Notes to Accounts of Suraj Products Ltd.

Mar 31, 2025

M. Provisions and Contingent Liabilities:

Provisions are recognized when the company has a legal or constructive obligation as a
result of a past event, for which it is probable that a cash outflow will be required and a
reliable estimate can be made of the amount of obligation. The amount recognised as a
provision is the best estimate of the consideration required to settle the present obligation at
the end of the reporting period, taking into account the risks and uncertainties surrounding
the obligation. When a provision is measured using the cash flows estimated to settle the
present obligation, its carrying amount is the present value of those cash flows (when the
effect of the time value of money is material).

Contingent Liabilities are disclosed when the company has a possible obligation or a present
obligation and it is probable that a cash outflow will not be required to settle the obligation.

N. Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit / (loss) before tax is adjusted
for the effects of transactions of non-cash nature and any deferrals or accruals of past or
future cash receipts or payments. The cash flows from operating, investing and financing
activities of the Company are segregated based on the available information.

O. Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party
to the contractual provisions of the instruments.

Financial assets and financial liabilities are measured at fair value except when amortised
cost approach is used. Transaction costs that is directly attributable to the acquisition or
issue of financial assets and financial liabilities (other than financial assets and financial
liabilities at fair value through profit or loss) are added to or deducted from the fair value of the
financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs

directly attributable to the acquisition of financial assets or financial liabilities at fair value
through profit or loss are recognised immediately in profit or loss.

Financial assets

All recognised financial assets are subsequently measured in their entirety at either amortised
cost or fair value, depending on the classification of the financial assets.

Classification of financial assets

Debt instruments that meet the following conditions are subsequently measured at amortised
cost (except for debt instruments that are designated as at fair value through profit or loss on
initial recognition): the asset is held within a business model whose objective is to hold
assets in order to collect contractual cash flows; and the contractual terms of the instrument
give rise on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding. Debt instruments that meet the following conditions are
subsequently measured at fair value through other comprehensive income ("FVTOCI") (except
for debt instruments that are designated as at fair value through profit or loss on initial
recognition): the asset is held within a business model whose objective is achieved both by
collecting contractual cash flows and selling financial assets; and the contractual terms of
the instrument give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding. Interest income is recognised in profit or
loss for FVTOCI debt instruments. All other financial assets are subsequently measured at
fair value.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a debt instrument
and of allocating interest income over the relevant period. The effective interest rate is the
rate that exactly discounts estimated future cash receipts (including all fees and points paid
or received that form an integral part of the effective interest rate, transaction costs and other
premiums or discounts) through the expected life of the debt instrument, or, where appropriate,
a shorter period, to the net carrying amount on initial recognition. Income is recognised on an
effective interest basis for debt instruments other than those financial assets classified as at
FVTPL. Interest income is recognised in profit or loss and is included in the "Other income"
line item.

Impairment of financial assets

The Company applies the expected credit loss model for recognising impairment loss on
financial assets measured at amortised cost, debt instruments at FVTOCI, trade receivables,
other contractual rights to receive cash or other financial asset, and financial guarantees not
designated as at FVTPL. Expected credit losses are the weighted average of credit losses
with the respective risks of default occurring as the weights.

Derecognition of financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows
from the asset expire, or when it transfers the financial asset and substantially all the risks
and rewards of ownership of the asset to another party.

Financial liabilities and equity instruments
Classification as debt or equity

Debt and equity instruments issued by Company are classified as either financial liabilities
or as'' equity in accordance with the substance of the contractual arrangements and the
definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an
entity after deducting all of its liabilities.

Financial liabilities

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are
measured at amortised cost at the end of subsequent accounting periods. The carrying
amounts of financial liabilities that are subsequently measured at amortised cost are
determined based on the effective interest method.

Interest expense that is not capitalised as part of costs of an asset is included in the ''Finance
costs'' Line item. The effective interest method is a method of calculating the amortised cost
of a financial liability and of allocating interest expense over the relevant period. The effective
interest rate is the rate that exactly discounts estimated future cash payments (including all
fees and points paid or received that form an integral part of the effective interest rate,
transaction costs and other premiums or discounts) through the expected life of the financial
liability. All financial liabilities are subsequently measured at amortised cost using the effective
interest method or at FVTPL.

Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company''s
obligations are discharged, cancelled or have expired.

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet
where there is a legally enforceable right to offset the recognised amounts and there is an
intention to settle on a net basis or realise the asset and settle the liability simultaneously.
The legally enforceable right must not be contingent on future events and must be enforceable
in the normal course of business and in the event of default, insolvency or bankruptcy of the
Company or the counterparty.

Rounding off amounts

All amounts disclosed in financial statements and notes have been rounded off to the nearest
Lakh as per requirement of Schedule III of the Act, unless otherwise stated.

ii) Demand had been raised by M/s WESCO Ltd. in respect of arrear electricity charges
amounting to '' 16.58 lakh. The company had filed suit against the claim before the
pertinent Appellate Authorities and favorable verdict had been ruled in favour of the com¬
pany. The company had paid 50% of the amount against the same which is shown under
Deposit Others under Short Term Loans and Advances as the company is claiming refund
of the same. However M/s WESCO Ltd. had filed petition before Hon. High Court of
Odisha. The company does not foresee any liability in respect of above contingent liabili¬
ties and hence no provision has been made for the same.

b) Commitments

Estimated amount of contracts remaining to be executed on capital account and not
provided for INR 50.00 lakhs (net of advances) (P.Y.75.00 Lakhs).

42. Disclosure under Section 186(4) of the Companies Act, 2013

During the year, the Company has given the following loans to other bodies corporate:

43. Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital,
share premium and all other equity reserves attributable to the equity holders of the Company.
The primary objective of the Company''s capital management is to maximize the shareholder
value.

The company determines the capital requirement based on annual operating plans and long¬
term and other strategic investment plans. The funding needs are met through equity, cash
generated from operations, long-term and short-term borrowings. The Company monitors the
capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt
portfolio of the company. Net debt includes interest bearing borrowing, cash and cash equivalents.

The table below summarises the capital, net debt and net debt to equity ratio of the company

44. The company has commissioned captive Power Plant (CPP) during the FY 2016-17. The said
units is eligible to claim deduction under section 80IA of the Income tax act ,1961 with respect
to 100% of the profit & gains derived from this business for any Ten years in the subsequent
fifteen years (referred to as Tax Holiday Period). The Company has started availing benefits
under section 80IAof the Income Tax Act from the financial year 2021-22.

45. The Income-Tax authorities (''the department'') had conducted search activity during 2023-2024.
The Company had received communication from the department regarding the assessment
proceedings, however no assessment has been completed. The Management, after considering
all available records and facts known to it, is of the view that there is no material adverse impact
on the financial position of the Company and no adjustments are required to the financial
statement.

46. Advance for land includes Rs.645 Lacs has been paid to State Bank of India for purchase of
land at Rajgangpur, Odisha. The matter is sub-judice. Necessary adjustments in the financial
will be made based upon the outcome of the matter.

47. Financial Assets & Liabilities

a) Fair Market Value Disclosure: The management considers that the carrying amounts of
financial assets and financial liabilities recognised in the financial statements approximate
their fair values.

b) Financial Risk Management Objectives:

The company''s management monitors and manages the financial risks relating to the
operations of the company. These risks include market risk (including currency risk, interest
rate risk and other price risk), credit risk and liquidity risk.

(i) Market Risk

Market risk is the risk that the fair value or the future cash flows of a financial instrument
will fluctuate because of changes in market prices. Such change in value of financial
instruments may result from changes in the foreign currency exchange rates, interest
rates, credit, liquidity and other market changes.

Foreign Currency Risk

The company has its operations based mainly within the country. So, the company
does not have any significant foreign currency risks.

Interest Rate Risk

The company has investments mainly in fixed interest bearing investments. Hence
the company is not significantly exposed to interest rate risks. The interest rate on
borrowings ranged from 8.95% to 9.25% in the previous year & 9.00% to 9.50% in the
current year.

(ii) Credit Risk

Credit Risk refers to the risk of default on its obligation by the counterparty resulting
in a financial loss. The maximum exposure to credit risk is on account of trade
receivables amounting to Rs.1410.96 Lakhs as at 31st March, 2025 and Rs. 794.88
Lakhs as at 31st March, 2024. Trade receivables are typically unsecured and derived
from revenue earned from customers. Credit risk is managed by establishing credit
limits and reviewing the credit approvals provided to various customers. The company
has no expected credit loss as at 31st March, 2025.

(iii) Liquidity Risk

Liquidity risk is the risk that the company will encounter difficulty in meeting obligations
associated with financial liabilities that are settled by delivering cash or other financial
asset.

The company''s principal sources of liquidity are cash and cash equivalents, bank
fixed deposits and the cash that is generated from operations.

The company manages liquidity risk by maintaining adequate reserves and by
continuously monitoring forecast and actual cash flows. The company generates
sufficient cash flows from current operations which together with the available cash
and cash equivalents provide liquidity both in the short-term as well as in the long¬
term.

48 . The following additional information (other than what is already disclosed elsewhere) is disclosed
in terms of amendments dated March 24, 2021 in Schedule III to the Companies Act 2013 with
effect from 1st day of April, 2021:

(a) There is no proceeding initiated or pending against the company during the year for
holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and
rules made thereunder.

(b) The Company has borrowings from banks on the basis of security of current assets. The
quarterly returns or statements of current assets filed by the Company with banks or
financial institutions are generally in agreement with the books of accounts except some
minor differences which are not material to report.

(c) The company is not declared willful defaulter by any bank or financial Institution or any
other lenders.

(d) There is no scheme of arrangements has been approved during the year by the Competent
Authority in terms of Sections 230 to 237 of the Companies Act, 2013.

(e) There is no transaction that has not been recorded in the books of accounts and surrendered
or disclosed as income during the year in the tax assessments under the Income Tax
Act, 1961.

(f) The company has complied with the number of layers prescribed under clause (87) of
section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017

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

(h) There are no creation or satisfaction of charges as at 31st March, 2025 pending with
ROC beyond the statutory period.

(i) No funds have been advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the Company to or in any other person
or entity, including foreign entities ("Intermediaries") with the understanding, whether
recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified
by or on behalf of the Company (Ultimate Beneficiaries).

(j) The Company has not received any fund from any party(Funding Party) with the
understanding that the Company shall whether, directly or indirectly lend or invest in
other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries")
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

L Previous year''s figures have been regrouped /reclassified wherever necessary to correspond

with the current year''s classification/disclosure.

> per our report attached of even date For and on behalf of Board of Directors

)R G A R V & Associates C. K Bhartia Y. K. Dalmia

lartered Accountants Chairman Managing Director

m Registration No. 301094E DIN-00192694 DIN-00605908

shish Rustagi)

irtner Gagan Goyal Neha Singhania S. Dalmia

ambership No. 062982 Executive Director Director Director

DIN-06678938 DIN-06879112 DIN-00605973

ace : Kolkata

ate : 17th day of May, 2025 M. K. Hati A. N. Khatua

Chief Financial Officer Company Secretary

---

Mar 31, 2024

The company assesesses at each date of balance sheet whether a financial asset or a group of financial assets is impaired. Ind AS-109 "Financial Instruments" requires expected credit losses to be measured through a loss allowance. The company has used a practical expedient & adjusted for foward looking information to compute expected credit losses. Based on historical credit loss expreienced for the company & considering forward looking information, there is no expected credit loss allowance on trade receivables.

(b) Rights, Preferances & Restrictions attached to Shares

The company has issued one class of equity shares having a par value of '' 10 per share. Each holder of Equity Share is entiled to one vote per share held. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

The Board of Directors of the Company has at its meeting held on 23rd May 2024 recommended a final dividend of '' 2.00 per share for the year ended 31st March 2024 (Previous year '' 1.50 per share)

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. Retained earnings includes re-measurement loss/(gain) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss. Retained earnings is a free reserve available to the Company.

Nature of Security and terms of repayment for Secured borrowings

Nature of Security

a) Term loan amounting to '' 4.44 Crores (P.Y.'' 6.61 Crores) is secured by EMT of Rolling Mill and Induction Furnace built out of the term loan and collaterally secured against all fixed assets of the company and further secured by personal guarantee of two directors and Fixed Deposit Receipts of '' 54 lacs.

b) Working Capital Term loan amounting to '' 4.81 Crores (P.Y. '' 7.43 Crores) is secured by hypothecation of stock & bookdebts and EMT of all the fixed asstes of the Company and further secured by personal guarantee of two directors and Fixed Deposit Receipts of ''54 lacs.

c) Working Capital Term loan amounting to '' 4.92 Crores (P.Y. '' 5.25 Crores) is secured by hypothecation of stock & bookdebts and EMT of all the fixed asstes of the company and further secured by personal guarantee of two directors and Fixed Deposit Receipts of ''54 lacs.

d) Term loan amounting to '' 4.80 Crores (P.Y. '' 4.97) is secured by EMT of all the fixed asstes created out of this facility and further secured by personal guarantee of two directors and Fixed Deposit Receipts of ''54 lacs.

e) Vehicle loans from HDFC Bank is secured by hypothecation of the vehicle financed.

1. Key Managerial Personnel are under the employment of Company are entitled to post employment benefits and other long term employee benefits recognized as per Ind AS 19 - ''Employee Benefits'' in the financial statements. As these employee benefits are lump sum amounts provided on the basis of actuarial valuation, the same is not included above. Further re-imbursement of expenses to KMP are not included above.

2. Director''s remuneration for the year 2023-2024 is as per limits prescribed under Section 197 read with Schedule V of the Companies Act, 2013.

3. All related party contracts / arrangements have been entered in ordinary course of business and are approved by the board of directors.

Segment Reporting:

As per Ind AS 108, the company operates predominantly only in one operating segment, i.e. finished products from Iron Ore. The company is captive consuming the whole power generated through the power plant. Hence, there is no reportable operating segment.

Corporate Social Responsibility:

Company has spent '' 32.17 Lakhs during the F.Y 2023-24 against its obligation of '' 54.05 Lakhs determined for FY 2023- 24 towards contribution on Corporate Social Responsibility under the provisions of section 135 of Companies Act 2013 and rules made thereunder. CSR Obligation of '' 54.05 lakhs for FY 2023-24 has been set off against the excess spent of '' 26.29 Lakhs carried forward from FY 2022-23. CSR spend of FY 2023-24 of '' 4.41 has been carried forward to immediate three succeeding financial years pursuant to the Companies (Corporate Social Responsibility Policy) Amendment Rules 2021 dated January 22, 2021.

Employee Benefits

As per Ind AS 19 "Employees benefits" the disclosures as defined in the Accounting Standard are given below :

The amount recognized in the balance sheet and the movements in the net defined benefit obligation over the year are as follows:

Changes in defined benefit obligation.

Reasons for variance of more than 25% in above ratios

1) Current ratio has improved mainly due to decrease in short term borrowing of the company.

2) Debt Equity ratio has improved mainly due to increase in equity on account of current years profit & decrease in short term borrowing

3) Inventory Turnover Ratio has improved mainly due to increase in turnover of the company.

40.	Contingent liabilities and Commitments a) Contingent Liabilities i) Claims not acknowledged as debt in respect of the following: -
	Sl.	Particulars	As at March	As at March
	No.		31st, 2024	31st, 2023
	(i)	Disputed Demand of Orissa Sales Tax	9.08	9.08
	(ii)	Disputed Demand of Central Sales Tax	4.91	4.91
	(iii)	Disputed Demand of Orissa Entry Tax	22.45	22.45
	(Iv)	Disputed Demand of Income Tax	17.01	17.01

ii) Demand had been raised by M/s WESCO Ltd. in respect of arrear electricity charges amounting to Rs. 16.58 lakh. The company had filed suit against the claim before the pertinent Appellate Authorities and favorable verdict had been ruled in favour of the company. The company had paid 50% of the amount against the same which is shown under Deposit Others under Short Term Loans and Advances as the company is claiming refund of the same. However M/s WESCO Ltd. had filed petition before Hon. High Court of Odisha. The company does not foresee any liability in respect of above contingent liabilities and hence no provision has been made for the same. b) Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for INR 75.00 lakhs (net of advances) (P.Y. Nil).

41. Code of Social Security

The code on social security,2020 (''Code'') relating to employee benefits during employment

and post-employment benefits received presidential assent in September 2020. The code has been published in the Gazette of India. However, the date on which the code will come into effect has not been notified and the final rules/ interpretations have not yet been issued. The company will assess the impact of the code when it comes into effect and will record any related impact in the period code becomes effective

42. Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximize the shareholder value.

The company determines the capital requirement based on annual operating plans and longterm and other strategic investment plans. The funding needs are met through equity, cash generated from operations, long-term and short-term borrowings. The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt portfolio of the company. Net debt includes interest bearing borrowing, cash and cash equivalents.

43. The company has commissioned captive Power Plant (CPP) during the FY 2016-17. The said units is eligible to claim deduction under section 80IA of the Income tax act ,1961 with respect to 100% of the profit & gains derived from this business for any Ten years in the subsequent fifteen years (referred to as Tax Holiday Period). The Company has started availing benefits under section 80IAof the Income Tax Act from the financial year 2021-22.

44. The Income-Tax authorities (''the department'') had conducted search activity during the Year. As on the date, the Company has not received any written communication from the department regarding the outcome of the search, therefore, the consequent impact on the financial statements, if any, is not ascertainable. The Management, after considering all available records and facts known to it, is of the view that there is no material adverse impact on the financial position of the Company and no adjustments are required to the financial statements.

45. Advance for land includes ''645 Lacs has been paid to State Bank of India for purchase of land at Rajgangpur, the matter is subjudices , necessary adjustments in the financial will be made based upon the outcome of the matter.

46. Financial Assets & Liabilities

a) Fair Market Value Disclosure: The management considers that the carrying amounts of financial assets and financial liabilities recognised in the financial statements approximate their fair values.

b) Financial Risk Management Objectives:

The company''s management monitors and manages the financial risks relating to the operations of the company. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

(i) Market Risk

Market risk is the risk that the fair value or the future cash flows of a financial instrument will fluctuate because of changes in market prices. Such change in value of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes.

Foreign Currency Risk

The company has its operations based mainly within the country. So, the company does not have any significant foreign currency risks.

Interest Rate Risk

The company has investments mainly in fixed interest bearing investments. Hence the company is not significantly exposed to interest rate risks. The interest rate on borrowings ranged from 9.00% to 9.50% in the previous year & 9.00% to 9.60% in the current year.

(ii) Credit Risk

Credit Risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to credit risk is on account of trade receivables amounting to Rs.7.95 crores as at 31st March, 2024 and Rs. 12.03 crores as at 31st March, 2023. Trade receivables are typically unsecured and derived from revenue earned from customers. Credit risk is managed by establishing credit limits and reviewing the credit approvals provided to various customers. The company has no expected credit loss as at 31st March, 2024.

(iii) Liquidity Risk

Liquidity risk is the risk that the company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or other financial asset.

The company''s principal sources of liquidity are cash and cash equivalents, bank fixed deposits and the cash that is generated from operations.

The company manages liquidity risk by maintaining adequate reserves and by continuously monitoring forecast and actual cash flows. The company generates sufficient cash flows from current operations which together with the available cash and cash equivalents provide liquidity both in the short-term as well as in the long-term.

47. The following additional information (other than what is already disclosed elsewhere) is disclosed in terms of amendments dated March 24, 2021 in Schedule III to the Companies Act 2013 with effect from 1st day of April, 2021:

(a) There is no proceeding initiated or pending against the company during the year for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

(b) The Company has borrowings from banks on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with banks or financial institutions are generally in agreement with the books of accounts except some minor differences which are not material to report.

(c) The company is not declared willful defaulter by any bank or financial Institution or any other lenders.

(d) There is no scheme of arrangements has been approved during the year by the Competent Authority in terms of Sections 230 to 237 of the Companies Act, 2013.

(e) There is no transaction that has not been recorded in the books of accounts and surren

dered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

(f) The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017

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

(h) There are no creation or satisfaction of charges as at 31st March, 2023 pending with ROC beyond the statutory period.

(i) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).

(j) The Company has not received any fund from any party(Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

48. Previous year''s figures have been regrouped /reclassified wherever necessary to correspond

with the current year''s classification/disclosure.

---

Mar 31, 2023

N. Provisions and Contingent Liabilities:

Provisions are recognized when the company has a legal or constructive obligation as a result of a past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

Contingent Liabilities are disclosed when the company has a possible obligation or a present obligation and it is probable that a cash outflow will not be required to settle the obligation.

O. Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit / (loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

P. Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are measured at fair value except when amortised cost approach is used. Transaction costs that is directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

Financial assets

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.

Classification of financial assets

Debt instruments that meet the following conditions are subsequently measured at amortised cost (except for debt instruments that are designated as at fair value through profit or loss on initial recognition): the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Debt instruments that meet the following conditions are subsequently measured at fair value through other comprehensive income ("FVTOCI") (except for debt instruments that are designated as at fair value through profit or loss on initial recognition): the asset is held within a business model whose objective is achieved both by collecting contractual cash flows and selling financial assets; and the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Interest income is recognised in profit or loss for FVTOCI debt instruments. All other financial assets are subsequently measured at fair value.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition. Income is recognised on an effective interest basis for debt instruments other than those financial assets classified as at FVTPL. Interest income is recognised in profit or loss and is included in the "Other income" line item.

Impairment of financial assets

The Company applies the expected credit loss model for recognising impairment loss on financial assets measured at amortised cost, debt instruments at FVTOCI, trade receivables, other contractual rights to receive cash or other financial asset, and financial guarantees not designated as at FVTPL. Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights.

Derecognition of financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

Financial liabilities and equity instruments Classification as debt or equity

Debt and equity instruments issued by Company are classified as either financial liabilities or as'' equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

Financial liabilities

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortised cost at the end of subsequent accounting periods. The carrying amounts of financial liabilities that are subsequently measured at amortised cost are determined based on the effective interest method.

Interest expense that is not capitalised as part of costs of an asset is included in the ''Finance costs'' Line item. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability. All financial liabilities are subsequently measured at amortised cost using the effective interest method or at FVTPL.

Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or have expired.

a) Term loan amounting to ^ Nil Crores (P.Y.^2.07 Crores) is secured by EMT of 3MW Waste heat recover boiler based power plant and induction furnace built out of the term loan and collaterally secured against all fixed assets of the company and further secured by personal guarantee of two directors and Fixed Deposit Receipts of ^ 54 lacs.

b) Term loan amounting to ^ 3.52 Crores (P.Y.^ 5.54 Crores) is secured by EMT of 3MW AFBC based power plant and Steel Melting Shop built out of the term loan and collaterally secured against all fixed assets of the company and further secured by personal guarantee of two directors and Fixed Deposit Receipts of ^ 54 lacs.

c) Term loan amounting to ^ 6.61 Crores (P.Y.^ 8.13 Crores) is secured by EMT of Rolling Mill and Induction Furnace built out of the term loan and collaterally secured against all fixed assets of the company and further secured by personal guarantee of two directors and Fixed Deposit Receipts of ^ 54 lacs.

d) Working Capital Demand Loan amounting to ^ Nil (P.Y.^ 0.14 Crores) is secured by hypothecation stock & bookdents and EMT of all the fixed asstes of the company and and further secured by personal guarantee of two directors and Fixed Deposit Receipts of ^ 54 lacs.

e) Working Capital Term loan amounting to ^ 7.43 Crores (P.Y. ^ 10.06 Crores) is secured by hypothecation of stock & bookdebts and EMT of all the fixed asstes of the coompany and further secured by personal guarantee of two directors and Fixed Deposit Receipts of ^ 54 lacs.

f) Working Capital Term loan amounting to ^ 5.25 Crores (P.Y. ^ 5.25 Crores) is secured by hypothecation of stock & bookdebts and EMT of all the fixed asstes of the coompany and further secured by personal guarantee of two directors and Fixed Deposit Receipts of ^ 54 lacs.

g) Term loan amounting to ^ 4.97 Crores (P.Y. ^ NIL) is secured by EMT of all the fixed asstes created out of this facility and further secured by personal guarantee of two directors and Fixed Deposit Receipts of ^ 54 lacs.

h) Term loan amounting to ^ 0.98 Crores (P.Y. ^ NIL) (Sanctioned limit ^ 15.00 Crores) is secured by EMT of all the fixed asstes created out of this facility and further secured by personal guarantee of two directors and Fixed Deposit Receipts of ^ 54 lacs.

i) Vehicle loans from HDFC Bank is secured by hypothecation of the vehicle financed.

1. Key Managerial Personnel are under the employment of Company are entitled to post employment benefits and other long term employee benefits recognized as per Ind AS 19 -''Employee Benefits'' in the financial statements. As these employee benefits are lump sum amounts provided on the basis of actuarial valuation, the same is not included above. Further re-imbursement of expenses to KMP are not included above.

2. Director''s remuneration for the year 2022-2023 is as per limits prescribed under Section 197 read with Schedule V of the Companies Act, 2013.

3. All related party contracts / arrangements have been entered in ordinary course of business and are approved by the board of directors.

The code on social security, 2020 (''Code'') relating to employee benefits during employment and post-employment benefits received presidential assent in September 2020. The code has been published in the Gazette of India. However, the date on which the code will come into effect has not been notified and the final rules/ interpretations have not yet been issued. The company will assess the impact of the code when it comes into effect and will record any related impact in the period the code becomes effective

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximize the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.

42. The company has commissioned captive Power Plant (CPP) during the FY 2016-17. The said units is eligible to claim deduction under section 80IA of the Income tax act,1961 with respect to 100% of the profit & gains derived from this business for any Ten years in the subsequent fifteen years (referred to as Tax Holiday Period). The Company has started availing benefits under section 80IA of the Income Tax Act from the financial year 2021-22.

43. Financial Assets & Liabilities

a) Fair Market Value Disclosure: The management considers that the carrying amounts of financial assets and financial liabilities recognised in the financial statements approxi- mate their fair values.

b) Financial Risk Management Objectives:

The company''s management monitors and manages the financial risks relating to the operations of the company. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

(i) Market Risk

Market risk is the risk that the fair value or the future cash flows of a financial instrument will fluctuate because of changes in market prices. Such change in value of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes.

Foreign Currency Risk

The company has its operations based mainly within the country. So, the company does not have any significant foreign currency risks.

Interest Rate Risk

The company has investments mainly in fixed interest bearing investments. Hence the company is not significantly exposed to interest rate risks. The interest rate on borrow- ings ranged from 9.00% to 9.50% in the previous year & 7.50% to 8.00% in the current year.

(ii) Credit Risk

Credit Risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to credit risk is on account of trade receivables amounting to Rs. 12.03 crores as at 31st March, 2023 and Rs. 6.34 crores as at 31st March, 2022. Trade receivables are typically unsecured and derived from revenue earned from customers. Credit risk is managed by establishing credit limits and reviewing the credit approvals provided to various customers. The company has no expected credit loss as at 31st March, 2023.

(iii) Liquidity Risk

Liquidity risk is the risk that the company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or other financial asset.

The company''s principal sources of liquidity are cash and cash equivalents, bank fixed deposits and the cash that is generated from operations.

The company manages liquidity risk by maintaining adequate reserves and by continu- ously monitoring forecast and actual cash flows. The company generates sufficient cash flows from current operations which together with the available cash and cash equiva- lents provide liquidity both in the short-term as well as in the long-term.

44. Previous year''s figures have been regrouped /reclassified wherever necessary to correspond with the current year''s classification/disclosure.

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

FOR G A R V & Associates C. K Bhartia Y. K. Dalmia

Chartered Accountants Chairman Managing Director

Firm Registration No. 301094E DIN-00192694 DIN-00605908

(Ashish Rustagi)

Partner G. Goyal Neha Singhania S. Dalmia

Membership No. 062982 Executive Director Director Director

DIN-06678938 DIN-06879112 DIN-00605973

Place : Kolkata

Date : 29th day of May,2023 M. K. Hati A. N. Khatua

Chief Financial Officer Company Secretary

---

Mar 31, 2015

-Nature of Security and terms of repayment for Long term secured borrowings

Nature of Security Terms of Repayment

a) Term loan amounting to 36,51,936/- (P.Y. Rs, 1,44,51,936/-) is Repayable in 50 monthly installments secured by exclusive charge on the entire assets of Cold commencing from July, 2011, Last Briquette Plant, Pig iron Plant, Plant & machinery, pollution installment due in August,2015, Rate control equipment and improvements in sponge iron plant of interest 13.95 % p.a. as at year and further secured by personal guarantee of two directors end (P.Y. 13.95%)

and Fixed Deposit Receipts of Rs, 54 lacs.

b) Term loan amounting to Rs, 1,29,44,449 (P.Y. Rs, 1,96,11,113) RePavable in 20 quarterly instalment is secured by EMT of Land and Boundry wall built out of the commencing from beptember 2016, term loan and collaterally secured against all fixed assets of ,as Rs, »/Tpy the company and further secured by personal guarantee of ri Rs interest iz/kd /o u-.y. two directors and Fixed Deposit Receipts of Rs. 54 lacs.

c) Vehicle loans from HDFC is secured by hypothecation of Repayable in 35 monthly instalment respective vehicles financed commencing from the date of iBSMBuuvB sanction of respective loans

-Includes an amount of Rs, 59,04,795 (P.Y. Rs, 59,04,795) outstanding for a period exceeding six months from the date they are due for payment.

-Note:

a) In accordance with the provisions of Schedule II of the Act, incase of fixed assets which have completed their useful life as at 1st April 2014, residual value) amounting to Rs, 6,40,537/-(net of defferred tax of Rs, 3,07,634) as a transitional provision has been recognised in the Retained

b) Further, in case of assets acquired prior to 1 st april 2014, the carrying value of assets (net of residual value) is depreciated over the remaini effective 1st April, 2014

c) Depreciation and amortisation expenses for the year would have been lowered by Rs, 14,95,943/-, had the company continued with the previc of such assets.

1. Segment Reporting:

As per AS 17, the company operates predominantly only in one business segment, i.e..finished products from Iron Ore. There is no reportable geographical segment.

2. The Board of Directors has reviewed the realizable value of all current assets of the company and has confirmed that the value of such assets in ordinary course of business will not be less than the value at which these are recognized in the financial statements.

3. Previous year's figures have also been reclassified wherever necessary to confirm to current year's classification.-

---

Mar 31, 2014

1. Share Capital

The company has issued one class of equity shares having a par value of Rs. 10 per share. Each holder of Equity Share is entiled to one vote per share. The Company declares dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting.

During the year ended March, 2014 the company on preferential basis, issued and alloted 55,00,000 equity shares of Rs. 10 each at a price of Rs. 20/equity shares (Including premium of Rs. 10/equity shares) to promoter & Non promoter group companies.

2. Excise Duty

Excise Duty on sales for the year has been disclosed as reduction from the turnover. Excise Duty relating to the difference between the closing stock and opening stock has been included in Note 25 ''Others Expenses''.

3. Contingent liabilities and Commitments

No provision is made in respect of the As at As at following: - 31.03.2014 31.03.2013 (Rs.) (Rs.)

(i) Disputed Demand of Orissa Sales Tax 3,68,720 35,19,406

(ii) Disputed Demand of Central Sales Tax 53,93,343 53,93,343

(iii) Disputed Demand of Orissa Entry Tax 10,58,151 10,58,151

(iv) Disputed Demand of Central Excise 4,85,968 23,98,867 3. Segment Reporting:

As per AS 17, the company operates predominantly only in one business segment, i.e.finished products from Iron Ore. There is no reportable geographical segment. 31. The Board of Directors has reviewed the realizable value of all current assets of the company and has Confirmed that the value of such assets in ordinary course of business will not be less than the value at which these are recognized in the financial statements.

4. Previous year''s figures have also been reclassified wherever necessary to confirm to current year''s classification.

---

Mar 31, 2013

1. Excise Duty

Excise Duty on sales for the year has been disclosed as reduction from the turnover. Excise Duty relating to the difference between the closing stock and opening stock has been included in Note 25 ''Others Expenses".

2. Micro, Small and Medium Enterprises Development Act, 2006

In accordance with the Notification No. GSR 719 ( E ) dt 16.11.2007, issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro and Small Enterprises as defined under the Micro, Small and Medium Development Act 2006. The Company is in the process of compiling relevant information from its suppliers about their coverage under the said Act. Since the relevant information is still not available, no disclosures have been made in the accounts.

3. Contingent liabilities and Commitments

No provision is made in respect of the following: -

As at As at 31.03.2013 31.03.2012 (Rs.) (Rs.)

(i) Disputed Demand of Orissa Sales Tax 35,19,406 35,19,406

(ii) Disputed Demand of Central Sales Tax 53,93,343 53,93,343

(iii) Disputed Demand of Orissa Entry Tax 10,58,151 10,58,151

(iv) Disputed Demand of Central Excise 23,98,867 23,98,867

(v) Disputed Demand of Income Tax 2,59,460

(vi) Performance Guarantees 42,47,920 47,48,000

4. Segment Reporting:

As per AS 17, the company operates predominantly only in one business segment, i.e.finished products from Iron Ore. There is no reportable geographical segment.

5. Previous year figures have been regrouped or reclassified wherever necessary to confirm to current year classification.

6. The Board of Directors has reviewed the realizable value of all current assets of the Company and has confirmed that the value of such assets in ordinary course of business will not be less than the value at which there are recognized in the financial statements.

---

Mar 31, 2012

1. Excise Duty

Excise Duty on sales for the year has been disclosed as reduction from the turnover. Excise Duty relating to the difference between the closing stock and opening stock has been included in Note 24 " Others Expenses".

2. Micro. Small and Medium Enterprises Development Act. 2006

In accordance with the Notification No. GSR 719 ( E ) dt 16.11.2007, issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro and Small Enterprises as defined under the Micro, Small and Medium Development Act 2006. The Company is in the process of compiling relevant information from its suppliers about their coverage under the said Act. Since the relevant information is still not available, no disclosures have been made in the accounts.

3. Segment Reporting:

As per AS 17, the company operates predominantly only in one business segment, i.e.finished products from Iron Ore. There is no reportable geographical segment.

4. The Financial Statement for the year ended 31 st March 2011 had been prepared as per the then applicable, prerevised Schedule VI of the Companies Act, 1956. Consequent to the notification under the Companies Act, 1956, the Financial Statement for the year ended 31st March, 2012 are prepared under revised Schedule VI. Accordingly the previous year's figures have also been reclassified to conform to the year's classification.

---

Mar 31, 2010

1. Contingent Liabilities

No provision is made in respect of the following: -

As at 31.03.2010 As at 31.03.2009

(Rs. In Lacs) (Rs. In Lacs)

(i) Disputed Demand of Orissa Sales Tax 34.62 34.62

(ii). Disputed Demand of Orissa Entry Tax 9.70 9.70

(iii) Bank Guarantees 59.27 32.77

2. Estimated amount of contracts remaining to be executed for capital expenditure and not provided for Rs 33,67,500/-(Previous year Rs Nil)

3. (i) Term Loans from SIDBI and Term Loan and Working Capital Loan from Canara Bank are secured by first charge on all the fixed assets of the Companys Plant at Barapali, Ragangpur except as follows :

(a) SIDBI has exclusive first charge to the exclusion of Canara Bank on the Plant & Other Machinery, Pollution Control Equipments, etc. relating to sponge iron unit & Power Plant aggregating to Rs.987 lakhs.

(b) Canara Bank has exclusive first charge on fixed assets of the Pig Iron Unit aggregating to Rs. 1613 Lacs, Hypothecation of Raw Material, Semi-finished & Finished goods, Stock in trade, Consumable Stores & Spares, Packaging Material & Book Debts, and Security of fixed deposits with the bank aggregating to Rs 54 lacs.

(ii) The above loans are secured by personal Guarantee of two of the Directors.

4. To the best of Knowledge of the management, none of the units to whom the company owes is a SME & Micro Industrial Undertaking.

5. As per Accounting Standards -18 - Related Party Disclosures issued by the Institute of Chartered Accounts of India, the names of the related Party are given below.

Key Managerial Person Yogesh Kumar Dalmia, Chairman

Gagan Goyal, Executive Director.

Enterprises over which Key Management (1) Narbada Innovative Products (P) Ltd.

Personnel/ Relatives have substantial interest : (2) Balbhadra Infratech Private Ltd.

(3) Vasundhra Mettaliks Private Ltd.