3.11 Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there is a legal or constructive obligation as
a result of past events and it is probable that there will be an outflow of resources and a reliable estimate can be made of the amount
of obligation. Provisions are not recognised for future operating losses. The amount recognized as a provision is the best estimate of
the consideration required for settlement of the present obligation at the end of the reporting period, taking into account the risks and
uncertainties surrounding the obligation.
Contingent liabilities are not recognized and are disclosed by way of notes to the financial statements when there is a possible obligation
arising from past events, 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 when there is a present obligation that arises from past events where it is either not
probable that an outflow of resources will be required to settle the same or a reliable estimate of the amount in this respect cannot be made.
When there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure
for contingent liability is made.
Contingent assets are not recognised but disclosed by way of notes in the financial statements when an inflow of economic benefits is
probable.
3.12 Employee Benefits
Employee benefits are accrued in the year in which services are rendered by the employee.
Short Term Benefits
Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the related services are provided.
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within twelve months after the
end of the period in which the employees render the related service are recognized in respect of employees' services up to the end of the
reporting period.
Other Long Term Employee Benefits
The cost of providing long term employee benefits consisting of leave encashment that are not expected to be settled wholly within twelve
months are measured as the present value of the expected future payments to be made in respect of services provided by employees up to
the end of the reporting period using the projected unit credit method. The benefits are discounted using the government securities (G-Sec)
at the end of the reporting period that have terms approximating to the terms of related obligation. Actuarial gains and losses and past
service cost are recognised immediately in the Statement of Profit and Loss for the period in which they occur. Long term employee benefit
obligation recognised in the Balance Sheet represents the present value of related obligation.
Post Employment Benefits
The Company operates the following post employment schemes:
- Defined Benefit Plans
The liability or asset recognized in the Balance Sheet in respect of defined benefit plans is the present value of the defined benefit obligation
at the end of the reporting period less the fair value of plan assets. The Company's net obligation in respect of defined benefit plans is
calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods.
The defined benefit obligation is calculated annually by Actuaries using the projected unit credit method.
The liability recognized for defined benefit plans is the present value of the defined benefit obligation at the reporting date less the fair
value of plan assets, together with adjustments for unrecognized actuarial gains or losses and past service costs. The net interest cost is
calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. The benefits
are discounted using the government securities (G-Sec) at the end of the reporting period that have terms approximating to the terms of
related obligation.
Remeasurements of the net defined benefit obligation, which comprise actuarial gains and losses, the return on plan assets (excluding
interest) and the effect of the asset ceiling, are recognized in other comprehensive income. Remeasurement recognized in other
comprehensive income is reflected immediately in retained earnings and will not be reclassified to the Statement of Profit and Loss.
- Defined Contribution Plan
Defined contribution plans such as provident fund etc. are charged to the statement of profit and loss as and when incurred. Contribution
to Superannuation fund and National Pension Scheme, a defined contribution plan is made in accordance with the company's policy and is
recognised in the Statement of Profit and Loss.
3.13 Operating and Other Income
i. Revenue from Sale of Products
Revenue from contracts with customers is accounted for only when it has commercial substance, and all the following criteria are met:
(i) parties to the contract have approved the contract and are committed to perform their respective obligations;
(ii) each party's rights regarding the goods or services to be transferred and payment terms there against can be identified; and
(iii) consideration in exchange for the goods or service to be transferred is collectible and determinable.
Revenue from contract with customers is recognized on satisfaction of performance obligation, when control over the goods or services has
been transferred and/or goods/ services are delivered/ provided to the customer. Delivery occurs when the goods have been shipped or
delivered to a specific location, and the customer has either accepted the goods under the contract or the company has sufficient evidence
that all the criteria for acceptance have been satisfied.
Revenue is measured at the amount of transaction price (consideration specified with the customers) allocated to that performance
obligation. The transaction price of goods sold is net of variable consideration on account of rebates, claims and discounts, returns, Goods
and Service Tax (GST) and such other taxes collected on behalf of third party not being economic benefits flowing to the company are
excluded from revenue. Accumulated experience is used to estimate and provide for the discounts/ right of return, using the expected value
method.
A refund liability is recognized for expected returns in relation to sales made and corresponding assets are recognized for the products
expected to be returned.
The company recognises as an asset, the incremental costs of obtaining a contract with a customer, if the company expects to recover those
costs. The said asset is amortised on a systematic basis consistent with the transfer of goods or services to the customer.
ii. Interest, Dividend and Claims
Dividend income is recognized when the right to receive payment is established. Interest has been accounted using effective interest
rate method. Insurance claims/ other claims are accounted as and when admitted / settled.
iii. Export Benefits
Export incentives are accounted for in the year of export if the entitlements and realisibility thereof can be estimated with reasonable
accuracy and conditions precedent to such benefit is fulfilled.
3.14 Borrowing Costs
Borrowing cost comprises of interest and other costs incurred in connection with the borrowing of the funds. All borrowing costs general or
specific are recognized in the Statement of Profit and Loss using the effective interest method except to the extent attributable to qualifying
Property, Plant and Equipment (PPE) which are capitalized to the cost of the related assets. A qualifying PPE is an asset, that necessarily
takes a substantial period of time to get ready for its intended use or sale. Borrowing cost also includes exchange differences to the extent
considered as an adjustment to the borrowing costs.
3.15 Non-current assets (or disposal groups) held for sale
Non-current assets held for sale are presented separately in the balance sheet when the following criteria are met:
- the Company is committed to selling the asset;
- the assets are available for sale immediately;
- an active plan of sale has commenced; and
- Sale is expected to be completed within 12 months.
Assets held for sale and disposal groups are measured at the lower of their carrying amount and fair value less cost to sell. Assets held for
sale are no longer amortised or depreciated.
Non-current asset classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities of a Non¬
current asset classified as held for sale are presented separately from other liabilities in the balance sheet.
3.16 Government Grants
Government grants are recognized on systematic basis when there is reasonable certainty of realization of the same. Revenue grants
including subsidy/rebates are credited to the Statement of Profit and Loss Account under "Other Operating Income” or deducted from the
related expenses for the period to which these are related. Grants which are meant for purchase, construction or otherwise acquire non
current assets are recognized as Deferred Income and disclosed under Non Current Liabilities and transferred to the Statement of Profit
and Loss on a systematic basis over the useful life of the respective asset. Grants relating to non-depreciable assets is transferred to the
Statement of Profit and Loss over the periods as specified for meeting the obligations related to such grants.
3.17 Taxes on Income
Income tax expense representing the sum of current tax expenses and the net charge of the deferred taxes is recognized in the Statement
of Profit and Loss except to the extent that it relates to items recognized directly in equity or other comprehensive income.
Current income tax is provided on the taxable income and recognized at the amount expected to be paid to or recovered from the tax
authorities, using the tax rates and tax laws that have been enacted by the end of the reporting period.
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the Financial Statements
and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable
temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable
that taxable profits will be available against which those deductible temporary differences can be utilized.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset related current tax assets against current tax
liabilities and when these relate to the same taxation authority. Current tax assets and tax liabilities are offset where the Company has a legally
enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the
asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and adjusted to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be utilized.
Deferred tax items in correlation to the underline transactions relating to Other Comprehensive Income and Equity are recognised in Other
Comprehensive Income and Equity respectively.
3.18 Earnings Per Share
Basic earnings per share are computed by dividing the net profit/(loss) attributable to the equity holders of the company by the weighted
average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit
attributable to the equity holders of the company by the weighted average number of equity shares considered for deriving basic earnings
per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential
equity shares.
3.19 Segment Reporting
Operating segments are identified and reported taking into account the different risk and return, organisation structure and in a manner
consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM). CODM is responsible for allocating resources
and assessing performance of the operating segments, financial results, forecasts or plan for the segment and accordingly is identified as the
chief operating decision maker.
The Company has identified one reportable segment "Pipes and Fittings” being primary segment and all other activities revolve around the
main business based on the information reviewed by the CODM.
4. Critical accounting judgments, assumptions and key sources of estimation and uncertainty
The preparation of the financial statements in conformity with the measurement principle of Ind AS requires management to make estimates,
judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts
of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues
and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates.
Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Differences
between the actual results and estimates are recognized in the year in which the results are known / materialized and, if material, their effects are
disclosed in the notes to the financial statements.
Application of accounting policies that require significant areas of estimation, uncertainty and critical judgments and the use of assumptions in
the financial statements that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the
next financial year are discussed below. The notes dealt with in 4.1 to 4.8 below provide an overview of the areas that involved a high degree of
judgement or complexity and of items which are likely to be materially adjusted due to estimates and assumptions turning out to be different than
those originally assessed. Detailed information about each of these estimates and judgements are included in the relevant notes together with
information about basis of calculation of each affected line item in the financial statements.
4.1 Depreciation / amortization and impairment on Property, Plant and Equipment / intangible assets/ ROU
Property, Plant and Equipment and Intangible Assets are depreciated/ amortised on straight-line /written down value basis over the
estimated useful lives in accordance with Schedule II of the Companies Act, 2013 or as estimated by the management, taking into account
the estimated residual value, wherever applicable. ROU are depreciated on a straight line basis over the shorter of the lease term and useful
life of the underlying asset. The Company reviews the estimated useful lives of the assets regularly in order to determine the amount of
depreciation / amortization and amount of impairment if any to be recorded during any reporting period. This reassessment may result in
variation in the amount of depreciation and amortisation in future period.
The company reviews carrying value of Tangible/ Intangible and ROU Assets whenever there is objective evidence that the assets are
impaired. In such situation Assets' recoverable amount is estimated which is higher of asset's or cash generating units (CGU) fair value less
cost of disposal and its value in use. In assessing value in use the estimated future cash flows are discounted using pre-tax discount rate
which reflect the current assessment of time value of money. In determining fair value less cost of disposal, recent market realisations are
considered or otherwise in absence of such transactions appropriate valuations are adopted. Accordingly, these assets have been carried
forward at their respective carrying value and no provision on account of impairment thereagainst as such have been considered necessary.
4.2 Impairment of Investments in Subsidiaries and Joint Ventures
The company reviews its carrying value of investments in Subsidiaries and Joint Venture carried at cost/ deemed cost (net of impairment if
any) annually or more frequently when there is an indication for impairment. If the recoverable amount is less than its carrying amount the
impairment loss is accounted for in the Statement of Profit and Loss. Accordingly, no further provision on account of impairment have been
considered in these financial statement.
4.3 Right-of-use assets and lease liability
Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or
terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on
a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be
exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the
lease term, costs relating to the termination of the lease and the importance of the underlying asset to the company's operations taking into
account among other thing, the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods
is reassessed to ensure that the lease term reflects the current economic circumstances.
4.4 Claims and Compensation
Claims including insurance claims / arbitration claim are accounted for on determination of certainty of realisation thereof. Compensation
receivable against coal mine (refer note no. 49) pending final acceptance or settlement thereof has not been given effect to, as the amount
expected to be realised in this respect as dealt in the said note has not been considered to be less than the carrying amount of the relevant
assets and other recoverables. In respect of certain other claims as dealt with in note no. 52(ii), compensation already awarded in respect of
such claims are disputed and matters are pending before the judicial authorities or the time limit for appeal before the authorities has not
expired. Pending final decision on these matters, these have been disclosed as Contingent Assets as at the end of the reporting period.
4.5 Impairment allowances on trade receivables
The Company evaluates whether there is any objective evidence that trade receivables are impaired and determines the amount of
impairment allowance as a result of the inability of the customers to make required payments. The Company bases the estimates on the
ageing of the trade receivables balance, credit-worthiness of the trade receivables and historical write-off experience. In case of variation in
financial condition the amount of impairment as recognised may vary having a significant impact on the Financial Statement.
4.6 Income taxes
Significant judgment is required in determination of taxability of certain income and deductibility of certain expenses during the estimation
of the provision for income taxes. Also there are matters pending before various judicial authorities outcome whereof are uncertain. Further,
material judgement and assumptions are involved for arriving at timing differences and consequential adjustments on account of deferred
taxation are given effect to wherever there are uncertainties leading to the variations in earlier assumptions.
4.7 Defined benefit obligation (DBO)
The present value of the defined benefit obligations and long term employee benefits depends on a number of factors that are determined
on an actuarial basis using a number of assumptions. An actuarial valuation critical estimate of the DBO involves a number of critical
underlying assumptions such as standard rates of inflation, mortality, discount rate, anticipation of future salary increases etc. as estimated
by Independent Actuary appointed for this purpose by the Management. Variation in these assumptions may significantly impact the DBO
amount and the annual defined benefit expenses.
4.8 Provisions and Contingencies
Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from
past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the
liability requires the application of judgement to existing facts and circumstances, which can be subject to change.
Management judgment is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/litigations/
against the Company as it is not possible to predict the outcome of pending matters with accuracy.
The carrying amounts of provisions and liabilities and estimation for contingencies are reviewed regularly and revised to consider changing
facts and circumstances.
Notes :
5.1 Plant and Equipments of Rs. 4,06.72 lakhs (previous year Rs. 4,07.72 lakhs) being contribution for laying the power line, the ownership of which
does not vest with the Company.
5.2 Railway Siding represents the cost of construction of the assets allowed to be used over the specified period as per the terms of the agreement.
5.3 Freehold land includes
(a) Rs. 32,49.00 lakhs (previous year Rs. 32,49.00 lakhs) pertaining to Parbatpur Coal Mine which has been vested to an another successful
bidder as dealt with in note no. 49, and also includes Rs. 3,35.81 lakhs (previous year Rs. 3,35.81 lakhs) in respect of which the execution of
conveyance deeds is pending.
(b) Rs. 2,75.27 lakhs (previous year Rs. 2,75.27 lakhs) towards contribution in relation of Joint Venture Company "North Dhadhu Mining
Company Private Limited" (refer note no. 8.2).
5.4 Freehold land includes Rs. 18,89.04 lakhs (previous year Rs. 18,89.04 lakhs) acquired on merger of erstwhile Mahadev Vyapar Private Limited and
Rs. 1,96,39.06 lakhs (previous year Rs. 3,51,50.37 lakhs) on merger of erstwhile Srikalahasthi Pipes Limited (SPL) pending execution of the deeds
in favour of the company.
5.5 Freehold land includes land amounting to Rs. 2,94,93.58 lakhs (previous year Rs. 2,94,93.58 lakhs) situated at Elavur plant of the Company and are
mortgaged in the favour of lender to ESL Steel Limited, an erstwhile associate of the Company. (Also refer note no. 9.1)
6.1 Right to use under WIS represents cost incurred in connection with wagon procured under "Wagon investment Scheme" (WIS) and handed over
to the railway authorities for their normal operations and ensuring the availability of the wagons on priority for transportation etc. as and when
required.
The company being deprived of the availability of the wagons as per the WIS had terminated the agreement with South Eastern Railway (SER) and
lodged a claim of Rs. 2,32,44.82 lakhs for compensation in this respect. Arbitration award pursuant to the claim for compensation amounting to
Rs. 2,52,85.27 lakhs (including interest) has been allowed in favour of the Company. Meanwhile, the company filed an application for execution
of the balance amount due/payable by SER under the award against which subsequently on June 27, 2024, the Hon'ble Calcutta High Court
has directed SER to deposit additional sum of Rs. 60,00.00 lakhs against interest accrued till June 20, 2024. SER objected to the said award and
the matter is currently pending before the Hon'ble Calcutta High Court. Pending decision of the Hon'ble Court, Rs. 3,12,85.27 lakhs as decided
including interest as stated above has been deposited by SER. The company on submission of the Bank Guarantee has withdrawn Rs. 3,10,32.42
lakhs (net of Rs. 2,52.85 lakhs on account of commission and other charges) which has been deposited in fixed deposit with bank (refer note no.
10.1) and equivalent amount towards liability, if any arising on account of the guarantee issued has been recognised (refer note no. 24) in these
financial statements.
8.1 The Company has acquired 99.11% of the equity shares of Singardo International Pte Limited ("Singardo") at a consideration of SGD 64,42,450
and remitted the entire consideration equivalent to Rs 41,48.97 lakhs on October 7, 2024. The company holds 0.89% of equity shares in
Singardo and on transfer of the equity shares acquired as above in favour of the company, Singardo with effect from October 22, 2024 i.e. the
date of transfer has become a wholly owned subsidiary of the company. On Singardo, becoming the wholly owned subsidiary, the company in
accordance with the policy being followed has designated it to be measured at cost. Accordingly, the amount lying in the Other Comprehensive
Income (net of tax) amounting to Rs. 22.55 lakhs has been transferred to retained earning.
8.2 (a) The North Dhadhu Coal Block located in the state of Jharkhand was allocated to the Company, Amalgam Steel & Power Limited ('ASPL'),
Jharkhand Ispat Private Limited ('JPL') and Pawanjay Steel & Power Limited ('PSPL') (collectively referred to as 'venturers') for working
through North Dhadhu Mining Company Private Limited ('NDMCPL'), a joint venture company. The Company has joint control (proportion
of ownership interest of the Company being 48.98%) along with other venturers represented by investment of Rs. 8,22.81 lakhs in equity
shares of NDMCPL.
(b) Pursuant to the Order dated September 24, 2014 issued by the Hon'ble Supreme Court of India ('the Order') followed by the Ordinance
promulgated by the Government of India, Ministry of Law & Justice ('legislative department') dated October 21, 2014 ('Ordinance') for
implementing the Order, The Ministry of Coal, Government of India had issued an order for de-allocation of North Dhadhu Coal Block.
*figures below rounding off limit
9.1 (a) The Company holds 19796000 equity shares (previous year 19796000 equity shares) of Rs. 10 each in ESL Steel Limited ('ESL') out of which
17334999 equity shares (previous year 17334999 equity share) of Rs. 10 each amounting to Rs. 43,11.21 lakhs were pledged with the
consortium of lenders of ESL ('lenders'). The notices issued by the lenders for invocation of pledge of company's investment was set aside
by the Hon'ble High Court at Calcutta in earlier year and the company's plea for release of such pledge is pending before the said High
Court.
(b) Further, in earlier years, certain land amounting to Rs. 2,94,93.58 lakhs (previous year Rs. 2,94,93.58 lakhs) of the company, situated at Elavur,
Tamil Nadu were mortgaged to another lender SREI Infrastructure Finance Limited ('SREI') of ESL and SREI had subsequently assigned it's
right in the said property to an Asset Reconstruction Company ('ARC') although the claims of the said lender were fully discharged by
ESL as per the Resolution Plan approved by Hon'ble National Company Law Tribunal ('NCLT'), Kolkata. Subsequently, the ARC had issued
SARAFESI Notice and taken the symbolic possession of the said land. The Company had disputed the alleged assignment of the loan by
the lender and as directed by the Hon'ble Supreme Court had filed an application before the Debt Recovery Tribunal ('DRT'), Chennai for
setting aside the SARAFESI actions and release of the title deeds of the land which vide order dated April 08, 2022 (uploaded on April 27,
2022) had been dismissed by DRT. On filing the appeal before the Debt Recovery Appellate Tribunal ('DRAT') against the order of DRT, DRAT
has directed the Company to deposit 50% of the SARAFESI demand i.e. Rs. 2,93,55.04 lakhs (previous year Rs. 2,93,55.04 lakhs) against
which revision application under Article 227 of the Indian Constitution and a Writ Application under Article 226 of Indian Constitution has
been filed before Hon'ble Madras High Court and the matter is pending before the said court.
Earlier, the ARC had also filed an application before the Hon'ble NCLT, Cuttack for initiation of Corporate Insolvency and Resolution Process
('CIRP') against the Company which had been decided in the favour of the Company vide NCLT order dated June 24, 2022 ('the Order'). The
said order on being challenged by ARC has been upheld by NCLAT vide it's order dated January 24, 2024 and thereby the order dismissing
the application of ARC by NCLT as above stands valid and effective. The judgement of NCLAT has been challenged by the ARC before
Hon'ble Supreme Court of India which is yet to be decided by the said court.
(c) Pending finalization of the matters as per (a) and (b) above, the assets have been carried forward at their book value.
20.1 The Company has only one class of shares referred to as equity shares having a par value of Re. 1/-. Each holder of equity shares is entitled to one
vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company, after distribution
of all preferential amounts, in proportion of their shareholding.
20.2 The company had allotted 2579344 warrants convertible into or exchangeable for 1 (one) fully paid up equity shares of the company having
face value of Re. 1 each on preferential basis to Promoter/Promoter Group on December 27, 2022. On receipt of the entire consideration in this
respect and on exercise of the conversion entitlement pursuant to the warrants issued earlier, 23579344 Equity Shares of Re. 1 each have been
allotted at the issue price of Rs. 42.41 each on January 24, 2024 to the warrant holders (Promoters/ Promoter Groups) thereof as on that date.
Accordingly, Rs. 2,35.79 lakhs being the face value of the Equity Shares has been credited to Equity Share Capital and balance Rs. 97,64.21 lakhs
was transferred in the previous year to Securities Premium.
21.1 Capital Reserve
The reserve was created on account of forfeiture of warrants convertible into equity shares.
21.2 Capital Reserve on Amalgamation
Capital Reserve on Amalgamation represent the excess of consideration paid i.e. equity shares issued with respect to net assets and
reserves acquired consequent to amalgamation of erstwhile Mahadev Vyapaar Private Limited and Srikalahasthi Pipes Limited amounting to
(Rs. 14,86.46 lakhs) and (Rs. 4,25,39.34 lakhs) respectively.
21.3 Securities Premium
Securities Premium Reserve represents the amount received in excess of par value of securities and is available for utilisation as specified under
Section 52 of Companies Act, 2013.
21.4 General Reserve
General Reserve is a free reserve which is created by transfer of profit from retained earnings. As the Reserve is created by a transfer from one
component to another, it is not an item of OCI. Item included in General Reserve is not reclassified subsequently to Statement of Profit and
Loss.
21.5 Retained Earnings
Retained earnings generally represents the accumulated undistributed surplus earnings of the company. This includes Rs. 12,66,79.28 lakhs
(previous year Rs. 11,85,80.02 lakhs) represented by changes in carrying amount of Property, Plant and Equipments being measured at fair value
as on the date of transition as deemed cost. Further unrealised loss of Rs. 9,84,10.67 lakhs (previous year Rs. 9,84,10.67 lakhs) due to changes in
carrying amount of investment has also been adjusted to the retained earning. Thereby Rs. 2,82,68.61 lakhs (previous year Rs. 2,01,69.35 lakhs)
being represented by changes in carrying value of assets in terms of provisions of Companies Act 2013 is not available for distribution. This
also includes other comprehensive income of (Rs. 2,43.19 lakhs) (previous year (Rs. 1,54.66 lakhs)) relating to remeasurement of defined benefit
plans (net of tax) which cannot be reclassified to statement of profit and loss.
21.6 Other Comprehensive Income
Other Comprehensive Income (OCI) represent the balance in equity for items to be accounted under OCI and comprises of the following:
i) Items that will not be reclassified to Profit and Loss
a. The company has elected to recognise changes in the fair value of non-current investments in equity (other than in subsidiaries and joint
ventures) in OCI. This reserve represents the cumulative gains and losses arising on equity instruments being measured at fair value. The
company transfers amounts from this reserve to retained earnings when the relevant equity securities are disposed.
b. This also includes actuarial gains and losses arising on defined benefit obligations recognised in OCI which is transferred to retained
earning as stated in note no. 21.5
21.7 Subsequent to the Balance Sheet date, the Board of Directors at its meeting held on May 10, 2025 has recommended a final dividend of Rs. 1.40
per equity share to be paid on fully paid up equity shares in respect of financial year ended March 31, 2025. The equity dividend is subject to
approval by the shareholders at the ensuing Annual General Meeting and has not been included as a liability in these financial statement. The
estimated amount of final dividend to be paid thereof amounts to Rs. 86,54.58 lakhs.
22.1.2 Rupee Term Loan of Rs. 50,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant
and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit
and Freehold Land at Haldia. The outstanding as on March 31, 2025 is Rs. 14,74.07 lakhs (previous year Rs. 14,74.07 lakhs) and is repayable in 6
equal quarterly installments starting from April 2025.
22.1.3 Rupee Term Loan of Rs. 60,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant
and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit
and Freehold Land at Haldia. The outstanding as on March 31,2025 is Rs. 23,73.90 lakhs (previous year Rs. 23,73.90 lakhs) and is repayable in 19
structured monthly installments starting from April 2025.
22.1.4 Rupee Term Loan of Rs. 2,98,50.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant
and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit
and Freehold Land at Haldia. The outstanding as on March 31,2025 is Rs. 1,89,04.00 lakhs (previous year Rs. 2,74,23.00 lakhs) and is repayable
in 12 structured quarterly installments starting from June 2025.
22.1.5 Rupee Term Loan of Rs. 75,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant
and Equipment and other intangible assets, both present and future, of the Company other than assets located at Elavur and Srikalahasthi unit
and Freehold Land at Haldia. The outstanding as on March 31, 2025 is Rs. 18,79.88 lakhs (previous year Rs. 33,60.83 lakhs) and is repayable in 5
equal quarterly installments starting from June 2025.
22.1.6 Rupee Term Loan of Rs. 45,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant
and Equipment, both present and future, of the Company located at Srikalahasthi unit. The outstanding as on March 31, 2025 is Rs. 12,89.99
lakhs (previous year Rs. 25,77.11 lakhs) and is repayable in 4 structured quarterly installments starting from May 2025.
22.1.7 Rupee Term Loan of Rs. 2,00,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant
and Equipment and other intangible assets, both present and future, of the Company located at Srikalahasthi unit. The outstanding as on March
31,2025 is Rs. 98,88.73 lakhs (previous year Rs. 98,88.73 lakhs) and is repayable in 12 structured quarterly installments starting from June 2025.
22.1.8 Rupee Term Loan of Rs. 1,20,00.00 lakhs from a bank is secured by way of first pari-passu charge on all immovable and movable Property, Plant
and Equipment, both present and future, of the Company located at Srikalahasthi unit. The outstanding as on March 31, 2025 is Rs. 19,17.07
lakhs (previous year Rs. 23,96.34 lakhs) and is repayable in 16 equal quarterly installments starting from June 2025.
22.2 The interest rate for the above loans ranges from 7.60% to 8.30%. p.a.
22.3 The outstanding balances disclosed in note 22.1 are based on the amortised cost in accordance with Ind AS 109 "Financial Instruments".
22.4 There are no registration/satisfaction of charges pending with Registrar of Companies beyond the statutory period as on the Balance Sheet
date.
24.1 The company started construction of a private siding at Durgachak near Haldia in 2007 which was completed in 2009. However, the
commissioning of the siding was withheld by the Railways thereby jeopardising company's investment of Rs. 40,96.00 lakhs in the project.
South Eastern Railways (SER) had withdrawn all permissions against the siding and raised demand of Rs. 3,25.00 lakhs towards Land Licensing
Fees and liquidated damages for the period from 2012-13 till April 28, 2017 and being aggrieved by said decision of SER, the company had
filed an application before the Hon'ble Calcutta High Court for appointment of a Sole Arbitrator and by order dated July 01, 2019, the court
appointed Sole Arbitrator in the matter.
The company had submitted its final claim before the Tribunal for refund of costs incurred for the siding and excess Land Licensing fees paid
by it, alongwith compensation for loss of business etc. and interest till realization of the dues. The arbitration award allowing the claim of Rs.
2,28,00.02 lakhs was granted on January 03, 2024 in favour of the company including the amendment thereto made by supplementary award
dated February 16, 2024. During the year, the company has filed an application for execution of award before the single bench of Hon'ble
Calcutta High Court wherein the Court has directed SER to deposit Rs. 2,48,96.87 lakhs (inclusive of further interest @18% p.a. for the period
from January 05, 2024 to July 09, 2024) with the Court's Registrar. The said amount has subsequently been deposited by SER alongwith two
applications for setting aside of the arbitral award and for stay of operation of the arbitral award before the single bench of Hon'ble Calcutta
High Court, which is pending for hearing as on this date. Pending this, the company on submission of the Bank Guarantee has withdrawn Rs.
2,48,96.87 lakhs which has been deposited in fixed deposit with bank (refer note no. 10.1) and an equivalent amount towards liability, if any
arising on account of the guarantee issued has been recognised in these financial statements. Adjustment with respect to amount of claim
(refer note 52(ii)(c)) will be given effect to on determination thereof upon final decision on the matter.
28.1 (a) Includes Rs. 9,92.53 lakhs (net) (previous year Rs. 9,92.53 lakhs (net)) being interest received in earlier years in respect of the refund granted
pertaining to Assessment Years 2008-09 to 2015-16, pending decision by Hon'ble High Court at Calcutta pertaining to the grounds
contested by the Income Tax Department against the favourable orders of the Income Tax Appellate Tribunal, Kolkata.
(b) Pursuant to the decision of the Hon'ble High Court at Calcutta in respect of the appeals filed by the Income Tax Department, provision
for income tax amounting to Rs. 36,47.00 lakh being no longer required had been written back during the previous year ended March 31,
2024 pertaining to certain issues relating to assessment years from 2003-04 to 2016-17 decided in favour of the company. Further, interest
(net) on completion of the assessment and/or resolution of the disputed matter had been recognised as Interest Income and included
under Other Income in note no. 36 in the Statement of Profit and Loss during the previous year ended March 31,2024.
(iii) The amounts receivable from customers become due after the expiry of credit period which on an average is ranging between 90 to 270 days.
(iv) Majority of the Company's sales are against advance or are against letters of credit/ cash against documents/ guarantees of banks of national
standing. Where sales are made on credit, the amount of consideration does not contain any significant financing component. As per the terms
of the contract with its customers, either all performance obligations are to be completed within one year from the date of such contracts or
the Company has a right to receive the consideration. Accordingly, the Company has availed the practical expedient in terms of Ind AS 115 and
disclosures with respect to performance obligations remaining unsatisfied (or partially unsatisfied) at the balance sheet date have not been
made.
b) Fair Valuation Techniques
The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date.
The following methods and assumptions were used to estimate the fair values:
1. The fair value of cash and cash equivalents, current trade receivables and payables, current loans, current financial liabilities and assets and
borrowings approximate their carrying amount largely due to the short-term nature of these instruments. The management considers that the
carrying amounts of financial assets and financial liabilities recognised at nominal cost/amortised cost in the financial statements approximate
their fair values. In respect of non current trade receivables and loans, fair value is determined by using discount rates that reflect the present
borrowing rate of the company.
2. A substantial portion of the company's long-term debt has been contracted at floating rates of interest, which are reset at short intervals. Fair
value of variable interest rate borrowings approximates their carrying value subject to adjustments made for transaction cost. In respect of fixed
interest rate borrowings, fair value is determined by using discount rates that reflects the present prevailing rates for similar borrowing in the
market.
3. Investments (other than Investments in Joint Venture and Subsidiaries) traded in active market are determined by reference to the quotes from
the Stock exchanges as at the reporting date. Investment in liquid and short term mutual fund/Alternate Investment Funds, which are classified
as Fair value through Profit and Loss are measured using quoted net assets value at the reporting date and in case of debentures, bonds and
government securities, the net present value at current yield to maturity have been considered. Unquoted investments in shares have been
valued based on the historical net asset value as per the latest audited financial statements.
4. The fair value of derivative financial instruments is determined based on observable market inputs including currency spot and forward rates,
yield curves, currency volatility etc. The said valuation has been carried out by the counter party with whom the contract has been entered with
and management has evaluated the credit and non-performance risks associated with the counterparties and believes them to be insignificant
and not requiring any credit adjustments.
(c) Fair value hierarchy
1. The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at balance sheet date:
2. During the year ended March 31,2025 and March 31,2024, there were no transfers between Level 1, Level 2 and Level 3 except for investment
in Singardo International Pte. Limited as for reasons stated in note no. 8.1.
3. The Inputs used in fair valuation measurement are as follows:
i) Fair valuation of Financial assets and liabilities not within the operating cycle of the company is amortised based on the borrowing rate of
the company.
ii) Derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are
directly or indirectly observable in the marketplace. The inputs used for forward contracts are Forward foreign currency exchange rates
and Interest rates to discount future cash flow.
iii) Unquoted investments in equity shares have been valued based on the amount available to shareholder's as per the latest audited financial
statements wherever available. In case of AIF and Debentures these are based on valuation provided by external agencies.
(d) Derivatives financial assets and liabilities:
The Company follows established risk management policies, including the use of derivatives to hedge its exposure to foreign currency
fluctuations on foreign currency assets / liabilities. The counter party in these derivative instruments is a bank and the Company considers the
risks of non-performance by the counterparty as non-material.
(e) Sale of Financial Assets
In the normal course of business, the Company transfers its bill receivables to banks by way of discounting from them. Under the terms of the
agreements, the Company surrenders control over the financial assets and the transfer is with recourse. Under arrangement with recourse, the
company is obligated to repurchase the uncollected financial assets, subject to limits specified in the agreement with banks. Accordingly, in
such cases the amount transferred are recorded as borrowings in the statement of financial position and cash flows from financing activities. As
at March 31,2025 and March 31,2024 the maximum amount of recourse obligation in respect of financial assets are Rs 4,63,77.11 lakhs and Rs.
5,03,36.40 lakhs respectively.
(f) Financial Risk Management
The Company's activities are exposed to variety of financial risks. The key financial risks includes market risk, credit risk and liquidity risk.
The Company's focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial
performance. The Board of Directors reviews and approves policies for managing these risks. The risks are governed by appropriate policies
and procedures and accordingly financial risks are identified, measured and managed in accordance with the Company's policies and risk
objectives.
1. Market Risk
Market risk is the risk or uncertainty arising from possible market fluctuations resulting in variation in the fair value of future cash flows of
a financial instrument. The major components of Market risks are currency risk, interest rate risk, commodity price risk and other price risk.
Financial instruments affected by market risk includes trade receivables, borrowings, investments in fixed deposit/ Mutual Funds/ Bonds/
Alternative Investment funds and trade and other payables.
i) Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange
rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company's foreign currency
denominated borrowings, trade receivables and trade or other payables.
In order to mitigate forex losses, the Company over and above the natural hedge available against foreign currency transactions has
adopted a comprehensive risk management review system wherein it actively hedges its foreign exchange exposures within defined
parameters through use of hedging instruments such as forward contracts, options and swaps. The Company periodically reviews its risk
management initiatives and also takes experts advice on regular basis on hedging strategy.
The carrying amount of various exposures to foreign currency as at the end of the reporting period are as follows:
ii) Interest rate risk
The company's exposure in market risk relating to change in interest rate primarily arises from floating rate borrowing with banks and
financial institutions. Considering the same, the carrying amount of said borrowing was considered to be at fair value. Borrowings at
fixed interest rate exposes the company to the fair value interest rate risk. The company maintains a portfolio mix of fixed and floating
rate borrowings. As at March 31,2025, approximately 77.82% (previous year 74.28%) of the company's borrowings are at fixed rate and
these being short term borrowings, exposure to interest rate risk becomes minimal.
Further there are deposits with banks which are for short term period are exposed to interest rate risk, falling due for renewal. These
deposits are however generally for trade purposes as such do not cause material implication. Additionally, the company has certain fixed
deposit created in respect of amount withdrawn against claim as dealt within note no. 10.1 which are periodically renewed till the final
settlement.
With all other variables held constant, the following table demonstrates the sensitivity of the finance cost on floating rate portion of
loans and borrowings.
iii) Commodity Risk
The company's revenue is exposed to the market risk of price fluctuation related to sale of products which is generally determined by
market forces. These prices may be influenced by factors such as supply and demand, production costs (including cost of raw material
inputs) and global and regional economic conditions and growth. Adverse changes in any of these factors may reduce the revenue of the
company. The company is also subject to fluctuation in prices of iron ore, coking coal, Ferro alloys, zinc and other raw material inputs.
The company aims to sell the products at prevailing market prices. Similarly, the company procures key raw material based on prevailing
market rates. However, these contracts with the customers generally with a delivery period of 90-180 days, results in the mismatch of cost
and sales realisation. Further the lead time for procurement of imported material consisting of coal and other ferrous products also have
an impact on profitablity.
iv) Other price risk
The Company's equity exposure in Subsidiaries and Joint Ventures are carried at cost or deemed cost and these are subject to impairment
testing as per the policy followed in this respect. The company's current investments are fair valued through profit and loss and non
current investment at fair value through OCI. The company invests in mutual fund schemes, AIF and Debentures of leading fund houses.
Such investments are susceptible to market price risk that arise mainly from changes in interest rate which may impact return and value of
such investments. However, given the relatively short tenure of underlying portfolio in which the company has invested, such price risk is
not significant.
2. 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). Majority of the Company's sales are
against advance or are against letters of credit/ cash against documents/ guarantees of banks of national standing and thereby credit risk
is minimal. The management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Major water
infrastructure projects are Government funded or foreign aided and the risk involved in payment default is minimum with respect to these
customers. Besides, export receivables are primarily from subsidiaries and sales made by them is covered under Credit Insurance. The
Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends
and ageing of accounts receivable. Individual risk limits are set accordingly. Further, the company obtains necessary security including
letter of credits and/or bank guarantee to mitigate its credit risk.
The carrying amount of respective financial assets recognised in the financial statements, (net of impairment losses) represents the
Company's maximum exposure to credit risk. The concentration of credit risk is limited due to the customer base being large and unrelated.
Of the trade receivables balance at the end of the year (other than subsidiaries), there are no single customer accounted for more than
10% of the accounts receivable and 10% of revenue as at March 31,2025 and March 31,2024. The company takes collateral or other credit
enhancements to secure its credit risk.
The Company extends credit to customers as per the internal credit policy. Any deviation are approved by appropriate authorities, after
due consideration of the customers credentials and financial capacity, trade practices and prevailing business and economic conditions.
The Company's historical experience of collecting receivables and the level of default indicate that credit risk is low and generally uniform
across market. Consequently, trade receivables are considered to be a single class of financial assets. All overdue customer balances are
evaluated taking into account the age of the dues, specific credit circumstances, the track record of the customers etc. The company
computes credit loss allowance based on a matrix of historically observed default rates over the expected life of trade receivables and is
adjusted for forward-looking estimates.
Financial assets that are neither past due nor impaired
Cash and cash equivalents, investment and deposits with banks are neither past due nor impaired. Cash and cash equivalents with banks
are held with reputed and credit worthy banking institutions.
Financial assets that are past due but not impaired
Trade receivables that are past due at the end of the reporting period, no credit losses there against are expected to arise. The company
also takes advance, letter of credit and bank guarantee from its customers, which mitigates the credit risk to that extent.
3. LIQUIDITY RISK
The company determines its liquidity requirement in the short, medium and long term. This is done by drawing up cash forecast for short
term and long term needs. The company manages its liquidity risk in a manner so as to meet its normal financial obligations without any
significant delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate
cash and cash equivalent. The management has arranged for diversified funding sources and adopted a policy of managing assets with
liquidity monitoring future cashflows and liquidity on a regular basis. Surplus funds not immediately required are invested in certain
mutual funds, AIF, bonds, debentures, fixed deposits etc. which provide flexibility to liquidate. Besides, the current committed line of credit
are sufficient to meet its short to medium term fund requirement.
i) Liquidity and interest risk tables
The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment
periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which
the Company can be required to pay. The tables shows principal cash flows as at balance sheet date:
* Include Rs 1,97.30 lakhs as Prepaid Finance Charges.
The company has current financial assets which will be realised in ordinary course of business. The Company ensures that it has sufficient
bandwidth on demand to meet expected operational expenses. The company relies on mix of borrowings and operating cash flows to meet its
need for funds and ensures that it does not breach any financial covenants stipulated by the lender.
j) CAPITAL MANAGEMENT
The primary objective of the Company's capital management is to ensure that it maintains a healthy capital ratio in order to support its business
and maximise shareholder value. The Company's objective when managing capital is to safeguard their ability to continue as a going concern so
that they can continue to provide returns for shareholders and benefits for other stake holders. The Company is focused on keeping strong total
equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required without affecting
the risk profile of the Company.
b) Post Employment Defined Benefit Plans
Post Employment Defined Benefit Plans are managed by Life Insurance Corporation of India and ICICI Prudential Life Insurance Company
Limited. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes
each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final
obligation. Details of such funds are as follows:
Gratuity (Funded)
The company's gratuity scheme, a defined plan is as per the Payment of Gratuity Act 1972, covers the eligible employees and is administered
through gratuity fund trust. Such gratuity fund, whose investments are managed by Life Insurance Corporation of India and ICICI Prudential
Life Insurance Company Limited an insurer makes payment to vested employees or their nominee upon retirement, death, incapacitation or
cessation of employment of an amount based on the respective employee's salary and tenure of employment. Vesting occurs on completion
of five year of service. The amount of gratuity payable is the last drawn basic salary per month computed proportionately for 15 days of salary
multiplied for the number of year service.
The following table set forth the particulars in respect of aforesaid defined plan of the company for the year ended March 31, 2025 and
corresponding figure of the previous year:
49. (a) In pursuance of the Order dated September 24, 2014 issued by the Hon'ble Supreme Court of India ('the Order') followed by the Ordinance
promulgated by the Government of India, Ministry of Law & Justice ('legislative department') dated October 21, 2014 ('Ordinance') for
implementing the Order, allotment of Parbatpur coal block ('coal block/mines') to the Company which was under advanced stage of
implementation, had been cancelled w.e.f. April 01,2015. In terms of the Ordinance, the Company was allowed to continue the operations
in the said block till March 31, 2015. Accordingly, the said block had been handed over to Bharat Coking Coal Limited ('BCCL') as per the
direction from Coal India Limited ('CIL') with effect from April 01, 2015 and the same was thereafter allotted to Steel Authority of India
Limited ('SAIL') and pending final determination, compensation of Rs. 83,12.14 lakhs was received. The company also came to understand
that SAIL subsequently handed over back the said coal block to the custody of BCCL.
Following a petition filed by the Company, the Hon'ble High Court at Delhi had pronounced its judgement on March 09, 2017. Accordingly,
based on the said judgement, the Company has so far claimed Rs. 15,49,44.48 lakhs towards compensation against the said coal block
and acceptance of the same is awaited. The Nominated Authority appointed for deciding the amount of compensation had upheld its
decision of compensation already paid which was set aside by the Hon'ble High Court with a direction to the Nominated Authority to
reconsider the same. The Nominated authority further passed an order dated November 11, 2019 awarding an additional compensation
of Rs. 1,80.00 lakhs and with a further direction to re-determine the value of certain assets by the appropriate authority. Subsequently,
a newly appointed Nominated Authority ('New Nominated Authority') had appointed a valuer to determine the value of those specified
assets as per the direction of Nominated Authority dated November 11,2019. The company came to understand that valuation report
recommending a valuation of total direct/hard cost for specified assets has been submitted to the New Nominated Authority. Moreover,
the company had also earlier approached the New Nominated Authority/ Ministry of Coal ('Ministry') to reconsider the compensation
determined by the previous Nominated Authority, for land and some other major assets and the final compensation is yet to be decided.
In the meantime, JSW Steel Limited ('JSW') has been declared as successful bidder for Parbatpur Coal Block in "16th Tranche of Auction
Under Coal Mines (Special Provisions) Act, 2015” and vesting order dated June 08, 2023 has been issued by the Ministry of Coal in favour of
JSW. JSW as being claimed by them has taken the physical possession of said coal block and has therefore requested to initiate negotiations
for utilization of movable property/ assets used in coal mining. The Company has approached Hon'ble Delhi High Court in this respect
and the matter is pending as on this date. The company's management is actively pursuing to revise and determine the amount of
entire compensation for the coal block including mine infrastructure and land and all other related assets in terms of Coal Mines (Special
Provisions) Act, 2015 read with judgement dated March 09, 2017 pronounced by the Hon'ble High Court of Delhi and is taking all the
necessary legal and other steps for the same.
Pending finalisation of the matter as above;
(i) Rs. 12,88,84.11 lakhs incurred pertaining to the coal block till March 31,2015 after setting off income, stocks etc. there against as per
the accounting policy then followed by the Company has been continued to be shown as freehold land, capital work in progress,
other fixed assets and other respective heads of account.
(ii) Interest and other finance cost for the year ended March 31,2016 against the fund borrowed and other expenses directly attributable
in this respect amounting to Rs. 95,14.74 lakhs has been considered as other recoverable under current assets; and
(iii) Compensation of Rs. 83,12.34 lakhs so far received and net realisations/claims against sale of assets, advances, input credits etc.
amounting to Rs. 20,90.04 lakhs have been adjusted. Bank guarantee amounting to Rs. 9,20.00 lakhs (previous year Rs. 9,20.00 lakhs)
has been given against the compensation received.
Necessary disclosures and adjustments arising with respect to above and determination of resultant claims will be given effect to on final
acceptance/settlement of the amount thereof.
** Pre Goods & Service Tax (GST), the Company was entitled for benefits under Industrial Promotion scheme of state government. Post implementation
of GST, the amount of incentive as a matter of prudence has not recognised under the scheme for the period from July 01,2017 to March 31,2019.
## In respect of construction of a private siding at Barajamda in Jharkhand for it's Kodilabad Iron Ore Mines, South Eastern Railway (SER) had raised
demands totalling Rs. 25,91.00 lakhs relating to registration fees (one time payment) and Land Licensing Fees upto March 31,2014 which was paid under
protest. The company filed a writ petition against these demands of SER before the Single Bench of Hon'ble Calcutta High Court in 2016 and the demand
was reduced to Rs. 5,96.00 lakhs against which an appeal was filed by SER before the Division Bench on May 02, 2022. The Division Bench has passed a
judgment on February 27, 2025 upholding the order of the Single Bench allowing the company's claim along with interest thereupon and appeal by SER
has been dismissed. The differential amount of Rs. 34,09.00 lakhs (along with interest thereupon till March 31, 2025 ) will be recognised on recovery or
expiry of the period of the appeal etc. by SER.
*Post-employment benefits and other long-term benefits is being disclosed based on actual payment made including those on retirement /
resignation of services, but does not includes provision made on actuarial basis as the same is available for all employees together.
D. Terms and conditions of transactions with related parties
a. The transactions with related parties have been entered at an amount which are not materially different from those on normal commercial
terms. For the year ended March 31, 2025, the company has not recorded impairment of receivable relating to amount owned by the
parties. The measurement is undertaken each financial year considering the financial position of the related party and the market in which
the related party operates.
b. The amounts outstanding are unsecured and will be settled in cash and cash equivalent. No guarantees have been given or received.
c. The remuneration of directors is determined by the Nominations and Remuneration Committee having regard to the performance of
individuals and market trends.
53.1 Details of Loans, Investments and Guarantees covered u/s 186(4) of the Companies Act, 2013:
a) Details of Investments are given under the respective heads (refer note no. 8, 9 and 14).
b) Details of Standby Letter of Credit given by the Company are as follows:
56. Additional Information pursuant to amendments made in Schedule III to the extent applicable to the company (Other than those that
have been disclosed under the respective Notes to the financial statements):
(A) Utilisation of borrowed funds and share premium
(i) The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities (Intermediaries)
with the understanding that the Intermediary shall:
a. 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
b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
(ii) The Company has not received any fund from any persons 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.
(B) Details of crypto currency or virtual currency
The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
(C) Undisclosed income
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax
Act, 1961, that has not been recorded in the books of account.
58. The company has opted for continuing accounting policy in respect of exchange difference arising on reporting of long term foreign currency
monetary items in accordance with Ind AS 101 "First time adoption of Indian Accounting Standards". The unamortised balance in the carrying
amount of Property, Plant and Equipments / capital work in progress is Rs. 2,73,41.22 lakhs (previous year Rs 2,76,58.60 lakhs).
59. These financial statements have been approved by the Board of Directors of the Company on May 10, 2025 for issue to the shareholders for the
adoption.
60. Previous year figures have been regrouped/reclassified wherever necessary to correspond with current year's classification/disclosure.
As per our report of even date
For Lodha & Co LLP For and on behalf of the Board of Directors
Chartered Accountants
Umang Kejriwal Sunil Katial
R. P. Singh Managing Director Wholetime Director & Chief Executive Officer
Partner (DIN: 00065173) (DIN : 07180348)
(Membership No. 052438)
Indranil Mitra Ashutosh Agarwal
Kolkata Company Secretary Wholetime Director & Chief Financial Officer
May 10, 2025 (Membership No. A20387) (DIN : 00115092)
|