(l) Provisions
Provisions are recognised in the balance sheet when the Company has a present obligation (legal or constructive) as a result
of a past event, which is expected to result in an outflow of resources embodying economic benefits which can be reliably
measured/estimated. They also include provisions on decommissioning, site restoration and environmental provisions as
well. Each provision is based on the best estimate of the expenditure required to settle the present obligation at the balance
sheet date. Where the time value of money is material, provisions are measured on a discounted basis.
Constructive obligation is an obligation that derives from an entity's actions where:
(i) by an established pattern of past practice, published policies or a sufficiently specific current statement, the entity has
indicated to other parties that it will accept certain responsibilities and
(ii) as a result, the entity has created a valid expectation on the part of those other parties that it will discharge
such responsibilities.
(m) Income taxes
Tax expense for the year comprises of current and deferred tax. The tax currently payable is based on taxable profit for the
year. Taxable profit differs from net profit as reported in the statement of profit and loss because it excludes items of income
or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible.
The Company's liability for current tax is calculated using tax rates and tax laws that have been enacted or substantively
enacted in countries where the Company and its subsidiaries operate by the end of the reporting period.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying value of assets and
liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is
accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable
temporary differences. In contrast, deferred tax assets are only recognised to the extent that it is probable that future
taxable profits will be available against which the temporary differences can be utilised.
Deferred tax liabilities are recognised on taxable temporary differences arising on investments in subsidiaries, joint ventures
and associates, except where the Company is able to control the reversal of the temporary difference and it is probable that
the temporary difference will not reverse in the foreseeable future.
The carrying value of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is
no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset
is realised based on the tax rates and tax laws that have been enacted or substantially enacted by the end of the reporting
period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the
manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying value of its
assets and liabilities.
Deferred tax assets and liabilities are offset to the extent that they relate to taxes levied by the same tax authority and there
are legally enforceable rights to set off current tax assets and current tax liabilities within that jurisdiction.
Current and deferred tax are recognised as an expense or income in the statement of profit and loss, except when they
relate to items credited or debited either in other comprehensive income or directly in equity, in which case the tax is also
recognised in other comprehensive income or directly in equity.
(n) Revenue
The Company manufactures and sells a range of steel and allied products.
Sale of products
Revenue from sale of products is recognised when control of the products has transferred, being when the products are
delivered to the customer. Delivery occurs when the products have been shipped or delivered to the specific location as
the case may be, the risks of loss has been transferred, and either the customer has accepted the products in accordance
with the sales contract, or the Company has objective evidence that all criteria for acceptance have been satisfied. Sale of
products include related ancillary services, if any.
Goods are often sold with volume and price discounts based on aggregate sales over a 12 months period. Revenue from
these sales is recognised based on the price specified in the contract, net of the estimated volume and price discounts.
Accumulated experience is used to estimate and provide for the discounts, using the most likely method, and revenue
is only recognised to the extent that it is highly probable that a significant reversal will not occur. A liability is recognised
for expected volume discounts payable to customers in relation to sales made until the end of the reporting period. No
element of financing is deemed present as the sales are generally made with a credit term of 30-90 days, which is consistent
with market practice. Any obligation to provide a refund is recognised as a provision. A receivable is recognised when the
goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is
required before the payment is due.
The Company does not adjust the transaction prices for any time value of money in case of contracts where the period
between the transfer of the promised goods or services to the customer and payment by the customer does not exceed
one year.
Sale of power
Revenue from sale of power is recognised when the services are provided to the customer based on approved tariff rates
established by the respective regulatory authorities.
(o) Foreign currency transactions and translations
The financial statements of the Company are presented in Indian Rupee ("I"), which is the functional currency of the
Company and the presentation currency for the financial statements.
In preparing the financial statements, transactions in currencies other than the entity's functional currency are recorded
at the rates of exchange prevailing on the date of the transaction. At the end of each reporting period, monetary items
denominated in foreign currencies are re-translated at the rates prevailing at the end of the reporting period. Non-monetary
items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the date
when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency
are not translated.
Exchange differences arising on the re-translation or settlement of other monetary items are included in the statement of
profit and loss for the period.
(p) Recent Accounting Pronouncements
Ministry of Corporate Affairs ("MCA") has notified amendments to the existing standards Ind AS 1 - Presentation of financial
statements relating to classification of liabilities as current or non-current subject to covenants, Ind AS 12 - Income Taxes
relating to international tax reforms - Pillar Two Model Rules, Ind AS 21 - the effect of changes in foreign exchange rates
and Ind AS 107 - Financial Instruments: Disclosures and Ind AS 7 - Statement of Cashflows relating to disclosure of supplier
financing arrangements, applicable from April 1,2025. The Company has assessed that there is no significant impact on its
financial statements with respect to the amendments in Ind AS 1, Ind AS 21 and Ind AS 12
(q) Government Grants
Government grants are recognised at its fair value, where there is a reasonable assurance that such grants will be received
and compliance with the conditions attached therewith have been met
Government grants are related to revenue expenditure, as it is intended to compensate the company for electricity/
power costs incurred during the operation.It is presented in statement of profit and loss according to "Second method of
presentation of grants related to income" as per IND AS 20 i.e deducted in reporting the related expenses.
B. Rights, preferences and restrictions attaching to Equity Shares
The Company has equity shares having a par value of Rs.10/- each. Each holder of equity shares is entitled to one vote per share
and in the event of liquidation,the shareholders of Equity shares of the company are eligible to receive the remaining assets of
the company after distribution of all preferential amounts in proportion to their shareholding.
The Company has authorised Preference Share Capital which are non convertible redeemable of 100/- each. Such Shareholders
have right to receive fixed preferential dividend. However no preferential shares are outstanding on the date of Balance Sheet.
(a) Capital Reserve: Capital reserve will be utilised in accordance with provisions of the Act
(b) Share Premium: The amount received in excess of face value of the equity shares is recognised in Share Premium.
(c) General Reserve: The Company has transferred a potion of the net profit of the company before declaring dividend to general
reserve persuant to the earlier provisions of Companies Act 1956. Mandatory transfer to general reserve is not required under
the Companies Act 2013.
(d) Capital Redemption Reserve: The Company has recognised Capital Redemption Reserve on redemption of Preference
Shares from its retained earnings. The amount in Capital Redemption Reserve is equal to nominal amount of the Preference
Shares redeemed.
(e) Retained earnings: It comprise of accumulated profit/ (loss) of the Company. The movement is on account of following
(i) Rs. 3,757.42 lacs (31st March 2025: Rs. 9,017.57 lacs) was on account of profit/ (loss) incurred by the Company.
(ii) Rs. (-)190.72 lacs (31st March 2025: 190.72 lacs) was on account of dividend distribution
(iii) Nil (31st March 2025:Rs. 1,387.17 Lacs) has been adjusted on account of re-estimation of Deferred Tax Liability
Disclosures of payables to vendors as defined under the " Micro, Small and Medium Enterprise Development Act, 2006) is based
on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the
intimation received from them on requests made by the Company.
As per the provisions of Section 15 of the MSMED Act, 2006, a buyer is required to make payment to Micro and Small Enterprises
within the prescribed period. Further, pursuant to Section 22 of the MSMED Act, 2006, the Company is required to disclose in its
annual financial statements the amounts due to Micro and Small Enterprises, including details relating to outstanding dues and
interest payable, if any.
The Company's current management information and accounting systems capture MSME status and related tracking details as of
certain specific cut-off dates. However, the aggregate payments made to MSME creditors during the entire financial year, along with
precise continuous bill-wise ageing and outstanding balances during the period, are not fully ascertainable from the existing records
maintained by the Company.
Consequently, due to non-availability of complete and comprehensive transactional data, the Company is unable to fully compile
the detailed information required for determination of the exact amount of dues outstanding beyond the prescribed period under
Section 15 of the MSMED Act, 2006 and the related disclosures required under Section 22 of the MSMED Act, 2006.
Capitalisation of Borrowing Costs: During the financial year, the Company has capitalised borrowing costs amounting to
Rs. 1,27,14,266 (previous year: Rs. 6,37,00,008) as part of the cost of qualifying assets, in accordance with Indian Accounting
Standard (Ind AS) 23 - Borrowing Costs. The capitalised borrowing cost pertains to the term loan taken specifically for financing the
development of Cuttack Project, which meets the definition of a qualifying asset under Ind AS 23. The capitalisation of borrowing
costs has been restricted to the extent of expenditure incurred on the project which is under construction and reflected as Capital
Work-in-Progress (CWIP) as at the reporting date.
31. Contingent liability and Commitments (Ind AS 37)
(to the extent not provided for)
Contingencies
In the ordinary course of business, the Company faces claims and assertions by various parties. The Company assesses such claims and
assertions and monitors the legal environment on an on-going basis with the assistance of external legal counsel, wherever necessary.
The Company records a liability for any claims where a potential loss is probable and capable of being estimated and discloses such
matters in its financial statements, if material. For potential losses that are considered possible, but not probable, the Company
provides disclosure in the financial statements but does not record a liability in its accounts unless the loss becomes probable.
Litigations
The Company is involved in legal proceedings, both as plaintiff and as defendant
Income Tax
The Company has ongoing disputes with income tax authorities relating to tax treatment of certain items. These mainly include
disallowance of expenses, tax treatment of certain expenses claimed by the Company as deduction and the computation of or
eligibility of the Company's use of certain tax incentives or allowances. Most of this disputes and /or disallowances, being repetitive
in nature, have been raised by the income tax authorities consistently in most of the year .
Excise/ Service Tax , Sales Tax/VAT Matter and Goods and Service tax
As on March 31,2026, there were pending litigations for various matters relating to Excise/Service Tax, Sales Tax/VAT matter and GST
forming part of the standalone financial statement.
Defined benefits - Gratuity
The Company's gratuity benefit scheme for its employees in India is a defined benefit plan (funded).
Under the code on Social Security,2020 (effective from November 2025) , which incorporates provision from the Payment of Gratuity
Act 1972. Also it enhances gratuity provisions tied to wages and minimum wages , alongside providend fund (PF), employee state
insurance (ESI), bonus.The defined benefit obligation calculated as on 31st March 2026 allows for impact of the new definition of
wages under the proposed code of wages 2019 issued by the Governmnet of India. The impact of the change in salary definition
has been shown as a plan amendment cost in Profit and Loss Account. The gratuity plan is a funded plan and the company makes
contributions to recognised funds in India. The Company does not fully fund the liability and maintains a target level of funding to be
maintained over a period of time based on estimation of expected gratuity payments.
These defined benefit plans expose the Company to actuarial risks, such as currency risk, interest risk and market (investment) risk.
The Company expects to pay Rs.109,21,465/- in contribution to its defined benefit plans during the year 2025-26
Inherent risk
The plan is defined benefit in nature which is sponsored by the Company. In particular, this exposes the Company, to actuarial risk
such as adverse salary growth, change in demographic experience, inadequate return on underlying plan assets. This may result in an
increase in cost of providing these benefits to employees in future. Since the benefits are lump sum in nature, the plan is not subject
to longevity risk.
The following tables analyse present value of defined benefit obligations, expense recognised in Consolidated Statement of Profit
and Loss, actuarial assumptions and other information.
33. Related Party Disclosures under Ind AS 24
The company's related parties principally consist of its subsidiaries and associates . The company routinely enters into transactions
with these related parties in the ordinary course of business at market rates and terms.
The following table summarises related party transactions and balances included in the financial statements of the company for the
year ended as at March, 31,2026 and March, 31,2025.
Terms and conditions of transactions with related parties
All related party transactions entered during the year were in ordinary course of business and on arm's length basis. Outstanding
balances at the year-end are unsecured and settlement occurs in cash.
34. Accounting classifications and fair values (Ind AS 107)
34.1 Fair values vs carrying amounts
The following table shows fair values of financial assets and liabilities, including their levels in financial hierarchy, together with the
carrying amounts shown in the statement of financial position. The table does not include fair value information for financial assets
and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
34.2 Fair value measurement
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchange in a current
transaction between willing parties, other than in forced or liquidation sale.
The Company has established the following fair value hierarchy that categories the value into 3 levels. The inputs to valuation
techniques used to measure fair value of financial instruments are:
Level 1: The hierarchy uses quoted (adjusted) prices in active markets for identical assets or liabilities. The fair value of all bonds which
are traded in the stock exchanges is valued using the closing price or dealer quotations as at the reporting date.
Level 2: The fair value of financial instruments that are not traded in an active market (for example traded bonds, over the counter
derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible
on company 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.
The management assessed that trade receivables, cash and cash equivalent, other bank balances, trade payable and other financial
assets and liabilities approximate their carrying amounts largely due to the short term maturities of there instruments.
The fair value of the financial instruments is determined using net asset value at the respective reporting date.
34.3 Financial risk management
The Company has exposure to the following risks arising from financial instruments:
(i) Credit risk
(ii) Liquidity risk
(iii) Market risk
Risk management framework
The Company's principal financial liabilities comprises of borrowings, trade and other payables. The main purpose of these financial
liabilities is to finance the Company operations. The Company's principal financial assets include trade and other receivables,
investments and cash and cash equivalents that derive directly from its operations.
The Company's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company's
primary risk management focus is to minimise potential adverse effects of market risk on its financial performance. The Company's
exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of risk from the
top few customers. The Company's risk management assessment and policies and processes are established to identify and analyse
the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same.
Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the
Company's activities.
This note presents information about the Company's exposure to each of the above risks, the Company's objectives, policies and
processes for measuring and managing risk.
34. Accounting classifications and fair values (Ind AS 107) (Contd.)
(i) Credit risk
Credit risk is the risk of financial loss of the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally form the Company receivables from customers and loans. Credit arises when
a customer or counterparty does 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) and from its
financing/investing activities, including deposits with bank. The Company has no significant concentration of credit risk with any
counterparty. The carrying amount of financial assets represent the maximum credit risk exposure.
Trade receivable
The risk management committee has established a credit policy under which each new customer is analysed individually for
creditworthiness before the Company's standard payment and delivery terms and conditions are offered. The Company's review
includes external ratings, if they are available, financial statements, credit agency information, industry information and in some
cases bank references.
Exposure to credit risks
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However
management also considers the factors that may influence the credit risk of its customer base, including the default risk associated
with the industry. Details of concentration percentage of revenue generated from top customer and top five customers are
stated below :
Trade receivables are primarily unsecured and are derived from revenue earned from customers. Credit risk is managed through
credit approvals, establishing credit limits and by continuously monitoring the creditworthiness of customers to which the
Company grants credit terms in the normal course of business. As per simplified approach, the Company makes provision of
expected credit loss on trade receivables using a provision matrix to mitigate the risk of default payments and makes appropriate
provisions at each reporting date whenever is for longer period and involves higher risk.
(ii) Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable
price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability
of funding through an adequate amount of credit facilities to meet obligations when due. The Company's finance team is
responsible for liquidity, funding as well as settlement management. In addition, Processes and policies related to such risks are
overseen by senior management. Management monitors the Company's liquidity position through rolling forecasts on the basis
of expected cash flows.
The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet
its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Company's reputation.
Exposure to liquidity risk
The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date
based on contractual undiscounted payments
(iii) Market risk
Market risk is the risk of loss of future earnings, fair value or future cash flows that may result from a change in the price of a
financial instrument . The value of a financial instrument may change as a result of changes in the interest rates and other market
changes that effect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments
including investments, receivables, payables and borrowings.
(a) 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 exposure to the risk of changes in market interest rates related primarily to the
Company's borrowings with floating interest rates. The Company constantly monitors the credit markets and rebalances its
financing strategies to achieve an optimal maturity profile and financing cost.
Exposure to interest rate risk
The interest rate profile of the Company 's interest bearing financial instruments at the end of the reporting period are
as follows:
34. Accounting classifications and fair values (Ind AS 107) (Contd.)
(b) Equity price risk
The Company is not exposed to equity risks arising from equity investments. Equity investments are held for stratergic
rather than trading purposes. The Company does not actively trade these investments.
(c) Currency risk
Foreign currency risk is the risk impact related to fair value or future cash flows of an exposure in foreign currency, which
fluctuate due to changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange
rates relates primarily to import of raw materials and spare parts, capital expenditure, exports of finished goods. The currency
in which these transaction are primarily denominated as USD.
The Company evaluates exchange rate exposure arising from foreign currency transactions. The Company follows
established risk management policies and standard operating procedures.
Sensitivity analysis
A reasonably possible strengthening (weakening) of the USD and JPY against Indian rupee at 31 March would have affected
the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss by the
amount shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores
any impact of forecast sales and purchases.
35. Capital management
The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to
sustain furture development of the business. The management monitors the return on capital, as well as the level of dividends to
equity shareholders.
The Company's objective when managing capital are to: (a) to maximise shareholders value and provide benefits to other stakeholders
and (b) maintain an optimal capital structure to reduce the cost of capital.
For the purpose of the Company's capital management, capital includes issued equity share capital and other equity reserves
attributable to the equity holders.
36. Leases: Company as lessee
The Company has entered into agreements in the nature of lease/leave and license agreement with different lessors/licensors for the
purpose of establishment of office premises/residential accommodations etc. These are generally in the nature of operating lease/
leave and license. Period of agreements are generally up to three years amd renewable at the option of the lessee.
37. The Company has one operating business segment viz, maufacturing, selling, processing and conversion of steel and all other
activities are identical to the same and this is in accordance with Ind AS-108 " Operating Segments" notified pursuant to Companies
(Accounting Standards) Rules, 2015.
38. Events occurred after the Balance Sheet date
The Board of Dierctors has recommended Equity Dividends of Re.1/- per Share (Previous year Re.1/-) for the financial year 2025-26
39. Transactions with Struck Off Companies
The company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section
560 of Companies Act, 1956"
40. Fire Accident (Exceptional Items)
A fire accident occurred at the Company's Coal Yard on 25th,May,2025. As a result of the incident , Inventories (Stock of Indigenous
Coal (MCL Coal)) were damaged .
The company has assessed the loss based on available information and recognized the loss amounting to Rs.37,04,440.00 in the
statement of Profit and Loss under exceptional items.
41. Government Grant
During the financial year 2025-26, the Company has received an incentive from the Government of Andhra Pradesh towards
reimbursement of power cost incurred by the Company under the applicable Industrial Incentive Scheme.
The Company had applied for reimbursement of eligible power cost amounting to Rs. 742.89 lakhs, against which an amount of
Rs. 133.69 lakhs was approved and received. The amount received has been credited to the Electricity Charges as reffered in Note
No.29 of the financial of the Company.
The aforesaid incentive is in the nature of a government grant related to revenue expenditure, as it is intended to compensate the
Company for electricity/power costs incurred during operations. Accordingly, the same has been accounted for in accordance with
the principles prescribed under Ind AS 20 - Accounting for Government Grants and Disclosure of Government Assistance.
42. Additional Disclosures as per Schedule - III
(a) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company
for holding any Benami property.
(b) The Company has not been declared as a wilful defaulter by any lender who has powers to declare a company as a wilful
defaulter at any time during the financial year or after the end of reporting period but before the date when financial statements
are approved.
(c) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficia or provide any guarantee, security or
the like to or on behalf of the Ultimate Beneficiaries.
(d) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of the Funding Pay (Ultimate Beneficiaries) or provide
any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(e) The Company has not revalued its Property, Plant and Equipment and Intangible assets during the current or previous year.
(f) Neither any charges, nor any satisfaction of charges are yet to be registered with the Registrar of Companies.
(g) The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Act read with Companies
(Restriction on number of Layers) Rules, 2017.
(h) There have been no Scheme of Arangements approved by any competent authority pertaining to the company.
(i) The Company does not have any transaction which is not recorded in the books of accounts but has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as ,search or survey or any
other relevant provisions of the Income Tax Act,1961).
(j) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
43. The Financial statements were authorized for issue by the Directors on 15th May, 2026
44. Nature of security and other terms
Working Capital Loan are secured by first hypothecation on entire current assets of the Company including stocks, book debts and
other Current Assets of all the units both present and future ranking pari-passu basis with working capital lending Banks under
consortium/multiple Banking and Personal guarantee of promoter director and second charge on fixed assets (movable and
immovable) of the Company."
(A) Secured loan - terms of repayment
1. State Bank of India: Working capital loan amounting to Rs. 11684.20 lac (31st March 2025: Rs. 10433.73 lac). Interest is
payable at the rate of (6M MCLR 8.65% 0.50%)
2. Punjab National Bank: Working capital amounting to Rs. 2459.88 lac (31st March 2025: Rs. 2772.57 lac). Interest is payable
at the rate of (12M MCLR 8.75% 1.05%).
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