1.21 Provisions and Contingencies

A Provision is recognized for a present obligation as a result of past events if 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 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. Liabilities which are
material and whose future outcome cannot be ascertained with reasonable certainty are treated as contingent and
disclosed by way of notes to the accounts.

1.22 Segment Reporting

An operating segment is a component of the Company that engages in business activities from which it may earn
revenues and incur expenses, whose operating results are regularly reviewed by the Company's Chief Operating
Decision Maker ("CODM") to make decisions for which discrete financial information is available. Based on the
management approach as defined in Ind AS 108, the CODM evaluates the Company's performance and allocates
resources based on an analysis of various performance indicators by business segments and geographic segments.

1.23 Dividends

Dividends paid (including dividend distribution tax thereon) is recognized in the period in which the interim
dividends are approved by the Board of Directors, or in respect of the final dividend when approved by shareholders.
The amount is recognised directly in equity.

1.24 Recent pronouncements

A. Adoption of New 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. On 31^st March, 2025, MCA
amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, as below:

i) Ind AS 1 - Presentation of Financial Statements

This amendment requires the entities to disclose their material accounting policies rather than their
significant accounting policies. The effective date for adoption of this amendment is annual periods
beginning on or after 1^st April, 2024. The Company does not expect this amendment to have any
significant impact in its financial statements.

ii) Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

This amendment has introduced a definition of 'accounting estimates' and included amendments
to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting
estimates. The effective date for adoption of this amendment is annual periods beginning on or after
1^st April, 2024. The Company does not expect this amendment to have any significant impact in its
financial statements.

iii) Ind AS 12 - Income Taxes

This amendment has narrowed the scope of the initial recognition exemption so that it does not
apply to transactions that give rise to equal and offsetting temporary differences. The effective date for
adoption of this amendment is annual periods beginning on or after 1^st April, 2024. The Company does
not expect this amendment to have any significant impact in its financial statements.

B. Standards issued but not yet effective

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules as issued from time to time. During the year
ended 31^st March, 2025, MCA has not notified any new standards or amendments to existing standard to
the Company.

Note: 13- Equity share capital (Contd.)

(a) Terms/Rights attached to the Equity Shares & Notes

(i) The Company has only one class of equity shares having par value of H1/- per share. Each holder of equity shares
is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend
proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General
Meeting except in case of interim dividend.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining
assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the
number of equity shares held by the shareholders.

(ii) The Company does not have any Holding/Ultimate Holding Company. As such , no shares are held by them or
their Subsidiary / Associates

(iii) Buy Back of Equity Shares

(c) Terms of issue of shares other than cash

Pursuant to the Scheme of Arrangement ("the scheme") between Star Ferro and Cement Limited (SFCL), the
Company and their respective shareholders as approved by the Hon'ble High Court of Meghalaya at Shillong vide
its order dated 31^st March, 2015 with effect from 1^st April, 2014 being the appointed date, the company had issued
and alloted 21,21,72,990 Equity Shares to the shareholders of SFCL in ratio of 1 (one) Equity share of 1/- each of the
Company as fully paid-up for every 1 (one) Equity Share of H1/- each held by them in SFCL.

(v) Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of
which are detailed below:

Interest risk:

A decrease in the interest rate on plan assets will increase the plan liability.

Life expectancy:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of
the mortality of plan participants both during and at the end of the employment. An increase in the life
expectancy of the plan participants will increase the plan liability.

Salary growth risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. An increase in the salary of the plan participants will increase the plan liability.

(vi) Contribution to Defined benefit plan

Expected contributions to post-employment benefits plans for the year ending 31^st March, 2026 is H17.28
lakhs ( 31^st March,2024, H18.82 Lac ).

(vii) Maturity profile of Defined Benefit Obligations

The weighted average duration of the defined benefit obligation is 5.36 years (31^st March, 2024 : 5.46 years).
The expected maturity analysis of undiscounted gratuity is as follows:

Note :35 - Employees Benefit obligations (Contd.)

(III) Defined Contribution Plan

Contribution towards provident fund are treated as expenses in the Statement of Profit and Loss. Under the defined
contribution plan, provident fund is contributed to the Government administered provident fund. The Company
has no further contractual on constructive obligation, other than the contribution payable to the provident fund.
The expense recognised during the year towards defined contribution plan is H16.62 Lakhs (as at 31^st March, 2024
: H15.81 Lakhs)

(i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments
that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values
are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in
determining fair value, the Company has classified its financial instruments into the three levels prescribed under
the accounting standard.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximise 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 are observable, the instrument is included in
level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included
in level 3.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments is determined using discounted cash flow analysis.

(iii) Fair value of financial assets and liabilities measured at amortised cost

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements
are reasonable approximations of their fair values since the Company does not anticipate that the carrying amounts
would be significantly different from the values that would eventually be received or settled.

(iv) Significant estimates

The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques. The Company uses its judgement to select a variety of methods and make assumptions that are mainly
based on market conditions existing at the end of each reporting period.

Note: 38 - Lease Liabilities

(a) The Company has lease contracts for land. The Company's obligations under leases are secured by the lessor's title
to the leased assets.

(b) The Company has elected to apply Ind AS 116 to its leases with modified retrospective approach. Under this
approach, the company has recognised lease liabilities and corresponding right of use assets. In the Statement of
Profit and Loss for the year ended, depreciation expenses on right of use assets and finance cost for interest accrued
on such lease liability has been recognized.

Note: 39 - Capital Management

The Company's objectives when managing capital are to:

Ý 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

Ý 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 capital to shareholders or issue new shares.

The amount mentioned under total equity in balance sheet is considered as Capital.

No changes were made to the objective, policies or process for managing capital during the year ended 31^st March, 2025
and 31^st March, 2024.

Note: 40 - Financial Risk Management

The Company's activities are exposed to a variety of financial risks: credit risk, liquidity risk and market risk (i.e. foreign
currency risk, interest rate risk and price risk).

(A) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily
trade receivables).

(i) Trade receivables

Customer credit risk is managed by each business unit subject to the Company's established policy, procedures
and control relating to customer credit risk management. Trade receivables are non-interest bearing and
are generally carrying 30 days credit terms. Outstanding customer receivables are regularly monitored. The
Company has no concentration of credit risk as the customer base is widely distributed both economically and

(ii) Financial instruments and deposits

Credit risk from balances with banks and financial institutions is managed by the Company's finance
department. For banks and financial institutions, only high rated banks/institutions are accepted.

Financial assets are considered to be of good quality and there is no significant credit risk.

The Company's maximum exposure to credit risk for the components of the balance sheet at 31^st March, 2025
and 31^st March, 2024 is the carrying amounts as illustrated in Note No. 37

(B) Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial
liabilities that are settled by delivering cash or another financial asset.

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 underlying business, the Company maintains sufficient cash and liquid investments available to meet
its obligation.

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. The management also considers
the cash flows projection and level of liquid assets necessary to meet these on a regular basis.

The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice.
Subject to the continuance of satisfactory credit ratings, the bank loan facilities may be drawn at any time
in INR.

Maturities of financial liabilities

The tables below analyse the Company's financial liabilities into relevant maturity groupings based on their
contractual maturities for all financial liabilities.

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 - Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates
primarily to the Company's long-term debt obligations with floating interest rates.

The Company's main interest rate risk arises from borrowings with variable rates, which expose the Company to
cash flow interest rate risk. During 31^st March 2025, the Company's borrowings at variable rate were denominated
in Indian Rupees.

(D) Market risk - Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in foreign exchange rates.

Further foreign exchange risk also arises from future cash flow against foreign currency loan. The risk is measured
through a forecast of highly probable foreign currency cash flows.

(E) Market risk - Price risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes
are caused by factors specific to the individual financial instrument or its issuer or by factors affecting all similar
financial instruments traded in the market.

Note : 42 - Contingent Liabilities & Commitments (Contd.)

(a) In respect of demand notice dated 19^th February, 2020 received by the Company from Director of Mineral
Resources, Meghalaya, for payment of royalty, MEPRF, VAT/GST for H1,739 Lacs (approx) in pursuance to the
National Green Tribunal (NGT) Order dated 17^th January, 2020 passed in O.A. No. 110(TCH)/2012 for alleged
illegal coal procurement. By passing the said order NGT has accepted the Recommendation of the 5^th Interim
Report of the Independent Committee set up by NGT, which has suggested imposition of penalty on Cement
Companies and Thermal Power Plants in Meghalaya. The Company has not purchased any illegal coal and
has complied with all disclosure requirements of the various Government Departments. The Report of NGT
Committee has been founded on the basis of assumptions and views of the Committee and not on hard facts.
Further to note that the Company has neither been issued a show-cause nor any opportunity of being heard was
given to the Company before submitting the Interim reports by the Independent Committee to NGT. Even NGT
has not served any notice on the Company before passing the impugned order dated 17^th January, 2020 which
is clear violation of principles of natural justice. The Company backed by the legal opinions, believes that it has
a good case in the matter as the said order was issued based on certain hypothetical assumptions and views
and not on hard facts. No opportunity of being heard was provided to the Company either by NGT committee
or by NGT itself which passed order without going into the merits & facts and accepted the recommendations
of 5^th Interim Report. In addition, the Committee also recommended that an amount of H400/MT of coal to be
utilized by the Company (and other plants) on or after the date of the order shall be directed to be deposited
in the MEPRF, which comes to H446 lakhs(approx). Therefore, there is every likelihood of the Demand Notice
and the order of the NGT being set aside. The Company has preferred an appeal before the Supreme Court of
India against the NGTThe Hon'ble Supreme Court in its Order dated 2^nd May, 2023 has set aside the Order of
NGT and remand back the same to NGT for its further considerations. On 2^nd Nov, 2023, the Company filed an
application for impleadment which was allowed by the NGT, Eastern Zone Bench. Further, the Company has
also filed a counter affidavit before the NGT, Eastern Zone Bench which was taken on record on 9^th Feb, 2024.
Pending completion of pleadings, no provision has been made in the books of account.

(b) Vide Order dated 24.10.2024 passed in Case No. 32 of 2023, Meghalaya State Electricity Regulatory Commission
(MSERC), Shillong enhanced the fixed Electricity charges for Ferro Alloys (EHT) from H230/KVA/month to
H250/KVA/month and also enhanced the energy charges from H4.90/kVAh to H6.41/kVAh for the Financial Year
2024-25. As per the said Order the new tariff shall be effective from 01.04.2024. By the said order the Commission
further directed that in case of any recovery of arrears, the same shall be billed in 9 equal instalments starting
from December, 2024.

On the basis of the above Order dated 24.10.2024, Meghalaya Power Distribution Corporation Limited (MPDCL)
raised electricity bill as per the new tariff which the Company has been paying under protest. As per MPDCL
the Company is liable to make arrear payment of H7,39,97,245.17/- (Rupees Seven Crore Thirty Nine Lakh
Ninety Seven Thousand Two Hundred Forty Five and Seventeen paise) only as per revised tariff charges in 9
equal instalments.

Against the Order dated 24.10.2024 passed by the Commission, the Company had preferred a writ petition,
bearing W.P.(C) No. 13 of 2025 before the Meghalaya High Court on the ground, amongst others, that the
order of the Commission is erroneous as the Commission has no power under the Electricity Act, 2003 to
give retrospective effect to the new tariff. After hearing, Meghalaya High Court, vide it's order dated 30.01.2025
was pleased to grant interim relief by directing that the tariff difference amount (1/9) shall be put on hold. Final
hearing in the matter is complete and the case is fixed for delivery of judgement.

Therefore, the Company backed by legal opinions, believe that it has a good case in the matter as the said arrear
charges are without any basis, and, accordingly, no provision has been made in the accounts.

Note: 43- Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at
least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility
(CSR) activities.

The Company in the immediately preceding financial year has not fulfilled any of the criteria of Section 135 of the
Companies Act, 2013. Hence, the Company has not mandatorily spent towards the CSR activities for the FY 2024-25.

The Company as at 31^st March, 2025 is not fulfilling the criteria of Section 135 of the Act, hence the Company is not
mandatorily required to spend for the FY 2025-26. However, the Company may contribute suo moto towards the CSR
activities for the FY 2025-26, if it feels desirable for benefit of the society at large.

Note: 44

The Company has not been declared a wilful defaulter by any bank/financial institution/government/any government
authority.

Note: 45

The Company has not traded or invested in crypto currency or virtual currency during the current year or previous year.

Note: 46

The borrowings obtained by the company from banks have been applied for the purposes for which such loans
were taken.

Note: 47

The Company has not entered into any scheme of arrangements which has an accounting impact on current or
previous financial years.

Note: 48

No proceedings have been initiated on or are pending against the company for holding benami property under the
Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) [formerly the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988)] and Rules made thereunder.

Note: 49

The Company did not have any transactions with companies struck off under Section 248 of the Companies Act, 2013
during the current financial year and previous financial year.

Note: 50

(i) The Company has not advanced or loaned or invested funds (either borrowed funds or security premium or any
other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with
the understanding (whether recorded in writing or otherwise) that the Intermediary shall directly or indirectly lend
or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate
Beneficiaries) or

(ii) The Company have not received any fund from any person(s) or entities, including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) 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 (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

Note: 51

There are no charges or satisfaction of charges which are yet to be registered with the Registrar of Companies beyond
the statutory period.

(i) Average Equity Share Capital (Opening Equity (incl. other equity) Closing Equity (incl. other equity ))/2

(ii) Average Inventory -: (Opening Inventory Closing Inventory)/2

(iii) Average Trade Receivable -: (Opening Trade Receivable Closing Trade Receivable)/2

(iv) Average Trade Payable -: (Opening Trade Payable Closing Trade Payable)/2

(v) Capital Employed -: (Equity (incl. other equity) Current Borrowing Non Current Borrowing Lease liability)

(vi) Average Investment -: (Opening Fixed deposit Closing fixed deposit)/2

Note: 53

The Company is primarily engaged in the manufacture and sale of ferro silicon. There are no separate reportable
segments as per Ind AS 108, 'Operating Segments'.

Note: 54

Previous year's figures have been rearranged and/or regrouped ,whenever necessary.

Note: 55

The financial statements have been approved by the Audit Committee at its meeting held on 21^st May, 2025 and by the
Board of Directors on the same date.

For D. K. Chhajer & Co. For and on behalf of the Board of Directors

Chartered Accountants
Firm Registration No. 304138E

Jagannath Prosad Mohapatro Uday Bahadur Chetri Aditya Vimalkumar Agrawal

Partner Chief financial Officer Managing Director

Membership No :217012 DIN - 03330313

Ritu Agarwal Rajesh Kumar Agarwal

Place: Kolkata Company Secretary Director

Date: 21^st May, 2025 DIN - 00223718