i. All Non-Current Investments in Equity Instruments of Subsidiaries and Joint Ventures are carried at cost less impairment in value of investment, if any. The Investment in Equity Instruments of others are carried at Fair Value.

ii. The Company had invested ' 33.80 crore (P.Y ' 33.80 crore) towards 26% equity in SICAL Iron Ore Terminal Limited (SIOTL), a Joint Venture for the construction and operation of iron ore terminal at Kamrajar Port. The construction of terminal was completed by November 2010, the same could not be commissioned due to restrictions on mining, transportation and export of iron ore. After due tender process, Kamrajar Port Ltd (KPL) has allowed to SIOTL for necessary modifications to also handle common user coal. MMTC's Board of Directors during its 428th meeting held on 14.09.2016 approved MMTC's exit through open tender mechanism from the JV. Accordingly, bids were invited from interested bidders for sale of MMTC's equity. No bids were received in the tender process. However, the lead promoter (i.e., M/s Sical Logistics Ltd) has agreed to buy MMTC's equity at the reserve price of ' 34.26 crore. Accordingly, the Share Purchase Agreement (SPA) has been signed and in terms of the agreement M/s SICAL Logistics Ltd have deposited ' 0.50 crore with MMTC towards performance of the Agreement. As per terms of SPA, M/s SIOTL applied to M/s Kamrajar Port Ltd for NOC/Permission of MMTC's exit from the JV. The NOC was received in Oct 2019. However, balance payment has not been received so far. Keeping in view the delay in receipt of share purchase value from M/s SICAL Logistics Ltd and financial distress of M/s Sical Logistics Ltd, a provision has been created for ' 33.80 crore towards impairment in value of investment on SIOTL. Accordingly, the investment has been shown as 'held for sale'. KPL issued notice of intent to terminate to SIOTL on 21.12.2020. The company filed a writ petition on 24.06.2021 in Madras High Court against the termination notice issued by KPL. Vide order dated 30.11.2021, this petition has been dismissed by the Hon'ble Madras High Court on the ground that writ is not maintainable before the court. MMTC has filed an appeal before Hon'ble Madras High Court challenging the impugned judgement order dated 30.11.2021. In the meantime, M/s Sical Logistics Limited holding company of SIOTL was undergoing Corporate Insolvency Resolution Process (CIRP). The Company (MMTC) lodged its claim of ' 34.26 Cr with CIRP of Sical Logistics. To safeguard the investment in SIOTL, M/s SICAL Logistics had moved a similar application being IA/574/Che/2021 in main CIRP proceedings being IBA/73/2020. To ensure that no adverse order is passed in these proceedings, MMTC filed an application being IA/686/Che/2021 for being impleaded as a party and to be heard before any order is passed. Vide order dated 11.03.2022, NCLT Chennai dismissed SICAL's IA/574/Che/2021 for want of Jurisdiction. Accordingly, MMTC's application being IA/686/Che/2021 in IA/574/Che/2021 stands closed. IRP of SLL had also informed about the successful resolution of SLL duly approved by NCLT vide its order dated 8.12.2022. M/s SIOTL's two creditors (1. M/s Portman India Private Limited, Chennai 2. M/s ITD Cementation India Limited, Mumbai) initiated corporate insolvency resolution process against SIOTL in NCLT under Insolvency and Bankruptcy Code 2016. Vide order dated 01.03.2022, Vide order dated 01.03.2022, NCLT Chennai has admitted their applications and have appointed same IRP for both cases. RP of SIOTL vide letter dated 02.03.2023 has informed that the members of the Committee of

Creditors(CoC) have resolved to liquidate the Corporate Debtor and application for the same has been filed before Hon'ble NCLT for initiation of liquidation process. Therefore as per Regulation 12 (2) of the CIRP Regulation and initiation of liquidation the undersigned cannot consider MMTC claim at this stage. Other options available for realisation of investment amount, is being explored in consultation with Law Division.

iii. The process of divestment of NINL has been completed on 4.7.2022 through DIPAM. Further refer note no. 36 (C).

iv. MMTC had invested ' 26 crore (5.20 crore equity share of ' 5 Face value) during 2009-10 in ICEX. ICEX Initial equity capital was ' 100 crore that was later on increased to ' 266.75 crore. However later on MMTC divested 2 crore share @ ' 10 per share in 2015-16. After this divestment MMTC's shareholding reduced to ' 16 crore (3.20 crore share @ ' 5 Face value) which is 6% of the total share capital of ' 266.75 crore.

Later on due to erosion of Net worth of ICEX MMTC provided Fair value Adjustment of ' 8.16 crore and ' 7.84 crore in 2019-20 and 2021-22 respectively. After such adjustment share value in the books of accounts stands to ' Nil crore as on 31.03.2023 (P.Y. ' Nil crore).

As of March 31,2023, the shares of ICEX are not available for purchase on any stock exchange. MMTC tried to sell its equity in ICEX in FY 2017-18 and again from FY 2019-20 to 2021-22, but MMTC was unable to find any buyers.

SEBI passed order dated 10.05.2022 for withdrawal of recognition to ICEX vide official gazette of India on 18.05.2022. However, Securities Appellate Tribunal (SAT), by its order dated 13 June 2022 has Quashed SEBI order derecognizing ICEX and has given ICEX one-year time from 13.6.2022 to complete all compliances to SEBI's satisfaction during this period all trading activities would remain suspended.

ICEX Board in February 2023, approved the voluntary surrender of the License/Recognition of the Exchange to Regulator (SEBI) and to discontinue the Commodity derivatives business. Further, ICEX Board decided to consider new line of businesses at appropriate time.

i. Represents ' 208.25 crore (P.Y. ' 208.25 crore) recoverable from various borrowers and National Spot Exchange (NSEL) arising on account of default of payment obligation of NSEL against which full provision has already been made. The Company has filed legal suit in Bombay High Court against NSEL and others and hearings are in progress. CBI also investigated the case. The Hon'ble Supreme Court of India has set aside the order of amalgamation of NSEL with FTIL. Further, Hon'ble Supreme Court has allowed the appeal filed by State of Maharashtra and held that the notifications issued under Section 4 of the MPID Act attaching the properties of the 63 Moons Technologies Ltd are valid.

The suit filed by Company has been tagged with the suit no 121 of 2014 filed by L.J. Tanna Shares and Securities which has not come up for hearings as per the CMIS systems of the Hon'ble Bombay High Court in regular course. The next date of hearing is awaited. The Company has also filed its claim before the MPID Court in Mumbai to recover the principal sum with interest at 18% per annum. The matters are pending at various stages in court.

ii. During the year a provision of ' Nil crore (P.Y. ' Nil crore) has been made against advance for project development to HFTWPL & KFTWPL. Total Provision as on 31.03.2023 is ' 16.30 crore (P.Y. ' 16.30 crore).

Deferred Tax assets have been recognised to the extent of expected utilisation against probable future taxable income of the company.

* The Company has opted for the new Income Tax rates as per the option under section 115BAA introduced vide Taxation Laws (Amendment) Act, 2019 with effect from FY 2022-23 (AY 2023-24). Hence, carry forward balance of Deferred Tax Assets amounting to ' 214.41 crore has been adjusted to the extent of difference in effective income tax rates between regular Income Tax rates (34.944%) and rates as per the option under section 115BAA (25.167%).

Further, the Company has not recognised Deferred Tax Assets on carry forward losses arising during the Current as well as previous financial years on conservative basis keeping in view of the uncertainties involved.

*Includes ' 20.10 crore (P.Y. ' 14.68 crore) is under dispute (refer note no. 34 (i) (b))

(i) ** In terms of the court order dated 06.05.2022 & 07.07.2022 passed by the Hon'ble Delhi High Court in the matter of Anglo Coal case, an amount of ' 1088.62 crore has been deposited with Delhi HC and the final amount is subject to judgement/clarification of Hon'ble Court. Provision of ' 1054.77 crore (Refer note no. 20) has already been made in the books of accounts with interest up to 19.07.2022 as per company's calculation. Next date of hearing is 13.07.2023.

(ii) Includes an amount of ' 4.36 crore deposited with The Registrar General of Hon'ble Delhi High Court in respect of the case Trammo AG v/s MMTC Limited. The provision of ' 4.36 crore (Refer note no. 20) against the same has been made in the books.

(iii) Includes an amount of ' 0.60 crore deposited with CESTAT, which is prerequisite for filing appeal against the service tax demand.

(iv) Includes an amount of ' 2.79 crore deposited with The Registrar General of Hon'ble Delhi High Court in respect of the case OMP (ENG) KISPL v/s MMTC Limited. The company has recognised contingent liability of ' 6.14 crore (Refer note no. 34).

a) As taken, valued and certified by the management.

b) Inventories including goods in transit are valued at lower of the cost or realizable value as on 31^st March 2023. Valuation of closing stock at market price being lower than cost, has resulted in a loss of ' Nil crore (P.Y. ' 0.01 crore).

c) Stock-in-trade includes the following:

(i) 9036 units (P.Y. 9036 units) Certified Emission Reductions (CERs) valued at ' 1 (P.Y. ' 1) as per Ind AS-2 'Inventories', being lower of cost or net realizable value.

(ii) Nil units (P.Y. Nil units) number of CERs under certification.

(iii) An amount of ' 5.42 crore (P.Y. ' 5.30 crore) has been spent on account of Depreciation, O&M cost of Emission Reduction equipment.

d) Stock in Trade includes an inventory of ' Nil crore (P.Y. ' Nil crore) valued at cost relating to onion imported under Price Stabilization Scheme of the Government of India to create Buffer Stock of onion. (Refer note 36(e)).

The Company has one class of share capital, comprising ordinary shares of ' 1/- each. Subject to the Company's Articles of Association and applicable law, the Company's ordinary shares confer on the holder the right to receive notice of and vote at general meetings of the Company, the right to receive any surplus assets on a winding-up of the Company, and an entitlement to receive any dividend declared on ordinary shares.

Movements in equity share capital: During the year, the company has not bought back any shares.

The Company does not have any holding company.

During 2018-19, the company has allotted 50 crore equity shares in ratio of 1:2 as fully paid bonus shares by capitalization of free reserves amounting to ' 50 crore, pursuant to an ordinary resolution passed after taking consent of shareholders through postal ballot. Accordingly the paid up share capital of the company stands increased to ' 150/- crore divided into 150 crore equity share of ' 1/-each fully paid.

(i) Profit of the company for PRP purpose has been calculated taking into account interest income on trade related advance (other than overdue) as per Accounting Policy no. 2.4 (ii). Pending approval of the Remuneration Committee as mandated in the DPE Guidelines, the PRP advance was made to employees. The order for recovery of above PRP advance from employees is disputed by staff & officers forum and is pending in respective courts.

(ii) The payment of perks & allowances has been deferred w.e.f. 01.09.2020 in accordance with the decision of FMCOD in its meeting held on 20.10.2020 on the grounds of poor financial health of the company.

(iii) MMTC Employees Post-Retirement Medical Benefit Trust, is operational during 2022-23. The decision to fund the PRMBS Trust is pending, keeping in view the affordability provision laid down in the DPE order.

(iv) CPF/Pension dues from December 2021 to March 2022 was pending and same has been paid on 5.7.2022.

*Consequent upon receipts of divestment proceeds from NINL on 4.7.2022 an amount of ' 2551.44 crore as on 31.3.2022 have been paid towards principal and agreed interest upto 31.3.2022. An amount of ' 106.41 crore relating to interest and Right to Recompense (RTR) has been provided for in the current twelve months, out of which ' 63.68 crore pertains to interest from 01.04.2022 to 31.03.2023 & remaining amount of ' 42.73 crore (refer note no. 16) relates to additional interest and other charges under RTR subject to final settlement with banks. The matter is now closed with State Bank of India and Punjab & Sind Bank. Other lender banks are also taking up the matter with their appropriate authorities. Surplus funds are being invested as per Board approved policies.

Also includes interest paid on gratuity ' 0.08 crore, on late payment of TDS ' 0.10 crore and on interest on late payment of income tax ' 1.39 crore.

ia) Guarantees issued by Banks on behalf of the Company ' 13.69 crore (P.Y. ' 13.95 crore) in favour of customer towards performance of contracts against which backup guarantees amounting to ' Nil crore (P.Y. ' Nil crore) have been obtained from associate suppliers.

ii) Letters of Credit opened by the Company remaining outstanding ' Nil crore (P.Y. ' 9.33 crore).

iii) Corporate Guarantees of ' Nil crore (P.Y. ' 1345.82 crore) given by the company in favour of financial institutions/banks on behalf of Neelachal Ispat Nigam Limited (NINL).

iv) In some of the cases, amounts included under contingent liabilities relate to commodities handled on Govt. of India's account and hence the same would be recoverable from the Govt. of India.

v) Additional liability, if any, on account of sales tax demands on completion of assessments, disputed claims of some employees, non-deduction of Provident Fund by Handling Agents/Contractors, disputed rent and interest/penalty/legal costs etc., in respect of amounts indicated as contingent liabilities being indeterminable, not considered.

vi) Claims against the company not acknowledged as debt includes demand raised by RPFC of ' 2.18 crore (P.Y. ' 0.69 crore) on account of MMTC Employees Cooperative Canteen Society.

vii) a) Above includes amount of ' 0.07 crore (P.Y. ' 0.07 crore) on account of demand raised by Stock Exchange Board of India (SEBI) in relation to non-compliance of regulation 33 of SEBI. Further an amount of ' 0.01 crore is also included for non-compliance of appointment of Independent Director by administrative ministry.

35. Commitments

Capital Commitments: Estimated amount of contracts including foreign currency contracts net of advances remaining to be executed on capital account and not provided for is ' Nil crore (P.Y. ' Nil crore).

Capital commitment in respect of investment in joint venture ' Nil crore (P.Y. ' Nil crore).

36. General Disclosures :-

a) Following goods on account of un-billed purchases are held by the Company under deposit and shown under other current assets (note no. 11 (B)) as well as other current liabilities (note no. 21).

b) Nil kgs (P.Y. Nil kgs) of un-refined Silver is lying in DRO as on 31.3.2023 on behalf of Shri Mata Veshno Devi Shrine Board.

c) Neelachal Ispat Nigam Ltd (NINL)-Joint Venture company divestment has been completed on 4.7.2022.

i The detailed note on NINL divestment was given in 2021-22 and further to that, MMTC’s share of ' 484.14 crore out of ' 911.16 crore towards contingent liabilities on account of Govt. dues (' 36.77 crore - Non Tax liabilities & ' 874.39 crore -Tax liabilities) have been kept in an interest bearing Escrow Account, which shall be passed on to Sellers in the ratio of their stake holding, if the claim against these dues have not been paid till the end of retention period (2 years for non - tax liabilities and 3 years for tax liabilities), Further as the above event is based on probable future outcome, the revenue for the same has not been recognised and this deferred amount has been treated as contingent asset, which is accordance of the opinion of Tax experts for capital gain tax liability on contingent consideration of ' 484.13 crore.

Out of the ' 911.16 crore mentioned above, amount of ' 82.96 crore, are settled in the month of April, 2023 against payment of ' 1.24 crore (as agreed mutually by Sellers and Buyer) and balance ' 81.72 crore is distributed to sellers in their shareholding ratio, out of which MMTC had received ' 43.42 crore on 25.04.2023. Balance amount of ' 828.20 crore (MMTC share ' 440.72 crore) is in an interest bearing Escrow Account.

ii. All Corporate Guarantees (CG) furnished by MMTC on account of NINL have been released.

iii. As per the clause of Share Purchase Agreement (SPA) for divestment of NINL, any unforeseen liability on NINL post divestment shall be borne by Sellers/ Promoters as per the warranty clause of SPA and the aggregate liability of the Sellers and Promoters cannot exceed 20% of the amount received by the sellers from Bid amount, by way of sale consideration and discharge of their respective Seller Debt. MMTC’s maximum liability in this regard, if any, works out to ' 1060 crore.

d) The Company has filed a recovery suit of ' 31.40 crore against M/s AIPL in respect of Mint sale transaction (P.Y. ' 31.40 crore) which included overdue interest of ' 2.95 crore (P.Y. ' 2.95 crore) which has been decreed in favour of the Company. M/s AIPL have also filed a suit against Government Mint/MMTC for damages of ' 167.20 crore (P.Y. ' 167.20 crore) which is not tenable as per legal opinion and is being contested.

e) Under Price Stabilization Scheme of the Government of India to create Buffer Stock of onion, MMTC imported onion from July 2019 onwards until 31.03.2020. As per the scheme MMTC's trading margin has been fixed at 1.5% on C&F cost at the time of sale and all expenses related to the import shall be to the account of Govt. The difference between the sale realisation and cost incurred including MMTC's margin has been shown as claim receivables from Govt. which will be adjusted with the advance received from Govt.

f) A claim for ' 1.53 crore (P.Y. ' 1.53 crore) against an associate on account of damaged imported Polyester is pending for which a provision of ' 1.53 crore (P.Y. ' 1.53 crore) exists in the accounts after taking into account the EMD and other payables. The company has requested customs for abandonment which is pending for adjudication. A criminal & civil suit has been filed against the Associate.

g) At RO Mumbai, during the year 2011-12, a foreign supplier has submitted forged shipping documents through banking channels to obtain payment of ' 4.13 crore (P.Y. ' 4.13 crore) without making delivery of the material (copper). However, the company has obtained an interim stay restraining the bank from making the payment under the letter of credit which was vacated and Indian bank had to make payment to the foreign bank. The matter is still pending in the court. The same supplier is also fraudulently holding on to the master bills of lading of another shipment of copper which would enable the Regional Office, Mumbai to take delivery and possession of goods valued at ' 8.60 crore (P.Y. ' 8.60 crore), already paid for and after adjustment of EMD & payables provision for the balance amount has been made during the year 2014-15.

h) At RO Hyderabad:

(i) Fake bills of lading covering two shipments of copper valued at ' 3.75 crore (P.Y. ' 3.75 crore) were received during 2011-12 through banking channels against which no material was received. The foreign supplier has been paid in full through letter of credit after the company received full payment from its Indian customer. The company has initiated legal action against the foreign supplier. The amount of ' 4.44 crore for this transaction received in full and final settlement from the local buyer which includes in Advance received from customer under other non-current liabilities.

(ii) Trade receivable from MBS Group of ' 226.82 crore against which 100% provision has already been made. In this matter Studded Jewellery deposited by MBS Group during 2012-13 with RO Hyderabad and is lying in office vault. This is the prime legal matter pending before the various courts/forums due to abnormal difference in valuation claimed by MBS Group and re-valuation of same done by the company. Also said matter in under investigation with CBI/ED as on date.

i) Hon'ble Delhi High Court has directed the Company to deposit ' 39.62 Crore (PY ' 39.62 Cr.) stated to be receivable by one of the Company's coal suppliers as per their books of accounts from MMTC in a case relating to execution of decree filed by a foreign party against the coal supplier. MMTC has filed application and counter affidavit stating that the supplier's contractual obligations are yet to be discharged and MMTC is unable to deposit any amount at this stage. Any amount found payable to the supplier after resolution of all issues, the same will be deposited with the court instead of releasing to the supplier without any liability on MMTC. The hearings are in progress and next date of hearing is 22.08.2023.

j) FCI in March 2019 approached MOC&A, F&PD for initiation of Administrative Mechanism for Resolution of CPSEs Disputes (AMRCD) proceedings against MMTC for an amount of ' 92.18 crores, including interest as MMTC had deducted an amount of ' 60.99 crores from FCI's payment in May 2014. Out of this provision of an amount of ' 1.13 crore has been made on 31.03.2022. For the balance amount of ' 91.05 crore contingent liability provided. MMTC explained its position that an amount of ' 60.99 crore was deducted from wheat exports in 2014 to recover MMTC's dues from FCI arising from multiple transactions since 1991 onwards. The matter was admitted for resolution under AMRCD. The AMRCD committee in its meeting held on 22.05.2020 directed both MMTC and FCI to reconcile the accounts. MMTC and FCI have since begun working towards reconciliation of the claims and counter claims. Numerous rounds of discussions have taken place between MMTC and FCI, wherein the supporting documents have been exchanged between both the parties to establish their claims and counter claims, respectively. In July 2022, MMTC submitted to FCI write-ups on claims and counter claims with copies to DoC and DoCA,F&PD. In Nov 2022, DoF&PD sought information on claims and counter claims from MMTC & FCI. MMTC provided the information to DoF&PD in Nov 2022.

k) The company has taken decision to replace the existing ERP Package with TALLY prime package w.e.f. 01.04.2023.

l) As per the direction of administrative ministry for downsizing of offices/business company has introduced VRS on 16.03.2023 with the eligibility criteria covering all employees in staff cadre and management cadre irrespective of length of services. VRS of 95 number of employees has been accepted.

m) MMTC has been directed by administrative ministry to prepare a road map for scaling down of manpower including exit from various JVs. Also direction have been given for exit from business operation. Government is yet to decide the exit route for MMTC. As there is no communication from Ministry for closure etc., status quo of going concern is being maintained. Consequent upon receipts of divestment proceeds from NINL on 4.7.2022 an amount of ' 2551.44 crore have been paid towards principal and agreed interest up to 31.3.2022 against bank borrowings. Surplus funds are being invested as per Board approved policies, as a result of which the company is in a position to mitigate the immediate expenses and also discharging all its financial commitments. At this stage, the company's projections, estimates and expectations may be forward looking. Important factors that could make a difference to the Company's operations includes economic conditions affecting demand / supply and the price conditions in the domestic and oversea markets in which the company operates, change in Government policies, other statues and other incidental factors.

n) An amount of ' 0.10 crore on account of foreign Debtors outstanding more than twenty years was written off with the approval of the Board of Directors of MMTC Limited during the F.Y 2022-23 and the provisions created earlier for Bad and Doubtful Debts/Claims/Loans were withdrawn.

The Management is under the process of taking an opinion on FEMA guidelines through an expert and action (if any) will be taken accordingly.

37. Financial Instruments- Fair Values and Risk Management

37.1 Financial Instruments by Categories

The following tables show the carrying amounts and fair values of financial assets and financial liabilities by categories. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

37.2 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).

a) Market risk

(i) Foreign Exchange Risk

The company has import and export transactions and hence has foreign exchange risk primarily with respect to the US$. The company has not arranged funds through long term borrowings. The short-term foreign currency loans (buyer's credit) availed from banks are fixed interest rate borrowings. As a result, the company does not have any interest rate risk. The company's risk management policy is to use hedging instruments to hedge the risk of foreign exchange.

The company uses foreign exchange forward contracts to hedge its exposure in foreign currency risk. The company designates the spot element of forward contracts with reference to relevant spot market exchange rate. The difference between the contracted forward and the spot market exchange rate is treated as the forward element. The changes in the spot exchange rate of hedging instrument that relate to the hedged item is deferred in the cash flow hedge reserve and recognized against the related hedged transaction when it occurs. The forward element of forward exchange contract is deferred in cost of hedging reserve and is recognized to the extent of change in forward element when the transaction occurs.

The company has no exposure in respect of foreign currency receivable/payable since loss/gain is to the account of the Associate supplier/customer. Also the company has taken forward exchange contracts in respect of payables at the risk and cost of the associate.

Sensitivity:

As of March 31, 2023 and March 31, 2022, every 1% increase or decrease of the respective foreign currencies compared to our functional currency would impact our profit before tax by approximately ' NIL and ' NIL, respectively.

(i) Price Risk

The company’s exposure to equity securities price risk arises from investments held by the company and classified in balance sheet as at fair value through other comprehensive income. Out of the two securities held by the company, one is listed in NSE and the other (ICEX) is not listed.

As of March 31,2023 and March 31,2022, every 1% increase or decrease of the respective equity prices would impact other component of equity by approximately '0.05 crore and ' 0.11 crore, respectively. It has no impact on profit or loss.

b) Credit Risk

Credit risk refers to the risk of default on its obligation by a counter party resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Accordingly, credit risk from trade receivables has been separately evaluated from all other financial assets in the following paragraphs.

Trade Receivables

The company’s outstanding trade receivables are mostly secured through letter of credit/BG except in respect of JV’s and Govt of India.

Impairment on trade receivables is recognized based on expected credit loss in accordance with provisions of Ind AS 109. The company’s historical experience for customers, present economic condition and present performance of the customers, future outlook for the industry etc. are taken into account for the purposes of expected credit loss.

Credit risk exposure

Trade receivables are generally considered credit impaired when overdue for more than three years (except government dues), unless the amount is considered receivable, when recoverability is considered doubtful based on the recovery analysis performed by the company for individual trade receivables. The company considers that all the above financial assets that are not impaired though overdue are of good credit quality.

With regard to certain trade receivables, the company has equivalent trade payables to associate suppliers which are payable on realization of trade receivables. Such trade receivables are considered not impaired though past due.

Other financial assets

Credit risk relating to cash and cash equivalents is considered negligible because our counterparties are banks. We consider the credit quality of term deposits with scheduled banks which are subject to the regulatory oversight of the Reserve Bank of India to be good, and we review these banking relationships on an ongoing basis. Credit risk related to employee loans are considered negligible since major loans like house building loans, vehicle loans etc. are secured against the property for which loan is granted to the employees. The other employee loans are covered under personal guarantee of concerned employees along with surety bonds of other serving employees. There are no impairment provisions as at each reporting date against these financial assets. We consider all the above financial assets as at the reporting dates to be of good credit quality.

a) 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, cash generated from operations and availability of funding through an adequate amount of committed credit facilities to meet obligations when due.

Due to the dynamic nature of underlying businesses, the company maintains flexibility in funding by maintaining availability under committed credit lines.

Short term liquidity requirements consists mainly of sundry creditors, expense payable, employee dues arising during the normal course of business as of each reporting date. The company arranges credit from bank and maintains balance in cash and cash equivalents to meet short term liquidity requirements.

The company assesses long term liquidity requirements on a periodical basis and manages them through internal accruals and committed credit lines.

The table below provides details regarding the contractual maturities of non-derivative 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. The table includes both principal & interest cash flows.

39. Disclosure in respect of Indian Accounting Standard (Ind AS)-36 “Impairment of assets”

During the year, the company assessed the impairment loss of assets and accordingly provision towards impairment in the value of PPE amounting to ' Nil crores (P.Y. ' Nil crore) has been made during the year.

40. Disclosure in respect of Indian Accounting Standard (Ind AS)-19 “Employee Benefits”

40.1 General description of various employee’s benefits schemes are as under:

a) Gratuity:

Gratuity is paid to all employees on retirement/separation based on the number of years of service. The scheme is funded by the Company and is managed by a separate Trust through LIC. In case of MICA division employees the scheme is managed directly by the company through LIC. The scheme is funded by the company and the liability is recognized on the basis of contribution payable to the insurer, i.e., the Life Insurance Corporation of India, however, the disclosure of information as required under Ind AS-19 have been made in accordance with the actuarial valuation.

As per Actuarial Valuation company’s expected contribution for FY 2023-24 towards the Gratuity Fund Contribution is ' 1.97 crore (P.Y. ' 2.42 crore). However, the company is making contribution to the fund as per the demand made by Life Insurance Corporation of India.

b) Leave Compensation:

Payable on separation to eligible employees who have accumulated earned and half pay leave. Encashment of accumulated earned leave is also allowed during service leaving a minimum balance of 15 days twice in a year.

The liability on this account is recognized on the basis of actuarial valuation.

c) Long Service Benefits: Long Service Benefits payable to the employees are as under :-

(i) Service Award:

Service Award amounting to ' 3,500/- for each completed year of service is payable to the employees on superannuation/voluntary retirement scheme.

(ii) Compassionate Gratuity

Compassionate Gratuity amounting to ' 50,000/- is payable in lump-sum to the dependants of the employee on death while in service.

(iii) Employees' Family Benefit Scheme

Payments under Employees' Family Benefit Scheme is payable to the dependants of the employee who dies in service till the notional date of superannuation. A monthly benefit @ 40% of Basic Pay & DA last drawn subject to a maximum of ' 12,000/- on rendering service of less than 20 years and similarly a monthly benefit @ 50% of Basic Pay & DA last drawn subject to maximum ' 12,000/- on rendering service of 20 years or more at the time of death.

(iv) Special Benefit to MICA Division employees amounting to ' 5,00,000/- (Officer), ' 4,00,000/- (Staff) and ' 3,00,000/- (Worker) upon retirement

d) Provident Fund: The Company’s contribution paid/payable during the year to Provident Fund and the liability is recognized on accrual basis. The Company’s Provident Fund Trust is exempted under Section 17 of Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. The conditions for grant of exemptions stipulate that the employer shall make good deficiency, if any, in the interest rate declared by the Trusts vis-a-vis statutory rate. The company does not anticipate any further obligations in the near foreseeable future having regard to the assets of the funds and return on investment.

e) Superannuation Pension Benefit - During the year, the Company has recognized ' 3.48 crore (P.Y. ' 4.06 crore) towards Defined Contribution Superannuation Pension Scheme in the Statement of Profit & Loss.

f) Post-Retirement Medical Benefit: Available to retired employees at empanelled hospitals for inpatient treatment and also for OPD treatment under ‘Defined Contribution Scheme’ as under:

a. The liability @ 1.50% of PBT for the year in respect of scheme for retirees prior to 1.1.2007 (closed group) has been not been recognised for FY 2021-22 and 2022-23 on the basis of affordability even though company has reported profit before tax ' 1279.16 crore (P.Y. ' 120.60 crore). Also, the company has not provided for PRMBS for open group @ 4.50% Baisc DA for serving employees.

b. The company has created PRMBS Trust for management of fund and paid ' 150.00 crore in 2019-20 to trust against company’s liability towards the scheme. The trust is operational during 2022-23.

41. Disclosure in respect of Indian Accounting standard (Ind AS)-108: “Operating Segments”

Based on the “management approach” as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the company’s performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented for each business segment. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual business segments, and are as set out in the significant accounting policies. Business segments of the company are:-Precious Metals, Metals, Minerals, Coal & Hydrocarbon, Agro Products, Fertilizer and Others

Segment Revenue and Expense

Details regarding revenue and expenses attributable to each segment must be disclosed

Segment assets include all operating assets in respective segments comprising of net fixed assets and current assets, loans

and advances etc. Assets relating to corporate and construction are included in unallocated segments. Segment liabilities

include liabilities and provisions directly attributable to respective segment.

(b) Contract Assets

Company recognises contract assets when it satisfies its obligation by transferring the goods or services to the customer and right to receive the consideration is established which is subject to some conditions to be fulfilled by the company in future before receipt of consideration amount. Being a trading company performance obligation of the company is satisfied upon transferring a promised goods or service to its customers and there is no obligation on the part of the company which remains unexecuted.

(c) Contract Liabilities

Upon execution of contract with the customers, certain amount in the form of EMD, Security Deposit, Margin Money, advance for payment of custom duty etc. received from the customers which is shown as advance received from customers under the heading “Other Financial Liabilities” and “Other Liabilities”

During the year company has recognized revenue of ' Nil crore (P.Y. ' Nil crore) from the performance obligations satisfied in earlier periods by raising debit/credit notes to its customers.

The company has made the adjustment of ' Nil crore (P.Y. ' Nil Crore) in the revenue of ' Nil crore ( P.Y. ' Nil crore) recognized during the year on account of discounts, rebates, refunds, credits, price concessions, incentives performance bonuses etc. as against the contracted revenue of ' Nil crore ( P.Y. ' Nil crore).

(d) Practical expedients

During the year company has entered into sales contracts with its customers where some of the part is yet to be executed, same has not been disclosed as per practical expedient as the duration of the contract is less than one year or right to receive the consideration established on completion of the performance by the company.

B. Significant judgements in the application of this standard

(i) Revenue is recognized by the company when the company satisfies a performance obligation by transferring a promised good or service to its customers. Asset/goods/services are considered to be transferred when the customer obtains control of those asset/goods/services.

(ii) The company considers the terms of the contract and its customary business practices to determine the transaction price. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (for example, GST etc.).

(iii) The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. Any further adjustment will be made by raising debit/credit notes on the customer. While determining the transaction price effects of variable consideration, constraining estimates of variable consideration, the existence of a significant financing component in the contract, non-cash consideration and consideration payable to a customer is also considered.

(iv) Certain adjustments have been made during the year in contract value which is not significant keeping in view the amount involved.

C. Assets Recognised from costs to obtain or fulfill a contact with a customer

Being a trading company, costs incurred by the company are fixed in nature with no significant incremental cost to obtain or fulfill a contract with a customer and same is charged to profit and loss as a practical expedient.

50. Other Statutory Information

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

b) The Company do not have any transactions with companies struck off

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

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

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

• 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

• Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

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

• -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

• -Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

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

h) The company is not in contravention with the number of layers prescribed under section 2(87) of the Act

i) The Company has not entered into any Scheme of Arrangements that has been approved by the Competent Authority in terms of sections 230 to 237 of the Act

j) The company has not been declared wilful defaulter by any bank or financial institution or other lender

51. The accounts of certain trade receivables, trade payables, short and long term loans and advances, other noncurrent and current Assets are subject to confirmation / reconciliation and adjustment, if any. The Management does not expect any material difference affecting the current year’s financial statements.

In the opinion of the management, the assets other than property plant and equipment, intangible assets and noncurrent investments are expected to realize at the amount at which they are stated, if realized in the ordinary course of business and provision for all known liabilities have been adequately made in the books of accounts.

52. The company has made certain changes in the Accounting Policies during the year as under:

(i) Accounting policy no. 2.4 i) “Revenue from sale of goods is measured at fair value of the consideration received or receivable, net of returns and allowances, trade discount and volume rebates. Revenue is recognized when the company satisfies a performance obligation by transferring the promised goods or services to a customer and the customer obtains control of the same and it is probable that the company will collect the consideration to which it is entitled in exchange for the goods or services that is transferred to the customer.” has been changed to:

“Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration on account of various discounts and schemes offered by the company as part of the contract."

(ii) Accounting policy no.2.21 i) “including any directly attributable transaction costs” ” has been changed to add the wording “plus in case of financial assets not recorded at FVTPL, transaction cost attributable to the acquisition of financial asset."

(iii) Accounting policy no.2.21 i) c) “directly attributable transaction costs” has been changed to add the wording “in case of financial assets not recorded at FVTPL, transaction cost attributable to the acquisition of financial asset, however trade receivable that do not contain a significant financing component are measured at transaction price"

The above changes have no financial impact on the financials of the company excepts as stated above.

53. Whole time Directors are allowed usage of staff cars for private use up to 1,000 km per month on payment of ' 2000 per month in accordance with guidelines issued by Department of Public Enterprise (GOI).

54. Accounting policies and notes attached form an integral part of the financial statements.

55. Amount in the financial statements are presented in ' crore (upto two decimals) except for per share data and as otherwise stated. Certain small amounts may not appear in financial statements due to rounding off in ' in crore. Previous year’s figures have been regrouped/rearranged wherever considered necessary.

56. Approval of financial statements

The financial statements were approved by the board of directors and authorised for issue on 30.05.2023.