All Freehold buildings are under attachment by the order of DRT , Mumbai.

The CWIP is cost booked for Construction of Corporate Office Building in New Town , Kolkata which is mortaged to SBI against a loan for this purpose.

At the time of implementation and adoption of IndAS w.e.f 1st April, 2015 in terms of IndAS 101 , the Net Block of Assets was considered as Gross Block treating Accumalated Depreciation on that date as "Nil" . Depreciation has been charged since in terms of Companies Act 2013. Hence , the Accumulated Depreciation represents cummulative figures since 1st April, 2015 only. Due to this , there are differences in the figure of Gross Block and Accumulated Depreciation between the Fixed Assets schedule as above and Fixed Assets Register . However the Net Block figures are in complete agreement with Fixed assets Register.

Trade Receivables include an amount of ' 1478.20millions( prev year ' 1478.20 millions) on account of exports of Gold Jewelleries undertaken by the Company during the year 2008-09. The said Receivables were purchased by Standard Chartered Bank (SCB) under a Receivable Purchase Agreement . In terms of the said Agreement, SCB would purchase the bills raised by MSTC on the foreign buyers on account of the exports made to such buyers and pay off MSTC 95% of the bill amount and the foreign buyers would be making payments against the bills directly to SCB on the respective due dates. The said export transactions for the Company were also insured by SCB along with MSTC as co-insured, with ICICI Lombard General Insurance Company. On non-receipt of the proceeds of the bills on the due dates from the foreign buyers, SCB claimed the amounts from the Insurance Company, who, however, wrongfully repudiated the claim of SCB. On such repudiation, SCB unilaterally converted the receivables purchased by it from MSTC into debts of MSTC with interest and filed the case being Original Application in the Debt Recovery Tribunal, Mumbai. MSTC had been and is contesting the claims of SCB before various forums including before the Hon'ble Bombay High Court , the DRT and DRAT, Mumbai including the Misc. Appeal filed by MSTC against an interim Order dated 16 th September 2017 passed by the DRT, Mumbai against MSTC .In case appeal is heard by DRAT then MSTC has to make a pre deposit with DRAT, as per the provisions of relevant statute. SCB had filed a Summary Suit against ICICI Lombard for the recovery of the unrealised debts under the insurance policy , before the Bombay High Court which is pending. Pending final disposal of such cases including the Misc. Appeal filed by MSTC before the DRAT, Mumbai challenging the validity of the Order dated 16 th September 2017 passed by the DRT, Mumbai, the disputed claim of SCB against MSTC has been shown as Unsecured Borrowings (vide note no 20 )and Trade Receivables, without adjustments .

Trade receivables are generally secured either by way of stocks pledged by the customers with the Company or Bank Guarantees . In case there is a significant depletion in realizable value of such pledged stock against the book value of the corresponding receivables, the differential amount has been shown under 'Unsecured'.Further 15 Nos. of Bank Guarantees (BG) amounting to ' 311.53 Millions submitted by a customer was invoked by the Company . The Customer has approached Honble High Court of Andhra Pradesh with a prayer interlia for stay on invocation. The Honble High Court had initially granted interim stay. However, upon a prayer from the company. the Honble Court in a subsequent hearing has ordered the Customer for extending the BGs which were due for expiry. The Customer has since complied with. As on date all the BGs are valid.

The Company has only one class of ordinary shares ('Equity Shares') having a par value of ?10 each. Each holder of ordinary shares ('Equity Shareholders') is entitled to one vote per share and are entitled to dividend and to participate in surplus, if any, in the event of winding up.

13(a)(iii) : 88,00,000 bonus shares have been issued during F.Y 2016-17 in the ratio of 1:1 13(a)(iv) : 1,76,00,000 bonus shares have been issued during F.Y 2017-18 in the ratio of 1:1 13(a)(v) : 3,52,00,000 bonus shares have been issued during F.Y 2018-19 in the ratio of 1:1 13(a)(vi) : Details of shareholders holding more than 5% of the company.

a) Loan from Indian Overseas Bank (IOB) amounting to ?13.8 Millions : (lying since 19.9.2011)This amount represents legal fees paid by the bank in defending their claims to which the Company has lodged its protest with the Bank. MSTC has filed a case in Hon'ble High Court of Calcutta against IOB for ? 365.6 Millions (which includes ?279.8 Millions towards debit of LC value & ' 85.8 Millions as debit towards legal expenses).

b) The above amount represents ' 1,436.20 million (Previous year ' 1,436.20 million) towards payment made by Standard Chartered Bank (SCB), after purchase of export bills of MSTC raised on foreign buyers against export of Gold Jewelleries to the buyers during 2008-09, under a Receivable Purchase Agreement. Under the said Agreement, SCB paid 95% of the value of export bills to MSTC and the foreign buyers on whom the bills were raised by MSTC would be paying against the bills directly to SCB on respective due dates mentioned in the bills. Payment failures, if any from the foreign buyers against the bills raised by MSTC was covered by SCB through an insurance Policy taken from ICICI Lombard General Insurance Company with MSTC as co-insured. On non receipt of the proceeds from the foreign buyers against the bills, SCB submitted claims with the Insurance Company, who, however, wrongfully repudiated the claim of SCB. Thereafter, SCB converted the receivables purchased from MSTC under the Receivables Purchase Agreement into loans / debts as if owing by MSTC, claimed the amount from MSTC with interest and filed a case, being the Original Application in the Debt Recovery Tribunal, Mumbai(DRT) in the year 2012, which MSTC has denied and disputed. The validity of the claim of SCB in such proceedings including against an Interim Order passed by the DRT, Mumbai on 16 th September, 2017 have been challenged by MSTC by filing a Misc. Appeal before the Debt Recovery Appellate Tribunal, Mumbai, which are currently pending.In case appeal is heard by DRAT then MSTC has to make a pre deposit with DRAT, as per the provisions of relevant statute. Other

proceedings challenging the claim of SCB are also pending before various forums including the Hon'ble High Court, Bombay and in the Civil Court at Alipore, Kolkata initiated by MSTC both against SCB and the Insurance Company. Subsequently, SCB also filed a Summary Suit in late 2012 in the Hon'ble Bombay High Court against ICICI Lombard claiming the same amount under the Policy from ICICI Lombard on account of the repudiation of the claim of SCB by ICICI Lombard. The claim of SCB is contingent upon the outcome of the legal cases. Pending final disposal of all such court cases where the matters are currently pending, MSTC has disclosed the amount simultaneously as Unsecured Borrowings and as Trade Receivables (vide Note No. - 8.2) .

(a) During the year, an amount of ' 51.41 Million ( Previous Year ' 48.12 Million) was collected towards E-auction Registration. Out of total collection of current year, an amount of ' 41.13 Million (Previous Year ' 38.50 Million) has been kept in liabilities to be distributed in subsequent four years, as per accounting policy since related registration is valid for life long. Accumulated undistributed balance standing as on 31st March, 2021 is ' 104.38 Million ( Previous Year ' 103.07 Million). Balance amount for which registration is valid upto one year is accounted for as income during the current period.

(b) Other Operating Revenues also include Interest from customers ' 345.04 Million in current year (Previous Year ' 586.73 Million) .

( c) Tax deducted at source on Service Charge and Interest income amounts to ' 99.79 Million in current year (Previous Year '126.67 Million ) .

Donation represents the money paid to PM CARES Fund.

Bad Debt written off at (ac) above represents unrealised trade receivable under cash and carry model of business with equivalent amount held in Provision for Doubtfull Debts and Advances which has been written back and is part of Note 26(d).The above write off is as per approval of Board of Directors in Meeting no 303 held on 11th February, 2021.

Allowances for Bad and Doubtful Advances are provision made during the year as per Provisioning Policy on Trade Receivable implemented from third Quarter Accounts ending 31st December, 2019.

The tax rate used for the year 2020-21 and 2019-20 in the reconciliations above is the corporate tax rate of 34.944% (30% plus surcharge @ 12% and education cess @ 4 %) payable by corporate entities in India on taxable profits under the Indian tax law. For Deferred Tax calculation of financial year 2020-21, income tax rate of 34.944% (30% plus surcharge @ 12% and education cess @ 4 %).

However the company has a MAT credit of '309.09 Millions (Previous Year - ' 304.16 Million) for which company is entitled to credit in next asseessment years against tax payable on income for those years. The Company feels that it will earn sufficient profit in coming years. Accordingly deferred tax assets has been recognised for MAT credit entitlement. However no Deffered tax asset has been recognised on the provision for Doubtful Debts of ' 695.05 Millions ( Prev year ' 339.91 Millions) as a conservative approach.

During the year, an amount of '6.85 Million (Previous Year '10.25 Million) has been deposited under Direct Tax Vivad Se Vishwas Act, 2020. Further an amount of '1.07 Million has also been deposited in FY 2021-22 under said scheme. Tax Expense of ' 9.53 Million (Previous Year ' 54.30 Million) has been booked against Income Tax cases settled/deposited under the said scheme which comprised 5 (five) assessment years.

The company did not adopt new Income Tax Rate specified under section 115BAA and continued to apply normal Income Tax Rate.

38 . Disclosures on Financial instruments

"This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognized, in respect of each class of financial asset, financial liability and equity instrument are disclosed in notes to the standalone financial statements."

(1) Categories of Financial Instruments

The following table presents carrying amount and fair value of each category of financial assets and liabilities as at the year end. The Fair value is equivalent to the Carrying value.

(2) Capital Management

The Company manages its capital to ensure that the Company is able to continue as going concern while maximising the return to shareholders through the optimisation of the debt and equity balance.The Company is not subject to any externally imposed capital requirements.

(3) Financial risk management objectives

The Company's Corporate Treasury function provides services to the business, co-ordinates access to domestic and international financial markets , monitors and manages the fianancial risks relating to the operations of the company . These risks include market risk (like- currency risk, interest rate risk and other price risk), credit risk and liquidity risk. Compliance with policies and exposure limits is reviewed by the internal auditors on a continuous basis. The Company does not enter into or trade of financial instruments, including derivative financial instruments, for speculative purposes.

(a) Market Risk

The Company's activities exposes it ,primarily to the financial risks of changes in foreign currency exchange rates . On a case to case basis, the Company enters into Forward foreign exchange contracts to hedge the exchange rate risk.

(a) Interest rate risk management

At present company has converted maximum of its loan to MCLR based, hence the rate is firm for a contract period usually for a year.

(b) Foreign Currency risk management

The foreign currency exposure of the Company is due to import liabilities. Transactions are on back to back basis with customers . The gain and loss if any is passed on to the customers. Some times forward cover is taken to hedge the related foreign currency exposure in terms of discussion with the customers.Wherever foreign exchange fluctuations are to be borne by the customers as per agreement with them, foreign exchange gain/ loss are not recognized in the books of the Company.

(b) Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in fianacial loss to the Company . The Company has adopted a policy of only dealing with creditworthy counterparties , where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company only transact with entities that are rated by agencies where available and if not available , the company uses other publicly available financial information and its own past records to rate its major customers. The Company's exposure and the credit ratings of its counterparties are monitored and the aggregated value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the Senior management committee.

(c) Liquidity risk management

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows,and by matching the maturity profiles of financial assets and liablities.

The table below provides details regarding the contractual undiscounted cash obligations of financial liabilities including estimated interest payments for the period 31st March 2021, as at 31st March , 2020 .

1. Provident Fund

12% of Basic pay and dearness allowance contributed to the providend fund trust by the company.

2. Pension

In terms of Ministry of Steel Directives Pension scheme for the employees of MSTC has been formulated , under Defined Contribution Plan. The company contributes annually to LIC of India through a trust. LIC will provide the pension to the employees from the corpus created on account of employees, by way of contribution from MSTC (The Employer)."

Defined Benefits Plans 1. Gratuity :

"The Gratuity is payable on separation at the rate of 15 days pay for each completed year of service to eligible employees

who render continuous service for a minimum period of 5 years.The Gratuity is calculated at the rate of one month's wages last drawn by the employee for every completed year of service in excess of 30 years in case of non executives only. The maximum amount of Gratuity payable to employee is ' 2 Millions.In case of non executive join on or before 1st July, 2014, the gratuity is celing less.The Gratuity is funded with LIC of India.The Company contributes in the fund every year as premium on the basis of demand raised by LIC of India.

!. Post Retirement Medical Benefit:

The Post Retirement Medical Benefit is a medical benefit to the superannuated employees and their spouse. The members will be covered through Mediclaim Insurance of the Insurance Company. This is available to superannuated employees at any hospital under the Mediclaim Insurance Policy.In addition to this expenses incurred in domicilliary treatment is also reimbursed as per prescribed ceiling.The benefits are funded through a separate trust formed for this purpose.The Company provides the corpus for this. Deficit, if any, is being compensated by the company.

42 . Balances of Trade Receivables, Trade Payables and Advances includes balances subject to confirmation/reconcilliation and

consequential adjustment, if any. Reconcilliations are carried out on on-going basis. Provisions,wherever considered necessary, have been made.

43 .The current assets of the company are under charge with consortium bank against sanction of credit facilities to the

company.

44 .The Board of Directors of the Company adopted the Financial Statements in 306th Board Meeting held on 25 th June, 2021.

45 .The Board of Directors of the Company in its 306th Meeting held on 25th June, 2021 has proposed a final dividend of ' 4.40

per share in respect of year ending 31st March, 2021 @ 44% on equity share capital which is ' 704.00 Millions as on date. The payment of Dividend is subject to approval of shareholders at Annual General Meeting. If approved it will result in a cash outflow of ' 309.76 Millions.

46 .The figures for the corresponding previous years have been regrouped/reclassified wherever necessary to make them

comparable.