Notes to Accounts of Indian Metals & Ferro Alloys Ltd.

Mar 31, 2025

Brief description of the valuation technique and inputs used to value investment property:

The Company''s investment property consists of a commercial property situated in Kolkata. The fair values as aforesaid are based on a valuation performed by a registered valuer as defined under Rule 2 of The Companies (Registered valuer and valuation) Rules, 2017.The fair value has been derived using the market comparable approach based on recent market prices without any significant adjustments being made to the market observable data.

There is a restriction on the realisability of the investment property regarding the transfer of title as it is taken on lease. There are no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

6.1 Indmet Mining Pte Ltd ("Indmet”), a wholly owned subsidiary incorporated in Singapore, held an investment in its Indonesian subsidiary, PT Sumber Rahayu Indah ("PT Sumber''''), which possessed a coal mining concession critical to IMFA''s operations. However, due to unresolved overlapping boundary issues, the concession could not be developed, leading to liquidation of PT Sumber in the previous year.

Subsequently, an application was submitted to the Accounting and Corporate Regulatory Authority (ACRA) of Singapore to strike off Indmet. Further, on 20 February 2025, vide ACRA''s letter, Indmet has now been officially removed from the Register of ACRA and the Company stands dissolved on the same date and the said dissolution has been duly accounted for in the books of accounts.

6.2 Investment in equity shares of Ferro Chrome Producers Association amounts to ? 25,000 (31 March 2024: ? 25,000) and therefore has been rounded off to nil.

6.3 Investment in Ortel Communications Limited has been fully written off during the year, which was fully impaired in earlier years.

(iii) Aggregate number of bonus share issued, shares issued for consideration other than cash and shares bought back for the period of five years immediately preceding the date as at which the Balance Sheet is prepared.

During the financial year 2021-22, 2,69,77,053 fully paid up bonus equity shares of ? 10 each was issued in the ratio of 1:1 (i.e. 1 bonus equity share for every 1 existing equity share of the Company) to the shareholders who held equity shares on the record date i.e. 10 January 2022. Post the issuance of bonus equity shares, the total paid up equity share capital of the Company is increased from ? 26.98 crore to ? 53.96 crore. Security premium of ? 26.78 crore and capital redemption reserve of ?0.20 crore have been utilised towards issuance of bonus shares.

(iv) Rights, preferences and restrictions in respect of each class of shares

The Company''s authorised share capital consists of two classes of shares, referred to as equity shares and preference shares, having par value of ? 10/- and ? 100/- each respectively.

Each holder of equity share is entitled to one vote per share. The preferential shareholders have preferential right over equity shareholders in respect of repayment of capital and payment of dividend.

In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Nature and purpose of reserves Securities premium

Securities premium is credited to record the premium on issue of shares. The reserve can be utilised in accordance with the provisions of the Companies Act, 2013.

General reserve

General reserve represents appropriation of profits by the Company.

Capital reserve

Capital reserve has been created pursuant to the scheme of amalgamation of its wholly owned subsidiary and represents the difference between the net assets acquired and the investment in the said subsidiary which was cancelled pursuant to the afore mentioned scheme (also refer note 46).

Retained earnings

Retained earning are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

Debt instruments through Other Comprehensive Income

This reserve represents the cumulative gains and losses arising from the revaluation of debt instruments classified as fair value through other comprehensive income (FVTOCI). It is presented net of amounts reclassified to profit or loss upon disposal of such instruments and impairment losses recognized on them.

(b) Other contingent liabilities :

(i) During the previous years, the Company received demand notices vide Section 21(5) of The Mines and Minerals (Development and Regulation) Act, 1957 amounting to ? 122.90 crore for alleged excess extraction of minerals over the quantity permitted under environment clearance in respect of four mines viz., Sukinda Chromite Mines, Chingudipal Chromite Mines, Bangur Chromite Mines and Nuasahi Chromite Mines pertaining to financial years 2000 to 2011 which had been raised by the respective Deputy Director of Mines and Mining Officers of the Government of Odisha. Aggrieved by the said notices, the Company had filed Revision Applications before the Mines Tribunal, New Delhi challenging the said demand notices, however the same was dismissed in the previous years. Subsequently, the Company has filed writ petitions before Hon''ble High Court of Orissa challenging the Final Order dated 14.09.2021 passed by the Revisionary Authority, Ministry of Mines, Government of India and the aforementioned demand notices. The Hon''ble Court vide its Order dated 24.05.2022 has stayed the impugned demand notices subject to deposit of ? 30 crore before the appropriate State Authorities and such Orders have been complied with by the Company.

(ii) The Company had revised its mining plan in respect of Mahagiri mine ( in financial year 2019-20) and Sukinda Chromite mine ( in 2016-17) by enhancing the annual production capacity to 6.00 lakh MT in the year 2019-20 and 3.71 Lakh MT respectively. Subsequent to the same, the District Sub-Register, Jajpur had raised demand notices amounting to ? 45.20 crore towards differential stamp duty and registration fee in respect of the aforementioned Mining Lease Deeds pursuant to Notification no. 312-SM-REM-3/2011-SM dated 13.01.2012 of the Commissioner -cum-secretary to the Government of Odisha, Department of Steel and Mines, as published in the Odisha Gazette on 18.01.2012. The Company has filed writ petitions before the Hon''ble High Court of Orissa challenging the legality and validity of such demand notices. The Hon''ble High Court vide its interim order dated 17.03.2021 has given direction to the authorities that no coercive action shall be taken against the Company for such demand notices till the next date of hearing and the matters are pending as on date.

i) Market risk

Market risk is the risk that the fair value of future cash flows of a financial asset will fluctuate because of changes in market prices. Market risk comprises three types of risks : interest rate risk, currency risk and price risk. Financial instruments affected by market risk include borrowings, investments, trade payables, trade receivables and derivative financial instruments.

(a) Foreign currency risk

Foreign currency risk is the risk that fair value of future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities. The Company has obtained foreign currency loans and has foreign currency trade payables and receivables and is therefore, exposed to a foreign exchange risk. For mitigating exposure to foreign exchange risk, the Company adopts a policy of selective hedging based on the risk perception of the management. The Company has entered into foreign currency derivative contracts.

Notes:

1 It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings.

2 The amounts disclosed above represent the best possible estimates arrived at on the basis of available information and does not include penalty, if any.

3 The Company is contesting all of the above demands and the management believes that the ultimate outcome of these proceedings are not expected to have a material impact on the Company''s standalone financial statements and hence no provision has been made in this regard.

40. Financial risk management

40.1 Financial risk factors

The Company''s principal financial liabilities comprise of borrowings, lease liabilities, trade and other payables. The main purpose of these financial liabilities is to manage finances for the Company''s operations. The Company''s principal financial assets include advances, investment in equity instruments, investment in debt instrument and mutual funds, trade receivables and cash and bank balances that arise directly from its operations. The Company also enters into derivative transactions to hedge foreign currency and interest rate risks and not for speculative purposes. The Company is exposed to market risk, credit risk and liquidity risk and the Board of Directors (''Board'') oversee the management of these financial risks through its Risk Management Committee. The Risk Management Policy of the Company formulated by the Risk Management Committee and approved by the Board, states the Company''s approach to address uncertainties in its endeavour to achieve its stated and implicit objectives.

(b) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s short-term debt obligations with floating interest rates. Any changes in the interest rates environment may impact future cost of borrowings. As the Company does not have exposure to any floating-interest bearing assets, or any significant long-term fixed-interest bearing assets, its interest income and related cash inflows are not affected by changes in market interest rates. Similarly, the Company also invests in debt mutual fund schemes of leading fund houses. Such investments are susceptible to market price risk that arise mainly from changes in interest rate which may impact the return and value of such investments. However, given the relatively short tenure of underlying portfolio of the debt mutual fund schemes in which the Company has invested, such price risk is not significant Moreover, the short-term borrowings of the Company do not have a significant fair value or cash flow interest rate risk due to their short tenure.

The Company is also exposed to investment risk arising from investments in alternate investment fund recognised at FVTPL. As at 31 March 2025, the carrying value of such instruments recognised at FVTPL amounts to ? 31.67 crores (previous year ? 20.66 crores). The details of such investments in alternate investment fund are given in Note 11(B)(ii).

2) Commodity rate risk

Material cost is the largest cost component for the Company, thus exposing it to the risk of price fluctuations based on the supply and demand conditions of those materials except captive chrome ore. Commodity price risk exposure is evaluated and managed through operating procedures and sourcing policies. The Company has put in place a mix of long-term and short-term mitigation plans. The long-term price view consisted of identifying single vendor dependency and finding alternate materials or vendors for the same. The Company also has a robust process of estimating the prices at a quarterly frequency, analysing deviations, if any, and taking short-term corrective measures in addition to altering the outlook for the long-term, if required. The Company also leverages its financial resources to modify the inventory levels as required keeping in mind the price outlook in the near term. Similarly, the Company modifies the contract period in negotiations with the vendors to either lock in prices or to keep them open based on the expected price movements.

ii) Credit risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, investment in mutual funds, derivative financial instruments, other balances with banks and other receivables.

Credit risk arising from investment in mutual funds, derivative financial instruments, term deposits and other balances with banks is limited and there is no collateral held against these because the counterparties are banks and recognised financial institutions with high credit ratings assigned by the credit rating agencies.

(a) Trade receivables

The Company extends credit to customers at a minimal level as part of its regular business operations, while closely monitoring outstanding receivables. Credit risk is largely mitigated through letters of credit and customer advances.

(c) Price risk

The Company invests its surplus funds in various mutual funds, short term debt funds, government securities and fixed deposits. In order to manage its price risk arising from investments, the Company diversifies its portfolio in accordance with the limits set by the risk management policies. The Company has exposure across mutual fund, bonds and alternate investment fund.

Due to the very short tenure of mutual fund, these do not pose any significant price risk.

1) Investment risk

The Company is exposed to investment risk arising from investments in mutual funds recognised at fair value through profit and loss (FVTPL). As at 31 March 2025, the carrying value of such instruments recognised at FVTPL amounts to ? 749.41 crores (previous year ? 305.84 crores). The details of such investments in mutual funds are given in Note 11 (B)(i).

(b) Deposits with banks and other financial instruments

The Company considers factors such as track record, market reputation and service standards to select the mutual funds and bonds for investments and banks with which balances and deposits are maintained. The Company does not maintain significant cash balances other than those required for its day to day operations.

The Company is also exposed to investment risk arising from investments in bonds recognised at fair value through other comprehensive income (FVTOCI). As at 31 March 2025, the carrying value of such instruments recognised at FVTOCI amounts to ? 115.56 crores (previous year ? 35.25 crores). These being debt instruments, the exposure to risk of changes in market rates is minimal. The details of such investments in bonds are given in Note 11(A)(i)and(ii).

iii) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, letters of credit and working capital limits. The Company ensures it has sufficient cash to meet operational needs while maintaining sufficient margin on its undrawn fund based borrowing facilities at all times.

40.2 Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company''s capital management is to safeguard continuity, maintain healthy capital ratios in order to support its business and maximize shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The funding requirement is met through equity, internal accruals, long term borrowings and short term borrowings.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. The Company manages its capital requirement by overseeing the debt-equity ratio.

41 (b). Fair valuation techniques

The Company maintains policies and procedures to value financial assets and financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate certain fair values.

i) The fair values of investment in quoted equity instrument is based on its quoted market price at the reporting date. The fair values of investment in unquoted equity instrument approximates its carrying amount which is the most appropriate estimate of fair value in the absence of recent information to measure fair value.

ii) The fair values of the mutual funds are based on their published Net Asset Values at the reporting date.

iii) The fair value of cash and deposits, trade receivables, trade payables and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

iv) The fair values of derivatives are based on marked to market valuation statements received from banks with whom the Company has entered into the relevant contracts.

Fair value hierarchy

The following table provides the fair value measurement hierarchy of Company''s asset and liabilities, grouped into Level 1 to Level 3 as described below:

i) Quoted prices / published NAV (unadjusted) in active markets for identical assets or liabilities (level 1). It includes fair value of financial instruments traded in active markets and are based on quoted market prices at the balance sheet date and financial instruments like mutual funds for which net assets value (NAV) is published by mutual fund operators at the balance sheet date.

ii) Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2). It includes fair value of the financial instruments that are not traded in an active market (for example, over-the-counter derivatives) and are determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on the Company specific estimates. If all significant inputs required to fair value an instrument are observable, then the instrument is included in level 2.

iii) Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3). If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

During the year ended 31 March 2025 and 31 March 2024, there were no transfers between level 1 and level 2 fair value measurements and no transfer into and out of level 3 fair value measurements. The carrying amount of financial assets and financial liabilities are measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled except for investment in subsidiary and associate.

The Company provides provident fund benefits for eligible employees as per applicable regulations wherein both employees and the Company make monthly contributions at a specified percentage of the eligible employee''s salary. Contributions under such schemes are made to state managed funds. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due.

(b) Defined benefit plan:

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of completed years of service.

The Employees Gratuity Fund Scheme, which is a defined benefit plan, is managed by a trust maintained with Insurance Companies other than contractual employees.

The present value of the obligation is determined based on actuarial valuation using Projected Units Credit Method, which recognises each period of service as giving rise to additional units of employees benefit entitlement and measures each unit separately to buildup the final obligation.

The Company provides for gratuity for employees from the date of joining.

The following table sets out the details of amount recognised in the financial statements in respect of employee benefit schemes:

These assumptions were developed by the management with the assistance of independent actuary. Discount rate is determined close to each year end by reference to government bonds of relevant economic markets and that have terms to maturity approximating to the terms of the related obligation. Other assumptions are based on management''s historical experience. The estimate of salary growth rate considered in actuarial valuation take into account the inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

Note : In the absence of detailed information regarding plan assets which is funded with insurance companies, the composition of each major category of plan assets, the percentage and amount for each category of the fair value of plan assets has not been disclosed.

(vii) Risk exposure

These plans are exposed to the actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk.

Investment risk : The present value of the defined benefit plan liability (denominated in Indian Rupee) is calculated using a discount rate which is determined by reference to market yields on government bonds at the end of the reporting period. For other defined benefit plans, the discount rate is determined by reference to market yields at the end of the reporting period on high quality corporate bonds when there is a deep market for such bonds; if the return on plan asset is below this rate, it will create a plan deficit.

Interest risk : A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan assets.

The weighted average duration of the defined benefits obligation at the end of the year is 5.00 years ( 31 March 2024: 5.63 years) under funded gratuity plan. The weighted average duration of the defined benefits obligation at the end of the year is 9.00 years ( 31 March 2024: 8.84 years) under unfunded gratuity plan. The Company expects to contribute ? 10.33 crore in next year.

(c) Compensated absences (unfunded):

The leave obligations cover the Company''s liability for sick and earned leaves. The Company does not have an unconditional right to defer settlement for the obligation beyond one year. However based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months, therefore based on the independent actuarial report, only a certain amount of provision has been presented as current and remaining as non-current. Amount of ? 7.83 crore (previous year: ? 3.99 crore) has been recognised in the statement of profit and loss.

Longevity risk: 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 after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

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

Outstanding balances receivable at the year end are unsecured and settlement occurs in cash.

Outstanding balance payable in respect of assets taken by the Company under finance lease is secured. The terms of payment carry an interest rate of 9% p.a.

All the related party transactions are made on terms equivalent to those that prevail in an arm''s length transactions.

The remuneration to KMP and close family members of KMP does not include the provision made for the gratuity and compensated absences as the same is determined on an actuarial basis for the company as a whole.

45. Other notes

(i) Utkal Coal Limited (''UCL), the erstwhile wholly owned subsidiary of the Company and a special purpose vehicle (''SPV'') was earlier allotted the Utkal ''C'' coal block. However, vide an Order of the Hon''ble Supreme Court the aforementioned allotment was cancelled and subsequently, re-allotted to a successful Bidder. In 2022, UCL had received a compensation of ? 20.69 crore towards reimbursement of statutory expenses from the Ministry of Coal. Further, the Nominated Authority, Ministry of Coal, Government of India vide its Provisional Compensation Order dated 22 September 2023, had initially determined the valuation of compensation towards Land (Leasehold and freehold land) at ? 416.71 crore payable to UCL which was subsequently, vide the Final Compensation Order dated 5 December 2023, revised to ? 352.90 crore.

During the financial years 2023-24 and 2024-25, UCL received ? 352.90 crore of compensation from the Nominated Authority as per the aforementioned final compensation order.

However, the Successful Bidder challenged the Final Compensation Order before the Hon''ble Coal Tribunal, Talcher, along with a stay application. On which, the Tribunal declined to grant a stay. The matter is currently pending adjudication.

On 16 January 2024, UCL had filed application before the Additional District and Sessions Judge-Cum-Coal Tribunal CBA (A and D) Act, 1957, Talcher, challenging the Final Compensation Order dated 5 December 2023 passed by the Nominated Authority, only to the extent it disallowed the compensation amount payable to UCL on account of (i) lapsed period of leasehold land; (ii) registration and stamp duty and (iii) payment of administrative charges and annual license fee in respect of Permissive Possession land; aggregating to ? 63.81 crore including interest.

Subsequently, the Nominated Authority, Ministry of Coal, Government of India vide its Provisional Compensation Order dated 15 October 2024 has determined the valuation of compensation towards mine infrastructure pertaining to Utkal ''C'' Coal Mines at ? 8.63 crore payable to UCL as against claim of ? 21.31 crore and directed the Prior Allottee and the Successful Bidder to negotiate for payment towards building(s) constructed over the Rehabilitation and Resettlement land, by the Successful Bidder. Further, the amount of ? 8.63 crore has been received by UCL during the year.

The compensation amount received by UCL from time to time has been duly transferred to the Company against repayment of principal and payment of interest on the amount of loan taken by UCL from the Company in earlier years.

(ii) Disputes between the Company and Grid Corporation of Orissa Ltd. ("GRIDCO") relating to the methodology for billing of power drawn during period of grid disturbance etc. were settled in favour of the Company vide a unanimous award of an Arbitral Tribunal dated 23 March 2008, by virtue of which GRIDCO was directed to pay ? 57.07 lakh along with interest and ? 30 lakh towards costs. Subsequently, GRIDCO filed a petition before the District Judge, Bhubaneswar objecting to the award and obtained an interim stay on the operation of the said award. The Company filed it''s objection thereto on 19 February 2009 and the Court of the District Judge, Bhubaneswar pronounced the judgement dated 8 January 2018 in favour of the Company dismissing the petition filed by GRIDCO. Subsequently, GRIDCO filed an appeal before Hon''ble High Court of Orissa challenging the judgment of the learned District Judge, which is pending for final adjudication.

(iii) The Company had filed a petition before the Hon''ble Orissa High Court under Section 392 of the Companies Act, 1956 to modify the Scheme of Arrangement and Amalgamation and to confirm the reduction of share capital by cancellation of 3,49,466 equity shares of ? 10/- each held by erstwhile ''ICCL Shareholders Trust''. The petition was approved by the Hon''ble High Court vide its order dated 16 March 2011 and registered with the Registrar of Companies (ROC), Orissa on 1 April, 2011. Accordingly, the paid up

equity share capital reduced from ? 26,32,65,190/- divided into 2,63,26,519 equity shares of ? 10/- each to ? 25,97,70,530/- divided into 2,59,77,053 equity shares of ? 10/- each. Subsequently, several shareholder challenged the reduction of share capital before a Division Bench of the Hon''ble High Court which, vide its judgment dated 19 July 2011, directed the Company, inter alia, to restore the aforesaid shares to the Trust and allot it to interested shareholder The Company then moved the Hon''ble Supreme Court which issued notice in the matter and granted interim stay on the subscription or cancellation of the said 3,49,466 shares.

(iv) The Company has taken necessary steps for surrender of Nuasahi Chromite Mines. The Surrender Order is pending from Government of Odisha.

(v) The judgement of the Hon''ble Supreme Court upholding the right of States to impose levy on mineral bearing land is significant and has financial implications for the mining sector at large as well as downstream industries. In this context, the Orissa Rural Infrastructure and Socio-Economic Development Act, 2004 (ORISED) enacted by the State Legislature was struck down by Hon''ble Orissa High Court on 5 December 2005; subsequently, an appeal was filed by the State Government and the matter is sub-judice before the Hon''ble Supreme Court. There are no pending demands against the Company on this account as on date and further clarity is awaited in order to determine financial liability, if any.

(vi) During the year, the Company has signed a Power Purchase Agreement with JSW Green Energy One Ltd and JSW Green Energy Seven Ltd. to acquire hybrid renewable power of 70 MW contracted Demand ( Solar capacity of 50MW AC and Wind capacity of 100 MW) and has entered into another binding term sheet with Ampin Energy Utility One Private Limited to acquire hybrid renewable power of 40 MW contracted Demand (Solar capacity of 58 MW AC and Wind capacity of 58 MW).

46. On 28 February 2025, the Regional Director, Eastern Region, approved the scheme of amalgamation for the merger of a wholly owned subsidiary , Utkal Coal Limited ("UCL¹) into the Company with an appointed date of 28 March 2025. In accordance with appendix C of IND AS 103, "Business combination of entities under common control" , the said merger has been accounted for using the pooling of interest method and the financial information in respect of prior period have been restated as if the business combination had occurred from the beginning of the preceding period in the financial results i.e. 1 April 2023. The difference between the net assets acquired amounting to ?115.52 crore and the investment amounting to ?111.42 crore in UCL (now stands cancelled) has been recognised as capital reserve (amounting to ? 4.10 crore).

52. Leases

The Company as a lessee has obtained certain assets such as immovable properties on various leasing arrangements for the purposes of setting up of factories. With the exception of short-term leases and leases of low value underlying assets, each lease is reflected on the balance sheet as a right-to-use asset and a lease liability. The Company has presented its right-of-use assets separately from other assets. Each lease generally imposes a restriction that unless there is a contractual right for the Company to sub-lease the asset to another party, the right-of-use asset can only be used by the Company. Some lease contain an option to extend the lease for a further term.

Rental expenses recorded as short-term leases under Ind AS 116, during the year ended 31 March 2025 is ? 16.82 crore. (Previous year : ?13.35 crore)

The incremental borrowing rate of 8.75% p.a. to 10.15% p.a. has been applied to lease liabilities recognised in the standalone Balance Sheet.

Total cash outflow for leases of ? 21.90 crore and ? 18.64 crore for the year ended March, 31 2025 and 2024 respectively including cash outflow for short term and low value lease.

Rental Income on the assets given on operating lease is ? 0.65 crore ( Previous year: ? 1.75 crore).

There are no leases which are yet to commence as on 31 March 2025.

53. The Board of Directors of the Company, in its meetings held on 7 November 2024 and 29 January 2025, declared interim dividends of ?10/- and ?5/- per equity share respectively (face value of ?10 each) for the financial year 2024-25.

Additionally, in its meeting held on 21 May 2025, the Board of Directors have recommended a final dividend of ?5/- per equity share (face value of ?10 each) for the financial year 2024-25 subject to necessary approval by the shareholder in the ensuring Annual General Meeting of the Company.

For the financial year 2023-24, the Board of Directors had declared an interim dividend of ?7.50/- per share and a special dividend of ?15/- per share (face value of ?10 each) in its meetings held on 2 November 2023 and 29 March 2024 respectively.

54. Other statutory information:

(i) The Company does not have Benami Property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company does not have any charge or satisfaction of charge, which is yet to be registered with the Registrar of Companies 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 complied with the requirement with respect to number of layers as prescribed under section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

(v) The Company has not advanced or loaned or invested funds in any other person(s) or entity(is) including foreign entities(Intermediaries) with the understanding that the intermediary shall:

(a) Directly or indirectly lend or invest in other person(s) or entity(ies) 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

(vi) The Company has not received any funds from any person(s) or entity(ies), including foreign entities(Funding Party) with the understanding(whether recorded in writing or otherwise) the Company shall:

(a) Directly or indirectly lend or invest in other person(s) or entity(ies) identified in any manner whatsoever by or on behalf of the Funding Party Company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

(vii) 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, survey or any other relevant provisions of the Income-tax Act 1961).

(viii) The Company has not been declared willful defaulter by any bank or financial institution or government or any government authority.

(viv) The Company has filed all the required quarterly return statements of current assets with the bank as per covenants of the Sanction of Workings Capital Limit which are in agreement with the books of accounts.

55. Reclassification/restatement of previously reported financial information

During the current year ended 31 March 2025, the Company has reclassified/ regrouped the comparative financial information pertaining to the financial year ended 31 March 2024. Considering the nature and amount of these reclassification/regrouping. The same is disclosed here below in accordance with the requirement of the Ind AS-8,'' Accounting Policies, Change in Accounting Estimates and Errors'':"

56. Pursuant to the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, as amended by the Companies (Accounts) Amendment Rules, 2021, the Company confirms that for the financial year ended March 31,2025, it has complied with the requirement to use accounting software that includes an audit trail feature.

The accounting software used by the Company for maintaining its books of account:

(i) Records an audit trail of each and every transaction entered during the financial year.

(ii) Maintains an edit log capturing every change made to the books of account, along with the date and time of such changes.

(iii) Ensures that the audit trail feature is enabled at all times and cannot be disabled or tampered with.

(iv) Preserves the audit trail in accordance with applicable statutory record retention requirements.

This compliance is in line with the MCA''s objective to enhance transparency, accountability, and traceability in financial reporting.

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Mar 31, 2024

1. Borrowing costs capitalised during the year I Nil (Previous Year: I 0.15 Crore).

2. Refer Note No. 19.1 for information on property, plant and equipment charged as security against the borrowings.

3. Consequent to the Companies (Corporate Social Responsibility Policy) Amendment Rule, 2021 ("the Rules"), the Company has transferred all the movable CSR capital assets created in earlier years to its social development arm i.e. Bansidhar and Ila Panda Foundation (BIPF), a Charitable Trust for carrying out CSR activities. Approval from the Government of Odisha for transfer of land in favour of BIPF at Therubali obtained on 16^th February, 2023. Consequently, during the current year the company has transferred the immovable assets at Therubali to BIPF. Gross carrying amount of CSR assets transferred to trust this year is I 0.19 Crore. (Previous Year: I 11.26 Crore).

4. The title deeds of freehold land amounting to I 0.02 Crore recorded as ''property, plant & equipment'' in the books of account of the Company are held in the name of an erstwhile subsidiary of the company, which has amalgamated with the company. (Refer Note 50).

5. Refer Note No. 60 for the change in accounting estimate during the year

Brief description of the valuation technique and inputs used to value Investment Property:

The Companies investment property consists of a commercial property situated in Kolkata. The fair values as aforesaid are based on a valuation performed by a registered valuer as defined under rule 2 of Companies (Registered valuer and valuation) Rules, 2017.The fair value has been derived using the market comparable approach based on recent market prices without any significant adjustments being made to the market observable data.

There is a restriction on the realisability of the investment property regarding the transfer of title as it is taken on lease. There are no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

6.1 Indmet Mining Pte Ltd (''Indmet''), a wholly-owned subsidiary incorporated in Singapore, has an Indonesian subsidiary company, PT Sumber Rahayu Indah (''PT Sumber''). PT Sumber is holding a coal mining concession in Indonesia but due to overlapping boundary issues, the mining concession could not be operationalised. Consequently, the Company initiated arbitration proceedings against the Government of the Republic of Indonesia on 24^th July, 2015 pursuant to Article 3 of the United Nations Commission on International Trade Law (UNCITRAL) Arbitration Rules and invoked Article 9 of the Agreement between the Governments of the Republic of Indonesia and the Republic of India for the Promotion and Protection of Investments (the "Treaty"), raising claims of breach of the protections granted under the Treaty. The Arbitral Tribunal, vide its award dated 29^th March, 2019 rejected the claim filed by the Company and also awarded costs to the opposite party.

I n view of the above, as on 31^st March, 2019, the Company has fully impaired the carrying value of its investment in Indmet amounting to I 53.13 Crore.

6.2 Investment in equity shares of Ferro Chrome Producers Association amounts to I 25,000 (31^st March, 2023: I 25,000).

Equity shares movement during the five years preceding 31^st March,2024:

Equity share capital issued as Bonus

During the Financial Year 2021-22, pursuant to the approval of the shareholders through postal ballot and e-voting on 30^th December, 2021, the Allotment Committee of the Directors at its meeting held on 11^th January, 2022, issued and allotted 2,69,77,053 fully paid up Bonus equity shares of I 10 each in the ratio of 1:1 (i.e. 1 Bonus equity share for every 1 existing equity share of the Company) to the shareholders who held equity shares on the record date i.e. 10^th January, 2022.Post the issuance of bonus equity shares, the total paid up equity share capital of the Company is increased from I 26.98 Crore to I 53.96 Crore. Security premium of I 26.78 Crore and capital redemption reserve of I 0.20 Crore have been utilised towards issuance of bonus shares.

Rights, preferences & restrictions in respect of each class of shares

The Company''s authorised share capital consists of two classes of shares, referred to as Equity Shares and Preference Shares, having par value of I 10/- and I 100/- each respectively.

Each holder of Equity Share is entitled to one vote per share. The preferential shareholders have preferential right over equity shareholders in respect of repayment of capital and payment of dividend. In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Nature and Purpose of Reserves Securities Premium Reserve

Securities Premium is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

General Reserve

General reserve is created by the Company by appropriating the balance of Retained Earnings. It is a free reserve which can be used for meeting future contingencies, creating working capital for business operations, strengthening the financial position of the company.

Retained Earnings

Retained earning are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. (Refer statement of changes in equity.)

Investment Revaluation Reserve

Investment revaluation reserve is the cumulative gains and losses arising on the revaluation of debt instruments on the balance sheet date measured at fair value through other comprehensive income. The reserves accumulated will be reclassified to retained earnings and profit and loss respectively, when such instruments are disposed.

19.1 Details of securities provided (including for current maturities as stated under "Short term Borrowings"

in Note No. 22) and their repayment terms:

Amounts carried in Note No. 19 and 22 represent Amortised Cost whereas amounts mentioned herein below

represent the payables as on the dates mentioned.

(EMI - Equated Monthly Instalment; EQI - Equated Quarterly Instalment; UQI - Unequated Quarterly Instalment)

Term Loans from Banks:

(a) Vehicle Loan of I 0.41 Crore (31^st March, 2023: I 0.82 Crore) secured by charge on the Vehicles. Repayment in EMI as per the repayment schedules of respective vehicles.

(b) Loan of I 0.78 Crore (31^st March, 2023: I 3.01 Crore) purchase of 6 no of Volvo- tipper vehicles and secured by charge on the Vehicle financed. Repayment by 41 EMI from March 2021 as per the repayment schedules of respective vehicles.

(c) Loan of I 0.38 Crore (31^st March, 2023: I 0.54 Crore) purchase of BMW vehicle and secured by charge on the Vehicle. Repayment by 60 EMI from May ''2021 as per the repayment schedule of vehicle.

(d) Loan of I Nil (31^st March, 2023: I 5.30 Crore) for maintenance capex for replacement of worn out assets and addition of new assets for uninterrupted plant operation, secured by exclusive charge over the residential housing project including land admeasuring about 10.92 acres at Choudwar, Cuttack and 30 MVA furnace at Choudwar, Cuttack Odisha. Repayment by 2 EQI of I 0.11 Crore from December 2021 and 20 EQI of I 0.33 Crore from June 2022.

(b) Other money for which the Company is

contingently liable:

(i) Demand notices in respect of six mines had been raised by the respective Deputy Director of Mines and Mining Officers of Government of Odisha amounting to I 225.14 Crore for the alleged excess extraction of minerals over the quantity permitted under the mining plan/scheme, environmental clearance or consent to operate and other statutory permissions during the period from 1993 to 2010 under Section 21(5) of Mines & Minerals (Development and Regulation) Act, 1957 (''Act''). The Company filed Revision Applications before Mines Tribunal, New Delhi against all such demands. Vide Common Order dated 11.10.2017, Revisionary Authority of Mines Tribunal has set aside the impugned demands in respect of all six mines and remanded back to Government of Odisha for taking necessary action in light of Supreme Court Judgment dated 02.08.2017 in Common Cause-vs-Union of India. Subsequently, demand notices in respect of four mines viz., Sukinda Chromite Mines, Chingudipal Chromite Mines, Bangur Chromite Mines and Nuasahi Chromite Mines have been raised by the respective Deputy Director of Mines and Mining Officers of Government of Odisha amounting to I 122.90 Crore for alleged excess extraction of minerals over the quantity permitted under environment clearance only during 2000-01 to 2010-11 under Section 21(5) of the Act. Aggrieved by the said notices, the Company had filed Revision Applications before the Mines Tribunal, New Delhi challenging the said demand notices. The Revision Applications were dismissed vide Order dtd. 14.09.2021. The Company has filed writ petitions before Hon''ble High Court of Orissa challenging the Final Order dated 14.09.2021 passed by the Revisionary Authority, Ministry of Mines, Government of India and the demand notices. Hon''ble Court vide its Orders dated 24.05.2022 stayed the impugned demand notices subject to deposit of I 30 Crore before the appropriate State Authorities in respect Sukinda Chromite Mines and such Orders have been complied with by the Company.

(ii) Consequent upon revision in mining plan enhancing the annual production capacity to 6.00 Lakh MT in the year 2019-20 & 3.71 Lakh MT in the year 2016-17 in respect of Mahagiri and Sukinda Chromite Mines respectively, the District Sub-Register, Jajpur has raised demand notices amounting to I 45.20 Crore towards differential stamp duty & registration fee in respect of both the Mining Lease Deeds pursuant to Notification no. 312-SM-REM-3/2011-SM dated 13.01.2012 of Commissioner -cum-secretary to the Government

of Odisha, Department of Steel and Mines, as published in the Odisha Gazette on 18.01.2012. The Company has filed writ petitions before the Hon''ble High Court of Orissa challenging the legality and validity of such demand notices. The Hon''ble High Court vide its interim orders dated

17.03.2021 has given direction to the authorities that no coercive action shall be taken against the Company for such demand notices till the next date of hearing & the matters are pending.

(iii) The Company had entered into a contract dated

12.02.2021 with M/s. Purva Infra Services, a partnership firm, for trial Open Cast Mining by Grab. The contractor delayed the work significantly and ultimately terminated the Agreement dated

12.02.2021 by unilateral & arbitrary abandonment of work even after reduction of scope of work. The Company filed Application for pre-litigation mediation under Sec. 12A of Commercial Courts Act, 2015 against Purva Infra Services claiming I 14.36 Crore towards refund of advances and business loss. Similarly, Purva Infra Services has also filed Application for pre-litigation mediation under Sec. 12A of Commercial Courts Act, 2015 against the Company claiming I 20.20 Crore on various heads. On 28.08.2023 the Mediation Proceeding has been disposed of and treated to be a non-starter as per Rule 3 Sub Rule (4) of Commercial Courts (P I M & S) Rules, 2018. Settlement discussion is going on.

B. Commitments:		(I in Crore)
Particulars	As at 31st March, 2024	As at 31st March, 2023
Estimated amount	169.59	49.90
of capital contracts remaining to be executed and not provided for (Net of Advances)

37. Financial risk management

37.1 Financial risk factors

The Company''s principal financial liabilities comprise of borrowings, trade and other payables. The main purpose of these financial liabilities is to manage finances for the Company''s operations. The Company''s principal financial assets include loans and advances, investment in equity instruments and mutual funds, trade receivables and cash and bank balances that arise directly from its operations. The Company also enters into derivative transactions to hedge foreign currency and interest rate risks and not for speculative purposes. The Company is exposed to market risk, credit risk and liquidity risk and the Company''s senior management oversees

(i) Market risk

Market risk is the risk that the fair value of future cash flows of a financial asset will fluctuate because of changes in market prices. The Company''s activities expose it to a variety of financial risks, including the effects of changes in foreign currency exchange rates and interest rates.

(a) Currency risk

Foreign currency risk is the risk that fair value of future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities. The Company has obtained foreign currency loans and has foreign currency trade payables and receivables and is therefore, exposed to a foreign exchange risk. For mitigating exposure to foreign exchange risk, the Company adopts a policy of selective hedging based on the risk perception of the management. The Company has entered into foreign currency derivative contracts.

The following table demonstrates the sensitivity in the USD to the Indian Rupee and the resulting impact on the Company''s Profit before tax, due to changes in the fair value of monetary assets and liabilities:

(a) Trade receivables

The Company extends credit to customers in the normal course of business. Outstanding customer receivables are regularly monitored. The Company has also taken advances and security deposits from its customers, which mitigate the credit risk to an extent. An impairment analysis is performed at each reporting date on an individual basis for major customers.

(b) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s short-term debt obligations with floating interest rates. Any changes in the interest rates environment may impact future cost of borrowings. As the Company does not have exposure to any floating-interest bearing assets, or any significant long-term fixed-interest bearing assets, its interest income and related cash inflows are not affected by changes in market interest rates. Moreover, the short-term borrowings of the Company do not have a significant fair value or cash flow interest rate risk due to their short tenure.

(ii) Credit risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities, primarily trade receivables and from its financing activities, including deposits with banks and other financial instruments.

The Company is exposed to credit risk in relation to financial guarantee given by the Company on behalf of a related party. The Company''s maximum exposure in this regard is the maximum amount the Company could have to pay if the guarantee is called on 31^st March, 2024 is I Nil (PY: I 3.99 Crore). This financial guarantee has been issued to a bank on behalf of the related party. Based on the expectation at the end of the reporting period, the Company considers the likelihood of any claim under guarantee is remote. Company has provided impairment loss allowance of I Nil as on 31^st March, 2024 (PY: I 0.05 Crore) based on fair value of the Corporate guarantee given.

(b) Deposits with banks and other financial instruments

The Company considers factors such as track record, market reputation and service standards to select the mutual funds for investments and banks with which balances and deposits are maintained. Generally, the balances are maintained with the banks with which the Company has also availed borrowings. The Company does not maintain significant cash balances other than those required for its day to day operations.

iii) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, letters of credit and working capital limits. The Company ensures it has sufficient cash to meet operational needs while maintaining sufficient margin on its undrawn fund based borrowing facilities at all times.

The table below provides details regarding remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments.

37.2 Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, equity share suspense, securities premium and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company''s capital management is to safeguard continuity, maintain healthy capital ratios in order to support its business and maximise shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The funding requirement is met through equity, internal accruals, long term borrowings and short term borrowings.

I n order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

38 (b). Fair valuation techniques

The Company maintains policies and procedures to value financial assets and financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate certain fair values.

i) The fair values of investment in quoted equity instrument is based on its quoted market price at the reporting date. The fair values of investment in unquoted equity instrument approximates its carrying amount which is the most appropriate estimate of fair value in the absence of recent information to measure fair value.

ii) The fair values of the mutual funds are based on their published Net Asset Values at the reporting date.

iii) The fair value of cash and deposits, trade receivables, trade payables and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

iv) The fair values of derivatives are based on marked to market valuation statements received from banks with whom the Company has entered into the relevant contracts.

Fair Value hierarchy

The following table provides the fair value measurement hierarchy of Company''s asset and liabilities, grouped into Level 1 to Level 3 as described below:

(i) Quoted prices/published NAV (unadjusted) in active markets for identical assets or liabilities (level 1). It includes fair value of financial instruments traded in active markets and are based on quoted market prices at the balance sheet date and financial instruments like mutual funds for which net assets value (NAV) is published by mutual fund operators at the balance sheet date.

(ii) I nputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2). It includes fair value of the financial instruments that are not traded in an active market (for example, over-the-counter derivatives) and are determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on the company specific estimates. If all significant inputs required to fair value an instrument are observable, then the instrument is included in level 2.

(b) Defined Benefit Plan:

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

The Employees Gratuity Fund Scheme, which is a defined benefit plan, is managed by a trust maintained with Insurance Companies.

The present value of the obligation is determined based on actuarial valuation using Projected Units Credit Method, which recognises each period of service as giving rise to additional units of employees benefit entitlement and measures each unit separately to buildup the final obligation.

The Company provides for gratuity for employees from the date of joining.

The following table sets out the details of amount recognised in the financial statements in respect of employee benefit schemes:

(vii) Risk exposure

These plans are exposed to the actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk.

Investment risk: The present value of the defined benefit plan liability (denominated in Indian Rupee) is calculated using a discount rate which is determined by reference to market yields on government bonds at the end of the reporting period. For other defined benefit plans, the discount rate is determined by reference to market yields at the end of the reporting period on high quality corporate bonds when there is a deep market for such bonds; if the return on plan asset is below this rate, it will create a plan deficit.

Interest risk: A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan assets.

Longevity risk: 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 after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

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

Presentation in the Statement of Profit and Loss, Other Comprehensive Income and Balance Sheet

Gratuity is in the nature of defined benefit plans and re-measurement gains/(losses) on defined benefit plans are shown under OCI as ''Items that will not be reclassified to profit or loss'', including the income tax effect on the same.

Expense for service cost, net interest on net defined benefit liability/(asset) is recognised in the Statement of Profit and Loss.

Ind AS 19 does not require segregation of net defined liability/(asset) into current and non-current, however net defined liability/(asset) is bifurcated into current and non-current portions in the balance sheet, as per Ind AS 1 on "Presentation of Financial Statements".

(c) Disclosure in respect of Material Related Party

Transactions during the year (i.e. more than 10%

of the respective category):

1 Dividend Paid to B Panda Trust 176.55 Crore (Previous Year: 1 34.80 Crore).

2 Dividend received from IMFA Alloys Finlease Limited 1 1.27 Crore (Previous Year: 1 1.84 Crore).

3 Services Received includes services from UMSL Ltd. 1 30.76 Crore. (Previous Year: 1 63.31 Crore).

4 Services Rendered includes services to UMSL Ltd. 1 0.15 Crore.(Previous Year: 1 0.15 Crore).

5 Remuneration includes amount paid to Mr. Baijayant Panda 1 20.36 Crore (Previous Year: 1 13.62 Crore), Mr. Subhrakant Panda 1 21.20 Crore (Previous Year: 1 14.47 Crore), Mr. Chitta Ranjan Ray 1 0.85 Crore (Previous Year: 1 0.82 Crore), Mr. Prem Khandelwal 1 1.49 Crore (Previous Year: 1 1.77 Crore) and Mr. Bijayananda Mohapatra 1 1.47 Crore (Previous Year: 1 1.57 Crore).

6 Donations includes amount given to Bansidhar & Ila Panda Foundation 1 5.83 Crore (Previous year: 1 5.11 Crore) and Indian Metals and Public Charitable Trust 1 0.60 Crore (Previous Year: 1 0.64 Crore).

7 Corporate Social Responsibility Expenses include amount given to Bansidhar & Ila Panda Foundation of 1 15.34 Crore.(Previous year: 1 16.24 Crore).

8 Lease rentals paid to IMFA Alloys Finlease Limited amounted 1 3.96 Crore.(Previous year: 1 3.96 Crore).

9 Other Income from UMSL Ltd. 1 Nil (Previous Year: 1 2.10 Crore).

10 I nterest Income from Utkal Coal Ltd. 1220.45 Crore (Previous Year: 1 Nil).

11 Sale of Property, Plant and Equipment includes sale of land and building to Esquire Realtors Pvt. Ltd 1 Nil (Previous Year: 1 2.78 Crore) and sale of land to Bansidhar & Ila Panda Foundation 1 Nil (Previous Year: 11.33 Crore).

12 Loan given includes amount paid to Utkal Coal Limited 1 21.73 Crore (Previous Year: 1 0.16 Crore).

13 Loan repayment received includes amount from Utkal Coal Limited 1 153.72 Crore (Previous Year: 1 20.69 Crore).

14 Guarantee provided to Bank for loan availed by Bansidhar & Ila Panda Foundation for Loan availed 1 Nil (Previous Year: 1 3.99 Crore).

15 Reimbursement of expenses paid to Nuvion Consulting 1 0.09 Crore (Previous Year: 1 Nil)

42. "The Company holds 79.2% equity in Utkal Coal Ltd (UCL), an SPV which was allotted the Utkal ''C'' coal block that was subsequently cancelled by virtue of an Order of the Hon''ble Supreme Court and the same has been reallocated to M/s Jindal Steel and Power Limited (JSPL). UCL has received compensation of 1 20.69 Crore towards reimbursement of statutory expenses from Ministry of Coal on 14^th December, 2022. The Nominated Authority, Ministry of Coal, Government of India vide its Provisional Compensation Order dated 22^nd September, 2023, had determined the Valuation of compensation towards Land (Leasehold & Freehold Land) at 1 416.71 Crore payable to UCL in respect of Utkal ''C'' coal block. Subsequently, the Nominated Authority vide its Final Compensation Order dated 5^th December, 2023, has revised the compensation towards leasehold land and determined the compensation towards Land (Leasehold & Freehold Land) at 1 352.90 Crore payable to UCL. M/S JSPL, the successful allottee filed an Application in the Court of the Additional District & Sessions Judge-Cum-Coal Tribunal CBA (A & D) Act, 1957, Talcher, challenging the Final Compensation order dated 5^th December, 2023 along with a stay application with a prayer for stay of operation of the final order dated 5^th December, 2023 pending final disposal of the Application. However, the Hon''ble Tribunal vide its order dated 16^th January, 2024, declined to pass any stay order. On 16^th January, 2024, UCL has filed application before the Additional District & Sessions Judge-Cum-Coal Tribunal CBA (A & D) Act, 1957, Talcher, challenging the Final Compensation Order dated 5^th December, 2023 passed by the Nominated Authority, only to the extent it disallowed the compensation amount payable to UCL on account of (i) lapsed period of leasehold land; (ii) registration and stamp duty and (iii) payment of administrative charges and

annual license fee in respect of Permissive Possession land; to the tune of 1 63.81 Crore including interest. UCL has received compensation of 1 131.52 Crore towards fixed cost for land from the Nominated Authority on 19^th March, 2024 and the same amount has been remitted to IMFA. The balance amount is under process of recovery."

43. Consequent upon final order of Nominated Authority, Ministry of Coal, Government of India dated 5^th December, 2023 and legal opinion dated 31^st January, 2024 the Company has recognised 1 220.45 Crore as income from interest on unsecured loan given to UCL. However, as the amount of compensation receivable as per the above final order is lower than interest income, the Company has written off 1 110.61 Crore against the interest income from UCL from it''s books and created a provision for impairment of 1111.42 Crore on the carrying value of its equity investment in UCL. The Company''s net exposure in UCL as on 31^st March, 2024 stands at 1 221.37 Crore (after writing off 1110.61 Crore).

44. The Board of Directors of the Company and Utkal Coal Ltd (UCL) at their meeting held on 2^nd November, 2023 and 31^st October, 2023 respectively approved a Scheme of Amalgamation ("The Scheme") for the merger of UCL into the Company under section 230 to 232 and other applicable provisions of the Companies Act, 2013. The proposal was filed with BSE limited and National Stock Exchange of India Limited on 21^st November, 2023 seeking their approval. However, since the amalgamation process of wholly owned subsidiary is much simpler, the Board of Directors of the Company has approved the acquisition of 52,00,000 (20.80%) shares from the remaining shareholders of UCL to make it a wholly owned subsidiary. The Company and UCL, in their respective Board Meetings held on 29^th March, 2024 have given their consent to withdraw the scheme and resubmit the scheme with Stock Exchanges.

45. Disputes between the Company and Grid Corporation of Orissa Ltd. ("GRIDCO") relating to the methodology for billing of power drawn during period of grid

disturbance etc. were settled in favour of the Company vide a unanimous award of an Arbitral Tribunal dated 23^rd March, 2008, by virtue of which GRIDCO was directed to pay 1 57.07 Lakh along with interest and 1 30 Lakh towards costs. Subsequently, GRIDCO filed a petition before the District Judge, Bhubaneswar objecting the award and obtained an interim stay on the operation of the said award. The Company filed it''s objection thereto on 19^th February, 2009 and the Court of the District Judge, Bhubaneswar pronounced judgement dated 8^th January, 2018 in favour of the Company dismissing the petition filed by GRIDCO. Subsequently, GRIDCO filed an appeal before Hon''ble High Court of Orissa challenging the judgment of the learned District Judge, which is pending for final adjudication.

46. The Company had filed a petition before the Hon''ble Orissa High Court under Section 392 of the Companies Act, 1956 to modify the Scheme of Arrangement & Amalgamation and to confirm the reduction of share capital by cancellation of 3,49,466 equity shares of 1 10/- each held by erstwhile ''ICCL Shareholders Trust''. The petition was approved by the Hon''ble High Court vide its order dated 16^th March, 2011 and registered with the Registrar of Companies (ROC), Orissa on 1^st April, 2011. Accordingly, the paid up equity share capital reduced from 1 26,32,65,190/-divided into 2,63,26,519 equity shares of 1 10/- each to 1 25,97,70,530/- divided into 2,59,77,053 equity shares of 1 10/- each. Subsequently, several shareholders challenged the reduction of share capital before a Division Bench of the Hon''ble High Court which, vide its judgment dated 19^th July, 2011, directed the Company, inter alia, to restore the aforesaid shares to the Trust and allot it to interested shareholders. The Company then moved the Hon''ble Supreme Court which issued notice in the matter and granted interim stay on the subscription or cancellation of the said 3,49,466 shares.

47. As per Ind AS 108 on "Operating Segments", segment information has been provided under the Notes to Consolidated Financial Statements as Note No. 35.

(ii) Trade receivables and Contract Balances

The company classifies the right to consideration in exchange for deliverables as receivable.

The balances of trade receivables and advance from customers at the beginning and end of the reporting period have been disclosed at note no 11 & 25 respectively.

The revenue recognised during the year ended 31^st March, 2024 includes revenue against advances from customers amounting to I 3.03 Crore at the beginning of the year. (Previous Year: I 0.24 Crore)

(iii) Performance obligations and remaining performance obligations

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognised as at the end of the reporting period and the explanation as to when the Company expects to recognise these amounts in revenue.

The aggregate value of performance obligations that are completely or partially unsatisfied as at 31^st March, 2024 is Nil.

57. The Parliament of India has approved the Code of Social Security, 2020 (the Code) which may impact the contributions by the company towards provident fund, gratuity and ESIC. The Code has been published in the Gazette of India however, the effective date has not yet been notified. 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, if any.

58. The Board of Directors of the Company has declared interim dividend of I 7.50 per share and special dividend of I 15/- per share (face value of I 10/- each) for the financial year 2023-24 in its meeting held on 2^nd November, 2023 & 29^th March, 2024 respectively.

The Board of Directors of the Company had declared interim dividend of I 5/- per share (face value of I 10/-each) for the financial year 2022-23 in its meeting held on 27^th October, 2022. The Board of Directors of the Company had proposed final dividend of I 5/-per share (face value of I 10/- each) for the financial year 2022-23 in its meeting held on 30^th May, 2023. The Board of Directors of the Company have proposed final dividend of I 7.50 per share (face value of I 10/-each) for the financial year 2023-24 in its meeting held on 23^rd May, 2024.

59. Other Statutory Information:

(i) The Company does not have Benami Property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company has not traded or invested in crypto currency or virtual currency during the financial year.

(iii) The Company has not advanced or loaned or invested funds in 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 person(s) or entity(ies) 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

(iv) The Company has not received any funds from any person(s) or entity(ies), including foreign entities(Funding Party) with the understanding(whether recorded in writing or otherwise) the Company shall:

(a) Directly or indirectly lend or invest in other person(s) or entity(ies) identified in any manner whatsoever by or on behalf of the Funding Party Company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

(v) 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, survey or any other relevant provisions of the Income Tax Act, 1961.

(vi) The Company has filed all the required quarterly return statements of Current assets with the bank as per covenants of the Sanction of Workings Capital Limit which are in agreement with the books of accounts.

60. With effect from 1^st October, 2023 the Company has revised the method of depreciation on Property, Plant and Equipment (PPE) from Written Down Value (WDV) method to Straight Line Method (SLM), based on technical assessment done by independent technical consultant with regards to estimated useful lives of the assets and pattern of economic benefits expected to be generated from use of these assets. The prospective change in depreciation method has resulted in lower depreciation expense in the Statement of Profit and Loss by I 30.46 Crore during the year ended 31^st March, 2024. Consequently, the depreciation and amortisation expense is not comparable with previous year to that extent.

61. Subsequent Events

There are no other material adjusting or non-adjusting subsequent events, except as already disclosed.

---

Mar 31, 2023

Provision for impairment has been made of Nil (Previous Year : H 0.48 Crore on the carrying amount of the CSR assets in the financial statements because the Company will not be able to recover the carrying amount of the CSR assets from its Trust in any form.

5. The title deeds of freehold land amounting to H 0.02 Crore recorded as ''property, plant & equipment'' in the books of account of the Company are held in the name of an erstwhile subsidiary of the company, which has amalgamated with the company. (Refer Note 52).

Capital Work-in-Progress

Capital work in progress ageing schedules for the year ended 31^st March, 2023

1. The aggregate depreciation & amortisation expense on right of use assets are included under depreciation & amortisation expense in the statement of profit and loss.

2. The Company''s obligations under finance leases are secured by lessors title to the leased assets.

Brief description of the valuation technique and inputs used to value Investment Property:

The Companies investment property consists of a commercial property situated in Kolkata. The fair values as aforesaid are based on a valuation performed by a registered valuer as defined under rule 2 of Companies (Registered valuer and valuation) Rules, 2017. The fair value has been derived using the market comparable approach based on recent market prices without any significant adjustments being made to the market observable data.

There is a restriction on the realisability of the investment property regarding the transfer of title as it is taken on lease. There are no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

6.1 I ndmet Mining Pte Ltd (''Indmet''), a wholly-owned subsidiary incorporated in Singapore, has an Indonesian subsidiary company, PT Sumber Rahayu Indah (''PT Sumber''). PT Sumber is holding a coal mining concession in Indonesia but due to overlapping boundary issues, the mining concession could not be operationalised. Consequently, the Company initiated arbitration proceedings against the Government of the Republic of Indonesia on 24^th July, 2015 pursuant to Article 3 of the United Nations Commission on International Trade Law (UNCITRAL) Arbitration Rules and invoked Article 9 of the Agreement between the Governments of the Republic of Indonesia and the Republic of India for the Promotion and Protection of Investments (the "Treaty"), raising claims of breach of the protections granted under the Treaty. The Arbitral Tribunal, vide its award dated 29^th March, 2019 rejected the claim filed by the Company and also awarded costs to the opposite party.

In view of the above, as on 31^st March, 2019, the Company has fully impaired the carrying value of its investment in Indmet amounting to H 53.13 crore.

6.2 Investment in equity shares of Ferro Chrome Producers Association amounts to H 25,000 (31^st March, 2022: H 25,000).

The aforesaid loans are repayable on demand and carry a rate of interest which is not below that as mentioned in Section 186 of the Companies Act, 2013.

The Company has provided a Guarantee to a Bank for loan availed by Bansidhar & Ila Panda Foundation amounting to H 3.99 Crore (Previous Year : H 10.56 crore) to meet expenses towards construction of a School.

Equity shares movement during the five years preceding 31^st March,2023:

* During the Financial Year 2021-22, pursuant to the approval of the shareholders through postal ballot and e-voting on 30^th December, 2021, the Allotment Committee of the Directors at its meeting held on 11^th January, 2022, issued and allotted 2,69,77,053 fully paid up Bonus equity shares of H 10 each in the ratio of 1:1 (i.e. 1 Bonus equity share for every 1 existing equity share of the Company) to the shareholders who held equity shares on the record date i.e. 10^th January, 2022. Post the issuance of bonus equity shares, the total paid up equity share capital of the Company is increased from H 26.98 Crores to H 53.96 Crores. Security premium of H 26.78 crores and capital redemption reserve of H 0.20 crores have been utilised towards issuance of bonus shares.

Rights, preferences & restrictions in respect of each class of shares

The Company''s authorised share capital consists of two classes of shares, referred to as Equity Shares and Preference

Shares, having par value of H 10/- and H 100/- each respectively.

Each holder of Equity Share is entitled to one vote per share. The preferential shareholders have preferential right over

equity shareholders in respect of repayment of capital and payment of dividend.

In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the

Company after distribution of all preferential amounts, in proportion to their shareholding.

Nature and Purpose of Reserves Securities Premium Reserves

Securities Premium is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013. During the previous year, the reserve has been utilised amounting H 26.78 Crore towards the issuance of Bonus Shares.

Capital Redemption Reserve

Capital Redemption Reserve is created out of transfer from General Reserve. During the previous year, the reserve has been fully utilised amounting H 0.20 crore towards the issuance of Bonus shares.

General Reserve

General reserve is created by the Company by appropriating the balance of Retained Earnings. It is a free reserve which can be used for meeting future contingencies, creating working capital for business operations, strengthening the financial position of the company.

Retained earnings

Retained earning are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. (Refer statement of changes in equity.)

19.1 Details of securities provided (including for current maturities as stated under "Short term Borrowings" in Note No. 23) and their repayment terms :

Amounts carried in Note No. 19 and 23 represent Amortised Cost whereas amounts mentioned herein below represent the payables as on the dates mentioned.

(EMI - Equated Monthly Instalment; EQI - Equated Quarterly Instalment; UQI - Unequated Quarterly Instalment).

Term Loans from Banks :

(a) Vehicle Loan of H 0.82 crore (31^st March, 2022: H 1.48 Crore) secured by charge on the Vehicles. Repayment in EMI as per the repayment schedules of respective vehicles.

(b) Loan amount Nil (31^st March, 2022: H 0.40 crore) for common COVID-19 Emergency Credit Line (CCECL) secured against extension of 1^st paripassu charge on current assets of the company. Repayment by 18 EMI of H 0.40 crore from November 2020.

(c) Loan of H 3.01 crore (31^st March, 2022: H 5.07 crore) purchase of 6 no of Volvo- tipper vehicles and secured by charge on the Vehicle financed. Repayment by 41 EMI from March ''2021 as per the repayment schedules of respective vehicles.

(d) Loan of H 0.54 crore (31^st March, 2022: H 0.70 crore) purchase of BMW vehicle and secured by charge on the Vehicle. Repayment by 60 EMI from May 2021 as per the repayment schedule of vehicle.

(e) Loan of H 5.30 Crore (31^st March 2022: H 6.62 crore) for maintenance capex for replacement of worn out assets and addition of new assets for uninterrupted plant operation, secured by exclusive charge over the residential housing project including land admeasuring about 10.92 acres at Choudwar, Cuttack and 30 MVA furnace at Choudwar, Cuttack Odisha. Repayment by 2 EQI of H 0.11 Crore from December 2021 and 20 EQI of H 0.33 Crore from June 2022.

37.	Contingent Liabilities and Commitments		(H in Crore)
Particulars		As at 31st March, 2023	As at 31st March, 2022
A.	Contingent Liabilities
(a)	Claims against the Company not acknowledged as debts:
Government Claims
	(i) Income Tax (deposits made under protest 31st March, 2023 : H 38.80 Crore, 31st March, 2022 : H 37.42 Crore)	42.05	67.39
	(ii) Cenvat Credit reversal and penalty thereon (deposits made under protest 31st March, 2023 : H 1.54 Crore, 31st March, 2022 : H 1.64 Crore)	55.75	53.46
	(iii) Excise Duty and penalty thereon (deposits made under protest 31st March, 2023 : H 0.21 Crore, 31st March, 2022 : H 0.21 Crore)	1.81	1.78
	(iv) Goods and Service Tax and penalty thereon (deposits made under protest 31st March, 2023 : H 0.21 Crore, 31st March, 2022 : H 0.21 Crore)	3.96	3.70
	(v) Provisional duty bonds to customs authority pending final debonding of 100% EOU	0.34	0.34
	(vi) Entry tax (deposits made under protest 31st March, 2023 : H 6.75 Crore, 31st March, 2022 : H 6.68 Crore)	15.69	15.83
	(vii) Sales tax (deposits made under protest 31st March, 2023 : H 0.03 Crore, 31st March, 2022 : H 0.07 Crore)	0.21	0.29
	(viii) Value Added Tax and penalty thereon (deposits made under protest 31st March, 2023 : H 2.34 Crore, 31st March, 2022 : H 3.15 Crore)	9.26	9.30
	(ix) State Govt./Local Authority rent, duties, levies & cess etc. (deposits made under protest 31st March, 2023 : H 18.23 Crore, 31st March, 2022 : H 16.63 Crore)	48.78	76.12
	(x) Service Tax and penalty thereon (deposits made under protest 31st March, 2023 : H 0.02 Crore, 31st March, 2022 : H 0.02 crore)	0.79	0.78
Other Claims
Legal suits filed against the Company		0.51	0.89

(b) Other money for which the Company is contingently liable :

before Mines Tribunal, New Delhi against all such demands. Vide Common Order dated 11^th October, 2017, Revisionary Authority of Mines Tribunal has set aside the impugned demands in respect of all six mines and remanded back to Government of Odisha for taking necessary action in light of Supreme Court Judgment dated 02^nd August, 2017 in Common Cause-vs-Union of India. Subsequently, demand notices in respect of four mines viz., Sukinda Chromite Mines, Chingudipal Chromite Mines, Bangur Chromite Mines and Nuasahi Chromite Mines have been raised by the respective Deputy Director of Mines and Mining Officers of Government of

(i) Demand notices in respect of six mines had been raised by the respective Deputy Director of Mines and Mining Officers of Government of Odisha amounting to H 225.14 crores for the alleged excess extraction of minerals over the quantity permitted under the mining plan/scheme, environmental clearance or consent to operate and other statutory permissions during the period from 1993 to 2010 under Section 21(5) of Mines & Minerals (Development and Regulation) Act, 1957 (''Act''). The Company filed Revision Applications

Odisha amounting to H 122.90 crore for alleged excess extraction of minerals over the quantity permitted under environment clearance only during 2000-01 to 2010-11 under Section 21(5) of the Act. Aggrieved by the said notices, the Company had filed Revision Applications before the Mines Tribunal, New Delhi challenging the said demand notices. The Revision Applications were dismissed vide Order dtd. 14^th September, 2021. The Company has filed writ petitions before Hon''ble High Court of Orissa challenging the Final Order dated 14^th September, 2021 passed by the Revisionary Authority, Ministry of Mines, Government of India and the demand notices. Hon''ble Court vide its Orders dated 24^th May, 2022 stayed the impugned demand notices subject to deposit of H 30 crores before the appropriate State Authorities in respect Sukinda Chromite Mines and such orders have been complied with by the Company.

(ii) Consequent upon revision in mining plan enhancing the annual production capacity to 6.00 lakh MT in the year 2019-20 & 3.71 Lakh MT in the year 2016-17 in respect of Mahagiri and Sukinda Chromite Mines respectively, the District Sub-Register, Jajpur has raised demand notices amounting to H 45.20 crore towards differential stamp duty & registration fee in respect of both the Mining Lease Deeds pursuant to Notification no. 312-SM-REM-3/2011-SM dated 13^th January, 2012 of Commissioner -cum-secretary to the Government of Odisha, Department of Steel and Mines, as published in the Odisha Gazette on 18^th January, 2012. The Company had filed writ petitions before the Hon''ble High Court of Orissa challenging the legality and validity of such demand notices. The Hon''ble High Court vide its interim orders dated 17^th March, 2021 has given direction to the authorities that no coercive action shall be taken against the Company for such demand notices till the next date of hearing & the matters are pending.

(iii) The Company had entered into a contract dated 12^th February, 2021 with M/s. Purva Infra Services, a partnership firm, for trial Open Cast Mining by Grab. The contractor delayed the work significantly and ultimately terminated

the Agreement dated 12^th February, 2021 by unilateral & arbitrary abandonment of work even after reduction of scope of work. The Company filed Application for pre-litigation mediation under Sec. 12A of Commercial Courts Act, 2015 against Purva Infra Services claiming H 14.36 crores towards refund of advances and business loss. Similarly, Purva Infra Services has also filed Application for pre-litigation mediation under Sec. 12A of Commercial Courts Act, 2015 against the Company claiming H 20.20 crores on various heads.

B. Commitments:		(H in Crore)
Particulars	As at 31st March, 2023	As at 31st March, 2022
Estimated amount	49.90	74.80
of capital contracts remaining to be executed and not provided for (Net of Advances)

38. Financial risk management38.1 Financial risk factors

The Company''s principal financial liabilities comprise of borrowings, trade and other payables. The main purpose of these financial liabilities is to manage finances for the Company''s operations. The Company''s principal financial assets include loans and advances, investment in equity instruments and mutual funds, trade receivables and cash and bank balances that arise directly from its operations. The Company also enters into derivative transactions to hedge foreign currency and interest rate risks and not for speculative purposes. The Company is exposed to market risk, credit risk and liquidity risk and the Company''s senior management oversees the management of these risks.

i) Market risk

Market risk is the risk that the fair value of future cash flows of a financial asset will fluctuate because of changes in market prices. The Company''s activities expose it to a variety of financial risks, including the effects of changes in foreign currency exchange rates and interest rates.

Foreign currency risk is the risk that fair value of future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities. The Company has obtained foreign currency loans and has foreign currency trade payables and receivables and is therefore, exposed to a foreign exchange risk. For mitigating exposure to foreign exchange risk, the Company adopts a policy of selective hedging based on the risk perception of the management. The Company has entered into foreign currency forward contracts.

(b) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s short-term debt obligations with floating interest rates. Any changes in the interest rates environment may impact future cost of borrowings. As the Company does not have exposure to any floating-interest bearing assets, or any significant long-term fixed-interest bearing assets, its interest income and related cash inflows are not affected by changes in market interest rates. Moreover, the short-term borrowings of the Company do not have a significant fair value or cash flow interest rate risk due to their short tenure.

ii) Credit risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities, primarily trade receivables and from its financing activities, including deposits with banks and other financial instruments.

The Company is exposed to credit risk in relation to financial guarantee given by the Company on behalf of a related party. The Company''s maximum exposure in this regard is the maximum amount the Company could have to pay if the guarantee is called on 31^st March, 2023 is H 3.99 Crore (PY : H 10.56 Crore). This financial guarantee has been issued to a bank on behalf of the related party. Based on the expectation at the end of the reporting period, the Company considers the likelihood of any claim under guarantee is remote. Company has provided impairment loss allowance of H 0.05 Crore as on 31^st March, 2023 (PY: H 0.05 Crore) based on fair value of the Corporate guarantee given.

The Company extends credit to customers in the normal course of business. Outstanding customer receivables are regularly monitored. The Company has also taken advances and security deposits from its customers, which mitigate the credit risk to an extent. An impairment analysis is performed at each reporting date on an individual basis for major customers.

(b) Deposits with banks and other financial instruments

The Company considers factors such as track record, market reputation and service standards to select the mutual funds for investments and banks with which balances and deposits are maintained. Generally, the balances are maintained with the banks with which the Company has also availed borrowings. The Company does not maintain significant cash balances other than those required for its day to day operations.

iii) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, letters of credit and working capital limits. The Company ensures it has sufficient cash to meet operational needs while maintaining sufficient margin on its undrawn fund based borrowing facilities at all times.

38.2 Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, equity share suspense, securities premium and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company''s capital management is to safeguard continuity, maintain healthy capital ratios in order to support its business and maximise shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The funding requirement is met through equity, internal accruals, long term borrowings and short term borrowings.

I n order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

39(b). Fair valuation techniques

The Company maintains policies and procedures to value financial assets and financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate certain fair values.

(i) The fair values of investment in quoted equity instrument is based on its quoted market price at the reporting date. The fair values of investment in unquoted equity instrument approximates its carrying amount which is the most appropriate estimate of fair value in the absence of recent information to measure fair value.

(ii) The fair values of the mutual funds are based on their published Net Asset Values at the reporting date.

(iii) The fair value of cash and deposits, trade receivables, trade payables and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

(iv) The fair values of derivatives are based on marked to market valuation statements received from banks with whom the Company has entered into the relevant contracts.

Fair Value hierarchy

The following table provides the fair value measurement hierarchy of Company''s asset and liabilities, grouped into Level 1 to Level 3 as described below:

(i) Quoted prices / published NAV (unadjusted) in active markets for identical assets or liabilities (level 1). It includes fair value of financial instruments traded in active markets and are based on quoted market prices at the balance sheet date and financial instruments like mutual funds for which net assets value (NAV) is published by mutual fund operators at the balance sheet date.

(ii) Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2). It includes fair value of the financial instruments that are not traded in an active market (for example, over-the-counter derivatives) and are determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on the company specific estimates. If all significant inputs required to fair value an instrument are observable, then the instrument is included in level 2.

(ii) The Hon''ble Supreme Court vide order dated 29^th August, 2022 has upheld the Order of Hon''ble High Court of Odisha dated 04^th March, 2022 and it was held that the disputed Electricity Duty deposited in No lien/Escrow Account as per directives of Court/Government of Odisha does not amount to actually paid as per provisions of section 43B of the Income Tax Act, 1961 and consequently, upheld the disallowance made on this account by Income Tax Department in earlier years. The Company has accepted the same as a definite liability and necessary adjustments in books are made in the current financial year. The tax expenses on the same are classified as "Earlier Years'' Tax Expenses".

(b) Defined Benefit Plan:

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

The Employees Gratuity Fund Scheme, which is a defined benefit plan, is managed by a trust maintained with Insurance Companies.

The present value of the obligation is determined based on actuarial valuation using Projected Units Credit Method, which recognises each period of service as giving rise to additional units of employees benefit entitlement and measures each unit separately to buildup the final obligation.

The Company provides for gratuity for employees from the date of joining.

The following table sets out the details of amount recognised in the financial statements in respect of employee benefit schemes:

(vii) Risk exposure

These plans are exposed to the actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk.

Investment risk : The present value of the defined benefit plan liability (denominated in Indian Rupee) is calculated using a discount rate which is determined by reference to market yields on government bonds at the end of the reporting period. For other defined benefit plans, the discount rate is determined by reference to market yields at the end of the reporting period on high quality corporate bonds when there is a deep market for such bonds; if the return on plan asset is below this rate, it will create a plan deficit.

Interest risk: A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan assets.

Longevity risk: 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 after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

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

Presentation in the Statement of Profit and Loss, Other Comprehensive Income and Balance Sheet

Gratuity is in the nature of defined benefit plans and re-measurement gains/(losses) on defined benefit plans are shown under OCI as ''Items that will not be reclassified to profit or loss'', including the income tax effect on the same.

Expense for service cost, net interest on net defined benefit liability/(asset) is recognised in the Statement of Profit and Loss.

Ind AS 19 does not require segregation of net defined liability/(asset) into current and non-current, however net defined liability/(asset) is bifurcated into current and non-current portions in the balance sheet, as per Ind AS 1 on "Presentation of Financial Statements".

43. The Company holds 79.2% equity in Utkal Coal Ltd (UCL), an SPV which was allotted the Utkal ''C'' coal block that was subsequently cancelled by the virtue of an order of the Hon''ble Supreme Court. Litigation pertaining to compensation for leased land was dropped after the Central Government reinitiated the auction process, and the Company then filed a petition in the Hon''ble Delhi High Court in March 2020 praying for early determination and payment of compensation. Meanwhile, Utkal ''C'' coal block has been reallotted to a Public Limited Company in the last auction (13^th tranche) and vesting order dated 10^th October, 2022 has already been issued in favour of the said company. Further, UCL has received the compensation of H 20.69 crore towards reimbursement of statutory expenses from Ministry of Coal on 14^th December, 2022. Hence, UCL is hopeful of receiving compensation amount, pending which no accounting adjustments have been made in its books of accounts; therefore, no provision is considered necessary against the Company''s net exposure in UCL as at 31^st March, 2023 amounting to H 111.42 crore equity and H 242.83 crore unsecured loan.

44. In view of the circumstances detailed above in Note No. 43 and considering the probability that the Company will collect the consideration to which it is entitled to, with effect from 1^st October, 2014 the Company had postponed recognition of income from interest on unsecured loan given to UCL. The interest income would be considered as revenue in the year of settlement of compensation.

45. Disputes between the Company and Grid Corporation of Orissa Ltd. ("GRIDCO") relating to the methodology for billing of power drawn during period of grid disturbance etc. were settled in favour of the Company vide a unanimous award of an Arbitral Tribunal dated 23^rd March, 2008, by virtue of which GRIDCO was directed to pay H 57.07 lakh along with interest and

(c) Disclosure in respect of Material Related Party i

Transactions during the year (i.e. more than 10%

of the respective category) :

1. Dividend Paid to B Panda Trust H 34.80 crore (Previous Year : H 16.70 Crore).

2. Dividend received from IMFA Alloys Finlease Limited H 1.84 Crore (Previous Year : H 1.73 Crore).

3. Services Received includes services from UMSL Ltd. H 63.31 Crore. (Previous Year : H 76.95 Crore).

4. Services Rendered includes services to UMSL Ltd.

H 0.15 Crore (Previous Year : H 0.16 Crore).

5. Remuneration includes amount paid to Mr. Baijayant Panda H 13.62 Crore (Previous Year :

H 20.41 crore), Mr. Subhrakant Panda H 14.47 Crore (Previous Year : H 21.10 crore), Mr. Chitta Ranjan Ray H 0.82 Crore (Previous Year : H 0.96 crore),

Mr. Prem Khandelwal H 1.77 Crore (Previous Year : H 1.05 crore) and Mr. Bijayananda Mohapatra H 1.57 Crore (Previous Year : H 0.28 Crore).

6. Donations includes amount given to Bansidhar & Ila Panda Foundation H 5.11 Crore (Previous year : H 9.23 Crore) and Indian Metals and Public Charitable Trust H 0.64 Crore (Previous Year :

H 0.80 Crore).

7. Corporate Social Responsibility Expenses include amount given to Bansidhar & Ila Panda Foundation of H 16.24 Crore. (Previous year :

H 1.76 crore).

8. Lease rentals paid to IMFA Alloys Finlease Limited amounted H 3.96 Crore (Previous year :

H 3.96 Crore).

9. Other Income from UMSL Ltd. H 2.10 Crore (Previous Year : Nil).

10 Sale of Property, Plant and Equipment includes sale of land and building to Esquire Realtors Pvt.

Ltd H 2.78 Crore (Previous Year: NIL) and sale of land to Bansidhar & Ila Panda Foundation H 1.33 Crore (Previous Year: NIL).

11. Loan given includes amount paid to Utkal Coal Limited H 0.16 crore (Previous Year : H 0.14 Crore).

12. Loan repayment received includes amount from Utkal Coal Limited H 20.69 Crore (Previous Year : Nil).

13. Guarantee provided to Bank for loan availed by Bansidhar & Ila Panda Foundation for Loan availed H 3.99 Crore (Previous Year : H 10.16 Crore).

H 30 lakh towards costs. Subsequently, GRIDCO filed a petition before the District Judge, Bhubaneswar objecting the award and obtained an interim stay on the operation of the said award. The Company filed it''s objection thereto on 19^th February, 2009 and the Court of the District Judge, Bhubaneswar pronounced judgement dated 8^th January, 2018 in favour of the Company dismissing the petition filed by GRIDCO. Subsequently, GRIDCO filed an appeal before Hon''ble High Court of Orissa challenging the award, which is pending.

46. The Company has arrived at an out of Court settlement in a long pending arbitration matter and related legal proceedings pertaining to a conversion contract with Tata Steel Ltd (erstwhile TISCO). The Settlement Agreement dated 31^st October, 2022 has been signed and the Company has received an amount of H 42.36 crore against a net receivable of H 5.95 crore. Pursuant to the said Settlement Agreement, a Joint Settlement Petition has also been filed in the pending matter before Hon''ble High Court at Calcutta and vide order dated 16^th November, 2022, the matter is disposed of in terms of the said Settlement Agreement.

47. Pursuant to the various orders of Hon''ble High Court/ directives of Government of Odisha, the Company was paying electricity duty @ 6 paisa & keeping the differential duty @ 14 paisa till September, 2015 in an earmarked bank fixed deposit account. However, on the principles of prudence, the entire duty liability @ 20 paisa per unit till September, 2015 was provided in the books of accounts. Subsequently, the Department of Energy, Government of Odisha vide Notification No. 8309 dated 1^st October 2015, amended the rate of Electricity Duty for a Captive Power Generator at par with that of a Licensee and the Company continues to pay the applicable duty as notified from time to time.

The Department of Energy, Government of Odisha vide resolution No. ENG-BUD-ED-0005-2019/11797 dtd. 30^th November, 2022 had announced a One Time Settlement (OTS) scheme for arrear electricity duty

and interest in respect of consumers who generate energy for their own use or consumption (Captive Consumption). The Company opted for the said OTS scheme and the arrears have been settled in terms of Form V (Statement of Settlement of Arrears dtd. 06^th April, 2023) issued by Government of Odisha. Also, the Civil Appeal pending before Hon''ble Supreme Court has been disposed of vide order dated 14.03.2023. The net demand arised out of settlement order was already provided in the books of accounts. However, according to the operational guidelines of OTS, the Company has provided for the differential interest on electricity duty payable amounting to H 52.11 Crore in the current year which is classified as Exceptional Item.

48. TThe Company had filed a petition before the Hon''ble Orissa High Court under Section 392 of the Companies Act, 1956 to modify the Scheme of Arrangement & Amalgamation and to confirm the reduction of share capital by cancellation of 3,49,466 equity shares of H 10/- each held by erstwhile ''ICCL Shareholders Trust''. The petition was approved by the Hon''ble High Court vide its order dated 16^th March, 2011 and registered with the Registrar of Companies (ROC), Orissa on 1^st April, 2011. Accordingly, the paid up equity share capital reduced from H 26,32,65,190/-divided into 2,63,26,519 equity shares of H 10/- each to H 25,97,70,530/- divided into 2,59,77,053 equity shares of H 10/- each. Subsequently, several shareholders challenged the reduction of share capital before a Division Bench of the Hon''ble High Court which, vide its judgment dated 19^th July, 2011, directed the Company, inter alia, to restore the aforesaid shares to the Trust and allot it to interested shareholders. The Company then moved the Hon''ble Supreme Court which issued notice in the matter and granted interim stay on the subscription or cancellation of the said 3,49,466 shares.

49. As per Ind AS 108 on "Operating Segments", segment information has been provided under the Notes to Consolidated Financial Statements as Note No. 36.

(ii) Trade receivables and Contract Balances

The company classifies the right to consideration in exchange for deliverables as receivable.

The balances of trade receivables and advance from customers at the beginning and end of the reporting period have been disclosed at note no 11 & 26 respectively.

The revenue recognised during the year ended 31^st March, 2023 includes revenue against advances from customers amounting to H 0.24 Crores at the beginning of the year. (Previous Year: H 1.50 Crores).

(iii) Performance obligations and remaining performance obligations

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognised as at the end of the reporting period and the explanation as to when the Company expects to recognise these amounts in revenue.

The aggregate value of performance obligations that are completely or partially unsatisfied as at 31^st March, 2023 is Nil.

Rental expenses recorded as short-term leases under Ind AS 116, during the year ended 31^st March, 2023 is H 12.67 crore. (Previous year : H 11.13 crore).

The incremental borrowing rate of 8.75% p.a. to 10.15% p.a. has been applied to lease liabilities recognised in the Standalone Balance Sheet.

Total cash outflow for leases of H 18.94 Crore and H 18.25 Crore for the year ended 31^st March, 2023 and 2022 respectively including cash outflow for short term and low value lease.

Rental Income on the assets given on operating lease is H 1.94 Crore (Previous year: H 2.31 Crore).

59. The Parliament of India has approved the Code of Social Security, 2020 (the Code) which may impact the contributions by the company towards provident fund, gratuity and ESIC. The Code has been published in the Gazette of India however, the effective date has not yet been notified. 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, if any.

60. The Board of Directors of the Company has declared interim dividend of H 5/- per share (face value of H 10/-each) for the financial year 2022-23 in its meeting held on 27^th October, 2022. The Board of Directors of the Company have proposed final dividend of H 5/- per share (face value of H 10/- each) for the financial year 2022-23 in its meeting held on 30^th May, 2023.

61. Other Statutory Information:

(i) The Company does not have Benami Property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company has not traded or invested in crypto currency or virtual currency during the financial year.

(iii) The Company has not advances or loaned or invested funds in 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 person(s) or entity(ies) 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

(iv) The Company has not received any funds from any person(s) or entity(ies), including foreign entities(Funding Party) with the understanding(whether recorded in writing or otherwise) the Company shall:

(a) Directly or indirectly lend or invest in other person(s) or entity(ies) identified in any manner whatsoever by or on behalf of the Funding Party Company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

(v) 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, survey or any other relevant provisions of the Income Tax Act, 1961

(vi) The Company has filed all the required quarterly return statements of Current assets with the bank as per covenants of the Sanction of Workings Capital Limit which are in agreement with the books of accounts and there are no material discrepancies in the same.

62. Subsequent Events

There are no other material adjusting or non-adjusting subsequent events, except as already disclosed.

63. Previous year/period figures have been regrouped/ rearranged, wherever considered necessary, to make them comparable with those of current year.

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Mar 31, 2022

Rights of Equity Shareholders

1. The Company has one class of equity shares having a par value of '' 5 per share. Each shareholder is eligible for one vote per share held.

2. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

3. In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

B. Nature and purpose of reserves

a) Capital Reserve on Amalgmation : During business combination, the excess of net assets taken over the cost of consideration paid is treated as capital reserve.

b) General Reserve : The General reserve is created by way of transfer of profits from retained earnings for appropriation purposes. This reserve is utilised in accordance with the provisions of the Act

Retained Earnings : Retained earnings are the profits that the Company has earned till date, less any transfer to general reserve, dividends or other distribution paid to shareholder.

Items of other Comprehensive income : Difference between the interest income on plan assets and the return actually achieved, and any changes in the liabilities over the year due to changes in acturial assumtions or experience adjustment within the plans, are recognised in ''Other Comprehensive income'' and subsequently not reclassified to the Statement of Profit and Loss.

36 Contingent liabilities and commitments (to the extent not provided for)		INR (In Lakh)
Particulars	2021-22	2020-21
Contingent Liabilities
Claims against the Company not acknowledged as debts in respect of:-
- Disputed Labour Claims	9.96	9.96
Where Company is in appeal
- Disputed Excise Duty Matters	13.78	13.78
- Disputed Income Tax Matters	429.35	609.16
Where Department is in appeal
- Disputed Sales Tax Matters	459.65	459.65
- Disputed Income Tax Matters	54.83	54.83
Total	967.57	1,147.38

The Company''s pending litigations comprise of claims against the Company and proceedings pending with Tax and other Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements the Company does not reasonably expect the outcome of these proceedings to have a material impact on its financial statements.

37 Commitments
A. Capital expenditure contracted for at the end of the reporting period but not recognized as liabilities is as follows: INR (In Lakh)
Particulars	As on 31-Mar-2022	As on 31-Mar-2021
Property, plant and equipment	1,315.16	1,000.32
Less: Capital advances	(345.71)	(57.73)
Net Capital commitments	969.45	942.59

39 Financial risk management objectives and policies

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the Managing Board.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits , foreign currency receivables, payables and loans and borrowings.

The Company''s market risk is manage by Senior Management, who evaluates and exercises independent control over the entire process of market risk management. The Senior Management recommend risk management objectives and policies, which are approved by the Audit Committee. The activities of Senior Management include management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing strategies and ensuring compliance with market risk limits and policies.

i. Market Risk- Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

ii. Market Risk- Foreign currency risk.

The Company operates internationally and portion of the business is transacted in several currencies and consequently the Company is exposed to foreign exchange risk through its sales and services in overseas and purchases from overseas suppliers in various foreign currencies. Foreign currency exchange rate exposure is partly balanced by purchasing of goods, commodities and services in the respective currencies.

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligations,

iv) Significant increase in credit risk on other financial instruments of the same counterparty,

v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements .

Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized in profit or loss.

iii. Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assess financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business,

ii) Actual or expected significant changes in the operating results of the counterparty,

Concentration Risk Disclosure

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment

The Company had three (P.Y. three) customers whose revenue individually represented 10% or more of the Company''s total revenue, or whose accounts receivable balances individually represented 10% or more of the Company''s total accounts receivable, as follows:

iv. Liquidity Risk

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the companies short - term, medium term and long term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and by maturing the profiles of assets and liabilities.

Impact of COVID-19

The Company has considered the possible impact of COVID-19, inter-alia, readability of inventories and recoverability of Trade receivables, in preparation of the financial statement. The impact of the global health pandemic may be different from that estimated as at the date of approval of financial statement. Considering the continuing uncertainties, the Company will continue to closely monitor any material changes to future economic conditions.

40 Fair Value measurement

Financial Instrument by category and hierarchy

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

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

1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

The fair values for loans, security deposits were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counter party credit risk.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

42 LEASES

Under Ind AS 116, the nature of expenses in respect of operating leases has changed from “lease rent” to “depreciation cost” and ‘''finance cost'''' for the right-to-use assets and for interest accrued on lease liability respectively

The weighted average lessee''s incremental borrowing rate applied to the lease liabilities is 9%.

The sensitivity analysis above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the same method used to calculate the liability recognised in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period.

47 Operating segment

The Company is engaged in the business of manufacture of Fine Chemicals, considering its business activities primarily operated within India and reviewed by the Chairman and Managing Director to make decisions about resources to be allocated to the segment and assess its Performance. Accordingly, the Company has only one business segment.

II. COMPENSATED ABSENCES:

The Company permits encashment of compensated absence accumulated by their employees on retirement, separation and during the course of service. The liability in respect of the Company, for outstanding balance of leave at the balance sheet date is determined and provided on the basis of actuarial valuation as at the balance sheet date performed by an independent actuary. The Company doesn''t maintain any plan assets to fund its obligation towards compensated absences. Compensented absences write back for the year is '' 18.22 lakhs and charged to the statement of profit and loss for the prevoius year is '' 94.30 lakhs.

44 Capital risk management

The Company''s objectives when managing capital are to

> safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

> maintain an optimal capital structure to reduce the cost of capital

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt

The Company''s strategy is to maintain a minimum gearing ratio. The gearing ratios were as follows:

48 Impairment testing of Goodwill on Amalgamation

Goodwill on amalgamation of '' 4497.72 Lakh is relating to the merged business of its fragrance and flavours division (‘CGU''). Goodwill is not amortised, instead it is tested for impairment annually or more frequently if indicators of impairment exist. The recoverable amount is determined based on value-in-use calculation which require the use of certain assumptions. The calculation use cash flow projections based on management approved cash flow projections for the 3-5 years period. Cash flow post that is extrapolated using the estimated growth rates.

As a result of impairment test for the year ended 31^st March 2022, no goodwill impairment was identified as the fair value of the CGU to whom goodwill is relating to exceed their respective carrying amount. An analysis of the sensitivity of the changes in key parameters (cash flows, Discount rate and Long term average growth rate), based on reasonable probable assumptions, did not result in any probable scenario in which the recoverable amount of the CGU would decrease below the carrying amount.

Key assumption used as at March 31, 2022 and March 31, 2021

Discount rate - 11.5% (P.Y. 11.5%)

Terminal Growth rate - 5% (P.Y. 5%)"

50 Fire Insurance Claim

Other non-operative Income for year ended March 31, 2022, includes '' 190.56 lakhs being the amount of insurance claim in respect of fire at Bareilly plant in 2019.

51 Relationship with Struck Off companies

The Company has not entered into transaction with struck off companies under Section 248 of the Companies Act, 2013.

52 a) No proceeding has been initiated or pending against the Company for holding any Benami property under the Benami Transactions

(Prohibition) Act, 1988, as amended, and rules made thereunder.

b) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

d) There were no transactions relating to previously unrecorded income that have been surrendered and disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

e) The Company has not advanced or loaned to or invested in funds to any other person(s) or entity(is), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) directly or indirectly lend to or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

f) The Company has not received any fund from any person(s) or entity(is), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(i) directly or indirectly lend to or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

g) The Company has not been declared wilful defaulter by any bank or financial Institution or other lender.

53 The Board of Directors has not recommended any further Dividend on equity Shares for the Financial Year 2021-22. The Interim Dividend of '' 2.50 per equity share declared and paid ( '' 841.47 lakh) shall be considered as Final Dividend for the Financial Year 2021-22.

54 The Standalone Financial Statements have been approved by the Board of Directors in its meeting held on 10^th May, 2022.

55 The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment benefits has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code and recognise the same when the Code becomes effective.

56 The previous year''s figures have been re-grouped / re-classified wherever required to conform to current year''s classification. All figures of financials has been rounded off to nearest lakh rupees.

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Mar 31, 2019

1. Financial risk management

40.1 Financial risk factors

The Company’s principal financial liabilities comprise of borrowings, trade and other payables. The main purpose of these financial liabilities is to manage finances for the Company’s operations. The Company’s principal financial assets include loans and advances, investment in equity instruments and mutual funds, trade receivables and cash and bank balances that arise directly from its operations. The Company also enters into derivative transactions to hedge foreign currency and interest rate risks and not for speculative purposes. The Company is exposed to market risk, credit risk and liquidity risk and the Company’s senior management oversees the management of these risks.

i) Market risk

Market risk is the risk that the fair value of future cash flows of a financial asset will fluctuate because of changes in market prices. The Company’s activities expose it to a variety of financial risks, including the effects of changes in foreign currency exchange rates and interest rates.

(a) Currency risk

Foreign currency risk is the risk that fair value of future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities. The Company has obtained foreign currency loans and has foreign currency trade payables and receivables and is therefore, exposed to a foreign exchange risk. For mitigating exposure to foreign exchange risk, the Company adopts a policy of selective hedging based on the risk perception of the management. The Company has entered into foreign currency forward contracts and cross currency swap contracts.

The following table demonstrates the sensitivity in the USD to the Indian Rupee and the resulting impact on the Company’s Profit before tax, due to changes in the fair value of monetary assets and liabilities :

(b) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates. Any changes in the interest rates environment may impact future cost of borrowings. To manage this, the Company has entered into interest rate swap contracts, in which it agrees to exchange, at specific intervals, the difference between fixed and variable interest amounts calculated by reference to an agreed upon principal amount.

The following table demonstrates the fixed and floating rate borrowings of the Company:

ii) Credit risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities, primarily trade receivables and from its financing activities, including deposits with banks and other financial instruments.

(a) Trade receivables

The Company extends credit to customers in the normal course of business. Outstanding customer receivables are regularly monitored. The Company has also taken advances and security deposits from its customers, which mitigate the credit risk to an extent. An impairment analysis is performed at each reporting date on an individual basis for major customers.

(b) Deposits with banks and other financial instruments

The Company considers factors such as track record, market reputation and service standards to select the mutual funds for investments and banks with which balances and deposits are maintained. Generally, the balances are maintained with the banks with which the Company has also availed borrowings. The Company does not maintain significant cash balances other than those required for its day to day operations.

iii) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, letter of credit and working capital limits. The Company ensures it has sufficient cash to meet operational needs while maintaining sufficient margin on its undrawn borrowing facilities at all times.

The Company had access to the following undrawn borrowing facilities at the end of the reporting period:

Subject to the continuance of satisfactory credit ratings, the bank facilities may be drawn upon at any time. Average maturity of undrawn facilities of term loans expiring beyond one year is Nil (As at 31st March, 2018: 4.25 years).

40.2 Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital, equity share suspense, securities premium and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company’s capital management is to safeguard continuity, maintain healthy capital ratios in order to support its business and maximize shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The funding requirement is met through equity, internal accruals, long term borrowings and short term borrowings.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

2. Fair value of Financial Assets and Liabilities

Set out below is a comparison by class of the carrying amounts and fair value of the Company''s financial instruments that are recognized in the financial statements.

Fair valuation techniques

The Company maintains policies and procedures to value financial assets and financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate certain fair values:

i) The fair values of investment in quoted equity instrument is based on its quoted market price at the reporting date. The fair values of investment in unquoted equity instrument approximates its carrying amount which is the most appropriate estimate of fair value in the absence of recent information to measure fair value.

ii) The fair values of the mutual funds are based on their published Net Asset Values at the reporting date.

iii) The fair value of cash and deposits, trade receivables, trade payables and other current financial assets and liabilities approximate their carrying amounts largely due to the short- term maturities of these instruments.

iv) The fair values of derivatives are based on marked to market valuation statements received from banks with whom the Company has entered into the relevant contracts.

Fair Value hierarchy

The following table provides the fair value measurement hierarchy of Company’s asset and liabilities, grouped into Level 1 to Level 3 as described below:

i) Quoted prices / published NAV (unadjusted) in active markets for identical assets or liabilities (level 1). It includes fair value of financial instruments traded in active markets and are based on quoted market prices at the balance sheet date and financial instruments like mutual funds for which net assets value (NAV) is published by mutual fund operators at the balance sheet date.

ii) Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2). It includes fair value of the financial instruments that are not traded in an active market (for example, over-the-counter derivatives) and are determined by using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on the company specific estimates. If all significant inputs required to fair value an instrument are observable, then the instrument is included in level 2.

iii) Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3). If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

During the year ended 31st March, 2019 and 31st March, 2018, there were no transfers between Level 1 and Level 2 fair value measurements and no transfer into and out of Level 3 fair value measurements. There is no transaction / balance under Level 3.

Following table describes the valuation techniques used and key inputs to valuation for level 2 of the fair value hierarchy, as at 31st March, 2019 and 31st March, 2018 :

(b) Defined Benefit Plan:

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

The Employees Gratuity Fund Scheme, which is a defined benefit plan, is managed by a trust maintained with Life Insurance Corporation of India (LIC). The Employees Leave Encashment Scheme, which Is a defined benefit plan Is unfunded.

The present value of the obligation is determined based on actuarial valuation using Projected Units Credit Method, which recognizes each period of service as giving rise to additional units of employees benefit entitlement and measures each unit separately to build up the final obligation.

The following table sets out the details of amount recognized in the financial statements in respect of employee benefit schemes:

Note : In the absence of detailed information regarding plan assets which is funded with Life Insurance Corporation of India, the composition of each major category of plan assets, the percentage and amount for each category of the fair value of plan assets has not been disclosed.

(vii) Risk exposure

These plans are exposed to the actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk.

Investment risk : The present value of the defined benefit plan liability (denominated in Indian Rupee) is calculated using a discount rate which is determined by reference to market yields on government bonds at the end of the reporting period. For other defined benefit plans, the discount rate is determined by reference to market yields at the end of the reporting period on high quality corporate bonds when there is a deep market for such bonds; if the return on plan asset is below this rate, it will create a plan deficit.

Interest risk : A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan assets.

Longevity risk: 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 after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

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

Presentation in the Statement of Profit and Loss, Other Comprehensive Income and Balance Sheet

Gratuity and leave encashment benefits are in the nature of defined benefit plans and re-measurement gains/(losses) on defined benefit plans are shown under OCI as ‘Items that will not be reclassified to profit or loss’, including the income tax effect on the same.

Expense for service cost, net interest on net defined benefit liability/(asset) is recognized in the Statement of Profit and Loss.

I nd AS 19 does not require segregation of net defined liability/(asset) into current and non-current, however net defined liability/(asset) is bifurcated into current and non-current portions in the balance sheet, as per Ind AS 1 on “Presentation of Financial Statements”.

(a) Names of Related Parties :

(i) Subsidiaries Country of Origin

1 Utkal Power Ltd. India

2 Utkal Coal Ltd. India

3 IMFA Alloys Finlease Ltd. India

4 Utkal Green Energy Ltd. India

5 Indmet Mining Pte Ltd. Singapore

6 PT. Sumber Rahayu Indah [Subsidiary of Indmet Mining Pte. Ltd] Indonesia

(ii) Associate Country of Origin Ferro Chrome Producers Association (registered under Section 8 of the Act) India

(iii) Key Management Personnel (KMP)

Name Designation

1 Major Rabinarayan Misra (Retd) (w.e.f 3rd January, 2019) Chairman - Independent Non-Executive Director

2 Mr. Baijayant Panda Vice Chairman - Non-Independent Executive Director

3 Mr. Subhrakant Panda Managing Director - Non-Independent Executive ________________________________________________Director_

4 Mr. Jayant Kumar Misra Director (Corporate) & COO - Non-Independent ________________________________________________Executive Director_

5 Mr. Chitta Ranjan Ray Whole-time Director - Non-Independent Executive ________________________________________________Director_

6 Mr. D Bandyopadyay (upto 25th July, 2018) Independent Non-Executive Director

7 Mr. Nalini Ranjan Mohanty Independent Non-Executive Director

8 Mr. Sudhir Prakash Mathur Independent Non-Executive Director

9 General Shankar Roychoudhury (Retd.) Independent Non-Executive Director

10 Mr. Santosh Nautiyal (upto 30th November, 2018) Independent Non-Executive Director

11 Mr. Bijoy Kumar Das Independent Non-Executive Director

12 Mrs. Paramita Mahapatra Non-Independent Non-Executive Director

13 Mr. Stefan Georg Amrein Non-Independent Non-Executive Director

14 Mr. Prem Khandelwal CFO & Company Secretary

(iv) Close family members of KMP

1 Late Dr. Bansidhar Panda - Upto 21st May, 2018 - Father of Mr. Baijayant

________Pond^_ondMI.-Sub^lLokont_Pond^_____________________

2 Mrs. Jagi Mangat Panda - Wife of Mr. Baijayant Panda.

3 Mrs. Shaifalika Panda - Wife of Mr. Subhrakant Panda.

4 Mrs. Nivedita Ganapathi - Daughter of Late Dr. Bansidhar Panda and sister of

________MJLBoijoyanl_Ponda_ondMLSubhrako^LPondo.._____________

5 Mr. Rajen Mahapatra - Husband of Mrs. Paramita Mahapatra

(v) Other entities with whom transactions have taken place during the year ____1 UMSL Ltd.____________________

2 Esquire Realtors Pvt. Ltd.

3 Kishangarh Environmental Development Action Pvt. Ltd.

4 Ortel Communications Ltd.

5 Odisha Television Ltd

6.Entities controlled or jointly controlled or under

7 Ruta Trust significant influence of KMP and / or close

8. nsidharJ&IlaPondoF0Ufamily members of KMP

9 Utkal Charitable Trust

10 Indian Metals Public Charitable Trust

11 Raila Enterprises Pvt. Ltd.

12 Orissa Coal and Services Pvt. Ltd.

13 Barabati Realtors Pvt. Ltd.

1. Investment in 1,00,00,000 Non-Convertible Redeemable Cumulative Preference Shares of Rs, 10/- each fully paid up amounting to Rs, 10 crore (Previous Year: Nil) in Ortel Communications Ltd.

2. Dividend received from IMFA Alloys Finlease Ltd. Rs, 1.09 crore (Previous Year : Rs, 1.38 crore).

3. Sale of Goods to Bansidhar & Ila Panda Foundation Rs, 0.22 crore (Previous Year : Rs, 0.05 crore).

4. Services Received includes services from UMSL Ltd. Rs, 85.21 crore (Previous Year : Rs, 114.08 crore).

5. Services Rendered includes services to UMSL Ltd. Rs, 0.15 crore (Previous Year : Rs, 0.15 crore).

6. Remuneration (including commission) includes amount paid to Late Dr. Banshidhar Panda Nil (Previous Year: Rs, 1.75 crore) Mr. Baijyant Panda Rs, 2.01 crore (Previous Year : Rs, 6.05 crore), Mr. Subhrakant Panda Rs, 2.38 crore (Previous Year : Rs, 6.34 crore), Mr. Jayant Kumar Misra Rs, 1.17 crore (Previous Year : Rs, 1.17 crore), Mr. Chitta Ranjan Ray Rs, 0.70 crore (Previous Year : Rs, 0.72 crore) and Mr. Prem Khandelwal Rs, 0.84 crore (Previous Year : Rs, 0.83 crore), Major Rabinarayan Misra Rs, 0.04 crore (Previous Year: Rs, 0.14 crore), Mr. D Bandyopadhyay Rs, 0.04 crore (Previous Year : Rs, 0.14 crore, Mr. Nalini Ranjan Mohanty Rs, 0.04 crore (Previous Year : Rs, 0.14 crore), Mr. Sudhir Prakash Mathur Rs, 0.04 crore (Previous Year : Rs, 0.13 crore), General Shankar Roychoudhury Rs, 0.03 crore (Previous Year: Rs, 0.13 crore), Mr. Santosh Nautiyal Rs, 0.03 crore (Previous Year: Rs, 0.13 crore) and Mr. Bijoy Kumar Das Rs, 0.03 crore (Previous Year: Rs, 0.13 crore).

7. Donations includes amount given to Bansidhar & Ila Panda Foundation of Rs, 3.49 crore (Previous Year : Nil) and Indian Metals and Public Charitable Trust Rs, 0.35 crore (Previous Year : Nil).

8. Corporate Social Responsibility Expenses include amount given to Bansidhar & Ila Panda Foundation of Rs, 3.81 crore (Previous Year : 2.76 crore) and Indian Metals Public Charitable Trust Nil (Previous Year : Rs, 0.35 crore).

9. Lease rentals paid to IMFA Alloys Finlease Limited Rs, 4.29 crore (Previous Year : Rs, 4.19 crore).

10. Loan given to Utkal Coal Limited Rs, 0.35 crore (Previous Year : Rs, 0.49 crore).

11. Loan repayment received includes amount from Utkal Coal Limited Rs, 0.03 crore (Previous Year : Rs, 0.15 crore) and Utkal Power Limited Nil (Previous Year: Rs, 0.97 crore).

12. Guarantee provided to Bank for loan availed by Bansidhar & Ila Panda Foundation Rs, 10.73 crore (Previous Year: Rs, 4.21 crore).

The amounts disclose in the table are the amounts recognized as an expense during the reporting period.

e) The remuneration paid by the Company to its directors during the year is in accordance with the provisions of Section 197 of the Act,. Further, the remuneration paid by the Company to it directors during the year is in excess of the limits laid down under sub-section 1 of Section 197 of the Act by Rs, 1.25 crore, for which requisite approval in accordance with the said Section read with Schedule V to the Act has been obtained by the Company.

3. The Hon’ble Supreme Court of India vide judgment dated 25th August, 2014 read with its order dated 24th September, 2014 cancelled the allocation of coal blocks to various companies, including the ‘Utkal C’ coal block held by Utkal Coal Ltd. (‘UCL’), an SPV in which the Company holds 79.2% equity. Subsequently, on 21st October, 2014, The Coal Mines (Special Provisions) Ordinance, 2014 was promulgated to facilitate, inter alia, auction of coal blocks and compensation to a prior allottee of a coal block. To give continuity to the provisions of the said Ordinance and save the actions taken thereunder, on 26th December, 2014, The Coal Mines (Special Provisions) Second Ordinance, 2014 was promulgated, which was deemed to have come into force on 21st October, 2014 and the earlier Ordinance stood repealed. Subsequently, the Coal Mines (Special Provisions) Act, 2015 was enacted on 30th March, 2015 which was deemed to have come into force on 21st October, 2014, repealing the second Ordinance. Further, the Ministry of Coal issued orders dated 18th December, 2014 and 6th January, 2015 to initiate the auction process and change the end use of ‘Utkal C’ from captive use (non-regulated sector) to independent power producer (regulated sector). Aggrieved by the above actions of the government, on 13th February, 2015 UCL filed a Writ Petition before the Hon’ble High Court of Delhi challenging, inter alia, the said orders. The judgment in respect of this Writ Petition was delivered on 5th October, 2016 not granting any relief to UCL which, aggrieved, filed a Special Leave Petition on (‘SLP’) 11th January, 2017 before the Hon’ble Supreme Court challenging the above order dated 5th October, 2016. During the year ended 31st March, 2019, the SLP was withdrawn by UCL after the Central Government issued orders for the auction process of Utkal ‘C’ block along with five other blocks to be allotted to Government Companies.

UCL had also filed a separate Writ Petition before the Hon’ble High Court of Delhi on 23rd February, 2015 challenging the basis of valuation of compensation and the restrictive interpretation of ‘Mine Infrastructure’. The judgment was delivered on 9th March, 2017 considering leasehold land [under Coal Bearing Areas (Acquisition and Development) Act, 1957] to be under Mines Infrastructure and not under Freehold Land category for the purpose of compensation. Aggrieved, UCL filed a SLP on 15th May, 2017, before the Hon’ble Supreme Court challenging the aforesaid order. During the year ended 31st March, 2019, the SLP was withdrawan by UCL.

Ministry of Coal vide its letter to UCL dated 2nd April, 2019 to UCL had again sought for the details of investments in UCL’s coal block for valuation of compensation. Hence, UCL is hopeful of an amicable resolution of the said compensation matter with Government of India, pending which, no accounting adjustments have been made by UCL in it’s books of account and no provision is deemed necessary against the Company’s net exposure in UCL as at 31st March, 2019 amounting to Rs, 111.42 crore invested as equity and Rs, 263.48 crore given as unsecured loan.

4. In view of the circumstances detailed above in Note No.46 and considering the probability of economic benefit associated with transaction flowing to the Company, with effect from 1st October, 2014 the Company postponed recognition of income from interest on unsecured loan given to UCL. Due to this, profit before tax for the year ended 31st March, 2019 is lower by Rs, 35.43 crore (Previous Year : Rs, 40.72 crore). The interest income would be considered as revenue of the period in which it is properly recognized.

5. Disputes between the Company and Grid Corporation of Orissa Ltd. (“GRIDCO”) relating to methodology for billing of power, wheeling of power, back-up power drawn during period of grid disturbance etc. were settled in favour of the Company vide a unanimous award of an Arbitral Tribunal dated 23rd March, 2008, by virtue of which GRIDCO was directed to pay Rs, 57.07 lakh along with interest and Rs, 30 lakh towards costs. Subsequently, GRIDCO filed a petition before the District Judge, Bhubaneswar objecting the award and obtained an interim stay on the operation of the said award. The Company filed it’s objection thereto on 19th February, 2009 and the Court of the District Judge, Bhubaneswar pronounced judgment dated 8th January, 2018 in favour of the Company dismissing the petition filed by GRIDCO. Subsequently, GRIDCO filed an appeal before Hon’ble High Court of Odisha challenging the award, which is pending.

6. In the arbitration proceedings relating to a party’s conversion contract, an interim award was passed on 9th January, 2003 upholding issues in the Company’s favour, without quantification of the amount payable to the Company towards it’s various claims of losses/damages, which is to be determined by the appointment of a Chartered Accountant or other expert. The Party filed a petition before the Hon’ble High Court at Calcutta on 4th February, 2004 praying to set aside the interim award and the Company filed its objection thereto. The matter is pending before the Hon’ble High Court at Calcutta.

7. Pursuant to the order of Hon’ble Orissa High Court dated 21st April, 2005, the Company was paying electricity duty at 6 paise per unit to the Govt. of Orissa and keeping the differential duty of 14 paise per unit in a separate ‘no lien account’ till final disposal of it’s writ petition. The Hon’ble Orissa High Court disposed the said writ petition vide judgment dated 6th May, 2010 by directing the Company to deposit the differential amount of duty lying in no lien account with the State Exchequer. The Company preferred an appeal before the Hon’ble Supreme Court of India against the judgment of Orissa High Court. The Hon’ble Supreme Court vide its order dated 7th February, 2011 directed the company to continue the payment in the same manner but to deposit the differential amount of 14 paise per unit in an Escrow account instead of ‘no lien account’ till final disposal of the appeal. Accordingly, the Company paid the balance

14 paise per unit in an escrow account (non-interest bearing current account) with State Bank of India from January, 2011. Subsequently, based on a direction received on 9th January, 2015 from Govt. of Odisha, the Company kept the Escrow amount in an interest bearing fixed deposit linked to escrow current account with effect from 21st March, 2015.

On the principles of prudence, the Company fully provided for Electricity Duty @ 20 paise per unit in it’s books of account, on accrual basis till September, 2015. Subsequent to the Department of Energy, Govt. of Odisha’s Notification No. 8309 dated 1st October 2015, wherein the amended rate of Electricity Duty for a Captive Power Generator was specified at par with that of a Licensee, the Company is paying the applicable duty @ 30 paise per unit to the Govt. of Odisha with effect from October, 2015. Further, Department of Energy, Govt of Odisha vide notification No. 3442 dated 12th May, 2017 has enhanced the rate of Electricity Duty from 30 paise to 55 paise per unit for a Captive Power Generator and the Company continues to pay the enhanced duty.

8. The Company had filed a petition before the Hon’ble Orissa High Court under Section 392 of the Companies Act, 1956 to modify the Scheme of Arrangement & Amalgamation and confirm the reduction of share capital by cancellation of 3,49,466 equity shares of '' 10/- each held by erstwhile ‘ICCL Shareholders Trust’. The petition was approved by the Hon’ble High Court vide its order dated 16th March, 2011 and registered with the Registrar of Companies (ROC), Orissa on 1st April, 2011. Accordingly, the paid up equity share capital reduced from '' 26,32,65,190/- divided into 2,63,26,519 equity shares of '' 10/- each to '' 25,97,70,530/- divided into 2,59,77,053 equity shares of '' 10/- each. Subsequently, several shareholders challenged the reduction of share capital before a Division Bench of the Hon’ble High Court which, vide its judgment dated 19th July, 2011, directed the Company, inter-alia, to restore the aforesaid shares to the Trust and allot it to interested shareholders. The Company then moved the Hon’ble Supreme Court which issued notice in the matter and granted interim stay on the subscription or cancellation of the said 3,49,466 shares.

The Hon’ble Supreme Court, vide order dated 25th October, 2018 referred the parties to mediation by Justice A.P Shah, a retired Justice of the Hon’ble Delhi High Court, to have a detailed look into the matter and submit a report to the Hon’ble Supreme Court. Subsequently, Justice A.P Shah filed his report dated 1st April, 2019 before the Hon’ble Supreme Court, along with the settlement agreement dated 30th March, 2019 signed by the parties pursuant to which the Company made a payment of '' 0.55 crore towards settlement of the said matter(included under ‘Other Expenses’). Final order from the Hon’ble Supreme Court is awaited.

9. As per Ind AS 108 on “Operating Segments”, segment information has been provided under the Notes to Consolidated Financial Statements, as Note No. 39

10. Amalgamation of Indian Metals and Carbide Limited (‘IMCL’) and B. Panda and Company Private Limited (‘BPCO’) into the Company

The Hon’ble National Company Law Tribunal (“”NCLT””), Cuttack Bench vide its Order dated 26th March, 2019, approved the Scheme of Amalgamation made under Section 230 to 232 and other applicable provisions of the Companies Act, 2013 (“”the Scheme””) involving amalgamation of (a) IMCL, a wholly owned subsidiary of the Company and (b) BPCO, the holding company of the Company, into the Company. The Scheme was approved by the Board of Directors of the Company on 28th September, 2017. Consequent to the filing of a certified copy of the said Order with the Registrar of Companies, Cuttack on 30th April, 2019, the Scheme has become effective from the Appointed Date i.e. 1st April, 2017. Upon the Scheme coming into effect, the undertakings of IMCL and BPCO stand transferred to and vested in the Company with effect from the Appointed Date and the Scheme has accordingly been given effect to in these financial statements.

As this is a business combination of entities under common control, the amalgamation has been accounted for using the ‘Pooling of interests’ method (in accordance with the approved Scheme) as envisaged in Appendix C of Ind AS 103 on ‘Business Combinations’. The figures for the previous year ended 31st March, 2018 have been restated as if the amalgamation had occurred from the beginning of the previous year i.e. 1st April, 2017. Accordingly, the Company has recorded all the assets, liabilities and reserves of IMCL and BPCO at their respective book values as appearing in their books of account as at 1st April, 2017.

Consequent to the scheme of amalgamation, the authorised equity share capital of the Company stands increased from 3,00,00,000 equity shares of Rs, 10 each, aggregating to Rs, 30 crore to 3,52,50,000 equity shares of Rs, 10 each aggregating to Rs, 35.25 crore and the authorised preference share capital of the Company stands increased from 40,000 redeemable cumulative preference shares of Rs, 100 each, aggregating to Rs, 0.40 crore to 90,000 redeemable cumulative preference shares of Rs, 100 each aggregating to Rs, 0.90 crore.

Equity Share Suspense Account amounting to Rs, 13.92 crore represents 1,39,18,046 Equity Shares of Rs, 10 each fully paid, issued and allotted to the shareholders of BPCO on 30th April, 2019 pursuant to the Scheme coming into effect.

11. Leases Operating Lease:

The Company’s significant operating lease arrangements are in respect of premises only which are renewable at the option of both the lessor & the lessee.

Total lease rent payments recognized in the Statement of Profit and Loss for the year is Rs, 2.23 crore (Previous Year : Rs, 3.11 crore).

12. The Board has recommended dividend of Rs, 5 per equity share subject to approval of the shareholders in the forthcoming Annual General Meeting. If approved, it is expected to result in a cash outflow of Rs, 16.26 crore including corporate dividend tax.

13. Previous year/period figures have been regrouped/rearranged, wherever considered necessary, to make them comparable with those of current year.

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Mar 31, 2018

1. Fair value of Financial Assets and Liabilities

Set out below is a comparison by class of the carrying amounts and fair value of the Company’s financial instruments that are recognised in the financial statements.

Fair valuation techniques

The Company maintains policies and procedures to value financial assets and financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate certain fair values:

i) The fair values of equity instruments are based on their quoted market prices at the balance sheet date.

ii) The fair values of the mutual funds are based on their published Net Asset Values at the reporting date.

iii) The fair value of cash and deposits, trade receivables, trade payables and other current financial assets and liabilities approximate their carrying amounts largely due to the short- term maturities of these instruments.

iv) The fair values of derivatives are based on marked to market valuation statements received from banks with whom the company has entered into the relevant contracts.

Fair Value hierarchy

The following table provides the fair value measurement hierarchy of Company''s asset and liabilities, grouped into Level 1 to Level 3 as described below:

i) Quoted prices / published NAV (unadjusted) in active markets for identical assets or liabilities (level 1). It includes fair value of financial instruments traded in active markets and are based on quoted market prices at the balance sheet date and financial instruments like mutual funds for which net assets value (NAV) is published by mutual fund operators at the balance sheet date.

ii) Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2). It includes fair value of the financial instruments that are not traded in an active market (for example, over-the-counter derivatives) and are determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on the company specific estimates. If all significant inputs required to fair value an instrument are observable, then the instrument is included in level 2.

iii) Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3). If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

During the year ended 31st March, 2018 and 31st March, 2017, there were no transfers between Level 1 and Level 2 fair value measurements and no transfer into and out of Level 3 fair value measurements. There is no transaction / balance under Level 3.

Following table describes the valuation techniques used and key inputs to valuation for level 2 of the fair value hierarchy, as at 31st March, 2018 and 31st March, 2017 :

2. Disclosure pursuant to Indian Accounting Standard 19 - Employee Benefits

(a) Defined Contribution Plan:

Contributions under Defined Contribution Plan as recognised in the Statement of Profit and Loss by the Company are as follows:

(b) Defined Benefit Plan:

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

The Employees Gratuity Fund Scheme, which is a defined benefit plan, is managed by a trust maintained with Life Insurance Corporation of India (LIC). The Employees Leave Encashment Scheme, which Is a defined benefit plan Is unfunded.

The present value of the obligation is determined based on actuarial valuation using Projected Units Credit Method, which recognizes each period of service as giving rise to additional units of employees benefit entitlement and measures each unit separately to build-up the final obligation.

The following table sets out the details of amount recognised in the financial statements in respect of employee benefit schemes:

(vii) Risk exposure

These plans are exposed to the actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk.

Investment risk :The present value of the defined benefit plan liability (denominated in Indian Rupee) is calculated using a discount rate which is determined by reference to market yields on government bonds at the end of the reporting period. For other defined benefit plans, the discount rate is determined by reference to market yields at the end of the reporting period on high quality corporate bonds when there is a deep market for such bonds; if the return on plan asset is below this rate, it will create a plan deficit.

Interest risk : A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan assets.

Longevity risk: 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 after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

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

Presentation in the Statement of Profit and Loss, Other Comprehensive Income and Balance Sheet

Gratuity and leave encashment benefits are in the nature of defined benefit plans and re-measurement gains/(losses) on defined benefit plans are shown under OCI as ‘Items that will not be reclassified to profit or loss’, including the income tax effect on the same.

Expense for service cost, net interest on net defined benefit liability/(asset) is recognised in the Statement of Profit and Loss.

Ind AS 19 does not require segregation of net defined liability/(asset) into current and non-current, however net defined liability/(asset) is bifurcated into current and non-current portions in the balance sheet, as per Ind AS 1 on “Presentation of Financial Statements”.

Outstanding balances receivable at the year-end are unsecured and settlement occurs in cash.

Outstanding balance payable in respect of assets taken by the Company under finance lease is secured. The terms of payment carry an interest rate of 9% p.a.

3. The Hon’ble Supreme Court of India vide judgment dated 25th August, 2014 read with its order dated 24th September, 2014 cancelled the allocation of coal blocks to various companies, including the ‘Utkal C’ coal block held by Utkal Coal Ltd. (‘UCL’), an SPV in which the Company holds 79.2% equity. Subsequently, on 21st October, 2014, The Coal Mines (Special Provisions) Ordinance, 2014 was promulgated to facilitate, inter alia, auction of coal blocks and compensation to a prior allottee of a coal block. To give continuity to the provisions of the said Ordinance and save the actions taken thereunder, on 26th December, 2014, The Coal Mines (Special Provisions) Second Ordinance, 2014 was promulgated, which was deemed to have come into force on 21st October, 2014 and the earlier Ordinance stood repealed. Subsequently, the Coal Mines (Special Provisions) Act, 2015 was enacted on 30th March, 2015 which was deemed to have come into force on 21st October, 2014, repealing the second Ordinance. Further, the Ministry of Coal issued orders dated 18th December, 2014 and 6th January, 2015 to initiate the auction process and change the end use of ‘Utkal C’ from captive use (non-regulated sector) to independent power producer (regulated sector). Aggrieved by the above actions of the government, on 13th February, 2015 UCL filed a Writ Petition before the Hon’ble High Court of Delhi challenging, inter alia, the said orders. The judgment in respect of this Writ Petition was delivered on 5th October, 2016 not granting any relief to UCL which, aggrieved, filed a Special Leave Petition on 11th January, 2017 before the Hon’ble Supreme Court challenging the above order dated 5th October, 2016.

UCL had also filed a separate Writ Petition before the Hon’ble High Court of Delhi on 23rd February, 2015 challenging the basis of valuation of compensation and the restrictive interpretation of ‘Mine Infrastructure’. The judgment was delivered on 9th March, 2017 considering leasehold land [under Coal Bearing Areas (Acquisition and Development) Act, 1957] to be under Mines Infrastructure and not under Freehold Land category for the purpose of compensation. Aggrieved, UCL filed a Special Leave Petition on 15th May, 2017, before the Hon’ble Supreme Court challenging the aforesaid order.

Pending resolution of the aforesaid matters, no accounting adjustments have been made by UCL in it’s books of account which have been prepared on a going concern basis and no provision is deemed necessary in these financial statements against the Company’s exposure in UCL as at 31st March, 2018 amounting to Rs, 111.42 crore invested as equity and Rs, 263.15 crore given as an unsecured loan.

4. I n view of the circumstances detailed in Note No. 45 above and considering the probability of economic benefits associated with the transaction flowing to the Company, as envisaged in paragraph 29 of Ind AS 18 on “Revenue”, with effect from 1st October, 2014 the Company has postponed recognition of income from interest on unsecured loan given to UCL. Due to this, profit before tax for the year ended 31st March, 2018 is lower by Rs, 40.72 crore (Previous Year : Rs, 27.54 crore). The interest income would be considered as revenue of the period in which it is properly recognised.

5. Disputes between the Company and Grid Corporation of Orissa Ltd. (“GRIDCO”) relating to methodology for billing of power, wheeling of power, back-up power drawn during period of grid disturbance etc. were settled in favour of the Company vide a unanimous award of an Arbitral Tribunal dated 23rd March, 2008, by virtue of which GRIDCO was directed to pay Rs, 57.07 lakh along with interest and Rs, 30 lakh towards costs. Subsequently, GRIDCO filed a petition before the District Judge, Bhubaneswar objecting the award and obtained an interim stay on the operation of the said award. The Company filed it’s objection thereto on 19th February, 2009 and the Court of the District Judge, Bhubaneswar pronounced judgment dated 8th January, 2018 in favour of the Company dismissing the petition filed by GRIDCO. Pending recovery, the Company has not given effect of the aforesaid award in it’s books of account on the principles of prudence.

6. In the arbitration proceedings relating to a party’s conversion contract, an interim award was passed on 9th January, 2003 upholding issues in the Company’s favour, without quantification of the amount payable to the Company towards it’s various claims of losses/damages, which is to be determined by the appointment of a Chartered Accountant or other expert. The Party filed a petition before the Hon’ble High Court at Calcutta on 4th February, 2004 praying to set aside the interim award and the Company filed its objection thereto. The matter is pending before the Hon’ble High Court at Calcutta.

7. Pursuant to the order of Hon’ble Orissa High Court dated 21st April 2005, the Company was paying electricity duty at 6 paise per unit to the Govt. of Orissa and keeping the differential duty of 14 paise per unit in a separate ‘no lien account’ till final disposal of its writ petition. The Hon’ble Orissa High Court disposed the said writ petition vide judgment dated 6th May, 2010 by directing the Company to deposit the differential amount of duty lying in no lien account with the State Exchequer. The Company preferred an appeal before the Hon’ble Supreme Court of India against the judgment of Orissa High Court. The Hon’ble Supreme Court vide its order dated 7th February, 2011 directed the company to continue the payment in the same manner but to deposit the differential amount of 14 paise per unit in an Escrow account instead of ‘no lien account’ till final disposal of the appeal. Accordingly, the Company paid the balance 14 paise per unit in an escrow account (non-interest bearing current account) with State Bank of India from January, 2011.

Subsequently, based on a direction received on 9th January, 2015 from Govt. of Odisha, the Company kept the Escrow amount in an interest bearing fixed deposit linked to escrow current account with effect from 21st March, 2015.

On the principles of prudence, the Company fully provided for Electricity Duty @ 20 paise per unit in it’s books of account, on accrual basis till September, 2015. Subsequent to the Department of Energy, Govt. of Odisha’s Notification No. 8309 dated 1st October 2015, wherein the amended rate of Electricity Duty for a Captive Power Generator was specified at par with that of a Licensee, the Company is paying the applicable duty @ 30 paise per unit to the Govt. of Odisha with effect from October, 2015. Further, Department of Energy, Govt of Odisha vide notification No. 3442 dated 12th May 2017 has enhanced the rate of Electricity Duty from 30 paise to 55 paise per unit for a Captive Power Generator and the Company continues to pay the enhanced duty.

8. The Company had filed a petition before the Hon’ble Orissa High Court under Section 392 of the Companies Act, 1956 to modify the Scheme of Arrangement & Amalgamation and confirm the reduction of share capital by cancellation of 3,49,466 equity shares of '' 10/- each held by erstwhile ‘ICCL Shareholders Trust’. The petition was approved by the Hon’ble High Court vide its order dated 16th March, 2011 and registered with the Registrar of Companies (ROC), Orissa on 1st April, 2011. Accordingly, the paid up equity share capital reduced from '' 26,32,65,190/- divided into 2,63,26,519 equity shares of '' 10/- each to '' 25,97,70,530/- divided into 2,59,77,053 equity shares of '' 10/- each. Subsequently, several shareholders challenged the reduction of share capital before a Division Bench of the Hon’ble High Court which, vide its judgement dated 19th July, 2011, directed the Company, inter-alia, to restore the aforesaid shares to the Trust and allot it to interested shareholders. The Company then moved the Hon’ble Supreme Court which issued notice in the matter and granted interim stay on the subscription or cancellation of the said 3,49,466 shares. As such, status quo is to be maintained until further orders.

9. As per Ind AS 108 on “Operating Segments”, segment information has been provided under the Notes to Consolidated Financial Statements.

10. Leases

Operating Lease:

The Company’s significant operating lease arrangements are in respect of premises only which are renewable at the option of both the lessor & the lessee.

11. The Board of Directors of the Company at its meeting held on 28th September, 2017 approved a Scheme of Amalgamation involving amalgamation of (a) Indian Metals and Carbide Limited, a wholly owned subsidiary of the Company and

(b) B. Panda and Company Private Limited, the holding company of the Company, into the Company. The scheme is subject to necessary regulatory approvals, will be effective from the appointed date i.e 1st April, 2017 and no effect to the same has been given in the books of accounts as yet.

12. Revenue from Operations up to 30th June, 2017 is inclusive of excise duty. Post the applicability of Goods and Service Tax (GST) w.e.f 1st July, 2017, Revenue from Operations is disclosed net of GST, in accordance with ''Ind AS 18 - Revenue'' and hence Revenue from Operations for the current year is not strictly comparable with that of previous year.

13. Pursuant to the judgment of the Hon’ble Supreme Court on 13th October, 2017 on a writ petition filed by Federation of Indian Mineral Industries & others, liability towards contribution to the District Mineral Foundation (''DMF'') in respect of chrome ore is applicable from 17th September, 2015. Accordingly, the Company has written back an earlier provision made for DMF liability amounting to Rs, 16.02 crores, for the period 12th January, 2015 to 16th September, 2015 and included it in ''Revenue from Operations'' for the year ended 31st March, 2018.

14. The Board of Directors, in its meeting on 21st March, 2018 declared an interim dividend of Rs, 5/per equity share. This will result in a cash outflow of Rs, 16.26 crore including corporate dividend tax. The Board has recommended a final dividend of Rs,10/- per equity share subject to approval of the shareholders in the forthcoming Annual General Meeting. If approved, it will result in a cash outflow of Rs, 32.52 crore including corporate dividend tax.

15. Previous year/period figures have been regrouped/ rearranged, wherever considered necessary, to make them comparable with those of current year.

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Mar 31, 2017

1. The Company has used previous Indian GAAP carrying value as deemed cost to measure the items of Property, Plant and Equipment as on the date of transition i.e., 1st April, 2015 (Gross Block less: accumulated depreciation & amortization, as on 1st April, 2015).

2. Gross carrying amount of CSR assets include Buildings (Rs. 9.20 crore) and Plant and Equipments 1.56 crore). Out of a total of Rs. 10.76 crore, Rs. 7.08 crore has been transferred from Capital Work-in-Progressand balance of Rs. 3.68 crore has been incurred during the year.

3. Borrowing costs capitalized during the year Rs. 1.37 crore (Previous Year: ? 7.02 crore)

Brief description of the valuation technique and inputs used to value Investment Properties :

The Company''s investment property consists of a commercial property situated in Kolkata, which has been partly let-out. The fair values as aforesaid are based on a valuation performed by an independent valuer who holds a recognized and relevant professional qualification and has recent experience in the location and category of the investment property being valued. The fair value was derived using the market comparable approach based on recent market prices without any significant adjustments being made to the market observable data.

There is a restriction on the reliability of the investment property regarding the transfer of title as it is taken on lease. There are no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

4. The Company has used previous Indian GAAP carrying value as deemed cost to measure Intangible Assets as on the date of transition i.e., 1st April, 2015 (Gross Block less: accumulated depreciation & amortization, as on 1st April, 2015).

5. Computer Software is amortized on a straight line basis over a period of 5 years.

Notes:

6. On transition to Ind AS, the Company has availed the exemption available under Ind AS 101 - "First-time adoption of Indian Accounting Standards" to use previous Indian GAAP carrying value as deemed cost to measure investments in subsidiaries.

7. Indmet Mining Pte Ltd (''IndmetO, a wholly-owned subsidiary incorporated in Singapore, has investment of USD 8.75 Million (Rs.56.04 crore) [31st March, 2016 USD 8.75 million (Rs. 57.64 crore), 1st April, 2015 USD 8.75 million (Rs. 54.41 crore)] in its Indonesian subsidiary PT Sumber Rahayu Indah (''PT Sumber’). PT Sumber is holding a coal mining concession in Indonesia but due to overlapping boundary issues, the mining concession could not be operationalised till date.

The Company initiated arbitration proceedings against the Government of the Republic of Indonesia on 24th July, 2015 pursuant to Article 3 of the United Nations Commission on International Trade Law (UNCITRAL) Arbitration Rules and Article 9 of the Agreement between the Governments of the Republic of Indonesia and the Republic of India for the Promotion and Protection of Investments (the "Treaty"), raising claims of breach of the protections granted under the Treaty. On 23rd December, 2016, the Company has filed its statement of claim and hearing on the arbitration proceedings are under progress.

No provision is considered necessary by the Company at this stage towards any diminution in the carrying value of it''s investment in Indmet amounting to Rs.53.13 crore.

Rights, preferences & restrictions in respect of each class of shares

The Company''s authorized share capital consists of two classes of shares, referred to as Equity Shares and Preference Shares, having par value of Rs.10/- and Rs.100/- each respectively.

Each holder of Equity Share is entitled to one vote per share. The preferential shareholders have preferential right over equity shareholders in respect of repayment of capital and payment of dividend.

In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

8. Details of securities provided (including for current maturities as stated under "Current Liabilities - Other Financial Liabilities” in Note No. 27) and their repayment terms :

Amounts carried in Note No. 20 and 27 represent Amortized Cost whereas amounts mentioned herein below represent the payables as on the dates mentioned.

(EMI - Equated Monthly Installment; EQI - Equated Quarterly Installment; UQI : Unequated Quarterly Installment)

Term Loans from Banks :

(a) Loan of Rs.20.53 crore (31st March, 2016 : Rs.31.96 crore, 1st April, 2015 : Rs.41.10 crore) for setting up of Coal Handling Plant (CHP) at Choudwar, secured by first charge on the movable assets to be acquired out of the loan for CHP and first charge by way of mortgage on pari-passu basis on immovable properties of the Company situated at Choudwar excluding assets exclusively charged to other lenders. Repayment by 28 EQI of Rs.2.29 crore from October’12.

(b) Loan of Rs.50.00 crore (31st March, 2016 : Rs.50.00 crore, 1st April, 2015 : Rs.50.00 crore) for general capital expenditure, secured by first pari-passu charge on fixed assets at Choudwar excluding those which are exclusively charged to other project lenders. Repayment by 35 EMIs of '' 1.39 crore from April''17 and last installment of Rs.1.35 crore.

(c) Loan of Rs. 50.00 crore (31st March, 2016 : Rs.50.00 crore, 1st April, 2015 : Nil ) for general capital expenditure, secured by first pari-passu charge on fixed assets at Choudwar excluding those which are exclusively charged to other project lenders. Repayment by 24 EMI of Rs.0.75 crore from October ''17, thereafter 11 EMI of Rs.2.66 crore and last installment of Rs.2.74 crore.

(d) Loan of Rs. 15.00 crore (31st March, 2016 : Rs.63.00 crore, 1st April, 2015 : Rs.81.00 crore) for general capital expenditure, secured by first pari-passu charge on fixed assets (both moveable & immovable) of the Company (both present & future) situated at Therubali other than assets exclusively charged to other lenders. Subservient charge on the current assets of the Company. Repayment by 20 EQI from December''14.

(e) Loan of Rs.128.00 crore (31st March, 2016 : Nil, 1st April, 2015 : Nil) for 30 MW Captive Power Plant (CPP) at Choudwar and general capital expenditure, secured by exclusive charge over the assets of CPP, first pari-passu charge on plot no. 43 on which CPP has been erected at Choudwar, with other term lenders and first pari-passu charge on fixed assets (both moveable & immovable) of the Company (both present & future) situated at Therubali other than assets exclusively charged to other lenders. Repayment by 4 EQI of Rs.2.25 crore from December ''17, 4 EQI of Rs.3.00 crore from December ''18, 8 EQI of Rs.3.75 crore from December ''19 and 22 EQI of Rs.4.50 crore from December ''21.

(f) Loan of Rs. 95.39 crore (31st March, 2016 : Rs.104.50 crore, 1st April, 2015 : Rs.110.00 crore) for 120 MW Power Plant at Choudwar, secured by first charge ranking pari-passu with other term lenders on the Company''s movable & immovable properties, present & future, relating to the 120 MW power plant. Repayment by 38 UQI from June''15.

(g) Loan of Rs.86.72 crore (31st March, 2016 : Rs.95.00 crore, 1st April, 2015: Rs.100.00 crore) for 120 MW Power Plant at Choudwar, secured by first charge ranking pari-passu with other term lenders on the Company''s movable & immovable properties, present & future, relating to the 120 MW power plant. Repayment by 38 UQI from June''15.

(h) Loan of Rs. 60.70 crore (31st March, 2016 : Rs.66.50 crore, 1st April, 2015 : Rs.70.00 crore) for 120 MW Power Plant at Choudwar, secured by first charge ranking pari-passu with other term lenders on the Company''s movable & immovable properties, present & future, relating to the 120 MW power plant. Repayment by 38 UQI from June''15.

(i) Loan of Rs.86.72 crore (31st March, 2016 : Rs.95.00 crore, 1st April, 2015 : Rs.100.00 crore) for 120 MW Power Plant at Choudwar, secured by first charge ranking pari-passu with other term lenders on the Company''s movable & immovable properties, present & future, relating to the 120 MW power plant. Repayment by 38 UQI from June''15.

(j) Loan of Rs. 43.32 crore (31st March, 2016 : Rs.47.48 crore, 1st April, 2015 : Rs.50.00 crore) for 120 MW Power Plant at Choudwar, secured by first charge ranking pari-passu with other term lenders on the Company''s movable & immovable properties, present & future, relating to the 120 MW power plant. Repayment by 38 UQI from June''15.

(k) Loan of Rs. 6.81 crore (31st March, 2016 : Rs.4.81 crore, 1st April, 2015 : Rs.1.64 crore) for setting up of Industrial Training Centre (ITC) at Sukinda, secured by mortgage of lease hold right of property situated at Khata No. 100, Plot No 238(P), Mauza- Dudhjhari, Sukinda Dist- Jajpur, admeasuring 5 acres and building to be constructed thereon along with the Furniture & Fixtures, Computers and Equipments to be purchased out of the loan. Repayment by 24 EQI from September''16.

(l) Loan of Rs. 22.45 crore (31st March, 2016 : Rs.19.38 crore, 1st April, 2015 : Rs. 9.54 crore) for Housing Project at Choudwar, secured by mortgage of residential land admeasuring 10 acres 920 decimal (475675.20 sq fts) situated at Plot No. 34/78 & 34/82, Tahsil-Tangi Choudwar, PS-Choudwar, Mouza-Chhatisa No.2, Cuttack, Odisha and the proposed building to be constructed. Repayment of Rs.20.00 crore by 24 UQI from June''16 and Rs.5.85 crore in 24 EQI from February ''18.

(m) Vehicle Loan of Rs.1.91 crore (31st March, 2016 : Rs.0.18 crore, 1st April, 2015 Rs.0.24 crore) secured by charge on the Vehicles. Repayment in EMI as per the repayment schedules of respective vehicles.

(n) Loan of Rs. 18.01 crore (31st March, 2016 : Rs.43.23 crore, 1st April, 2015 : Rs.54.45 crore) for setting up of Briquetting plant, Gas Cleaning plant, Fly Ash Brick plant and Low Density Aggregate plant, secured by first exclusive charge by way of hypothecation over plant & machinery of 27 MVA furnace at Choudwar and charge on all the present and future movable fixed assets of Gas Cleaning plant & Briquetting plant at Therubali, Low Density Aggregate plant and Fly Ash Brick plant I and II at Choudwar. Repayment by 16 EQI from Januar/14.

(o) Loan of Rs.41.83 crore (31st March, 2016 : Rs.58.67 crore, 1st April, 2015 : Rs.59.07 crore) for general capital expenditure, secured by first and exclusive charge by way of hypothecation over plant & machinery of 27 MVA furnace at Choudwar. First and exclusive charge on all the present and future moveable fixed assets of Gas Cleaning plant & Briquetting plant at Therubali, Low Density Aggregate plant and Fly Ash Brick plant I and II at Choudwar. Repayment by 16 EQI from February''16.

Note:

Term Loans from Banks amounting to Rs.20.53 crore (31 March, 2016 : Rs.31.96 crore, 1st April, 2015 : Rs.82.86 crore) are further secured by personal guarantees of 2 directors of the Company.

Term Loans from Others:

Loan of Rs. 16.30 crore (31st March, 2016 : Rs.20.00 crore, 1st April, 2015 : Nil) for capital expenditure related to power plants and other ancillary infrastructure, secured by first charge on Aircraft and two helicopters. Subservient charge on current assets of the Company. Repayment by 54 EMIs from June ''16.

9. Micro and Small Enterprises under the Micro and Small Enterprises Development Act, 2006 have been determined based on the information available with the Company and the required disclosures are given below:.

Dues to the Micro and Small enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

(b) Other money for which the Company is contingently liable :

Demand notices in respect of six mines have been raised by the respective Deputy Director of Mines and Mining Officers of Government of Odisha amounting to Rs.237.06 crore for the alleged excess extraction of minerals over the quantity permitted under the mining plan/scheme, environmental clearance or consent to operate and other statutory permissions during the period from 1993 to 2010 under Section 21(5) of Mines & Minerals (Development and Regulation) Act, 1957 (''ActO. However, Section 21(5) of the Act specifies that demand can be raised only when the minerals were extracted from the land which is occupied without lawful authority i.e. outside leasehold area. The Company is of the view that Section 21(5) of the Act is not applicable as the mining is done within the leasehold area under the supervision and approval of the State and Central Govt. Hence, the Company filed Revision Applications before Mines Tribunal, New Delhi against all such demands. Stay has been granted by the Mines Tribunal against such Demand Notices and the matters are pending.

10. FINANCIAL RISK MANAGEMENT

10.1 Financial risk factors

The Company’s principal financial liabilities comprise of borrowings, trade and other payables. The main purpose of these financial liabilities is to manage finances for the Company’s operations. The Company’s principal financial assets include loans and advances, investment in mutual funds, trade receivables and cash and bank balances that arise directly from its operations. The Company also enters into derivative transactions to hedge foreign currency and interest rate risks and not for speculative purposes. The Company is exposed to market risk, credit risk and liquidity risk and the Company''s senior management oversees the management of these risks.

i) Market risk

Market risk is the risk that the fair value of future cash flows of a financial asset will fluctuate because of changes in market prices. The Company’s activities expose it to a variety of financial risks, including the effects of changes in foreign currency exchange rates and interest rates.

(a) Currency risk

Foreign currency risk is the risk that fair value of future cash flow of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities. The Company has obtained foreign currency loans and has foreign currency trade payables and receivables and is therefore, exposed to a foreign exchange risk. For exposure to foreign exchange risk, the Company adopts a policy of selective hedging based on the risk perception of the management. The Company has entered into foreign currency forward contracts and cross currency swap contracts.

The following table demonstrates the sensitivity in the USD to the Indian Rupee and the resulting impact on the Company''s Profit /(Loss) before tax, due to changes in the fair value of monetary assets and liabilities :

(b) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates. Any changes in the interest rates environment may impact future cost of borrowings. To manage this, the Company has entered into interest rate swap contracts, in which it agrees to exchange, at specific intervals, the difference between fixed and variable interest amounts calculated by reference to an agreed upon principal amount.

The following table demonstrates the fixed and floating rate borrowings of the Company:

ii) Credit risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities, primarily trade receivables and from its financing activities, including deposits with banks and other financial instruments.

(a) Trade receivables

The Company extends credit to customers in the normal course of business. Outstanding customer receivables are regularly monitored. The Company has also taken advances and security deposits from its customers, which mitigate the credit risk to an extent. An impairment analysis is performed at each reporting date on an individual basis for major customers.

(b) Deposits with banks and other financial instruments

The Company considers factors such as track record, market reputation and service standards to select the mutual funds for investments and banks with which balances and deposits are maintained. Generally, the balances are maintained with the banks with which the Company has also availed borrowings. The Company does not maintain significant cash balances other than those required for its day to day operations.

iii) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, letter of credit and working capital limits. The Company ensures it has sufficient cash to meet operational needs while maintaining sufficient margin on its undrawn borrowing facilities at all times.

The Company had access to the following undrawn borrowing facilities at the end of the reporting period:

Subject to the continuance of satisfactory credit ratings, the bank facilities may be drawn at any time. Average maturity of undrawn facilities of term loans expiring beyond one year is 5.25 years (As at 31st March, 2016: 6.75 years).

11. Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity share holders of the Company. The primary objective of the Company''s capital management is to safeguard continuity, maintain healthy capital ratios in order to support its business and maximize shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The funding requirement is met through equity, internal accruals, long term borrowings and short term borrowings.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

12. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

Set out below is a comparison by class of the carrying amounts and fair value of the Company''s financial instruments that are recognized in the financial statements.

Fair valuation techniques

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate certain fair values:

i) The fair values of the mutual funds are based on their published Net Asset Values at the reporting date.

ii) Fair value of cash and deposits, trade receivables, trade payables and other current financial assets and liabilities approximate their carrying amounts largely due to the short- term maturities of these instruments.

iii) The fair values of derivatives are based on marked to market valuation statements received from banks with whom the company has entered into the relevant contracts.

Fair Value hierarchy

The following table provides the fair value measurement hierarchy of Company''s asset and liabilities, grouped into Level 1 to Level 3 as described below:

i) Quoted prices / published NAV (unadjusted) in active markets for identical assets or liabilities (level 1). It includes fair value of financial instruments traded in active markets and are based on quoted market prices at the balance sheet date and financial instruments like mutual funds for which net assets value (NAV) is published by mutual fund operators at the balance sheet date.

ii) Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2). It includes fair value of the financial instruments that are not traded in an active market (for example, over-the-counter derivatives) and are determined by using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on the company specific estimates. If all significant inputs required to fair value an instrument are observable, then the instrument is included in level 2.

iii) Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3). If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

During the year ended 31st March, 2017 and 31st March, 2016, there were no transfers between Level 1 and Level 2 fair value measurements and no transfer into and out of Level 3 fair value measurements. There is no transaction / balance under Level 3.

Following table describes the valuation techniques used and key inputs to valuation for level 2 of the fair value hierarchy, as at 31st March, 2017, 31st March, 2016 and 1st April, 2015 :

(b) Defined Benefit Plan:

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

The Employees Gratuity Fund Scheme, which is a defined benefit plan, is managed by a trust maintained with Life Insurance Corporation of India (LIC). The Employees Leave Encashment Scheme, which is a defined benefit plan is unfunded.

The present value of the obligation is determined based on actuarial valuation using Projected Units Credit Method, which recognizes each period of service as giving rise to additional units of employees benefit entitlement and measures each unit separately to buildup the final obligation.

The following table sets out the details of amount recognized in the financial statements in respect of employee benefit schemes:

(viii) Risk exposure

These plans are exposed to the actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk.

Investment risk : The present value of the defined benefit plan liability (denominated in Indian Rupee) is calculated using a discount rate which is determined by reference to market yields on government bonds at the end of the reporting period. For other defined benefit plans, the discount rate is determined by reference to market yields at the end of the reporting period on high quality corporate bonds when there is a deep market for such bonds; if the return on plan asset is below this rate, it will create a plan deficit.

Interest risk : A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan assets.

Longevity risk: 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 after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

(ix) Sensitivity Analysis

Sensitivity analysis on effect on Defined Benefit Obligations on changes in significant assumptions as per Note 43 (b) (vi) are as follows:-

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

Presentation in the Statement of Profit and Loss, Other Comprehensive Income and Balance Sheet

Gratuity and leave encashment benefits are in the nature of defined benefit plans and re-measurement gains/(losses) on defined benefit plans are shown under OCI as ''Items that will not be reclassified to profit or loss’, including the income tax effect on the same.

Expense for service cost, net interest on net defined benefit liability/(asset) is recognized in the Statement of Profit and Loss.

Ind AS 19 does not require segregation of net defined liability/(asset) into current and non-current, however net defined liability/(asset) is bifurcated into current and non-current portions in the balance sheet, as per Ind AS 1 on "Presentation of Financial Statements”.

Outstanding balances receivable at the year-end are unsecured and settlement occurs in cash.

Outstanding balance payable in respect of assets taken by the Company under finance lease is secured. The terms of payment carry an interest rate of 9% p.a.

(c) Disclosure in respect of Material Related Party Transactions during the year (excluding reimbursements) :

13. Issue of Equity Shares (including premium) to B Panda and Company Pvt Ltd. Rs.16.50 crore (Previous Year : Nil).

14. Dividend Paid to B Panda and Company Pvt Ltd. Rs.13.92 crore (Previous Year : Nil).

15. Dividend Received from IMFA Alloys Finlease Ltd. Rs.1.38 crore (Previous Year Nil).

16. Purchases of raw materials and stores from UMSL Ltd. Rs.0.56 crore (Previous Year : Rs.0.14 crore).

17. Services received includes services from UMSL Ltd. Rs.83.20 crore (Previous Year : Rs.52.27 crore).

18. Services rendered to UMSL Ltd. Rs.0.18 crore (Previous Year : Rs.0.08 crore).

19. Remuneration includes amount paid to Dr. Bansidhar Panda Rs.7.53 crore (Previous Year : Rs.1.55 crore), Mr. Baijayant Panda Rs.7.66 crore (Previous Year : Rs.1.62 crore), Mr. Subhrakant Panda Rs.7.95 crore (Previous Year : Rs.1.84 crore), Mr. Jayant Kumar Misra Rs.1.28 crore (Previous Year : Rs.0.67 crore), Mr. Chitta Ranjan Ray Rs.0.78 crore (Previous Year : Rs.0.61 crore) and Mr. Prem Khandelwal Rs.0.59 crore (Previous Year : Rs.0.58 crore).

20. Donations include amount given to Bansidhar & Ila Panda Foundation Rs.0.45 crore (Previous Year : Rs.0.69 crore).

21. Corporate Social Responsibility Expenses include amount paid to Bansidhar & Ila Panda Foundation Rs.1.32 crore (Previous year : Rs.1.36 crore) and Indian Metals Public Charitable Trust Rs.0.29 crore (Previous Year : Rs.0.29 crore).

22. Lease rentals paid to IMFA Alloys Finlease Limited Rs.3.88 crore (Previous Year : Rs.3.85 crore).

23. Interest income on Loan is from Utkal Power Limited Rs.0.08 crore (Previous Year : Rs.0.07 crore) and from Utkal Green Energy Limited Nil (Previous Year : Rs.0.01 crore).

24. Investments made in Utkal Green Energy Limited Nil (Previous Year Rs.0.08 crore), Indian Metals and Carbide Limited Nil (Previous Year Rs.0.03 crore).

25. Loan given includes amount paid to Utkal Coal Limited Rs.90.51 crore (Previous Year : Rs.27.80 crore).

26. Loan repayment received includes amount from Utkal Power Limited Nil (Previous Year : Rs.0.06 crore), Utkal Green Energy Limited Nil (Previous Year : Rs.0.06 crore) and Utkal Coal Limited Rs.0.47 crore (Previous Year : Rs.0.47 crore).

27. Guarantee provided to Financial Institution for loan availed by Utkal Coal Limited Nil (Previous Year : Rs.78.09 crore).

(d) Compensation to Key Management Personnel

The compensation to key management personnel during the year was as follows:-

The amounts disclosed in the table are the amounts recognized as an expense during the reporting period related to key management personnel.

28. The Hon''ble Supreme Court of India vide judgment dated 25th August, 2014 read with its order dated 24th September, 2014 cancelled the allocation of coal blocks to various companies, including the ''Utkal C’ coal block held by Utkal Coal Ltd. (''UCL’), an SPV in which the Company holds 79.2% equity. Subsequently, on 21st October, 2014, The Coal Mines (Special Provisions) Ordinance, 2014 was promulgated to facilitate, inter alia, auction of coal blocks and compensation to a prior allottee of a coal block. To give continuity to the provisions of the said Ordinance and save the actions taken there under, on 26th December, 2014, The Coal Mines (Special Provisions) Second Ordinance, 2014 was promulgated, which was deemed to have come into force on 21st October, 2014 and the earlier Ordinance stood repealed. Subsequently, the Coal Mines (Special Provisions) Act, 2015 was enacted on 30th March, 2015 which was deemed to have come into force on 21st October, 2014, repealing the second Ordinance. Further, the Ministry of Coal issued orders dated 18th December, 2014 and 6th January, 2015 to initiate the auction process and change the end use of ''Utkal C’ from captive use (non-regulated sector) to independent power producer (regulated sector). Aggrieved by the above actions of the government, on 13th February, 2015 UCL filed a Writ Petition before the Hon’ble High Court of Delhi challenging, inter alia, the said orders. The judgment in respect of this Writ Petition was delivered on 5th October, 2016 not granting any relief to UCL which, aggrieved, filed a Special Leave Petition on 11th January, 2017 before the Hon''ble Supreme Court challenging the above order dated 5th October, 2016.

UCL had also filed a separate Writ Petition before the Hon’ble High Court of Delhi on 23rd February, 2015 challenging the basis of valuation of compensation and the restrictive interpretation of ''Mine Infrastructure’. The judgment has been delivered on 9th March, 2017 considering leasehold land [under Coal Bearing Areas (Acquisition and Development) Act, 1957] to be under Mines Infrastructure and not under Freehold Land category for the purpose of compensation. Aggrieved, UCL has filed a Special Leave Petition before the Hon''ble Supreme Court challenging the aforesaid order. Pending resolution of the said matters, no accounting adjustments have been made by UCL in it’s books of account which have been prepared on a going concern basis and no provision is deemed necessary in these financial statements against the Company’s exposure in UCL as at 31st March, 2017 amounting to Rs.111.42 crore invested as equity and Rs.262.81 crore given as an unsecured loan.

29. In view of the circumstances detailed in Note No.46 above and considering the probability of economic benefits associated with the transaction flowing to the Company, as envisaged in paragraph 29 of Ind AS 18 on "Revenue", with effect from 1st October, 2014 the Company has postponed recognition of income from interest on unsecured loan given to UCL. Due to this, profit before tax for the year ended 31st March, 2017 is lower by Rs.27.54 crore (Previous Year : Rs.21.08 crore). The interest income would be considered as revenue of the period in which it is properly recognized.

30. Disputes between the Company and Grid Corporation of Orissa Ltd. ("GRIDCO") relating to methodology for billing of power, wheeling of power, back-up power drawn during period of grid disturbance etc. were settled in favour of the Company vide a unanimous award of an Arbitral Tribunal dated 23rd March, 2008, by virtue of which GRIDCO was directed to pay Rs.57.07 Lakh along with interest and Rs.30 Lakh towards costs. Subsequently, GRIDCO filed a petition before the District Judge, Bhubaneswar objecting the award and obtained an interim stay on the operation of the said award. The Company filed it’s objection thereto on 19th February, 2009 and the matter is pending for hearing.

The Company has not given effect of the aforesaid award in it’s books of account on the principles of prudence, as the matter is sub-judice.

31. In the arbitration proceedings relating to a party''s conversion contract, an interim award was passed on 9th January, 2003 upholding issues in the Company''s favour, without quantification of the amount payable to the Company towards it’s various claims of losses/damages, which is to be determined by the appointment of a Chartered Accountant or other expert. The Party filed a petition before the Hon’ble High Court at Calcutta on 4th February, 2004 praying to set aside the interim award and the Company filed its objection thereto. The matter is pending before the Hon''ble High Court at Calcutta.

32. Pursuant to the order of Hon’ble Orissa High Court dated 21st April 2005, the Company was paying electricity duty at 6 paise per unit to the Govt. of Orissa and keeping the differential duty of 14 paise per unit in a separate ''no lien account till final disposal of it’s writ petition. The Hon’ble Orissa High Court disposed the said writ petition vide judgment dated 6th May, 2010 by directing the Company to deposit the differential amount of duty lying in no lien account with the State Exchequer. The Company preferred an appeal before the Hon''ble Supreme Court of India against the judgment of Orissa High Court. The Hon’ble Supreme Court vide its order dated 7th February, 2011 directed the company to continue the payment in the same manner but to deposit the differential amount of 14 paise per unit in an Escrow account instead of ''no lien account till final disposal of the appeal. Accordingly, the Company paid the balance 14 paise per unit in an escrow account (non-interest bearing current account) with State Bank of India from January, 2011. Subsequently, based on a direction received on 9th January, 2015 from Govt. of Odisha, the Company kept the Escrow amount in an interest bearing fixed deposit linked to escrow current account with effect from 21st March, 2015.

On the principles of prudence, the Company fully provided for Electricity Duty @ 20 paise per unit in it''s books of account, on accrual basis till September, 2015. Subsequent to the Department of Energy, Govt. of Odisha''s Notification No. 8309 dated 1st October 2015, wherein the amended rate of Electricity Duty for a Captive Power Generator was specified at par with that of a Licensee, the Company is paying the applicable duty @ 30 paise per unit to the Govt. of Odisha with effect from October, 2015.

33. The Company had filed a petition before the Hon''ble Orissa High Court under Section 392 of the Companies Act, 1956 to modify the Scheme of Arrangement & Amalgamation and confirm the reduction of share capital by cancellation of 3,49,466 equity shares of Rs.10/- each held by erstwhile ''ICCL Shareholders Trust. The petition was approved by the Hon''ble High Court vide its order dated 16th March, 2011 and registered with the Registrar of Companies (ROC), Orissa on 1st April, 2011. Accordingly, the paid up equity share capital reduced from Rs.26,32,65,190/- divided into 2,63,26,519 equity shares of Rs.10/- each to Rs.25,97,70,530/- divided into 2,59,77,053 equity shares of Rs.10/- each. Subsequently, several shareholders challenged the reduction of share capital before a Division Bench of the Hon''ble High Court which, vide its judgement dated 19th July, 2011, directed the Company, inter-alia, to restore the aforesaid shares to the Trust and allot it to interested shareholders. The Company then moved the Hon''ble Supreme Court which issued notice in the matter and granted interim stay on the subscription or cancellation of the said 3,49,466 shares. As such, status quo is to be maintained until further orders.

34. As per Ind AS 108 on "Operating Segments ", segment information has been provided under the Notes to Consolidated Financial Statements.

35. LEASES

Operating Lease:

The Company''s significant operating lease arrangements are in respect of premises only which are renewable at the option of both the lessor & the lessee.

36. EXPLANATION OF TRANSITION TO IND AS Ind AS

101: First-time Adoption of Indian Accounting Standards Mandatory exceptions and Optional exemptions

The Company has prepared the opening balance sheet as per Ind AS as on 1st April, 2015 (the transition date) by recognizing all assets and liabilities whose recognition is required by Ind AS, not recognizing items of assets or liabilities which are not permitted by Ind AS, reclassifying items from the previously applicable Indian GAAP to Ind AS and applying Ind AS in measurement of recognized assets and liabilities. However, this principle is subject to certain mandatory exceptions and optional exemptions out of which the ones which are relevant for the Company are as detailed below:

Mandatory exceptions to the retrospective application of Ind AS Classification and measurement of Financial Assets

Ind AS 101 requires an entity to assess classification of financial assets on the basis of the facts and circumstances existing as on the date of transition and the Company has complied accordingly. As per Ind AS 101, for financial assets or financial liabilities classified as at amortized cost, if it is impracticable for the Company to apply retrospectively the effective interest method as mentioned in Ind AS 109, the fair value of the financial assets or financial liabilities at the date of transition to Ind AS shall be the new gross carrying amount of that financial asset or financial liability at the date of transition to Ind AS. For financial assets and financial liabilities classified as at amortized cost, measurement has been done retrospectively by the Company.

Voluntary exemptions availed

a) Deemed cost for Property, Plant and Equipment, Investment Property and Intangible Assets

The Company has elected to continue with the carrying value of all of its property, plant and equipment, investment property and intangible assets recognized as on the transition date measured as per the previously applicable Indian GAAP and use that carrying value as its deemed cost as of the transition date.

b) Investment in Subsidiaries

The Company has elected to measure investments in subsidiaries at deemed cost, which is the previously applicable Indian GAAP carrying amount, as on the date of transition.

37. The Board of Directors, in its meeting on 7th February, 2017 declared an interim dividend of Rs.10/- per equity share. This resulted in a cash outflow of Rs.32.19 crore including corporate dividend tax during the year. The Board has recommended a final dividend of Rs.10 per equity share subject to approval of the shareholders in the forthcoming Annual General Meeting. If approved, it will result in a cash outflow of Rs. 32.47 crore including corporate dividend tax.

38. Previous year/period figures have been regrouped/rearranged, wherever considered necessary, to make them comparable with those of current year.

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Mar 31, 2016

Term Loans from Others:

(a) Loan of Rs. 3.23 Crore (PY : Rs. 7.63 Crore) for setting up of winder at Mahagiri Mines, secured by first charge on winder at Mines. Repayment by EMIs from February’13 to November’16.

(b) Loan of Rs. 20.00 Crore (PY : Nil) for capital expenditure related to power plants and other ancillary infrastructure, secured by first charge on Aircraft and two helicopters. Subservient charge on current assets of the Company. Repayment by 54 EMIs from June ‘16.

Note: Term Loans from Banks amounting to Rs. 31.96 Crore (PY : Rs. 82.86 Crore) are further secured by personal guarantees of 2 directors of the Company.

1. DEFERRED TAX LIABILITIES (NET)

[Deferred Tax Liability - DTL ; Deferred Tax Asset - DTA]

In terms of Accounting Standard 22, the net DTA recognized during the year is Rs. 30.06 Crore (Previous Year: DTL Rs. 21.26 Crore). Consequently, the net DTL as at year-end stands at Rs. 69.59 Crore (Previous Year : Rs. 99.65 Crore), as under:

2. The Company has not received any memorandum from ‘Suppliers’(as required to be filed by the ‘Suppliers’ with the notified authority under the Micro, Small and Medium Enterprises Development Act, 2006) claiming their status as on 31st March, 2016 as micro, small or medium enterprises. Consequently, interest paid/ payable by the Company to such ‘Suppliers’ during the year is Nil (Previous Year : Nil).

3. Indmet Mining Pte Ltd (‘Indmet’), a wholly-owned subsidiary incorporated in Singapore, has investment of USD 8.75 million ('' 57.64 Crore) [Previous year USD 8.75 million (Rs. 54.41 Crore)] in its Indonesian subsidiary PT Sumber Rahayu Indah (‘PT Sumber’). PT Sumber is holding a coal mining concession in Indonesia but due to overlapping boundary issues, the mining concession could not be operationalised till date.

Consequently, the Company has initiated arbitration proceedings against the Government of the Republic of Indonesia on 24th July, 2015 pursuant to Article 3 of the United Nations Commission on International Trade Law (UNCITRAL) Arbitration Rules and Article 9 of the Agreement between the Governments of the Republic of Indonesia and the Republic of India for the Promotion and Protection of Investments (the “’’Treaty””), raising claims of breach of the protections granted under the Treaty. Hearing on the arbitration proceedings is yet to commence.

No provision is considered necessary by the Company at this stage towards any diminution in the carrying value of it’s investment in Indmet amounting to Rs. 53.13 Crore.

(c) Other money for which the Company is contingently liable :

Demand notices in respect of six mines have been raised by the respective Deputy Director of Mines and Mining Officers of Government of Odisha amounting to Rs. 225.14 Crore for the alleged excess extraction of minerals over the quantity permitted under the mining plan/scheme, environmental clearance or consent to operate and other statutory permissions during the period from 1993 to 2010 under Section 21(5) of Mines & Minerals (Development and Regulation) Act, 1957 (‘Act’). However, Section 21(5) of the Act specifies that demand can be raised only when the minerals were extracted from the land which is occupied without lawful authority i.e. outside leasehold area. The Company is of the view that Section 21(5) of the Act is not applicable as the mining is done within the leasehold area under the supervision and approval of the State and Central Govt. Hence, the Company filed Revision Applications before Mines Tribunal, New Delhi against all such demands. Stay has been granted by the Mines Tribunal against such Demand Notices and the matters are pending.

4. The Hon’ble Supreme Court of India vide judgment dated 25th August, 2014 read with its order dated 24th September, 2014 cancelled the allocation of coal blocks to various companies, including the ‘Utkal C’ coal block held by Utkal Coal Ltd (‘UCL’), an SPV in which the Company holds 79.2% equity. Subsequently, on 21st October, 2014 The Coal Mines (Special Provisions) Ordinance, 2014 was promulgated to facilitate, inter alia, auction of coal blocks and compensation to a prior allotted of a coal block. To give continuity to the provisions of the said Ordinance and save the actions taken there under, on 26th December, 2014 The Coal Mines (Special Provisions) Second Ordinance, 2014 was promulgated, which was deemed to have come into force on 21st October, 2014 and the earlier Ordinance stood repealed. Further, the Ministry of Coal issued orders dated 18th December, 2014 and 6th January, 2015 to initiate the auction process and change the end use of ‘Utkal C’ from captive use (non-regulated sector) to independent power producer(regulated sector). Aggrieved by the above actions of the government, on 13th February, 2015 UCL filed a Writ Petition before the Hon’ble High Court of Delhi challenging, inter alia, the said orders. UCL has also filed a separate Writ Petition before the Hon’ble High Court of Delhi on 23rd February, 2015 challenging the basis of valuation of compensation and the restrictive interpretation of ‘Mine Infrastructure’. The arguments in both the aforesaid writ petitions have been heard by the Hon’ble High Court of Delhi and the judgments have been reserved. Pending final orders on the aforesaid writ petitions, no accounting adjustments have been made by UCL in it’s books of account and no provision is deemed necessary in these financial statements against the Company’s exposure in UCL as at 31st March, 2016 amounting to Rs. 110.88 Crore invested as equity, Rs. 173.77 Crore given as an unsecured loan and Rs. 78.09 Crore as a guarantee to a financial institution for loan availed by UCL.

5. In view of the circumstances detailed in Note No.31 above and considering the effect of uncertainties as envisaged in paragraph 9 of Accounting Standard 9 on “Revenue Recognition”, with effect from 1st October, 2014 the Company has postponed recognition of income from interest on unsecured loan given to UCL. Due to this, profit before tax for the year ended 31st March, 2016 is lower by Rs. 21.08 Crore (Previous Year Rs. 9 Crore). The interest income would be considered as revenue of the period in which it is properly recognized.

6. As per Accounting Standard 17 on “Segment Reporting”, segment information has been provided under the Notes to Consolidated Financial Statements.

7. Managerial remuneration includes amount paid to Dr Bansidhar Panda Rs. 1.55 Crore (Previous Year : Rs. 1.44 Crore), Mr Baijayant Panda Rs. 1.62 Crore (Previous Year : Rs. 1.45 Crore), Mr Subhrakant Panda Rs. 1.84 Crore (Previous Year : Rs. 1.63 Crore), Mr Jayant Kumar Misra Rs. 0.67 Crore (Previous Year : Rs. 0.80 Crore) and Mr Chitta Ranjan Ray Rs. 0.61 Crore (Previous Year : Rs. 0.63 Crore).

8. Donations include amount given to Bansidhar & Ila Panda Foundation Rs. 0.69 Crore (Previous Year : Rs. 0.73 Crore).

9. Corporate Social Responsibility Expenses paid to Bansidhar & Ila Panda Foundation Rs. 1.36 Crore (Previous Year : Rs. 1.23 Crore) and Indian Metals Public Charitable Trust of Rs. 0.29 Crore (Previous Year : Rs. 0.34 Crore).

10. Lease rentals paid to IMFA Alloys Finlease Limited Rs. 3.85 Crore (Previous Year : Rs. 3.84 Crore).

11. Interest income on loan is from Utkal Power Limited of Rs. 0.07 Crore (Previous Year : Rs. 0.10 Crore), from Utkal Green Energy Limited of Rs. 0.01 Crore (Previous Year : Rs. 0.01 Crore) and from Utkal Coal Limited Nil (Previous Year 9.45 Crore).

12. Investments made in Utkal Green Energy Limited of Rs. 0.08 Crore (Previous Year : Nil), Indian Metals and Carbide Limited Rs. 0.03 Crore (Previous Year : Nil) and Utkal Power Limited Nil (Previous Year : Rs. 0.40 Crore)

10. Loan given includes amount paid to Utkal Coal Limited Rs. 27.80 Crore (Previous Year : Rs. 27.20 Crore).

11. Loan repayment received includes amount from Utkal Power Limited Rs. 0.06 Crore (Previous Year : Rs. 0.40 Crore), Utkal Green Energy Limited to Rs. 0.06 Crore (Previous Year : Nil) and Utkal Coal Limited Rs. 0.47 Crore (Previous Year : Rs. 66.30 Crore).

12. Guarantee provided to Financial Institution for loan availed by Utkal Coal Limited Rs. 78.09 Crore (Previous Year : Rs. 91.00 Crore)

13. Guarantee received from Indmet Mining Pte Limited Nil (Previous Year : Rs. 7.06 Crore)

14. Disputes between the Company and Grid Corporation of Orissa Ltd (“GRIDCO”) relating to methodology for billing of power, wheeling of power, back-up power drawn during period of grid disturbance etc. were settled in favour of the Company vide a unanimous award of an Arbitral Tribunal dated 23rd March, 2008, by virtue of which GRIDCO was directed to pay Rs. 57.07 lakh along with interest and Rs. 30 lakh towards costs. Subsequently, GRIDCO filed a petition before the District Judge, Bhubaneswar objecting the award and obtained an interim stay on the operation of the said award. The Company filed its objection thereto on 19th February, 2009 and the matter is pending for hearing.

The Company has not given effect of the aforesaid award in it’s books of account on the principles of prudence, as the matter is sub-judice.

15. In the arbitration proceedings relating to a party''s conversion contract, an interim award was passed on 9th January, 2003 upholding issues in the Company’s favour, without quantification of the amount payable to the Company towards it’s various claims of losses/damages, which is to be determined by the appointment of a Chartered Accountant or other expert. The Party filed a petition before the Hon’ble High Court at Calcutta on 4th February, 2004 praying to set aside the interim award and the Company filed its objection thereto .The matter is pending before the Hon’ble High Court at Calcutta.

16. Pursuant to the order of Hon''ble Orissa High Court dated 21st April 2005, the Company was paying electricity duty at 6 paise per unit to the Govt. of Orissa and keeping the differential duty of 14 paise per unit in a separate ''no lien account’ till final disposal of it’s writ petition. The Hon''ble Orissa High Court disposed the said writ petition vide judgment dated 6th May, 2010 by directing the Company to deposit the differential amount of duty lying in no lien account with the State Exchequer. The Company preferred an appeal before the Hon''ble Supreme Court of India against the judgment of Orissa High Court. The Hon’ble Supreme Court vide its order dated 7th February, 2011 directed the company to continue the payment in the same manner but to deposit the differential amount of 14 paise per unit in an Escrow account instead of ‘no lien account’ till final disposal of the appeal. Accordingly, the Company paid the balance 14 paise per unit in an escrow account (noninterest bearing current account) with State Bank of India from January, 2011. Subsequently, based on a direction received on 9th January, 2015 from Govt. of Odisha, the Company kept the Escrow amount in an interest bearing fixed deposit linked to escrow current account with effect from 21st March, 2015.

On the principles of prudence, the Company fully provided for Electricity Duty @ 20 paise per unit in it’s books of account, on accrual basis till September,2015. Subsequent to the Department of Energy, Govt. of Odisha''s Notification No. 8309 dated 1st October 2015, wherein the amended rate of Electricity Duty for a Captive Power Generator was specified at par with that of a Licensee, the Company is paying the applicable duty @ 30 paise per unit to the Govt. of Odisha with effect from October, 2015.

17. With reference to a Right of Recompense (‘ROR’) dispute with Andhra Bank, the Hon’ble Orissa High Court, based on Company’s application, vide it’s Order dated 18th March, 2015, directed the Company and Andhra Bank to resolve the issues relating to the amount of recompense payable to Andhra Bank on the basis of the principles laid down in the Order, preferably within a period of two months and thereafter the bank shall consider the issue of No Objection Certificate and vacate the charge by following it’s own procedures. To give effect to the directions of the Hon’ble High Court, the Company had initiated discussions with Andhra Bank. Subsequently, Andhra Bank has filed an appeal against the aforesaid Order dated 18th March, 2015.

The Company has paid Rs. 1.35 Crore to the bank, on the basis of the earlier ord ers passed by th e H on’ble Orissa High Court from time to time, prior to the aforesaid final order dated 18th March, 2015 and is of the opinion that the final recompense amount will not exceed the amount which has been already paid to the bank.

18. The Company had filed a petition before the Hon''ble Orissa High Court under Section 392 of the Companies Act, 1956 to modify the Scheme of Arrangement & Amalgamation and confirm the reduction of share capital by cancellation of 3,49,466 equity shares of Rs. 10/- each held by erstwhile ''ICCL Shareholders Trust''. The petition was approved by the Hon''ble High Court vide its order dated 16th March, 2011 and registered with the Registrar of Companies (ROC), Orissa on 1st April, 2011. Accordingly, the paid up equity share capital reduced from Rs. 26,32,65,190/- divided into 2,63,26,519 equity shares of Rs. 10/- each to Rs. 25,97,70,530/- divided into 2,59,77,053 equity shares of Rs. 10/- each. Subsequently, several shareholders challenged the reduction of share capital before a Division Bench of the Hon''ble High Court which, vide its judgment dated 19th July 2011, directed the Company, inter-alia, to restore the aforesaid shares to the Trust and allot it to interested shareholders. The Company then moved the Hon''ble Supreme Court which issued notice in the matter and granted interim stay on the subscription or cancellation of the said 3,49,466 shares. As such, status quo is to be maintained until further orders.

19. LEASES

Operating Lease:

The Company’s significant operating lease arrangements are in respect of premises only which are renewable at the option of both the lessor & the lessee.

20. Previous year’s figures have been rearranged/ regrouped to conform to the classification of the current year, wherever considered necessary.

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Mar 31, 2015

1. Rights, preferences and restrictions in respect of each class of shares

The Company''s authorised share capital consists of two classes of shares, referred to as Equity Shares and Preference Shares, having par value of Rs. 10/- and Rs. 100/- each respectively.

Each holder of Equity Shares is entitled to one vote, when present in person on a show of hands, in case of poll, each holder of Equity Shares shall be entitled to vote in proportion to his paid up Equity Share Capital. The preferential shareholders have preferential right over equity shareholders in respect of repayment of capital and payment of dividend.

The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

In the event of liquidation of the Company, the holders of Equity Shares are eligible to receive the remaining assets of the Company after distribution of all the preferential amounts, in proportion to their shareholding.

2. Details of securities provided for Term-Loans (including current maturities as stated under "Other Current Liabilities") and their repayment terms :

(EMI - Equated Monthly Instalment; EQI - Equated Quarterly Instalment; UQI : Unequated Quarterly Instalment)

Term Loans from Banks :

(a) Loan of Rs. 41.10 Crore (Previous Year : Rs. 47.94 Crore) for setting up of Coal Handling Plant (CHP) at Choudwar, secured by first charge on the movable assets to be acquired out of the loan for CHP and first charge by way of mortgage on pari-passu basis on immovable properties of the Company situated at Choudwar excluding assets exclusively charged to other lenders. Repayment by 28 EQI of Rs. 2.29 Crore from October''12.

(b) Loan of Rs.12.50 Crore (PY : Rs. 37.50 Crore) for general capital expenditure, secured by first pari-passu charge on the immovable & movable assets of the Company''s Therubali & Choudwar units (excluding the fixed assets exclusively charged), both present & future. Repayment by 24 EMI of Rs. 2.08 Crore from October''13.

(c) Loan of Rs. 50.00 Crore (PY : Rs. 37.50 Crore) for general capital expenditure, secured by first pari-passu charge on fixed assets at Choudwar excluding those which are exclusively charged to other project lenders. Repayment by 35 EMIs of Rs. 1.39 Crore from April''17 and last instalment of Rs.1.35 Crore.

(d) Loan of Rs. 81.00 Crore (PY : Rs. 90.00 Crore) for general capital expenditure, secured by first pari-passu charge on fixed assets (both moveable & immovable) of the Company (both present & future) situated at Therubali other than assets exclusively charged to other lenders. Subservient charge on the current assets of the Company. Repayment by 20 EQIs from December''14.

(e) Loan of Rs. 41.76 Crore (PY : Rs. 54.38 Crore) for setting up of 30 MW Captive Power Plant (CPP) at Choudwar, secured by exclusive charge over the assets of CPP & first pari-passu charge on plot no. 43 on which CPP has been erected at Choudwar, with other term lenders. The loan is collaterally secured by second pari- passu charge on entire current assets of the Company. Repayment by 16 EQI of Rs. 2.175 Crore from June''10 and 20 EQI of Rs. 2.61 Crore from June ''14.

(f) Loan of Rs. 28.00 Crore (PY : Rs. 40.00 Crore) for general capital expenditure, secured by extension of charge over the assets of 30MW Captive Power Plant (CPP) and pari-passu charge on plot no. 43 on which CPP is erected at Choudwar, Cuttack with other term lenders. Repayment by 8 EQI of Rs. 3 Crore from June''14 and 4 EQI of Rs. 4.00 Crore from June''16.

(g) Loan of Rs. 110.00 Crore (PY : Rs. Nil) for 120 MW Power Plant at Choudwar, secured by first charge ranking pari- passu with other term lenders on the Company''s movable & immovable properties, present & future, relating to the 120 MW power plant. Repayment by 38 UQI from June''15.

(h) Loan of Rs. 100.00 Crore (PY : Rs. Nil) for 120 MW Power Plant at Choudwar, secured by first charge ranking pari-passu with other term lenders on the Company''s movable & immovable properties, present & future, relating to the 120 MW power plant. Repayment by 38 UQI from June''15.

(i) Loan of Rs. 70.00 Crore (PY : Rs. Nil) for 120 MW Power Plant at Choudwar, secured by first charge ranking pari-passu with other term lenders on the Company''s movable & immovable properties, present & future, relating to the 120 MW power plant. Repayment by 38 UQI from June''15.

(j) Loan of Rs. 100.00 Crore (PY : Rs. Nil) for 120 MW Power Plant at Choudwar, secured by first charge ranking pari-passu with other term lenders on the Company''s movable & immovable properties, present & future, relating to the 120 MW power plant. Repayment by 38 UQI from June''15.

(k) Loan of Rs. 50.00 Crore (PY : Rs. Nil) for 120 MW Power Plant at Choudwar, secured by first charge ranking pari-passu with other term lenders on the Company''s movable & immovable properties, present & future, relating to the 120 MW power plant. Repayment by 38 UQI from June''15.

(l) Loan of Rs. 1.64 Crore (PY : Rs. Nil) for setting up of Industrial Training Centre (ITC) at Sukinda, secured by mortgage of lease hold right of property situated at Khata No 100, Plot No 238(P), Mauza- Dudhjhari, Sukinda Dist- Jajpur, admeasuring 5 acres and building to be constructed thereon along with the Furniture & Fixtures, Computers and equipments to be purchased out of the loan. Repayment by 24 EQI from September''16.

(m) Loan of Rs. 9.54 Crore (PY : Rs. Nil) for Housing Project at Choudwar, secured by mortgage of residential land admeasuring 10 acres 920 decimal (475675.20 sq fts) situated at Plot No.34/78 & 34/82, Tahsil- TangiChoudwar, PS-Choudwar, Mouza-Chhatisa No.2,Cuttack, Odisha and the proposed building to be constructed. Repayment by 24 UQI from June''16.

(n) Vehicle Loan of Rs. 0.24 Crore (PY : Rs. 0.40 Crore) secured by charge on the Vehicle. Repayment by 60 EMI @ Rs. 65232/- from January''14 to December''18.

(o) Loan of Rs. 7.06 Crore (PY : Rs.15.74 Crore) for acquisition of mining assets, secured by first exclusive charge by way of hypothecation over plant & machinery of 27 MVA furnace at Choudwar. Charge on all the present and future moveable fixed assets of gas cleaning plant & briquetting plant at Therubali, low density aggregate plant and fly ash brick plant I and II at Choudwar. Repayment by 17 EQI from October''11.

(p) Loan of Rs. 54.45 Crore (PY : Rs. 74.25 Crore) for setting up of Briquetting Plant, Gas Cleaning Plant, Fly ash Brick Plant and Low Density Aggregate Plant, secured by first exclusive charge by way of hypothecation over plant & machinery of 27 MVA furnace at Choudwar and charge on all the present and future movable fixed assets of gas cleaning plant & briquetting plant at Therubali, low density aggregate plant and fly ash brick plant I and II at Choudwar. Repayment by 16 EQI from January''14.

(q) Loan of Rs. 59.07 Crore (PY : Rs. Nil) for general capital expenditure, secured by first and exclusive charge by way of hypothecation over plant & machinery of 27 MVA furnace at Choudwar. First and exclusive charge on all the present and future moveable fixed assets of gas cleaning plant & briquetting plant at Therubali, low density aggregate plant and fly ash brick plant I and II at Choudwar. Repayment by 16 EQI from February''16.

Term Loans From Others:

Loan of Rs. 7.63 Crore (PY : Rs. 11.45 Crore) for setting up of winder at Mahagiri Mines, secured by first charge on winder at Mines. Repayment by EMIs from February''13 to November''16.

Note: Term Loans from Banks amounting to Rs. 82.86 Crore (PY : Rs. 127.31 Crore) and Term Loans from Others amounting to Rs. Nil (PY: Rs. 405.77 Crore) are further secured by personal guarantees of 2 directors of the Company.

3. Working Capital Loans from banks are secured by charge over stocks, receivables & current assets. Moreover, loans amounting to Rs. 126.87 Crore (Previous Year : Rs. 73.51 Crore) are further secured by personal guarantees of 2 directors of the Company.

4. The Company has not received any memorandum from ''Suppliers''(as required to be filed by the ''Suppliers'' with the notified authority under the Micro, Small and Medium Enterprises Development Act, 2006) claiming their status as on 31st March, 2015 as micro, small or medium enterprises. Consequently, interest paid/ payable by the Company to such ''Suppliers'' during the year is Rs. NIL (Previous Year : Rs. NIL).

5. The Company has equity investment amounting to Rs. 53.13 Crore (Previous Year Rs. 53.13 Crore) in Indmet Mining Pte Ltd (''Indmet''), a wholly-owned subsidiary incorporated in Singapore. Indmet has investment of USD 8.75 million (Rs. 54.41 Crore)[ Previous year USD 8.75 million (Rs. 52.15 Crore)] in its Indonesian subsidiary PT Sumber Rahayu Indah (''PT Sumber''). PT Sumber is holding a coal mining concession in Indonesia but due to overlapping boundary issues, the mining concession could not be operationalised till now. Indmet''s auditors in their Independent Auditors'' Report dated 14th May, 2015 for the year ended 31st March, 2015 have qualified their audit opinion by stating the following in the ''Basis of Qualified Opinion'' paragraph in their report:

"As disclosed in Note 8 to the financial statements, the subsidiary is currently inactive and awaiting for certain regulatory approval before it can commence coal mining activities. As the discussion with the relevant Indonesian Government

Authorities is ongoing, the management is of the opinion that recoverable amount cannot be ascertained with accuracy. Accordingly, the impairment assessment through value in use has not been prepared. However the management is of the opinion that the cost of the investment would be recovered once the subsidiary starts its mining operations. Accordingly, we are unable to conclude whether there is any impairment loss to the carrying value of the investment in subsidiary".

No provision is considered necessary by the Company at this stage towards any diminution in the aforesaid carrying value of it''s investment in Indmet, as the Company has invoked an agreement between the Indian and Indonesian governments for the promotion and protection of investments.

6. CONTINGENT LIABILITIES AND COMMITMENTS

(Rs. in Crore)

As at As at 31st March 31st March 2015 2014

A. Contingent Liabilities

(a) Claims against the Company not acknowledged as debts:

Government Claims (i) Income Tax (deposits made under 24.74 109.78 protest Rs. 16.47 Crore ; Previous Year Rs. 54.29 Crore [Demands in respect of the Assessement Years 2009- 10 and 2012-13 aggregating to Rs. 181.30 Crore (Previous Year Rs. Nil) pursuant to disallowances under Section 40 (a)(i) of the Income Tax Act, 1961 in respect of the import of the raw materials and spares etc. has not been considered as ''contingent liability'' as the CIT (Appeals) has granted relief to the Company on similar issue while disposing appeals for Assessement Years 2007-08, 2008-09 and 2011-12]

(ii) Customs & Central Excise 0.84 0.76 (deposits made under protest Rs. 0.19 Crore ; Previous Year Rs. 0.18 Crore)

(iii) Provisional duty bonds to customs Amount not Amount not authority pending final debonding of quantifiable quantifiable 100% EOU

(iv) Sales tax & Entry tax (deposits made under protest Rs. 6.38 Crore; 15.56 14.77 Previous Year Rs. 6.00 Crore)

(v) State Govt./Local Authority duties, levies & cess etc. disputed by the 28.49 231.31 Company

Other Claims

Legal suits filed against the Company 0.74 1.53

b) Guarantees :

Guarantee given by the Company to a 91.00 27.50 corporate on behalf of Utkal Coal Ltd, a subsidiary

(c) Other money For which the Company is contingently liable :

(i) Under the provisions of the Electricity Act, 2003, the Odisha Electricity Regulatory Commission (''OERC'') notified on 30.09.2010 the OERC (Renewable and Co-generation Purchase Obligation and its Compliance) Regulations, 2010 (''RCPO''), imposing obligation for purchase of energy from renewal sources and co-generation on, inter alia, any person consuming electricity from it''s Captive Power Plant. A few companies filed writ petitions in Orissa High Court against RCPO on the ground, inter alia, that RCPO cannot be made applicable to captive users and as an interim measure, the Hon''ble High Court granted them stay on the proceedings under RCPO. The Company was, thus, under the impression that RCPO was kept in abeyance as the same was subjudice before the jurisdictional High Court. However, a notice dated 11th November, 2014 was issued by OERC to many entities, including the Company, asking to show cause as to why penal proceedings under Section 142 of the Electricity Act, 2003 should not be initiated against the Company for ''lapses'' in complying with RCPO. On 1st March, 2015, the Company filed a Writ Petition before the Hon''ble Orissa High Court challenging, inter alia, the validity of RCPO and it''s applicability to captive users. The Hon''ble High Court passed an interim order dated 4th March, 2015 staying further proceedings pursuant to RCPO and the said interim order continues. In view of the pending writ petition, no provision has been considered necessary at this stage.

(ii) Demand notices in respect of six mines have been raised by respective Deputy Director of Mines and Mining Officers of Government of Odisha amounting to Rs. 225.14 Crore for the alleged excess extraction of minerals over the quantity permitted under the mining plan/scheme, environmental clearance or consent to operate and other statutory permissions during the period from 1993 to 2010 under Section 21(5) of Mines & Minerals (Development and Regulation) Act, 1957 (''Act''). However, Section 21(5) of the Act specifies that demand can be raised only when the minerals were extracted from the land which is occupied without lawful authority i.e. outside leasehold area. The Company is of the view that Section 21(5) of the Act is not applicable as the mining is done within the leasehold area under the supervision and approval of the State and Central Govt. Hence, the Company filed Revision Applications before Mines Tribunal, New Delhi against all such demands. Stay has been granted by the Mines Tribunal against four (out of six) of such Demand Notices, directing the State Government not to take any coercive action pursuant to the impugned demands. Hearing of the Stay Application for the remaining two notices are yet to take place before the Mines Tribunal.

7. The Hon''ble Supreme Court of India vide judgment dated 25 th August, 2014 read with its order dated 24th September, 2014 cancelled the allocation of coal blocks to various companies, including the ''Utkal C'' coal block held by Utkal Coal Ltd (''UCL''), an SPV in which the Company holds 79.2% equity. Subsequently, on 21st October, 2014 The Coal Mines (Special Provisions) Ordinance, 2014 was promulgated to facilitate, inter alia, auction of coal blocks and compensation to a prior allottee of a coal block. To give continuity to the provisions of the said Ordinance and save the actions taken thereunder, on 26th December, 2014 The Coal Mines (Special Provisions) Second Ordinance, 2014 was promulgated, which was deemed to have come into force on 21st October, 2014 and the earlier Ordinance stood repealed. Further, the Ministry of Coal issued orders dated 18th December, 2014 and 6th January, 2015 to initiate the auction process and change the end use of ''Utkal C'' from captive use (non-regulated sector) to independent power producer(regulated sector). Aggrieved by the above actions of the government, on 13 th February, 2015 UCL filed a Writ Petition before the Hon''ble High Court of Delhi challenging, inter alia, the said orders. UCL has also filed a separate Writ Petition before the Hon''ble High Court of Delhi on 23rd February, 2015 challenging the basis of valuation of compensation and the restrictive interpretation of ''Mine Infrastructure''. The arguments in both the aforesaid writ petitions have been heard by the Hon''ble High Court of Delhi and the judgments have been reserved. Pending final orders on the aforesaid writ petitions, no accounting adjustments have been made by UCL in it''s books of account and no provision is deemed necessary in these financial statements against the Company''s exposure in UCL as at 31st March, 2015 amounting to Rs. 110.88 Crore invested as equity, Rs. 146.44 Crore given as an unsecured loan and Rs. 91 Crore as guarantee to a financial institution for loan availed by UCL.

8. In view of the circumstances detailed in note 31 above and considering the effect of uncertainties as envisaged in paragraph 9 of Accounting Standard 9 on "Revenue Recognition", with effect from 1st October, 2014 the Company has postponed recognition of income from interest on unsecured loan given to UCL. Due to this, profit before tax for the year ended 31st March, 2015 is lower by Rs. 9 Crores. The interest income would be considered as revenue of the period in which it is properly recognised.

(b) Defined Benefit Plan:

The following table sets out the details of amount recognised in the financial statements in respect of employee benefit schemes:

9. As per Accounting Standard 17 on "Segment Reporting", segment information has been provided under the Notes to Consolidated Financial Statements.

(c) Disclosure in respect of Material Related Party Transactions during the year (excluding reimbursements) :

1. Purchase of raw materials and stores etc from Utkal Manufacturing and Services Ltd Rs. 9.17 Crore (Previous Year: Rs. 7.07 Crore)

2. Services received includes services from Utkal Manufacturing and Services Ltd Rs. 78.89 Crore (Previous Year : Rs. 121.61 Crore)

3. Managerial remuneration paid to Dr Bansidhar Panda Rs. 1.44 Crore(Previous Year : Rs. 1.69 Crore), Mr Baijayant Panda Rs. 1.45 Crore (Previous Year : Rs. 1.70 Crore), Mr Subhrakant Panda Rs. 1.63 Crore (Previous Year : Rs. 1.89 Crore), Mr Jayant Kumar Misra Rs. 0.80 Crore (Previous Year : Rs. 0.77 Crore) and Mr Chitta Ranjan Ray Rs. 0.63 Crore (Previous Year : Rs. 0.62 Crore)

4. Donations include amount given to Bansidhar & Ila Panda Foundation Rs. 0.73 Crore (Previous Year : Rs. 2.19 Crore)

5. Corporate Social Responsibility Expenses include amount given to Bansidhar & Ila Panda Foundation Rs. 1.23 Crore (Previous Year : Nil)

6. Lease rentals paid to IMFA Alloys Finlease Ltd Rs. 3.84 Crore (Previous Year : Rs. 3.84 Crore)

7 Interest received on loan Rs. 9.45 Crore (Previous Year : Rs. 5.10 Crore) is from Utkal Coal Ltd.

8. Investments made in Utkal Power Ltd Rs. 0.40 Crore (Previous Year : Nil) and Utkal Coal Ltd Rs. Nil (Previous Year : Rs. 1.96 Crore)

9. Loan given to Utkal Coal Ltd Rs. 27.20 Crore (Previous Year : Rs. 203.05 Crore)

10 Loan repayment received from Utkal Coal Ltd Rs. 66.30 Crore (Previous Year : Rs. 17.52 Crore)

11 Guarantee provided to Financial Institution for loan availed by Utkal Coal Ltd Rs. 91.00 Crore (Previous Year : Rs. 27.50 Crore)

12 Guarantee received from Indmet Mining Pte Ltd Rs. 7.06 Crore (Previous Year : Rs. 15.74 Crore)

10. Disputes between the Company and Grid Corporation of Orissa Ltd ("GRIDCO") relating to methodology for billing of power, wheeling of power, back-up power drawn during period of grid disturbance etc. were settled in favour of the Company vide a unanimous award of an Arbitral Tribunal dated 23rd March, 2008, by virtue of which GRIDCO was directed to pay Rs. 57.07 lakh along with interest and Rs. 30 lakh towards costs. Subsequently, GRIDCO filed a petition before the District Judge, Bhubaneswar objecting the award and obtained an interim stay on the operation of the said award. The Company filed it''s objection thereto on 19 th February, 2009 and the matter is pending for hearing.

The Company has not given effect of the aforesaid award in it''s books of account on the principles of prudence, as the matter is sub-judice.

11. In the arbitration proceedings relating to a party''s conversion contract with the erstwhile Indian Charge Chrome Ltd ("ICCL", amalgamated with the Company w.e.f 1st April, 2005 pursuant to Hon''ble Orissa High Court''s order dated 13th October, 2006), an interim award was passed on 9th January, 2003 upholding issues in ICCL''s favour, without quantification of the amount payable to ICCL towards it''s various claims of losses/damages, which is to be determined by the appointment of a Chartered Accountant or other expert. The Party filed a petition before the Hon''ble High Court at Calcutta on 4th February, 2004 praying to set aside the interim award and the Company filed objection thereto The matter is pending before the Hon''ble High Court at Calcutta.

12. Pursuant to the order of Hon''ble Orissa High Court dated 21st April 2005, the Company was paying electricity duty at 6 paise per unit to the Govt. of Orissa and keeping the differential duty of 14 paise per unit in a separate ''no lien account'' till final disposal of it''s writ petition. The Hon''ble Orissa High Court disposed the said writ petition vide judgment dated 6 th May, 2010 by directing the Company to deposit the differential amount of duty lying in no lien account with the State Exchequer. The Company preferred an appeal before the Hon''ble Supreme Court of India against the judgment of Orissa High Court. The Hon''ble Supreme Court vide its order dated 7th February, 2011 directed the company to continue the payment in the same manner but to deposit the differential amount of 14 paise per unit in an Escrow account instead of ''no lien account'' till final disposal of the appeal. Accordingly, the Company is paying the balance 14 paise per unit in an escrow account (non-interest bearing current account) with State Bank of India from January, 2011 onwards. Subsequently, based on a direction received on 9th January 2015 from Govt. of Odisha, the Company is keeping the Escrow amount in an interest bearing fixed deposit linked to escrow current account with effect from 21st March, 2015.

However, on the principles of prudence, the Company is fully providing for Electricity Duty @ 20 paise per unit in it''s books of account, on accrual basis.

13. With reference to a Right of Recompense (''ROR'') dispute with Andhra Bank, the Hon''ble Orissa High Court, based on Company''s application, vide it''s Order dated 18th March, 2015, directed the Company and Andhra Bank to resolve the issues relating to the amount of recompense payable to Andhra Bank on the basis of the principles laid down in the Order, preferably within a period of two months and there after the bank shall consider the issue of No Objection Certificate and vacate the charge by following it''s own procedures. To give effect to the directions of the Hon''ble High Court, the Company has initiated discussions with Andhra Bank.

The Company has paid Rs. 1.35 Crore to the bank, on the basis of the earlier orders passed by the Hon''ble Orissa High Court from time to time, prior to the aforesaid final order dated 18th March, 2015 and is of the opinion that the final recompense amount will not exceed the amount which has been already paid to the bank against recompense amount.

14. The Company had filed a petition before the Hon''ble Orissa High Court under Section 392 of the Companies Act, 1956 to modify the Scheme of Arrangement & Amalgamation and confirm the reduction of share capital by cancellation of 3,49,466 equity shares of Rs. 10/- each held by erstwhile ''ICCL Shareholders Trust''. The petition was approved by the Hon''ble High Court vide its order dated 16th March, 2011 and registered with the Registrar of Companies (ROC), Orissa on 1st April, 2011. Accordingly, the paid up equity share capital reduced from Rs. 26,32,65,190/- divided into 2,63,26,519 equity shares of Rs. 10/- each to Rs. 25,97,70,530/- divided into 2,59,77,053 equity shares of Rs. 10/- each. Subsequently, several shareholders challenged the reduction of share capital before a Division Bench of the Hon''ble High Court which, vide its judgement dated 19 th July 2011, directed the Company, inter-alia, to restore the aforesaid shares to the Trust and allot it to interested shareholders. The Company then moved the Hon''ble Supreme Court which issued notice in the matter and granted interim stay on the subscription or cancellation of the said 3,49,466 shares. As such, status quo is to be maintained until further orders.

15. Prior Period Income relates to adjustment for interest on Income-Tax refunds.

16. In accordance with the requirements of Schedule II to the Companies Act, 2013, the Company reassessed the remaining useful life of tangible fixed assets with effect from 1st April, 2014. Accordingly, the carrying values as on that date (net of residual values) are depreciated over their assessed remaining useful lives. As a result of this change, the depreciation charge for the year ended 31st March, 2015 is lower by Rs. 28.67 Crore. Further, as on 1st April, 2014, the carrying amount of assets (after retaining the residual value) amounting to Rs. 5.22 Crore, where remaining useful life is nil as on that date, has been recognised in the Statement of Profit and Loss as an exceptional item.

17. Previous year''s figures have been rearranged/ regrouped to conform to the classification of the current year, wherever considered necessary.

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Mar 31, 2013

1.1 Disputes with Gridco were settled in favour of the Company vide a unanimous award of the Arbitration Panel dated 23rd March 2008. Subsequently, Gridco filed a petition before the District Judge, Bhubaneswar and obtained an interim stay on the operation of the said award. The Company has filed its objection in the matter.

1.2 In the arbitration proceedings relating to Tata Steel reneging on a conversion contract with the Company, an interim order was passed in January 2003 upholding all issues in the Company''s favour without however quantifying the amount to be paid as damages by Tata Steel. The matter is now pending before the Hon''ble High Court of Kolkata.

1.3 An amount of Rs. 11.39 Crores withheld by Sundry debtors, the effect of which on the current year''s account cannot be ascertained pending settlement thereof.

1.4 Pursuant to the order of Hon''ble High Court of Orissa dated 21st April 2005 the Company was paying electricity duty at 6 paise per unit to the Govt of Orissa and keeping the differential duty of 14 paise per unit in a separate ''no lien account'' till final disposal of the writ petition. The Hon''ble High Court of Orissa disposed the said writ petition vide judgment dated 6th May 2010 by directing the Company to deposit the differential duty amount lying in no lien account with the State Exchequer. Hence the Company preferred an appeal before the Hon''ble Supreme Court of India. The Hon''ble Supreme Court vide its order dated 7th February 2011 directed the Company to continue the payment in the same manner but to deposit the differential amount of 14 paise per unit in an Escrow account instead of no lien account till final disposal of the appeal. Accordingly, the Company is paying the balance 14 paise per unit in an escrow account with State Bank of India from February 2011 onwards.

1.5 Pursuant to a Scheme of Arrangement and Amalgamation sanctioned by Hon''ble Orissa High Court vide its order dated 13th October 2006 Indian Charge Chrome Limited ("ICCL") a group Company was amalgamated with the Company and debts of erstwhile ICCL became the liability of the Company. The Company has paid the entire settlement amount by accelerating the payments to all the secured creditors. However Andhra Bank, vide its notice dated 3rd April 2010, alleged that the right of recompense payable by the Company is Rs. 58.09 Crores and called upon the Company to pay the said amount within 15 days failing which threatened to institute recovery proceedings before DRT, Cuttack. The Company thereafter filed an application under section 392 of the Companies Act before the Hon''ble Orissa High Court, in respect of the claim of Andhra Bank towards recompense amount etc. and the Hon''ble Orissa High Court vide its order dated 9th April 2010 directed that no coercive action shall be taken against the Company pursuant to the demand notice. The Company has been advised that the case of Andhra Bank has no merit.

1.6 The Company had filed a petition before the Hon''ble Orissa High Court under Section 392 of the Companies Act, 1956 to modify the Scheme of Arrangement & Amalgamation and confirm the reduction of share capital by cancellation of 3,49,466 equity shares of Rs. 10/- each held by ''Erstwhile ICCL Shareholders Trust''. The petition was approved by the Hon''ble High Court vide its order dated 16th March 2011 and registered with the Registrar of Companies (ROC), Orissa on 1st April 2011. Accordingly, the paid up equity share capital reduced from Rs. 26,32,65,190/- divided into 2,63,26,519 equity shares of Rs. 10/- each to Rs. 25,97,70,530/- divided into 2,59,77,053 equity shares of Rs. 10/- each. Subsequently, several shareholders challenged the reduction of share capital before a Division Bench of the Hon''ble High Court which vide its judgement dated 19th July 2011 directed the Company inter-alia to restore the aforesaid shares to the Trust and allot it to interested shareholders. The Company then moved to the Hon''ble Supreme Court which issued notice in the matter and granted interim stay on the subscription or cancellation of the said 3,49,466 shares. As such, status quo is to be maintained until further orders.

1.7 All the formalities regarding voluntary winding up of Indmet Mauritius Limited has been completed under the Law of Mauritius including no objection from all the regulatory authorities and the swearing in of the affidavit by the official liquidator for the same at Supreme court was made on 30th January 2013 . Consequently all the shares of Indmet Mining (Pte) Ltd. held by Indmet Mauritius Ltd. has been trasferred to the Company at par value during the year. Accordingly Indmet Mining (Pte) Ltd. (earlier 100% step down subsidiary) has become wholly owned subsidiary of the Company. Hence we have not considered it as subsidiary for the consolidated accounts as on 31st March 2013.

1.8 Provision for Income Tax for the current year and for the assessments completed but pending under appeals have been made to the extent considered necessary by the management.

1.9 The Company has been providing employee benefits as per Accounting Standard - 15 based on the actuarial valuation under the projected unit credit method.

1.10 Segment Reporting

Segments are being identified on the basis of dominant source and nature of risks and returns. Industry segments at the Company are primarily Ferro Alloys, Power & Chrome Ore Mining. The segments which are not required to be reported are grouped under ''Others''. Income, direct expenses and fixed assets in relation to segments are categorised based on items that are individually identifiable to that segment. The remainder are separately grouped as "Unallocated".

1.11 Related Party Disclosures

Disclosures as required by the Accounting Standard - 18 "Related Party Disclosures" are given below:

(a) List of related parties:

Subsidiaries:

1 Indian Metals & Carbide Ltd.

2 Utkal Power Ltd.

3 Utkal Coal Ltd.

4 IMFA Alloys Finlease Ltd.

5 Utkal Green Energy Ltd.

6 Indmet Mining ( Pte ) Ltd. , Singapore

7 PT. Sumber Rahayu Indah,Indonesia Associates:

1 B Panda & Company Pvt. Ltd.

2 Madhuban Investment Pvt. Ltd.

3 Barabati Investment & Trading Company Pvt. Ltd.

4 K B Investment Pvt. Ltd.

5 Paramita Investment & Trading Company Pvt. Ltd.

6 Panda Investment Pvt. Ltd.

7 Utkal Charitable Trust

8 Indian Metals Public Charitable Trust

9 Utkal Manufacturing & Services Ltd.

10 Utkal Housing and Infrastructure Development Ltd.

11 B Panda Trust

12 Utkal Real Estate Pvt. Ltd.

13 B.P.Solar Pvt. Ltd.

14 Esquire Realtors Pvt. Ltd.

15 Bansidhar & Ila Panda Foundation

16 Kishangarh Enviromental Development Action Pvt. Ltd.

17 BP Developers Pvt. Ltd.

18 Barabati Realtors Pvt. Ltd.

19 KEDA Enterprise Pvt. Ltd.

20 Ortel communications Ltd.

21 Metro Skynet Ltd.

22 Rutayan Ila Trust

23 Shaisah Foundation

24 Goal Oriented Advisory & Legal Services Pvt. Ltd.

25 Paramita Realtors Pvt. Ltd.

26 Odisha Television Ltd.

27 Barunei Farm & Nature Resorts Pvt. Ltd.

28 Starone Projects Pvt. Ltd.

29 Orissa Coal & Services Pvt. Ltd.

30 INDMET Commodities Pvt. Ltd.

31 Palios Corporation

32 Commercial City Centre Pvt. Ltd.

33 Carolina Consulting Pvt. Ltd.

34 Kalinga Airways Pvt. Ltd.

35 Rairae Realtors Pvt. Ltd.

36 Odisha Infratech (P) Ltd.

37 Orissa Telefilms (P) Ltd.

38 TarangBroadcastingCompanyLtd.

39 Ortel Dayitwa CharitableTrust

40 Raila Enterprises Pvt. Ltd.

41 M S Realtors Pvt. Ltd.

42 Awaaz Foundation

43 Span Resources India (P) Ltd.

44 Nilanchal Aqua Farms Pvt. Ltd.

45 RoumayneFoundation

46 Reva Foundation

47 Spark Mineral & Services LLP

Key Management Personnel and Relatives:

- DrB Panda

- Mr Baijayant Panda

- Mrs Jagi Mangat Panda

- Mr Subhrakant Panda

- Mrs Shaifalika Panda

- Mrs Paramita Mahapatra

- Mr Rajen Mahapatra

- Mrs Nivedita Ganapathi

- Mr S K Ganapathi

- Mr J K Misra

- Mr C R Ray

1.12 Lease

Operating Lease:

The Company''s significant operating leasing arrangements are in respect of premises only which are renewable at the option of both the lessor & the lessee. The aggregate lease rentals payable are charged as ''rent'' and the aggregate lease rentals receivable are credited as ''rent realised'' in the financial statements.

1.13 Previous year''s figures have been regrouped/recast wherever considered necessary.

1.14 The Company has sold its 30 MVA Furnace and other related assets to its wholly owned subsidiary IMFA Alloys Finlease Limited (IAFL) at fair value. Thereafter IAFL transferred the same assets back to the Company under a Finance Lease . The difference between the book value and the fair value including the sales tax impact amounting to Rs. 11.99 Crores has been shown as exceptional items. Subsequently in pursuance to a Joint venture & shareholders agreement between the Company and Posco,South Korea ,Posco acquired 24% of Shares of IAFL and balance 76% shares remained with the Company.

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Mar 31, 2012

1.1 PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.

2.1 Disputes with Gridco were settled in favour of the Company vide a unanimous award of the Arbitration Panel dated 23rd March 2008. Subsequently , Gridco filed a petition before the District Judge , Bhubaneswar and obtained an interim stay on the operation of the said award. The Company has filed its objection in the matter.

2.2 In the arbitration proceedings relating to Tata Steel reneging on a conversion contract with the Company, an interim order was passed in January 2003 upholding all issues in the Company's favour without however quantifying the amount to be paid as damages by Tata Steel. The matter is now pending before the Hon'ble High Court of Kolkata.

2.3 An amount of Rs 11.39 crores withheld by Sundry debtors, the effect of which on the current year's account cannot be ascertained pending settlement thereof.

2.4 Pursuant to the order of Hon'ble High Court of Odisha dated 21st April 2005 the Company was paying electricity duty at 6 paise per unit to the Govt of Odisha and keeping the differential duty of 14 paise per unit in a separate 'no lien account' till final disposal of the writ petition. The Hon'ble High Court of Odisha disposed the said writ petition vide judgment dated 6.5.2010 by directing the Company to deposit the differential duty amount lying in no lien account with the State Exchequer. Hence the Company preferred an appeal before the Hon'ble Supreme Court of India. The Hon'ble Supreme Court vide its order dated 7.2.2011 directed the company to continue the payment in the same manner but to deposit the differential amount of 14 paise per unit in an Escrow account in stead of no lien account till final disposal of the appeal. Accordingly, the Company is paying the balance 14 paise per unit in an escrow account with State Bank of India from February 2011 onwards.

2.5 Pursuant to a Scheme of Arrangement and Amalgamation sanctioned by Hon'ble Odisha High Court vide its order dated 13.10.2006 Indian Charge Chrome Limited ("ICCL") a group company was amalgamated with the Company and debts of erstwhile ICCL became the liability of the Company. The Company has paid the entire settlement amount by accelerating the payments to all the secured creditors. However Andhra Bank, vide its notice dated 03.04.2010, alleged that the right of recompense payable by the Company is Rs 58.09 crores and called upon the Company to pay the said amount within 15 days failing which threatened to institute recovery proceedings before DRT, Cuttack. The Company thereafter filed an application under section 392 of the Companies Act before the Hon'ble Odisha High Court, in respect of the claim of Andhra Bank towards recompense amount etc. and the Hon'ble Odisha High Court vide its order dated 09.04.2010 directed that no coercive action shall be taken against the company pursuant to the demand notice. The Company has been advised that the case of Andhra Bank has no merit.

2.6 Indmet Mauritius Limited a 100 % Subsidiary of the Company has applied for voluntary winding up of the company. Consequently all its assets & liabilities including the shares of Indmet Mining Pte Ltd, Singapore would be transferred to IMFA from the effective date upon completion of winding up proceedings & as permitted under the Mauritius law. The loss on this account is Rs 0.12 Crore.

2.7 Pursuant to the Composite Scheme of Arrangement & Amalgamation, 8,64,902 shares were allotted to 'Erstwhile ICCL Shareholders Trust' and made available by the Trustees at Rs. 50/- per share to the small shareholders. However, in spite of extensions/reminders only 5,15,436 shares were subscribed leaving 3,49,466 shares as unsubscribed. The Company fi led a petition to the Hon'ble High Court of Odisha, Cuttack under Section 392 of the Companies Act, 1956 seeking the approval to modify the Scheme of Arrangement & Amalgamation by confirming the reduction of share capital by cancellation of 3,49,466 equity shares of Rs.10/- each held by erstwhile ICCL Shareholders Trust. The petition was approved by Hon'ble High Court of Odisha by an order dated 16th March 2011 and registered with Registrar of Companies (ROC), Odisha on 1st April, 2011. Accordingly the paid up equity share capital has reduced from Rs.26,32,65,190/- (Rupees twenty six crore thirty two lakhs sixty five thousand one hundred ninety only) divided into 2,63,26,519 equity shares of Rs.10/- each to Rs.25,97,70,530/- (Rupees twenty five crore ninety seven lakhs seventy thousand five hundred thirty only) divided into 2,59,77,053 equity shares of Rs.10/- each in the current year 2011-12.

2.8 Provision for Income Tax for the assessments completed which are pending under appeals and for the current year have been made to the extent considered necessary by the management.

2.9 The Company has been providing employee benefits as per Accounting Standard – 15 based on the actuarial valuation under the projected unit credit method.

2.10 SEGMENT REPORTING

Segments are being identified on the basis of dominant source and nature of risks and returns. Industry segments at the company are primarily Ferro Alloys, Power & Chrome Ore mining. The segments which are not required to be reported separately are grouped under 'Others'.

2.11 RELATED PARTY DISCLOSURES

Disclosures as required by the Accounting Standard – 18 "Related Party Disclosures" are given below:

(a) List of related parties:

Subsidiaries:

1 Indian Metals & Carbide Ltd

2 Utkal Power Ltd

3 Utkal Coal Ltd

4 IMFA Alloys Finlease Ltd

5 Utkal Green Energy Ltd

6 Indmet (Mauritius) Ltd

7 Indmet Mining ( Pte ) Ltd, Singapore

8 PT. Sumber Rahayu Indah, Indonesia

Associates:

1 B Panda & Company Pvt Ltd

2 Madhuban Investment Pvt Ltd

3 Barabati Investment & Trading Company Pvt Ltd

4 K B Investment Pvt Ltd

5 Paramita Investment & Trading Company Pvt Ltd

6 Panda Investment Pvt Ltd

7 Utkal Charitable Trust

8 Indian Metals Public Charitable Trust

9 Utkal Manufacturing & Services Ltd

10 Utkal Housing and Infrastructure Development Ltd

11 B Panda Trust

12 Utkal Real Estate Pvt Ltd

13 B.P.Solar Pvt Ltd

14 Esquire Realtors Pvt Ltd

15 Bansidhar & Ila Panda Foundation

16 Kishangarh Enviromental Development Action Pvt Ltd

17 BP Developers Pvt Ltd

18 Barabati Realtors Pvt Ltd

19 KEDA Enterprise Pvt Ltd

20 Ortel communications Ltd

21 Metro Skynet Ltd

22 Rutayan Ila Trust

23 Shaisah Foundation

24 Goal Oriented Advisory & Legal Services Pvt Ltd

25 Paramita Realtors Pvt Ltd

26 Odisha Television ltd

27 Barunei Farm & Nature Resorts Pvt Ltd

28 Starone Projects Pvt Ltd

29 Odisha Coal & Services Pvt Ltd

30 INDMET Commodities Pvt Ltd

31 Palios Corporation

32 Commercial City Centre Pvt Ltd

33 Carolina Consulting Pvt Ltd

Key Management Personnel and Relatives:

1 Dr. B. Panda

2 Mr. Baijayant Panda

3 Mrs. Jagi Mangat Panda

4 Mr. Subhrakant Panda

5 Mrs. Shaifalika Panda

6 Mrs. Paramita Mahapatra

7 Mr. Rajen Mahapatra

8 Mrs. Nivedita Ganapathi

9 Mr. K.G. Ganapathi

10 Mr. J. K. Misra

NOTE: Figures in brackets represent corresponding amounts of previous year.

2.12 LEASE

The Company's significant leasing arrangements are in respect of operating leases for premises only which are renewable at the option of both the lessor & the lessee. The aggregate lease rentals payable are charged as 'rent' and the aggregate lease rentals receivable are credited as 'rent realised' in the financial statements.

Total lease payments recognized in the profit & loss account during the year 2011-12 is Rs. 1.79 crores.

2.13 Micro, Small and Medium Enterprises Development Act

The Company has not received intimation from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006.Consequently the amount paid/payable to these parties during the year is nil.

2.14 Previous year's figures have been regrouped/recast wherever considered necessary.

2.15 As notified by Ministry of Corporate Affairs, Revised Schedule VI under the Companies Act , 1956 is applicable to the financial statements for the financial year commencing on or after Ist April, 2011. Accordingly, the financial statements for the year ended March 31, 2012 are prepared in accordance with the Revised schedule VI. The amounts & disclosures included in the financial statements of the previous year have been reclassified to conform to the requirements of Revised Schedule VI.

The figures of Indmet Mauritius Ltd, Indmet Mining (Pte) Ltd & PT Sumber Rahayu Indah have been converted to INR at an exchange rate of INR 50.67/USD.

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Mar 31, 2010

1. Demerger of Ferro Alloys Division (FAD) of Utkal Manufacturing & Services Ltd (UMSL)

In accordance with the terms of the Scheme of Arrangement as sanctioned by the Honble High Court of Orissa, Cuttack and the Honble High Court of Andhra Pradesh vide their orders dated 24.11.2009 and 06.11.2009 respectively, the entire Ferro Alloys Division of Utkal Manufacturing & Services Limited have been transferred to and vested in the Company with effect from 1st April 2009, which is the Appointed Date under the Scheme.

The share exchange ratio for the demerger has been determined by SSPA & Co. Chartered Accountants. Based on their recommendation 28 (Twenty eight) fully paid-up equity share of Rs.10 (Ten) each of the Company have been issued and allotted for every 9 (Nine) fully paid-up equity share of Rs.10 (Ten) each held by the equity shareholders of UMSL.

As per the Scheme the excess of Rs 31.46 crores being the aggregate value of assets over the aggregate value of liabilities taken over by the company after adjusting the face value of equity shares issued has been transferred to General Reserve.

2. The Arbitral Tribunal which went into the various disputes between the Company and Gridco unanimously decided in favour of the Company vide its award dated 23rd March 2008. However, Gridco subsequently filed a petition before the Honble District Judge, Bhubaneswar for setting aside the same and obtained an ex-parte interim order staying the operation of the award. Since the Company has filed an objection and is confident of the ultimate outcome being in its favour, no provision has been deemed necessary for the counter-claim of Rs 247.35 crores by Gridco.

3. In the arbitration proceedings relating to Tata Steel reneging on a conversion contract with the Company, an interim order was passed in January 2003 upholding all issues in the Companys favour without however quantifying the amount to be paid as damages by Tata Steel. The matter is now pending before the Honble High Court of Kolkata.

4. Sundry Debtors include withheld amount of Rs 1.50 crores by GRIDCO (formerly OSEB) and Rs 9.89 crores by Tata Steel pending settlement of their disputes.

5. The Company has been calculating and paying electricity duty on a provisional basis at the rate of 12 paise per unit. However, the Government of Orissa has been demanding such duty at the rate of 20 paise per unit. The difference up to 31st March, 2005 aggregating to Rs 26.66 crores has been fully provided for in the accounts. However, the Company received a notice dated 10th December, 2004 demanding a sum of Rs 43.59 crores up to 30th October, 2004 towards electricity duty worked out at 20 paise per unit inclusive of interest @ 18% per annum after appropriating the provisional payments made by the Company towards interest and thereafter towards principal. The Company challenged the said demand and refuted liability to pay interest and filed a petition before the Honble High Court of Orissa challenging the notice issued by the said authority. The Honble High Court directed payment of electricity duty at 6 paise per unit to the Govt of Orissa and to keep the differential duty of 14 paise per unit in a separate no lien account1 till the case is further heard and decided. Accordingly, the Company is paying electricity duty at 6 paise per unit effective 1st April, 2005 and maintaining the balance 14 paise per unit in a no lien account with State Bank of India. In as much as the Company has paid the electricity duty at higher rates on provisional basis well before the due date, the question of payment of interest does not arise and hence no additional provision is considered necessary.

6. Pursuant to a Scheme of Arrangement, Amalgamation and Reduction of Share Capital sanctioned by Honble Orissa High Court vide its order dated 13.10.2006 a group company of the Company Indian Charge Chrome Limited ("ICCL") was amalgamated with the Company. Under the said Scheme debts of all the secured creditors of erstwhile ICCL were settled and rescheduled and the Settlement Amount became the liability of the Company under the Scheme consequent upon amalgamation of ICCL into the Company. The Company has paid the entire settlement amount by accelerating the payments to all the secured creditors except Punjab National Bank. However, one of the secured creditors namely Canara Bank has filed an Recovery Petition Case No. 15 of 2007 before Debt Recover Tribunal, Cuttack ("DRT") for recovery of Rs 93.01crores being the original amount due to it alleging breach of certain terms of the settlement by the Company essentially in payment of recompense amount payable to Canara Bank under the Scheme. The Company thereafter filed an application under Section 392 of the Companies Act before the Honble Orissa High Court, inter-alia, for clarification/modification to the effect that the contention of the Canara Bank is not tenable. The Honble Orissa High Court vide its order dated 14.05.2009 restrained Canara Bank from pursuing any further its aforesaid RP Case No. 15 of 2007 before DRT. The said application was heard by the Honble Orissa High Court and its order thereon was reserved on 13.01.2010. The Company has been advised that the case of Canara Bank has no merit.

7. Provisions for Income Tax liability for the assessments completed which are pending under appeals and for the current year have been made to the extent considered necessary by the management.

8. The Company has been providing employee benefits as per Accounting Standard - 15 based on the actuarial valuation under the projected unit credit method.

9. Segment Reporting

Segments are being identified on the basis of dominant source and nature of risks and returns. Industry segments at the company are primarily Ferro Alloys, Power & Chrome Ore mining.

10. Related Party Disclosures

Disclosures as required by the Accounting Standard - 18 "Related Party Disclosures" are given below: (a) List of related parties

Subsidiaries

1. Indian Metals & Carbide Limited 2. Utkal Power Limited 3. Utkal Coal Ltd 4. IMFA Alloys Ltd

Associates

1. B Panda & Company Private Ltd 2. Madhuban Investment Private Ltd 3. Barabati Investment & Trading Company Private Ltd 4. KB Investment Private Ltd 5. Paramita Investment & Trading Company Private Ltd 6. Panda Investment Ltd 7. Utkal Charitable Trust 8. Indian Metals Public Charitable Trust 9. Utkal Manufacturing & Services Ltd 10. Utkal Housing and Infrastructure Development Ltd 11. B Panda Trust

Key Management Personnel and Relatives

1. DrB. Panda 2. Mr Baijayant Panda 3. Mrs Jagi Mangat Panda 4. Mr Subhrakant Panda 5. Mrs Shaifalika Panda 6. Mrs Paramita Mahapatra 7. Mr Rajen Mahapatra 8. Mr J. K. Misra

12. Lease

The Companys significant leasing arrangements are in respect of operating leases for premises only which are renewable at the option of both the lessor & the lessee. The aggregate lease rentals payable are charged as rent and the aggregate lease rentals receivable are credited as rent realised in the financial statements.

15. Micro, Small and Medium Enterprises Development Act

The Company has not received intimation from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006.Consequently the amount paid/payable to these parties during the year is nil.

17. The newly incorporated wholly owned Subsidiary Co. IMFA Alloys Limited has not been considered for consolidation, as the duration of its financial year ending on 31.03.2010 is less than the duration of the financial year of the company with reference to Sec 212(2)(d)of the Companies Act 1956. As such the particulars in respect of the Subsidiary Co. pursuant to Sec 212(1) of the Companies Act 1956 is not appended to the Balance Sheet.

18. Previous years figures have been regrouped/recast wherever considered necessary. 19.Schedule A to 0 form integral part of the account and have been duly authenticated.