1 Net Block of Plant and Equipments includes Rs. 4,07.72 lakhs (previous year Rs.4,08.22 lakhs) being contribution for laying the power line, the ownership of which does not vest with the Company.

2 Railway Siding represents the cost of construction of the assets for Company's use over the specified period as per the terms of the agreement.

3 Freehold land includes Rs.3,35.81 lakhs (previous year Rs.3,35.81 lakhs ) pertaining to the Parbatpur Coal Mine in respect of which the execution of conveyance deeds are pending execution (refer note no. 48). Freehold land also includes Rs. 2,75.27 lakhs (previous year Rs. 2,75.27 lakhs) towards contribution in relation of Joint Venture Company "North Dhadhu Mining Company Private Limited". (refer note no. 8.2)

4 Freehold land includes Rs. 18,89.04 lakhs (previous year Rs.18,89.04 lakhs), acquired on merger of erstwhile Mahadev Vyapaar Private Limited and Rs.3,51,50.37 lakhs (previous year Rs.3,51,50.37 lakhs) on merger of erstwhile Srikalahasthi Pipes Limited (SPL) where title deeds in favour of the company are in process of being registered.

5 Freehold land includes, land amounting to Rs.2,94,93.58 lakhs (previous year Rs.2,94,93.58 lakhs) situated at Elavur plant of the Company which are mortgaged in the favour of lender of ESL Steels Limited, an erstwhile associate of the Company. (Also refer note no. 9.1)

6 During the year 1942.56 sq. mtr. of land was acquired by Union of India under the provisions of National Highways Act, 1956 and a compensation amounting to Rs. 16.24 lakhs was determined and received by the company in the month of March 2023. The company being aggrieved of the compensation granted against the same has accepted the amount under protest and filed a petition on April 06, 2023 demanding higher compensation.

# Mahadev Vyapaar Private Limited and Srikalahasthi Pipes Limited were merged with the Company in earlier year. The transfer of the respective lands in the name of the Company is under process.

7 The Company doesn't hold any Benami Property and there is no proceedings initiated or pending against the Company for holding any Benami Property under the Benami Transaction (Prohibition) Act, 1988 and rules made there under

8 Refer note no. 23 to financial statements in respect of charge created against borrowings.

5.10 The above includes assets pertaining to Parbatpur Coal Block, consequential adjustment whereof will be given effect to as dealt with in note no. 48 of the financial statement . Also refer note no. 49 in respect of Iron-ore and manganese ore mine.

6.1.1 Right to use Wagon represents cost incurred in connection with wagon procured under "Wagon investment Scheme" and handed over to railway authorities for their normal operations and ensuring the availability of the wagons to the company on priority for transportation by them as and when required.

6.1.2 The company being deprived of the availability of the wagons as per the "Wagon Investment Scheme” (WIS) had terminated the agreement with South Eastern Railway (SER). Arbitration award pursuant to the claim for compensation for losses/damages has been allowed in favour of the Company. SER objected to the said award and the matter is currently pending before the Hon'ble Calcutta High Court. Pending decision of the Hon'ble Court, Rs. 2,52,85.27 lakhs deposited by SER in respect of the said award has been allowed to be withdrawn by the Company on submission of the Bank Guarantee. Subsequent to the Balance Sheet date, the said amount has been withdrawn and kept in fixed deposit. Pending final decision, no adjustment with respect to ROU Assets as above or claim amount has been given effect to in the financial statement.

6.2 Refer note no 23 to financial statements in respect of charge created against borrowings.

6.3 Refer note no. 48 dealing with coal mine assets.

8.1 The Company has investment of Rs. 30.00 lakhs (previous year Rs. 30.00 lakhs) in equity shares and given advance of Rs. 7,00.00 lakhs (previous year Rs. 7,00.00 lakhs) against equity to Domco Private Limited (DPL), a Company incorporated in India, and has joint control (proportion of ownership interest of the Company being 50%) over DPL along with other venturers (the Venturers) in terms of the Shareholder's Agreement dated March 27, 2004. The Venturers had filed a petition before the Company Law Board, Principal Bench, New Delhi (CLB) against the Company against operation and mismanagement of the company inter alia on various matters including for forfeiture of the Company's investment in equity shares of the DPL. The matter was later transferred to the Company Law Board, Kolkata Bench and is now being taken up by the National Company Law Tribunal, Kolkata Bench (NCLT). The Company had also inter alia filed an arbitration proceeding under Arbitration & Conciliation Act, 1996 against recovery of the said amount against which the ventures also filed their counter claims on the company. The matter is sub judice before the NCLT.

Pending final outcome of the above matter, the amounts in equity shares and advance have been fully provided for in the financial statements in earlier year. The other venturers are not providing the financial statements of DPL, and thereby necessary disclosures etc. could not be provided in these financial statements.

8.2 (a) The North Dhadhu Coal Block located in the state of Jharkhand was allocated to the Company, Amalgam Steel & Power Limited (ASPL)

(formerly known as Adhunik Alloys & Power Limited), Jharkhand Ispat Private Limited (JPL) and Pawanjay Steel & Power Limited (PSPL)

(collectively referred to as venturers) for working through North Dhadhu Mining Company Private Limited (NDMCPL), a joint venture company. The Company has joint control (proportion of ownership interest of the Company being 48.98 %) along with other venturers represented by investment of Rs. 8,22.81 lakhs in equity shares of NDMCPL.

(b) In pursuance of the Order dated September 24, 2014 issued by the Hon'ble Supreme Court of India (the Order) followed by the Ordinance promulgated by the Government of India, Ministry of Law & Justice (legislative department) dated October 21, 2014 (Ordinance) for implementing the Order, The Ministry of Coal, Government of India had issued an order for de-allocation of North Dhadhu Coal Block. The Company has submitted its claim for compensation which is awaiting acceptance. In the view of the management the compensation to be received in terms of ordinance is expected to cover the cost incurred by the Joint venture company. However as an abundant precaution, impairment in the value of the investment amounting to Rs. 8,22.81 lakhs in Joint venture has been provided in earlier year.

8.3 Particulars of investments as required in terms of section 186(4) of the Companies Act,2013 have been disclosed under note 8, 9 & 14.

9.1 The Company holds 19796000 equity shares (previous year 19796000 equity shares) of Rs. 10/- each in ESL Steel Limited (ESL) out of which 17334999 equity shares (previous year 17334999 equity share) of Rs. 10/- each amounting to Rs. 57,44.81 lakhs have been pledged with the consortium of lenders of ESL (lenders). The notices issued by the lenders for invocation of pledge of company's investment was set aside by the Hon'ble High Court at Calcutta in the earlier year and the company's plea for release of such pledge is pending before the Hon'ble Court. Further in the earlier years, certain land amounting to Rs. 2,94,93.58 lakhs (previous year Rs. 2,94,93.58 lakhs) of the company, situated at Elavur, Tamil Naidu, were mortgaged to another lender SREI Infrastructure Finance Limited (SREI) of ESL and SREI had subsequently assigned the right of the said property to an Asset Reconstruction Company (ARC) although the claims of the said lender were fully discharged by the ESL as per the Resolution Plan approved by NCLT, Kolkata. Subsequently the ARC had issued SARAFESI Notice and taken the symbolic possession of the said land against alleged claim in SARAFESI Notice in an earlier year. The Company had disputed the alleged assignment of the loan by the lender at Hon'ble Madras High Court. Subsequently, as per direction of the Hon'ble Supreme Court, the Company had filed an application before the Debt Recovery Tribunal (DRT), Chennai for setting aside the SARAFESI actions and release of the title deeds of such land. The DRT vide its order dated April 08, 2022 uploaded on April 27, 2022 had dismissed the application of the Company. On filing the appeal before the Debt Recovery Appellate Tribunal (DRAT) against the order of DRT, DRAT has directed the Company to deposit 50% of the SARAFESI demand i.e. Rs. 2,93,55.04 lakhs (previous year Rs. 2,93,55.04 lakhs) and was of the view that at admission stage it cannot go in to the merits of the case hence, cannot give any relief on the pre-deposit. The Company then has filed revision application at Hon'ble Madras High Court under Article 227 of the Indian Constitution and a Writ Application under Article 226 of Indian Constitution challenging provisions of pre-deposit under SARAFESI Act. The matter is now pending before Hon'ble Madras High Court.

Earlier, the ARC had also filed an application before the National Company Law Tribunal, Cuttack for initiation of Corporate Insolvency and Resolution Process (CIRP) process against the Company which has been decided in the favour of the Company vide NCLT order dated June 24, 2022 by dismissing the application of ARC. The ARC has challenged the order of NCLT, Cuttack and the matter is pending before National Company Law Appellate Tribunal (NCLAT), New Delhi.

Pending finalization of the matter, investments and land as dealt herein above, have been carried forward at their book value.

9.2 The Company has made an irrevocable decision to consider investment in equity instruments, other than in Subsidiaries and Joint ventures not held for trading (non current investments) to be recognized at FVTOCI.

19.4 (a) Includes Rs. 46,80.58 lakhs (previous year Rs. 46,80.58 lakhs) related to claim under West Bengal Incentive Scheme (WBIS) 2000. In absence

of any clarification from the Government of West Bengal regarding disbursal of incentive post implementation of GST, the West Bengal Industrial Development Corporation (WBIDC) the implementing agency is not releasing the fund in this respect. The company has filed a writ petition in Hon'ble High Court of Calcutta against the same and the matter is pending for final decision. The above claim being made in terms of incentive scheme, the amount thereof in view of the management are recoverable.

(b) Includes Rs. 12,02.49 lakhs (previous year Rs. 12,02.49 lakhs) in respect of sales tax subsidy receivable under Andhra Pradesh Industrial Investment Promotion Policy.

19.5 Refer note no.29.1 to Financial Statements in respect of charge created against borrowings.

21.1 The Company has only one class of shares referred to as equity shares having a par value of Re. 1/-. Each holder of equity shares is entitled to one vote per share. 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 of their shareholding.

21.2 During the previous year, 161650538 equity shares of Re.1 each has been issued to shareholders of erstwhile Srikalahasthi Pipes Limited pursuant to the scheme of amalgamation approved by Hon'ble National Company Law Tribunal, Cuttack Brach vide its order dated December 09, 2021.

22.1 Capital Reserve

The reserve was created on account of forfeiture of warrants convertible into equity shares.

22.2 Capital Reserve on Amalgamation

Capital Reserve on Amalgamation represent the excess of consideration paid i.e. equity shares issued with respect to net assets and reserves acquired consequent to amalgamation of erstwhile Mahadev Vyapaar Private Limited and Srikalahasthi Pipes Limited amounting to (Rs. 14,86.46 lakhs) and (Rs. 4,25,39.34 lakhs) respectively.

22.3 Securities Premium Reserve

Securities Premium Reserve represents the amount received in excess of par value of securities and is available for utilisation as specified under Section 52 of Companies Act, 2013.

22.4 General Reserve

General Reserve is a free reserve which is created by transfer of profit from retained earnings. As the Reserve is created by a transfer from one component to another and is not an item of OCI, item included in General Reserve is not reclassified subsequently to Statement of Profit and Loss.

22.5 Retained Earnings

Retained earnings generally represents the accumulated undistributed surplus earnings of the company. This includes Rs. 11,82,84.60 lakhs (previous year Rs. 11,80,62.49 lakhs) represented by changes in carrying amount of Property, Plant and Equipments being measured at fair value as on the date of transition as deemed cost. Further unrealised loss of Rs. 9,84,10.67 lakhs (previous year Rs. 9,84,10.67 lakhs) due to changes in carrying amount of investment has also been adjusted to the retained earning. Thereby Rs. 1,98,73.93 lakhs (previous year Rs. 1,96,51.82 lakhs) being represented by changes in carrying value of assets in terms of provisions of Companies Act 2013 is not available for distribution. This includes other comprehensive income of (Rs. 2,29.43 lakhs) relating to remeasurement of defined benefit plans (net of tax) which cannot be reclassified to statement of profit and loss.

22.6 Other Comprehensive Income

Other Comprehensive Income (OCI) represent the balance in equity for items to be accounted under OCI and comprises of the following:

i) Items that will not be reclassified to Profit and Loss

a. The company has elected to recognise changes in the fair value of non-current investments (other than in subsidiaries, associates and joint ventures) in OCI. This reserve represents the cumulative gains and losses arising on equity instruments being measured at fair value. The company transfers amounts from this reserve to retained earnings when the relevant equity securities are disposed.

b. This also includes actuarial gains and losses arising on defined benefit obligations recognised in OCI which is transferred to retained earning as stated in note no. 22.5.

ii) Items that will be reclassified to profit and loss.

a. This reserve represents the cumulative effective portion of changes in fair value of currency swap that are designated as cash flow hedge are recognised in OCI. This is reclassified to statement of Profit and Loss.

22.7 The company has allotted 23579344 warrants convertible into or exchangeable for 1 (one) fully paid-up equity shares of the company having face value of Re. 1 each at the issue price of Rs. 42.41 each payable in cash ('warrant issue price') on preferential basis to Promoter/ Promoter group on December 27, 2022 as approved by the Shareholders vide their postal ballot resolution dated December 23, 2022. The said allotment has been done upon receipt of Rs. 10.60 for each warrants aggregating to Rs. 24,99.41 lakhs included under other equity being the amount equivalent to 25% of the warrant issue price as upfront contribution received by the company in this respect entitling the warrant holders to apply for and get allotted one equity shares of the company against each warrant held in one or more tranche within a maximum period of eighteen months from the date of allotment on payment of balance amount of Rs. 31.81 each which is equivalent to 75% of the warrant issue price.

22.8 The Board of Directors at its meeting held on May 17, 2023 recommended a final dividend of Re. 0.90 per equity share to be paid on fully paid up equity shares amounting to Rs. 53,51.45 lakhs for the financial year ended March 31,2023. The above is subject to approval of the shareholders at the ensuing Annual General Meeting and has not been included as a liability in these financial statement.

23.1.2 Rupee Term Loan of Rs. 50,00.00 lakhs from a bank was secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi Unit and Freehold Land at Haldia. The said loan has been fully repaid during the year.

23.1.3 Rupee Term Loan of Rs. 1,50,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi Unit and Freehold Land at Haldia . The outstanding as on March 31,2023 is Rs. 50,47.93 lakhs (previous year Rs. 1,02,34.39 lakhs). The balance loan is repayable in 7 equal quarterly installments starting from June 2024.

23.1.4 Rupee Term Loan of Rs. 50,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The outstanding as on March 31, 2023 is Rs. 33,12.65 lakhs (previous year Rs. 40,30.87 lakhs). The balance loan is repayable in 14 structured quarterly installments starting from April 2023 .

23.1.5 Rupee Term Loan of Rs. 4,00,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The outstanding as on March 31,2023 is Rs. 60,03.54 lakhs (previous year Rs. 64,39.18 lakhs). The balance loan is repayable in 26 structured quarterly installments starting from June 2023.

23.1.6 Rupee Term Loan of Rs. 60,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The outstanding as on March 31, 2023 is Rs. 51,00.92 lakhs (previous year Rs. 53,05.32 lakhs). The balance loan is repayable in 43 structured monthly installments starting from April 2023.

23.1.7 Rupee Term Loan of Rs. 75,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia . The outstanding as on March 31,2023 is Rs. 64,15.87 lakhs (previous year Rs. 70,10.16 lakhs). The balance loan is repayable in 15 structured quarterly installments starting from June 2023.

23.1.8 Rupee Term Loan of Rs. 50,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The outstanding as on March 31, 2023 is Rs. 36,43.80 lakhs (previous year Rs. 48,19.22 lakhs). The balance loan is repayable in 12 equal quarterly installments starting from May 2023.

23.1.9 Rupee Term Loan of Rs. 11,00.00 lakhs from a bank was secured by way of first pari passu charge over Current Assets of the company. This said loan has been fully repaid during the year.

23.1.10 Rupee Term Loan of Rs.75,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The outstanding as on March 31, 2023 is Rs. 33,60.83 lakhs (previous year Rs.55,68.10 lakhs). The balance loan is repayable in 9 equal quarterly installments starting from June 2024.

23.1.11 Rupee Term Loan of Rs.60,00.00 lakhs from a Bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The outstanding as on March 31, 2023 is Rs. 53,96.38 lakhs (previous year Rs. 59,94.85 lakhs). The balance loan is repayable in 18 equal quarterly installments starting from June 2023.

23.1.12 Rupee Term Loan of Rs.75,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The outstanding as on March 31, 2023 is Rs. 52,12.28 lakhs (previous year Rs.72,19.89 lakhs). The balance loan is repayable in 11 structured quarterly installments starting from May 2024.

23.1.13 Rupee Term Loan of Rs. 75,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment, both present and future, of the Company located at Srikalahasthi unit. The outstanding as on March 31, 2023 is Rs. 22,47.00 lakhs (previous year Rs. 29,92.00 lakhs). The balance loan is repayable in 6 equal quarterly installments starting from June 2023.

23.1.14 Rupee Term Loan of Rs. 1,00,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment, both present and future, of the Company located at Srikalahasthi unit. The outstanding as on March 31, 2023 is Rs.29,89.00 lakhs (previous year Rs. 49,71.00 lakhs). The balance loan is repayable in 6 equal quarterly installments starting from June 2023.

23.1.15 Rupee Term Loan of Rs. 1,45,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment, both present and future, of the Company located at Srikalahasthi unit. The outstanding as on March 31, 2023 is Rs. 18,61.68 lakhs (previous year Rs. 24,82.02 lakhs). The balance loan is repayable in 12 structured quarterly installments starting from May 2023.

23.1.16 Rupee Term Loan of Rs. 2,00,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company located at Srikalahasthi unit. The outstanding as on March 31,2023 is Rs.1,77,08.25 lakhs (previous year Rs. 1,93,98.91 lakhs). The balance loan is repayable in 20 structured quarterly installments starting from April 2023.

23.1.17 Rupee Term Loan of Rs. 15,00.00 lakhs from a bank was secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment, both present and future, of the Company located at Srikalahasthi unit. The said loan has been fully repaid during the year.

23.1.18 Rupee Term Loan of Rs. 120,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment, both present and future, of the Company located at Srikalahasthi unit. The outstanding as on March 31, 2023 is Rs. 20,70.81 lakhs (previous year nil). The balance loan is repayable in 20 equal quarterly installments starting from June 2024.

23.2.1 Rupee Term Loan of Rs.50,00.00 lakhs from a financial institution is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia . The outstanding as on March 31,2023 is Rs.49,79.98 lakhs (previous year nil). The balance loan is repayable in 12 equal quarterly instalments starting from September 2024.

23.2.2 Rupee Term Loan of Rs.1,00,00.00 lakhs from a financial institution is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The outstanding as on March 31,2023 is Rs. 56,37.19 lakhs (previous year Rs. 87,50.02 lakhs). The balance loan is repayable in 13 equal quarterly instalments starting from June 2024.

23.2.3 Rupee Term Loan of Rs. 25,00.00 lakhs from a financial institution was secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The said loan has been fully repaid during the year.

23.2.4 Rupee Term Loan of Rs. 60,00.00 lakhs from a financial institution is secured by way of first pari-passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit and Freehold Land at Haldia. The outstanding as on March 31,2023 is Rs.56,84.00 lakhs (previous year nil). The balance loan is repayable in 18 equal quarterly instalments starting from May 2023.

23.3 The interest rate for the above loans ranges from 5.75% to 10.30%. p.a.

23.4 The outstanding balances disclosed in note 23.1 to 23.2 are based on the amortised cost in accordance with Ind AS 109 "Financial Instruments".

23.5 There are no registration/satisfaction of charges pending with Registrar of Companies beyond the statutory period as on the Balance Sheet date.

25.1 Provision for Mines closure and restoration charges had been made in terms of statutory obligations specified for the purpose and Rs. 3,67.58 lakhs (value as on March 31, 2023 Rs. 8,62.57 lakhs) deposited in the Escrow account in terms of the stipulation made by Ministry of Coal, for Mines closure Plan. In view of cancellation of allotment of coal mines no further provision and accrual of income on fixed deposit lying in Escrow account has been considered necessary. (Refer note no. 17 and 48).

b) Fair Valuation Techniques

The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

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

1. The fair value of cash and cash equivalents, current trade receivables and payables, current loans, current financial liabilities and assets and borrowings approximate their carrying amount largely due to the short-term nature of these instruments. The management considers that the carrying amounts of financial assets and financial liabilities recognised at nominal cost/amortised cost in the financial statements approximate their fair values. In respect of non current trade receivables and loans, fair value is determined by using discount rates that reflect the present borrowing rate of the company.

2. A substantial portion of the company's long-term debt has been contracted at floating rates of interest, which are reset at short intervals. Fair value of variable interest rate borrowings approximates their carrying value subject to adjustments made for transaction cost. In respect of fixed interest rate borrowings, fair value is determined by using discount rates that reflects the present prevailing rates for similar borrowing in the market.

3. Investments (other than Investments in Joint Venture and Subsidiaries) traded in active market are determined by reference to the quotes from the Stock exchanges as at the reporting date. Investment in liquid and short term mutual fund, which are classified as Fair value through Profit and Loss are measured using quoted market prices at the reporting date and in case of debentures, bonds and government securities, the net present value at current yield to maturity have been considered. Unquoted investments in shares have been valued based on the historical net asset value as per the latest audited financial statements.

4. The fair value of derivative financial instruments is determined based on observable market inputs including currency spot and forward rates, yield curves, currency volatility etc. The said valuation has been carried out by the counter party with whom the contract has been entered with and management has evaluated the credit and non-performance risks associated with the counterparties and believes them to be insignificant and not requiring any credit adjustments.

2. During the year ended March 31,2023 and March 31,2022, there were no transfers between Level 1, Level 2 and Level 3.

3. The Inputs used in fair valuation measurement are as follows:

i) Fair valuation of Financial assets and liabilities not within the operating cycle of the company is amortised based on the borrowing rate of the company.

ii) Derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are directly or indirectly observable in the marketplace. The inputs used for forward contracts are Forward foreign currency exchange rates and Interest rates to discount future cash flow.

iii) Unquoted investments in equity shares have been valued based on the amount available to shareholder's as per the latest audited financial statements wherever available. Further, external observable inputs or assumptions have been used in such valuation of equity shares in other cases.

(d) Derivatives financial assets and liabilities:

The Company follows established risk management policies, including the use of derivatives to hedge its exposure to foreign currency fluctuations on foreign currency assets / liabilities. The counter party in these derivative instruments is a bank and the Company considers the risks of non-performance by the counterparty as non-material.

In the normal course of business, the Company transfers its bill receivables to banks. Under the terms of the agreements, the Company surrenders control over the financial assets and the transfer is with recourse. Under arrangement with recourse, the company is obligated to repurchase the uncollected financial assets, subject to limits specified in the agreement with banks. Accordingly, in such cases the amount transferred are recorded as borrowings in the statement of financial position and cash flows from financing activities. As at March 31, 2023 and March 31, 2022 the maximum amount of recourse obligation in respect of financial assets are Rs 3,79,16.20 lakhs and Rs. 1,44,65.14 lakhs respectively.

The Company's activities are exposed to variety of financial risks. The key financial risks includes market risk, credit risk and liquidity risk. The Company's focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The Board of Directors reviews and approves policies for managing these risks. The risks are governed by appropriate policies and procedures and accordingly financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives.

1. Market Risk

Market risk is the risk or uncertainty arising from possible market fluctuations resulting in variation in the fair value of future cash flows of a financial instrument. The major components of Market risks are currency risk, interest rate risk, commodity price risk and other price risk. Financial instruments affected by market risk includes trade receivables, borrowings, investments in fixed deposit/ Mutual Funds/ Bonds and trade and other payables.

i) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company's foreign currency denominated borrowings, trade receivables and trade or other payables.

In order to mitigate forex losses, the Company has adopted a comprehensive risk management review system wherein it actively hedges its foreign exchange exposures within defined parameters through use of hedging instruments such as forward contracts, options and swaps. The Company periodically reviews its risk management initiatives and also takes experts advice on regular basis on hedging strategy.

A 5% strengthening of INR would have an equal and opposite effect on the Company's financial statements. ii) Interest rate risk

The company's exposure in market risk relating to change in interest rate primarily arises from floating rate borrowing with banks and financial institutions. Considering the same, the carrying amount of said borrowing was considered to be at fair value. Borrowings at fixed interest rate exposes the company to the fair value interest rate risk. The company maintains a portfolio mix of fixed and floating rate borrowings. As at March 31,2023, approximately 64.42% (Previous Year 61.47%) of the company's borrowings become fixed rate interest borrowing.

Further there are deposits with banks which are for short term period are exposed to interest rate risk, falling due for renewal. These deposits are however generally for trade purposes as such do not cause material implication.

iii) Commodity Risk

The company's revenue is exposed to the market risk of price fluctuation related to sale of products which is generally determined by market forces. These prices may be influenced by factors such as supply and demand, production costs (including cost of raw material inputs) and global and regional economic conditions and growth. Adverse changes in any of these factors may reduce revenue for the company. The company is subject to fluctuation in prices of iron ore, coking coal, ferro alloys, zinc and other raw material inputs.

The company aims to sell the products at prevailing market prices. Similarly the company procures key raw material based on prevailing market rates. However, contracts with the customers are generally with a delivery period of 90-180 days, results in the mismatch of cost and sales realisation.

iv) Other price risk

The Company's equity exposure in Subsidiaries and Joint Ventures are carried at cost or deemed cost and these are subject to impairment testing as per the policy followed in this respect. The company's current investments are fair valued through profit and loss and non current investment at fair value through OCI. The company invest in mutual fund schemes of leading fund houses. Such investments are susceptible to market price risk that arise mainly from changes in interest rate which may impact return and value of such investments. However, given the relatively short tenure of underlying portfolio of mutual fund schemes in which the company has invested, such price risk is not significant.

2. 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). The management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Major water infrastructure projects are Government funded or foreign aided and the risk involved in payment default is minimum with respect to these customers. Besides, export receivables are primarily from subsidiaries and sales made by them is covered under Credit Insurance. The Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends and ageing of accounts receivable. Individual risk limits are set accordingly. Further the company obtains necessary security including letter of credits and/or bank guarantee to mitigate its credit risk.

The carrying amount of respective financial assets recognised in the financial statements, (net of impairment losses) represents the Company's maximum exposure to credit risk. The concentration of credit risk is limited due to the customer base being large and unrelated. Of the trade receivables balance at the end of the year (other than subsidiaries), there are no single customer accounted for more than 10% of the accounts receivable and 10% of revenue as at March 31,2023 and March 31,2022. The company takes collateral or other credit enhancements to secure its credit risk.

The Company extends credit to customers as per the internal credit policy. Any deviation are approved by appropriate authorities, after due consideration of the customers credentials and financial capacity, trade practices and prevailing business and economic conditions. The Company's historical experience of collecting receivables and the level of default indicate that credit risk is low and generally uniform across markets; consequently, trade receivables are considered to be a single class of financial assets. All overdue customer balances are evaluated taking into account the age of the dues, specific credit circumstances, the track record of the customers etc. The company computes credit loss allowance based on a matrix based historically observed default rates over the expected life of trade receivables and is adjusted for forward-looking estimates.

Financial assets that are neither past due nor impaired

Cash and cash equivalents, investment and deposits with banks are neither past due nor impaired. Cash and cash equivalents with banks are held with reputed and credit worthy banking institutions.

Financial assets that are past due but not impaired

Trade receivables amounts that are past due at the end of the reporting period, no credit losses there against are expected to arise. The company also takes advance, letter of credit and bank guarantee from its customers, which mitigates the credit risk to that extent.

3. Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company's objective is to maintain optimum level of liquidity to meet it's cash and collateral requirements at all times. The company relies on borrowings and internal accruals to meet its long term and short term fund requirement. The current committed line of credit are sufficient to meet its short to medium term fund requirement.

i) Liquidity and interest risk tables

The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows as at balance sheet date:

The company has current financial assets which will be realised in ordinary course of business. The Company ensures that it has sufficient cash on demand to meet expected operational expenses. The company relies on mix of borrowings and operating cash flows to meet its need for funds and ensures that it does not breach any financial covenants stipulated by the lender.

Capital Management

The primary objective of the Company's capital management is to ensure that it maintains a healthy capital ratio in order to support its business and maximise shareholder value. The Company's objective when managing capital is to safeguard their ability to continue as a going concern so that they can continue to provide returns for shareholders and benefits for other stake holders. The Company is focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required without where the risk profile of the Company.

b) Post Employment Defined Benefit Plans

Post Employment Defined Benefit Plans are managed by Life Insurance Corporation of India and ICICI Prudential Life Insurance Company Limited is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. Details of such funds are as follows:

Gratuity (Funded)

The company's gratuity scheme, a defined plan is as per the Payment of Gratuity Act 1972, covers the eligible employees and is administered through gratuity fund trust. Such gratuity fund, whose investments are managed by Life Insurance Corporation of India and ICICI Prudential Life Insurance Company Limited an insurer makes payment to vested employees or their nominee upon retirement, death, incapacitation or cessation of employment of an amount based on the respective employee's salary and tenure of employment. Vesting occurs on completion of five year of service. The amount of gratuity payable is the last drawn basic salary per month computed proportionately for 15 days of salary multiplied for the number of year service.

Risk analysis

Through its defined benefit plans, the Company is exposed to a number of risks in the defined benefit plans. Most significant risks pertaining to defined benefit plans and, management's estimation of the impact of these risks are as follows:

Investment risk

The Gratuity plan is funded with Life Insurance Corporation of India and ICICI Prudential Life Insurance Company Limited and the company does not have any liberty to manage the fund provided to them. The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to Government of India bonds. If the return on plan asset is below this rate, it will create a plan deficit.

Interest risk

A decrease in the interest rate on plan assets will increase the plan liability.

Longevity risk / Life expectancy

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and at the end of the employment. An increase in the life expectancy of the plan participants will increase the plan liability Salary growth risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increase in the salary of the plan participants will increase the plan liability.

48(a). In pursuance of the Order dated September 24, 2014 issued by the Hon'ble Supreme Court of India (the Order) followed by the Ordinance promulgated by the Government of India, Ministry of Law & Justice (legislative department) dated October 21,2014 (Ordinance) for implementing the Order, allotment of Parbatpur coal block (coal block/mines) to the Company which was under advanced stage of implementation, had been cancelled w.e.f. April 01,2015. In terms of the Ordinance, the Company was allowed to continue the operations in the said block till March 31, 2015. Accordingly, the said block had been handed over to Bharat Coking Coal Limited (BCCL) as per the direction from Coal India Limited (CIL) with effect from April 01,2015 and the same was thereafter allotted to Steel Authority of India Limited (SAIL) and pending final determination, compensation of Rs. 83,12.14 lakhs was received. The company also came to understand that SAIL subsequently handed over back the said coal block to the custody of BCCL.

Following a petition filed by the Company, the Hon'ble High Court at Delhi had pronounced its judgement on March 09, 2017. Accordingly and based on the said judgement, the Company has claimed Rs.15,49,44.48 lakhs towards compensation against the said coal block and acceptance of the same is awaited. Aggrieved due to delay in acceptance of claim, on a petition filed by the Company, the Hon'ble High Court had directed the Nominated Authority appointed under Ministry of Coal to determine the amount of compensation to be paid to the company. Earlier the Nominated Authority had upheld its decision of compensation already paid which was set aside by the Hon'ble High Court with a direction to the Nominated Authority to reconsider the said decision. The Nominated authority further passed an order dated November 11,2019 awarding an additional compensation of Rs. 1,80.00 lakhs and with a further direction to re-determine the value of certain assets by the appropriate authority. Subsequently, a newly appointed Nominated Authority (New Nominated Authority) had appointed a valuer to determine the value of those specified assets as per the direction of Nominated Authority dated November 11,2019. The company came to understand that valuation report recommending a valuation of total direct/hard cost for specified assets has been submitted to the New Nominated Authority and the same is under consideration and a final compensation is yet to be decided. The company had also earlier approached the New Nominated Authority/ Ministry of Coal (Ministry) to similarly reconsider the compensation determined by the previous Nominated Authority, for land and some other major assets. Pending such decision, in the meantime, the Ministry vide notification dated November 03, 2022 had included the said Parbatpur Coal Block in the "16th Tranche of Auction Under Coal Mines (Special Provisions) Act, 2015” and JSW Steel Limited (JSW) has emerged as successful bidder in the said auction. Accordingly, the claim for compensation in this respect therefore is to be determined on receipt of order for vesting of the said mine to JSW. The company's management however, is pursuing to revise and determine the amount of entire compensation for coal block in terms of the aforesaid judgement passed by the Hon'ble High Court of Delhi.

(i) Rs.12,88,84.11 lakhs incurred pertaining to the coal block till March 31, 2015 after setting off income, stocks etc. there against as per the accounting policy then followed by the Company has been continued to be shown as freehold land, capital work in progress, other fixed assets and other respective heads of account.

(ii) Interest and other finance cost for the year ended March 31, 2016 against the fund borrowed and other expenses directly attributable in this respect amounting to Rs. 95,14.74 lakhs has been considered as other recoverable under current assets; and

(iii) Compensation of Rs. 83,12.34 lakhs so far received and net realisations/claims against sale of assets, advances, input credits etc. amounting to Rs. 20,90.04 lakhs have been adjusted. Bank guarantee amounting to Rs. 9,20.00 lakhs (previous year Rs. 9,20.00 lakhs) has been given against the compensation received.

Necessary disclosures in terms of Indian Accounting Standard and adjustments arising with respect to above will be given effect to on final acceptance/settlement of the claim.

48(c). Due to reasons stated in note no. 48 (a) and pending determination of the amount of the claim, balances under various heads which otherwise would have been measured and disclosed as per the requirements of various Indian Accounting Standard ' have been included under various heads as disclosed under note no. 48 (b) considering the circumstances and objective of the financial statements.

49. Due to delay in grant of forest, environment and other clearances from various authorities and execution of mining lease of an area of 192.50 ha. by the State Government of Jharkhand for iron and manganese ores at Dirsumburu in Kodilabad Reserve Forest, Saranda of West Singhbhum, Jharkhand, the validity period of letter of intent granted in this respect got expired on January 11,2017. Pending decision of Hon'ble High Court at Jharkhand on the matter pursuant to the writ petition filed before the said court, the company without prejudice to the decision to pursue the said petition has decided during the year, as a matter of abundant caution to charge off the amounts so paid pertaining to the said mine and carried forward under Capital work in progress and advances and thereby, Rs. 27,56.99 lakhs has been disclosed as sundry balances/advances/ cwip written off under other expenses for the year ended March 31,2023.

(c) Projects overdue and expected completion date:

(i) As stated in note no. 48, the allotment of Parbatpur coal mine which were under advanced stage of implementation was cancelled vide order dated September 24, 2014. Thereby, as dealt with in note no. 48, the project could not be further progressed and completed. Pending determination of the amount of claim, the balances as were appearing prior to the cancellation, i.e. capital work in progress and other balances pertaining to said coal mine have not been adjusted and carried forward in the financial statement.

D. Terms and conditions of transactions with related parties

a. The transactions with related parties have been entered at an amount which are not materially different from those on normal commercial terms. For the year ended March 31, 2023, the company has not recorded impairment of receivable relating to amount owned by the parties. The measurement is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

b. The amounts outstanding are unsecured and will be settled in cash and cash equivalent. No guarantees have been given or received.

c. The remuneration of directors is determined by the Nominations & Remuneration Committee having regard to the performance of individuals and market trends.

57. Additional Information pursuant to amendments made in Schedule III to the extent applicable to the company (Other than those that have been disclosed under the respective Notes to the financial statements:

(A) Utilisation of borrowed funds and share premium

(i) The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

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

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

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

(B) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(C) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(D) Compliance with number of layers of companies

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

59. The company has opted for continuing accounting policy in respect of exchange difference arising on reporting of long term foreign currency monetary items in accordance with Ind AS 101 "First time adoption of Indian Accounting Standards". The unamortised balance in the carrying amount of Property, Plant and Equipments / capital work in progress is Rs 2,80,06.55 lakhs (previous year Rs 2,83,40.19 lakhs).

60. These financial statements have been approved by the Board of Directors of the Company on May 17, 2023 for issue to the shareholders for the adoption.

61. The previous year figures have been regrouped/reclassified wherever necessary to correspond with current year's classification/disclosure.