Note 1 Corporate Information

Mideast Integrated Steel Ltd, “The Company” is domiciled in India and was incorporated under the provisions of The Companies Act,1956. The Company is having its Registered Office in New Delhi with iron ore mining at Barbil and manufacturing unit at Jajpur, Odisha.

On 31st March 2015, the Company has acquired 181,029,798 (99.28%) Equity Shares and 30,000,000 of 10% Cumulative Redemable Preference Shares of M/s. Maithan Ispat Ltd and thus became Holding Company. During the year, the Company has further acquired 2,25,00,000 Equity Shares and thus holds 32,38,26,010 (99.60%) equity shares as on 31st March, 2018.

The Company is primarily engaged in extraction of iron ore and production of pig iron. As a part of backward integration, the Company has Sinter production facilities and a gas based power plant.

* Out of which 15,43,45,526 (PY-12,17,53,001) equity shares have been pledeged with the lenders of Maithan Ispat Limited. And balance of 1,14,75,000 equity shares would be pledged, totalling to 16,58,20,526 being the 51% of equity shares to be pledged as per agreement.

C) Right, preferences and restrictions attached to shares Equity Shares

The company has one class of equity shares having par value of Rs. 10 each, rank pari passu in all respects including voting rights and entitlement to dividend.

2.1 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

The Company has not received intimation from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Consequently the amount paid/payable to these parties is NIL.

2.2 Disclosure as per Regulation 34 of SEBI (LODR) Regulations, 2015

There are no loans and advances in the nature of loans given to subsidiaries, associates and others and investment in shares of the Company by such parties.

2.3 Details on unhedged foreign currency exposures

The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are given below

3.1 Post retirement benefit plans

3.1a Defined contribution plans

The Company makes Provident Fund contribution to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefit. The Company recognised Rs. 18.11 Mn (PY - Rs. 16.87 Mn) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to the plan by the Company is at rate specified in the rules of the scheme.

3.1b Defined benefit plans

The The Company’s post retirement defined benefit plans include Gratuity which is unfunded. The following table sets out the provision for gratuity amount recognised in the financial statements

3.2 Segment information

The Company’s business activity primariliy falls within a single business segment i.e, Iron and Steel business __and hence there are no disclosures to be made under IND AS 108._

Note The company has acquired 2,25,00,000 (Two Crores Twenty Five Lakhs) equity shares having face value of Rs. 10 31 each aggregating to Rs. 225 Mn. The Company is required to pledge 51% of paid up equity share capital of Maithan Ispat Limited, present and future held by the Company, with the lenders of MIL as a security. In compliance of the said requirement company is required to pledge 16,58,20,526 equity shares with the Lenders. At present the company has pledged 15,43,45,526 equity shares with the lenders and balance 1,14,75,000 equity shares would be pledged by the company in the coming financial year.

Note “In pursuance to the Judgement dated 2nd August, 2017 of Honorable Supreme Court of India, in the matter of

4 Writ Petition (Civil) No. 114 of 2014 (Common Cause v/s Union of India & Others), an amount of Rs. 924.75 crores has been imposed on the Company towards ‘Compensation’ as determined in the said Judgement which was to be paid by 31st December 2017, eventhough the Government Taxes and Royalty was paid on the ores extracted. Since the amount was not paid by the stipulated date, the Honorable Supreme Court ordered to stop mining operations with effect from 1st January 2018.

The Company has however filed a ‘Curative petition’ (Civil) before the Honorable Supreme Court of India challenging the Judgement and which is still pending. Hence provision has not been made for the same in the books of accounts.”

5 Note Based on order dated 25th January 2018 passed in the Court of the 2nd Addl. Civil Judge (Sr. Divn.) Bhubaneshwar, with respect to the litigation with Industrial Promotion & Investment Corporation of India (IPICOL), the company has made a further provision of Rs. 76 crores in the books as the amount payable based on this Order.

6 Note The company intends to convert unsecured loans received from Promoters into Equity in compliance with the provisions of Companies Act 2013 and SEBI (ICDR) Regulations 2009 subject to approval of requisite authority.

7 Note The balances of Debtors, creditors, loans & advances received & given and deposits received & given and inter company balances are subject to confirmations and reconciliations.

Note 8 Previous year’s figures

Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classification / disclosure.