Notes to Accounts of MOIL Ltd.

Mar 31, 2025

1.2.23 Provision for doubtful debts

Provision for bad and doubtful debts is made based on
a case to case review of sundry debtors outstanding for
more than two years Debts outstanding from private
parties for more than three years or balance dues
on account of levy of penalty which are considered
doubtful of recovery are invariably provided.

1.2.24 Research and development expenditure

Research and development expenditure is charged to
statement of profit and loss in the year of incurrence.
However, expenditure of capital nature relating to
research and development is treated in the same way
as non-current assets.

1.2.25 Mine closure expenditure

Financial implications towards final mine closure
plans under relevant Acts and Rules are technically
estimated, based on total available ore reserves of
all mines. The same are provided in accounts, on year
to year basis, after taking into consideration overall
production of all mines.

1.2.26 Net present value for diversion of forest land for
non-forest purposes

The liability is recognized on receipt of necessary
permission from the concerned authorities.

1.2.27 Restatement of prior period financials on material
error/omissions

The value of error and omissions is construed to
be material for restating the opening balances of
assets and liabilities and equity for the prior period
presented if the amount in each case of prior period
income/expenses exceeds 1% of the turnover of
the previous year.

Defined obligations - Disclosures as per Ind-AS19 : Employee benefits are as under -

A Defined Contribution Plans :

(a) Provident Fund : The Company pays fixed contribution at predetermined rates to Provident Fund Trust, which invests the
funds in permitted securities.

(b) Pension Fund : The Company pays fixed contribution to MOIL Group Superannuation Cash Accumulation Scheme (Defined
Contribution) [MOIL GSCA (DC)] Trust which invests the funds in LIC of India and National Pension Scheme (NPS).

B Defined Benefit Plans :

(a) Gratuity : The Group Gratuity Cash Accumulation Scheme is funded by the Company and is managed by MOIL Gratuity Trust
as per Payment of Gratuity Act,1972. Liability for gratuity is recognised on the basis of actuarial valuation. Eligible amount is
paid to the employees on separation by the Trust.

(b) Post Retirement Medical Benefit : The benefit is available to retired employees and their spouse who have opted for the
benefit. Liability for the same is recognised on the basis of actuarial valuation.

C Leave Benefits :

The accumulated earned leave, half pay leave/sick leave is payable on separation, subject to maximum permissible limit. The

liability for the same is recongised on the basis of actuarial valuation.

Characteristics of defined benefit plans:

Defined Benefit Gratuity plan: - To provide funding to cater gratuity benefit to employees as per provisions of The payment of Gratuity
Act 1972. Gratuity is calculated as per the provisions of said Act and is limited to maximum H 20 lakhs.

Defined Benefit Leave encashment plan: - To provide funding for terminal encashment benefits of accumulated leave to the credit of employees
account at the rate of last drawn salary which is restricted to maximum 300 days leave balance, as per the leave Rules of the Company.

Assumptions and limitations:

The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are determined
using actuarial valuation. An actuarial valuation involves making various assumptions that may differ from actual developments in the
future. These include the determination of the discount rate, future salary increases, mortality rates and future pension increases. Due
to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at each reporting date.

The principal assumptions are the discount rate & salary growth rate. The discount rate is generally based upon the market yields
available on Government bonds at the accounting date relevant to currency of benefit payments for a term that matches the liabilities.
Salary growth rate is company''s long term best estimate as to salary increases and takes account of inflation, seniority, promotion,
business plan, HR policy and other relevant factors on long term basis as provided in relevant accounting standard.

Note 2.26 Provisions (Contd..)

Risk:

Management has entrusted four approved fund managers namely Life Insurance Corporation of India, Bajaj Allianz Life Insurance Co.
Ltd., Birla Sun Life Insurance and ICICI Prudential Life Insurance for managing the fund for Gratuity i.e. 60% is to be deposited with
LIC and maximum 40% with private insurers and Life Insurance Corporation of India for leave encashment. The performance of fund,
assumptions, discount rates and net assets value is evaluated for the reporting period by the management. The fund managers are
regulated by IRDA and its investment norms specified by Government of India as per Gazette Notification of 2016 as mentioned below.
The fund managers follow policies to mitigate risk which includes review of credit rating, exposure concentration, risk of tolerance
levels, regulatory compliance standards, standard operating procedure etc. Since majority of funds invested by fund managers are in
Government securities and having sovereign guarantees by Government of India, the risk is minimal.

3.3 Financial Risk Management
Risk management framework

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management
framework. The Board of Directors has established the Risk Management framework for developing and monitoring the Company''s
risk management policies. The Risk management committee regularly reports its activities to the Board of Directors through Audit
Committee on regular basis.

The Company''s risk management framework is established to identify and analyse the risks faced by the Company, to set appropriate risk
limits and controls and to monitor risks and adherence to limits. Risk management framework and systems are reviewed regularly to reflect
changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures,
aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Board of Directors through Audit Committee monitors the compliance with the Company''s risk management policies and
procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.

A Credit risk

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

(a) Trade receivables

The Company sales are generally based on advance payments and through letters of credit/ Bank guarantees. The trade
receivables in the books are mainly on account of credit sales to M/s SAIL MEL Limited (Chandrapur),SAIL Bhilai Steel Plant,
Salem Steel and RINL CPSEs under the Ministry of Steel.

Credit loss for trade receivables under simplified approach is detailed as per the below tables

(b) Financial instruments and cash deposits

Credit risk from balances with banks is managed by the Company''s treasury department in accordance with DPE guidelines
& Company''s investment policy. The credit risk of each investment is reviewed by the Company''s Board of Directors through
Audit Committee on regular basis. The credit risk mitigation measures are in placed and followed regularly.

B. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as
possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions,
without incurring unacceptable losses or risking damage to the Company''s reputation.

Typically the Company ensures that it has sufficient cash on demand to meet the current and the expected operational expenses ,
including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably
be predicted, such as natural disasters.

Maturities of financial liabilities :

The table below summarises the maturity profile of the Company''s financial liabilities based on contractual undiscounted payments.

C. Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Company''s
income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control
market risk exposures within acceptable parameters, while optimising the return.

(i) Foreign currency risk :

Since majority of the company''s operations are being carried in India and since all the material balances are denominated in
its functional currency, the company does not carry any material exposure to currency fluctuation risk.

(ii) Interest rate risk :

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. Since the interest rates on fixed deposits are fixed, the company does not have any interest rate risk.
Further as the Company does not have any borrowings. Hence, there is no interest rate risk.

3.4 Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized
amounts and where it intends either to settle on a net basis or to realize the asset and liability simultaneously.

3.5 In accordance with paragraph 117 of Ind AS 1 Presentation of Financial Statements, we have made disclosures regarding significant
accounting policies, the measurement basis in Accounting policy No.1.1 (b) used in preparing the financial statements and the other
accounting policies used that are relevant to an understanding of the financial statements.

3.6 Hedge accounting is not applicable.

3.7 Capital Management

(a) Risk management

The primary objective of the Company''s capital management is to maximise the shareholder value. The Company''s objectives
when managing the 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.

The Board''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain
future development of the business. The Board of Directors and senior management monitors the return on capital, which the
Company defines as result from operating activities divided by total shareholders'' equity.

For the purpose of the Company''s capital management, capital (Equity) includes issued equity share capital and other equity
attributable to the equity holders. The company has no external borrowings as on 31^st March 2025.

Income tax expense comprises of current and deferred income tax of current year in the statement of profit and loss. Deferred
income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements.

3.9 Income tax deducted at source from interest received by the company amounts to H 705.50 lakhs (H 617.53 lakhs). TDS from e-auction
and customers under section 194O and 194Q ^174.89 lakhs ( H 163.02 lakhs). Tax deduction certificates are awaited in some cases.

3.12Expenditure of capital nature for exploration- MOIL GMDC JVC yet to be incorporated: (Contd..)

6. GMDC has applied for mining lease application to the Gujarat Government which is under active consideration with Govt. of Gujarat.

7. Approval from GMDC for signing of JV is yet to be received.

8. MOIL has incurred H 765.27 lakhs(H 765.27 lakhs) in this project till date. As MOIL GMDC JVC is yet to be incorporated,
consolidated financial statement is not required to be prepared.

3.13Tripartite MoU with Govt. of Madhya Pradesh and Madhya Pradesh State Mining Corporation Limited :

1. MOIL had signed a tripartite MoU with the Govt. of Madhya Pradesh and Madhya Pradesh State Mining Corporation Limited
(MPSMCL) to explore the possibility of exploration and exploitation of manganese ore in four districts i.e. Balaghat, Jabalpur,
Jhabua and Chhindwara on 27.10.2016.

2. As per MoU, after exploration if the project is found technically and economically viable for mining, a JVC will be formed between
MPSMCL and MOIL, with MPSMCL holding 49% and MOIL holding 51%.

3. Govt. of Madhya Pradesh has reserved 487 Km2 and 850 Km² areas in Chhindwara and Balaghat districts respectively vide
gazette notification dated 22.06.2021 under sub Rule (1) of Rule 67 of the Minerals (Other than Atomic and Hydrocarbon Energy
Minerals) Concession Rule 2016 to carry out exploration work.

4. MOIL has successfully completed exploratory core drilling in both districts, totaling 16,357 meters in Chhindwara and 55,188
meters in Balaghat. Based on the exploration and analysis, two blocks were identified as suitable for mining. Preparation of TEFR
is under process.

5. Draft JV was signed in the presence of the Hon''ble Chief Minister of Madhya Pradesh at Madhya Pradesh Mining Conclave

2024 on October 18, 2024, in Bhopal subject to the approval of the Ministry of Steel, NITI Aayog, DIPAM and other requisite

permission from various authorities.

6. MOIL has incurred H 1643.99 lakhs(H 894.04 lakhs) in exploration and related activities till date. The technical and economical
feasibility is yet to be established. Hence, the amount incurred is treated as Intangible assets under development-expenditure of
capital nature on exploration.

3.14MoU with Chhattisgarh Mineral Development Corporation Limited (CMDC):

1. MOIL entered into an MoU with the Chhattisgarh Mineral Development Corporation (CMDC) in January 2023 to explore
manganese and associated minerals in Chhattisgarh.

2. Govt. of Chhattisgarh has reserved 218 km² area in district of Balrampur for exploration.

3. MOIL commenced exploration activities at Nilkanthpur and the surrounding areas in Balrampur district in June 2024, exploration
is under process.

4. Core drilling of 11628 meters completed as on 31.03.2025.

5. MOIL has incurred H 112.67 lakhs(Nil) in exploration and related activities till date. The technical and economical feasibility is yet
to be established. Hence, the amount incurred is treated as Intangible assets under development-expenditure of capital nature
on exploration.

3.16Land at Bobbili : The land at Bobbili was purchased by MOIL from APIIC for setting up of Ferro/Silico Manganese plant. A Joint
Venture Company was formed with RINL. Techno economic feasibility report (TEFR) was prepared by MECON in 2009. Based on the
viability of project as suggested in the TEFR certain initial formalities such as environmental clearances, soil testing etc. were carried out
and global tenders were floated for supply of main furnace and equipment. The tenders could not be finalized due to technical reasons
and in the interim period the tariff of electricity units was increased from H 2.50/kwh to H 5.00/kwh by the A.P Electricity Board.

In view of the above, revised TEFR was prepared by MECON in 2013 which indicated that the project was not be viable in view of the
power tariff increase and the reduction in market prices of the Ferro/Silico Manganese. The abnormal increase in power tariff caused
the delay in implementation of the project for such a long time. Management has made sincere efforts to implement the project.
However, the project could not be materialized.

MOIL requested APIIC for allotment of land at Appiconda, Vishakhapatnam by swapping arrangement against land purchased by MOIL at
Bobbili. Even after physical meeting with APIIC officials, till date no communication has been received from APIIC. Hence, financial impact
of such swapping is not ascertainable. The management is exploring the possibility to use the land for alternate purpose depending upon
viability. In view of above,H 907.79 lakhs i.e. cost of land H 898.92 lakhs and wdv of Building H 8.87 lakhs (H 908.73 lakhs i.e. cost of land
H 898.92 lakhs and wdv of Building H 9.81 lakhs) has been considered as contingent liability under Note No.3.15(i) (b).

3.17Bank guarantees are issued to Regional Controller of Mines, Pollution Control Board and others for H 4620.80 lakhs ( H 4164.27
lakhs) towards mining plan/ lease and others activities. The bank guarantees are backed by Bank deposits against which MOIL Ltd. has
created charge as per section 77 of Companies Act,2013. Bank deposits of ^1800.00 lakhs (^1800.00 lakhs) has also been earmarked
for Mine closure expenditure.

3.18Letters for balance confirmation of trade receivables and trade payables have been sent to the parties. Out of total trade
receivable outstanding of ^14555.21 lakhs as on 31.03.2025, H 1273.57 lakhs (H 20939.08 lakhs as on 31.03.2024, H 11546.66
lakhs) have been confirmed. Out of total trade payable of H 4605.11 lakhs as on 31.03.2025, H 751.61 lakhs (H 3810.83 lakhs as on
31.03.2024, H 746.90 lakhs ) have been confirmed. In respect of confirmations received, the company is in the process of scrutinizing
and reconciling the balances.

3.19Corporate Social Responsibility (CSR)

As per Section 135 of the Companies Act,2013 read with guidelines issued by Department of Public Enterprises, GOI, the Company is
required to spend, in every financial year, at least 2% of the average net profit of the Company made during the 3 immediate preceding
financial years in accordance with its CSR policy. The details of CSR expenses for the year are as under :

3.20 Revenue is recognized on the basis of energy injected by wind turbine generator of 15.2MW capacity into grid for sale, at tariff
rate agreed in power purchase agreement.

3.21 Power is generated at 4.8MW wind turbine generator units and are captively consumed at mine/plant.

3.22 Power is generated by solar power generating panels at head office, Munsar, Tirodi, Ukwa and Balaghat are used for captive
consumption at HO/mine/plant.

3.23 EPS as on 31.03.2025 (31.03.2024) is calculated on weighted average paid-up share capital.

3.26During FY 2022-23 a case of syphoning of Government fund by an employee was detected through a complaint received under
Public Interest Disclosure & Protection of Informer Resolution (PIDPIR) by Chief Vigilance Officer of the Company. As per the advice
of Ministry in consultation with CVC, the case has been handed over to independent investigation agency. The amount involved in the
case is not significant considering that the value of transactions under investigation is approx.H 135.00 lakhs.

3.27Assets held for Sale: Assets classified as held for sale during the reporting period were measured at the residual value on the date
of such classification. Consequently, no impairment loss was identified on these assets. There has been no material change in the value
of such assets after the date of initial classification as assets classified as held for sale. These assets are expected to be disposed within
the next twelve months.The fair value will be established when the assets are auctioned.

3.28 Disclosures - Other Intangibles Assets (Ind AS 38 and Ind AS 106)

The company in earlier years accounted for exploration and evaluation assets related activities under mining rights related to particular
mining lease. In the current year only a separate line under Note 2.3 is shown for better presentation as “Exploration and evaluation
assets.” The total amount transferred from mining rights to exploration and evaluation assets is ^ 1132.63 lakhs and its corresponding
depreciation amounts to ^ 134.06 lakhs is shown under Note No 2.3 -Other Intangibles Assets.

Trade Receivable includes sale of goods, directly receivable, recognised as company has unconditional right to payment from the
moment performance obligation is satisfied.

Contract liabilities includes advance received from customer which will be adjusted towards supply of goods

3.30

(a) Financial Deposits are not discounted due to the uncertainty of their final maturity dates, has been classified under
Note No. 2.7(b)(iii).

(b) Adjustment of advances to others is pending due to the non receipt of vendor invoices, has been classified under
Note No. 2.17(c) & (d).

Note : In respect of power generated at wind turbine generators and solar power plants, electricity charges of consuming units are
grossed up by the amount of credit given by Madhya Pradesh Electricity Distribution Company Ltd. and Maharashtra Electricity
Distribution Company ltd., in power bills on account of electricity units credited and the same is recognised as inter-segment revenue
of power generating unit so as to arrive at the segment revenue.

# Includes unallocated capital expenditure, corporate assets and corporate liabilities

3.35

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

(ii) The Company do not have any transactions with companies struck off.

(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

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

3.35 (Contd..)

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

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

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

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

(b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

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

(viii) The Company doesn''t have any Borrowings during the year and has never been declared wilful defaulter by any bank or financial
Institutions or any other lender.

(ix) The company pays foreign subscription fees, participation fees and other fees to its designated banks in INR, which inturn remit
the vendors in foreign currency.

3.36Corresponding figures for previous year have been shown in brackets and regrouped/rearranged wherever
necessary, to make them comparable.

Note No. 1 to 3.36 forms an integral part of financial statements.

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

For M/s TACS & Co.

Chartered Accountants

Firm''s Registration Number : 115064W

Rakesh Tumane Neeraj Pandey

Director (Finance) Company Secretary

DIN : 06639859 M.No F5632

CA Chithra Ranjith Ajit Kumar Saxena

Partner Chairman-cum- Managing Director

Membership Number: 104145 DIN : 08588419

UDIN: 25104145BMKZYA1283

Place : New Delhi
Date : 30^th July, 2025

---

Mar 31, 2024

more than three years or balance dues on account of levy of penalty which are considered doubtful of recovery are invariably provided.

1.2.23 Research and development expenditure

Research and development expenditure is charged to statement of profit and loss in the year of incurrence. However, expenditure of capital nature relating to research and development is treated in the same way as non-current assets.

1.2.24 Mine closure expenditure

Financial implications towards final mine closure plans under relevant Acts and Rules are technically estimated, based on total available ore reserves of all mines. The same are provided in accounts, on year to year basis, after taking into consideration overall production of all mines.

1.2.25 Net present value for diversion of forest land for nonforest purposes

The liability is recognized on receipt of necessary permission from the concerned authorities.

1.2.26 Restatement of prior period financials on material error/omissions

1.2.22 Provision for doubtful debts

Provision for bad and doubtful debts is made based on a case to case review of sundry debtors outstanding for more than two years Debts outstanding from private parties for

The value of error and omissions is construed to be material for restating the opening balances of assets and liabilities and equity for the prior period presented if the amount in each case of prior period income/expenses exceeds 1% of the turnover of the previous year.

Defined obligations - Disclosures as per Ind-AS19 : Employee benefits are as under -

A Defined Contribution Plans :

(a) Providend Fund : The Company pays fixed contribution at predetermiend rates to Provident Fund Trust, which invests the funds in permitted securities.

(b) Pension Fund : The Company pays fixed contribution to MOIL Group Superannuation Cash Accumulation Scheme (Defined Contribution) [MOIL GSCA (DC)] Trust which invests the funds in LIC of India.

B Defined Benefit Plans :

(a) Gratuity : The Group Gratuity Cash Accumulation Scheme is funded by the Company and is managed by MOIL Gratuity Trust as per Payment of Gratuity Act,1972. Liability for gratuity is recongnised on the basis of actuarial valuation. Eligible amount is paid to the employees on separation by the Trust.

(b) Post Retirement Medical Benefit : The benefit is available to retired employees and their spouse who have opted for the benefit. Liability for the same is recognised on the basis of actuarial valuation.

Characteristics of defined benefit plans:

Defined Benefit Gratuity plan: - To provide funding to cater gratuity benefit to employees as per provisions of The payment of Gratuity Act 1972. Gratuity is calculated as per the provisions of said Act and is limited to maximum H 20 lakhs.

Defined Benefit Leave encashment plan: - To provide funding for terminal encashment benefits of accumulated leave to the credit of employees account at the rate of last drawn salary which is restricted to maximum 300 days leave balance, as per the leave Rules of the Company.

Assumptions and limitations:

The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are determined using actuarial valuation. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and future pension increases. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

Note 2.26 Provisions (Contd..)

The principal assumptions are the discount rate & salary growth rate. The discount rate is generally based upon the market yields available on Government bonds at the accounting date relevant to currency of benefit payments for a term that matches the liabilities. Salary growth rate is company''s long term best estimate as to salary increases and takes account of inflation, seniority, promotion, business plan, HR policy and other relevant factors on long term basis as provided in relevant accounting standard.

Risk:

Management has entrusted four approved fund managers namely Life Insurance Corporation of India, Bajaj Allianz Life Insurance Co. Ltd., Birla Sun Life Insurance and ICICI Prudential Life Insurance for managing the fund for Gratuity i.e. 60% is to be deposited with LIC and maximum 40% with private insurers and Life Insurance Corporation of India for leave encashment. The performance of fund, assumptions, discount rates and net assets value is evaluated for the reporting period by the management. The fund managers are regulated by IRDA and its investment norms specified by Government of India as per Gazette Notification of 2016 as mentioned below. The fund managers follow policies to mitigate risk which includes review of credit rating, exposure concentration, risk of tolerance levels, regulatory compliance standards, standard operating procedure etc. Since majority of funds invested by fund managers are in Government securities and having sovereign guarantees by Government of India, the risk is minimal.

Risk management framework

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Board of Directors has established the Risk Management framework for developing and monitoring the Company''s risk management policies. The Risk management committee regularly reports its activities to the Board of Directors through Audit Committee on regular basis.

The Company''s risk management framework is established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management framework and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Board of Directors through Audit Committee monitors the compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.

A Credit risk

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

(a) Trade receivables

The Company sales are generally based on advance payments and through letters of credit/ Bank guarantees. The trade receivables in the books are mainly on account of credit sales to M/s SAIL MEL Limited (Chandrapur),SAIL Bhilai Steel Plant and Salem Steel, CPSEs under the Ministry of Steel.

Credit loss for trade receivables under simplified approach is detailed as per the below tables

(b) Financial instruments and cash deposits

Credit risk from balances with banks is managed by the Company''s treasury department in accordance with DPE guidelines & Company''s investment policy. The credit risk of each investment is reviewed by the Company''s Board of Directors through Audit Committee on regular basis. The credit risk mitigation measures are in placed and followed regularly.

B. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Typically the Company ensures that it has sufficient cash on demand to meet the current and the expected operational expenses , including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

C. Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

(i) Foreign currency risk :

Since majority of the company’s operations are being carried in India and since all the material balances are denominated in its functional currency, the company does not carry any material exposure to currency fluctuation risk.

(ii) Interest rate risk :

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Since the interest rates on fixed deposits are fixed, the company does not have any interest rate risk. Further as the Company does not have any borrowings. Hence, there is no interest rate risk.

3.4 Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis or to realize the asset and liability simultaneously.

3.5 I n accordance with paragraph 117 of Ind AS 1 Presentation of Financial Statements, we have made disclosures regarding significant accounting policies, the measurement basis in Accounting policy No.1.1 (b) used in preparing the financial statements and the other accounting policies used that are relevant to an understanding of the financial statements.

3.6 Hedge accounting is not applicable.

(a) Risk management

The primary objective of the Company''s capital management is to maximise the shareholder value. The Company’s objectives when managing the 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.

The Board''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Board of Directors and senior management monitors the return on capital, which the Company defines as result from operating activities divided by total shareholders'' equity.

For the purpose of the Company''s capital management, capital(Equity) includes issued equity share capital and other equity attributable to the equity holders. The company has no external borrowings as on 31^st March 2024.

3.12 Expenditure of capital nature for exploration- MOIL GMDC JVC yet to be incorporated: moil has entered into MoU with Gujrat Mineral Development Corporation Limited (GMDC), a Gujrat State Enterprise, in October,2019 to explore the possibility of mining of manganese ore in the state of Gujrat. For detailed exploration and analysis, MOIL has also entered into MoU with Mineral Exploration Corporation Limited (MECL), a CPSE under administrative control of Ministry of Mines. Exploration of core drilling has already been completed and results indicate availability of manganese ore quantum of about 9.51 million(MT). After completion of exploration work, techno-Economic Feasibility Report (TEFR) has been prepared which indicates that the project is technically and economically viable, considering the viability of project, the Board has approved the proposal for formation of JV with GMDC. Department of Investment and Public Assets Management (DIPAM) and NITI Ayog have approved the proposal for the establishment of Joint Venture (JV) Company between MOIL limited and Gujrat Mineral Development Corporation Limited (GMDC). Now, MOIL is in the process of singing a Joint Venture (JV) agreement with GMDC. MOIL has incurred H 765.27 lakhs (H 754.02 lakhs) in this project till date. As MOIL GMDC JVC is yet to be incorporated, consolidated financial statement is not required to be prepared.

3.13 Tripartite MoU with Govt. of Madhya Pradesh and Madhya Pradesh State Mining Corporation Limited: moil has signed a tripartite MoU with Govt. of Madhya Pradesh and Madhya Pradesh State Mining Corporation Limited to explore the manganese-bearing area in the State of Madhya Pradesh. Govt. of Madhya Pradesh has reserved 487 sq. km and 850 sq. km areas in the Chhindwara and Balaghat Districts respectively for exploration. MOIL has completed exploration core drilling in the Chhindwara area where manganese ore has been established in one area. Exploration in Balaghat District is under process. MOIL has incurred H 894.04 lakhs (H 104.33 lakhs) in this project till date.

Exploration by core drilling has been completed in Chhindwara area out of which two areas have got positive intersection of manganese ore. Out of 16 identified blocks in Balaghat, MOIL has completed exploration in two blocks, out of which one area has got positive intersection of manganese ore. Further, the Board has also accorded approval for signing of JV agreement with Madhya Pradesh State Mining Corporation Limited.

3.14 MoU with Chhattisgarh Mineral Development Corporation Limited (CMDC): moil Limited has signed MoU with Chhattisgarh Mineral Development Corporation to explore the possibility of manganese and associate minerals in the State of Chhattisgarh. Govt. of Chhattisgarh has reserved 218 sq. km. in Balrampur District for exploration. MOIL is going to start exploration shortly.

3.15 Amalgamation of Munsar-Parsoda Mining Lease: Govt. of Maharashtra has granted the amalgamation of the following mining lease of Munsar mine over as area of 193.27 Ha. In Village Munsar, Chargaon, Khairi, Kandri Parsoda,-Tehsil Ramtake, District Nagpur for mining of manganese ore for a period up to 31.05.2032 vide Order No. MNG-0123/C.R.18/Ind-9(A), dated 18.01.2024 and corrigendum dated 25.01.2024.

3.16 Contingent liabilities and Commitments :

(i) Contingent Liabilities

(a) Claims against the company not acknowledged as debts -

Disputed statutory demands (Income tax, entry tax, central sales tax and value added tax, service tax, central excise duty and employees'' profession tax) H 48117.08 lakhs (H 44992.28 lakhs).

(b) Other money for which the company is contingently liable Other claims - legal cases, etc. H 12577.11 lakhs (H 5794.56 lakhs).

(ii) Capital Commitment

Estimated amount of contracts remaining to be executed on capital account and not provided for is H 26392.97 lakhs (H 37,771.85 lakhs). Advance paid for contracts is H 3393.23 lakhs (H 2359.59 lakhs).

(iii) Other Commitments:

Estimated amount of long term contractual revenue services covered under other commitments remain to be executed and not provided for is H 17,441.52 lakhs (H 14,328.45 lakhs).

3.17 Land at Bobbili : The land at Bobbili was purchased by MOIL from APIIC for setting up of Ferro/Silico Manganese plant. A Joint Venture Company was formed with RINL. Techno economic feasibility report (TEFR) was prepared by MECON in 2009. Based on the viability of project as suggested in the TEFR certain initial formalities such as environmental clearances, soil testing etc. were carried out and global tenders were floated for supply of main furnace and equipment. The tenders could not be finalized due to technical reasons and in the interim period the tariff of electricity units was increased from H 2.50/kwh to H 5.00/kwh by the A.P Electricity Board. In view of the above, revised TEFR was prepared by MECON in 2013 which indicated that the project was not be viable in view of the power tariff increase and the reduction in market prices of the Ferro/Silico Manganese. The abnormal increase in power tariff caused the delay in implementation of the project for such a long time. Management has made sincere efforts to implement the project. However, the project could not be materialized.

MOIL requested APIIC for allotment of land at Appiconda, Vishakhapatnam by swapping arrangement against land purchased by MOIL at Bobbili. Even after physical meeting with APIIC officials, till date no communication has been received from APPIC. Hence, financial impact of such swapping is not ascertainable. The management is exploring the possibility to use the land for alternate purpose depending upon viability. In view of above, H 908.73 lakhs (cost of land H 898.92 lakhs and wdv of Building H 9.81 lakhs) has been considered as contingent liability under Note No.3.16(i) (b).

3.18 Bank guarantees are issued to Regional Controller of Mines, Pollution Control Board and others for H 4164.27 lakhs ( H 9567.77 lakhs) towards mining plan/ lease and others activities. The bank guarantees are backed by Bank deposits against which MOIL Ltd. has created charge as per section 77 of Companies Act,2013. Bank deposits of H 1800.00 lakhs has also been earmarked for Mine closure expenditure

3.19 Letters for balance confirmation of trade receivables and trade payables have been sent to the parties. Out of total trade receivable outstanding of H 20939.08 lakhs as on 31.03.2024, H 11546.66 lakhs have been confirmed. Out of total trade payable of H 3810.83 lakhs as on 31.03.2024, H 746.90 lakhs have been confirmed. In respect of confirmations received, the company is in the process of scrutinizing and reconciling the balances.

3.20 Corporate Social Responsibility (CSR)

As per Section 135 of the Companies Act,2013 read with guidelines issued by Department of Public Enterprises, GOI, the Company is required to spend , in every financial year, at least 2% of the average net profit of the Company made during the 3 immediate preceding financial years in accordance with its CSR policy. The details of CSR expenses for the year are as under : .....

3.21 Revenue is recognized on the basis of energy injected by wind turbine generator of 15.2MW capacity into grid for sale, at tariff rate agreed in power purchase agreement.

3.22 Power is generated at 4.8MW wind turbine generator units and are captively consumed at mine/plant.

3.23 Power is generated by solar power generating panels at head office, Munsar, Tirodi, Ukwa and Balaghat are used for captive consumption at HO/mine/plant.

3.24 Company had written back provision amounting to H 281.66 lakhs relating to arbitration award but unclaimed since FY 1995-96 and shown the same as exceptional item in previous FY 2022-23.

3.25 EPS as on 31.03.2024 (31.03.2023) is calculated on weighted average paid-up share capital.

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

any Benami property.

(ii) The Company do not have any transactions with companies struck off.

(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

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

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

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

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

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

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

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

(viii) The Company doesn''t have any Borrowings during the year and has never been declared wilful defaulter by any bank or financial Institutions or any other lender.

3.36 Corresponding figures for previous year have been shown in brackets and regrouped/rearranged wherever necessary, to make them comparable.

Note No. 1 to 3.36 forms an integral part of financial statements.

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

For M/s TACS & Co.

Chartered Accountants

Firm''s Registration Number : 115064W

Rakesh Tumane Neeraj Pandey

Director (Finance) Company Secretary

DIN : 06639859 M.No F5632

CA Gaurav B. Sharma Ajit Kumar Saxena

Partner Chairman-cum- Managing Director

Membership Number: 121121 DIN : 08588419

UDIN:24121121BKGYPC1057

Place : New Delhi Date : 30^th July, 2024

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Mar 31, 2023

Terms/rights attached to share

The company has only one class of shares as equity shares of H 10 each with one voting right for one equity share and right to equal dividend proportionate to the shareholding. In the event of liquidation of the Company, the holders of equity will be entitled to receive the remaining assets in proportion to the number of equity shares held by the Shareholders.

Interim dividend is recorded as a liability on the date of declaration by the Company''s Board of Directors. The Board has recommended a final dividend H14,04.05 lakhs @ 0.69 per equity share for the financial year 2022-23.This payment is subject to the approval of shareholder in the Annual General meeting (AGM).The Company declared a interim dividend H 61,04.56 lakhs @ 3.00 per equity share and final dividend H 61,04.56 lakhs @ 3.00per equity share for the financial year 2021-22.

Note: Liabilities for capital expenditure includes MSME payable H. 264.07 lakh and liability for expenses includes MSME payables in H 72.33 lakhs

Defined obligations - Disclosures as per Ind-AS19 : Employee benefits are as under -

A Defined Contribution Plans :

(a) Providend Fund : The Company pays fixed contribution at predetermiend rates to Provident Fund Trust, which invests the funds in permitted securities.

(b) Pension Fund : The Company pays fixed contribution to MOIL Group Superannuation Cash Accumulation Scheme (Defined Contribution) [MOIL GSCA (DC)] Trust which invests the funds in LIC of India.

B Defined Benefit Plans :

(a) Gratuity : The Group Gratuity Cash Accumulation Scheme is funded by the Company and is managed by MOIL Gratuity Trust as per Payment of Gratuity Act,1972. Liability for gratuity is recongnised on the basis of actuarial valuation. Eligible amount is paid to the employees on separation by the Trust.

(b) Post Retirement Medical Benefit : The benefit is available to retired employees and their spouse who have opted for the benefit. Liability for the same is recognised on the basis of actuarial valuation.

C Leave Benefits :

The accumulated earned leave, half pay leave/sick leave is payable on separation, subject to maximum permissible limit. The liability for the

same is recongnised on the basis of actuarial valuation.

Characteristics of defined benefit plans:

Defined Benefit Gratuity plan: - To provide funding to cater gratuity benefit to employees as per provisions of The payment of Gratuity Act 1972. Gratuity is calculated as per the provisions of said Act and is limited to maximum H 20 lakhs.

Defined Benefit Leave encashment plan: - To provide funding for terminal encashment benefits of accumulated leave to the credit of employees account at the rate of last drawn salary which is restricted to maximum 300 days leave balance, as per the leave Rules of the Company.

Assumptions and limitations:

The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are determined using actuarial valuation. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and future pension increases. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The principal assumptions are the discount rate & salary growth rate. The discount rate is generally based upon the market yields available on Government bonds at the accounting date relevant to currency of benefit payments for a term that matches the liabilities. Salary growth rate is company''s long term best estimate as to salary increases and takes account of inflation, seniority, promotion, business plan, HR policy and other relevant factors on long term basis as provided in relevant accounting standard.

Risk:

Management has entrusted four approved fund managers namely Life Insurance Corporation of India, Bajaj Allianz Life Insurance Co. Ltd., Birla Sun Life Insurance and ICICI Prudential Life Insurance for managing the fund for Gratuity i.e. 60% is to be deposited with LIC and maximum 40% with private insurers and Life Insurance Corporation of India for leave encashment. The performance of fund, assumptions, discount rates and net assets value is evaluated for the reporting period by the management. The fund managers are regulated by IRDA and its investment norms specified by Government of India as per Gazette Notification of 2016 as mentioned below. The fund managers follow policies to mitigate risk which includes review of credit rating, exposure concentration, risk of tolerance levels, regulatory compliance standards, standard operating procedure etc. Since majority of funds invested by fund managers are in Government securities and having sovereign guarantees by Government of India, the risk is minimal.

NOTE 3:

3.1 The financial statements of the company for the year ended 31^st March, 2023 are approved for issue by the Board of Directors on 26^th May,2023.

3.2 Fair Value measurement

3.3 Financial Risk Management

Risk management framework

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Board of Directors has established the Risk Management framework for developing and monitoring the Company''s risk management policies. The Risk management committee regularly reports its activities to the Board of Directors through Audit Committee on regular basis.

The Company''s risk management framework is established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management framework and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Board of Directors through Audit Committee monitors the compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.

A Credit risk

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

(a) Trade receivables

The Company sales are generally based on advance payments and through letters of credit/ Bank guarantees. The trade receivables in the books are mainly on account of credit sales to M/s SAIL MEL Limited (Chandrapur),SAIL Bhilai Steel Plant and Salem Steel, CPSEs under the Ministry of Steel.

The impairment provisions for trade receivables disclosed above are based on assumptions about risk of default and expected loss rates.

(b) Financial instruments and cash deposits

Credit risk from balances with banks is managed by the Company''s treasury department in accordance with DPE guidelines & Company''s policy. Investments of surplus funds in term deposits are made only with scheduled commercial banks having a minimum net worth of H 500 Crore and will not exceed 5% of the net worth of the bank as per the latest financial information available. Similarly, investment in term deposit in any one bank will not exceed 25% of surplus funds and limits have been assigned to each bank as per the credit rating of the bank . Investment in mutual funds will be only in liquid debt based mutual funds of public sector AMCs not exceeding 30% of the surplus fund available.. The limits are reviewed by the Company''s Board of Directors through Audit Committee on regular basis. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

B. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Typically the Company ensures that it has sufficient cash on demand to meet the current and the expected operational expenses , including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

Maturities of financial liabilities :

The table below summarises the maturity profile of the Company''s financial liabilities based on contractual undiscounted payments.

C. Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

(i) Foreign currency risk :

Since majority of the company''s operations are being carried in India and since all the material balances are denominated in its functional currency, the company does not carry any material exposure to currency fluctuation risk.

(ii) Interest rate risk :

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Since the interest rates on fixed deposits are fixed, the company does not have any interest rate risk. Further as the Company does not have any borrowings. Hence, there is no interest rate risk.

3.4 Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis or to realize the asset and liability simultaneously.

3.5 In accordance with paragraph 117 of Ind AS 1 Presentation of Financial Statements, we have made disclosures regarding significant accounting policies, the measurement basis in Accounting policy No.1.1 (b) used in preparing the financial statements and the other accounting policies used that are relevant to an understanding of the financial statements.

3.6 Hedge accounting is not applicable.

3.7 Capital Management

(a) Risk management

The primary objective of the Company''s capital management is to maximise the shareholder value. The Company''s objectives when managing the 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.

The Board''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Board of Directors and senior management monitors the return on capital, which the Company defines as result from operating activities divided by total shareholders'' equity.

For the purpose of the Company''s capital management, capital(Equity) includes issued equity share capital and other equity attributable to the equity holders. The company has no external borrowings as on 31^st March 2023.

Income tax expense comprises of current and deferred income tax of current year in the statement of profit and loss. Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements.

Direct tax contingencies: The company has ongoing dispute with Income tax authorities for AY 2018-19 and AY 2020-21 with regards to pending litigation for addition made for disallowances for mine closure expenses and stamp duty for alteration in share capital, NSDL & CDSL fees for alteration in share capital. The appeal for the same has been filed.

3.9 Income tax deducted at source from interest received by the company amounts to H 477.06 lakhs (H 681.35 lakhs). TDS from e-auction and customers under section 194O and 194Q respectively H 153.15 lakhs ( H 303.95 lakhs). Tax deduction certificates are awaited in some cases.

3.10 Transactions with related parties - Disclosures of transactions with related parties as per Ind AS 24/Companies Act, 2013 are as under.

3.12 Expenditure of capital nature for exploration- MOIL GMDC JVC yet to be incorporated: Detailed MoU has been signed between MOIL Limited and Gujrat Mineral Development Corporation Limited (GMDC) on 01.10.2019 to explore the possibility of mining of manganese ore in the state of Gujrat. As per Clause (c) of Mutual detailed MoU agreed by and between them , the cost of exploration will be initially borne by MOIL and GMDC in equal proportion and it shall be treated as investment in JVC after formation of joint venture company. MECL has completed exploratory work in 1st phase by geophysical prospecting and core drilling. MOIL Ltd. is now preparing Techno Economic Feasibility Report based on 1st phase report of MECL for underground mining operations. As the project seems to be viable, MOIL has awarded work to prepare TEFR to CSIR-CIMFR . Draft report is submitted by CSIR-CIMFR which is under consideration of MOIL. After finalisation of TEFR, MOIL will signed JV agreement with GMDC with shareholding of 51% and 49% respectively, in terms of MoU already signed. As MOIL GMDC JVC is yet to be incorporated, consolidated financial statement is not required to be prepared. The JV agreement has been prepared mutually by MOIL and GMDC. the legal vetting of the JV agreement is under tender process.

3.13 Expenditure of capital nature for exploration - MOIL-MPSMCL JV yet to be incorporated : MOIL has signed a tripartite MoU with Govt. of Madhya Pradesh and Madhya Pradesh Mining Corporation Limited to explore the possibilities of manganese mining in 4 districts viz. Jabalpur,Jhabuwa,Chhindwara and Balaghat in the State of Madhya Pradesh on dated 27/10/2016. Accordingly MOIL has carried out a remote sensing survey 4 districts with the help of National Remote Sensing Centre (NRSC) and applied for reservation under rule 61 of Mineral (other that Atomic and Hydro Carbon minerals) concession rule 2016 for all 4 districts. In the response to our application Government of Madhya Pradesh has reserved 487 sq. kms., 850 sq. kms. & 92.87 ha. area in Chhindwara, Balaghat and Jabalpur respectively and reservation for remaining 1 district is under process with Government of Madhya Pradesh.

For ground exploration, MOIL contacted MECL. In response to our query, MECL submitted budgetary offer for one block at Chhindwara and Balaghat respectively. MOIL has formed a committee to negotiate the rate with MECL. Due to high rates quoted by MECL, the

Competent Authority decided to explore the blocks through open tender process. The tendering work is completed and work order for exploration was awarded during FY 2022-23. The drilling work is in progress. After assessment of ore resources, if project found economically viable then JV agreement will be signed with Madhya Pradesh State Mining Corporation Limited with 51:49 Equity.

3.14 Expenditure of capital nature for exploration - MOIL-CMDC MoU: To explore the possibility of manganese bearing areas in Chhattisgarh, MOIL has signed an MoU between MOIL and CMDC (Chhattisgarh Mineral Development Corporation) in the month of January 2023. Accordingly, an application has been submitted under rule 67 of Mineral (other than Atomic and Hydro Carbon minerals) concession rule 2016 to state government. The application is under consideration at state government. After reservation of area, MOIL will start exploration as per the MoU. After assessment of ore resources, if project found economically viable then JV agreement will be signed with CMDC with 51:49 Equity of MOIL and CMDC respectively.

3.15 Contingent liabilities and Commitments :

(i) Contingent Liabilities

(a) Claims against the company not acknowledged as debts-

Disputed statutory demands (Income tax, entry tax, central sales tax and value added tax, service tax, central excise duty and employees'' profession tax) H 44896.20 lakhs (H 42693.41 lakhs).

(b) Other money for which the company is contingently liable

Other claims- legal cases, etc. H 5778.95 lakhs (H 449.52 lakhs).

(ii) Capital Commitment

Estimated amount of contracts remaining to be executed on capital account and not provided for is H 37,771.85 lakhs (H 45756 lakhs). Advance paid for contracts is H 2359.59 lakhs (H 2292.10 lakhs).

(iii) Other Commitments:

Estimated amount of long term contractual revenue services covered under other commitments remain to be executed and not provided for is H 14,328.45 lakhs (H 10182.74 lakhs).

3.16 Land at Bobbili : The land at Bobbili was purchased by MOIL from APIIC for setting up of Ferro/Silico Manganese plant. A Joint Venture Company was formed with RINL. Techno economic feasibility report (TEFR) was prepared by MECON in 2009. Based on the viability of project as suggested in the TEFR certain initial formalities such as environmental clearances, soil testing etc. were carried out and global tenders were floated for supply of main furnace and equipment. The tenders could not be finalized due to technical reasons and in the interim period the tariff of electricity units was increased from H 2.50/kwh to H 5.00/kwh by the A.P Electricity Board. In view of the above, revised TEFR was prepared by MECON in 2013 which indicated that the project was not be viable in view of the power tariff increase and the reduction in market prices of the Ferro/Silico Manganese. The abnormal increase in power tariff caused the delay in implementation of the project for such a long time. Management has made sincere efforts to implement the project. However, the project could not be materialized.

MOIL requested APIIC for allotment of land at Appiconda, Vishakhapatnam by swapping arrangement against land purchased by MOIL at Bobbili. Even after physical meeting with APIIC officials, till date no communication has been received from APPIC. Hence, financial impact of such swapping is not ascertainable. The management is exploring the possibility to use the land for alternate purpose depending upon viability. In view of above, H 909.76 lakhs (cost of land H 898.92 lakhs and wdv of Building H10.84 lakhs) has been considered as contingent liability under Note No.3.15(i) (b).

3.17 Bank guarantees are issued to Mining office and Pollution Control Board for H 9567.77 lakhs ( H 4068.31 lakhs) towards mining plan/ lease and others activities. The bank guarantees are backed by equivalent amount of fixed deposits.

3.18 Letters for balance confirmation of trade receivables and trade payables have been sent to the parties. Out of total trade receivable outstanding of H 14334.00 lakhs as on 31.03.2023, H 11745.81 lakhs have been confirmed. Out of total trade payable of H 3060.64 lakhs as on 31.03.2023, H 647.09 lakhs have been confirmed. In respect of confirmations received, the company is in the process of scrutinizing and reconciling the balances.

3.20 Revenue is recognized on the basis of energy injected by wind turbine generator of 15.2MW capacity into grid for sale, at tariff rate agreed in power purchase agreement.

3.21 Power is generated at 4.8MW wind turbine generator units and are captively consumed at mine/plant.

3.22 Power is generated by solar power generating panels are (at head office, Munsar, Tirodi, Ukwa and Balaghat) used for captive consumpion at HO/Mine/Plant.

3.23 Company has written back provision amounting to H 281.66 lakhs relating to arbitration award but unclaimed since FY 1995-96 and shown the same as exceptional item.

3.24 EPS as on 31.03.2023 is calculated on weighted average paid-up share capital and EPS as on 31.03.2022 was calculated on weighted average paid-up share capital (due to buy-back of shares on 18.02.2022).

3.25 Information about major Customers : The total revenue for the year ended 31^st March 2023 have sales from SAIL, which accounts for 13% of total sale of products from mining activity.

3.27 During the year a case of syphoning of Government fund by an employee has been detected through a complaint received under Public Interest Disclosure & Protection of Informer Resolution (PIDPIR) by Chief Vigilance Officer of the Company. As per the advice of Ministry in consultation with CVC, the case has been handed over to independent investigation agency. The amount involved in the case is not significant considering that the value of transactions under investigation is approx. H 1.35 crores.

Note : In respect of power generated at wind turbine generators and solar power plants, electricity charges of consuming units are grossed up by the amount of credit given by Madhya Pradesh Electricity Distribution Company Ltd. and Maharashtra Electricity Distribution Company ltd., in power bills on account of electricity units credited and the same is recognised as inter-segment revenue of power generating unit so as to arrive at the segment revenue.

# Includes unallocated capital expenditure, corporate assets and corporate liabilities

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

any Benami property.

(ii) The Company do not have any transactions with companies struck off.

(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

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

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

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

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

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

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

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

(viii) The Company doesn''t have any Borrowings during the year and has never been declared wilful defaulter by any bank or financial Institutions or any other lender.

3.33 Corresponding figures for previous year have been shown in brackets and regrouped/rearranged wherever necessary, to make them comparable.

Note No. 1 to 3.33 forms an integral part of financial statements.

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Mar 31, 2018

Corporate and General Information

MOIL Limited (referred to as “the Company”) is domiciled and incorporated in India. The Company is a Schedule “A” Miniratna Category – I Central public sector undertaking. The Company is one of the largest manganese ore producers of the country. The registered office of the Company is situated at 1-A, Katol Road, Nagpur-440013, Maharashtra. The securities of the Company are listed on the National Stock Exchange and Bombay Stock Exchange under scripcode MOIL and 533286 respectively.

1 The Standalone Financial Statement of the Company for the year ended 31st March, 2018 is approved by Board of Director’s on 24th May, 2018

1A Income tax deducted at source from interest and rent received by the company amounts to Rs. 1520.96 (Rs. 1728.96) lakhs. Tax deduction certificates are awaited in some cases.

2 Deferred tax assets/liability – Disclosures as per Ind AS 12 : Income Taxes are as under.

Income tax expense comprises of current and deferred income tax of current year in the statement of profit and loss. Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements.

3 Letters for year-end balance confirmation of trade receivables and trade payables have been sent to the parties. Out of total outstanding of Rs. 25263.50 lakhs as on 31.03.2018, balances of Rs. 7366.23 lakhs have been reconciled. In respect of confirmations received, the company is under process of scrutinizing and reconciling the balances.

4 Transactions with related parties – Disclosures of transactions with related parties as per Ind AS 24/Companies Act, 2013 are as under.

(i) List of related parties and relationship

(a) Key managerial personnel Designation

i Shri M. P. Chaudhari Chairman-cum-Managing Director

ii Shri T. K. Pattnaik Director (Commercial)

iii Shri Dipankar Shome (w.e.f. 12.09.2017) Director (Production & Planning)

iv Shri D. S. Ahluwalia (upto 27.09.2017) Director (Finance) – Addl. Charge

v Shri Rakesh Tumane (w.e.f. 28.09.2017) Director (Finance)

(w.e.f. 14.11.2017) Chief Financial Officer

vi Shri N. P. Kajarekar (upto 13.11.2017) Chief Financial Officer

vii Shri N. D. Pandey Company Secretary

Shri T.K.Pattnaik also held additional charge of Director (Production and Planning) till 11.09.2017 and Shri D.S.Ahluwalia Director (Finance) NMDC Limited had been given additional charge for the post of Director (Finance) of MOIL Limited w.e.f. 01.12.2016 till 27.09.2017.

(b) Joint venture companies

1 SAIL & MOIL Ferro Alloys Pvt. Ltd.

2 RINMOIL Ferro Alloys Pvt. Ltd.

(ii) Transactions during the year with related parties stated in (i) (a) above :

5 Capital Committment

Estimated amount of contracts remaining to be executed on capital accountand not provided for is Rs. 65127.83 (Rs. 14656.35) lakhs. Advance paid for such contracts is Rs. 1231.06 (Rs. 1406.66) lakhs.

6 Land measuring 761.60 Sq. Meters belonging to the company is acquired by Nagpur Improvement Trust for its Integrated Road Development Plan. Writ petition filed by the company seeking compensation is admitted by the High Court, Nagpur. Pending outcome of writ petition, no adjustment is done in books.

7 Imports of capital goods during the year Rs. Nil (Rs. Nil) lakh.

8 Expenditure in foreign currency for travelling is Rs. 14.14 (Rs. 12.50) lakh and miscellaneous expenses is Rs. Nil (Rs. 1.01) lakh

10 Corporate Social Responsibility (CSR) and Sustainable Development (SD)

Company carries out various CSR and SD activities such as construction of village roads, toilet bathrooms at public utility places and schools, skill development programs etc. Similarly it also undertakes plantation and dump reclamation. The expenditure during the year is Rs. 961.63 (Rs. 1143.10) lakhs as against gross amount required to be spent during the year for Rs. 921.82( Rs. 1126.77) lakhs . These activities are approved by CSR committee and any shortfall as per statutory limits is deposited in a separate trust account created for the CSR purpose, for utilisation in subsequent years.

11 Revenue is recognized on the basis of energy injected by wind turbine generator of 15.2 MW capacity into grid for sale, at tariff rate agreed in power purchase agreement.

12 Power generated at 4.8MW wind turbine generator units consumed at mine/plant, is charged to respective units at the cost of generation.

13 Power generated by Solar power generating panels of 48KW capacity are used for captive consumption in head office.

14 EPS as on 31.03.2018 is calculated on weighted average paid-up capital (due to issue of bonus shares on 29.09.2017)and due to buy-back of shares on 27.03.2018). EPS as on 31.03.2017 is calculated on weighted average paid-up capital (due to buy-back of shares on 07.10.2016)

15 Corresponding figures for previous year have been shown in brackets and regrouped/rearranged wherever necessary, to make them comparable.

---

Mar 31, 2017

1 Disclosures relating to micro, small and medium enterprises [MSME]

2 Other expenses (Note No. 14.2) include –

3 Transactions with related parties – Disclosures of transactions with related parties as per Ind AS 24/Companies Act, 2013 are as under.

(i) List of related parties and relationship

(a) Key managerial personnel

Shri T.K.Pattnaik also holds additional charge of Director (Production and Planning) w.e.f. 01.08.2016 and Shri D.S.Ahluwalia Director (Finance) NMDC Limited had been given additional charge of Director (Finance) of MOIL Limited w.e.f. 01.12.2016.

(b) Joint venture companies

1. SAIL & MOIL Ferro Alloys Pvt. Ltd.

2. RINMOIL Ferro Alloys Pvt. Ltd.

(ii) Transactions during the year with related parties stated in (i) (a) above :

4 Joint ventures - Disclosures as per Ind AS31 : Interests in joint ventures are as follows.

(a) Particulars about joint venture companies

(b) Financial particulars

5 Contingent liabilities as per Ind AS 37/Companies Act 2013 are as under.

(a) Claims against the company not acknowledged as debts -

Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs.14656.35 (Rs.11865.77) lakhs. Advance paid for such contracts is Rs.1406.66(Rs.1478.50) lakhs.

6 Provisions – Disclosure of particulars as per Ind AS 37 are as under.

In respect of provision for final mine closure expenses, cash outflow is expected at the time of closure of mines. Life of mine is assumed as continuous in nature (on going concern basis).

7 Imports of capital goods during the year Rs.Nil(Rs.Nil) lakh.

8 Expenditure in foreign currency for travelling Rs.12.50 (Rs.20.97) lakh and miscellaneous expenses Rs.1.01(Rs.12.53) lakh

9 Corporate Social Responsibility(CSR) and Sustainable Development (SD)

Company carries out various CSR and SD activities such as construction of village roads, toilet bathrooms at public utility places and schools, skill development programs etc. Similarly undertakes plantation and dump reclamation. The expenditure during the year is Rs.1143.10 (Rs.1447.39) lakhs. These activities are approved by CSR committee and any shortfall as per statutory limits is deposited in a separate trust account created for the CSR purpose.

10 Additional information to financial statements

(a) Information in respect of SBN’s as per para ‘k’ of Schedule III

(b) Production, sales, opening and closing stocks –

(c) Licensed and installed capacity and capacity utilization –

11 Corresponding figures for previous year have been shown in brackets and regrouped/rearranged wherever necessary, to make them comparable.

---

Mar 31, 2016

1 Contingent liabilities

2. Claims against the company not acknowledged as debts -

3. Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs.11865.77 (Rs. 8856.26) lakhs. Advance paid for such contracts is Rs.71.84 (Rs.78.99 ) lakhs.

4. Land measuring 761.60 Sq. Mtrs. belonging to the company is acquired by Nagpur Improvement Trust for its Integrated Road Development Plan. Writ petition filed by the company seeking compensation is admitted by the High Court, Nagpur. Pending outcome of writ petition, no adjustment is done in books.

5. Physical verification of inventories is carried out at the end of the year.

6. Production and inventory of manganese ore as well as bulk raw materials and ferro manganese are determined as per weight volume ratio by the production/technical department and the same are accounted for accordingly.

7. Inventory of raw materials includes stock of manganese ore of 18.53 (145.14) MT valuing Rs.0.96 (Rs.6.49) lakhs lying in ferro manganese plant site on 31.03.2016.

8. Letters for year-end balance confirmation of sundry debtors and sundry creditors have been sent to the parties. Out of total outstanding of Rs.14583.28lakhs as on 31.03.2016,balancesof Rs. 2419.64lakhshavebeenreconciled.

In respect of confirmations received, the company is under process of scrutinizing and reconciling the balances.

9. Documentation in respect of loans to employees is pending in some cases and is classified as unsecured.

10. For anticipated loss on disposal of obsolete stores/spares, provision of Rs.1.43 (Rs.1.49) lakhs made in accounts is considered adequate.

11. Income tax deducted at source from interest and rent received by the company amounts to Rs.2440.46(Rs.2763.59) lakhs. Tax deduction certificates are awaited in some cases.

12. Disclosures relating to micro, small and medium enterprises [MSME]

13. Imports of capital goods during the year Rs. Nil (Rs. Nil) lakh.

14. Expenditure in foreign currency for travelling Rs.20.97 (Rs.5.57) lakh and miscellaneous expenses Rs.12.53 (Rs.27.83) lakh

15. Provisions no longer required to the tune of Rs. Nil (Rs.2441.09) lakhs are on account of employee benefits expenses.

16. Reduction in turnover during the year and consequential effect on profits is mainly due to oversupply of manganese ore from inter-national market, leading to pressure on selling prices coupled with liquidity crunch at buyers'' end.

Exceptional items Rs.2084.02 (Rs. Nil) lakhs represent write down of value of inventory of finished goods below cost to net realizable value, as per accounting policy for valuation of stock of finished goods.

17. Additional information to statement of profit and loss (a) Production, sales, opening and closing stocks -

18. Corresponding figures for previous year have been shown in brackets and regrouped, wherever necessary, to make them comparable.

---

Mar 31, 2015

1 Contingent liabilities

(a) Claims against the company not acknowledged as debts -

Rs in lakhs Particulars of claims 31-03-2015 31-03-2014

(i) By employees for wages and other benefits 205.00 159.00

(ii) By Forest Department for payment of transit fee on railing of ore from Tirodi mine 86.08 86.08

(iii) Interest on arbitration award

(iv) Entry tax, central sales tax and value added tax and employees'' professional 678.25 562.73

tax 75.37 18.24

(v) Disputed income tax under appeal [Tax already paid Rs.1364.29 (Rs. 1054.06) lakhs] 1569.39 1054.06

(vi) Contingent liability on financial assurance under bank guarantees/letter of credits (Represented by fixed deposits of equivalent amount) 296.30 333.40

(b) Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. 8856.26 (Rs. 7831.01) lakhs. Advance paid for such contracts is Rs. 78.99 (Rs. 34.13) lakhs.

2 Change in accounting policy - During the year under consideration, the company has changed its accounting policy on depreciation and amortization of fixed assets, in line with Schedule II of Companies Act, 2013. The change has resulted in increase in current year''s depreciation by Rs. 548.28 lakhs. According to transition provisions contained in Part C, Schedule II of Companies Act, 2013 an amount of Rs. 117.90 lakhs has been reduced from deferred tax liability and the net amount of Rs. 228.97 lakhs has been charged to retained earnings.

3 Land measuring 761.60 Sq. Mtrs. belonging to the company is acquired by Nagpur Improvement Trust for its Integrated Road Development Plan. Writ petition filed by the company seeking compensation is admitted by the High Court, Nagpur. Pending outcome of writ petition, no adjustment is done in books.

Additions to plant and machinery [Note No. 6.1] include vertical shafts at Munsar and Ukwa mines (Rs. 3865.92 lakhs), which are commissioned during the year. Production from these shafts is expected to commence within a time span of eighteen to twenty- four months, after completion of initial development.

4 (a) Physical verification of inventories is carried out at the end of the year.

(b) Production and inventory of manganese ore as well as bulk raw materials and ferro manganese are determined as per weight volume ratio by the production/technical department and the same are accounted for accordingly.

(c) Inventory of raw materials includes stock of manganese ore of 145.14 (60.50) MT valuing Rs. 6.49 (Rs. 3.17) lakhs lying in ferro manganese plant site on 31.03.2015.

5 Letters for year-end balance confirmation of sundry debtors and sundry creditors have been sent to the parties. Out of total outstanding of Rs. 11114.77 lakhs as on 31.03.2015,balance of Rs. 288.15 lakhs have been reconciled. In respect of confirmations received, the company is under process of scrutinizing and reconciling the balances.

6 Documentation in respect of secured loans to employees is pending in some cases.

7 For anticipated loss on disposal of obsolete stores/spares, provision of Rs. 1.49 (Rs. 3.23) lakhs made in accounts is considered adequate.

8 During the financial year 2012-13, the company has detected embezzlement of funds committed by one of its employees to the tune of Rs. 31.03 lakh. The matter has been investigated and no further cases have been detected. Provision is not considered necessary since the amount is recoverable.

9 Income tax deducted at source from interest and rent received by the company amounts to Rs. 2763.59 ( Rs. 2663.53) lakhs. Tax deduction certificates are awaited in some cases.

---

Mar 31, 2014

1 Contingent liabilities

(a) Claims against the company not acknowledged as debts -

Rs. in lakhs

Particulars of claims 31-03-2014 31-03-2013

(i) By employees for wages and other benefits 159.00 141.00

(ii) By South East Central Railway for payment of arrears of rent of railway 109.68 109.68 sidings

(iii) By Forest Department for payment of transit fee on railing of ore from 86.08 86.08 Tirodi mine

(iv) Interest on arbitration award 562.73 447.21

(v) Entry tax, central sales tax and value added tax and employees'' 18.24 19.80 professional tax

(vi) Disputed income tax under appeal [Tax already paid Rs. 1054.06 1054.06 1267.35 (Rs. 1267.35) lakhs]

(vii) Contingent liability on financial assurance under bank guarantees / 333.40 225.37 letter of credits (Represented by fixed deposits of equivalent amount)

(b) Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. 7831.01 (Rs. 8509.09) lakhs. Advance paid for such contracts is Rs. 34.13 (Rs. 30.27) lakhs.

2 Land measuring 761.60 Sq. Mtrs. belonging to the company is acquired by Nagpur Improvement Trust for its Integrated Road Development Plan. Writ petition fi led by the company seeking compensation is admitted by the High Court, Nagpur. Pending outcome of writ petition, no adjustment is done in books.

3 (a) Physical verification of inventories is carried out at the end of the year.

(b) Production and inventory of manganese ore as well as bulk raw materials and ferro manganese are determined as per weight volume ratio by the production/technical department and the same are accounted for accordingly.

(c) Inventory of raw materials includes stock of manganese ore of 60.50 (164) MT valuing Rs. 3.17 (Rs. 8.08) lakhs lying in ferro manganese plant site on 31.03.2014.

4 Letters for year-end balance confirmation of sundry debtors and sundry creditors have been sent to the parties. In respect of confi rmations received, the company is under process of scrutinizing and reconciling the balances.

5 Documentation in respect of secured loans to employees is pending in some cases.

6 For anticipated loss on disposal of obsolete stores/spares, provision of Rs. 3.23 (Rs. 3.93) lakhs made in accounts is considered adequate.

7 As regards invoicing in respect of manganese ore, earlier, the time lag between dispatch of ore and receipt of quality test report was more. Hence, the policy of accounting differential sales invoices in the year of receipt of quality test report was followed. However, as a result of computerization and automation of processes, the company is in a position to expedite the reports and, in most of the cases, the results are available before the finalization of accounts. Consequently, final sales invoices are raised in the year of dispatch as per quality test reports received upto a cutoff date. In view of this, the company has changed the policy with regard to accounting of differential sales invoices. The change in policy does not have any material effect on the accounts.

8 During the financial year 2012-13, the company has detected embezzlement of funds committed by one of its employees to the tune of Rs. 31.03 (Rs. 31.03) lakh. The matter is investigated by an independent expert and final report is submitted, which is subject to final review and action. Since the amount of terminal benefits due to the employee, which can be applied for recovery of embezzled amount and the amount already deposited are suffi cient to recover the above, provision is not considered necessary.

9 Income tax deducted at source from interest and rent received by the company amounts to Rs. 2663.53 (Rs. 2487.18) lakh. Tax deduction certifi cates are awaited in some cases.

10 Sundry creditors include a sum of Rs. Nil (Rs. Nil) lakhs payable to micro, small and medium enterprises units, in excess of Rs. 1.00 lakh outstanding for more than thirty days.

11 As per guidelines issued by the Department of Public Enterprises applicable from 1st April, 2013 on corporate social responsibility and sustainable development, expenditure on afforestation is included under the head "Expenditure on corporate social responsibility and sustainable development" in Note 14.2 (Other expenses).

12 Transactions with related parties – Disclosures of transactions with related parties as per Accounting Standard 18 are as under.

(i) List of related parties and relationship

1 Shri G.P.Kundargi Key management personnel

2 Shri A.K.Mehra Key management personnel

3 Shri M.P.Chaudhari Key management personnel

4 Shri A.K.Jha Key management personnel

5 SAIL & MOIL Ferro Alloys Pvt. Ltd. Joint venture company

6 RINMOIL Ferro Alloys Pvt. Ltd. Joint venture company

13 Imports of capital goods during the year Rs. 398.71 (Rs. 298.56) lakh.

14 Expenditure in foreign currency for travelling Rs. 28.56 (Rs. 12.53) lakh and miscellaneous expenses Rs. 22.43 lakh (Rs. 16.33) lakh

15 Provisions no longer required to the tune of Rs. 4481.84 lakhs are on account of employee benefits expenses.

---

Mar 31, 2013

1 Contingent liabilities

(a) Claims against the company not acknowledged as debts -

Rs. in lakhs

Particulars of claims 31-03-2013 31-03-2012

(i) By employees for wages and other benefits 141.00 143.00

(ii) By South East Central Railway for payment of arrears of rent of 109.68 109.68 railway sidings

(iii) By contractors for non-fulfilment of contractual obligations Nil 26.42

(iv) By Forest Department for payment of transit fee on railing of ore 86.08 86.08 from Tirodi mine

(v) Interest on arbitration award 447.21 332.00

(vi) Employees'' professional tax 6.91 6.91

(vii) Entry tax, central sales tax and value added tax 12.89 9.05

(viii) Disputed income tax under appeal [Tax already paid Rs. 1267.35 1267.35 4021.97 (Rs. 4021.97)]

Contingent liability on financial assurance under bank guarantees

(ix) /letter of credits (Represented by fixed deposits of equivalent 225.37 172.30 amount)

(b) Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. 8509.09 (Rs. 5832.64) lakhs. Advance paid for such contracts is Rs. 30.27 (Nil) lakhs.

2 Land measuring 761.60 Sq. Mtrs. belonging to the company is acquired by Nagpur Improvement Trust for its Integrated Road Development Plan. Writ petition filed by the company seeking compensation is admitted by the High Court, Nagpur. Pending outcome of writ petition, no adjustment is done in books.

3 (a) Physical verification of inventories is carried out at the end of the year.

(b) Production and inventory of manganese ore as well as bulk raw materials and ferro manganese are determined as per weight volume ratio by the production/technical department and the same are accounted for accordingly.

(c) Inventory of raw materials includes stock of manganese ore of 164 (370) MT valuing Rs. 8.08 (Rs. 17.18) lakhs lying in ferro manganese plant site on 31.03.2013.

4 Letters for year-end balance confirmation of sundry debtors and sundry creditors have been sent to the parties. In respect of confirmations received, the company is under process of scrutinizing and reconciling the balances.

5 Documentation in respect of secured loans to employees is pending in some cases.

6 For anticipated loss on disposal of obsolete stores/spares, provision of Rs. 3.93 (Rs. 4.22) lakhs made in accounts is considered adequate.

7 During the year, the company has detected embezzlement of funds committed by one of its employees. The amount of embezzlement detected till date is Rs. 31.03 lakh. The matter is being investigated by an independent expert and final report is awaited. Since the amount of terminal benefits due to the employee (which can be applied for recovery of embezzled amount) and amount already deposited are sufficient to recover the above, provision is not considered necessary.

8 Income tax deducted at source from interest and rent received by the company amounts to Rs. 2487.18 (Rs. 2192.54) lakhs. Tax deduction certificates are awaited in some cases.

9 Sundry creditors include a sum of Rs. Nil (Rs. Nil) lakhs payable to micro, small and medium enterprises units, in excess of Rs. 1.00 lakh outstanding for more than thirty days.

10 Transactions with related parties - Disclosures of transactions with related parties as per Accounting Standard are as under.

(i) List of related parties and relationship

1 Shri KJ.Singh Key management personnel

2 Shri G.P.Kundargi Key management personnel

3 Shri A. K. Mehra Key management personnel

4 Shri M.A.V. Goutham Key management personnel

5 Shri M.P. Chaudhari Key management personnel

6 SAIL & MOIL Ferro Alloys Pvt. Ltd. Joint venture company

7 RINMOIL Ferro Alloys Pvt. Ltd. Joint venture company

11 Imports of capital goods during the year Rs. 298.56 (515.34) lakh.

12 Expenditure in foreign currency for travelling Rs. 12.53 (Rs. 26.78) lakh and miscellaneous expenses Rs. 16.33 (15.00) lakh

13 Corresponding figures for previous year have been shown in brackets and regrouped, wherever necessary, to make them comparable.

---

Mar 31, 2012

1. Contingent liabilities

(a) Claims against the company not acknowledged as debts -

RS in lakhs

Particulars of claims 31-03-2012 31-03-2011

(i) By employees for wages and other benefits 143.00 165.00

(ii) By South East Central Railway for payment of arrears of rent of 109.68 109.68

(iii) railway sidings 26.42 26.42

(iv) By contractors for non-fulfilment of contractual obligations 86.08 79.45

(v) By Forest Department for payment of transit fee on railing of ore 332.00 216.17

(vi) from Tirodi mine 6.91 8.83 Interest on arbitration award Employees'' professional tax

There will not be any additional financial implications over and above the provisions already made as per company''s assessment.

(c) Company has given financial assurance of Rs 172.30 (Rs 172.30) lakhs to IBM by way of bank guarantees, towards progressive mine closure plans. Fixed deposit receipts of identical amount are held by banks/Government departments against these bank guarantees.

(d) Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs 5832.64 (Rs 7908.48) lakhs. Advance paid for such contracts is Rs Nil (Nil) lakhs.

2. Land measuring 761.60 Sq. Mtrs. belonging to the company is acquired by Nagpur Improvement Trust for its Integrated Road Development Plan. Writ petition filed by the company seeking compensation is admitted by the High Court, Nagpur. Pending writ petition, no adjustment is done in books.

3. (a) Physical verification of inventories is carried out at the end of the year.

(b) Production and inventory of manganese ore is arrived on weight-volume ratio basis

(c) Inventories of bulk raw materials and finished goods in respect of ferro manganese plant are determined as per weight-volume ratio by the production/technical department and the same are accounted for accordingly.

(d) Inventory of raw materials includes stock of manganese ore of 370 (249) MT valuing Rs 17.18 (Rs 11.39) lakhs lying in ferro manganese plant site on 31.03.2012.

4. Letters for year-end balance confirmation of sundry debtors and sundry creditors have been sent to the parties. In respect of confirmations received, the company is under process of scrutinizing and reconciling the balances.

5. Documentation in respect of secured loans to employees is pending in some cases.

6. For anticipated loss on disposal of obsolete stores/spares, provision of Rs 4.22 (Rs 3.49) lakhs made in accounts is considered adequate.

7. Income tax deducted at source from interest and rent received by the company amounts to Rs 2192.54 (Rs 1797.28) lakhs. Tax deduction certificates are awaited in some cases.

8. Sundry creditors include a sum of Rs Nil (Rs Nil) lakhs payable to micro, small and medium enterprises units, in excess of Rs 1.00 lakh outstanding for more than thirty days.

9. Transactions with related parties – Disclosures of transactions with related parties as per Accounting Standard 18 are as under.

(i) List of related parties with whom transactions have taken place and relationship

1. Shri K.J.Singh Key management personnel

2. Shri M.A.V. Goutham Key management personnel

4. Shri A. K. Mehra Key management personnel

5. Shri G.P.Kundargi Key management personnel

6. SAIL & MOIL Ferro Alloys Pvt. Ltd. Joint venture company

7. RINMOIL Ferro Alloys Pvt. Ltd. Joint venture company

(ii) Transactions during the year with related parties

10. Imports during the year – (a) capital goods Rs 515.34 (Nil) lakh.

11. Expenditure in foreign currency for travelling Rs 26.78 (Rs 59.83) lakh and miscellaneous - Rs 15.00 (Nil) lakh.

12. Corresponding figures for previous year have been shown in brackets and regrouped, wherever necessary, to make them comparable.

Note No. 1.1 to 14.2 form an integral part of financial statements.

Note : Cash and cash equivalents include balances in special dividend accounts pending encashment of warrants, which are not available to the company for its use

Note : Electricity charges of consuming units are grossed up by the amount of credit given by Madhya Pradesh Electricity Distribution Company Ltd., in power bills on account of power generated and the same is recognised as inter-segment revenue at power generating unit so as to arrive at the segment revenue.

# Includes unallocated capital expenditure, corporate assets and corporate liabilities

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Mar 31, 2011

1. Contingent liabilities

(a) Claims against the company not acknowledged as debts -

Rs. in lakhs

Particulars of claims 31-03-2011 31-03-2010

i) By employees for wages and other benefits 165.00 40.48

ii) By South East Central Railway for payment of arrears of rent of railway sidings 109.68 109.68

iii) By contractors for non-fulfillment of contractual obligations 26.42 26.42

iv) By Forest Department for payment of transit fee on production of ore at Tirodi mine 79.45 72.28

v) Interest on arbitration award 216.17 100.65

vi) Employees'' professional tax 8.83 0.00

(b) Income tax assessments are completed upto assessment year 2008-09. Income tax payments made/refunds adjusted by the department against the disputed demands are shown under loans and advances.

Adjustment of these advances against disputed demand is made only after final settlement of appeals, pending at various levels. Demands made by the department, which are disputed by the company, and payments made against these demands, are as under -

Rs. in lakhs

Assessment Disputed Amount Balance on Pending with year demand paid 31st Mar''11

2005-06 350.27 350.27 Nil

2007-08 747.83 747.83 Nil Commissioner of Income Tax (Appeals)

2008-09 127.26 127.26 Nil

2006-07 16.30 16.30 Nil Income Tax Appellate Tribunal

There will not be any additional financial implications over and above the provisions already made as per company''s assessment.

(c) Company has given financial assurance of Rs. 186.04 (Rs. 181.67) lakhs to IBM by way of bank guarantees, towards progressive mine closure plans. Fixed deposit receipts of identical amount are held by banks/ Government departments against these bank guarantees.

(d) Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. 7908.48 (Rs. 904.01) lakhs. Advance paid for such contracts is Rs. Nil (Nil) lakhs.

2. Change in accounting policy

During the year under consideration, the company has changed its accounting policy on valuation of ferro manganese slag, which is treated as scrap. The stock of ferro manganese slag, which was not valued hitherto, is valued at net realizable price. The change has an impact on cost of production of finished product, i.e., ferro manganese. Consequent to this change in accounting policy, inventory of ferro manganese is reduced by Rs. 1107.40 lakh, inventory of ferro manganese slag is increased by Rs. 77.07 lakh and current year''s profit before tax is reduced by Rs. 1030.33 lakh and profit after tax is reduced by Rs. 688.08 lakh. The income from sale of slag, which was hitherto included in other income, is now included in sales. As a result, sales for the year are more by Rs. 1622.44 lakh and other income is reduced by an identical amount.

3. Land measuring 761.60 Sq. Mtrs. belonging to the company is acquired by Nagpur Improvement Trust for its Integrated Road Development Plan. Writ petition filed by the company seeking compensation is admitted by the High Court, Nagpur. Pending writ petition, no adjustment is done in books.

4. (a) Physical verification of inventories is carried out at the end of the year.

(b) Production and inventory of manganese ore is arrived on weight-volume ratio basis

(c) Inventories of bulk raw materials and finished goods in respect of ferro manganese plant are determined as per weight-volume ratio by the production/technical department and the same are accounted for accordingly.

(d) Inventory of raw materials includes stock of manganese ore of 249 (292) MT valuing Rs. 11.39 (Rs. 11.15) lakhs lying in ferro manganese plant site on 31.03.2011.

5. Letters for year-end balance confirmation of sundry debtors and sundry creditors have been sent to the parties. In respect of confirmations received, the company is under process of scrutinizing and reconciling the balances.

6. Documentation in respect of secured loans to employees is pending in some cases.

7. Miscellaneous income in Schedule 10 of other income includes Rs. 358.48 (Rs. 400.06) lakh towards forfeiture of EMD of customers for non-fulfillment of contractual obligations and Rs. 485.40 (Rs.Nil) lakh towards penalty recovered from supplier for short-generation of power.

8. For anticipated loss on disposal of obsolete stores/spares, provision of Rs. 3.49 (Rs. 4.20) lakhs made in accounts is considered adequate.

9. Income tax deducted at source from interest and rent received by the company amounts to Rs. 1797.28 (Rs. 1626.85) lakhs. Tax deduction certificates are awaited in some cases.

10. Sundry creditors include a sum of Rs. Nil (Rs. Nil) lakhs payable to micro, small and medium enterprises units, in excess of Rs. 1.00 lakh outstanding for more than thirty days.

11. Transactions with related parties – Disclosures of transactions with related parties as per Accounting Standard 18 are as under.

(i) List of related parties with whom transactions have taken place and relationship

1 Shri K.J.Singh Key management personnel

2 Shri M.A.V. Goutham Key management personnel

4 Shri A. K. Mehra Key management personnel

5 Shri G.P.Kundargi Key management personnel

6 SAIL & MOIL Ferro Alloys Pvt. Ltd. Joint venture company

7 RINMOIL Ferro Alloys Pvt. Ltd. Joint venture company

12. Imports of capital goods, stores/spares and raw materials - Rs. Nil (Nil) lakh.

13. Expenditure in foreign currency for travelling and miscellaneous - Rs. 59.83 (Rs. 7.00) lakh.

14. Corresponding figures for previous year have been shown in brackets and regrouped to make them comparable with those of the year under review.

---

Mar 31, 2010

1 Contingent liabilities

(a) Claims against the company not acknowledged as debts -

Rupees in lakhs

Particulars 31-03-2010 31-03-2009

(i) Claims for wages and other benefits to 40.48 28.66 employees

(ii) Claims by South East Central Railway for 109.68 109.68 payment of arrears of rent pertaining to railway sidings

(iii) Claims by contractors for non-fulfilment of 26.42 26.42 contractual obligations |

(iv) Claims by Forest Department for payment of 72.28 Nil transit fee on production of ore at Tirodi mine

(v) Claims by Forest Department for payment of net Present value in respect of leases already 97.34 Nil granted

(b) Income tax assessments are completed upto assessment year 2007-08. Income tax payments made/refunds adjusted by the department against the disputed demands are shown under loans and advances. Adjustment of these advances against disputed demand is made only after final settlement of appeals, pending at various levels. Demands made by the department, which are disputed by the company, and payments made against these demands, are as under - Assess- Disputed Amount Balance as Pending with ment year demand paid on 31st Mar* 10

Rs.-Lakhs Rs.-Lakhs Rs.

2007-08 83.03 83.03 Nil Commissioner of Income Tax (Appeals)

There will not be any additional financial implications over and above the provisions already made as per companys assessment.

(c) Company has given financial assurance of Rs. 181.67 (Rs. 170.93) lakhs to IBM by way of bank guarantees, towards progressive mine closure plans. Fixed deposit receipts of identical amount are held by banks/Government departments against these bank guarantees.

(d) Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. 904.01 (Rs. 1631.99) lakhs. Advance paid for such contracts is Rs. Nil (Rs. 10.18) lakhs.

2 Land measuring 761.60 Sq. Mtrs. belonging to the company is acquired by Nagpttr Improvement Trust for its Integrated Road Development Plan. Writ petition filed by the company seeking compensation is admitted by the High Court. Nagpur. Pending writ petition, no adjustment is done in books.

3 (a) Production and inventor) of manganese ore is arrived on weight-volume ratio basis (b) Inventories of bulk raw materials and finished goods in respect of ferro manganese plant are determined as per weight-volume ratio by the production/technical. department and the same are accounted for accordingly.

(c.) Inventory of raw materials includes stock of manganese ore of 292 (266) MT valuing Rs. 11.15 (Rs. 6.36) lakhs lying in ferro manganese plant site on 31.03.10.

4 Letters for year-end balance confirmation of sundry debtors and sundry creditors have been sent to the parties. In respect of confirmations received, the company is under process of scrutinizing and reconciling the balances.

5 Documentation in respect of secured loans to employees is pending in some cases.

6 The company has made provision of Rs. 1238.39 (Rs. 2115.88) lakhs for superannuation benefits to employees based on Board approval for which Ministrys approval is awaited.

7 For anticipated loss on disposal of obsolete stores/spares, provision of Rs. 4.20 (Rs. 4.20) lakhs made in accounts is considered adequate.

8 Income tax deducted at source from interest and rent received by the company amounts to Rs. 1626.85 (Rs. 2198.43) lakhs.

9 Sundry creditors include a sum of Rs. Nil (Rs. Nil) lakhs payable to S.S.I.units, in excess of Rs. 1.00 lakh outstanding for more than thirty days.

10 Transactions with related parties - Disclosures of transactions with related parties as per Accounting Standard 18 are as under.

(i) List of related parties with whom transactions have taken place and relationship

1 Shri K.J.Singh Key management personnel

2 Shri M.A.V. Goutham Key management personnel

4 Shri A. K. Mehra Key management personnel

5 Shri G.P.Kundargi Key management personnel

6 SAIL & MOIL Ferro Alloys Pvt. Ltd. Joint venture company

7 RILMOIL Ferro Alloys Pvt. Ltd. Joint venture company

11 Imports of capital goods, stores/spares and raw materials - Rs. Nil (Rs. 87.24) lakh.

12 Expenditure in foreign currency for traveling - Rs. 7.00 (Rs. 6.47) lakh.

13 Corresponding figures for previous year have been regrouped to make them comparable with those of the year under review. Figures in brackets in the schedules indicate corresponding figures of the previous year.

---

Mar 31, 2009

1. Contengent liabilites

Claims against the company not acknowledhed as debts-

(a) For wages and other benefits to employees - Rs. 29.66(Rs.27.85) lakhs.

(b) Claims by South East Central Railway for payment of arrears of rent pertaining to railway siding disputed by the Company amounting to Rs. 109.68 (Nil) lakh.

(c) Claims by contractors for non-fulfillment of contractual obligations Rs.25.42 (Rs.29.75) lakhs.

(d) Income tax assessments are completed upto assessment year 2006-07. Imcome tax payments made/refunds adjusted by the department against the disputed demands are shown under loans and advences. Adjustment of these advances against disputed demand is made only after final settlement of appeals at various levels.

Demands made by the department, which are disputed by the company, and payments made against these demands are as under--

Assessment Disputed Amount Balance us Pending with year demand paid on 31st Mar09 Rs. Rs. Rs.

2005-06 4746760 4746760 Nil Income Tax Appellate Tribunal (ITAT)

2006-07 1744410 1744410 Nil A.O and Commissioner of Income Tax (Appeals)

There will not be any additional financial implications over and above the provisions already made as per companys assessment.

(a) Company has given financial assurance of Rs. 170.93 (Rs. 156.42) lakhs to IBM by way of bank gurantees, towards progressive mine closure, in respect of progressive mine closure plans.

(f) Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. 1631.99 (Rs.4024.48) lakhs. Advance paid for such contracts is Rs. 10.18 lakhs (Rs.278.25 lakhs).

2. Land measuring 761.60 Sq. Mtrs. belonging to the company is acquired by Nagpur Improvement Trust for its integrated Road Development Plant. Writ pelition filed by the company seeking compensation is admitted by the High Court, Nagpur. Pending writ potition, no adjustment is done in books.

3. Letters for year-end balance confirmation of sundry deblors and sundry creditors have been sent to the parfies. In respect of confirmations received, the companys under.

process of scrutinizing and reconclling the balances.

4. For anticipated loss on disposal of obsolete stores/spares, provision of Rs. 4.20 (Rs.4.48) lakhs made in accounts is considered adequats.

5. Two of Companys customers had lodged claims for supply of one during 1989-90 to 1992-93 which, according to them, was not as per specifications. The matter wasa under arbitration and the arbiteator has given award after close of the financial year. holding the company liable for payment of damages and other costs. The company is taking further action in the matter. As per Accounting Standard 4 on Contingancies and Events accurring after Balance Sheet date issued by the institute of Chartered Accountants of India. liability of Rs. 639.15 lakhs has been created in the accounts for the year.

6. (a) Production and incentory of manganese ore is arrived on weight-valune ratio basis

(b) Inventories of bulk raw materials and finished goods in respect of ferro manganese plant are determined as per weight- volume ratio by the production/technical department and the same are accounted for accordingly.

(c) Inventory of raw materials includes stock of manganess ore of 256 (97) tonnes valuing Rs. 6.36 (Rs. 1.84) lakhs lying in ferro manganese plant site as on 31.03.09.

7. Documentation in respect of secured loans to employees is pending in some cases.

8. Due to non-fulfillment of contracted quantity, cases of various defaulting customers have been reviewed oncase to case basis and the EMD of Rs.386.52 (Rs.27.68) lakh has been forfeited.

9. Value of Imports for capital goods, stores/spares and raw materials is Rs. 57.24 (Rs.8.03) lakh.

10. Expenditure in foreign currency for travelling is Rs.6.47 (Rs.4.55) lakh.

11. The Company has taken a decision that prepaid expenses for and item of expenses below Rs. 100000/- should be charged to revenue in the year of payment.

Hitherto, the Company was bifurcating such payments into revenue and prepaid expenses. The impact due to change is not material.

12.Income tax deducted at source from interest and rent received by the company amounts to Rs. 2198.43 (Rs. 545.95) lakhs.

13. Interest billed on customers amounting to Rs. 39.28 (rs. Nil) lakhs relating to next, financial year has not been included in sundry debtors.

14. Closing stock value of ferro manganess and E.M.D. includes excise duty and education case liability of Rs. 89.21 (Rs.92.56) lakhs.

15. Wage agreement with unionized workers and staff has expired on 31.7.2007. Similarly pay recision for Executives is due from 1.1.2007. The Company has made necessary provision towards this liability, based on MOU signed with the recognized Union and D.PE. guidelines for 2nd pay revision of Executives.

16. Sundry creditors include a sum of Rs. Nil (Rs. Nil) lakhs payable to S.S.I unit, in excess of Rs. 1.00 lakh outstanding for more than thirty days. SSI units are identified based on the information avallable with the company.

17. Corresponding figures for previous year have been regroupe to make them comparable with those of the year under review. Figures in brackets in the schedules indicate corresponding figures of the previous year.

---

Mar 31, 2008

1 Contingent liabilities Claims against the company not acknowledged as debts-

(a) For wages and other benefits to employees-Rs. 27.85 (Rs. 58.14) lakhs.

(b) Two of the companys customers have lodged claims for supply of ore which, according to them, are not as per specifications. The claim for Rs. 454.00 (Rs. 454.00) lakhs on account of quality has been repudiated as the supplies to these customers are governed by regular sales contracts, which do not provide for such liability.

(c) Claims by contractors for non-fulfillment of contractual obligations Rs. 29.75 (Rs. 26) lakhs.

(d) Income tax assessments are completed upto assessment year 2005-06. Income tax payments made/refunds adjusted by the department against the disputed demands are shown under loans and advances. Adjustment of these advances against disputed demand is made only after final settlement of appeals, pending at various levels.

(e) Income Tax Department has raised a demand of Rs175.32 lakhs towards tax on perquisites of employees including interest thereon for the financial year 2001-02 to 2005-06. Company has paid Rs. 61.12 lakhs towards tax on perquisite of employees, under protest.

(f) Company has given financial assurance of Rs. 166.42 (Rs. 156.86) lakhs to IBM by way of bank guarantees, towards progressive mine closure, in respect of progressive mine closure plans.

(g) Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. 4024.48 (Rs. 2453.87) lakhs. Advance paid for such contracts is Rs. 278.25 lakhs (Rs. 456.54 lakhs).

2. Land measuring 761.60 Sq. Mtrs. belonging to the company is acquired by Nagpur Improvement Trust for its Integrated Road Development Plan. Writ petition filed by the company seeking compensation is admitted by the High Court, Nagpur. Pending writ petition, no adjustment is done in books.

3. Letters for year-end balance confirmation of sundry debtors and sundry creditors have been sent to the parties. In respect of confirmations received, the company is under process of scrutinizing and reconciling the balances.

4. For anticipated loss on disposal of obsolete stores/spares, provision of Rs. 4.48 (Rs. 4.99) lakhs made in accounts is considered adequate.

5. (a) Production and inventory of manganese ore is arrived on weight-volume ratio basis

(b) Inventories of bulk raw materials and finished goods in respect of ferro manganese plant are determined as per weight-volume ratio by the production/technical department and the same are accounted for accordingly.

(c) Inventory of raw materials includes stock of manganese ore of 97 (1427) tonnes valuing Rs. 1.84 (Rs. 25.36) lakhs lying in ferro manganese plant site as on 31.03.08.

6. Documentation in respect of secured loans to employees is pending in some cases.

7. Unclaimed balances of Rs. Nil (Rs. 12.52) lakhs in sundry creditors accounts have been transferred to miscellaneous income during current year as there is no possibility of such claims getting materialized.

8. Due to non-fulfillment of contracted quantity, cases of various defaulting customers have been reviewed on case to case basis and the EMD of Rs. 27.68 (Rs. 427.80) lakh has been forfeited.

9. Value of imports for capital goods, stores/spares and raw materials is Rs. 8.03 (Rs. 32.34) lakh,

10. Expenditure in foreign currency for travelling is Rs. 4.55 (Rs. 10.25) lakh.

11. The Company has adopted Accounting Standard -15 (Revised 2005) Employees Benefits in the current year. In accordance with the stipulation of the Standard, the Company has adjusted Rs. 1560.33 lakhs (net of deferred tax asset aggregating to Rs. 803.45 lakhs) towards the additional liability of Deferred Benefit obligation in respect of gratuity and leave encashment upto 31st March2007, against the balance of General Reserve as at last April2007.

12. As Per AS-15 Framed By The Institute of Chartered Accountants of India, an amount of Rs. 579.75 lakhs, which includes unamortized carried forward balance of Rs. 384.91 lakhs as on 31.03.2007 and Rs. 194.84 lakhs paid during current year (Previous year Rs. 433.59) lakhs has been charged to profit and loss account towards expenditure incurred on voluntary retirement scheme Due to change in the policy, Rs. 358.95 lakhs has been additionally charged to Profit & loss account during the year 2007-08.

13. Income tax deducted at source from interest and rent received by the company amounts to Rs. 845.95 (Rs. 432.98) lakhs.

14. lnterest billed on customers amounting to Rs.Nil (Rs.27.17)lakhs relating to next financia lyear has not been included in sundry debtors.

15. Closing stock value of ferro manganese and E.M.D. includes excise duty and education cess liability of Rs.92.66(Rs.97.59) lakhs.

16. Wage agreement with unionized workers and staff has expired on 3 1.7.2007. Similarly pay revision for Executives is due from 1.1 ,2007.The Company has made necessary provision towards this liability, based on fair estimate.

17. Sundry creditors include a sum of Rs. Nil (Rs. 4.09) lakhs payable to (Maharashtra Carbon Pvt. Ltd., Chandrapur), S.S.I.unit, in excess of Rs. 1.00 lakh outstanding for more than thirty days. SSI units are identified based on the information available with the company.

18. The Company has proposed to enter into power agreement with MPSEB, on the line approved by Madhya Pradesh Energy Regulatory Commission(MPERC). Pending finalization of agreement, power generated by the company has been put into the state Power Grid. Accordingly an amount of Rs.40.47 lakhs has been recognized as income from sale of Energy.

19. Expenditure on account of Electricity consumption of Balaghat Mine/Ferro Manganese Plant was grossed up and correspondingly revenue is shown under "Other Income" for the quantum of Electricity generated by Wind Turbine Generators during 2006-07. As per opinion obtained from the Institute of Chartered Accountants of India and suggested by the Institute to treat this as captive consumption during the year 2007-08 , the grossing up practice of Electricity charges has been discontinued and accordingly Accounting policy has been revised. However, Electricity charges are grossed up for segment reporting.

20. Corresponding figures for Previous year have been regrouped to make them comparable with those of the year under review. Figures in brackets in the schedules indicate corresponding figures of the previous year. Schedule No. 1 to 21 form an integral part of financial statements.

---

Mar 31, 2007

1. Contingent liabilities

Claims against the company not acknow-ledged as debts -

(a) For wages and other benefits to empl-oyees Rs. 58.14 (Rs. 65.78) lakhs.

(b) Two of the Companys customers have lodged claims for supply of ore which, according to them, are not as per speci-fications. The claim for Rs. 454.00 (Rs. 454.00) lakhs on account of quality has been repudiated as the supplies to these customers are governed by regular sales contracts, which do not provide for such liability.

(c) Claim by contractors for nonfulfillment of contractual obligations Rs. 26.00 (Rs. Nil) Lakhs.

2. Land measuring 761.60 Sq. Mtrs. belonging to the company is acquired by Nagpur Improvement Trust for its Integrated Road Development Plan. Writ petition filed by the company seeking compensation is admitted by the High Court, Nagpur. Pending writ petition, no adjustment is done in books.

3. The Company made a contribution of Rs. 686.23 (Rs. 510.00) lakhs to Gratuity Trust, being the amount equal to the payment made by Trust to Life Insurance Corporation of India towards Group Gratuity [Cash Accumulation) Scheme. In line with the accounting policy, an amount of Rs. 76.48(Rs. 229.65) lakh is paid directly to employees retired under voluntary retirement scheme and charged to profit and loss account.

4. Letters for year-end balance confirmation of sundry debtors and sundry creditors have been sent to the parties. Confirmations are awaited. In respect of confirmations received, the company is under process of scrutinizing and reconciling the balances.

5. For anticipated loss on disposal of obsolete stores/spares, provision of Rs. 4.99 (Rs. 3.93) lakhs is considered adequate.

6. (a) Production and inventory of manganese ore are arrived on weight-volume ratio basis.

(b)lnventories of bulk raw materials and finished goods in respect of Ferro Manganese Pl-ants are determined as per weight-volume ratio by the production/technical department and the same are accounted for accordingly.

(c)lnventory of raw materials includes stock of manganese ore of 1427 (1019) tonnes valuing Rs.25.36 (Rs.16.00) lakhs lying in ferro manganese plant site as on 31/03/07.

7. Documentation in respect of secured loans to employees is pending in some cases.

8. Unclaimed balances of Rs. 12.52 (Rs. 7.35) lakhs in sundry creditors accounts have been transferred to miscellaneous income during current year as there is no possibility of such claims getting materialized.

9. In view of rise in demand from customers for manganese ore vis-a-vis their off take in earlier years, company has insisted for deposit of EMD we.f the year 2005-06 to ensure fulfillment of contracts. As per decision taken by the managment during current year cases of various defaulting customer have been reviewed on case to case basis and the EMD of Rs. 427.80 lakhs has been forfeited. This includes Rs. 329.1 7 lakhs pertaining to financial year 2005-06, which been shown under prior period adjustments.

10. The Govt, of Madhya Pradesh enacted Madhya Pradesh Gramin Avsanrachana Tatha Sadak Vikas Adhniyam 2005 effective 30 th September 05 and raised a demand of Rs. 246.95 lakhs for period up to 31st march 06.

The compant challanged the demand in Honble jabalpur High court and stay has been granted which is still inforce. Further the company has not received any demand from Madhya Pradesh for the year 2006-07 pending settlement of the issue the company decided to collect the ammount form customer effective 30 th sept 05 and raised demand for Rs. 1111.11 lakhs on customer till 31st march 07 which is shown as liability.

11. Value of imports for capital goods, stores/spares and raw materials is Rs. 32.34 (Rs. Nil) lakh.

12. Exports during the year at FOB is Rs. Nil (Rs. Nil) lakhs.

13. (a) Earning in foreign exchange for export of manganese ore is Rs. Nil (Rs. Nil) during the year.

(b)Expenditure in foreign currency for traveling is Rs.l 0.25 (Rs. 2.68) lakh.

14. As per AS-15 framed by the Institute of Chartered Accountants of India, provision for leave encashment benefit has been calculated on the basis of actuarys valuation. Provision of Rs. 199.61 (Rs.l55.38)lakhs has been made during the year.

15. As per AS-1 8 framed by the Institute of Chartered Accountants of India, disclosures of transactions with related parties, as defined in the accounting standard, are given below:

(i) List of related parties with whom transactions have taken place and relationship

1) Shri K.L Mehrotraa Key management personnel 2) Shri B.B.Choudhary Key management personnel 3) Shri M.A.V.Goutham Key management personnel 4) Shri C.P.N.Pathak Key management personnel

(ii) Transactions during the year with related parties

1 Remuneration paid Rs. 3164658 (Rs.4381 792)

2 Reimbursement of traveling expenses Rs. 3390967 (Rs. 3395634)

(iii) Sitting fees to part-time Directors Rs. 45500 (Rs. 77000)

16 Income Tax deducted at source from interest and rent received by the Company amounts to Rs. 432.58 (Rs. 255.37) lakhs.

17 Interest billed on customers amounting to Rs. 27.1 3 (Rs.27.55] lakhs relating to next financial year has not been included in sundry debtors.

18 Closing stock value of Ferro Manganese, and E.M.D. includes excise duty and education cess liability of Rs. 97.59 (Rs. 120.72) lakhs.

19 Anamount of Rs. 38.79 (Rs. 2.90) lakh has been provided towards anticipated liability on account of pay revision of officers governed by CDA/IDA pay pattern.

20 Sundry creditors include a sum of Rs. 4.09 (Rs. Nil) lakhs payable to Maharshtra Corbon Pvt. Ltd., Chandrapur, S.S.I. units in excess of Rs. 1.00 lakh outstanding for more than 30 days.

21 Corresponding figures for previous year have been regrouped to make them comparable with those of the year under review. Figures in brackets in the schedules indicate corresponding figures of the previous year.

---

Mar 31, 2005

1. Contingent liabilities

Claims against the company not acknowledged as debts-

(a) For wages and other benefits to employees-Rs. 56.73 (Rs. 46.79) lakhs.

(b) Two of the companys customers have lodged claims for supply of ore which, according to them, are not as per specifications. The claim for Rs. 454.00 (Rs. 454.00) lakhs on account of quality has been repudiated as the supplies to these customers are governed by regular sales contracts, which do not provide for such liability.

(c) Income tax assessments are completed upto assessment year 2002-03. Income tax payments made/refunds adjusted by the department against the disputed demands are shown under loans and advances. Adjustment of these advances against disputed demand is made only after final settlement of appeals, pending at various levels. Demands made by the department, which are disputed by the company, and payments made/refunds adjusted against these demands are as under-Assessment year Disputed Demand Adjusted by the Balance as Pending with

department/paid under protest on 31.03.05 Rs. Rs. Rs.

1997-98 3,52,31,400 3,52,31,400 Nil Tribunal

1998-99 3,50,33,790 3,50,33,790 Nil Tribunal

1999-00 2,20,81,642 2,20,81,642 Nil Tribunal

2000-01 16,94,434 16,94,434 Nil CIT (A)

2001-02 1,94,81,151 1,94,81,151 Nil CIT (A)

2002-03 1,00,94,395 Nil 1,00,94,395 CIT (A)

As regards assessment year 2002-03, the demand of Rs. 100.94 lakhs is not paid as an application for stay of demand is mage with the assessing officer, which is pending.

Disputed tax demands are not provided for in the books because as per companys assessment, there will not be any additional financial implications over and above the provisions already made.

(d) Company has given financial assurance of Rs. 87.49 lakh by way of bank guarantees towards progressive mine closure to IBM in respect of progressive mine closure plans.

2. (a) Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. 648,69 lakhs (Rs. 756.18 lakhs). Advance paid for such contracts is Rs. 0.68 lakhs (Rs. 6.94 lakhs).

(b) Land measuring 761.60 Sq. Mtrs. belonging to the company is acquired by Nagpur Improvement Trust for its Integrated Road Development Plan. Writ petition filed by the company seeking compensation is admitted by the High Court, Nagpur, Pending writ petition, no adjustment is done in books.

3 The company made a contribution of Rs. 414.90 (Rs. 382.96) lakhs for the year 2004-05 to Gratuity Trust, being the amount equal to the payment made by Trust to Life Insurance Corporation of India towards Group Gratuity (Cash Accumulation) Scheme.

4 Letters for year-end balance confirmation of sundry debtors and sundry creditors have been sent to the parties. Confirmations are awaited. In respect of confirmations received, the company is under process of scrutinizing and reconciling the balances.

5 For anticipated loss on disposal of obsolete stores/spares, provision of Rs. 3.04 (Rs. 3.04) lakhs is considered adequate.

6 (a) Difference of 19 tonnes of manganese ore included in closing stock as on 31.03.04 has been reconciled with mines records during 2004-05.

(b) Difference of 234 tonnes of manganese ore between quantities dispatched and billed during the year 2004-05 has not been adjusted which shall be dealt with appropriately in 2005-06, when reconciled.

7 (a) Production and inventory of manganese ore are arrived on weight-volume ratio basis.

(b) Inventories of bulk raw materials and finished goods in respect of ferro manganese plant are determined as per weight-volume ratio by the production/technical department and the same are accounted for accordingly.

(c) Inventory of raw materials includes stock of manganese ore of 962 (1581) tonnes valuing Rs. 13.72 (Rs. 24.80) lakhs lying in ferro manganese plant site as on 31.03.05.

8. During the year, an amount of Rs. 0.07 (Rs. 45.21) lakhs towards doubtful debts provided for has been written off from the provision.

9. Documentation in respect of secured loans to employees is pending in some cases.

10. All credit balances of Rs.5000/- and below and more than five years lying in sundry creditors account have been transferred to miscellaneous income. Accordingly, an amount of Rs. 0.32 (Rs. 0.54) lakh has been transferred to miscellaneous income.

11 Value of imports for capital goods, stores/spares and raw materials is Rs. Nil (Rs. Nil).

12 Exports during the year at FOB is Rs. Nil (Rs. 1062.82) lakhs.

13 (a) Earning in foreign exchange for export of manganese ore is US$ Nil (US$ 23.49) lakhs, i.e., Rs. Nil (Rs. 1062.82 lakhs) during the year.

(b) Expenditure in foreign currency for travelling is Rs. 4.09 (Rs. Nil) lakh.

14 As per AS-15 framed by the Institute of Chartered Accountants of India, provision for leave encashment benefit has been calculated on the basis of actuarys valuation for the year 2004-05, which amounts to Rs. 901.49 (Rs.760.12) lakhs as on 31.03.05.

15. Unclaimed salaries/wages of more than three years are transferred to Lapsed Unclaimed Account. Accordingly, an amount of Rs. 1.96 (Rs. 2.21) lakhs towards unclaimed wages, etc., has been transferred to Lapsed Unclaimed Account during the year 2004-05.

19. An amount of Rs. 84.05 (Rs. 65.23) lakhs is deducted towards income tax at source during the year from interest/rent received by the company.

20. Interest billed on customers amounting to Rs. 45.61 (Rs. 20.57) lakhs relating to next financial year has not been included in sundry debtors.

21. Closing stock value of ferro manganese, E.M.D. and H.I.M.S. includes excise duty and education cess liability of Rs.190.08 (Rs. 36.90) lakhs.

22. Earlier wage agreement with unionized workers and staff has expired on 31.07.02. Negotiations for revision of wages/salaries between Management and Union were concluded during the year and Memorandum of Understanding was signed on 18.01.05. In line with the agreement terms, final liability towards wage/salary arrears payable to workers/staff for the period 01.08.02 to 31.03.05 worked out to Rs. 1604.39 lakhs. After deducting the interim relief paid and the provisions made in earlier years, a further provision of Rs.928.86 lakhs is made during the year.

23. Sundry creditors include a sum of Rs. 4.23 (Rs. 1.75) lakhs payable to S.S.I. units of Rs. 1.00 lakh or more for more than thirty days.

Details are as under-

(a) Elemec Mining and Engineers Rs. 2.33 (Rs.1.75) lakhs

(b) Hemendra Metal Industries Rs. 1.90 (Nil) lakhs

24 During the year, the company has received demand of Rs. 310.19 lakhs towards compensation for diversion of forest land for non-forest purposes. In line with the accounting policy, an amount of Rs. 56.15 lakhs has been amortised during the year.

26. Corresponding figures for previous year have been regrouped to make them comparable with those of the year under review. Figures in brackets in the schedules indicate corresponding figures of the previous year.