Notes to Accounts of IFGL Refractories Ltd.

Mar 31, 2025

3.4 Claims, Provisions and Contingent Liabilities

The assessments undertaken in recognising provisions and contingencies have been made in accordance with the applicable
Ind AS. The Company has ongoing litigations with various regulatory authorities and third parties. Where an outflow of funds is
believed to be probable and a reliable estimate of the outcome of the dispute can be made based on management''s assessment
of specific circumstances of each dispute and relevant external advice, management provides for its best estimate of the liability.
Such accruals are by nature complex and can take number of years to resolve and can involve estimation uncertainty. Information
about such litigations is provided in Note 33 to the Standalone Financial Statements.

3.5 Provision against obsolete and slow-moving Inventories

The Company reviews the condition of its Inventories and makes provision against obsolete and slow moving Inventory items
which are identified as no longer suitable for sale or use. Company estimates the Net Realisable Value for such Inventories based
primarily on the latest invoice prices and current market conditions. The Company carries out an Inventory review at each Balance
Sheet date and makes provision against obsolete and slow moving items. The Company reassesses the estimation on each
Balance Sheet date.

3.6 Impairment of Financial Assets/Impairment on Trade Receivables

The Company assesses impairment based on Expected Credit Losses (ECL) model on Trade Receivables. The Company uses a
provision matrix to determine impairment loss allowance on the portfolio of Trade Receivables. The provision matrix is based on

its historically observed default rates over the expected life of the Trade Receivable and is adjusted for forward looking estimates.
At every reporting date, the historically observed default rates are updated and changes in the forward looking estimates are
analysed.

3.7 Taxes

Deferred Tax Assets are recognised to the extent that it is probable that taxable profit will be available against which the
deductible Temporary Differences, and the Carry Forward of Unused Tax Credits and Unused Tax Losses including unabsorbed
depreciation can be utilised. Significant management estimate and assumptions is required to determine the amount Deferred
Tax Assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax
planning strategies.

3.8 Leases - Estimating the Incremental Borrowing Rate

The Company does not determine the interest rate implicit in the lease, therefore, it uses its Incremental Borrowing Rate (IBR) to
measure Lease Liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term, and
with a similar security, the funds necessary to obtain an Asset of a similar value to the Right-of-Use Asset in a similar economic
environment.

3.9 Impairment of Non-Financial Asset

Impairment exists when the Carrying value of an Asset or Cash Generating Unit exceeds its recoverable amount, which is the
higher of its Fair value less Costs of disposal and its Value-in-use. The fair value less costs of disposal calculation is based on
available data from binding sales transactions, conducted at arm''s length, for similar Assets or observable market prices less
incremental costs for disposing off the asset. The Value-in-Use calculation is based on a DCF model.

15.6 There are no Equity Shares issued as bonus and for consideration other than Cash and Shares bought back during the period of five
years immediately preceding the reporting date.

15.7 The Board of Directors in their meeting held on May 24, 2025, have recommended issue of 1 (one) Equity Share of '' 10 each fully
paid up of the Company as Bonus Share for every 1 (one) Equity Shares held, following statutory provisions applicable including
Section 63 and other relevant Sections of the Companies Act, 2013 and Rules framed thereunder, SEBI LODR Regulations, 2015, SEBI
ICDR Regulations, 2018 and subject to approval of the Shareholders of the Company.

Nature and Purpose of Reserves :

(a) Securities Premium is used to record the Premium on Issue of Shares. The same is utilised in accordance with the provisions of
Section 52 of the Companies Act, 2013.

(b) Retained Earnings represents the Profits that the Company has earned till date, less any Dividends or other distributions to the
Shareholders.

(c) Special Economic Zone Reinvestment Reserve had been created out of the Profit for the Financial Year 2022-23 of the eligible
SEZ unit in terms of the provisions of Sec 10AA(1)(ii) of Income Tax Act, 1961 under the Old Tax Regime. The Company had
elected to exercise the option permitted under Section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws
(Amendment) Act, 2019 "New Tax Regime" at the time of filing of Income Tax Return for Financial Year ended March 31,2023.
Accordingly, the amount transferred to Special Economic Zone Reinvestment Reserve Utilisation had been transferred to
Retained Earnings during the year ended March 31,2024.

(d) The Board of Directors of the Company in their meeting held on May 7, 2025, has declared Interim Dividend at the rate of 60 %
i.e. '' 6.00 per Equity Share of '' 10/- each face value.

16.1 The Board of Directors, at its meeting on May 24, 2025, have proposed a Final Dividend of Re. 1.00 (10%) per Equity Share for the
financial year ended March 31, 2025 subject to the approval of Shareholders at the forthcoming Annual General Meeting, and
following Policy on Dividend Distribution of the Company. Proposed Dividend is accounted for in the year in which it is approved
by the Shareholders.

The Board of Directors, at its meeting on May 18, 2024, had proposed a Final Dividend of '' 7.00 (70%) per Equity Share for the
financial year ended March 31,2024. The total amount of '' 2,522.75 has been paid out during the year ended March 31,2025, with
approval of Equity Shareholders obtained at the Annual General Meeting.

17.1 Rupee Term Loan from a Bank is secured by the first pari-passu charge over all movable Property, Plant and Equipment of the
Company, both present and future, first pari-passu charge over Land and Building of the Company situated at Visakhapatnam, both
present and future, and second pari-passu charge over Current Assets of the Company, both present and future. The interest rate
on such term loan is 150 basis points over 3 months Treasury Bill and is repayable in 20 equal quarterly instalments after one year
of moratorium period from the date of first disbursement.

17.2 Rupee Term Loan from another Bank is secured by the first pari-passu charge over all movable Property, Plant and Equipment of
the Company, and second pari-passu charge over Current Assets of the Company. The interest rate on such term loan is 190 basis
points over RBI Repo rate and is repayable in 20 equal quarterly instalments after one year of moratorium period from the date of
first disbursement.

The Company has also satisfied all Debt Covenants prescribed in terms of Bank Loans. The Company has not defaulted on any loans
payable.

17.3 For Current Maturities of Term Loans from Banks, Refer Note 20.

20.1 Working Capital and Packing Credit Loans from Banks are secured by hypothecation of Raw Materials, Stock-in-Process, Finished
Goods, Consumables, Spares, Stores, Receivables and Other Current Assets both present and future on pari passu basis and second
charge over all Movable Property, Plant and Equipment of the Company on pari passu basis.

20.2 The Company has been sanctioned Working Capital limits in excess of Rupees Five Crores in aggregate from Banks on the basis of
security as mentioned in Note 20.1 above. The revised intimations in respect of amounts reported in Quarterly Returns/Statements
filed by the Company with such Banks are in agreement with the Unaudited Books of Account of the Company. The Company has
satisfied all Debt Covenants prescribed in Terms of Bank Loans. The Company has not defaulted on any loans payable.

29.1 The Company has recognised in the Standalone Statement of Profit and Loss for the year ended March 31, 2025 an amount of
'' 292.98 (March 31,2024 : '' 246.13) as expenses under Defined Contribution Plans.

29.2 Provident Fund (Funded)

Provident Fund contributions in respect of employees upto August 2017 of erstwhile IFGL Refractories Limited are made to a Trustee
managed exempted fund and interest paid to member thereof is not lower than that declared annually by the Central Government.
Shortfall if any is made good by the Company. Membership to said fund has been closed on and from September 1,2017, subject to
necessary approvals and/or permissions. Provident Fund in respect of remaining employees are made to Statutory Provident Fund
established by the Central Government. Based on the final guidance for measurement of Provident Fund liabilities of the Trustee
managed fund issued by the Actuarial Society of India, the Company''s Liability at the year ended March 31,2025 is Nil (March 31,
2024 : '' 1.94) has been actuarially determined by an Independent Actuary using the Projected Unit Credit Method and provided
for. Provident Fund in respect of remaining employees of the Company are made to Statutory Provident Fund established by the
Central Government as stated above.

29.3 Gratuity (Funded)

The Company provides Gratuity benefit to its Employees. Gratuity entitlement of the employees is as per the provision of the
Payment of Gratuity Act, 1972. However in case of employees joining before April 1,2003 of erstwhile IFGL Refractories Limited,
they are entitled to Gratuity as per scheme framed by that Company or as per the Payment of Gratuity Act, 1972, which ever is
higher. Liability with regard to Gratuity Plan are determined by the Actuarial Valuation as set out in Note 2.14 (v), based on which
the Company makes contribution to the Fund using the Projected Unit Credit Method. The most recent Actuarial Valuation of the
Fund was carried out as at March 31,2025. Refer Note 29.6 for Actuarial Valuation.

29.4 Superannuation (Funded)

Certain employees joined before March 31, 2004 of erstwhile IFGL Refractories Limited are member of Trustee managed
Superannuation Fund. The said Fund provides for Superannuation benefit on retirement/death/incapacitation/termination and
was amended from the Defined Benefit to Defined Contribution Plan effective April 1,2004. Defined Benefit Plan was frozen as on
March 31,2004. Necessary formalities/approvals have been complied with and obtained. Refer Notes 2.14 (iii) for Accounting Policy
relating to Superannuation and Refer Note 29.6 for Actuarial Valuation.

From December 2022, the Company is not effecting payment of contributions in respect of its employees and Member of Company''s
Income Tax recognised Superannuation Fund, IFGL Refractories Ltd - Employees Superannuation Fund following approval by the
Principal Commissioner of Income Tax, Kolkata-2 that surplus lying in Plan-A of the Fund can be adjusted against contributions receivable
from the Company under Plan-B thereof. Amount involved for the year ended March 31,2025 is '' 33.23, March 2024 is ''35.46).

29.5 Compensated Absence (Unfunded)

The Company provides for accumulated leave benefit for eligible employees. Liabilities are determined by Actuarial Valuation as
set out in Note 2.14 (vi) using Projected Unit Credit Method.

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 (Present Value of the Defined Benefit Obligation calculated with
the Projected Unit Credit Method at the end of the reporting period) has been applied while calculating the Defined Benefit Liability
recognised in the Balance Sheet.

The methods and types of assumptions used in preparing the Sensitivity Analysis did not change compared to the prior period.

Risk Exposure :

Through its Defined Benefit Plans, the Company is exposed to a number of risks, the most significant of which are detailed below :

a. Investment Risk : The Defined Benefit Plans are funded Government Securities and Units of Insurers. The Company does not have
any liberty to manage the funds provided to Insurance Companies.

b. Interest Risk : A decrease in the interest rate on Plan Assets will increase the Plan Liability.

c. 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.

d. Salary Growth Risk : The Present Value of Defined Benefit Plan Liability is calculated by reference to the future Salaries of plan
participants. An increase in Salary will increase the Plan Liability.

Defined Benefit Liability and Employer Contributions

Expected contributions to post employment benefit plans for the year ending March 31,2025 is '' 56.92 ( March 31,2024 : 51.03).

The Weighted Average Duration of the Defined Benefit Obligation (Gratuity) is 8 years for the year ended March 31,2025 (March 31,2024 : 8
years). The expected maturity analysis of Undiscounted Gratuity is as follows :

The Management assessed that Cash and Cash Equivalents, Trade Receivables, Trade Payables and Other Current Liabilities
approximate their carrying amounts largely due to the Short-Term maturities of these instruments.

The Fair Value of Lease Liabilities is estimated by discounting future cash flows using rates currently available for Debt on similar
terms, credit risk and remaining maturities. In addition to being sensitive to a reasonably possible change in the forecast cash
flows or the discount rate, the Fair Value of the Equity Instruments is also sensitive to a reasonably possible change in the growth
rates. Management regularly assesses a range of reasonably possible alternatives for those significant unobservable inputs and
determines their impact on the total Fair Value.

The Fair Values of the Company''s interest bearing borrowings are determined by using DCF method using discount rate that
reflects issuer''s borrowing rate as at the end of the reporting period. The own non performance risk as at March 31, 2025 was
assessed to be insignificant. The discount for lack of marketability represents the amounts that the Company has determined that
market participants would take into account when pricing the Investments.

35.3 Financial Risk Management Objectives

The Company''s activities expose it to a variety of Financial Risks, including Market Risk, Credit Risk and Liquidity Risk. The Company
continues to focus on a system based approach to Business Risk Management. The Company''s Financial Risk Management process
seeks to enable the early identification, evaluation and effective management of key risks facing the business. Backed by strong
Internal Control Systems, the current Risk Management System rests on policies and procedures issued by appropriate authorities;
process of regular reviews/audits to set appropriate risk limits and controls; monitoring of such risks and compliance confirmation
for the same.

Fair Value Hierarchy

The following table provides an analysis of Financial Instruments that are measured subsequent to initial recognition at Fair Value,
grouped into Level 1 to Level 3, as described below :

Quoted/Repurchase prices in an active market (Level 1) : This level of hierarchy includes Financial Assets that are measured by
reference to Quoted/Repurchase Prices (unadjusted) in active markets for identical Assets or Liabilities. This category consists of
Investment in Quoted Equity Shares, and Mutual Fund Investments.

Valuation techniques with observable inputs (Level 2) : This level of hierarchy includes Financial Assets and Liabilities, measured
using inputs other than Quoted Prices included within Level 1 that are observable for the Asset or Liability, either directly (i.e., as
prices) or indirectly (i.e. derived from prices). This level of hierarchy does not include any instrument.

Valuation techniques with significant unobservable inputs (Level 3) : This level of hierarchy includes Financial Assets and
Liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair Values are determined
in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current
market transactions in the same instrument nor are they based on available market data.

There have been no transfers between Level 1 and Level 2 during the years ended March 31,2025 and March 31,2024.

In determining Fair Value Measurement, the impact of potential climate related matters, including legislation, which
may affect the Fair Value Measurement of Assets and Liabilities in the Financial Statements has been considered. These
risks in respect of climate related matters are included as key assumptions where they materially impact the measure of
recoverable amount. These assumptions have been included in the Cash Flow forecasts in assessing value-in-use amounts.
At present, the impact of climate related matters is not material to the Company''s Financial Statements.

(a) Market Risk

The Company''s Financial Instruments are exposed to market changes. The Company is exposed to following significant
Market Risk:

i. Foreign Currency Risk

ii. Interest Rate Risk

iii. Price Risk

Market Risk Exposures are measured using Sensitivity Analysis. There has been no change to the Company''s exposure to
Market Risks or the manner in which these risks are being managed and measured.

i. Foreign Currency Risk

The Company undertakes transactions denominated in Foreign Currency which results in Exchange Rate fluctuations.
Such Exchange Rate Risk primarily arises from transactions made in Foreign Exchange and reinstatement risks arising
from recognised Assets and Liabilities, which are not in the Company''s functional Currency (Indian Rupees).

A significant portion of these transactions are in US Dollar, Euro, etc. The Carrying Amount of Foreign Currency
denominated Financial Assets and Liabilities are as follows :

ii. Interest Rate Risk

Interest Rate Risk refers to the risk that the Fair Value or Future Cash Flows of a Financial Instrument will fluctuate
because of changes in market interest rates. The objectives of the Company''s Interest Rate Risk Management processes
are to lessen the impact of adverse Interest Rate movements on its earnings and Cash Flows and to minimise counter
party risks.

Note : If the rate is decreased by 50 basis Points, profit will increase by an equal amount.

Interest Rate Sensitivity has been calculated assuming the Borrowings outstanding at the reporting date have
been outstanding for the entire reporting period. Further, the calculations for the Unhedged Floating Rate
Borrowing have been done on the closing value of the Foreign Currency.

iii. Price Risk

The Company invests its surplus funds primarily in Mutual Funds, Bonds and others measured at Fair Value through
Profit or Loss. Aggregate value of such Investments as at March 31,2025 is ''10,528.42 (March 31,2024 : '' 12,644.13).
Investments in the Mutual Fund schemes are measured at Fair Value. Accordingly, these do not pose any significant
Price Risk.

(b) Liquidity Risk

Liquidity Risk is the risk that the Company may encounter difficulty in meeting its obligations. The Company mitigates its
Liquidity Risks by ensuring timely collections of its Trade Receivables, close monitoring of its Credit Cycle and ensuring
optimal movements of its Inventories. The table below provides details regarding remaining contractual maturities of
significant Financial Assets and Liabilities at the reporting date :

(c) Credit Risk

Credit Risk is the risk that counter party will not meet its obligations leading to a Financial Loss. The Company has its policies
to limit its exposure to Credit Risk arising from outstanding Trade Receivables. Management regularly assess the credit quality
of its customer''s basis which, terms of payment are decided. Credit limits are set for each customer which are reviewed on
periodic intervals.

The movement of the Impairment Loss on Receivables made by the Company are as under :

38. AMALGAMATION WITH ERSTWHILE IFGL REFRACTORIES LIMITED (ERSTWHILE HOLDING COMPANY)

Hon''ble National Company Law Tribunal, Kolkata Bench (Tribunal) by passing an Order on August 3, 2017 under Sections 230 and
232 of the Companies Act, 2013 sanctioned a Scheme of Amalgamation (Scheme) for merger of erstwhile IFGL Refractories Ltd
("IFGL") with the Company on and from April 1,2016, being the Appointed Date. Scheme had become effective from August 5, 2017
following filing of Order of Hon''ble Tribunal with the Ministry of Corporate Affairs (Registrar of Companies) by the Company and
IFGL on that date. The Scheme was accordingly given effect to in the Financial Year 2016-17 Financial statements.

In accordance with the provisions of aforesaid Scheme -

a. The amalgamation was accounted under the ''Purchase Method'' as prescribed by Accounting Standard 14 - Accounting for
Amalgamation under the previous GAAP.

b. The excess of the value of Equity Shares issued by the Company over the book value of Assets and Liabilities taken over by
the Company and cancellation of Equity Shares held by erstwhile IFGL Refractories Limited in the Company, amounting to
''26,699.46 was recorded as Goodwill arising on Amalgamation.

c. The Goodwill recorded on Amalgamation is being amortised and the Company has estimated its useful life of 10 years.
Accordingly, amortisation for the year amounting to '' 2,669.95 has been recognised in the Standalone Statement of Profit and
Loss.

40. The Company had elected to exercise the option permitted under Section 115BAA of the Income Tax Act, 1961 as introduced by
the Taxation Laws (Amendment) Act, 2019 "New Tax Regime" at the time of filing of Income Tax Return for financial year ending
March 31,2023 and onwards. Accordingly, the Company had re-measured Current Tax Liability and Deferred Tax Liability basis the
lower rate prescribed. Consequently, the Current Tax Liability and Deferred Tax Liability for the year ended March 31,2023 had
decreased by '' 62.99 and '' 870.88 respectively, resulting into reduction in tax charge by '' 933.87 during the year ended March 31,
2024.

41. The Company has used SAP B1 and SAP RISE accounting software for maintaining its books of account which has a feature of
recording the audit trail (Edit Log facility) and the same has operated throughout the year for all relevant transactions recorded
in the software except that the audit trail feature is not enabled at the database level for certain changes using privileged/
administrative access rights insofar as it relates to SAP B1 and SAP RISE accounting software. For "SARAL" Payroll Software, the audit
trail was neither operated nor was enabled during the year. Further, no instance of audit trail feature being tampered with was
noted in respect of the accounting softwares except for SARAL application as audit trail was neither operated nor enabled during
the year.

Additionally, the audit trail of the previous year has been preserved by the Company as per the statutory requirements for record
retention, to the extent it was enabled and recorded in the previous year.

43. OTHER STATUTORY INFORMATION

i. No proceedings has been initiated or are pending against the Company for holding any Benami property under the Benami
Transactions (Prohibition) Act, 1988 and rules made thereunder.

ii. There are no charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

iii. The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

iv. The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities (Inter¬
mediaries) 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.

v. The Company has not received any fund from any persons or entities, including foreign entities (Funding Party) with the under¬
standing (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.

vi. The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as Income during the year in the Tax Assessments under the Income Tax Act, 1961 (such as, search or survey or any
other relevant provisions of the Income Tax Act, 1961).

vii. The Company does not have balance with the Companies struck off under Section 248 of Companies Act, 2013 or Section 560
of Companies Act, 1956.

viii. The Company has not been declared as wilful defaulter by any Bank or Financial Institution or other lender.

ix. There are no exceptional items for the year ended March 31,2024 and March 31,2025.

44. The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post employment benefits received
Presidential assent in September 2020. The Code has been published in the Gazette of India. Certain sections of the Code came into
effect on May 3, 2024. However, the final rules/interpretation have not yet been issued. The Company believes the impact of changes
will not be material.

As per our Report of even date attached

For S. R. Batliboi & Co. LLP For and on behalf of the Board of Directors of

Chartered Accountants IFGL Refractories Limited

ICAI Firm''s Registration Number : 301003E/E300005

per Sanjay Kumar Agarwal S K Bajoria James L McIntosh

Partner Chairman Managing Director

Membership No. : 060352 (DIN - 00084004) (DIN - 09287829)

Arasu Shanmugam Amit Agarwal Mansi Damani

Kolkata Director and Chief Executive Officer India Chief Financial Officer Company Secretary

May 24, 2025 (DIN - 02316638) (FCS - 6769)

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Mar 31, 2024

2.17 Provisions

Provisions are recognised when, as a result of a past event, the Company has a legal or constructive obligation, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. The amount so recognised is a best estimate of the consideration required to settle the obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. In an event when the time value of money is material, the provision is carried at the Present Value of the cash flows estimated to settle the obligation.

2.18 Operating Segments

Operating Segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM). The CODM is responsible for allocating resources and assessing performance of the Operating Segments. Based on such, the Company operates in one Operating Segment, viz. Specialised Refractories and Ceramics.

Segments are organised based on business and geographies which have similar economic characteristics as well as exhibit similarities in nature of products and services offered, the nature of production processes, the type and class of customer and distribution methods. As per Ind AS 108, if a Financial Report contains both the Consolidated Financial Statements of a Parent that is within the scope of this Indian Accounting Standard as well as the Parent''s Standalone Financial Statements, Segment Information is required only in the Consolidated Financial Statements. Accordingly, the Company has presented segment only for Consolidated Financial Statements.

2.19 Borrowings

Borrowings are initially recognised at Fair Value, net of Transaction Costs incurred. Borrowings are subsequently measured at Amortised Cost using Effective Interest Method. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in Profit or Loss over the period of the borrowings using the Effective Interest Method. Fees paid on the establishment of loan facilities are recognised as Transaction Costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.

Borrowings are derecognised from the Balance Sheet when the obligation specified in the contract is discharged, cancelled or expired.

Borrowings are classified as Current and Non-Current Liabilities based on repayment schedule agreed with Banks.

Borrowing Costs

Borrowing Costs that are directly attributable to the acquisition, construction or production of a Qualifying Asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying Assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Borrowing Costs consist of

interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing Cost also includes Exchange Differences to the extent regarded as an adjustment to the Borrowing Costs.

Other Borrowing Costs are expensed in the period in which they are incurred.

2.20 Cash and Cash Equivalents

Cash and Cash Equivalent in the Balance Sheet comprise Cash at Banks and on Hand and Short-Term Deposits with an original maturity of three months or less, that are readily convertible to a known amount of cash and subject to an insignificant risk of changes in value.

2.21 Earnings per Share

Basic Earnings per Share is calculated by dividing the Net Profit or Loss attributable to Equity Holders of the Company by the Weighted Average Number of Equity Shares outstanding during the period.

For the purpose of calculating Diluted Earnings per Share, the Net Profit or Loss for the period attributable to Equity Shareholders of the Company and the Weighted Average Number of Shares outstanding during the period are adjusted for the effects of all dilutive potential Equity Shares.

2.22 Contingent Liabilities

A Contingent Liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A Contingent Liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a Contingent Liability but discloses its existence in the Financial Statements.

2.23 Dividend Income

Dividend is recognised in Profit or Loss only when the right to receive payment is established, it is probable that the economic benefits associated with the Dividend will flow to the Company, and the amount of the Dividend can be measured reliably, which is generally when Shareholders approve the Dividend.

2.24 New and Amended Standards

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated March 31,2023 to amend the following Ind AS which are effective for Annual Periods beginning on or after April 1,2023. The Company applied for the first time these Amendments.

a. Definition of Accounting Estimates - Amendments to Ind AS 8

The Amendments clarify the distinction between changes in Accounting Estimates and changes in Accounting Policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop Accounting Estimates.

The Amendments had no impact on the Company''s Standalone Financial Statements.

b. Disclosure of Accounting Policies - Amendments to Ind AS 1

The Amendments aim to help entities provide Accounting Policy Disclosures that are more useful by replacing the requirement for entities to disclose their ''Significant'' Accounting Policies with a requirement to disclose their ''Material'' Accounting Policies and adding guidance on how entities apply the concept of Materiality in making decisions about Accounting Policy Disclosures.

The Amendments have had an impact on the Company''s Disclosures of Accounting Policies, but not on the measurement, recognition or presentation of any items in the Company''s Financial Statements.

c. Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to Ind AS 12

The Amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases.

The Company previously recognised for Deferred Tax on Leases on a Net basis. As a result of these Amendments, the Company has recognised a separate Deferred Tax Asset in relation to its Lease Liabilities and a Deferred Tax Liability in relation to its Right-of-Use Assets. Since, these balances qualify for offset as per the requirements of Paragraph 74 of Ind AS 12, there is no impact in the Balance Sheet. There was also no impact on the opening Retained Earnings as at April 1, 2022.

Apart from these, consequential amendments and editorials have been made to other Ind AS like Ind AS 101, Ind AS 102, Ind AS 103, Ind AS 107, Ind AS 109, Ind AS 115 and Ind AS 34.

3. USE OF ESTIMATES AND JUDGEMENTS

The preparation of Standalone Financial Statements in conformity with Ind AS requires Management to make estimates and assumptions that affect the reported amounts of Assets and Liabilities and disclosure of Contingent Liabilities at the date of the Standalone Financial Statements and the results of operations during the reporting period end. Although these estimates are based upon Management''s best knowledge of current events and actions, actual results could differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Judgements in applying Accounting Policies

The judgements, apart from those involving estimations (see Note below), that the Company has made in the process of applying its Accounting Policies and that have a significant effect on the amounts recognised in these Standalone Financial Statements pertain to useful life of Intangible Assets acquired in merger. Refer Notes to the Standalone Financial Statements.

Key sources of estimation uncertainty

The following are the key assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of Assets and Liabilities within the next Financial Year.

3.1 Useful lives of Property, Plant and Equipment and Intangible Assets

As described in the Material Accounting Policies, the Company reviews the estimated useful lives of Property, Plant and Equipment and Intangible Assets at the end of each reporting period and any changes are accounted for prospectively.

3.2 Fair Value Measurements and Valuation Processes

Some of the Company''s Assets and Liabilities are measured at Fair Value for Financial Reporting purposes. Fair Value measurements are categorised into Level 1,2 or 3 based on the degree to which the inputs to the Fair Value measurements are observable and the significance of the inputs to the Fair Value measurement in its entirety, which are described as follows :

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the Asset or Liability, either directly or indirectly; and

• Level 3 inputs are unobservable inputs for the Asset or Liability. The Company engages third party valuers, where required, to perform the valuation. Information about the valuation techniques and inputs used in determining the Fair Value of various Assets and Liabilities are disclosed in the Notes to the Standalone Financial Statements.

3.3 Defined Benefit Plans (Gratuity Benefits)

The cost of the Defined Benefit Gratuity Plan and other Post Employment Medical Benefits and the Present Value of the Gratuity obligation are determined using Actuarial Valuations. An Actuarial Valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a Defined Benefit Obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the Discount Rate. In determining the appropriate Discount Rate for plans operated in India, the Management considers the Interest Rates of Government Bonds where remaining maturity of such Bond correspond

to expected term of Defined Benefit Obligation.

The Mortality Rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates. Further details about Gratuity Obligations are given in Note 29.

3.4 Claims, Provisions and Contingent Liabilities

The assessments undertaken in recognising Provisions and Contingencies have been made in accordance with the applicable Ind AS. The Company has ongoing litigations with various regulatory authorities and third parties. Where an outflow of funds is believed to be probable and a reliable estimate of the outcome of the dispute can be made based on Management''s assessment of specific circumstances of each dispute and relevant external advice, Management provides for its best estimate of the liability. Such accruals are by nature complex and can take number of years to resolve and can involve estimation uncertainty. Information about such litigations is provided in Note 33 to the Standalone Financial Statements.

3.5 Provision against obsolete and slow-moving Inventories

The Company reviews the condition of its Inventories and makes provision against obsolete and slow moving Inventory items which are identified as no longer suitable for Sale or Use. Company estimates the Net Realisable Value for such Inventories based primarily on the latest invoice prices and current market conditions. The Company carries out an Inventory review at each Balance Sheet date and makes provision against obsolete and slow moving items. The Company reassesses the estimation on each Balance Sheet date.

3.6 Impairment of Financial Assets/Provision for Bad and Doubtful Debts

The Company assesses impairment based on Expected Credit Losses (ECL) model on Trade Receivables. The Company uses a provision matrix to determine impairment loss allowance on the portfolio of Trade Receivables. The provision matrix is based on its historically observed default rates over the expected life of the Trade Receivable and is adjusted for forward looking estimates. At every reporting date, the historically observed default rates are updated and changes in the forward looking estimates are analysed.

3.7 Taxes

Deferred Tax Assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses including unabsorbed depreciation can be utilised. Significant Management estimate and assumptions is required to determine the amount Deferred Tax Assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

3.8 Leases - Estimating the Incremental Borrowing Rate

The Company does not determine the Interest Rate implicit in the Lease, therefore, it uses its Incremental Borrowing Rate (IBR) to measure Lease Liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the Right-of-Use Asset in a similar economic environment.

3.9 Impairment of Non-Financial Asset

Impairment exists when the carrying value of an Asset or Cash Generating Unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm''s length, for similar assets or observable market prices less incremental costs for disposing off the asset. The value in use calculation is based on a DCF model.

Notes :

a) Securities Premium is used to record the Premium on Issue of Shares. The same is utilised in accordance with the provisions of Section 52 of the Companies Act, 2013.

b) Retained Earnings represents the Profits that the Company has earned till date, less any dividends or other distributions to the Shareholders.

c) Special Economic Zone Reinvestment Reserve had been created out of the Profit for the Financial Year 2022-23 of the eligible SEZ Unit in terms of the provisions of Section 10AA (1)(ii) of Income Tax Act, 1961 under the old tax regime. The Company has elected to exercise the option permitted under Section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Act, 2019 "New Tax Regime" at the time of filing of Income Tax Return for Financial Year ending March 31, 2023. Accordingly, the amount transferred to Special Economic Zone Reinvestment Reserve has been transferred to Retained Earnings in the Financial Year ended March 31,2024.

16.1 The Board of Directors, at its meeting on May 18, 2024, have proposed a Final Dividend of '' 7.00 (70 %) per Equity Share for the Financial Year ended March 31, 2024 subject to the approval of Shareholders at the forthcoming Annual General Meeting, and following Policy on Dividend Distribution of the Company. Proposed Dividend is accounted for in the year in which it is approved by the Shareholders.

The Board of Directors, at its meeting on May 27, 2023, had proposed a Final Dividend of '' 7.00 (70 %) per Equity Share for the Financial Year ended March 31,2023. The total amount of '' 2,522.75 has been paid out during the year ended March 31,2024, with approval of Equity Shareholders obtained at the Annual General Meeting.

17.1 Rupee Term Loan from a Bank is secured by the first pari-passu charge over all Movable Fixed Assets of the Company, both present and future, first pari-passu charge over Land and Building of the Company situated at Visakhapatnam, both present and future, and second pari-passu charge over Current Assets of the Company, both present and future. The interest rate on such term loan is 150 bps over 3 months Treasury Bill and is repayable in 20 equal quarterly instalments after one year of moratorium period from the date of first disbursement.

17.2 Rupee Term Loan from another Bank is secured by the first pari-passu charge over all Movable Fixed Assets of the Company, and second pari-passu charge over Current Assets of the Company. The interest rate on such term loan is 190 bps over RBI Repo Rate and is repayable in 20 equal quarterly instalments after one year of moratorium period from the date of first disbursement.

The Company has also satisfied all Debt Covenants prescribed in terms of Bank Loans. The Company has not defaulted on any loans payable.

17.3 For Current Maturities of Term Loan from Banks (Refer Note 20)

29.2 Provident Fund (Funded)

Provident Fund contributions in respect of employees upto August 2017 of erstwhile IFGL Refractories Limited are made to a Trustee managed exempted fund and interest paid to member thereof is not lower than that declared annually by the Central Government. Shortfall if any is made good by the Company. Membership to said fund has been closed on and from September 1, 2017, subject to necessary approvals and/or permissions. Provident Fund in respect of remaining employees are made to Statutory Provident Fund established by the Central Government. Based on the final guidance for measurement of Provident Fund liabilities of the Trustee managed fund issued by the Actuarial Society of India, the Company''s Liability at the year ended March 31,2024 is '' 1.94 (March 31,2023 : '' Nil) has been actuarially determined by an Independent Actuary using the Projected Unit Credit Method and provided for. Provident Fund in respect of remaining employees of the Holding company are made to Statutory Provident Fund established by the Central Government as stated above.

29.3 Gratuity (Funded)

The Company provides for Gratuity benefit to its Employees. Gratuity entitlement of the employees is as per the provision of the Payment of Gratuity Act, 1972. However in case of employees joining before April 1, 2003 of erstwhile IFGL Refractories Limited, they are entitled to Gratuity as per scheme framed by that Company or as per the Payment of Gratuity Act, 1972, whichever is higher. Liability with regard to Gratuity Plan are determined by the Actuarial Valuation as set out in Note 2.14 (v), based on which the Company makes contribution to the Fund using Projected Unit Credit Method. The most recent Actuarial Valuation of the Fund was carried out as at March 31,2024. Refer Note 29.6 for Actuarial Valuation.

29.4 Superannuation (Funded)

Certain employees joined before March 31, 2004 of erstwhile IFGL Refractories Limited are member of Trustee managed Superannuation Fund. Said Fund provides for Superannuation benefit on retirement/death/incapacitation/termination and was amended from the Defined Benefit to Defined Contribution Plan effective April 1, 2004. Defined Benefit Plan was frozen as on March 31, 2004. Necessary formalities/approvals have been complied with and obtained. Refer Notes 2.14 (iii) and (v) for Accounting Policy relating to Superannuation and Refer Note 29.6 for Actuarial Valuation.

From December 2022, the Company is not effecting payment of contributions in respect of its employees and Member of Company''s Income Tax recognised Superannuation Fund, IFGL Refractories Ltd Employees Superannuation Fund following approval by the Principal Commissioner of Income Tax, Kolkata-2 that surplus lying in Plan-A of the Fund can be adjusted against contributions receivable from the Company under Plan-B thereof. Amount involved for the year ended March 31,2024 is '' 35.46 (December 2022 to March 2023 is '' 13.15).

29.5 Compensated Absence (Unfunded)

The Company provides for accumulated leave benefit for eligible employees. Liabilities are determined by Actuarial Valuation as set out in Note 2.14 (vi) using Projected Unit Credit Method.

29.6 Following are the further particulars with respect to Defined Benefit Plans of the Company for the year ended March 31, 2024 :

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 (Present Value of the Defined Benefit Obligation calculated with the Projected Unit Credit Method at the end of the reporting period) has been applied while calculating the Defined Benefit Liability recognised in the Balance Sheet.

The methods and types of assumptions used in preparing the Sensitivity Analysis did not change compared to the prior period.

Risk Exposure :

Through its Defined Benefit Plans, the Company is exposed to a number of risks, the most significant of which are detailed below :

a. Investment Risk : The Defined Benefit Plans are funded Government Securities and Units of Insurers. The Company does not have any liberty to manage the funds provided to Insurance Companies.

b. Interest Risk : A decrease in the interest rate on Plan Assets will increase the Plan Liability.

c. 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.

d. Salary Growth Risk : The Present Value of Defined Benefit Plan Liability is calculated by reference to the future salaries of plan participants. An increase in Salary will increase the Plan Liability.

Defined Benefit Liability and Employer Contributions

Expected contributions to post employment benefit plans for the year ending March 31,2024 is '' 51.03 ( March 31,2023 : 13.84)

The Weighted Average Duration of the Defined Benefit Obligation (Gratuity) is 8 years for the year ended March 31,2024 (March 31,2023 : 7 years). The expected maturity analysis of Undiscounted Gratuity is as follows :

b) The Company challenged vires of Explanation to Section 10AA(1) of the Income Tax Act, 1961 (the Act) inserted on and from Assessment Year beginning April 1,2018, on grounds that such Explanation denies the benefit intended to be provided under the said Section, by filing a Writ Petition before Hon''ble High Court at Calcutta (Hon''ble High Court). During the year ended March 31, 2024, the said Writ Petition was dismissed by the Single Bench of the Hon''ble High Court. Being aggrieved, the Company preferred an Appeal before the Division Bench of the Hon''ble High Court which has admitted the same on January 10, 2024. Tax amount involved is '' 831.53 (March 31,2023 : '' 922.50) and it has been considered as possible in nature, basis a legal opinion obtained by the Company. In the opinion of the Management, outcome of aforesaid proceedings will not materially impact Company''s financial position and result of operations.

c) During the year ended March 31, 2023, the Company''s claim for AY 2020-21 for '' 2,815.91 (tax impact of '' 983.99) towards deduction on account of Depreciation on Goodwill arising on Amalgamation was disallowed under Income Tax Assessment proceedings and being aggrieved thereby, the Company has filed an Appeal. Recently, Income Tax Authorities have issued Notices under Section 148 of the Act for Assessment Years 2018-19 and 2019-20 thereby reopening assessments for said Assessment Years on the ground that similar claims of '' 5,006.06 (tax impact of '' 1,732.50) and '' 3,754.55 (tax impact of '' 1,311.99) in the Assessment Years 2018-19 and 2019-20 respectively escaped Assessment as Income. The Company supported by legal opinion, continues to believe that aforesaid deductions claimed are sustainable on merit and remain unaffected.

The Management assessed that Cash and Cash Equivalents, Other Bank Balances, Trade Receivables, Trade Payables, Other Financial Assets and Other Financial Liabilities approximate their Carrying Amounts largely due to the Short-Term Maturities of these instruments.

The Fair Value of Lease Liabilities is estimated by Discounting Future Cash Flows using rates currently available for debt on similar terms, credit risk and remaining maturities. In addition to being sensitive to a reasonably possible change in the forecast cash flows or the discount rate, the Fair Value of the Equity Instruments is also sensitive to a reasonably possible change in the growth rates. Management regularly assesses a range of reasonably possible alternatives for those significant unobservable inputs and determines their impact on the total Fair Value.

The Fair Values of the Company''s interest bearing borrowings are determined by using DCF method using discount rate that reflects issuer''s borrowing rate as at the end of the reporting period. The own non performance risk as at March 31, 2024 was assessed to be insignificant. The discount for lack of marketability represents the amounts that the Company has determined that market participants would take into account when pricing the Investments.

35.3 Financial Risk Management Objectives

The Company''s activities expose it to a variety of Financial Risks, including Market Risk, Credit Risk and Liquidity Risk. The Company continues to focus on a system based approach to Business Risk Management. The Company''s Financial Risk Management process seeks to enable the early identification, evaluation and effective management of key risks facing the business. Backed by strong Internal Control Systems, the current Risk Management System rests on policies and procedures issued by appropriate authorities; process of regular reviews/audits to set appropriate risk limits and controls; monitoring of such risks and compliance confirmation for the same.

The Company''s Financial Instruments are exposed to market changes. The Company is exposed to following significant Market Risk :

i. Foreign Currency Risk

ii. Interest Rate Risk

iii. Price Risk

Market Risk Exposures are measured using Sensitivity Analysis. There has been no change to the Company''s exposure to Market Risks or the manner in which these risks are being managed and measured.

Fair Value Hierarchy

The following table provides an analysis of Financial Instruments that are measured subsequent to initial recognition at Fair Value, grouped into Level 1 to Level 3, as described below :

Quoted/Repurchase prices in an active market (Level 1) : This level of hierarchy includes Financial Assets that are measured by reference to Quoted Repurchase Prices (unadjusted) in active markets for Identical Assets or Liabilities. This category consists of Investment in Quoted Equity Shares, and Mutual Fund Investments.

Valuation techniques with observable inputs (Level 2) : This level of hierarchy includes Financial Assets and Liabilities, measured using inputs other than Quoted Prices included within Level 1 that are observable for the Asset or Liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices). This level of hierarchy does not include any instrument.

Valuation techniques with significant unobservable inputs (Level 3) : This level of hierarchy includes Financial Assets and Liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair Values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

There have been no transfers between Level 1 and Level 2 during the years ended March 31,2024 and March 31,2023.

In determining Fair Value Measurement, the impact of potential climate related matters, including legislation, which may affect the Fair Value Measurement of Assets and Liabilities in the Financial Statements has been considered. These risks in respect of climate related matters are included as key assumptions where they materially impact the measure of recoverable amount. These assumptions have been included in the Cash Flow forecasts in assessing value in use amounts.

At present, the impact of climate related matters is not material to the Company''s Financial Statements.

i. Foreign Currency Risk

The Company undertakes transactions denominated in Foreign Currency which results in Exchange Rate fluctuations. Such Exchange Rate Risk primarily arises from transactions made in Foreign Exchange and reinstatement risks arising from recognised Assets and Liabilities, which are not in the Company''s functional Currency (Indian Rupees).

Interest Rate Risk refers to the risk that the Fair Value or Future Cash Flows of a Financial Instrument will fluctuate because of changes in market interest rates. The objectives of the Company''s Interest Rate Risk Management processes are to lessen the impact of adverse Interest Rate movements on its earnings and Cash Flows and to minimise counter party risks.

The Company is exposed to interest rate volatilities primarily with respect to its Term Borrowings from Banks as well as Financial Institutions, Export Packing Credit Facilities and Cash Credit Facilities. Such volatilities primarily arise due to changes in money supply within the economy and/or liquidity in banking system due to Asset/Liability mismatch, poor quality assets etc. of Banks. The Company manages such risk by operating with banks having superior Credit Rating in the market as well as Financial Institutions.

c) Credit Risk

Credit Risk is the risk that counter party will not meet its obligations leading to a Financial Loss. The Company has its policies to limit its exposure to Credit Risk arising from outstanding Trade Receivables. Management regularly assess the credit quality of its customer''s basis which, terms of payment are decided. Credit limits are set for each customer which are reviewed on periodic intervals.

38. AMALGAMATION WITH ERSTWHILE IFGL REFRACTORIES LIMITED (ERSTWHILE HOLDING COMPANY)

Hon''ble National Company Law Tribunal, Kolkata Bench (Tribunal) by passing an Order on August 3, 2017 under Sections 230 and 232 of the Companies Act, 2013 sanctioned a Scheme of Amalgamation (Scheme) for merger of erstwhile IFGL Refractories Ltd ("IFGL") with the Company on and from April 1,2016, being the Appointed Date. Scheme had become effective from August 5, 2017 following filing of Order of Hon''ble Tribunal with the Ministry of Corporate Affairs (Registrar of Companies) by the Company and IFGL on that date. The Scheme was accordingly given effect to in the Financial Year 2016-17 Financial Statements.

In accordance with the provisions of aforesaid Scheme -

a. The amalgamation was accounted under the ''Purchase Method'' as prescribed by Accounting Standard 14 - Accounting for Amalgamation under the previous GAAP.

b. The excess of the Value of Equity Shares issued by the Company over the Book Value of Assets and Liabilities taken over by the Company and cancellation of Equity Shares held by erstwhile IFGL Refractories Limited in the Company, amounting to '' 26,699.46 was recorded as Goodwill arising on Amalgamation.

c. The Goodwill recorded on Amalgamation is being amortised and the Company has estimated its useful life of 10 years. Accordingly, amortisation for the year amounting to '' 2,669.95 has been recognised in the Standalone Statement of Profit and Loss.

39. TAX EXPENSE

This note provides an analysis of the Company''s Income Tax Expense, shows amounts that are recognised directly in Equity and how the Tax Expenses is affected by non assessable and non deductible items. It also explains significant estimates made in relation to tax positions.

40. The Company has elected to exercise the option permitted under Section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Act, 2019 "New Tax Regime" at the time of filing of Income Tax Return for Financial Year ending March 31,2023. Accordingly, the Company has re-measured Current Tax Liability and Deferred Tax Liability basis the lower rate prescribed. Consequently, the Current Tax Liability and Deferred Tax Liability for the year ended March 31,2023 has decreased by '' 62.99 and '' 870.88 respectively, resulting into reduction in tax charge by '' 933.87 during the year ended March 31,2024.

Tax charge for the Current Financial Year (Financial Year 2023-24) has also been recomputed during the year ended March 31,2024 based on New Tax Regime.

41. The Company has used accounting software for maintaining its books of account which has a feature of recording the audit trail (Edit Log facility) and the same has operated throughout the year for all relevant transactions recorded in the software except that the audit trail feature is not enabled at the database level for certain changes using privileged/administrative access rights insofar as it relates to SAP Accounting Software. For "SARAL" Payroll Software, the audit trail was neither operated nor was enabled during the year. Further, no instance of audit trail feature being tampered with was noted in respect of the accounting software except for SARAL application as audit trail was neither operated nor enabled during the year.

43. OTHER STATUTORY INFORMATION

i. No proceedings has been initiated or are pending against the Company for holding any Benami Property under the Benami Transactions (Prohibition) Act, 1988 and Rules made thereunder.

ii. There are no charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

iii. The Company has not traded or invested in Crypto Currency or Virtual Currency during the Financial Year.

iv. 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.

v. 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.

vi. The Company does not have any such transaction which is not recorded in the Books of Accounts that has been surrendered or disclosed as Income during the year in the Tax Assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

vii. The Company does not have balance with the companies struck off under Section 248 of Companies Act, 2013 or Section 560 of Companies Act, 1956.

viii. The Company has not been declared as wilful defaulter by any Bank or Financial Institution or Other Lender.

ix. There are no exceptional items for the year ended March 31,2024.

44. One of the customers of the Company has opted for Preventive Restructuring under laws of Czech Republic. In the opinion of Company Management, realisability of dues from said customer is uncertain and doubtful in foreseeable future. As a matter of abundant precaution and prudence, the Company has made Provision for Trade Receivables aggregating to '' 3,169.42, goods sold but in Transit aggregating to '' 784.73 and Reversed Commission aggregating to '' 147.85 accrued in respect of the said Sales, during the year ended March 31,2024.

45. The Code on Social Security, 2020 (''Code'') relating to Employee Benefits during employment and post employment benefits received Presidential Assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final Rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

In terms of our Report attached.

For S. R. Batliboi & Co. LLP For and on behalf of the Board of Directors of

Chartered Accountants IFGL Refractories Limited

ICAI Firm''s Registration Number : 301003E/E300005

per Sanjay Kumar Agarwal S K Bajoria James L McIntosh

Partner Chairman Managing Director

Membership No. : 060352 (DIN - 00084004) (DIN - 09287829)

Arasu Shanmugam Amit Agarwal Mansi Damani

Kolkata Director and Chief Executive Officer India Chief Financial Officer Company Secretary

May 18, 2024 (DIN - 02316638) (FCS - 6769)

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Mar 31, 2023

1. Share issued pursuant to the Scheme of Amalgamation

Pursuant to the Scheme of Amalgamation as detailed in Note 38, the Company issued and allotted 3,46,10,472 Equity Shares of '' 10 each fully paid and 14,87,160 Equity Shares of the Company of ''10 each fully paid held by erstwhile IFGL Refractories Limited were cancelled on 18th September 2017.

2. Terms/Rights attached to Equity Shares

The Company has only one class of Equity Shares having Face Value of '' 10 each. Each holder of such shares is entitled to 1 vote per Share. In the event of liquidation of the Company, the Equity Shareholders will be entitled to receive the remaining Assets of the Company, after distribution of all preferential amounts, in proportion to their shareholding. The Company in their General Meeting may declare Dividends, but no Dividend shall exceed the amount recommended by the Board of Directors of the Company.

a) Securities Premium is used to record the Premium on Issue of Shares. The same is utilised in accordance with the provisions of Section 52 of the Companies Act, 2013.

b) Retained Earnings represents the Profits that the Company has earned till date, less any dividends or other distributions to the Shareholders.

c) Special Economic Zone Reinvestment Reserve has been created out of the profit of the eligible SEZ unit in terms of the provisions of Section 10AA (1)(ii) of Income Tax Act, 1961. The reserve should be utilized by the Company for acquiring new Plant and Machinery for the purpose of its business in terms of the provisions of the Section 10AA (2) of the Income Tax Act, 1961.

d) During the year ended 31 March 2023, utilization from Special Economic Zone Reinvestment Reserve includes additional acquisition of Plant and Machinery in the business of the Company in terms of the provisions of the Section 10AA(2) of the Income Tax Act, 1961, upon which, the amount has been transferred to Special Economic Zone Reinvestment Reserve Utilisation Account. Post completion of 4 years, amount would be transferred from Special Economic Zone Reinvestment Reserve Utilisation Account to General Reserve.

16.1 The Board of Directors, at its meeting on 27th May 2023, have proposed a Final Dividend of '' 7 (70 %) per Equity Share for the Financial Year ended 31st March 2023 subject to the approval of Shareholders at the forthcoming Annual General Meeting and following Policy on Dividend Distribution of the Company. Proposed Dividend is accounted for in the year in which it is approved by the Shareholders.

The Board of Directors, at its meeting on 28th May 2022, had proposed a Final Dividend of '' 7 (70 %) per Equity Share for the Financial Year ended 31st March 2022. The total amount of '' 2,522.75 has been paid out during the year ended 31st March 2023, with approval of Equity Shareholders obtained at the Annual General Meeting.

17.1 Rupee Term Loan from a Bank is secured by the first pari-passu charge over all Movable Fixed Assets of the Company, both present and future, first pari-passu charge over Land and Building of the Company situated at Vishakhapatnam, both present and future, and second pari-passu charge over Current Assets of the Company, both present and future. The interest rate on such term loan is 150 bps over 3 months Treasury Bill and is repayable in 20 equal quarterly instalments after one year of moratorium period from the date of first disbursement. Rupee term loan from another Bank is secured by the first pari-passu charge over all movable Fixed Assets of the Company and second pari-passu charge over Current Assets of the Company. The interest rate on such Term Loan is 190 bps over RBI Repo rate and is repayable in 20 equal quarterly instalments after one year of moratorium period from the date of first disbursement.

The Company has also satisfied all Debt Covenants prescribed in terms of Bank Loans. The Company has not defaulted on any loans payable.

20.1 Working Capital and Packing Credit Loans from Banks are secured by hypothecation of Raw Materials, Stock-in-Progress, Finished Goods, Consumables, Spares, Stores, Receivables and Other Current Assets both present and future on pari passu basis and second charge over all movable Fixed Assets of the Company on pari passu basis and in respect of a Bank, there is additional second charge on factory Land and Building of the Company situated at Kalunga.

20.2 The Company has been sanctioned Working Capital limits in excess of Rupees five crores in aggregate from Banks on the basis of security as mentioned in Note 20.1 above. The revised intimations in respect of amounts initially reported in quarterly returns/ statements filed by the Company with such banks are in agreement with the Unaudited Books of Account of the Company. The Company has satisfied all Debt covenants prescribed in terms of Bank Loans. The Company has not defaulted on any loans payable.

29.1 The Company has recognised in the Standalone Statement of Profit and Loss for the year ended 31st March 2023 an amount of '' 261.48 (31st March 2022 : '' 238.64) as expenses under Defined Contribution Plans.

29.2 Provident Fund (Funded)

Provident Fund contributions in respect of employees upto August 2017 of erstwhile IFGL Refractories Limited are made to a Trustee managed exempted fund and interest paid to member thereof is not lower than that declared annually by the Central Government. Shortfall if any is made good by the Company. Membership to said fund has been closed on and from 1st September 2017, subject to necessary approvals and/or permissions. Provident Fund in respect of remaining employees are made to Statutory Provident Fund established by the Central Government. Based on the final guidance for measurement of Provident Fund Liabilities of the Trustee managed fund issued by the Actuarial Society of India, the Company''s Liability at the year end of '' Nil (31.03.2022 : '' Nil) has been actuarially determined by an Independent Actuary.

29.3 Gratuity (Funded)

The Company provides for Gratuity benefit to its Employees. Gratuity entitlement of the Employees is as per the provision of the Payment of Gratuity Act, 1972. However in case of employees joining before 1st April 2003 of erstwhile IFGL Refractories Limited, they are entitled to Gratuity as per scheme framed by that Company or as per the Payment of Gratuity Act,1972, whichever is higher. Liability with regard to Gratuity Plan are determined by the Actuarial Valuation as set out in Note 2.14 (v), based on which the Company makes contribution to the Fund using Projected Unit Credit method. The most recent Actuarial Valuation of the Fund was carried out as at 31st March 2023.

29.4 superannuation (funded)

Certain employees joined before 31st March 2004 of erstwhile IFGL Refractories Limited are member of Trustee managed Superannuation Fund. Said Fund provide for Superannuation benefit on retirement/death/incapacitation/termination and was amended from the Defined Benefit to Defined Contribution Plan effective 1st April, 2004. Defined Benefit Plan was frozen as on 31st March 2004. Necessary formalities/ approvals have been complied with and obtained. Also Refer Notes 2.14 (iii) and (v) for accounting policy relating to Superannuation.

From December 2022, the Company is not effecting payment of contributions in respect of its employees and Member of Company''s Income Tax recognised Superannuation Fund, IFGL Refractories Ltd - Employees Superannuation Fund following approval by the Principal Commissioner of Income Tax, Kolkata-2 that surplus lying in Plan-A of the Fund can be adjusted against contributions receivable from the Company under Plan-B thereof. Amount involved for the period December 2022 to March 2023 is '' 13.15.

29.5 compensated Absence (unfunded)

The Company provides for encashment of accumulated Leave Benefit for eligible employees (i.e. workmen) at the time of retirement, death, incapacitation or termination of employment, subject to a maximum of one hundred and twenty days based on the last drawn salary. Liabilities are determined by Actuarial Valuation as set out in Note 2.14 (vi) using Projected Unit Credit method.

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 (Present Value of the Defined Benefit Obligation calculated with the Projected Unit Credit Method at the end of the reporting period) has been applied while calculating the Defined Benefit Liability recognised in the Balance Sheet.

The methods and types of assumptions used in preparing the Sensitivity Analysis did not change compared to the prior period.

Risk Exposure :

Through its Defined Benefit Plans, the Company is exposed to a number of risks, the most significant of which are detailed below :

a. Investment Risk : The Defined Benefit Plans are funded Government Securities and Units of Insurers. The Company does not has any liberty to manage the funds provided to Insurance Companies.

b. Interest Risk : A decrease in the interest rate on Plan Assets will increase the Plan Liability.

c. 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.

d. Salary Growth Risk : The Present Value of Defined Benefit Plan Liability is calculated by reference to the future salaries of plan participants. An increase in Salary will increase the Plan Liability.

	As at 31st March 2023	As at 31st March 2022
33. CONTINGENT LIABILITIES :
a) Claims against the Company not acknowledged as Debts :
i) Sales Tax matter under dispute relating to issues of applicability and classification [related payments '' 7.61 (31st March 2022 : '' 35.41)]	4.95	6.88
ii) Goods and Service Tax matter under dispute [related payments '' 0.03 (31st March 2022 : '' 0.03 )]	0.56	54.15
iii) Income Tax matters under dispute relating to issues of applicability and determination [related payments '' 8.75 (31st March 2022 : '' 0.54)]	1,244.62	572.39
iv) Service Tax matter under dispute relating to issue of applicability	1.54	37.11
v) Duty Drawback relating to Customs Act, 1962	-	1.59

b) The Company has challenged vires of Explanation to Section 10AA(1) of the Income Tax Act, 1961 inserted on and from Assessment Year beginning 1st April 2018 by filing Writ Petition No 544 of 2019 before Hon''ble High Court at Calcutta, which has been admitted on 7th November 2019, on grounds that such explanation denies the benefit that was intended to be provided under the said Section. Management believes, supported by legal opinion obtained, that the Company will be able to defend its position of continuing to determine its Income Tax obligation based on provisions of the Income Tax Act, 1961 applicable prior to insertion of the aforesaid explanation. Consequently, the resultant Deferred Tax Asset of '' 1,203.59 (31st March 2022 : '' 1,203.59) has been considered realisable and, hence, continues to be recognised in these Financial Statements till 31st March 2023. In the opinion of the Management, outcome of these proceedings will not have a material effect on the Company''s financial position and result of operations.

The Company has assessed that it is only possible, but not probable, that outflow of economic resources will be required.

35 FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES :35.1 Capital Management

The Company aims at maintaining a strong capital base maximizing Shareholders'' Wealth safeguarding Business continuity and augments its internal generations with a judicious use of Borrowing facilities to fund spikes in Working Capital that arise from time to time as well as requirements to finance business growth.

The Management assessed that Cash and Cash Equivalents, Other Bank Balances, Trade Receivables, Trade Payables, Other Financial Assets and Other Financial Liabilities approximate their Carrying Amounts largely due to the Short-Term Maturities of these instruments.

The Fair Value of Lease Liabilities is estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities. In addition to being sensitive to a reasonably possible change in the forecast cash flows or the discount rate, the Fair Value of the Equity Instruments is also sensitive to a reasonably possible change in the growth rates. Management regularly assesses a range of reasonably possible alternatives for those significant unobservable inputs and determines their impact on the total Fair Value.

The Fair Values of the Company''s interest bearing borrowings are determined by using DCF method using discount rate that reflects issuer''s borrowing rate as at the end of the reporting period. The own non performance risk as at 31st March 2023 was assessed to be insignificant. The discount for lack of marketability represents the amounts that the Company has determined that market participants would take into account when pricing the Investments.

35.3 Financial Risk Management Objectives

The Company''s activities expose it to a variety of Financial Risks, including Market Risk, Credit Risk and Liquidity Risk. The Company continues to focus on a system based approach to Business Risk Management. The Company''s Financial Risk Management process seeks to enable the early identification, evaluation and effective management of key risks facing the business. Backed by strong Internal Control Systems, the Current Risk Management System rests on policies and procedures issued by appropriate authorities; process of regular reviews/audits to set appropriate risk limits and controls; monitoring of such risks and compliance confirmation for the same.

a) Market Risk

The Company''s Financial Instruments are exposed to market changes. The Company is exposed to following significant Market Risk :

i. Foreign Currency Risk

ii. Interest Rate Risk

iii. Price Risk

Market Risk Exposures are measured using Sensitivity Analysis. There has been no change to the Company''s exposure to Market Risks or the manner in which these risks are being managed and measured.

fair value Hierarchy

The following table provides an analysis of Financial Instruments that are measured subsequent to initial recognition at Fair Value, grouped into Level 1 to Level 3, as described below :

Quoted/repurchase prices in an active market (Level 1) : This level of hierarchy includes Financial Assets that are measured by reference to quoted/repurchase prices (unadjusted) in active markets for identical Assets or Liabilities. This category consists of Investment in Quoted Equity Shares, and Mutual Fund Investments.

valuation techniques with observable Inputs (Level 2) : This level of hierarchy includes Financial Assets and Liabilities, measured using Inputs other than Quoted prices included within Level 1 that are observable for the Asset or Liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). This level of hierarchy does not include any instrument.

valuation techniques with significant unobservable Inputs (Level 3) : This level of hierarchy includes Financial Assets and Liabilities measured using Inputs that are not based on observable Market Data (unobservable Inputs). Fair Values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable Current Market Transactions in the same instrument nor are they based on available Market Data.

There have been no transfers between Level 1 and Level 2 during the years ended 31st March 2023 and 31st March 2022.

In determining Fair Value Measurement, the impact of potential climate related matters, including legislation, which may affect the Fair Value Measurement of Assets and Liabilities in the Financial Statements has been considered. These risks in respect of climate related matters are included as key assumptions where they materially impact the measure of recoverable amount. These assumptions have been included in the Cash Flow forecasts in assessing value-in-use amounts. At present, the impact of climate related matters is not material to the Company''s Financial Statements.

i. Foreign Currency Risk

The Company undertakes transactions denominated in Foreign Currency which results in Exchange Rate fluctuations. Such Exchange Rate risk primarily arises from transactions made in Foreign Exchange and reinstatement risks arising from recognised Assets and Liabilities, which are not in the Company''s functional Currency (Indian Rupees).

ii. Interest Rate Risk

Interest Rate Risk refers to the risk that the Fair Value or Future Cash Flows of a Financial Instrument will fluctuate because of changes in market interest rates. The objectives of the Company''s Interest Rate Risk Management processes are to lessen the impact of adverse Interest Rate movements on its earnings and Cash Flows and to minimise counter party risks.

The Company is exposed to Interest Rate volatilities primarily with respect to its Term borrowings from Banks as well as Financial Institutions, Export Packing Credit facilities, Cash Credit facilities. Such volatilities primarily arise due to changes in money supply within the economy and/or liquidity in banking system due to asset/liability mismatch, poor quality assets etc. of banks. The Company manages such risk by operating with banks having superior credit rating in the market as well as Financial Institutions.

Note : If the Rate is decreased by 50 bps Profit will increase by an equal Amount.

Interest Rate Sensitivity has been calculated assuming the Borrowings outstanding at the reporting date have been outstanding for the entire reporting period. Further, the calculations for the unhedged floating rate Borrowing have been done on the closing value of the Foreign Currency.

iii. Price Risk

The Company invests its surplus funds primarily in Mutual Funds, Bonds and others measured at Fair Value through Profit or Loss. Aggregate value of such Investments as at 31st March 2023 is '' 13,234.74 (31st March 2022 : '' 13,480.79). Investments in the Mutual Fund schemes are measured at Fair Value. Accordingly, these do not pose any significant Price Risk.

b) Liquidity Risk

Liquidity Risk is the Risk that the Company may encounter difficulty in meeting its obligations. The Company mitigates its Liquidity Risks by ensuring timely collections of its Trade Receivables, close monitoring of its Credit Cycle and ensuring optimal movements of its Inventories. The table below provides details regarding remaining contractual maturities of significant Financial Assets and Liabilities at the reporting date

The Company manages this risk by utilising unused credit lines and portfolio diversion. The Company has investment policy for deployment of surplus liquidity, which allows Investment in Debt Securities and Mutual Fund Schemes.

c) Credit Risk

Credit Risk is the risk that counter party will not meet its obligations leading to a Financial Loss. The Company has its policies to limit its exposure to Credit Risk arising from outstanding Trade Receivables. Management regularly assess the credit quality of its customer''s basis which, terms of payment are decided. Credit limits are set for each customer which are reviewed on periodic intervals.

The remuneration to the Key Managerial Personnel include provisions towards Gratuity as it is determined on an actuarial basis for the Company as a whole.

Terms and Conditions of transactions with Related Parties

The sales to and purchases from Related Parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any Related Party Receivables or Payables. For the year ended 31st March 2023, the Company has not recorded any impairment of Receivables relating to amounts owed by Related Parties (31st March 2022 : Nil).

37. INFORMATION GIVEN IN ACCORDANCE WITH THE REQUIREMENTS OF IND AS 108 ON SEGMENT REPORTING :

The Company operates in a single segment and is engaged in the business of manufacture, trading, sale of refractories and services thereof.

In terms of Ind AS 108 ''Segment Reporting'' prescribed under Section 133 of the Companies Act, 2013 Segment Information is presented in the Consolidated Financial Statements of the Company. Given below is the information relating to Geographical Market of the Company :

No customer individually accounted for more than 10% of the revenues during the year ended 31st March 2023 and 31st March 2022.

38. AMALGAMATION WITH ERSTWHILE IFGL REFRACTORIES LIMITED (ERSTWHILE HOLDING COMPANY)

Hon''ble National Company Law Tribunal, Kolkata Bench (Tribunal) by passing an Order on 3rd August 2017 under Sections 230 and 232 of the Companies Act 2013 sanctioned a Scheme of Amalgamation (Scheme) for merger of erstwhile IFGL Refractories Ltd ("IFGL") with the Company on and from 1st April 2016, being the Appointed Date. Scheme had become effective from 5th August 2017 following filing of Order of Hon''ble Tribunal with the Ministry of Corporate Affairs (Registrar of Companies) by the Company and IFGL on that date. The Scheme was accordingly given effect to in the Financial Year 2016-17 Financial Statements.

In accordance with the provisions of aforesaid scheme-

a. The amalgamation was accounted under the ''Purchase Method'' as prescribed by Accounting Standard 14 - Accounting for Amalgamation under the previous GAAP.

b. The excess of the Value of Equity Shares issued by the Company over the book value of Assets and Liabilities taken over by the Company and cancellation of Equity Shares held by erstwhile IFGL Refractories Limited in the Company, amounting to '' 26,699.46 was recorded as goodwill arising on amalgamation.

c. The Goodwill recorded on amalgamation is being amortised and the Company has estimated its useful life of 10 years. Accordingly, amortisation for the year amounting to '' 2,669.95 has been recognised in the Standalone Statement of Profit and Loss.

39. TAx ExPENsE :

This note provides an analysis of the Company''s Income Tax Expense, shows amounts that are recognised directly in Equity and how the Tax expenses is affected by non assessable and non deductible items. It also explains significant estimates made in relation to tax positions.

40. Following amendments made by the Finance Act, 2021 to the relevant sections of the Income Tax Act, 1961, whereby Goodwill arising on amalgamation will not be considered as a depreciable asset and depreciation on Goodwill will not be allowable as deductible expenditure effective 1st April 2020, the Company has not claimed deduction of depreciation on such Goodwill under Income Tax for period beginning on that date. Company''s Management, supported by legal opinions, continues to believe that such deduction claimed in prior assessment years are sustainable and remain unaffected. During the year, the Company''s claim of '' 2,815.91 (Tax impact of '' 983.99) towards such deduction for Assessment Year 2020-21 has been disallowed . Being aggrieved thereby, the Company has filed an appeal with the Commissioner of Income Tax (Appeals).

41. The Company continues to pay Income Tax under older tax regime and have not opted for lower tax rate pursuant to Taxation Law (Amendment) Ordinance, 2019 considering other benefits under the Income Tax Act, 1961.

43. OTHER STATUTORY INFORMATION

i. The Company does not have any Benami property, for which any proceeding has been initiated or pending against the Company under the Benami Transactions (Prohibition) Act,1988 and Rules made there under.

ii. The Company do not have any charges or satisfaction which is yet to be registered with Registrar of Companies (ROC) beyond the statutory period.

iii. The Company has not traded or invested in Crypto Currency or Virtual Currency during the Financial Year.

iv. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), 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.

v. The Company has not received any fund from any person(s) or entity(ies), 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.

vi. The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as Income during the year in the Tax Assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

vii. There are no exceptional items for the year ended 31st March 2023.

44. Expense for the year ended 31st March 2022 includes provision for Trade Receivables aggregating to '' 1,010.13 (reported under "Other expenses"), provision for inventories aggregating to '' 507.64 despatched by the Company but yet to be delivered to two customers located in the Mariupol, Ukraine under the terms of underlying contracts [reported under ["(Increase)/Decrease in Inventories of Finished Goods, Stock-in-Trade and Work-in-Progress"] and reversal of sales commission aggregating '' 138.42 (reported under "Other Expenses") accrued in respect of aforesaid Sales.

45. The Indian Parliament has approved the Code on Social Security, 2020 (''the Code'') which, inter alia, deals with Employee Benefits during Employment and post Employment. The Code has been published in the Gazette of India. The effective date of the Code is yet to be notified and the rules for quantifying the financial impact are also yet to be issued. In view of this, the impact of the change, if any, will be assessed and recognized post Notification of the relevant Provisions.

46. Previous year figures have been re-grouped / rearranged, where necessary.

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Mar 31, 2019

Notes to the Standalone Financial Statements

36. INFORMATION GIVEN IN ACCORDANCE WITH THE REQUIREMENTS OF IND AS 108 ON SEGMENT REPORTING

In terms of Ind AS 108 ''Segment Reporting'' prescribed under Section 133 of the Companies Act, 2013, segment information is presented in the Consolidated Financial Statements of the Company. Given below is the information relating to Geographical market of the Company.

	For the year ended 31st March 2019	For the year ended 31st March 2018
Revenue from Operations
Within India	21,205.43	18,483.12
Outside India	26,707.29	26,242.55
Total	47,912.72	44,725.67

	As at 31st March 2019	As at 31st March 2018
Non-Current Assets excluding Financial Instruments and Deferred Tax Assets
Within India	34,644.94	36,068.00
Outside India	-	-
Total	34,644.94	36,068.00
Purchase of Tangible and Intangible Assets	2,453.99	1,125.42

37. AMALGAMATION WITH ERSTWHILE IFGL REFRACTORIES LIMITED (ERSTWHILE HOLDING COMPANY)

Hon''ble National Company Law Tribunal, Kolkata Bench (Tribunal) by passing an Order on 3rd August 2017 under Sections 230 and 232 of the Companies Act, 2013 sanctioned a Scheme of Amalgamation (Scheme) for merger of erstwhile IFGL Refractories Limited (IFGL) with the Company on and from 1st April 2016, being the Appointed Date. Scheme became effective from 5th August 2017 following filing of Order of Hon''ble Tribunal with the Ministry of Corporate Affairs (Registrar of Companies) by the Company and IFGL on that date. The Scheme was accordingly given effect to in the previous year''s Financial Statements.

In accordance with the provisions of aforesaid Scheme :

a. The amalgamation was accounted under the ''Purchase Method'' as prescribed by Accounting Standard 14 - Accounting for Amalgamations under the previous GAAP.

b. The excess of the value of Equity Shares issued by the Company over the book value of assets and liabilities taken over by the Company and cancellation of Equity Shares held by erstwhile IFGL Refractories Limited in the Company, amounting to Rs. 26,699.46 was recorded as goodwill arising on amalgamation.

c. In accordance with the Scheme, the goodwill recorded on amalgamation is being amortised and the Company has estimated its useful life of 10 years. Accordingly, amortisation for the year amounting to Rs. 2,669.95 has been recognised in the Standalone Statement of Profit and Loss.

38. OPERATING LEASE COMMITMENTS

The Company entered into non-cancelable operating lease agreements in connection with certain office spaces. Tenure of lease is for a period of 5 years. Terms of the lease include operating terms of renewal, re-imbursement of maintenance charges, increase in future maintenance charges, etc. The future minimum lease commitments of the Company are as follows :

As at As at 31st March 2019 31st March 2018
Within 1 Year	36.73	36.73
More than 1 Year upto 5 Years	110.19	146.92
Total	146.92	183.65

Lease rentals recognised in Note 30 under the heading "Rent" of the Standalone Statement of Profit and Loss amounts to Rs. 36.73 (31st March 2018 : Rs. 36.73)

39. INCOME TAX EXPENSE

This note provides an analysis of the Company''s Income Tax Expense, shows amounts that are recognised directly in Equity and how the Tax Expenses is affected by non-assessable and non-deductible items. It also explains significant estimates made in relation to tax positions.

	For the year ended 31st March 2019	For the year ended 31st March 2018
a) Income Tax Expense
Current Tax on Profits for the year	714.27	763.56
Excess provision of Tax relating to earlier years written back	-	(13.89)
Total Current Tax Expense	714.27	749.67
b) Deferred Tax
(Increase) in Deferred Tax Assets	(426.77)	(714.71)
Increase in Deferred Tax Liabilities	371.50	1,100.39
Total Deferred Tax Expense	(55.27)	385.68
Income Tax Expense (a b)	659.00	1,135.35
Current Tax Expense recognised in Profit or Loss
Current Tax on Profits for the year	714.27	763.56
Excess provision of Tax relating to earlier years written back	-	(13.89)
Total Current Tax Expense (A)	714.27	749.67
Deferred Tax Expense recognised in Profit or Loss
Deferred Taxes	(55.27)	385.68
I Total Deferred Tax Expense recognised in Profit or Loss (B)	(55.27)	385.68
Deferred Tax Expense recognised in Other Comprehensive Income
Deferred Taxes	(19.54)	17.02
Total Deferred Tax Expense recognised in Other Comprehensive Income (C)	(19.54)	17.02
Total Deferred Tax for the year (B C)	(74.81)	402.70
Total Income Tax Expense recognised in Profit or Loss (A B)	659.00	1,135.35
Total Income Tax Expense (A B C)	639.46	1,152.37

Reconciliation of Tax Expense and the accounting profit multiplied by India''s Tax Rate :

	For the year ended 31st March 2019	For the year ended 31st March 2018
Profit before Tax	3,255.34	3,393.31
Tax at the Indian Tax Rate of 34.944% (2017 - 2018 : 34.608%)	1,137.55	1,174.36
Effect of items not deductible/exempt from tax/items on which different tax rates are applicable	(787.25)	(260.47)
Effect of permanent difference on account of Ind AS adjustments	47.90	17.30
Benefit of Unabsorbed Depreciation	241.26	221.18
Income Tax Expense	639.46	1,152.37

Signature to Notes ''1'' to ''39''	For and on behalf of the Board of Directors
	Kamal Sarda	S K Bajoria	P Bajoria
	Director and Chief Executive Officer	Chairman	Managing Director
	(DIN: 03151258)	(DIN: 00084004)	(DIN : 00084031)
		Rajesh Agarwal	Sikander Yadav
Kolkata		Company Secretary	Chief Financial Officer
11th May 2019		(FCS : 2825)

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Mar 31, 2018

1. GENERAL INFORMATION

IFGL Refractories Limited (formerly known as IFGL Exports Limited) (the “Company”) is a Public Limited Company and was incorporated under the Companies Act, 1956. With effect from 1st April 2016, erstwhile IFGL Refractories Limited has merged with the Company pursuant to a Scheme of Amalgamation approved by the National Company Law Tribunal, Kolkata (as detailed at Note 38). The Company is primarily engaged in the manufacturing, trading and selling of Refractory items used in Steel plants. The Company also provides services in relation to refractory goods. Manufacturing facilities of the Company are located in Kandla Special Economic Zone (SEZ), Gujarat and Kalunga Industrial Estate near Rourkela, Odisha. The Company has operating Subsidiaries in Asia (China), in Europe (Germany and United Kingdom) and in North America (USA). The Company caters to both domestic and international markets. The shares of the Company are listed on the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE).

2. USE OF ESTIMATES AND JUDGEMENTS :

The preparation of Financial Statements in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of Assets and Liabilities and disclosure of Contingent Liabilities at the date of the Financial Statements and the results of operations during the reporting period end. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Judgements in applying Accounting Policies

The judgements, apart from those involving estimations (see note below), that the Company has made in the process of applying its accounting policies and that have a significant effect on the amounts recognised in these Financial Statements pertain to useful life of Intangible Assets acquired in merger. Refer notes to the Financial Statements.

Key sources of estimation uncertainty

The following are the key assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of Assets and Liabilities within the next financial year.

1.1 Useful lives of Property, Plant and Equipment and Intangible Assets

As described in the significant accounting policies, the Company reviews the estimated useful lives of Property, Plant and Equipment and Intangible Assets at the end of each reporting period.

2.2 Fair Value measurements and valuation processes

Some of the Company’s assets and liabilities are measured at fair value for financial reporting purposes. Fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows :

- Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

- Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

- Level 3 inputs are unobservable inputs for the asset or liability. The Company engages third party valuers, where required, to perform the valuation. Information about the valuation techniques and inputs used in determining the fair value of various assets and liabilities are disclosed in the notes to the Financial Statements.

2.3 Actuarial Valuation

The determination of Company’s Liability towards Defined Benefit Obligation to employees is made through independent Actuarial Valuation including determination of amounts to be recognised in the Statement of Profit and Loss and in Other Comprehensive Income. Such valuation depend upon assumptions determined after taking into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market. Information about such valuation is provided in notes to the Financial Statements.

2.4 Claims, Provisions and Contingent Liabilities

The Company has ongoing litigations with various regulatory authorities and third parties. Where an outflow of funds is believed to be probable and a reliable estimate of the outcome of the dispute can be made based on management’s assessment of specific circumstances of each dispute and relevant external advice, management provides for its best estimate of the liability. Such accruals are by nature complex and can take number of years to resolve and can involve estimation uncertainty. Information about such litigations is provided in notes to the Financial Statements.

2.5 Provision against obsolete and slow moving Inventories

The Company reviews the condition of its Inventories and makes provision against obsolete and slow moving Inventory items which are identified as no longer suitable for sale or use. Company estimates the net realisable value for such Inventories based primarily on the latest invoice prices and current market conditions. The Company carries out an Inventory review at each Balance Sheet date and makes provision against obsolete and slow moving items. The Company reassesses the estimation on each Balance Sheet date.

2.6 Impairment of Financial Assets

The Company assesses impairment based on Expected Credit Losses (ECL) model on Trade Receivables.

The Company uses a provision matrix to determine impairment loss allowance on the portfolio of Trade Receivables.

The provision matrix is based on its histroically observed default rates over the expected life of the Trade Receivable and is adjusted for forward looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward looking estimates are analysed.

3.1 Share issued pursuant to the Scheme of Amalgamation

Pursuant to the Scheme of Amalgamation as detailed in Note 38, the Company had issued and allotted 34,610,472 Equity Shares of Rs. 10/- each fully paid and 1,487,160 Equity Shares of the Company of Rs. 10/- each fully paid held by erstwhile IFGL Refractories Limited got cancelled on 18th September 2017.

3.2 Terms/Rights attached to Equity Shares

The Company has only one class of Equity Shares having face value of Rs. 10/- each. Each holder of such shares is entitled to 1 vote per share. In the event of liquidation of the Company, the Equity Shareholders will be entitled to receive the remaining Assets of the Company, after distribution of all preferential amounts, in proportion to their Shareholding. The Company in their General Meeting may declare Dividends, but no Dividend shall exceed the amount recommended by the Board of Directors of the Company.

Pursuant to Order dated 13th March 2018 of the Hon’ble National Company Law Tribunal, Kolkata Bench, which became effective on 15th March 2018 consequent to filing of the Order with Ministry of Corporate Affairs (Registrar of Companies), the shares of the Company held by Bajoria Holdings Private Limited (BHPL) has got transferred to and/or vested in Bajoria Financial Services Private Limited (BFSPL).

Notes :

a) Securities Premium is used to record the premium on issue of shares. The same is utilised in accordance with the provisions of Section 52 of the Companies Act, 2013.

b) Retained Earnings represents the Profits that the Company has earned till date, less any Dividends or other distributions to the Shareholders.

c) During the year ended 31st March 2018, the Company’s Shareholders have declared Dividend of Rs. 2/- per share which resulted in an outflow of Rs. 867.53 including Dividend Distribution Tax of Rs. 146.74 and accordingly has been accounted in the year of declaration by the Shareholders.

The Board of Directors of the Company have proposed a Dividend of Rs. 2/- per share for financial year ended 31st March 2018 which would result in an outflow of Rs. 868.95 including Dividend Distribution Tax of Rs. 148.16. Pending approval of the Shareholders, the same has not been recognised in these Financial Statements.

4.1 Nature of Security and Terms of Repayment of Secured Borrowings :

i) Term Loans from Exim Bank were secured by a first charge over entire moveable and immoveable Property, Plant and Equipment of the SEZ unit located in Kandla, both present and future and second charge on the entire Current Assets including Receivables, both present and future of the said unit.

ii) Both Rupee Loan and Foreign Currency Loan were repayable in quarterly equal installments of Rs. 115.88 and USD 0.62 lacs (including current maturities) at interest rate of 9.70% per annum for rupee loan and Libor 4.50% per annum for Foreign Currency Loan.

iii) Term Loans from DBS Bank Limited are repayable in quarterly equal instalments of Rs. 62.50 each at an interest rate of 9.40% p.a. These are secured by a first charge over entire moveable and immoveable Property, Pant and Equipment, both present and future and second charge on the entire Current Assets including Receivables, both present and future of SEZ unit of the Company located in Kandla.

iv) Vehicle Loan from ICICI Bank Limited are secured by hypothecation of respective Vehicles. They are repayable over 1 year and interest rate of 9.94% - 9.95%.

5.1 The Loans from State Bank of India and DBS Bank Limited (Working Capital Facility 1) are secured by hypothecation of Stocks of Raw Materials, Stock-in-Process, Finished Goods, Consumables, Spares, Stores, Receivables and other Current Assets on pari passu basis and by a second charge over all Property, Plant and Equipment of the Company, situated at Sectors ‘A’ and ‘B’ of Kalunga Industrial Estate, near Rourkela, on pari passu basis.

19.2 The Loans from ICICI Bank Limited and DBS Bank Limited (Working Capital Facility 2) are secured by first pari passu charge on Current Assets and Receivables and second and subservient charge on moveable properties of SEZ unit located at Kandla of the Company.

19.3 The Loan from Yes Bank Limited is secured by first pari passu charge on Current Assets and second pari passu charge over entire movable Fixed Assets of Company.

6.1 Represents Dividends unclaimed and payable to the Shareholders of the Company. There are no amounts due for payment to the Investor Education and Protection Fund as at the year end.

7.1 The Company has recognised in the Statement of Profit and Loss for the year ended 31st March 2018 an amount of Rs. 256.25 (31st March 2017 : Rs. 326.08) as expenses under Defined Contribution Plans.

7.2 Provident Fund (Funded)

Provident Fund contributions in respect of employees up to August 2017 of erstwhile IFGL Refractories Limited are made to a Trustee managed exempted Fund and interest paid to members thereof is not lower than that declared annually by the Central Government. Shortfall, if any, is made good by the Company. Membership to said Fund has been closed on and from 1st September 2017, subject to necessary approvals and/or permissions. Provident Fund in respect of remaining employees are made to statutory Provident Fund established by the Central Government. Based on the final guidance for measurement of Provident Fund liabilities of the Trustee managed fund issued by the Actuarial Society of India, the Company’s liability at the year end of Rs. NIL (31st March 2017 : Rs. NIL) has been actuarially determined by an independent actuary and provided for.

7.3 Gratuity (Funded)

The Company provides Gratuity benefit to its employees. Employees of erstwhile IFGL Refractories Limited are provided Gratuity benefits through a Trustee managed Fund, membership whereof has been closed on and from 1st September 2017 and awaiting merger with that of similar Fund of the Company, subject to necessary approvals and permissions. Gratuity entitlement of the employees is as per provisions of the Payment of Gratuity Act, 1972. However, in case of employees joining before 1st April 2003 of erstwhile IFGL Refractories Limited, they are entitled to Gratuity as per scheme framed by that Company or as per the Payment of Gratuity Act, 1972, whichever is higher. Liabilities with regard to the Gratuity Plan are determined by Actuarial Valuation as set out in Note 2.14 (v) above, based on which the Company makes contribution to the fund using Projected Unit Credit Method. Most recently, Actuarial Valuation of the Funds was carried out as at 31st March 2018.

7.4 Superannuation (Funded)

Certain employees joined before 31st March 2004 of erstwhile IFGL Refractories Limited are members of a Trustee managed Superannuation Fund. Said Fund provides for Superannuation benefit on retirement/death/incapacitation/termination and was amended from the Defined Benefit to Defined Contribution Plan effective 1st April 2004. Defined benefits were frozen on 31st March 2004. Necessary formalities and approvals have been complied with and obtained. Also refer Notes 2.14 (iii) and (v) for accounting policy relating to Superannuation.

7.5 Compensated Absence (Unfunded)

The Company provides for encashment of Accumulated Leave Benefit for eligible employees (i.e. workmen) at the time of retirement, death, incapacitation or termination of employment, subject to a maximum of one hundred and twenty days based on the last drawn Salary. Liabilities are determined by Actuarial Valuation as set out in Note 2.14 (vi) above using Projected Unit Credit Method.

g) Other Disclosures :

The basis used to determine overall Expected Return on Assets and the major categories of Plan Assets are as follows :

The major portion of the Assets is invested in Units of Insurers and Government Bonds. Based on the asset allocation and prevailing yield rates on these asset classes, the Long-Term estimate of the Expected Rate of Return on the Fund have been arrived at. Assumed Rate of Return on Assets is expected to vary from year to year reflecting the returns on matching Government Bonds.

The estimate of future Salary increases takes into account Inflation, Seniority, Promotion and other relevant factors.

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 (Present Value of the Defined Benefit Obligation calculated with the Projected Unit Credit Method at the end of the reporting period) has been applied while calculating the Defined Benefit Liability recognised in the Balance Sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period. Risk Exposure :

Through its Defined Benefit Plans, the Company is exposed to a number of risks, the most significant of which are detailed below :

a. Investment Risk : The Defined Benefit Plans are funded Government Securities and units of Insurers. The Company does not have any liberty to manage the funds provided to Insurance Companies.

b. Interest Risk : A decrease in the interest rate on Plan Assets will increase the Plan Liability.

c. 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.

d. 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 will increase the Plan Liability.

Defined Benefit Liability and Employer Contributions

Expected contributions to post employment benefit plans for the year ending 31st March 2019 : Nil

The Weighted Average duration of the Defined Benefit Obligation (Gratuity) is 10 years (31st March 2017 - 6 years, 1st April 2016 - 13 years). The expected maturity analysis of undiscounted Gratuity is as follows :

8.1 As per Secti on 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend atleast 2% of its Average Net Profit for the immediately preceeding 3 financial years on Corporate Social Responsibility (CSR) activities. The areas for CSR activities are promotion of education, promotion of health care including preventive health care, promotion of sanitation, promotion of sports and other charitable contributions. A CSR committee has been formed by the Company as per the Act. The funds were paid to IFGL Refractories Welfare Trust, which is a Trust registered u/s 12A of the Income Tax Act, 1961.

a) Gross amount required to be spent by the Company during the year is Rs. 12.20 (31.03.2017 : Rs. 7).

b) Amount spent during the year on

9. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES :

9.1 Capital Management

The Company aims at maintaining a strong capital base maximizing Shareholders’ wealth safeguarding business continuity and augments its internal generations with a judicious use of borrowing facilities to fund spikes in working capital that arise from “me to “me as well as requirements to finance business growth.

9.2 Categories of Financial Instruments

Set out below, is a comparison by class of the carrying amounts and fair value of the Company’s Financial Instruments :

The Management assessed that Cash and Cash Equivalents, Trade Receivables, Trade Payables, other Financial Assets and other Financial Liabilities approximate their carrying amounts largely due to the Short-Term maturities of these instruments.

The fair value of Loans from Banks, Trade Payables and other Financial Liabilities, as well as other Non-current Financial Liabilities is estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities. In addition to being sensitive to a reasonably possible change in the forecast cash flows or the discount rate, the fair value of the equity instruments is also sensitive to a reasonably possible change in the growth rates. Management regularly assesses a range of reasonably possible alternatives for those significant unobservable inputs and determines their impact on the total fair value.

The fair values of the Company’s interest bearing borrowings and loans are determined by using DCF method using discount rate that reflects the issuer’s borrowing rate as at the end of the reporting period. The own non-performance risk as at 31st March 2018 was assessed to be insignificant. The discount for lack of marketability represents the amounts that the Company has determined that market participants would take into account when pricing the investments

9.3 Financial Risk Management Objectives

The Company’s activities expose it to a variety of Financial Risks including Market Risk, Credit Risk and Liquidity Risk. The Company continues to focus on a system based approach to Business Risk management. The Company’s Financial Risk management process seeks to enable the early identification, evaluation and effective management of key risks facing the business. Backed by strong Internal Control Systems, the Current Risk management system rests on policies and procedures issued by appropriate authorities; process of regular reviews/audits to set appropriate risk limits and controls, monitoring of such risks and compliance confirmation for the same.

a) Market Risk

The Company’s Financial Instruments are exposed to market changes. The Company is exposed to the following significant Market Risk :

Foreign Currency Risk Interest Rate Risk Other Price Risk

Market Risk exposures are measured using sensitivity analysis. There has been no change to the Company’s exposure to Market Risks or the manner in which these risks are being managed and measured.

Fair Value Hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Level 1 to Level 3, as described below :

Quoted Prices in an active market (Level 1) : This level of hierarchy includes Financial Assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists of Investment in quoted Equity Shares and Mutual Fund Investments.

Valuation Techniques with observable inputs (Level 2) : This level of hierarchy includes Financial Assets and Liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). This level of hierarchy does not include any instrument.

Valuation Techniques with significant unobservable inputs (Level 3) : This level of hierarchy includes Financial Assets and Liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

i. Foreign Currency Risk

The Company undertakes transactions denominated in foreign currency which results in exchange rate fluctuations. Such exchange rate risk primarily arises from transactions made in foreign exchange and reinstatement risks arising from recognised assets and liabilities, which are not in the Company’s functional currency (Indian Rupees). A significant portion of these transactions are in US Dollar, Euro etc. The carrying amount of foreign currency denominated financial assets and liabilities including derivative contracts are as follows :

Derivatives not designated as hedging instruments

The Company uses foreign exchange forward contracts to manage some of its transaction exposures. The foreign exchange forward contracts are not designated as cash flow hedges and are entered into for periods consistent with foreign currency exposure of the underlying transactions.

The Company enters into foreign exchange forward contracts with the intention to reduce the foreign exchange risk of expected sales and purchases, these contracts are not designated in hedge relationships and are measured at fair value through profit or loss.

ii. Interest Rate Risk

Interest Rate Risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The objectives of the Company’s Interest Rate Risk management processes are to lessen the impact of adverse interest rate movements on its earnings and cash flows and to minimise counter party risks.

The Company is exposed to interest rate volatilities primarily with respect to its term borrowings from Banks as well as Financial Institutions, export packing credit facilities, cash credit facilities. Such volatilities primarily arise due to changes in money supply within the economy and/or liquidity in banking system due to asset/liability mismatch, poor quality assets etc. of banks. The Company manages such risk by operating with banks having superior credit rating in the market as well as Financial Institutions.

Note : If the rate is decreased by 50 bps profit will increase by an equal amount.

Interest rate sensitivity has been calculated assuming the borrowings outstanding at the reporting date have been outstanding for the entire reporting period. Further, the calculations for the unhedged floating rate borrowing have been done on the notional value of the foreign currency (excluding the revaluation).

iii. Price Risk

The Company invests its surplus funds primarily in debt mutual funds measured at Fair Value through Profit or Loss. Aggregate value of such Investments as at 31st March 2018 is Rs. 1,270.38 (31st March 2017 : Rs. 1,189.78; 31st March 2016 : Rs. NIL). Investments in the Mutual Fund schemes are measured at fair value. Accordingly, these do not pose any significant Price Risk.

b) Liquidity Risk

Liquidity Risk is the risk that the Company may encounter difficulty in meeting its obligations. The Company mitigates its liquidity risks by ensuring timely collections of its trade receivables, close monitoring of its credit cycle and ensuring optimal movements of its inventories. The table below provides details regarding the remaining contractual maturities of significant financial liabilities at the reporting date.

The Company manages this risk by utilising unused credit lines and portfolio diversion. The Company has investment policy for deployment of surplus liquidity, which allows investment in debt securities and mutual fund schemes.

Credit Risk

Credit Risk is the risk that counter party will not meet its obligations leading to a financial loss. The Company has its policies to limit its exposure to Credit Risk arising from outstanding receivables. Management regularly assess the credit quality of its customer’s basis which, the terms of payment are decided. Credit limits are set for each customer which are reviewed on periodic intervals.

The movement of the expected loss provision made by the Company are as under :

Pursuant to Order dated 13th March 2018 of the Hon’ble National Company Law Tribunal, Kolkata Bench which became effective on 15th March 2018 consequent to filing of the Order with Ministry Corporate Affairs (Registrar of Companies), the Shares of the Company held by Bajoria Holdings Private Limited (BHPL) has got transferred to and/or vested in Bajoria Financial Services Private Limited (BFSPL).

10. FIRST TIME ADOPTION

Ind AS 101 (First time Adoption of Indian Accounting Standards) provides a suitable starting point for accounting in accordance with Ind AS and is required to be mandatorily followed by first time adopters. The Company has prepared the opening Balance Sheet as per Ind AS as of 1st April 2016 (the transition date) by :

a. recognising all assets and liabilities whose recognition is required by Ind AS,

b. not recognising items of assets or liabilities which are not permitted by Ind AS,

c. reclassifying items from previous Generally Accepted Accounting Principles (GAAP) to Ind AS as required under Ind AS and

d. applying Ind AS in measurement of recognised assets and liabilities.

Ind AS 101 allows first time adopters exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions in its Financial Statements :

a. Property, Plant and Equipment including Capital Work-in-Progress and Intangible Assets were carried in the Statement of Financial Position prepared under Previous GAAP as at 31st March 2016. The Company has elected to regard such carrying amount as deemed cost at the date of transition i.e. 1st April 2016.

b. Ind AS 103 Business Combinations has not been applied in respect of mergers which are considered businesses for Ind AS that occurred before 1st April 2016. Use of this exemption means that the previous GAAP carrying amounts of assets and liabilities, which are required to be recognised under Ind AS, is their deemed cost at the date of the acquisition. After the date of the acquisition, measurement is in accordance with Ind AS. Assets and Liabilities that do not qualify for recognition under Ind AS are excluded from the opening Ind AS Statement of Financial Position. The Company did not recognise or exclude any previously recognised amounts as a result of Ind AS recognition requirements.

Estimates

An entity’s estimate in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with the previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at 1st April 2016 are consistent with the estimates as at the same date made in confirmity with previous GAAP.

Classification and measurement of Financial Assets

Ind AS 101 requires an entity to assess classification and measurement of Financial Assets on the basis of the facts and circumstances that exists at the date of transition to Ind AS. Further the standard permits measurement of Financial Assets accounted at amortised cost based on facts and circumstances existing on the date of transition if retrospective application is impracticable.

Accordingly, the Company has determined the classification of Financial Assets on the basis of the facts and circumstances that exists at the date of transition to Ind AS. Measurement of the Financial Assets accounted at amortised cost has been done retrospectively except where the same is impracticable. Ind AS requires an entity to reconcile Equity, Total Comprehensive Income and Cash Flows for prior periods. The following tables represent such reconciliations from previous GAAP to Ind AS.

Under previous GAAP, investment in Subsidiaries were stated at cost and provisions were made to recognise the decline other than temporary. Under Ind AS, the Company has elected to regard such carrying amount as at 31st March 2016 as deemed cost at the date of transi”on.

iii) Under previous GAAP, Current Investments were stated at lower of cost and fair value. Under Ind AS, these Financial Assets have been classified as FVTPL on the date of transition and fair value changes after the date of transition has been recognised in Profit or Loss.

iv) Under previous GAAP, the net mark to market losses on Derivative Financial Instruments, as at the Balance Sheet date, were recognised in Profit or Loss and the net gains, if any, were ignored. Under Ind AS, such Derivative Financial Instruments are to be recognised at fair value and the movement is recognised in Profit or Loss.

v) Under Ind AS, remeasurement gains and losses (i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit obligations) are recognised in the Other Comprehensive Income instead of Profit or Loss.

vi) The transition from Indian GAAP to Ind AS has not had a material impact on the Statement of Cash Flows.

11. INFORMATION GIVEN IN ACCORDANCE WITH THE REQUIREMENTS OF IND AS 108 ON SEGMENT REPORTING :

In terms of Ind AS 108 ‘Segment Reporting’ prescribed under Section 133 of the Companies Act 2013, segment information is presented in the Consolidated Financial Statements of the Company. Given below is the information relating to Geographical Market of the Company :

12. AMALGAMATION WITH ERSTWHILE IFGL REFRACTORIES LIMITED (THE ERSTWHILE HOLDING COMPANY)

Hon’ble National Company Law Tribunal, Kolkata Bench (Tribunal) by passing an Order on 3rd August 2017 under Sections 230 and 232 of the Companies Act, 2013 has sanctioned a Scheme of Amalgamation (Scheme) for merger of erstwhile IFGL Refractories Limited (IFGL) with the Company on and from 1st April 2016, being the Appointed Date. Scheme has become effective from 5th August 2017 following filing of Order of Hon’ble Tribunal with the Ministry of Corporate Affairs (Registrar of Companies) by the Company and IFGL on that date. The Scheme has accordingly been given effect to in these Financial Statements.

In accordance with the provisions of aforesaid Scheme :

a. The Share swap ratio was 1:1 i.e. for 1 Equity Share held in erstwhile IFGL Refractories Limited on the record date, the Company has issued and alloted 1 Equity Share of the face value of Rs. 10/- each fully paid up.

b. The Amalgamation has been accounted under the ‘Purchase Method’ as prescribed by Accounting Standard 14 - Accounting for Amalgamations under the previous GAAP. The accounting treatment has been given as under :

i) The assets and liabilities of the erstwhile IFGL Refractories Limited as at 1st April 2016 have been incorporated at the fair values in the Financial Statements of the Company.

ii) All inter corporate balances and obligations (including investments held by the erstwhile IFGL Refractories Limited in the Company, advances, outstanding balances or other obligations) between the Company and the erstwhile IFGL Refractories Limited stands cancelled.

c. The excess of the value of Equity Shares issued by the Company over the book value of assets and liabilities taken over by the Company and cancellation of Equity Shares held by the erstwhile IFGL Refractories Limited in the Company, amounting to Rs. 26,699.46 has been recorded as goodwill arising on amalgamation.

d. Pursuant to approved share swap ratio, the Company has issued and alloted on 18th September 2017, 34,610,472 Equity Shares of Rs. 10/- each (with a premium of Rs. 120 per share) to the Shareholders of erstwhile IFGL Refractories Limited. Equity Shares of the Company has been listed on both BSE Limited and National Stock Exchange of India Limited.

e. In accordance with the Scheme, the goodwill recorded on amalgamation has been amortised and the Company has estimated its useful life of 10 years. Accordingly, amortisation for the year amounting to Rs. 2,669.95 has been recognised in the Statement of Profit and Loss.

f. Trading in Equity Shares of the Company both on BSE Limited and National Stock Exchange of India Limited has commenced with effect from 14th November 2017.

g. Name of the Company changed to IFGL Refractories Limited with effect from 25th October 2017.

h. Registered Office of the Company shifted to the state of Odisha on and from 24th November 2017.

13. OPERATING LEASE COMMITMENTS

The Company entered into non-cancelable operating lease agreements in connection with certain office spaces.

Tenure of lease is for a period of 5 years. Terms of the lease include operating terms of renewal, re-imbursement of maintenance charges, increase in future maintenance charges, etc. The future minimum lease commitments of the Company are as follows :

Lease rentals recognised in Note 30 under the heading “Rent” of the Statement of Profit and Loss amounting to Rs. 36.73 (31st March 2017 : Rs. 31.41)

14. INCOME TAX EXPENSE

This note provides an analysis of the Company’s Income Tax Expense, shows amounts that are recognised directly in Equity and how the Tax Expenses is affected by non-assessable and non-deductible items. It also explains significant estimates made in relation to tax positions.

15. PREVIOUS YEAR FIGURES

Previous Year’s figures have been re-grouped/re-classified wherever necessary to conform with the current year’s classification.

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Mar 31, 2017

1. GENERAL INFORMATION

IFGL Exports Limited (the “Company”) is a Public Limited Company and was incorporated under the Companies Act, 1956. With effect from 1st April 2016, IFGL Refractories Limited has merged with the Company pursuant to a Scheme of Amalgamation approved by the National Company Law Tribunal, Kolkata (as detailed at Note 42). The Company is primarily engaged in the manufacturing, trading and selling of Refractory items used in Steel plants. Manufacturing facilities of the Company are located in Kandla Special Economic Zone (SEZ), Gujarat and Kalunga Industrial Estate near Rourkela, Odisha. The Company has operating Subsidiaries in Asia (China), in Europe (Germany and United Kingdom) and in North America (USA). The Company caters to both domestic and international markets.

2.1 Terms/Rights attached to Equity Shares

The Company has only one class of Equity Shares having a face value of Rs.10/- each. Each holder of Equity Shares is entitled to one vote per share. In the event of liquidation of the Company, the Equity Shareholders will be entitled to receive remaining Assets of the Company, after distribution of all preferential amounts, in proportion to their Shareholding. The Company in the General Meeting may declare Dividends, but no Dividend shall exceed the amount recommended by the Board.

2.2 Pursuant to the approval of the Shareholders in the Extra Ordinary General Meeting held on 2nd August 2016 :

i) The Authorised Share Capital of the Company has increased from Rs.25,000,000 to Rs.30,000,000 divided into 3,000,000 Equity Shares of Rs.10/- each. It will increase further to Rs.430,000,000 on account of amalgamation of IFGL Refractories Limited with the Company as detailed in Note 42.

ii) The Company, on 6th August 2016, issued and allotted 756,000 Ordinary Shares of Rs.10/- each, as fully paid up Bonus Shares in the proportion of 3.5 Bonus Shares of Rs.10/- each for every existing 10 (ten) Equity Shares of Rs.10/- each.

2.3 Share Capital Suspense

Pursuant to the Scheme of Amalgamation as detailed in Note 42, the Company shall be issuing and alloffing 33,123,312 Equity Shares of Rs.10/- each fully paid ignoring Equity Shares of the Company held by IFGL Refractories Limited. Pending allotment, corresponding amount has been kept under Share Capital Suspense and shall be transferred to Equity Share Capital of the Company on allotment of Shares. The record date fixed for the purpose is 15th September 2017.

3.1 Nature of Security and Terms of Repayment of Secured Borrowings :

i) Term Loans from Exim Bank is secured by a first charge over entire moveable and immoveable Fixed Assets of the SEZ unit located in Kandla, both present and future and second charge on the entire Current Assets including Receivables, both present and future of the said unit.

ii) Both Rupee Loan and Foreign Currency Loan are repayable in quarterly equal installments of Rs.115.88 lacs and USD 0.62 lacs (including current maturities) at interest rate of 9.70% per annum for rupee loan and Libor 4.50% per annum for Foreign Currency Loan.

iii) Term Loans from DBS Bank Limited is secured by a first charge over entire moveable and immoveable Fixed Assets, both present and future and second charge on the entire Current Assets including Receivables, both present and future of SEZ unit located in Kandla of the Company.

iv) Vehicle Loan from ICICI Bank Limited are secured by hypothecation of respective Vehicles. They are repayable over 1-2 years and interest rate of 9.94% - 9.95%.

4.1 Deferred Tax Assets on Unabsorbed Depreciation has been recognised based on virtual certainity that sufficient profits shall be available in future against which such assets shall be adjusted in future.

5.1 The Loans from State Bank of India and DBS Bank Limited (Loan 1) is secured by hypothecation of Stocks of Raw Materials, Stock in Process, Finished Goods, Consumables, Spares, Stores, Receivables and other Current Assets on pari passu basis and by a second charge over all Fixed Assets of the Company, situated at Sectors ‘A’ and ‘B’ of Kalunga Industrial Estate, near Rourkela, on pari passu basis.

5.2 The Loans from ICICI Bank Limited and DBS Bank Limited (Loan 2) are secured by First Pari passu charge on Current Assets and Receivables and second and subservient charge on moveable properties of SEZ unit located at Kandla of the Company.

6.1 Dues to the Micro Enterprises and Small Enterprises

Information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. The disclosures relating to Micro and Small Enterprises as at 31st March 2017 are as under :

7.1 Represents Dividends unclaimed and payable to the Shareholders of IFGL Refractories Limited. There are no amounts due for payment to the Investor Education and Protection Fund as at the year end.

8.1 Acquired under a lease of 99 years with a renewal option.

8.2 Title Deeds is in the name of IFGL Refractories Limited which has merged with the Company (Refer Note 42)

9.1 Technical Know-how represents Technical Drawings, Designs etc. relating to manufacture of the Company’s products and acquired pursuant to various agreements conferring the right to usage only.

10.1 The Company has recognised in the Statement of Profit and Loss for the year ended 31st March 2017 an amount of Rs.326.08 (31.03.2016 : Rs.16.57) as expenses under Defined Contribution Plans.

10.2 Provident Fund (Funded)

Provident Fund contributions in respect of Employees of erstwhile IFGL Refractories Limited are made to an exempted Trust and it has the liability to Fund any shortfall on the yield of the Trust’s investments over the administered interest rates on an annual basis. These administered interest rates are determined annually predominantly considering the social rather than economic factors. The contribution by the employer and employee together with the interest accumulated thereon are payable to the Employees at the time of their separation from the Company or retirement, whichever is earlier. The benefits vests immediately on rendering of the services by the Employee. Based on the final guidance for measurement of Provident Fund liabilities issued by the Actuarial Society of India, the Company’s liability at the year end of ‘ NIL (31.03.2016 : ‘ NIL) has been actuarially determined by an independent actuary and provided for.

10.3 Gratuity (Funded)

The Company provides for Gratuity, a Defined Benefit Retirement Plan covering eligible Employees. The Gratuity Trust Fund makes payments to vested Employees on Retirement, Death, Incapacitation or Termination of Employment. For Employees joining after 1st April 2003, the amount is based on the respective Employee’s eligible Salary (Half Month’s Salary) depending on the tenure of the service subject to a maximum amount as per The Payment of Gratuity Act, 1972. For employees joining before 1st April 2003 in erstwhile IFGL Refractories Limited, the amount is calculated similarly as per the Payment of Gratuity Act, 1972 or the Company’s Scheme, whichever is higher. Vesting occurs on completion of five years of service. Liabilities with regard to the Gratuity plan are determined by Actuarial Valuation as set out in Note 2.11 (vi) above, based on which the Company makes contribution to the Fund using Projected Unit Credit Method. The most recent Actuarial Valuation of the Fund was carried out as at 31st March 2017.

10.4 Superannuation (Funded)

In keeping with the Superannuation Scheme (applicable to Employees joined before 31st March 2004 of the erstwhile IFGL Refractories Limited), Employees are entitled to Superannuation Benefit on Retirement/Death/Incapacitation/Termination. Superannuation Scheme was amended from Defined Benefit Plan to Defined Contribution Plan effective 1st April 2004 and the benefits under the Defined Benefit Plan were frozen as on 31st March 2004. Necessary formalities/approvals have been complied with/obtained. Also refer Notes 2.11 (iv) and (vi) for accounting policy relating to Superannuation.

10.5 Compensated Absence (Unfunded)

The Company provides for accumulated Leave Benefit for eligible Employees (i.e. Workmen) at the time of Retirement, Death, Incapacitation or Termination of Employment, subject to a maximum of one hundred and twenty days based on the last drawn Salary. Liabilities are determined by Actuarial Valuation as set out in Note 2.11 (vii) above using Projected Unit Credit Method.

11.1 As per Section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend atleast 2% of its Average Net Profit for the immediately preceding 3 financial years on Corporate Social Responsibility (CSR) activities. The areas for CSR activities are promotion of education, promotion of health care including preventive health care, promotion of sanitation, promotion of sports and other charitable contributions. A CSR committee has been formed by the Company as per the Act. The funds were primarily allocated to a Trust and utilised throughout the year on these activities which are specified in Schedule VII of the Companies Act, 2013.

a) Gross amount required to be spent by the Company during the year is Rs.7.00

12. OPERATING LEASE COMMITMENTS

The Company entered into Non-Cancelable Operating Lease Agreements in connection with certain Office Spaces. Tenure of Lease is for a period of 5 years. Terms of the Lease include Operating terms of Renewal, Re-imbursement of Maintenance Charges, Increase in Future Maintenance Charges, etc. The Future Minimum Lease Commitments of the Company are as follows :

13. DISCLOSURE ON SPECIFIED BANK NOTES (SBNs)

During the year, the Company had specified bank notes or other denomination note as defined in the MCA notification G.S.R 308 (E) dated 31st March 2017 on the details of Specified Bank Notes (SBN) held and transacted during the period from 8th November 2016 to 30th December 2016, the denomination wise SBN’s and others notes as per the Notifications is given below :

* For the purpose of this clause, the term ‘Specified Bank Notes’ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E) dated the 8th November 2016.

14. AMALGAMATION WITH IFGL REFRACTORIES LIMITED (THE ERSTWHILE HOLDING COMPANY)

Hon’ble National Company Law Tribunal, Kolkata Bench (Tribunal) by passing an Order on 3rd August 2017 under Sections 230 and 232 of the Companies Act, 2013 has sanctioned a Scheme for Amalgamation (Scheme) for merger of IFGL Refractories Limited (IFGL) with the Company on and from 1st April 2016 being the appoined date. Scheme has become effective from 5th August 2017 following filing of Order of Hon’ble Tribunal with the Ministry of Corporate Affairs (Registrar of Companies) by the Company and IFGL on that date. The Scheme has accordingly been given effect to in these Financial Statements.

In accordance with the provisions of aforesaid Scheme :

a. The Share swap ratio is 1:1 i.e. for 1 Equity Share held in IFGL Refractories Limited on the record date, the Company will issue and allot 1 Equity Share of the face value of Rs.10/- each fully paid up.

b. The Amalgamation has been accounted under the ‘Purchase Method’ as prescribed by Accounting Standard 14 - Accounting for Amalgamations. The accounting treatment has been given as under :

i) The assets and liabilities of the erstwhile IFGL Refractories Limited as at 1st April 2016 have been incorporated at the fair values in the Financial Statements of the Company.

ii) All inter corporate balances and obligations (including investments held by the erstwhile IFGL Refractories Limited in the Company, advances, outstanding balances or other obligations) between the Company and the erstwhile IFGL Refractories Limited stands cancelled.

c. The excess of the value of Equity Shares issued by the Company over the book value of assets and liabilities taken over by the Company and cancellation of Equity Shares held by the erstwhile IFGL Refractories Limited in the Company, amounting to Rs.26,699.46 lacs has been recorded as goodwill arising on amalgamation.

d. As the Equity Shares have not been allotted till 31st March 2017, the same has been disclosed under the Share Capital Suspense till the date of allotment of such shares to the Shareholders of the erstwhile IFGL Refractories Limited.

e. Pursuant to approved Share swap ratio, the Company shall be issuing 34,610,472 Equity Shares of Rs.10/- each (with a premium of Rs.120 per share) to the Shareholders of IFGL Refractories Limited on the record date being 15th September 2017. Equity Shares of the Company will be listed both on BSE Limited and National Stock Exchange of India Limited. Pending allotment, an amount of Rs.331,233,120 (ignoring Equity Shares of the Company already held by IFGL Refractories Limited) has been included in the Share Capital Suspense Account as at 31st March 2017.

f. In accordance with the Scheme, the goodwill recorded on amalgamation has been amortised and the Company has estimated its useful life of 10 years. Accordingly, amortisation for the year amounting to Rs.2,669.95 lacs has been recognised in the Statement of Profit and Loss.

15. PREVIOUS YEAR FIGURES

Previous Year’s figures have been re-grouped/re-classified wherever necessary to conform with the current year’s classification. As indicated in Note 42, during the current year ended 31st March 2017, IFGL Refractories Limited has merged with the Company pursuant to the Scheme of Amalgamation approved by the NCLT, Kolkata with an appointed date of 1st April 2016. Therefore, the current year figures are strictly not comparable with that of the previous year.

16. PROPOSED DIVIDEND ON EQUITY SHARES

The Directors of the Company have recommended the payment of Final Dividend of Rs.2/- per fully paid Equity Shares. This Proposed Dividend is subject to the approval of the Shareholders in the ensuing Annual General Meeting. The Equity Shares under Share Suspense Account shall also be entitled to such Dividend.