1.11 Provisions & Contingent Liabilities:

a. A provision is recognized if, as a result of a past event,
the Company has a present legal obligation that
can be estimated reliably, and it is probable that an
outflow of economic benefits will be required to settle
the obligation. Provisions are determined by the best
estimate of the outflow of economic benefits required

to settle the obligation at the reporting date. Where
no reliable estimate can be made, a disclosure is
made as contingent liability. Contingent assets are not
recognized.

b. Where there are a number of similar obligations, the
likelihood that an outflow will be required in settlement
is determined by considering the class of obligations as
a whole. A provision is recognised even if the likelihood
of an outflow with respect to any one item included in
the same class of obligations may be small.

c. Provisions are measured at the present value of
management's best estimate of the expenditure
required to settle the present obligation at the end
of the reporting period. The discount rate used to
determine the present value is a pre-tax rate that
reflects current market assessments of the time
value of money and the risks specific to the liability. The
increase in the provision due to the passage of time
is recognised as interest expense.The measurement
of provision for restructuring includes only direct
expenditures arising from the restructuring, which are
both necessarily entailed by the restructuring and not
associated with the ongoing activities of the entity.

1.12 Income Tax :

i. The income tax expense or credit for the period is the
tax payable on the current period's taxable income
based on the applicable income tax rate for each
jurisdiction adjusted by changes in deferred tax assets
and liabilities attributable to temporary differences
and to unused tax losses.

ii. The current income tax charge is calculated on the
basis of the tax laws enacted or substantively enacted
at the end of the reporting period. Management
periodically evaluates positions taken in tax returns
with respect to situations in which applicable tax
regulation is subject to interpretation.

iii. Current income tax expense comprises taxes on
income from operations in India and is determined in
accordance with the provisions of the Income Tax Act,
1961.

iv. Deferred income tax is provided in full, using the
balance sheet approach, on temporary differences
arising between the tax bases of assets and liabilities
and their carrying amounts in the financial statements.
However, deferred tax liabilities are not recognised
if they arise from the initial recognition of goodwill.

Deferred income tax is also not accounted for if it
arises from initial recognition of an asset or liability in a
transaction other than a business combination that at
the time of the transaction affects neither accounting
profit nor taxable profit (tax loss). Deferred income
tax is determined using tax rates (and laws) that have
been enacted or substantially enacted by the end of
the reporting period and are expected to apply when
the related deferred income tax asset is realised or
the deferred income tax liability is settled.

v. Deferred tax assets are recognised for all deductible
temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available
to utilise those temporary differences and losses.

vi. Deferred tax assets and liabilities are set off when
there is a legally enforceable right to offset current
tax assets and liabilities and when the deferred
tax balances relate to the same taxation authority.
Current tax assets and tax liabilities are set off where
the entity has a legally enforceable right to offset and
intends either to settle on a net basis, or to realise the
asset and settle the liability simultaneously.

vii. Current and deferred tax is recognised in profit
or loss, except to the extent that it relates to items
recognised in other comprehensive income or directly
in equity. In this case, the tax is also recognised in
other comprehensive income or directly in equity,
respectively.

1.13 Revenue Recognition :

i. Revenue is measured at fair value of consideration
received or receivable. Amount disclosed as revenue
are net of returns, trade allowances, rebates, Goods
and services tax and amounts collected on behalf of
third parties.

ii. It recognises revenue when the amount of revenue
can be reliably measured and it is probable that future
economic benefits will flow to the company.

iii. The company adopts the following criteria for
recognizing the revenue:-

a) Sale of goods is recognized when all the significant
risks and rewards of ownership of the goods have
been passed to the buyer, usually on delivery of the
goods.

b) Sale of stock in trade is recognized when the goods
are dispatched to the customers.

1.14 Purchases :

Purchase of materials is recognized on dispatch of
such goods by the suppliers based on certainty of
receipt of such goods at the factory. It is shown net of
GST credit wherever applicable.

1.15 Employee Benefits :

(i) Short-term employee benefit obligations

Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled
wholly within 12 months after the end of the period in
which the employees render the related service are
recognised in respect of employees' services up to
the end of the reporting period and are measured at
the amounts expected to be paid when the liabilities
are settled. The liabilities are presented as current
employee benefit obligations in the balance sheet.

All Short term employee benefits such as salaries,
incentives, special award, medical benefits which
fall due within 12 months of the period in which the
employee renders related services, which entitles
him to avail such benefits and non accumulating
compensated absences (like maternity leave and sick
leave) are recognized on an undiscounted basis and
charged to Statement of Profit and loss.

(ii) Post-employment obligations

The entity operates the following post-employment
schemes:

(a) defined benefit plans such as gratuity,Superannuation;
and

(b) defined contribution plans such as provident fund.
Provident fund obligations

Contribution to the provident fund, which is a defined
contribution plan, made to the Regional Provident
Fund Commissioner is charged to the Statement of
Profit and loss on accrual basis.

Gratuity and Superannuation obligations

The company has not made any provision with
regard to gratuity and superannuation benefits on
actuarial basis in compliance to the provisions laid
in accounting standard on accounting for retirement
benefits. However the company has taken a group
gratuity policy with life insurance corporation of india
in respect of retirement benefits of its employees,the
annual premium of whihc is charged to the Statement
of Profit and Loss.

(iii) Bonus plans

The entity recognises a liability and an expense for
bonus. It recognises a provision where contractually
obliged or where there is a past practice that has
created a constructive obligation.

1.16 Borrowing Costs :

a) General and specific borrowing costs that are
directly attributable to the acquisition, construction
or production of a qualifying asset are capitalised
during the period of time that is required to complete
and prepare the asset for its intended use or sale.
Qualifying assets are assets that necessarily take
a substantial period of time to get ready for their
intended use or sale.

b) Other borrowing costs are expensed in the period in
which they are incurred.

1.17 Segment Reporting :

(i) The Company is primarily engaged in the business of
manufacturing of steel.

(ii) The company's products are dispatched from plants
located at Rajgangpur (Odisha) to various parts of the
country and considering the customer base which is
wide spread all over the country, no such geographical
differentiation can be done for presenting the
information.

1.18 Reserves:

(i) General Reserve: Created by transferring a portion of
the net profit to meet future obligations or expansions.

(ii) Securities Premium: Amount received in excess of the
face value of shares issued. This reserve can be utilized
in accordance with the provisions of the Companies
Act, 2013.

(iii) Capital Reserve: Represents the surplus arising from
capital transactions such as forfeiture of shares,
revaluation of assets,subsidies and gains on sale of
fixed assets.

(iv) Reserve for Investments at Fair Value through OCI:
Comprises the cumulative gains and losses arising
from changes in the fair value of equity instruments
designated through OCI.

(v) Retained Earnings: Accumulated profits after tax,
adjusted for dividends, transfers to reserves, and
other appropriations.

1.19 Rounding of Amounts :

All amounts disclosed in the financial statements
and notes have been rounded off to the nearest
lakhs as per the requirement of Schedule III, unless
otherwise stated. Also the figures of additions and/or
substractions have been rounded up/off autometically
for reporting at INR in lakhs.

NOTE - 1B: SIGNIFICANT ACCOUNTING ESTIMATES &
JUDGEMENTS

The preparation of the Company's financial statements
requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities.
These include recognition and measurement of financial
instruments, estimates of useful lives and residual value
of Property, Plant and Equipment and Intangible Assets,
valuation of inventories, measurement of recoverable
amounts of cash-generating units, measurement of
employee benefits, actuarial assumptions, provisions etc.

Uncertainty about these assumptions and estimates could
result in outcomes that require a material adjustment
to the carrying amount of assets or liabilities affected in
future periods. The Company continually evaluates these
estimates and assumptions based on the most recently
available information. Revisions to accounting estimates are
recognized prospectively in the Statement of Profit and Loss
in the period in which the estimates are revised and in any
future periods affected.

A. JUDGEMENTS

In the process of applying the company's accounting policies,
management has made the following judgements, which
have the significant effect on the amounts recognised in the
financial statements:

Materiality

Ind AS requires assessment of materiality by the Company
for accounting and disclosure of various transactions

in the financial statements. Accordingly, the Company
assesses materiality limits for various items for accounting
and disclosures and follows on a consistent basis. Overall
materiality is also assessed based on various financial
parameters such as Gross Block of assets, Net Block of
Assets, Total Assets, Revenue and Profit Before Tax. The
materiality limits are reviewed and approved by the Board.

Contingencies

Contingent liabilities may arise from the ordinary course
of business in relation to claims against the Company,
including legal, contractor, land access and other claims.
By their nature, contingencies will be resolved only when
one or more uncertain future events occur or fail to occur.
The assessment of the existence, and potential quantum, of
contingencies inherently involves the exercise of significant
judgement and the use of estimates regarding the outcome
of future events.

B. ESTIMATES AND ASSUMPTIONS

The key assumptions concerning the future and other
key sources of estimation at the reporting date, that have
a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next
financial year, are described below.

Existing circumstances and assumptions about future
developments, however, may change due to market changes
or circumstances arising that are beyond the control of the
company. Such changes are reflected in the assumptions
when they occur.

Income Taxes

The Company uses estimates and judgements based on the
relevant facts, circumstances, present and past experience,
rulings, and new pronouncements while determining the
provision for income tax. A deferred tax asset is recognised
to the extent that it is probable that future taxable profit
will be available against which the deductible temporary
differences and tax losses can be utilised.

Level 1 : This hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments
and mutual funds that have quoted price. The fair value of all equity instruments(including bonds) which are traded in the
stock exchange is valued using the closing price as at the reporting period.

Level 2 : Fair value of financial instruments that are not traded in an active market (for example, traded bonds, over the
counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely
as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument is observable,
the insturment is included in level 2.

Level 3 : If one or more of the significant inputs is not based on observable data, the instrument is included in level 3. This
is the case for unlisted equity securities, contigent consideration and indemnification assets.

(iii) As per Ind AS 107 “Financial Instrument: Disclosure", fair value disclosures are not required when the carrying
amounts are reasonably approximate to the fair value. Accordingly fair value disclosures have not been made for the
following financial instruments:-

1. Trade receivables

2. Cash and cash Equivalent

3. Loans and advances

4. Borrowings

5. Trade Payables

6. Capital Creditors

7. Other payables

Note -34 : Financial risk management

The company's few portion of activities are exposed to variety of financial risks i.e. market risk, credit risk and liquidity
risk. The company's primary focus is to foresee the unpredictability of financial markets and seek to minimize potential
adverse effects on its financial performance. The company's financial instruments (excluding receivables from related
parties) are influenced mainly by the individual characteristics of each customer. The company's exposure to credit risk is
the concentration of risk from the top few customers and the demographics of the customers.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact
of hedge accounting in the financial statements

(A) Credit risk

Credit risk refers to the risk of default on its obligation by the counter party resulting in a financial loss. The maximum
exposure to the credit risk at the reporting date is primarily trade receivables from customers other than government
entities .These Trade receivables are typically unsecured and are derived from revenue earned from domestic and foreign
customers. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the
credit worthiness of customers to which the company grants credit terms in the normal course of business. On account
of adoption of Ind AS 109, the company uses expected credit loss model to assess impairment loss or gain. the company
uses a matrix to compute the expected credit loss allowance for trade receivable .

Credit risk management

Credit risk is managed on instrument basis.For Banks and financial institutions ,only high rated banks /institutions are
accepted.For other financial instruments, the company assesses and maintains an internal credit rating system. The
finance function consists of a separate team who assesses and maintain internal credit rating system. Internal credit
rating is performed on a company level basis for each class of financial instrument with different characterstics.

VL1 : High-quality assets, negligible credit risk

VL2 : Quality assets, low credit risk

VL3 : Standard assets, moderate credit risk

VL4 : Sub-standard assets, relatively high credit risk

VL5 : Low-quality assets, very high credit risk

VL6 : Doubt full assets, credit-impaired

The company consideres the probability of default upon initial recognition of asset and whether there has been a
significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a
significant increase in credit risk the company compares the risk of a default occuring on the asset as at the reporting
date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forward¬
looking information. Especially the following indicators are incorporated:

1. Internal credit rating

2. External credit rating (as far as available)

3. Actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause
a significant change to the borrower's ability to meet the obligation.

4. Actual or expected significant changes in the operating results of the borrower.

5. Significant increase in credit risk on other financial instruments of the same borrower

6. Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees
or credit enhancements.

7. Significant changes in the expected performance and behaviour of the borrower, including changes in the payment
status of borrowers in the group and changes in the operating results of the borrower.

8. Macro economic information (such as regulatory changes, market interest rate or growth rate) is incorporated as part
of the internal rating model.

In general , it is presumed that credit risk has significantly increased since intial recognition if the payments are more than
30 days past due.

A default on a financial asset is when the counterparty fails to make contractual payment within 180 days of when they
fall due. This definition of default is determined by considering the business environment in which entity operates and
other-economic factors.

(B) Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of
funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market
positions. Due to the dynamic nature of the underlying businesses, the company treasury maintains flexibility in funding
by maintaining available under committed credit lines.

Management monitors rolling forecasts of the company's liquidity position (comprising the undrawn borrowing facilities
below) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out at local level in
accordance with practice and limits set by the company. These limits vary by locations to take into account the liquidity
of the market in which the entity operates. In addition, the company's liquidity management policy involves, projecting
cash flows in major currencies,considering the level of liquid assets necessary , monitoring balance sheet liquidity ratios
against internal and external regulatory requirements and maintaining debt financing plans.

(ii) Maturities of financial liabilities

The tables below analyse the group's financial liabilities into relevant maturity groupings based on their contractual
maturities for :

1. All non-derivative financial liabilities and

2. Net and gross settled derivative financial intruments for which the contractual maturities are essential for an
understanding of the timing of cash flows.

The company is not an active investor in equity market. It continues to hold certain investments in equity for long term
value accretion which are accorddingly measured at fair value through other comprehensive income. Accordingly,fair
value fluctations arisng form market volatitlity is recognised in other comprehensive income.

(i) Foreign Currency Risk

The company's exposure to foreign currency risk & Derivative financial Instruments as on 31st March, 2025

The Company don't have foreign currency exposure hence no foreign exchange forward contracts are required to hold
and to mitigate the risk of foreign exchange fluctuation.

(ii) Cash flow and fair value interest rate risk

The company's main interest rate risk arises from long term borrowings with variable rates, which exposes the company
to cash flow interest rate risk. Group policy is to maintain most of its borrowings at fixed and variable rate using interest
rate swaps to achieve this when necessary.

The company's exposure to equity securities price risk arises from investments held by the company and classified in the
balance sheet either as fair value through OCI or at fair value through profit or loss .

Profit for the period would increase/ decrease as a result of gains/losses on equity securities classified as at fair value
through profit or loss. Other components of equity would increase/decrease as a result of gains/losses on equity securities
classified as fair value through other comprehensive income.

Note-35 : Capital Management

Risk management

The company's objectives when managing capital are to:

(a) safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders
and benefits for other stakeholders, and

(b) maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to shareholders,
return on capital to shareholders or issue new shares.The company monitors capital using gearing ratio, which is net debt
divided by total Equity. Net debt comprises of long term and short term borrowings less cash and bank balances. Equity
includes equity share capital and reserves that are managed as capital.For relevant ratios please refer Note- 23 financial
ratios.

(iii) Use of Funds raised and statements submitted with Banks or Financial Institution

During the year under audit, the Company did not raise any funds from banks for working capital requirements (Previous
Year: INR 1,600 Lakhs). Additionally, no funds were raised from any Non-Banking Financial Company (NBFC) for the
acquisition of vehicles and heavy earth-moving equipment (Previous Year: INR 77.72 Lakhs). The funds disbursed in the
previous year were utilized for their intended purposes.

The Company has borrowing from banks or financial institutions on the basis of security of current assets,it shall confirm
that the quarterly returns or statements of current assets filed by the company with banks or financial institutions are in
agreement with the books of accounts.

Note -38 :

As per the requirements of Ind AS, the company has implemented / adopted the following policies and procedures for
accounting:

i Componentisation

As per prevailing practice, company compontises fixed assets as detailed in the Invoice. It does not have a separate
componetisation policy. Accordingly, components identified ( as mentioned above ) are also depreciated based on the
useful lives prescribed under Schedule-II ( of the Companies Act. ) for the main asset.

The company is in the process of identification of the major components significant to the total cost of the asset accordingly
necessary requirements to be complied.

ii Stores and Spares

The company on purchases of stores and spares,if it relates to an item of PPE, the same are capitalised on the date
of issue, and which are issued for revenue expenditure purpose, are charged to Profit & Loss Account on the date of
consumption.

Note -39 : Expected Credit Loss

On the basis of historical information and findings from analysis of the trade receivables recovery pattern, it is expected
that the trade receivables within three years are realizable, not doubtful. Hence the expected credit loss is calculated
on the trade receivable falling under the age group of more than 3 years. For this purpose, an expected credit loss rate
is taken into account considering the historical credit loss experience and is adjusted for forward-looking information.

Note -41 : Leases

Effective from April 01,2019, the company has applied Ind AS 116 ''Leases''. The standard is applied prospectively and the
cumulative effect of applying this standard is recognised. The adoption of Ind AS 116 did not have any significant impact
for the company.

Note -42 : Leasing Out of a Unit

The company has leased out, one of its undertaking having a sponge iron manufacturing facility situated in Bellary in the
state of Karnataka, from the 1st day of December, 2022 On monthly rental. No other consideration is charged or received
during the leasing process.

Note -43 : Corporate Social Responsibility (CSR) Activity

As per Section 135 of the Companies Act,2013 , a company, meeting the applicability threshold, need to spend at least 2%
of its average net profit for the immediately preceeding 3 financial years on corporate social responsibility (CSR) activities.
The areas for CSR activities are promoting education, animal welfare , healthcare,promoting Sports,drinking & sanitation
and for rural development projects. A CSR committee has been performed by the company as per Act. The funds were
primarily allocated to a corpus and utilised throughout the year on these activities which are specified in Schedule VII of
the Companies Act, 2013 :

Note -44

Previous year figures have been regrouped and/or rearranged wherever necessary, confirming to current year. Figures in
bracket represent previous year figure.

For Das Pattnaik & Co For and on behalf of the Board

Chartered Accountants Scan Steels Limited

F. Regd. No.321097E

Sd/- Sd/- Sd/-

Debashis Pattnaik Ankur Madaan Praveen Kumar Patro

Partner Director Director

M.No.316339 DIN: - 07002199 DIN: - 02469361

Sd/- Sd/-

17-May-2025 Prabir Kumar Das Kalyan Kiran Mishra

Bhubaneswar Company Secretary Chief Financial Officer