Peso NAD - Namibian Dollar NGN - Nigerian Naira NOK - Norwegian Krone NPR - Nepalese Rupee NZD - New Zealand Dollar PAB - Panamanian Balboa PEN - Peruvian Sol PHP - Philippine Peso PKR - Pakistani Rupee PLN - Polish Zloty PYG - Paraguayan Guaraní RON - Romanian Leu RSD - Serbian Dinar RUB - Russian Rouble SCR - Seychellois Rupee SEK - Swedish Krona SYP - Syrian Pound THB - Thai Baht TND - Tunisian Dinar TRY - Turkish Lira TTD - Trinidad and Tobago Dollar TWD - Taiwanese Dollar UAH - Ukraine Hryvnia UGX - Ugandan Shilling UYU - Uruguayan Peso VES - Venezuelan Bolívar VND - Vietnamese Dong XAF - Central African Franc XCD - East Caribbean Dollar XOF - West African Franc XPF - CFP Franc To INR - Indian Rupee USD - United States Dollar EUR - Euro GBP - British Pound Sterling AED - United Arab Emirates Dirham SAR - Saudi Riyal AUD - Australian Dollar OMR - Omani Rial MYR - Malaysian Ringgit CAD - Canadian Dollar CHF - Swiss Franc ZAR - South African Rand SGD - Singapore Dollar JPY - Japanese Yen BHD - Bahraini Dinar KWD - Kuwaiti Dinar QAR - Qatari Riyal BMD - Bermudian Dollar ARS - Argentine Peso AWG - Aruban Florin BAM - Bosnia and Herzegovina convertible mark BBD - Barbadian Dollar BDT - Bangladeshi Taka BGN - Bulgarian Lev BOB - Bolivian Boliviano BRL - Brazilian Real BSD - Bahamian Dollar BWP - Botswana Pula CLP - Chilean Peso CNY - Chinese Yuan COP - Colombian Peso CZK - Czech Koruna DKK - Danish Krone DOP - Dominican Peso EGP - Egyptian Pound FJD - Fijian Dollar GHS - Ghana Cedi GMD - Gambian Dalasi GTQ - Guatemalan Quetzal HKD - Hong Kong Dollar HRK - Croatian Kuna HUF - Hungarian Forint IDR - Indonesian Rupiah ILS - Israeli Sheqel IRR - Iranian Rial ISK - Icelandic Krona JMD - Jamaican Dollar JOD - Jordanian Dinar KES - Kenyan Shilling KHR - Cambodian Riel KRW - South Korean Won LAK - Lao Kip LBP - Lebanese Pound LKR - Sri Lankan Rupee MAD - Moroccan Dirham MDL - Moldovan Leu MGA - Malagasy Ariary MKD - Macedonian Denar MUR - Mauritian Rupee MVR - Maldivian Rufiyaa MXN - Mexican Peso NAD - Namibian Dollar NGN - Nigerian Naira NOK - Norwegian Krone NPR - Nepalese Rupee NZD - New Zealand Dollar PAB - Panamanian Balboa PEN - Peruvian Sol PHP - Philippine Peso PKR - Pakistani Rupee PLN - Polish Zloty PYG - Paraguayan Guaraní RON - Romanian Leu RSD - Serbian Dinar RUB - Russian Rouble SCR - Seychellois Rupee SEK - Swedish Krona SYP - Syrian Pound THB - Thai Baht TND - Tunisian Dinar TRY - Turkish Lira TTD - Trinidad and Tobago Dollar TWD - Taiwanese Dollar UAH - Ukraine Hryvnia UGX - Ugandan Shilling UYU - Uruguayan Peso VES - Venezuelan Bolívar VND - Vietnamese Dong XAF - Central African Franc XCD - East Caribbean Dollar XOF - West African Franc XPF - CFP Franc 1 USD = 89.577 (USD to INR) 1 EUR = 104.886 (EUR to INR) 1 GBP = 119.845 (GBP to INR) More Period 7-14 Days 15-30 Days 31-45 Days 46-90 Days 4-6 Months 7-12 Months 1-2 Years 2-5 Years 5-10 Years >10 Years More Information on Electrosteel Castings Ltd. Electrosteel Castings Ltd. Tools Bulk Deals Electrosteel Castings Ltd. Company Details Company Profile Company History Management Team Capital Structure Product Mix Banker/Auditor/Registrar Company History Bonus Rights BSE Price History NSE Price History Electrosteel Castings Ltd. Key Financial Ratios Ratios Electrosteel Castings Ltd. Results Quarterly Results Half Yearly Results Nine Months Results Annual Results Electrosteel Castings Ltd. Financial Data Audited Results Cash Flow Balance Sheet Electrosteel Castings Ltd. Reports Accounting Policies Auditors Report Directors Report Notes To Account Electrosteel Castings Ltd. Corporate Announcements Book Closure Dividend Board Meetings News Stocks To Buy Today, Dec 19: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday Stocks To Buy Today, Dec 18: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday Stocks To Buy Today, Dec 17: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Wednesday Stocks To Buy Today, Dec 16: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Tuesday India Stock Market Weekly Review: Nifty and Sensex Fall as Caution Spreads Stocks To Buy Today, Dec 15: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday Stocks To Buy Today, Dec 12: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday Market Outlook 2026: Kotak Securities Sees Nifty 50 at 30,000; THESE 4 Sectors Lead Rally, Gold To Stay Strong Stocks To Buy Today, Dec 10: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Wednesday D-Street Bleeds For 2nd Day! Sensex Slumps 678 Pts; Nifty Cracks 25,800; Why Stock Market Is Falling Today? Stocks To Buy Today, Dec 9: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Tuesday Stocks To Buy Today, Dec 8: Top 4 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday Stock Market Alert! Major Pre-Open Session Change From Dec 8: Full Timings, Rules & All You Need To Know Bank Nifty Surges: RBI’s 25 bps Rate Cut Triggers Strong Upside in Major Banking Stocks Closing Bell: Sensex Ends 158 pts Higher, Nifty Climbs Above 26,000; Hero MotoCorp, HAL Up 2% Each Stocks To Buy Today, Dec 4: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday About GoodReturns GoodReturns is your trusted source for the latest financial news, investment insights, and expert guidance. Stay updated and make informed decisions with our comprehensive updates. 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