Details of Claims against the Company not acknowledged as debt (of 1(i)(a) above)VAT/CST/ENTRY TAX & OTHER TAXES

There are demand notices totaling to Gross Demand of ' 8494.74 lakh (Previous Year ' 6641.03 lakh) from various State Revenue Authorities regarding VAT/CST/Entry Tax/Other Taxes against which the company has deposited under protest ' 433.50 lakh (Previous Year ' 433.50 lakh) shown under Note No. 17 Other Current Assets. The company is contesting the demand and the management as well as the legal advisors/consultants are of the opinion that its contention will likely to be upheld by the Appellate Authorities. The company also believes that ultimate outcome of these proceedings will not have a material adverse impact on the financial position of the company.

EXCISE DUTY

There are demand notices totaling to Gross Demand of ' 5282.31 lakh (Previous Year ' 2897.00 lakh) from Central Excise Authorities regarding Excise Duty against which the company has deposited under protest ' 77.94 lakh (Previous Year ' 77.94 lakh) shown under Note No. 17 Other Current Assets. The company is contesting the demand and the management as well as the legal advisors/consultants are of the opinion that its contention will likely to be upheld by the Appellate Authorities. The company also believes that ultimate outcome of these proceedings will not have a material adverse impact on the financial position of the company.

INCOME TAX

There are Income Tax demand notices totaling to Gross Demand of ' 23084.40 lakh (Previous Year ' 23069.63 lakh) against which the company has deposited under protest ' Nil (Previous Year ' 683.92 lakh) shown under Note No. 29 Current Tax Liabilities (Net of Current Tax Assets). The management as well as the income tax consultant are of the opinion that its contention will likely to be upheld by the Appellate Authorities/High Court. The company also believes that ultimate outcome of these proceedings will not have a material adverse impact on the financial position of the company.

OTHER DEMAND

1. The pending litigation cases totaling to ' 1 14870.12 lakh (Previous Year ' 571 27.38 lakh) which the company is contesting before different Legal Forums / Courts. The management as well as the legal advisors/consultants are of the opinion that its position will likely to be upheld in the appellate proceedings. The company also believes that ultimate outcome of these proceedings will not have a material adverse impact on the financial position of the company.

2. During the year, the company has made a provision amounting to ' 1930.00 lakh (Previous year ' 1941.00) in terms of DPE guidelines towards Performance Related Pay payable to the executives for F.Y. 2022-23 which is shown under ‘Employee Benefits Expense'.

3. During the year, wage revision of workmen of the company has been finalized on 03.01.2023 for the period 10 years w.e.f 01.11.2017 to 31.10.2027.

4. Lease premium paid for land for mining purposes including payment for Net Present Value (NPV) of forest area paid to forest department and amount paid towards wildlife conservation plan are capitalized under the head “Other Intangible Assets” shown under Note No. 3(C&D)

5. Surda Mining Lease period has been extended by Directorate of Mines & Geology; Govt. of Jharkhand vide order dated 06.01.2022 for a period of 20 years w.e.f 01.04.2020 to 31.03.2040. Validity of Kendadih Mining Lease period is till 02.06.2023 and Rakha Mining Lease was till 28.08.2021. However, application for extension of Mining Lease period for a period of 20 years for both Kendadih and Rakha Mining Leases have been submitted to Govt. of Jharkhand on 16.03.2022 and 30.04.2020 respectively. Presently both the applications are in process as per regulation. The mined-out ore kept at pit-top of Surda Mine could not be transported to the concentrator plant because of nonissuance of challan/permit by State Authorities, Jharkhand due to non-receipt of Surda Lease Deed, which is under process. HCL has taken exploration activity in Rakha mine in phase wise manner to complete G2 exploration within the Mine lease area.

6. KCC : The commercial operation of Smelter, Refinery and Sulphuric Acid Plant at Khetri Copper Complex (KCC) were suspended since December 2008. The Company suffered loss on account of impairment of the said plants valued by an independent consultant in earlier years and consequently a total sum of ' 464.01 lakh was provided in the accounts for impairment loss in compliance with the guidelines of IND AS 36 on “Impairment of Assets”, out of which some impaired assets has been sold/written off and net impairment of ' 461.88 lakh is appearing in books of accounts as on 31.03.2023.

ICC : The company has recently carried out valuation work of Moubhandar Plant & Nikel Plant at ICC by an external Agency and as per valuation report ,the carrying value of assets are more than the net book value of the assets

7. The title deeds for Freehold and Leasehold Land and Building acquired in respect of Gujarat Copper Project (GCP) with book value of ' 4756.01 lakh is yet to be executed (Previous year ' 5026.13 lakh).

8. At ICC, Pollution Control Plant under Package I & III amounting to ' 2100.50 lakh have not been capitalized for want of completion of trial / guarantee run as per terms of contract. As a matter of prudence, full provision for the same has been made in the accounts to take care of efflux of time over the years.

9. Confirmation letters of majority of balances under the heads Trade Payables, Claims Recoverable, Loans & Advances, Trade Receivables and Deposits from and with various parties/ Government Departments have been sent but in number of cases such confirmation letters from the parties are yet to be received.

10. During the year, the company has spent a sum of ' 1 26.67 lakh on account of Corporate Social Responsibility (CSR) expenses. Refund amount of ' 8.37 lakh received towards unspent balance for the Skill Training Project (Kaushal Vikash Yojana) implemented with HCL under CSR at three mining Units of HCL has been adjusted with CSR expenses of the current year. Since the company is not liable to incurred CSR Expenses for FY 2022-23 , the amount spent ' 118.30 lakh in FY 2022-23 will be set off /carry forward against subsequent year CSR liability.

The information has been given of such vendors to the extent they could be identified as “Micro and Small” enterprises on the basis of information available to the Company.

b) The Company has accepted and paid all invoices of Goods & Services raised on HCL through TREDS Portal.

12. Management has not become aware of any instance of fraud by the company or any fraud on the company by its officers and employees during the current financial year.

13. Since the company is primarily engaged in the business of manufacture and sale of copper products, the same is considered to be the only primary reportable business segment and accordingly has been reported. As the Company operates predominantly within the geographical limits of India, no secondary segment reporting has been considered as per IND AS 108 “Operating Segments”.

19. GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS IN TERMS OF Ind AS 19 :

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded through Life Insurance Corporation of India, SBI Life Insurance Co. Ltd. and India First Life Insurance and are managed by separate trust. The Company has also funded through Life Insurance Corporation of India and SBI Life Insurance Co. Ltd towards leave encashment. Expenses recognized in Statement of Profit & Loss and Other Comprehensive Income amounting to ' 4053.00 lakh in respect of Gratuity, Leave Encashment and Leave Travel Concession which have been provided for as stated below.

The following tables summarize the components of net benefit expense recognized in the Statement of Profit and Loss, Other Comprehensive Income and Mine Development Expenditure and the funded status and amounts recognized in the balance sheet for the respective plans.

The estimates of future salary increases were considered in actuarial valuation after considering inflation, seniority, promotion and other relevant factors. Further, the expected return on plan assets is determined considering several applicable factors mainly the composition of plan assets held, assessed risk of asset management and historical returns from plan assets.

20. The Company as Lessee has taken certain vehicles on lease for a period of four years, which can be further extended at mutually agreed terms. There are no escalations in the lease rentals as per terms of the agreement. However, the Company has purchase option for such vehicles at the end of the lease term. Accordingly the Company has adopted Ind AS 116 during the current financial year & accounted for the leasing entries as per IND AS 116.

21. The physical verification of Semi-Finished and In-Process (WIP) and Finished Goods has been conducted departmentally in all the units (ICC, KCC, MCP, TCP & GCP) at the end of the current year by a duly approved internal committee.

In respect of stores and spares, physical verification has been conducted by the external agencies in all the units during the year. Shortages/ (Excesses) identified on such physical verification have been duly adjusted in the books of accounts.

22. The physical verification of fixed assets which is required to be conducted every year so that all the units/offices are covered once in a block of three years interval. During the year, physical verification of fixed assets has been conducted by external agencies for MCP, GCP and ICC& RCP.

23. Financial Instrument1. Derivatives not designated as hedging instruments

The Company uses Commodity Futures Contracts to manage its commodity price risk . The Commodity Futures Contracts are not designated as hedging instrumnets and are entered into for periods consistent with commodity price risk exposure of the underlying transactions, generally from one to four months. However in the year FY 22-23, the Company has not entered into any Commodity Futures Contract.

The Company uses foreign exchange forward contracts to manage some of its transaction exposures. The foreign exchange forward contracts are not designated as cash flow hedges and are entered into for periods consistent with foreign currency exposure of the underlying transactions, generally from one to four months. Commodity price risk

In the year FY 22-23, the Company has not purchased any such copper blister/ anode for its plant in GCP. Hedging the price volatility of copper purchases is in accordance with the Risk Management Policy approved by the Board of Directors. The hedging relationships are for a period between 1 and 4 months based on existing purchase agreements. The Company designated only the spot-to-spot movement of the entire commodity purchase price as the hedged risk. It has been decided by the company not to follow the hedge accounting for these instruments.

As at 31 March 2023, the fair value of the open position of commodity future contracts is nil.

2 . Financial Instruments by Categories

The carrying value and fair value of financial instruments by categories were as follows:

Set out below, is a comparison by class of the carrying amounts and fair value of the Company's financial instruments, other than those with carrying amounts that are reasonable approximations of fair values:

3. The Management considered the Service fees of Rs 15 lakh paid on the Exim Bank Term loan amounting to Rs. 30000 lakh drawn on 29.05.2018 as immaterial, as the amount of service fee was only 0.009% of the Turnover (FY 2022-23) of the company and hence the same was not considered as a transaction cost in terms of fair valuation at initial recognition under INDAS 109. Further, the Management assessed that for the purpose of IND AS 109, the carrying value of loan is considered as its fair value as no loan could be provided at a rate lower that the rate of interest of Exim Bank loan for similar terms and conditions of the loan at that point of time. Similarly, the Management considered the total of Upfront fees & Other charges of ' 245.33 lakh paid on the SBI ECB loan amounting to ' 17734.75 lakh drawn during July 2018 to January 2019 as immaterial, as the amount of such fees/ charges was only 0.15% of the Turnover (FY 2022-23) of the company and hence the same was not considered as a transaction cost in terms of fair valuation at initial recognition under INDAS 109. Further, the Management assessed that for the purpose of IND AS 109, the carrying value of loan is considered as its fair value as no loan could be provided at a rate lower that the rate of interest of SBI ECB loan for similar terms and conditions of the loan at that point of time.

The Management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

The Company enters into derivative financial instruments with various counterparties, principally with financial institutions having Investment grade credit ratings. Foreign exchange forward contracts and commodity futures contracts are valued using valuation techniques, which employs the use of market observable inputs. The most frequently applied valuation techniques include forward pricing.

4. Fair Value Hierarchy

Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices (unadjusted) in active markets.

Level 2 - Level 2 hierarchy includes financial instruments measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Level 3 hierarchy includes financial instruments measured using inputs that are not based on observable market data (unobservable inputs).

ii) Commodity Price Risk

The company's exposure to Commodity price from copper price fluctuation in international market does not arise as the company hedges all its imports through Future contracts at LME. b) Credit Risk

Credit risk refers to the risk of default on its obligation by the Debtors resulting in a financial loss. The company sells majority of its products either against Advance from Customers or Letters of Credit. Accordingly, credit risk from Trade receivables has not been cosidered as credit risk.

The maximum exposure to credit risk at the reporting date is ' 983.82 lakh for which full provision has been made in the accounts as disclosed in Note No 12.

Other financial assets

Credit risk relating to cash and cash equivalents is considered negligible because our counterparties are scheduled banks. We consider the credit quality of Term deposits with such banks as good as these banks are under the regulartory framework of Reserve Bank of India. We review these banking relationships on an ongoing basis. c) Liquidity Risk

Our liquidity needs are monitored on the basis of monthly and yearly projections. The company's principal sources of liquidity are cash and cash equivalents and cash generated from operations.

We manage our liquidity needs by continuously monitoring cash inflows and by striving to maintain adequate cash and cash equivalents. Net cash requirements are compared to available cash in order to determine any shortfall. Short term liquidity requirements consists mainly of Loans, Sundry creditors, Expense payable, Employee dues arising during the normal course of business as of each reporting date. We strive to maintain a sufficient balance in cash and cash equivalents to meet our short term liquidity requirements.

The table below provides details regarding the contractual maturities of financial liabilities. The table has been drawn up based on the undisclosed cash flows of financial liabilities based on the earliest date on which the company can be required to pay.

26. The value of assets, other than fixed assets and non-current assets, have realizable value at least equal to the amount at which they are stated.

27. Gujarat Copper Project of the Company consists of three units namely, Anode furnace (Smelter), Refinery and Kaldo Furnace along with land, buildings & other assets having aggregate book value of ' 21355.85 lakh as at March 31,2022. The commercial operation of Gujarat Copper Project was suspended since August 2019 due to non-availability of feed material at economical price. Accordingly, the company had assessed the loss on account of impairment of the said plant excluding land, building, roads etc. valued by an Independent consultant & consequently a sum of ' 9708.21 lakh had been provided in the accounts of FY 2020-21. During the FY 2021-22, the Company had further re-assessed the impairment study of the said plant excluding land, building, roads etc by an independent consultant and a sum of ' 5194.00 lakh had been booked as impairment loss. Total cumulative amount of ' 14902.21 lakh has been provided in the accounts for impairment loss in compliance with the guidelines of IndAS-36 on “Impairment of Assets” as per notification under section 133 of the Companies Act, 2013. The Asset Monetization plan (AMP) has been sent to Ministry vide e mail dated 27.11.2021 which include Assets of GCP in addition to other assets for approval. Since only value of the assets at GCP is more than ' 100.00 crore, the company can initiate further action on AMP after obtaining approval from DIPAM.The Net Book value as on 31.03.2023 is ' 6138.73 lakh.

28. During the financial year 2021-22, Provident Fund (PF) Trusts maintained for the employees of the Company namely ICC PF Trust and KCC PF Trust have incurred a total loss of '116.06 lakh. As per Accounting Policy of the Company, deficit in PF Trusts ascertained on the basis of last audited accounts of the Trust is accounted for as a charge to Revenue. Accordingly, the Company has made a provision of '116.06 lakh during the current financial year towards total deficit in PF Trust of FY 2021-22.

29. The Board of Directors of the Company has recommended payment of dividend at rate of ' 0.92 per share on ' 5/- face value for the year 2022-23 for approval of shareholders in the Annual General Meeting. The outgo on this account will be ' 8896.62 lakh (approx.)

30. Consequent upon the Judgment of Common Cause dated 02.08.2017, which is applicable only to the mining leases of iron and manganese ore, passed by the Apex court in the case of Common Cause Vs UOI and others, a demand of ' 4353.78 lakh was raised by the District Mining Officer of Jamshedpur for running the Surda mine without valid environment clearance (EC) although Surda mine has a valid mining lease, forest clearance and it has adhered to the terms of approved mining plan and it was working on valid Consent to Operate. Based on the Revision Application filed by the Company, the Revisional Authority of the Ministry of Mines, after hearing at length both parties had issued specific direction against the demand of District Mining Officer (DMO) not to take any coercive measures in terms of recovery of the said demand. On revision of demand from ' 4353.78 lakh to ' 12690.49 lakh by the office of the District Mining Officer and subsequently revised to ' 92940.06 lakh by the State Government, the Company again appealed before the Revisional Authority and the last hearing was held on 29.09.2022 through video conferencing and interim stay, granted earlier, is continued by the Revisional Authority till the next date of hearing. Further, MMDR Amendment Act, 2021 has come into force w.e.f. 28.03.2021 which clearly explained the expression “raising, transporting or causing to raise or transport any mineral without any lawful authority” shall mean raising, transporting or causing to raise or transport any mineral by a person without prospecting license, mining lease or composite license. Based on the clarification, the Company believes that the judgement of the case will be in favour of the Company and is of the view that the same has not to be shown as Contingent Liability as on 31.03.2023.

31. The previous year's figures have been regrouped / rearranged, wherever necessary.