Notes to Accounts of Indsil Hydro Power and Manganese Ltd.

Mar 31, 2025

2.16 Provisions, Contingent Liabilities and Contingent
Assets

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it
is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the statement of
profit or loss net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a
current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in
the provision due to the passage of time is recognized as a finance cost.

A contingent liability is disclosed when:

(a) a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events not wholly within the control of the Company; or

(b) a present obligation that arises from past events but is not recognized because:

(i) it is not prob able that an out flow of resources embodying economic benefits will be required to settle the obligation;
or

(ii) the amount of the obligation cannot be measured with sufficient reliability.

A contingent asset is disclosed, when there is a possible asset that arises from past events and whose existence will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of
the Company.

Contingent liabilities and assets are not recognized but are disclosed in notes.

2.17 Government Grants

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached
conditions will be complied with. When the grant relates to an expense item, it is recognised as income on a systematic basis
over the periods that the related costs, for which it is intended to compensate, are expensed. Grant related to expenses are
deducted in reporting the related expense.

2.18 Non-current assets (or disposal groups) classified as held for sale

Non-current assets or disposal groups comprising of assets and liabilities are classified as ‘held for sale’ when all the following
criteria are met: (i) decision has been made to sell, (ii) the assets are available for immediate sale in its present condition, (iii)

the assets are being actively marketed and (iv) sale has been agreed or is expected to be concluded within 12 months of the
Balance Sheet date.

Subsequently, such non-current assets and disposal groups classified as ‘held for sale’ are measured at the lower of its
carrying value and fair value less costs of disposal. Non-current assets held for sale are not depreciated or amortised.

2.19 Earning Per Share

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Company by
the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed
by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares
considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could
have been issued upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted
as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently
for each period presented.

The Weighted average number of equity shares outstanding during the period is adjusted for events of bonus issue, buy back of
shares, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares).

2.20 Recent Accounting Pronouncements

The Ministry of Corporate Affairs (MCA) in consultation with National Financial Reporting Authority (NFRA) vide its notification
dated 23 March 2022, has made certain amendments in Companies (Indian Accounting Standard Rules), 2015. Such
amendments shall come into force with effect from 1 April 2022, but do not have a material impact on the financial statements
of the Company.

(i) Ind AS 103: Business combination

The amendments specify that to qualify for recognition as part of applying the acquisition method, the identifiable assets
acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for
Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered
Accountants of India at the acquisition date. These changes do not significantly change the requirements of Ind AS 103.

This Company does not expect the amendment to have any significant impact in it ’s Financial Statements.

(ii) Ind AS 37: Provisions, Contingent Liabilities, and Contingent Assets

The amendments specif y that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the contract ’.
Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct
labour, materials) or an allocation of other costs that relate directly to fulfilling contracts.

Since Company’s current practice is in line with the clarifications issued, there may not be material effect on the financial
statements of the Company.

(iii) Ind AS 109: Financial Instruments

The amendment clarifies which fees an entity includes when it applies the ‘10 percent’ test of Ind AS 109 in assessing
whether to derecognise a financial liability. Since Company current practice is in line with the clarifications issued, there
may not be material effect on the financial statements of the Company.

(iv) Ind AS 16: Property, Plant and Equipment

The amendments mainly prohibit an entity from deducting from the cost of property, plant and equipment amounts
received from selling items produced while the company is preparing the asset for its intended use. Instead, an entity will
recognise such sales proceeds and related cost in profit or loss. The Company does not expect the amendments to have
any impact on the financial statements.

b) There was a contingent liability amounting to '' 6209 Lakhs relating to a levy of electricity duty on the Company’s erstwhile
Thermal Power Plant situated at Raipur, Chattosgarh State. While the Company has obtained a stay from the High Court
of Chattisgarh against recovery of dues, the Company in the meanwhile settled the entire princpal amount to the Govern¬
ment of Chattisgarh to the tune of '' 957 lakhs which was paid in FY 2024-25. According to the policies of Government
of Chattisgarh, the Company is eligible for exemption from interest payment and the Company has applied for the same
and is awaiting orders.

c) There are dues relating to KVAT, '' 771.03 Lakhs for the year 2012-13''468.34 lakhs for FY 2013-14''3,258.10 lakhs for
FY 2014-15. Relating to CST '' 45.95 lakhs for the FY 2016-17

Financial risk management

Financial risk factors

The Company ’s principal financial liabilities comprise of borrowings, trade and other payables. The main purpose of these finan¬
cial 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 manage¬
ment oversees the management of these risks.

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.

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 op¬
erating 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.

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 in¬
terest 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.

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.

2.44 Other Statutory Information:

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

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

(iii) The Group 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.

(iv) The Company has not provided any guarantee or security / granted loans and advances in nature of loans, secured
or unsecured to Companies, firms, LLP or Other Parties.

The MCA vide notification dated 24^th March, 2021 has amended Schedule III to the Companies Act, 2013 in respect of
certain disclosures. Amendments are applicable from 1^st April, 2021. The Group has incorporated the changes as per the
said amendment in the financial statements and has also changed comparative numbers wherever it is applicable.

As per our report of even date For and on Behalf of the Board

For DIVYA K.R. AND ASSOCIATES

Chartered Accountants

Firm Registration No: 027280S VINOD NARSIMAN K.RAMAKRISHNAN

Whole-time Director Whole-time Director

^{DIVYA K}.^R. DIN : 00035746 DIN : 02797842

Proprietor

Membership No : 228896

R.MUTHIAH U.KALIDOSS

^{Place : Coimbatore} Chief Financial Officer Company Secretary

Date : 28.05.2025

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Mar 31, 2024

2.17 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the statement of profit or loss net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

A contingent liability is disclosed when:

(a) a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Company; or

(b) a present obligation that arises from past events but is not recognized because:

(i) it is not prob able that an out flow of resources embodying economic benefits will be required to settle the obligation; or

(ii) the amount of the obligation cannot be measured with sufficient reliability.

A contingent asset is disclosed, when there is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.

Contingent liabilities and assets are not recognized but are disclosed in notes.

2.18 Government Grants

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. Grant related to expenses are deducted in reporting the related expense.

2.19 Non-current assets (or disposal groups) classified as held for sale

Non-current assets or disposal groups comprising of assets and liabilities are classified as ‘held for sale’ when all the following criteria are met: (i) decision has been made to sell, (ii) the assets are available for immediate sale in its present condition, (iii) the assets are being actively marketed and (iv) sale has been agreed or is expected to be concluded within 12 months of the Balance Sheet date.

Subsequently, such non-current assets and disposal groups classified as ‘held for sale’ are measured at the lower of its carrying value and fair value less costs of disposal. Non-current assets held for sale are not depreciated or amortised.

2.20 Earning Per Share

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

The Weighted average number of equity shares outstanding during the period is adjusted for events of bonus issue, buy back of shares, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares).

2.21 Recent Accounting Pronouncements

The Ministry of Corporate Affairs (MCA) in consultation with National Financial Reporting Authority (NFRA) vide its notification dated 23 March 2022, has made certain amendments in Companies (Indian Accounting Standard Rules), 2015. Such amendments shall come into force with effect from 1 April 2022, but do not have a material impact on the financial statements of the Company.

(i) Ind AS 103: Business combination

The amendments specify that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change the requirements of Ind AS 103.

This Company does not expect the amendment to have any significant impact in it ’s Financial Statements.

(ii) Ind AS 37: Provisions, Contingent Liabilities, and Contingent Assets

The amendments specif y that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the contract ’. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts.

Since Company’s current practice is in line with the clarifications issued, there may not be material effect on the financial statements of the Company.

(iii) Ind AS 109: Financial Instruments

The amendment clarifies which fees an entity includes when it applies the ‘10 percent’ test of Ind AS 109 in assessing whether to derecognise a financial liability. Since Company current practice is in line with the clarifications issued, there may not be material effect on the financial statements of the Company.

(iv) Ind AS 16: Property, Plant and Equipment

The amendments mainly prohibit an entity from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, an entity will recognise such sales proceeds and related cost in profit or loss. The Company does not expect the amendments to have any impact on the financial statements.

Financial risk management 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.

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.

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.

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.

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.

2.42 Other Statutory Information:

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

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

(iii) The Group 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.

(iv) The Company has not provided any guarantee or security / granted loans and advances in nature of loans, secured or unsecured to Companies, firms, LLP or Other Parties.

The MCA vide notification dated 24^th March, 2021 has amended Schedule III to the Companies Act,2013 in respect of certain disclosures. Amendments are applicable from 1^st April, 2021. The Group has incorporated the changes as per the said amendment in the financial statements and has also changed comparative numbers wherever it is applicable.

As per our report of even date For and on Behalf of the Board

For DIVYA K.R. AND ASSOCIATES

Chartered Accountants

Firm Registration No: 027280S K. RAMAKRISHNAN S VARADARAJAN

Whole-time Director Director

^{DIVYA K}.^R. DIN:02797842 DIN: 08744090

Proprietor

Membership No : 228896

R. MURALI U.KALIDOSS

^p|ace : C^oimb^atore Chief Financial Officer Company Secretary

Date : 29.05.2024

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Mar 31, 2018

1. Company Overview

A. Long term investments as FVTOCI

Under previous GAAF long term investments were measured at cost less diminution in value which is other than temporary. Under Ind AS, these financial assets have been classified as FVTOCI. On the date of transition to Ind AS, these financial assets have been measured at their fair value which is higher than the cost as per previous GAAF, resulting in an increase in carrying amount by Rs. 39,38,343/- as at March 31, 2017 and Rs. 39,10,718/- as at April 01, 2016. The corresponding deferred taxes amounting to Rs.13,02,135/- have also been recognised as at March 31, 2017 and April 01, 2016. These changes do not affect profit before tax or total profit for the year ended March 31, 2017 because the investments have been classified as FVTOCI.

B. Deferred Taxes

Under previous GAAFJ deferred taxes were to be accounted on timing differences arising between the accounting profit and tax profit. However, such method has been replaced with balance sheet approach in Ind AS, wherein deferred taxes are to be accounted for the differences arising between the accounting balance sheet and tax balance sheet. Accordingly, deferred taxes has been accounted for such temporary differences.

C. Other comprehensive income

Under previous GAAP there was no concept of other comprehensive income. Under Ind AS, specified items of income, expense, gains or losses are required to be presented in other comprehensive income.

D. Actuarial gains and losses

Under previous GAAP actuarial gains and loss were recognised in profit or loss. Under Ind AS, the actuarial gains and losses form part of re-measurement of the net defined benefit liability/asset is recognised in other comprehensive income. Consequently, the tax effect of the same has also been recognised in the other comprehensive income under Ind AS instead of profit or loss. The actuarial loss for the year ended March 31, 2017 were Rs.15,27,338/- and the tax effect thereon Rs. 5,04,984/-

i) Terms/rights attached to equity shares:

The company has only one class of issued shares referred to as equity shares having a par value of 10 each. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors, if any, is subject to the approval of shareholders in the Annual General Meeting.

The Company has availed 5 Crores Rupee term loan from Export Import Bank of India repayable in 16 equal quarterly instalments. The Loan is secured by way of pari passu charge on the movable and immovable assets of the Company and second pari passu charge on the entire current assets of the Company.

The Company has availed 11 Crores Rupee term loan from Yes Bank during the year 2017 repayable in 16 equal quarterly instalments. The Loan is secured by way of pari passu charge on entire fixed assets and second pari passu charge on the current assets of the Company.

The Company has availed 10 Crores Rupee term loan from RBL Bank during the year 2017 repayable in 12 equal monthly instalments. The Loan is secured by way of pari passu charge on entire fixed assets and second pari passu charge on the current assets of the Company.

The Company has availed 5 Crores Rupee term loan from Yes Bank during the year 2016 repayable in 16 equal quarterly instalments. The Loan is secured by way of pari passu charge on entire fixed assets and second pari passu charge on the current assets of the Company.

The Company has availed 10 Crores Rupee term loan from ICICI Bank during the year 2015 repayable in 16 equal monthly instalments. The Loan is secured by way of pari passu charge on entire fixed assets and second pari passu charge on the current assets of the Company.

Working capital facilities from State Bank of India (Formerly State Bank of Travancore), IDBI Bank Ltd, RBL Bank, The Federal Bank Ltd Karnataka Bank Ltd, and Yes Bank Ltd have pari passu first charge on the entire current assets of the company and pari passu second charge on entire fixed assets of the Company. Working capital facilities from State Bank of Travancore, RBL Bank and Yes Bank Ltd are further guaranteed by the personal guarantee of Sri Vinod Narsiman, Managing Director to the extent of limit sanctioned.

Working Capital facilities from Banks are repayable on demand and carries interest rates varying from 10% to 12.75% p.a. Packing credit in Foreign Currency is repayable on demand. For buyers credit in foreign currency is repayable on demand.

d) In the past, the Kerala State Electricity Board has raised certain demands on the Company relating to payment of electricity charges and other charges on account of working of the hydro electric power division of the Company. These charges we re more than that warranted for, when specifically considering the working agreement between the Company and KSEB for operation of the hydro electric power plant. These demands remain in dispute and have been challenged by the Company in various forums including the Hon’ble High Court of Kerala. Such matters remain sub - judice and in some cases, where necessary, pending judgement, adequate provisions have been made. The Company is confident of positive redressal by the appropriate forums where no provisions has been made and in cases where the Company has deposited sums/advances, pending judgements, it is expected that those sums would be refunded.

e) During the year the company has received bill from Majan Electricity Distribution Company SAOC (Majan) in respect of distribution charges of INR 30,21,02,346 (RO 1820159) for the year ended 31 December 2017. The company has raised the matter with the Ministry of Finance and Commerce and had meetings with Majan, Sohar Free Zone and Ministry representative during the year for waiver of these charges. Management believes that it has valid grounds for waiver of these distribution charges and accordingly believes these will be waived by the Government of Oman.

2. Pursuant to the Scheme of Amalgamation santioned by the National Company Law Tribunal, Chennai Bench vide order dated 4th May 2018 & 8th May 2018, the company has accounted for the said merger under the ''Pooling of Interest'' method as prescribed in Ind AS - 103 "Accounting for Business Combinations". The previous year do not reflect the figures of the merged entity though the merger is effective from 01st April 2017

3. All figures are in Rupees unless otherwise stated

Amounts have been rounded-off to the nearest Rupee and previous year''s figures regrouped wherever necessary.

4. Operating Lease:

The Company has entered into operating lease, having a lease period ranging from 1 -5 years, with an option to renew the lease The future minimum lease payments are as follows:

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Mar 31, 2016

1. Dividends recommended by Board of Directors is provided for in accounting pending Shareholder''s approval.

2. All figures are in Rupees unless otherwise stated

Amounts have been rounded-off to the nearest Rupee and previous year''s figures regrouped wherever necessary.

3. Operating Lease: The Company has entered into operating lease, having a lease period ranging from 1-5 years, with an option to renew the lease

2.46 Interest In Joint Venture

The Company has entered into an agreement by which the Company is a party to a Joint Venture viz. Al - Tamman Indsil Ferro Chrome LLC.

The Company has invested 12,67,834 OMR in the capital of47,62,746 equity shares of 1 OMR each which is equivalent to an ownership interest of26.62%

The following represents the Group''s share of assets and liabilities and income and results of the Joint Venture included in the Balance Sheet and Statement of Profit and Loss.

Note: The audited accounts of Al-Tamman Indsil Ferro Chrome LLC., Joint Venture for the year ended 31^st December, 2015 is based on the International Financial Reporting Standards (IFRS).

The relevant details on the Joint Venture Al-Tamman Indsil Ferro Chrome LLC are already furnished in note 2.46 appearing in page No. 82 of this Annual Report.

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Jun 30, 2015

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

2. All figures are in Rupees unless otherwise stated Amounts have been rounded-off to the nearest Rupee and previous year's figures regrouped wherever necessary.

3. Interest In Joint Venture

The Company has entered into an agreement by which the Company is a party to a Joint Venture viz. Al - Tamman Indsil Ferro Chrome LLC.

The Company has invested 12,67,834 OMR in the capital of 47,62,746 equity shares of 1 OMR each which is equivalent to an ownership interest of 26.62%

The following represents the Group's share of assets and liabilities and Income and results of the Joint Venture included in the Balance Sheet and Statement of Profit and Loss.

Note: The audited accounts of Al-Tamman Indsil Ferro Chrome LLC., Joint Venture for the year ended 31st December, 2014 is based on the International Financial Reporting Standards (IFRS). For the purposes of consolidation with Indsil Hydro Power and Manganese Limited, certain expenses like project salaries/ electricity charges/ rent for the leased land for the factory under construction which have been charged-off in the Statement of Profit & Loss in the JV enterprises have been capitalised as pre-operative expenses (RO 10,10,978) in the consolidated financial statements as per Indian Accounting Standards as the same is specifically attributable to the Ferro Chrome Project.

STATEMENT IN PURSUANCE OF SECTION 129 OF THE COMPANIES ACT, 2013:

Name of the Subsidiary Company : Sree Mahalakshmi Smelters Private Ltd

Financial of the Subsidiary ended on : 31st March, 2015

Holding Company's interest in the subsidiary : 51% (21,88,847 Equity shares of Rs. 10/- each)

Net Aggregate amount of the Profit/(Loss) of the subsidiary and not dealt within the Holding Company's Accounts:

a) for the Current financial year of the subsidiary Company : Rs, (75,07,896/-)

b) for the previous financial year of the subsidiary Company : Rs, (1,89,35,898/-)

Net Aggregate amount of the Profit/(Loss) of the subsidiary dealt within the Holding Company's Accounts:

a) for the Current financial year of the subsidiary Company : Not Applicable

b) for the previous financial year of the subsidiary Company : Not Applicable

1. Name of the Wholly Owned Subsidiary Indsil Hydro Global (FZE)

2. Financial of the Wholly Owned Subsidiary ended on 30th April, 2015

3. Holding Company's interest in the WOS 100% (1,50,000 Equity shares of AED 1/- each)

4. Net Aggregate amount of the Profit/(Loss) of the WOS and not dealt within the Holding Company's Accounts:

a) for the Current financial year of the Wholly Owned Subsidiary Rs, 3,27,98,301/- b) for the previous financial year of the Wholly Owned Subsidiary Rs, 1,01,01,684/- 5. Net Aggregate amount of the Profit/(Loss) of the subsidiary dealt within the Holding Company's Accounts:

a) for the Current financial year of the Wholly Owned Subsidiary - Not Applicable

b) for the previous financial year of the Wholly Owned Subsidiary - Not Applicable

Disclosure of Information relating to Subsidiary Companies as required by the Ministry of Corporate Affairs, Government of India vide General Circular No.2/2011 dated 8th February 2011:

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Jun 30, 2014

1.1 CONTINGENT LIABILITIES As at As at 30.04.2012 30.06.2013

a) Claims against the Company not acknowledged as debts - -

b) Contingent liabilities in respect of Bills discounted fully secured by LCC - 89,75,471

c) Letters of Credit issued by Banks on behalf of the Company 7,47,39,060 2,80,24,250

d) Guarantees issued by Banks on behalf of the Company 1,92,00,675 2,13,70,691

e)Corporate guarantee given 33,50,55,838 35,22,21,290

f) In the past, the Kerala State Electricity Board has raised certain demands on the Company relating to payment of electricity charges and other charges on account of working of the hydro electric power division of the Company. These charges were more than that warranted for, when specifically considering the working agreement between the Company and KSEB for operation of the hydro electric power plant. These demands remain in dispute and have been challenged by the Company in various forums including the Hon''ble High Court of Kerala.Such matters remain sub - judice and in some cases, where necessary, pending judgement, adequate provisions have been made. The Company is confident of positive redressal by the appropriate forums where no provisions has been made and in cases where the Company has deposited sums/advances, pending judgements, it is expected that those sums would be refunded.

1.2 RELATED PARTY DISCLOSURES:

a) Subsidiary : Sree Mahalakshmi Smelters Private Limited Indsil Hydro Global (FZE),

b) Associates : Sunmet Holdings India P. Ltd, Indsil Energy and Electrochemicals Ltd.

c) Key Management Personnel : Sri. S.N.Varadarajan Sri.Vinod Narsiman

d) Relatives of Key Management Personnel : Smt. D.Pushpa Varadarajan (W/o Sri S.N. Varadarajan)

e) Joint Venture : Al-Tamman Indsil Ferro Chrome LLC

1.3 Dividends recommended by Board of Directors is provided for in accounding pending Shareholder''s approval.

1.4 All figures are in Rupees unless otherwise stated Amounts have been rounded-off to the nearest Rupee and previous year''s figures regrouped wherever necessary.

1.5 Operating Lease:

The Company has entered into operating lease, having a lease period ranging from 1-5 years, with an option to renew the lease. The future minimum lease payments are as follows

1.6 Interest In Joint Venture

The Company has, during the year, entered into an agreement by which the Company is a party to a Joint Venture viz. Al Tamman Indsil Ferro Chrome LLC.

The Company has invested 12,67,834 OMR in the capital of47,62,746 equity shares of 1 OMR each which is equivalent to an ownership interest of26.62% ( Previous year: OMR 37,500 in the capital of 1,50,000 equity shares of 1 OMR each which is equivalent to an ownership interest of 25%)

The Following represents the Group''s share of assets and liabilities and Income and results of the Joint Venture included in the Balance Sheet and Statement of Profit and Loss.

Note: The audited accounts of Al-Tamman Indsil Ferro Chrome LLC., Joint Venture for the year ended 31st December 2013 is based on the International Financial Reporting Standards (IFRS). For the purposes of consolidation with Indsil Hydro Power and Managanese Limited, certain expenses like project salaries/ electricity charges/ rent for the leased land for the factory under construction which has been charged-off in the Statement of Profit & Loss in the JV enterprises have been capitalised as pre-operative expenses (RO 10,97,183) in the consolidated financial statements as per Indian Accounting Standards as the same is specifically attributable to the Ferro Chrome Project.

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Jun 30, 2013

1.1 CONTINGENT LIABILITIES

As at 30.6.2013 As at 30.6.2012 a) Claims against the Company not acknowledged as debts

b) Contingent liabilities in respect of Bills discounted (fully secured by LCs) 89,75,471 2,70,91,558

c) Letters of Credit issued by Banks on behalf of the Company 2,80,24,250 11,28,59,194

d) Guarantees issued by Banks on behalf of the Company 2,13,70,691 2,13,71,840

e) Corporate guarantee given on behalf of subsidiary 9,00,00,000 17,00,00,000

f) In the past, the Kerala State Electricity Board has raised certain demands on the Company relating to payment of electricity charges and other charges on account of working of the hydro electric power division of the Company. These charges were more than that warranted for, when specifically considering the working agreement between the Company and KSEB for operation of the hydro electric power plant. These demands remain in dispute and have been challenged by the Company in various forums including the Hon''ble High Court of Kerala. Such matters remain sub - judice and in some cases, where necessary, pending judgement, adequate provisions have been made. The Company is confident of positive redressal by the appropriate forums where no provisions have been made and in cases where the Company has deposited sums/advances, pending judgements, it is expected that those sums would be refunded.

1.2 Dividends recommended by Board of Directors is provided for in accounding pending Shareholder''s approval.

1.3 All figures are in Rupees unless otherwise stated

Amounts have been rounded-off to the nearest Rupee and previous year''s figures regrouped wherever necessary.

1.4 Interest In Joint Venture

The Company has, during the year, entered into an agreement by which the Company is a party to a Joint Venture viz. Al Tamman Indsil Ferro Chrome LLC.

The Company has invested OMR 37,500 in the capital of 1,50,000 equity shares of OMR 1 each which is equivalent to an ownership interest of 25%

The Following represents the Group''s share of assets and liabilities and Income and results of the Joint Venture included in the Balance Sheet and Statement of Profit and Loss.

Note: The audited accounts of Al-Tamman Indsil Ferro Chrome LLC., Joint Venture for the year ended 31st December 2012 is based on the international Financial Reporting Standards (IFRS). For the purposes of consolidation with Indsil Hydro Power and Managanese Limited, certain expenses like project salaries/rent for the leased land for the factory under construction which has been charged-off in the Statement of Profit & Loss in the JV enterprises have been included as a part of construction work in progress (CWIP - RO.11,964 Previous year - RO. 58,525) in the consolidated financial statements as per Indian Accounting Standards as the same is specifically attributable to the Ferro Chrome Project.

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Jun 30, 2011

1. a) The Term Loan (ECB from Standard Chartered Bank) is secured by first pari passu charge on the fixed assets funded out of ECB and second charge on the current assets of the Company.

b) Working capital facilities from Banks are secured by hypothecation of stocks of raw materials, consumables, finished goods, book debts etc., and also by a second charge on the fixed assets of the Company. A portion of these facilities are further guaranteed by the personal guarantee of Sri Vinod Narsiman, Managing Director to the extent of Rs.4,065 lakhs.

2. CONTINGENT LIABILITIES

As at As at 30.6.2011 30.6.2010 (Rs. in Lakhs) (Rs. in Lakhs)

a) Claims against the Company not acknowledged as debts - -

b) Contingent liabilities in respect of Bills discounted 218.63 668.28 (fully secured by LCs)

c) Letters of Credit issued by Banks on behalf of the Company 465.00 449.31

d) Guarantees issued by Banks on behalf of the Company 281.49 152.66

3. The Kerala State Electricity Board (KSEB) has raised certain demands on the Company towards payment of maximum demand charges and certain other charges related to the working of the hydro electric power division of the Company. The Company has disputed these demands on account of the fact that these demands are not in line with the existing agreement between the Company and KSEB for operation of the hydro electric power plant. The Company is confident of getting these demands withdrawn, waived or cancelled at various forums and hence no provision is made for these disputed amounts.

4. The Company has not received information 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. During the year the Company has paid no interest in terms of Section 16 of the said Act.

5. The Extraordinary item represents the loss of investment in Good Earth Indsil Natural Resources Limited amounting to Rs. 22,50,000/-.

6. Deferred tax liability of Rs.14.15 lakhs as on 30.6.2011 is on account of timing difference relating to depreciation.

7. Amounts have been rounded off to the nearest rupee and previous year figures regrouped wherever necessary.

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Jun 30, 2010

1. a) The Term Loans from Banks are secured by first equitable mortgage on all Companys immovable properties, both present and future and a second charge by way of hypothecation of all Companys movable properties including book debts and subject to prior charges created or to be created in favour of Companys Bankers on Companys stocks of raw materials, consumables and such other movables for securing Companys working capital requirements. The term loans are further guaranteed by personal guarantees of Sri S.N.Varadarajan, Chairman. Aggregate of such personal guarantees is Rs.2,200 lakhs. A portion of the term loans to the extent of Rs. 1,000 lakhs have also been guaranteed by Sri Vinod Narsiman, Managing Director.

b) Working capital facilities from State Bank of Travancore, The Federal Bank Ltd. IDBI Bank Ltd and Standard Chartered Bank are secured by hypothecation of stocks of raw materials, consumables, book debts etc., and also by a second charge on immovable properties of the Company. A portion of these facilities are further guaranteed by the personal guarantee of Sri Vinod Narsiman, Managing Director to the extent of Rs.4,065 lakhs.

2. CONTINGENT LIABILITIES As at As at 30.6.2010 30.6.2009 (Rs. in Lakhs) (Rs. in Lakhs)

a) Claims against the Company not acknowledged as debts

b) Contingent liabilities in respect of Bills discounted (fully secured by LCs) 443.06 668.28

c) Letters of Credit issued by Banks on behalf of the Company 1,808.45 449.31

d) Guarantees issued by Banks on behalf of the Company 232.03 152.66

3. SEGMENT REPORT

4. RELATED PARTY DISCLOSURES:

a) Associates Sunmet Holdings India P. Ltd, Indsil Energy and Electrochemicals Ltd.

b) Key Management Personnel Sri. S.N.Varadarajan

Sri. Vinod Narsiman

c) Relatives of Key Management Personnel : Smt. D.Pushpa Varadarajan

d) Joint Venture : Al-Tamman Indsil Ferro Chrome LLC

Joint Venture is expected to commence operations during next year. Investment made represents initial capital contribution.

5. REMUNERATION TO STATUTORY AUDITORS (excluding service tax):

6. COMPUTATION OF COMMISSION PAYABLE TO CHAIRMAN, MANAGING DIRECTOR AND NON-EXECUTIVE DIRECTORS :

7. a) During the financial year 2008-09, the Company has granted 64,500 options under the Indsil Employees Stock Options Scheme 2008 (ESOS) to the eligible employees of the Company as approved by the Compensation Committee of the Board and the Board of Directors pursuant to the said Scheme. Accordingly, the Company has allotted 64,500 shares to the Indsil ESOS Trust during the current year. As per the scheme, the vesting being graded vesting 25% of the total Options were exercised by the eligible employees resulting in transfer of 16,125 shares from the Trust out of the 64,500 shares allotted. The remaining 75% of the options are still to be exercised till January 2012 and appropriate number of shares would be transferred to the eligible employees based on their exercising their options through the vesting period.

b) During the year yet another 18,500 options were granted to another batch of eligible employees under the Scheme. Such options have a graded vesting as perthe Scheme. The vesting period has not yet been completed.

8. The Kerala State Electricity Board (KSEB) has raised certain demands on the company towards payment of maximum demand charges and certain other charges related to the working of the hydro electric power division of the company. The company has disputed these demands on account of the fact that these demands are not in line with the existing agreement between the company and KSEB for operation of the hydro electric power plant. The company is confident of getting these demands withdrawn, waived or cancelled at various forums and hence no provision is made for these disputed amounts.

9. The Company has not received information 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. During the year the Company has paid no interest in terms of Section 16 of the said Act.

10. Deferred tax liability of Rs.2.30 lakhs as on 30.6.2010 is on account of timing difference relating to depreciation.

11. Amounts have been rounded off to the nearest rupee and previous year figures regrouped wherever necessary.