3.15 Provisions, Contingent Liabilities and
Contingent Assets

Provisions and Contingent Liabilities

A Provision is recognised when the Company has
present obligation (legal or constructive) as a result
of a past event and it is probable that an outflow of
resources will be required to settle the obligation
and in respect of which a reliable estimate can be
made. Provisions are discounted to their present
value, where the time value of money is material. All
provisions are reviewed at each reporting date and
adjusted to reflect the current best estimate.

When some or all of the economic benefits required to
settle a provision are expected to be recovered from a
third party, the receivable is recognised as a separate
asset if it is virtually certain that reimbursement will
be received and the amount of the receivable can be
measured reliably.

Contingent liability is a possible obligation arising
from past events and the existence of which will be
confirmed only by the occurrence or non-occurrence
of one or more uncertain future events not wholly
within the control of the Company or a present
obligation that arises from past events but is not
recognised because it is not possible that an outflow
of resources embodying economic benefit will be
required to settle the obligations or reliable estimate
of the amount of the obligations cannot be made.

In cases where the possible outflow of economic
resources as a result of present obligation is
considered improbable or remote, no Provision is
recognised or disclosure is made.

Contingent Assets

Contingent assets usually arise from unplanned
or other unexpected events that give rise to the
possibility of an inflow of economic benefits.
Contingent Assets are not recognised and are
disclosed only where an inflow of economic benefits
is probable.

3.16 Income Taxes

Tax expense recognised in Statement of Profit
and Loss comprises the sum of deferred tax and
current tax except to the extent that the tax relates
to the items that are recognised directly in Other
Comprehensive Income (OCI) or in equity in which
case the related tax is recognised either directly in
OCI or equity accordingly.

Current income tax is measured at the amount
expected to be paid to the tax authorities in
accordance with the Indian Income-tax Act.

The Company offsets current tax assets and current
tax liabilities when the legally enforceable right to
offset exists and they are intended to be settled net
or realised simultaneously.

Deferred income taxes are calculated using the
balance sheet liability method/approach. Deferred
tax liabilities are generally recognised in full for all
taxable temporary differences. Deferred tax assets are
recognised to the extent that it is probable that the
underlying tax loss, unused tax credits or deductible
temporary difference will be utilised against future
taxable income. The carrying amount of deferred tax
assets is reviewed at each balance sheet date and
reduced to the extent that it is no longer probable
that sufficient taxable profit will be available to allow
all or part of the deferred tax asset to be utilised.

Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the year when
the asset is realised or the liability is settled, based
on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.

The Company offsets deferred income tax assets and
liabilities when the legally enforceable right to offset
current tax assets and liabilities exists and they are
intended to be settled or realised simultaneously.

3.17 Financial Instruments

Recognition, initial measurement and de¬
recognition

Financial assets and financial liabilities are recognised
when the Company becomes a party to the contractual
provisions of the instrument and are measured at fair
value on initial recognition. Transaction costs that
are directly attributable to the acquisition or issue
of financial assets and financial liabilities, except for
those which are classified at Fair Value through Profit
& Loss (FVTPL) at inception, are adjusted with the fair
value on initial recognition.

Financial assets are derecognised when the
contractual rights to the cash flows from the
financial asset expires, or has been transferred, and
the Company has transferred all substantial risks
and rewards of ownership. A financial liability (or a
part of financial liability) is derecognised when the
obligation specified in the contract is extinguished or
discharged or cancelled or expires.

Classification and subsequent measurement of
financial assets

For the purpose of subsequent measurement,
financial assets are classified into the following
categories upon initial recognition:

• amortised cost

• financial assets at fair value through profit or loss
(FVTPL)

• financial assets at fair value through other
comprehensive income (FVOCI)

All financial assets except for those at FVTPL are
subject to review for impairment at least at each
reporting date.

Amortised cost

A financial asset is measured at amortised cost using
effective interest rates if the following conditions are
met:

a) the financial asset is held within a business model
whose objective is to hold financial assets in order
to collect contractual cash flows; and

b) the contractual terms of the financial asset give
rise on specified dates to cash flows that are
solely payments of principal and interest on the
principal amount outstanding.

The Company's cash and cash equivalents, trade
receivables and most of other receivables fall into this
category of financial instruments.

Financial assets at FVTPL

Financial assets at FVTPL include financial assets
that either do not meet the criteria for amortised
cost classification or that are equity instruments
held for trading or that meet certain conditions and
are designated at FVTPL upon initial recognition.
All derivative financial instruments also fall into this
category. Assets in this category are measured at fair
value with gains or losses recognised in Statement of
Profit and Loss. The fair values of financial assets in
this category are determined by reference to active
market transactions or using a valuation technique
where no active market exists.

Financial assets at FVOCI

FVTOCI financial assets are either debt instruments
that are managed under hold to collect and sell
business model or are non-trading equity instruments
that are irrevocable designated to this category.

FVTOCI financial assets are measured at fair
value. Gains and losses are recognized in other
comprehensive income, except for interest and
dividend income, impairment losses and foreign
exchange differences on monetary assets, which are
recognized in Statement of Profit and Loss.

Classification and subsequent measurement of
financial liabilities

Financial liabilities are measured subsequently at
amortized cost using the effective interest method,
except for financial liabilities held for trading or
designated at FVTPL, that are carried subsequently at
fair value with gains or losses recognized in Statement
of Profit and Loss. All derivative financial instruments
are accounted for at FVTPL.

Embedded Derivatives

Some hybrid financial liability contracts contain
both derivative and a non-derivative component.
In such cases, the derivative component is termed
as embedded derivative, with a non-derivative
component representing the host financial liability
contract. If the economic characteristics and risks
of embedded derivatives are not closely related to
those of the host contract and the contract itself is
not measured at FVTPL, the embedded derivative is

bifurcated and reported at fair value, with gains and
losses recognised in net gains (losses) on financial
assets/liabilities at fair value through profit or loss
(FVTPL). The host financial liability is accounted for in
accordance with the appropriate Ind AS.

Fair value measurement

The Company classifies the fair value of its financial
instruments in the following hierarchy, based on the
inputs used in their valuation:

i) Level 1: The fair value of financial instruments
quoted in active markets is based on their quoted
closing price at the Balance Sheet date.

ii) Level 2: The fair value of financial instruments that
are not traded in an active market is determined
by using valuation techniques using observable
market data. Such valuation techniques include
discounted cash flows, standard valuation
models based on market parameters for interest
rates, yield curves or foreign exchange rates,
dealer quotes for similar instruments and use of
comparable arm's length transactions.

iii) Level 3: The fair value of financial instruments
that are measured on the basis of entity specific
valuations using inputs that are not based on
observable market data (unobservable inputs).

Impairment of Financial Assets

In accordance with Ind AS 109, the Company applies
Expected Credit Loss (ECL) model for measurement
and recognition of impairment loss for financial
assets measured at amortised cost or at fair value
through other comprehensive income.

ECL is the weighted average difference between all
contractual cash flows that are due to the Company
in accordance with the contract and all the cash flows
that the Company expects to receive.

Trade Receivables

Trade receivables are recognised initially at fair value
based on amounts exchanged and subsequently at
amortised cost less any impairment as per Ind AS 109.

Offsetting of financial instruments

Financial assets and liabilities are offset, with net
amount reported in the balance sheet, only when
there is a legally enforceable right to offset the
recognised amounts and there is an intention to
settle on a net basis or realise the asset and settle the
liability simultaneously. The legally enforceable right
must not be contingent on future events and must
be enforceable both in the normal course of business
and in the event of default, insolvency or bankruptcy
of the counterparty.

3.18 Investments in subsidiaries, joint ventures,
associates and equity Instruments

Investment in subsidiaries, associate and joint
ventures are carried at cost less accumulated
impairment, if any in the Company's standalone
financial statements in accordance with Ind AS- 27,
'Separate Financial Statements'.

Investments in equity instruments, where the
Company has opted to classify such instruments
at fair value through other comprehensive income
(FVTOCI) are measured at fair value through other
comprehensive income. There is no recycling of the
amounts from OCI to P&L, even on sale of investment.
However, the Company may transfer the cumulative
gain or loss within equity. Dividends on such
investments are recognised in profit or loss unless the
dividend clearly represents a recovery of part of the
cost of the investment.

3.19 Segment reporting

Segments are identified based on the manner in
which the Chief Operating Decision Maker ('CODM')
decides about resource allocation and reviews
performance. Segment results that are reported to
the CODM include items directly attributable to a
segment as well as those that can be allocated on
a reasonable basis. Segment capital expenditure is
the total cost incurred during the period to acquire
property and equipment and intangible assets.

The Company has eight operating segments: five
integrated steel plants and three alloy steel plants,
being separate manufacturing units, have been
considered reportable operating segments. In
identifying these operating segments, management
generally considers the Company's separately
identifiable manufacturing operations representing
its main operations.

Each of these operating segments is managed
separately as each has different requirements in terms
of technology, raw material and other resources.
All inter-segment transfers are carried out at arm's
length prices based on prices charged to unrelated
customers in standalone sales of identical goods or
services.

In addition, corporate assets which are not directly
attributable to the business activities of any operating
segment are not allocated to a segment. This primarily
applies to the Company's administrative head office
and mining operations.

There have been no changes from prior periods in the
measurement methods used to determine reported
segment profit or loss.

3.20 Earnings per share

Basic earnings per share is computed by dividing
profit or loss for the year attributable to equity
holders by the weighted average number of shares
outstanding during the year. Partly paid-up shares are
included as fully paid equivalents according to the
fraction paid-up.

Diluted earnings per share is computed using the
weighted average number of shares and dilutive
potential shares except where the result would be
anti-dilutive

3.21 Significant Judgements, Assumptions and
Estimations in applying Accounting Policies

3.21.1 Leases

The Company evaluates if an arrangement qualifies
to be a lease as per the requirements of Ind AS 116.
Identification of a lease requires significant judgment.
The Company uses significant judgement in assessing
the lease term (including anticipated renewals) and
the applicable discount rate.

3.21.2 Close-down and Restoration Obligations

Close-down and restoration costs are normal
consequence of mining or production, and majority
of close-down and restoration expenditure are
incurred in the years following the closure of
mine. Although the ultimate cost to be incurred is
uncertain, the Company estimate their costs based
on current interpretation of scientific and legal data
and existing technology, in addition to assumptions
about probability and future costs.

3.21.3 Recognition of Deferred Tax Assets

The extent to which deferred tax assets can be
recognized is based on an assessment of the
probability of the Company's future taxable income
against which the deferred tax assets can be utilized.
In addition, significant judgement is required in
assessing the impact of any legal or economic limits.

3.21.4 Inventories

The Company estimates the cost of inventories taking
into account the most reliable evidence, such as cost
of materials and overheads considered attributable
to the production of such inventories including actual
cost of production, etc. Management also estimates
the net realisable values of inventories, taking into
account the most reliable evidence available at each
reporting date. Significant technical and commercial
judgements are required to determine the Company's
quality and quantity of inventories. The future
realisation of these inventories may be affected by
future technology or other market-driven changes
that may reduce future selling prices.

3.21.5 Defined Benefit Obligation (DBO)

Employee benefit obligations are measured on
the basis of actuarial assumptions which include
mortality and withdrawal rates as well as assumptions
concerning future developments in discount rates,
medical cost trends, anticipation of future salary
increases and the inflation rate. The Company
considers that the assumptions used to measure its
obligations are appropriate. However, any changes in
these assumptions may have a material impact on the
resulting calculations.

3.21.6 Fair Value Measurements

The Company applies valuation techniques to
determine the fair value of financial instruments
(where active market quotes are not available)
and non-financial assets. This involves developing
estimates and assumptions consistent with the market
participants to price the instrument. The Company's

assumptions are based on observable data as far as
possible, otherwise on the best information available.
Estimated fair values may vary from the actual prices
that would be achieved in an arm's length transaction
at the reporting date.

3.21.7 Provisions and Contingencies

The assessments undertaken in recognising
provisions and contingencies have been made
in accordance with Indian Accounting Standards
(Ind AS) 37, 'Provisions, Contingent Liabilities and
Contingent Assets'. The evaluation of the likelihood of
the contingent events is applied best judgement by
management regarding the probability of exposure
to potential loss.

3.21.8 Mine Closure and Restoration Obligations

Environmental liabilities and Asset Retirement
Obligation (ARO): Estimation of environmental
liabilities and ARO require interpretation of scientific
and legal data, in addition to assumptions about
probability and future costs.

3.21.9 Useful lives of depreciable/ amortisable
assets (tangible and intangible)

Management reviews its estimate of the useful lives
of depreciable/ amortisable assets at each reporting
date, based on the expected utility of the assets.
Uncertainties in these estimates relate to actual
normal wear and tear that may change the utility of
plant and equipment.

3.22 Recent Accounting Pronouncements

Ministry of Corporate Affairs ("MCA") notifies new
standard or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. MCA amended
the Companies (Indian Accounting Standards) Rules,
2015 by issuing the Companies (Indian Accounting
Standards) Amendment Rules, 2024, dtd 12^th August,
2024 applicable from April 1, 2024, and Companies
(Indian Accounting Standards) Second Amendment
Rules, 2024, dtd 9^th September, 2024 applicable from
April 1, 2024 as below:

3.22.1 Ind AS 117 - Insurance Contracts

The amendments introduces a new Accounting
Standard, Ind AS 117 in place of existing Ind AS 104
(Insurance Contracts). This amendment is applicable
mainly to issuers of Insurance contracts and re¬
insurance contracts. The Company does not expect
this amendment to have any significant impact in its
financial statements. This standard was subsequently
withdrawn.

3.22.2 Ind AS 116 - Leases

The amendments related to sale and leaseback
transactions related to right-of-use assets. The
Company does not expect this amendment to have
any significant impact in its financial statements.

(i) Contractual obligations

Refer note 48.1 (A) for disclosure of contractual commitments for the acquisition of property, plant and equipment.

(ii) Land:

(a) Includes 54931.15 acres (61235.48 acres as on 31^st March, 2024) owned/possessed/taken on lease by the Company, in respect of which title/lease
deeds are pending for registration.

(b) Includes 31363.70 acres (32082.45 acres as on 31^st March, 2024) in respect of which title is under dispute.

(c) 5052.34 acres (5052.34 acres as on 31^st March, 2024) transferred/agreed to be transferred or made available for settlement to various Joint
Ventures/Central/ State/ Semi-Government authorities, in respect of which conveyance deeds remain to be executed/registered.

(d) 5963.61 acres (6062.72 acres as on 31^st March, 2024) given on lease to various agencies/employees/ex-employees.

(e) Includes 5030.71 acres (4896.70 acres as on 31^st March, 2024) under unauthorised occupation.

(f) 8516.45 acres (8870.84 acres as on 31^st March, 2024) of land which is not in the actual possession, shown as deemed possession.

(g) '63.33 crore is lying under deposits, in respect of land already acquired ('59.23 crores as on 31^st March, 2024) with the District & Sessions Judge,
Bokaro during the year 2007 towards compensation payable to land losers.

(h) Vide Notification of acquisition in the Gazette of India (Extraordinary) bearing No S.O. 1309(E) dated 08.06.2012 and No. S.O. 2484E dated
13.10.2012, National Highway Authority of India Ltd. (NHAI) had acquired 34.471 acres freehold land. Also notified for acquisition by Government
of Jharkhand vide Gazette notification no. 42 & 43 dated 26^th August, 2009. Matter is subjudice regarding valuation of the said land.

(i) 525.43 acres land includes 500 acres land granted by Government of Maharashtra under occupancy rights subject to restrictions agreed upon
by the company towards payment of unearned increment on the property transfer as per agreed terms.

(j) Includes 5.51 acres freehold land out of 21.13 acres land notified for acquisition by Government of Jharkhand vide Gazette notification no. 42 &
43 dated 26^th August, 2009, are under dispute for which no compensation was fixed in favour of RDCIS-SAIL. The compensation for the balance
freehold land of 15.62 acres amounting to '13.07 crore has been considered in the accounts for the Financial Year ended 31^st March, 2020. Out
of '13.07, provision @50% amounting to '6.53 crore has been created for the year ended 31^st March, 2023 and for balance amount provision has
been created in current year.

(k) '0.06 crore is lying under deposits (in respect of land already acquired) with the District & Sessions Judge, Salem during the year 2013 towards
compensation payable to land losers.

(iii) Other Assets:

(a) Includes 6967 (6536 as on 31^st March, 2024), residential quarters/houses under unauthorised occupation.

(iv) Refer note 48.1 (B) for title deeds not held in the name of Company.

Capital reserve

Capital reserve is created out of the capital profit, it is created out of the profit earned from some specific transactions of capital nature. Capital reserve is
not available for distribution to the shareholders.

Securities premium

Securities premium represents premium received on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.
Bond redemption reserve

The Company is required to create bond redemption reserve as per the provisions of Companies Act, 2013 out of the profits which are available for
distribution of dividends. The reserve is maintained till the redemption of bonds.

Other Comprehensive Income (OCI) reserve

The Company has opted to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes
are accumulated within the FVOCI equity investments reserve within equity. The Company transfers amounts from this reserve to retained earnings when
the relevant equity securities are derecognised.

Borrowings are secured, in respect of respective facilities by way of :

a) Secured by charges ranking pari-passu inter-se, on all the present and future immovable property at Mouje-Wadej of City taluka, District Ahmedabad,
Gujarat and Company's Plant & Machinery, including the land on which it stands, pertaining to IISCO Steel Plant (ISP).

b) Redeemable in 12 equal yearly instalments of '14 crore each starting w.e.f 26^th October, 2014. Instalment payable on 26^th October, 2025 has been
shown in current borrowings under the line item 'current maturities of long term debt'.

c) The soft basis of the loan was drawn in 3 tranches stated as 1(a), 1(b) and 1(c) at an interest rate of 8.75% p.a. The Interest on 1(a) is 0.75% p.a and
balance 8% is towards meeting exchange fluctuation (4%) and pollution control schemes (4%). In case of 1 (b) the Interest 0.75% p.a and balance
8.0% p.a is towards periphery development. Tranche 1(c) has been fully repaid. The principal and interest amount is repayable half yearly. The loan is
guaranteed by Government of India.

d) The loan is repayable by 2030. The principal and interest is paid half yearly, guaranteed by Government of India.

e) Terms of repayment is to be decided by SDF Management Committee.

(f) Secured by charges ranking pari-pasu on the present and future movable plant and machinery of RSP to the extent of loan. The interest rate as on

31.03.2025 is Repo rate 1.00% p.a. i.e. 7.25% (6.25% 1.0%) on the outstanding loan amount. The tenor of the loan is 10 years having moratorium
period of 4 years and repayment period of 6 Years. The loan is payable in 12 half yearly equal instalments after moratorium of 4 years starting from
5^th year onwards upto 10 years. The first instalment is due in April, 2025.

(g) Secured by charges ranking pari-pasu on the present and future movable plant and machinery of BSL to the extent of loan. The interest rate as on

31.03.2025 is Repo rate 0.90% p.a. i.e. 7.15% (6.25% 0.90%) on the outstanding loan amount. The tenor of the loan is 4 years having moratorium
period of 2 and half years and repayment period of 1 and a half years. The loan is repayable in 6 quarterly equal instalments after moratorium of 2
and half years. The first instalment is due on 01.05.2026.

(h) Secured by charges ranking pari-pasu on the present and future movable plant and machinery of BSL to the extent of loan. The interest rate is linked
to 3M T-bill 0.75%, which is reset at the last working day of every quarter. As on 31.03.2025, the rate is 7.09% p.a. (i.e 3M T-bill 6.34% 0.75%). The
tenor of the loan is 4 years having moratorium period of 2 and a half years and repayment period of 1 and a half years. The loan is payable in 6
quarterly equal instalments after moratorium of 2.5 Years . The first instalment is due on 01.05.2026.

(i,j,k,l,m,n) Secured by charges ranking pari-pasu on the present and future movable plant and machinery of BSP to the extent of loan. The interest
rate is linked to1 Year G-Sec {Par-Yield (annualised) spread of 0.59%)}, which is reset at every 3 months from the date of availment of loan. As on
31.03.2025, the rate is 7.13% p.a. {i.e 1 Year G-Sec Par-Yield (annualised) 6.54% 0.59%}. The tenor of the loan is 4 years having moratorium period of
2 and a half years and repayment period of 1 and a half years. The loan is payable in 6 quarterly equal instalments after moratorium of 2.5 Years . The
first instalment is due on 30.06.2027.

(o) Long term borrowings transferred to current borrowings under the line item 'current maturities of long term debts' are shown in the table given
below.

(iv) Valuation process and technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

(a) Fair value of interest swap is determined based on dealer or counterparty quotes for similar instruments

(b) Fair value of forward foreign exchange contract and principal swap is determined using forward rate at balance sheet date.

(c) The carrying value of borrowings bearing variable interest rate are considered to be representative of their fair value.

(d) The carrying value of financial assets and liabilities with maturities less than 12 months are considered to be representative of their fair value.

(e) Fair value of fixed interest rate financial assets and liabilities carried at amortised cost (including lease obligations) is determined by discounting the
cash flows using a discount rate equivalent to market interest rate applicable to similar assets and liabilities as at the balance sheet date.

(v) Unquoted investments:

Fair value estimates of unquoted equity investments are included in level-3 and are based on latest available financial statements of investee Company.
The Company expects no sensitivity in the fair value of investments. For investments in co-operative societies, the Company has determined that
cost is appropriate estimate of fair value, therefore, there have been no changes on account of fair values.

43. FINANCIAL RISK MANAGEMENT (Contd...)

ii) Risk Management

The Company is exposed to various risks in relation to financial instruments. The Company's financial asset and liabilities by category, are summarised
in note 43 (i). The main types of risks are market risk, credit risk and liquidity risk. The Company's risk management is co-ordinated at its headquarters,
in close cooperation with the Board of Directors, and focuses on actively securing the Company's short to medium-term cash flows by minimising
the exposure to volatile financial markets. Long-term financial investments are managed to generate lasting returns. The Company does not actively
engage in the trading of financial assets for speculative purposes nor does it write options. The most significant financial risks to which the Company
is exposed are described below.

A) Credit risk

Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company is exposed to this risk for various financial
instruments, for example by granting loans and receivables to customers, placing deposits, etc. The Company's maximum exposure to credit risk is
limited to the carrying amount of following types financial assets.

- Cash and cash equivalents

- Derivative financial instruments

- Trade receivables

- Other financial assets measured at amortized cost

The Company continuously monitors defaults of customers and other counterparties, identified either individually or by the Company, and
incorporates this information into its credit risk controls. Where available at reasonable cost, external credit ratings and/or reports on customers and
other counterparties are obtained and used. The Company's policy is to deal only with creditworthy counterparties.

a) Credit risk management
Cash and cash equivalent

Credit risk related to cash and cash equivalents is managed by only accepting highly rated banks and diversifying bank deposits and accounts in
different banks across the country.

Derivative financial instruments

Credit risk related to derivative financial instruments is also managed by only entering into such arrangement with highly rated banks or financial
institutions as counterparties. The company diversifies its holdings with multiple counterparties.

Trade receivables

Credit risk related to trade receivables are mitigated by taking bank guarantees from customers where credit risk is high. The Company closely
monitors the credit-worthiness of the debtors and only sells goods to credit-worthy parties. The Company's internal systems are configured to define
credit limits of customers, thereby limiting the credit risk to pre-calculated amounts.

Other financial assets measured at amortized cost

Other financial assets measured at amortized cost includes loans and advances to employees and others. Credit risk related to these other financial
assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the
amounts are within defined limits.

b) Expected credit losses

Company provides expected credit losses based on the following;

Trade receivables

The Company recognizes lifetime expected credit losses on trade receivables using a simplified approach and uses historical information to arrive at
loss percentage relevant to each category of trade receivables. For descriptive note on trade receivables ageing, refer note 48.4 (B)

Other financial assets measured at amortized cost

Company provides for expected credit losses on "loan advances and other than trade receivables" by assessing individual financial instruments
for expectation of any credit losses. Since, this category includes loans and receivables of varied natures and purpose, there is no trend that the
Company can draw to apply consistently to entire population. For such financial assets, the Company's policy is to provide for 12 month expected
credit losses upon initial recognition and provide for lifetime expected credit losses upon significant increase in credit risk. The Company does not
have any expected loss based impairment recognised on such assets considering their low credit risk nature, though incurred loss allowances are
disclosed under each sub-category of such financial assets.

Notes to the Standalone Financial Statements

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. Due to the nature of the business, the Company maintains flexibility in funding
by maintaining availability under committed facilities. Management monitors rolling forecasts of the Company's liquidity position and cash and cash
equivalents on the basis of expected cash flows. The Company takes 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 and considering the level of liquid assets necessary
to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

Maturities of financial liabilities

The tables below analyse the company's financial liabilities into relevant maturity companying based on their contractual maturities for all non¬
derivative financial liabilities and the amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months
equal their carrying balances as the impact of discounting is not significant.

C) Market Risk
a) Foreign currency risk

Most of the Company's transactions are carried out in INR. Exposures to currency exchange rates arise from the Company's overseas borrowing
arrangements, which are primarily denominated in US dollars (USD).

To mitigate the Company's exposure to foreign currency risk, non-INR cash flows are monitored and forward exchange contracts are entered into in
accordance with the Company's risk management policies. Generally, the Company's risk management procedures distinguish short-term foreign
currency cash flows (due within 6 months) from longer-term cash flows (due after 6 months). Where the amounts to be paid and received in a specific
currency are expected to largely offset one another, no further hedging activity is undertaken. Forward exchange contracts are mainly entered into
for significant long-term foreign currency exposures that are not expected to be offset by other same-currency transactions.

Sensitivity

The following table illustrates the sensitivity of profit and equity in regards to the Company's financial assets and financial liabilities and the USD/INR
exchange rate and EUR/INR exchange rate 'all other things being equal'. It assumes a /- 2.44% change of the INR/USD exchange rate for the year
ended at 31 March, 2025 (2024: 2.02%). A /- 6.52% change is considered for the INR/EUR exchange rate (2024: 5.77%). Both of these percentages
have been determined based on the average market volatility in exchange rates in the previous 12 months. The sensitivity analysis is based on the
Company's foreign currency financial instruments held at each reporting date and also takes into account forward exchange contracts that offset
effects from changes in currency exchange rates.

b) Interest rate risk

The Company's policy is to minimise interest rate cash flow risk exposures on long-term financing. Long term borrowings are therefore usually at
fixed rates. At 31^st March, 2025, the Company is exposed to changes in market interest rates through bank borrowings at variable interest rates.
Other borrowings are at fixed interest rates. The Company's investments in bonds all pay fixed interest rates. The exposure to interest rates for the
Company's money market funds is considered immaterial. The following table illustrates the sensitivity of profit and equity to a reasonably possible
change in interest rates of /- 1% (2024: /- 1%). These changes are considered to be reasonably possible based on observation of current market
conditions. The calculations are based on a change in the average market interest rate for each period, and the financial instruments held at each
reporting date that are sensitive to changes in interest rates. All other variables are held constant.

i) Liabilities

The Company's policy is to minimise interest rate cash flow risk exposures on long-term financing. As at 31^st March, 2025, the Company is exposed
to changes in market interest rates through bank borrowings at variable interest rates.

Interest rate risk exposure

Below is the overall exposure of the company to interest rate risk:

44. Capital Management

The Company's capital management objectives are

- to ensure the Company's ability to continue as a going concern

- to provide an adequate return to shareholders

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance
sheet.

Management assesses the Company's capital requirements in order to maintain an efficient overall financing structure while avoiding excessive
leverage. This takes into account the subordination levels of the Company's various classes of debt. The Company manages the capital structure and
makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or
adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares,
or sell assets to reduce debt.

47.2 a) The Nine Judge Bench of the Hon'ble Supreme court, vide its order dated 11^th November, 2016, upheld the
Constitutional validity of the Entry tax legislations passed by the various States. However, the Bench directed that
certain other matters raised by the Petitioner, such as matter relating to Entry tax on account of discriminatory
rates resulting in entry tax liability amounting to ' 762.91 crore on iron Ore and Coking Coal in Bhilai-Durg area @
6% as compared to lower rate of 1% on Coking Coal and 3% on Iron ore in rest of the areas of Chhattisgarh, Entry
tax amounting to '105.13 crore on goods entering into the local area of Jharkhand from other State etc. may be
determined by regular benches hearing the matters. In the State of Chhattisgarh, applications filed under settlement
scheme (Chhattisgarh Settlement of Arrears of Tax, Interest and Penalty Act, 2023) for settlement of Entry Tax dispute
of ' 762.91crore pertaining to rate discrimination has been settled in full and final on payment of '137.72 crore as
per scheme. However, in respect of Jharkhand, pending decision by the Courts, the disputed Entry Tax liabilities of
'105.13 crore have been treated by the Company as Contingent Liability as on 31^st March, 2025 (As at 31^st March,
2024 - '98.83 crore) and included in Note No. 47.1 (i) (g) above.

b) Hon'ble Supreme Court dismissed the SLP by the Company (pertaining to Bokaro Steel Plant) in respect of dispute
with Damodar Valley Corporation (DVC) related to provisional tariff petition of electricity charges for 2009-2014
vide order dated 18^th January, 2017, keeping the question of law open. The Order of Central Electricity Regulatory
Commission (CERC) dt. 7/8/2013 related to Tariff of 2009-2014 against Petition No. 275/GT/2012 has been challenged
before Appellate Tribunal for Electricity (APTEL) (Appeal No.18 of 2014) in which the Company has also intervened
and the order of APTEL is pending. Further, in respect of the civil appeal filed by Damodar Valley Corporation (DVC)
pertaining to tariff of Financial Year 2004-05 to 2008-09 against the order of the Appellate Tribunal for Electricity
(APTEL), the Hon'ble Supreme Court of India dismissed the appeal vide its Order dated 3^rd December, 2018, which
could also have an effect on future tariff orders in view of consideration of certain parameters for fixation of tariff.
Accordingly, State Electricity Regulatory Commission (SERC) will finalise the retail tariff as directed by APTEL, the
financial implication of which can only be ascertained after the Tariff fixation by SERC. For the State of Jharkhand
where the dispute of '587.72 crore arises, DVC has filed its Retail Tariff Application in November, 2020 along with
application for Annual Revenue Requirement before the Jharkhand State Electricity Regulatory Commission (JSERC)
for the period of 2006-07 to 2011-12 and also seeking adjustment of Revenue Gap/Surplus in the period of 2012-13
to 2014-15. The Company has also filed their objections on 28^th December, 2020 to the aforesaid Application of DVC.

JSERC finalised the Category-wise Retail Supply Tariff of DVC for the period from FY 2006-07 to FY 2011-12 vide order
dated 31^st October, 2023.

DVC preferred an appeal before Hon'ble APTEL against the order of the JSERC regarding the consideration of non¬
tariff income in totality in the tariff order. APTEL vide it's order dated 5^th February 2024 in Appeal No. 845 of 2023 & IA
No. 2377 of 2023 allowed the appeal of DVC with request to the commission to undertake the exercise with utmost
expedition, and pass an order afresh at the earliest. The Commission in light of the Order of Hon'ble APTEL, passed
the remand Order dated 23.07.2024. M/s DVC being aggrieved by the remand Order dated 23.07.2024 in the matter
of determination of ARR and category-wise tariff for the period FY 2006-07 to FY 2011-12 challenged it in Appeal
No. 332 of 2024 & IA No. 1282 of 2024 before the Hon'ble APTEL. The ground raised by petitioner was limited to the
incorrect treatment of non-tariff income by JSERC in its tariff order. Hon'ble APTEL vide its interim order dated 15^th
Oct 2024 in IA No.- 1282 of 2024 stayed the impugned tariff order to the extent that it considers entire balance Non¬
Tariff Income, other than Delayed Payment Surcharge, as Non-Tariff Income for distribution business and JSERC was
directed, to calculate category wise tariff for the period under consideration. Steel Authority of India Limited (SAIL)
filed Civil Appeals before the Supreme Court, vide Civil Appeal Diary No(s). 60807/2024 against this interim order of
Hon'ble APTEL in I.A No.- 1282 of 2024, however Supreme Court vide its order dated 27^th Jan. 2025 stated that it was
not inclined to interfere with the impugned judgment passed by the Appellate Tribunal.

In line with direction of Hon'ble APTEL, the JSERC has re-computed the ARR and category-wise tariff for the period
FY 2006-07 to FY 2011-12 and issued the tariff order dated 10^th Dec. 2024. JSERC has mentioned in this order that
re-computed ARR and category wise tariff are subject to final outcome of Appeal No 332 of 2024. The JSERC under
the heading directive in its tariff order dated 10^th Dec. 2024 has mentioned that " in accordance with Hon'ble APTEL
judgement dated10.05.2010, which has been upheld by the Hon'ble Supreme Court vide its Order dated 03.12.2018
hereby directs petitioner-DVC to report the principal amount to be refunded or to be recovered post implementation
of the instant Tariff Order within 30 days.

On the basis of Interim order of JSERC dated 10^th Dec 2024, for the period FY 2006 to 2012, DVC vide it's letter No
Coml/Arrear/JH/2006-12/330058 dated 01^st Feb 2025 and letter dated 30^th April 2025 has agreed for refund of total
amount of '344.75 Crore after adjustment of old dues, delayed payment surcharge, excess payment (if any) shortfall
in SD (if any) and carrying cost to the Company. M/s DVC has started to refund the amount of '344.75 crore through
making adjustment in the power bill from January 2025 onward in 24 months equal instalments.

The amount of ' 587.72 crores paid to DVC retained as advance in the books of accounts has now been adjusted
for the refundable amount of ' 344.75 Crores. The monthly instalment of ' 12.82 crores received for the period Jan
2025 to Mar 2025 has been accounted as deduction to the total receivable amount. Further, ' 50 crore advance, and
liability of ' 76.10 crore kept in books of accounts related to that period has also been adjusted with the total advance
amount of '587.72 crore. After consideration of the above amounts, the net advance with M/s DVC is '216.87 crore
(up to March 2024, ' 587.72 ) and same has treated as contingent liability and included in Note No. 47.1.(i) (f). In
addition, the claims receivable from M/s DVC is '306.29 crore (up to March, 2024, ' NIL) as on 31.03.2025.

For the period from 1^st April, 2017 onwards, full invoice value is being paid to M/s DVC and considered accordingly in
the Profit & Loss account of the company.

47.3 Under the Jharkhand Mineral Area Development Authority (Amendment) Act, 2015, the State Government of Jharkhand
has made a demand of '5742.23 crore upto 31^st March, 2025 (upto 31^st March, 2024 '5387.70 crore) towards "Market
Fee" on transaction value of coal, iron and steel items. As the matter is sub-judice, the amount has been disclosed as
Contingent Liability in Note No. 47.1(i)(e) above.

The Mineral (Mining by Government Company) Rules 2015 (the "MMGC Rules") were notified by GOI on 03.12.2015.
Although no provision was made for realization of any money for extension of the leases in the said Rules, demands
for payment under the MMGC Rules 2015 in respect of Duargaiburu lease of Gua, Amalgamated leases of Kiriburu-
Meghahatuburu and Dhobil lease of Chiria were raised by the District Mining Officer (DMO), Chaibasa, Jharkhand. The
collective demand for payment against the notices was about '2980.00 Crore. SAIL challenged the demand notices
through the filing of Writ Petitions in Hon'ble High Court of Jharkhand in March 2019. Hon'ble High Court vide order dated
18.12.2019/20.12.2019 stayed the operation of such demand notices. In the meantime, the Government of Jharkhand
sought clarification in respect of right/claim to raising of demand under Rule 5 of Mineral (Mining by Government
Company) Rule, 2015(MMGC) from the Ministry of Mines, Govt. of India. The Ministry of Mines, GOI vide letter dated
29.01.2021 clarified MMGC Rule, 2015 do not provide for payment of the additional amount for extension of mining
leases granted to a Government Company. Pending disposal of the matter by the Hon'ble High Court of Jharkhand, an
amount of '6673.44 crores ('5959.14 crore as on 31^st March, 2024) has been disclosed as contingent liability in Note No.
47.1(i)(h) above.

47.4 Writ Petition No. 3427 of 2011 was filed by the company for quashing the Notification no. 272 & 275 dated 1^st April,
2011 under which the water rates for the industrial use from Tenu Ghat dam was enhanced unilaterally from ' 4.50 per
thousand gallons to ' 26.40 per thousand gallons. The Single Member Bench of Hon'ble Jharkhand High Court vide its
order dated 18^th October, 2011, restrained the government of Jharkhand from disrupting water supply of the petitioner
as well as adopts any coercive measures in lieu of realization of the amount at the escalated rate of ' 26.40 per thousand
gallons provided the petitioner continues to deposit the water charges on the old rate. However, writ Petition No. 3427
of 2011 was disposed of by the Single Member Bench of Hon'ble Jharkhand High Court, Ranchi, on 28^th June, 2024.
Moreover, challenge to the Notification No.2/PMC/ Jalapurti-175/2007-272 & 275 dated 1^st April, 2011 was dismissed by
the Single Member Bench of Hon'ble Jharkhand High Court. The company had filed an appeal vide LPA No. 540/2024
against the aforementioned judgement of single member bench which is pending for acceptance before the Divisional
Bench of Hon'ble Jharkhand High Court.

SAIL/BSL have preferred to appeal against the said judgement vide LPA No.540/2024. In the meantime, WRD Department,
Government of Jharkhand issued a fresh notification no. 2/PMC/Jalpurti-175/2007-30 dated 17.01.2023 revising the rate
of water charges. The Company has challenged the said notification vide WPC No. 5966/2024 and the said writ has been
tagged with the LPA No. 540/2024 vide order dated 18.11.2024 for subsequent hearings.

As the matter is sub judice before the Division Bench of Hon'ble High Court of Jharkhand, the amount of '1905.52
crore demanded by the water resources department (including interest/penalty) has been treated by the company as
contingent liability as on 31^st March, 2025 ('1749.22 crore as on 31^st March, 2024) (and included in Note No. 47.1 (i) (f)
above).

47.5 (i) The Ministry of Environment & Forest and Climate Change (MoEF& CC) vide their letter No.- 11-599/ 2014-FC

dated 1^st April 2015 issued revised Guidelines for diversion of Forest Land for non-forest purpose under the Forest
(Conservation) Act, 1980 (FC Act). These revised Guidelines stipulated that in case of existing mining leases having
Forest Land (partially or fully), where approval for only a part of forest land has been obtained under the FC Act, the
Central Government accorded general approval under Section-2(iii) of the FC Act for the remaining area also to be
Forest Land, subject to certain conditions, which includes realising Net Present Value (NPV) for the entire forest land
falling in the mining lease, in case NPV of such forest land has not already been realised.

In this matter, as per legal opinion obtained by the Company, Section 2 (iii) of FC Act, 1980 will not apply to
Government Corporation and NPV is required to be paid only for that limited area, which has been approved by
MoEF& CC and in which mining activities are proposed to be done and not for the entire forest area. The matter of
applicability of NPV for total forest land has been challenged by the Company in Hon'ble High Court of Jharkhand.
The Hon'ble Court, in its order, has directed to place the matter before Division Bench of this Court.

A writ petition has also been filed in the Hon'ble high Court of Chhattisgarh against the demand of '96.28 crores
received during 2017-18 from the Office of Principal Chief Conservator of Forest, Chhattisgarh, in which the Hon'ble
High Court of Chhattisgarh awarded judgement in favour of Chhattisgarh Government.

The Company has deposited '96.28 crores with Principal Chief Conservator of Forest, Chhattisgarh and a Special
Leave Petition has been filed in Hon'ble Supreme Court of India against the order of Hon'ble High Court of
Chhattisgarh. The disputed amount of '96.28 crore (previous year: '96.28 crore) crore has been disclosed under
contingent liability in Note no.47.1.(i)(e).

(ii) Chhattisgarh State enacted Chhattisgarh (Adhosanrachna Vikas ewam Paryaawaran) Upkar Adhiniyam, 2005 and
levied Cess on the mineral extracted in the State of Chhattisgarh. BSP has filed a writ petition in the High Court of
Chhattisgarh challenging the enactment as ultra vires. However, BSP has deposited '256.47 crore under protest
till 31^st March, 2025 and shown as deposit with Government Department. Total disputed amount of '256.47 crore
(previous year '235.71 crore) is disclosed under contingent liability in Note no.47. 1.(i) (e).

47.6 Pursuant to the Hon'ble Supreme Court Judgment dated 2^nd August, 2017 in the Common Cause matter regarding
illegal mining, demand/Show cause notices have been issued for recovery of the price of minerals produced without
and beyond the environmental clearances under Section 21(5) of Mines and Mineral Development Regulation Act, 1957,
forest clearance under the Forest Conservation Act 1980, and towards excess production beyond consent to operate.
The Company has challenged the purported demand before the High Court of Jharkhand and Odisha and obtained stay
on demand.

(a) As the matter is pending for final determination and considering the implication of existing litigation, the Company:

(i) In respect of Iron Ore, by the Government of Odisha and Government of Jharkhand amounting to '453.11
crore and '3396.49 crore ('419.68 crore and '3122.00 crore as on 31^st March, 2024) respectively (including

interest). Based on internal assessment, the Company has provided an amount of '329.67 crore ('329.67
crore as on 31^st March, 2024) on estimated basis. Balance amount of '3519.93 crore ('3212.01 crore as on
31^st March, 2024) (including interest) has been treated as contingent liability in Note No. 47.1(i)(e)/(h) above.

(ii) In respect of Flux, by the Government of Jharkhand & Odisha amounting to '72.83 crore ('66.15 crore
as on 31^st March 2024) (including interest). Based on internal assessment, the Company has provided an
amount of '6.86 crore ('6.86 crore as on 31^st March 2024) on estimated basis. Balance amount of '65.97
crore ('59.29 crore as on 31^st March 2024) (including interest) has been treated as contingent liability in
Note No. 47.1(i)(e)/(h) above.

47.7 Land measuring 5.545 acres was allotted to DVC for 30 year w.e.f. 12.07.1966 on long term lease basis. The Land was
given to DVC for setting up of Electrical sub-station for ensuring supply of power for the benefit of ASP. There was no
lease agreement for the subsequent period, i.e., w.e.f. 13/07/1996. In absence of any agreement, the dues receivables
for the said period, could not be ascertained with reasonable certainty. The same will be accounted for in the year of
settlement.

47.8 (a) Consequent to the order of Hon'ble Odisha High Court, Company's claim towards renewal of lease [total area of

2599.54 acre disclosed under Note No. 4.(ii) (b) ], of land at Horomoto stands rejected, except surface area of 222.54
acre for which State Govt has been directed to consider as per provisions of Law.

(b) Contract being No. RMD/K/PROJ/CA/GOM/14-15/060 dtd 02.04.2015 was awarded by SAIL-GUA Ore Mines to the
consortium comprising M/s Larsen and Toubro Limited (L&T) and M/s Outotec GmbH & Co. KG, Germany for the jobs
of setting up of crushing, beneficiation and Pellet plant (Package 001) for 10MT Expansion of Gua Ore Mines, SAIL for
a time period of 40 months starting from the effective date of the contract which was 03.05.2014 [Contract Value, '
2742.84 Crore]. Time for completion of contract was extended twice by SAIL till 02.10.2018. There was unprecedented
delay in grant of Stage II Forest Clearance for 361.295 ha mining lease subsequently resulting in delay of execution of
work by L&T Consortium. Thereafter vide letter dtd 05.08.2019 SAIL communicated to the consortium headed by M/s
L&T that the aforesaid Contract has already come to an end by efflux of time on 02.10.2018 since no time extension
had been granted on 02.10.2018.

L&T and Outotec claimed compensation for the alleged illegal termination of the Contract, amounting to ' 900
crore. The matter was taken to the International Court of Arbitration (ICA), where the tribunal ruled in favor of the
claimants, awarding approximately '228 crore and interest to L&T and EUR 15.7 million and interest to Outotec for
breach of contract and associated costs (totalling to ' 370 Crores approx).

SAIL has filed an application under Section 34 of the Arbitration and Conciliation Act, 1996 challenging the aforesaid
award of the ICA in the Delhi High Court with case ref. no. OMP (Comm) No. 400 of 2023. Following a petition by the
consortium, the court ordered SAIL to deposit the awarded sum in its registry. SAIL's appeal to the Supreme Court
to overturn this directive was unsuccessful. Consequently, SAIL has deposited amounting to ' 499.49 crore with the
Delhi High Court registry. The Case is currently pending for arguments/hearing and is next listed for 4^th July 2025.

47.8 An award arising out of the Arbitration between M/S. Goyal Mg Gases Pvt. Ltd. (Claimant) and SAIL/Alloy Steels Plant,
Durgapur (Respondent) seeking claim of '116.86 crore, has been received on 22.05.2020, vide SCOPE, New Delhi letter
dated 18.05.2020.

By the aforesaid award, Tribunal allowed claim no. 1 and 2 of the Claimant w.r.t. differential amount pertaining to
transportation charges of Argon from DSP BOO Plant to ASP based upon market rate claimed by the Claimant and
refund of withheld/ deducted amount by ASP from the bills of the Claimant on account of merchant market sale of
Oxygen, Nitrogen and Argon respectively along with applicable interest thereon, out of the total claimed amount.

SAIL ASP had challenged the award for claims no.1 & 2 before ld. Commercial Court in Misc. Arb. Case No.8( re-registered
under new rules as Misc. Arb. Comm. Case no 12 of 2024. Oral arguments of both parties were heard and Written notes of
Arguments were also filed by both parties whereafter order was reserved by ld. Commercial Court on 06.03.2024 fixing
the case for pronouncement 16.04.2024. However due to filing of additional written notes on Limitation by M/s. Goyal
MG Gases, judgement was not pronounced and is now fixed for pronouncement on 07.05.2024. The Ld. Court on the said
date set aside the award by arbitration tribunal on the above claims.

SAIL ASP had challenged the award for claims no.1 & 2 before ld. Commercial Court in Misc. Arb. Case No.8( re-registered
under new rules as Misc. Arb. Comm. Case no 12 of 2024. Vide judgment dt. 07.05.2024, ld. Commercial Court had
allowed ASP's Challenge Petition and set aside the Award on Claims nos. 1 and 2 on the ground of limitation.

GMGL had filed two appeals in Hon'ble High Court against the two judgments of Commercial Court:

a) Appeal FMAT No. 46 of 2023 against Judgment dt. 23.06.2023 rejecting its Challenge Petition against rejection of its
Claim no. 3 by Arbitral Tribunal,

b) Appeal FMAT No. 43 of 35 of 2024 against judgment dt. 07.05.2024 allowing ASP's Challenge Petition against award
of Claims nos. 1 and 2 by Arbitral Tribunal.

In the last hearing on 30.01.2025, Hon'ble High Court suo-motu referred the parties to mediation before Hon'ble
Justice (Retd) Aloke Kumar Chakraborty and fixed 10.04.2025 for consideration of Mediator's Report.

In view of above and based on the amount quantified by the tribunal, the net disputed liability of '8.52 crore as on 31^st
March, 2025 (previous year: '7.54 crore) including interest, has been shown under Contingent Liability in Note No. 47.1(i)
(b) above.

48.5 Balances of some of the Trade Receivables, Other Assets, Trade and Other Payables are subject to confirmations/
reconciliations and consequential adjustment, if any. Reconciliations are carried out on on-going basis. Provisions,
wherever considered necessary, have been made. However, Management does not expect to have any material financial
impact of such pending confirmations/reconciliations.

49.1 In accordance with Ind AS 115- Revenue from Contracts with Customers', GST amount of '17934.09 crore (Previous Year:
'18052.27 crore) is not included in Revenue from Operations.

49.2 As per the terms of sales with certain Government agencies, the invoicing to these agencies are done at provisional
prices, till a final price is subsequently agreed. The revenue recognized on aforementioned provisional prices basis is as
under :

* Includes ' 686.65 Cr. on account of revision of Provisional rail prices made with effect from 01^st Apr 2023 for the
Financial Year 2023-24 and 2024-25.

** Includes ' 1714.03 Cr. on account of revision of Provisional rail prices made with effect from 01^st Apr 2022 and
' 185.16 Cr. provided as per recommendation of the Joint Pricing Committee (JPC) towards Rail prices for the Financial
Year 2021-22.

# Includes ' 1749.30 Cr. recognised during the 2^nd Quarter ended 30.09.2023 towards rail price revision for the Financial
Year 2021-22, as per the recommendation of the Office of the Chief Adviser (Cost), Ministry of Finance dated 26^th October,
2023.

$ included an amount of ' 489.32 crore on account of revision of provisional rail prices made with effect from 01.04.2021
for the Financial Year 2021-22.

49.3 As per the Department of Public Enterprises (DPE) guideline, the Company is required to contribute up to 30% of Salary
(Basic Pay plus Dearness Allowance) in respect of executive employees as superannuation benefits, which may include
Contributory Provident Fund, Gratuity, Pension and Post-Superannuation Benefits. Accordingly the Company has made
provision for pension benefit for executive employees @ 9% of Salary w.e.f. 1^st January, 2007 and @3% of Salary w.e.f. 1^st
April, 2015. Further, pension benefit for non-executive employees has been provided @ 6% of Salary w.e.f. 1^st January,
2012 and @2% of Salary w.e.f. 1^st April, 2015. Subsequent to wage revision, the pension benefit for non-executive
employees has been provided @ 9% of Salary w.e.f. 1^st November, 2021.

Pension Scheme was approved in the Meeting of the Board of Directors held on 9^th February, 2017 with modification
that from the Financial Year 2015-16 and onwards, the contribution towards Pension shall be measured, as a percentage
of Profit Before Tax (PBT) to average Net-worth. If the percentage of PBT to average Net-worth is 8% or above, amount
of Pension contribution shall be limited to 9% of Basic Pay plus DA for Executives and 6% of Basic Pay plus DA for
Non-executive (@9% w.e.f. 1^st November, 2021), else the amount of contribution towards Pension will be reduced
proportionately. However, a minimum Pension contribution shall be kept at the rate of 3% and 2 % (@3% w.e.f.
1^st November, 2021) of Basic Pay plus DA for Executive and Non-Executive employees respectively even in case of loss
during a Financial Year. During the Year ended 31^st March, 2025 provision for pension has been made @ 7.38% for all
employees.

The cumulative liability towards pension for Executive and Non-executive employees, amounting to '530.91 crore
('489.20 crore during the Year) and '52.91 crore ('(-)8.12 crore during the Year) has been charged to 'Employee
Benefits Expense' and 'Expenditure during Construction' respectively. An amount of '625.25 crore has been transferred
to Pension Fund during the Year. Further, an amount of '47.23 crore has been paid to retired employees during the Year
and an amount of '0.19 crore deposited by the employees for being eligible for pension.

49.8 Information on leases as per Indian Accounting Standards (Ind AS) 116 on 'Leases':

(I) The Company has leases for Land, office building, Plant & Equipment, warehouses & related facilities and vehicles.
With the exception of short-term leases and leases of low-value underlying assets, each lease is reflected on the
balance sheet as a right-of-use asset and a lease liability. Variable lease payments which do not depend on an
index or a rate are excluded from the initial measurement of the lease liability and right of use assets. The Company
classifies its right-of-use assets in a consistent manner to its Property, plant and equipment.

Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublease the
asset to another party, the right-of-use asset can only be used by the Company. Some leases contain an option to
extend the lease for a further term. The Company is prohibited from selling or pledging the underlying leased assets
as security. For leases over office buildings and other premises the Company must keep those properties in a good
state of repair and return the properties in their original condition at the end of the lease. Further, the Company is
required to pay maintenance fees in accordance with the lease contracts.

(II) Description of major leasing arrangements
Power Plant

The Company has accounted for certain power plants as finance lease under Appendix C of Ind AS 17 by virtue of
the power purchase agreement with the supplier. Under the terms of the power purchase agreement, the Company
shall continue to purchase power until the parties decide to terminate the agreement, which has been determined
to be an un-economic proposition considering the specialised nature and location of the asset. For any new lease
treatment has been done in accordance with Ind AS 116 - Leases.

Oxygen Plant

The Company has accounted for certain oxygen plants as finance lease (or operating lease) under Appendix C of Ind
AS 17 by virtue of the oxygen purchase agreement with the supplier. The agreement to purchase oxygen is a 15 year
fixed term agreement. There is no change in treatment under Ind AS 116 - Leases.

Mining land

The Company has accounted for leasehold lands for mining as finance leases by virtue of its rights under the lease
agreement after considering the right/ economic compulsion for renewal. There is no change in treatment under Ind
AS 116 - Leases.

49.9 Contributions made in cash and kind for the period from the Financial Year 2006-07 to 2025-26 to Railway authorities for
laying out railway line from Rajhara to Rowghat would be recovered in cash at the rate of 7% per annum for 37 year on
total contribution towards redemption of SAIL's contribution after commencement and fulfilment of assured traffic from
Rowghat mines. Management is of view that the criteria laid out in Memorandum of Understanding will be met and
interest accrues from the date of investment. The refund amount comprises principal and interest elements. Accordingly,
the interest element has been computed and recognised as income during the Year amounting to ' 79.80 crore (till date
' 391.63 crore). As per the opinion of Expert Advisory Committee of The Institute of Chartered Accountants of India, such
treatment of recognition on time proportion basis is in order as in view of the Management, no significant uncertainty
exists regarding collectability and measurability of revenue.

During the year, the company has recognized a loss of ' 93.16 crore arising out of modification of financial assets on
account of revision of estimated period of completion of Rowghat railway line.

49.10 The inventory of sub-grade iron ore fines (SGFs) generated at the captive mines of the Company were not assigned any
value in the books of accounts of the Company till the financial year ended 31^st March 2019, since, the Government of
India Notification dated 19^th September 2012 prohibited all captive miners from selling such sub-grade fines.

Following the Government of India Order no. F.No.16/30/2019-M.VI dated 16^th September 2019 allowing sale of sub¬
grade iron ore fines, the inventories of sub-grade fines held by the Company gained economic value. In this regard, the
Company also obtained opinions from the Additional Solicitor General of India as well as the Expert Advisory Committee
(EAC) of Institute of Chartered Accountants of India (ICAI). Based on the aforesaid opinions, the Company recognized
these inventories as by-product inventory as at 31^st March 2020. Since, these inventories were generated over many year,
making it impracticable to ascertain the actual valuation, the Company assigned a valuation to such inventories basis
average selling price of similar sub-grade fines over the last 36 months as declared by Indian Bureau of Mines (IBM), a
Government of India organisation and as adjusted for royalty and other selling costs.

The Company has obtained all clearances including environmental clearance and clearance from Director General of
Mines Safety, Government of India. Further, procedural clearances have been obtained from the State Government of
Odisha. In the State of Jharkhand, the Company is carrying Subgrade Iron ore Fines inventory of 32.63 Million Tons (as on
31^st March 2024: 32.92 Million Tons) valuing '3161.07 crore (as on 31^st March 2024 valuing ' 3189.02 crore) up to
31^st March, 2025 at GUA Mines. The evacuation of dumped fines from Duarguiburu lease of Gua Mine has started in FY
2023-24 for captive use, and for Topilore lease, the necessary permissions for dispatch is awaited. Further, total dispatch
of 62895 MT and 288556 MT have been made in FY 2023-24 and FY2024-25 respectively for captive consumption. With
respect to sale, the delay is procedural and the management expects to receive the clearances in due course.

The management has been able to sell off such inventories in the state of Odisha. While, on an overall basis during the
current and the previous years, there has been movement of 2.76 million tonnes in the volume of such inventories, there
is significant market demand for sub-grade fines and the recent sales price trends are indicative of considerable margins
over and above the carrying value of such inventories. The management also has plans to set up beneficiation plant in
future that will consume significant volume of sub-grade fines annually. Accordingly, in view of the management, there
is no adjustment required in the carrying value of these inventories at this stage.

Considering the substantial volume of inventories, the quantity estimated to be sold / consumed within the next one
year has been recognized as current and the balance has been classified as non-current inventory.

As at 31^st March, 2025, the Company is carrying sub-grade iron-ore fines inventory of 40.22 Mt (as at 31^st March 2024:
40.88 Mt) valuing '3867.41 crore (as at 31^st March 2024 valuing '3932.35 crore) which includes 37.92 Mt valued at
'3670.30 crore classified as non-current inventory and 2.30 Mt valued at '197.11 crore classified as current inventory at
its various mines.

Likewise, the Company

- at its Barsua and Dalli Mines is carrying inventory of tailings of 11.50 Mt (as at 31^st March 2024: 10.84 Mt) valuing
'541.65 crore (as at 31^st March 2024 valuing '513.57 crore) which includes 10.37 Mt valued at '488.13 crore classified
as non-current inventory and 1.13 Mt valued at '53.52 crore classified as current inventory.

- at its Bhilai and Rourkela Steel Plants is carrying inventory of extractable iron and steel scrap embedded in BF Slag
and LD Slag of 0.45 Mt (as at 31^st March 2024: 0.46 Mt) valuing '448.68 crore (as at 31^st March 2024 valuing '449.84
crore) which includes 0.40Mt valued at '392.42 crore classified as non-current inventory and 0.05Mt valued at '56.26
crore classified as current inventory.

- at its Chandrapur Ferro Alloys Plant is carrying inventory of Granulated high manganese ore (HMnO) slag and slag
fines of 0.83Mt (as at 31^st March 2024: 0.59 MT) valuing '43.29 crore (as at 31^st March 2024 valuing '42.35 crore)
which includes 0.81Mt valued at '41.03 crore classified as non-current inventory and 0.02Mt valued at '2.26 crore
classified as current inventory.

The Company is formulating a detailed plan for disposal / consumption of these inventories.

Considering the market volatility, steel market dynamics, possibility of future additions to steel and pellet making capacity
in the country which may augment the demand of these materials, the carrying value of the non-current inventories
need not be adjusted for any unforeseeable changes in the future prices. Accordingly, in view of the management, the
carrying values of the aforementioned inventories are the best estimates basis the information available at this stage.

49.11 The Cabinet Committee on Economic Affairs (CCEA) had approved the in-principle strategic disinvestment of three
SAIL units—Alloy Steels Plant (ASP), Durgapur; Visvesvaraya Iron & Steel Plant (VISP), Bhadravati; and Salem Steel Plant
(SSP), Salem—on 27^th October 2016. Following this, the SAIL Board endorsed the decision in its 9^th February 2017 Board
meeting and initiated the disinvestment process. The entire process of Strategic Disinvestment is being overseen by an
Inter-Ministerial Group (IMG). The IMG is chaired by Secretary, Department of Public Assets Management (DIPAM) and
co-chaired by Secretary (Steel). The Group appointed various Advisors to carry out the process. Despite two attempts
for ASP, the process could not progress further due to either non-eligible or no bidders. SAIL is exploring options for
performance improvement of ASP.

For VISP, the EOI issued on 4^th July 2019 was annulled by IMG due to lack of bidder interest. The Alternative Mechanism
(AM), based on recommendations from the Core Group of Secretaries on Disinvestment (CGD), has approved the
annulment of EOI, initiation of process for closure of VISP, monetisation of its land preferably through the National Land
Management Agency (National Land Monetization Corporation). SAIL Board in its 496^th meeting held on 16^th January
2023, has in-principle approved the proposal for the same.

In the case of SSP, the EOI issued on 4^th July 2019 was similarly annulled as per DIPAM's letter dated 5^th January 2024 due
to lack of interest from shortlisted bidders. The SAIL Board approved this annulment in its 509^th meeting held on 12^th
February 2024.

In view of the current status and the various other processes which are underway, no adjustment in these financial
statements is considered necessary at this stage.

49.12 The net of unreconciled balances in IUCA (Inter-unit current accounts) at the end of the Year are transferred to IUCA
Reserve under head Other Equity (Note. No. 23). The sum of IUCA Reserve for all units of SAIL is Nil.

49.13 Exceptional Items includes :

(I) For the current Year ended 31^st March, 2025:

(a) '279.54 crore relating to perquisites and allowances payable to Executive Employees of the Company from 26
November, 2008 to 4 October, 2009 (11 months) pursuant to Government of India/Ministry of Steel letter dated 30^th
July, 2024 basis the Hon'ble Kolkata High Court's order dated 13^th December, 2023.

(b) '2.42 crore towards settlement of contractual disputes ('0.27 crore in CMO and '2.15 crore in ISP) under Vivad se
Vishwas Scheme II and '13.51 crore at ISP towards settlement of contractual disputes under GST Amnesty Scheme.

(c) '108.58 crore towards write back of provisions relating to Commercial Tax (including Entry Tax) settlement.

(d) '125.75 crore towards settlement of contractual disputes ('87.01 crore in BSP and '38.74 crore in RSP).

(II) For the year ended 31^st March, 2024:

(a) '394.39 crore towards settlement of contractual disputes under Vivad se Vishwas Scheme II and

(b) '446.45 crore towards settlement of Entry Tax dispute under Chhattisgarh Settlement of Arrear of Tax, Interest and
Penalty Act, 2023.

49.14 Ministry of Steel, Government of India, vide its letters dated 19^th January 2024 in exercise of the powers conferred by
sub-rule (1) of Rule 20 of the Conduct, Discipline and Appeal Rules, 1977 of the Company had placed two directors of the
Company on suspension with immediate effect and further complying with the Ministry of Steel, Government of India,
letter dated 19^th January, 2024 the Company has placed some Below Board Level Officials of the Company, on suspension
with immediate effect, basis a preliminary enquiry done by the Central Vigilance Officer on complaints received with
respect to certain policy/pricing decisions of the Company. Now, pursuant to Government of India/Ministry of Steel
orders dated 28^th June, 2024, the suspension of the directors has been revoked with immediate effect. Further, the
Company has also vide its order dated 28^th June, 2024, in exercise of the powers conferred by sub-rule (5) of Rule 20 of
the Conduct, Discipline and Appeal Rules, 1977 of the Company, revoked the suspension of all employees mentioned
above with immediate effect. In view of the management, on the basis of their internal assessment, the matter is not
likely to have a material impact on the operations of the company and/or these financial results.

49.15 A claim of '3.60 crores has been recognized in relation to irregular transactions at Durgapur Steel Plant against which an
amount of '0.45 crores has already been recovered and efforts are being made to recover the balance amount of '3.15
crores. Pending recovery, provision of '3.15 crores has been made in the books of accounts and suitable action is being
taken by management to avoid recurrence of such transactions.

49.16 The Board of Directors has recommended final dividend @'1.60/- per equity share of '10/- each i.e. 16% on the paid up
share capital of the company for the financial year 2024-25, subject to approval of shareholders in the ensuing Annual
General Meeting of the company.

49.17 The project undertaken for major modification and rebuilding of residential quarters at one of the Plant has been
physically completed. However, as the process of detailed verification of executed work is ongoing for the purpose of
project closure and final cost determination, the actual cost incurred remains subject to confirmation. In accordance
with the requirements of Ind AS 16 - Property, Plant and Equipment, which stipulates that capitalization of an asset
should occur only when its cost can be measured reliably, the total expenditure of '73.70 crore ('68.76 crore as at
31.03.2024), inclusive of EDC and IDC, has been classified under Capital Work-in-Progress (CWIP) as at 31.03.2025.

49.18 Pursuant to the SEBI Circular having reference number SEBI/ HO/DDHS/ DDHS - RACPOD1/P/CIR/2023/172 dated
October 19, 2023, with respect to the framework for fund raising by issuance of debt securities by Large Corporates,
the company has been identified as a 'Large Corporate' as per the criteria mentioned in the circular and is complying
with the requirements of the said circular. The details of Outstanding Qualified Borrowings and Incremental Qualified
Borrowings for the financial year ended March 31,2025 are provided below:

(b) Reconciliation of Fair Value of Assets and Obligations
Gratuity Trust

The Company has funded the gratuity liability through a separate Gratuity Fund trust. The fair value of the plan assets
of gratuity is mainly based on the information given by the insurance companies through whom the investments have
been made by the Fund.

PF Trusts

The company pays fixed contribution to Provident Fund at pre-determined rates to separate trusts, which invests
the funds in permitted securities. The company has an obligation to ensure minimum rate of return to the members
as specified by GOI. Accordingly, the company has obtained report of the actuary, based on which overall interest
earnings and cumulative surplus in each trust is more than the statutory interest payment requirement for all the
periods presented.

The reconciliation of fair value of assets of the Gratuity Fund/ Provident Fund Trust and defined benefit gratuity/
Provident Fund obligations is as under:-

51.7 (a) No funds have been advanced or loaned or invested (either from borrowed funds or securities premium or any

other sources or kind of funds) by the Company to or in any person(s) or entity(ies), including foreign entities ('the
intermediaries'), with the understanding, whether recorded in writing or otherwise, that the intermediary shall,
whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Company ('the Ultimate Beneficiaries') or provide any guarantee, security or the like on behalf the
Ultimate Beneficiaries.

(b) No funds have been received by the Company from any person(s) or entity(ies), including foreign entities ('the Funding
Parties'), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether 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.
Ratios as per Amended Schedule III.

51.8 During the Year::

(a) The company does not hold any Benami property under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988)
and the rules made thereunder.

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

(c) The company has certain old charges that are pending for satisfaction in the records of MCA. The company is in the
process of taking necessary steps to satisfy these charges and update the records accordingly.

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

(e) The company has not entered into any Scheme of Arrangement under section 230 to 237 of the Companies Act, 2013.

(f) The company does not have any undisclosed income in the tax assessments under the Income tax Act, 1961.

(g) The company has not traded in crypto currency or virtual currency.

51.9 The Company has deposited ' 50.69 crore (Principal '11.22 crore and Interest '39.47 crore) in respect of Tax Deducted at

Source on house perquisites relating to non-executive employees for the period FY 2001-02 to FY 2004-05, with Income Tax

Department by maturing fixed deposit. The Company is in the process of taking proper legal advice in the said matter for

possibility of claiming back the same/setting off against the future payments. The interest earned on fixed deposit is also

netted off in the books of accounts.