In the earlier years, the Directorate of Enforcement by way of two attachments had provisionally attached the Plant and Machinery under installation at Dagori Integrated Steel Plant situated at Bilha, Bilaspur (Chhattisgarh) and certain property, plant and equipment at Steel Plant Division, Siltara, Raipur to the extent of Rs. 30758.39 Lakhs for alleged misuse of coal raised from Gare Palma IV/4 coal block in Chhattisgarh.

The Adjudicating Authority had confirmed the above provisional attachments. Subsequently, the Appellate Authority stayed both the attachments on an appeal filed by the Company where the matter has been put up for hearing on 23^rd August 2023. The Company has a good case on merits, is likely to succeed in refuting the allegations and does not expect any material liability on the Company on this account.

In the earlier years, after completion of investigation the CBI had filed Charge-Sheet against the Company and Mr. Ramesh Jayaswal, Jt. Managing Director (JMD) alleging misrepresentation and violation of the terms and conditions of the Gare IV/4 Coal Block Allotment Letter and the executed Mining Lease.

The aforesaid action was in connection with FIR of Central Bureau of Investigation (CBI), Economic Offence Wing, New Delhi registered on 22^nd May 2014 against the Company and unknown Public Servants in connection with the allotment of Gare IV/4 Coal Block situated in the State of Chhattisgarh.

On 30^th May 2019, the Special CBI Court, New Delhi, took cognizance of the matter and issued summons against the Company and Mr. Ramesh Jayaswal - JMD. The summons was received by the Company in June, 2019. The Company and Mr. Ramesh Jayaswal had been charged for the offence under Section 120-B/420/406 of the Indian Penal Code.

The Company strongly refutes all the allegations. The Company believes it has a good case on merits and is confident that the Company and Mr. Ramesh Jayaswal -JMD would be able to defend themselves before the authorities during the course of trial.

During the year, active development of project of DRI and Captive Power Plant at Bilaspur, Chhattisgarh remained suspended and accordingly the Company has not capitalised Borrowing Costs as per Ind AS - 23.

CWIP includes Bilha Bilaspur project amounting to Rs. 47969.11 Lakhs (Previous Year Rs. 47646.09 Lakhs) had been put under abeyance on account of cancellation of the captive coal mines of the Company by the Honourable Supreme Court of India. The Company had recognised an impairment provision of Rs. 43670.11 Lakhs (Previous Year Rs. 43347.09 Lakhs) for the same in accordance with the Indian Accounting Standards (Ind AS) 36 - 'Impairment of Assets' and the Project remained suspended during the year.

In accordance with the Indian Accounting Standard (Ind AS) 36 on "Impairment of Assets", during the year, the management carried out an exercise of identifying the assets that may have been impaired in accordance with the said Ind AS. On the basis of a review carried out by the management, there was no further impairment loss on property, plant and equipment and Capital Work in Progress during the year ended 31^st March, 2023.

There are no projects under capital work in progress (CWIP) whose completion is overdue except as stated above and in Note no. 2.09 and 2.10.

falls Under Section 10 A (2) (b) and not under clause (C) thereof, as advised by the State Government in the past.

That in view of above, the company filed Writ Petition No. 2757 of 2020, before the Hon'ble Chhattisgarh High Court, to ensure that the Mining Lease over the subject area is granted in favor of the Company in terms of Section 10 A (2) (b) of the MMDR Act, 1957, upon completion of all the conditions contained therein. Presently the matter is pending for consideration before the Hon'ble High Court.

The Company is also of the view that the Company's above cases are already pending under Section 10A (2) (c) of the Mining Act and the matters are subjudice, therefore the amendments done in Section 10A (2) (b) will not have any impact on the status of the Mines. Further the amendment under the Mining Act in the second Proviso of Section 10A (2) (b) provides that "the holder of a reconnaissance permit or prospecting license whose rights lapsed under the first proviso, shall be reimbursed the expenditure incurred towards reconnaissance or prospecting operations in such a manner as may be prescribed by the Central Government"; accordingly, the Company does not envisage any losses on account of the above amendment.

3.04 The Company had filed Mining Lease applications for Rowghat Iron Ore Deposit, Bastar, Chhattisgarh. The Chhattisgarh State Government (SG) had rejected the same by a common order which was challenged by the Company. The SG had filed a complaint before the Ministry of Mines which had referred the matter to the Chief Vigilance Officer (CVO), which couldn't make out any case against the Company. The revision petition of the Company was allowed and subsequently the Hon'ble Delhi High Court also confirmed the order. The Hon'ble Delhi High Court had specifically observed that the Company had successfully undertaken prospecting operations in the area.

Subsequently in 2012, SG filed a fresh complaint containing the same allegations before the Chief Vigilance Commission (CVC). The Central Bureau of Investigation (CBI) on the directions of the CVC had registered an FIR against the Company alleging certain irregularities. Post completion of the investigations by CBI, the Chargesheet was filed by the CBI before Special CBI Court Nagpur. The Company doesn't expect any financial effect of the above matter under litigation.

16.02 During the year ended 31^st March, 2022, pursuant to the Restructuring Support Agreement (RSA) and Shareholders' Agreement (SHA), on 28^th October 2021, the Company had issued and allotted 30,52,81,848 equity shares to Assets Care & Reconstruction Enterprise Ltd (ACRE) acting in its capacity as trustee of various trusts ("ACRE Trusts") and 2,70,83,333 equity shares to the Promoters / Promoter Group (face value of Rs. 10 each) at the issue price of Rs. 28.80 per share aggregating to Rs. 95721.17 Lakhs.

Accordingly, Rs. 87921.17 Lakhs of the total borrowings from ACRE Trusts and Rs. 5800.00 Lakhs of Advance against Share Application Money and Rs. 2000.00 Lakhs of Inter Corporate Deposits of the Promoters / Promoter Group in the Company were converted into equity shares of the Company.

16.05 Rights of Equity Shareholders

The Company has only one class of equity shares having a face value of Rs. 10/- per share. Each shareholder is eligible for one vote per share held. In the event of liquidation of the Company, the equity shareholders will be entitled to receive any of remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

16.06 There are no shares reserved for issue under options and contracts / commitments.

16.07 Dividend Paid and Proposed of Rs. Nil (Previous Year : Rs. Nil)

NATURE AND PURPOSE OF RESERVES

Capital Reserve

The Capital Reserve was created pursuant to the Scheme of Merger ofthe Steel Division of Corporate Ispat Alloys Limited, Amalgamation of Nagpur Alloy Casting Limited and Capital incentive received from Government of Maharashtra. It shall be utilised in accordance with the provisions of the Companies Act, 2013.

Securities Premium

Securities Premium was created when shares were issued at premium. It shall be utilised in accordance with the provisions of the Companies Act, 2013.

General Reserve

The General Reserve was created pursuant to the Scheme of Amalgamation of Inertia Iron and Steel Industries Private Limited, Merger of Sponge Iron Plant and Power Plant of Corporate Ispat Alloys Limited and Abhijeet Infrastructure Limited. It shall be utilised in accordance with the provisions of the Companies Act, 2013.

Capital Redemption Reserve

Capital Redemption Reserve was created for redemption of Preference Shares. It shall be utilised in accordance with the provisions of the Companies Act, 2013.

Retained Earnings

Retained Earnings represent the accumulated profits/losses made by the Company over the years.

Revaluation Reserve

Revaluation Reserve was created for revaluation of Factory Building and Shed. It shall be utilised in accordance with the provisions of the Companies Act, 2013.

Other Comprehensive Income

Other Comprehensive Income (OCI) represents the amount recognised in Other Equity consequent to remeasurement of Defined Benefit Plan.

Equity Component of Compound Financial Instruments

The Company had received the Interest free Inter Corporate Deposits from the Promoters and under Ind AS the difference between the Fair Value and Transaction Value is recognised as Equity Component of Compound Financial Instruments under Other Equity.

18.01 As per the terms of the Restructuring Support Agreement (RSA) dated 23^rd August 2021, the Company has to refinance its outstanding amount of Term Loans (Refer Note No. 23) and Interest Accrued but not due on Borrowings (Refer Note No. 26) of Assets Care & Reconstruction Enterprise Limited (ACRE) acting in its capacity as trustee of various trusts (ACRE Trusts) on or before 15^th December 2023. The Company has the potential and is confident that it will refinance the term loans on or before the extended date of Refinancing i.e 15^th December, 2023 as per the terms of RSA. Over and above the scheduled debt servicing, the company has already made prepayment as cash sweep of its term loans of Rs. 60884.60 Lakhs for the period from 1^st April 2020 to 31^st March 2023 to reduce its debt obligations significantly.

However as on 31^st March, 2023, in view of IND AS-1 (Presentation of Financial Statements), as the Company does not have an unconditional right to defer the settlement of the liability beyond twelve months from the reporting period of 31^st March, 2023 and the liability is due for refinance on 15^th December, 2023, hence the entire Term loans from ACRE Trusts has now been shown under the head "Current Liabilities".

If the above amount would have been continued to be classified as non-current, the Company's Non-Current Borrowings would have been higher by Rs. 315688.18 Lakhs and consequently the current borrowing would have been lower to that extent.

18.02 The Term Loans from the ACRE Trusts referred to in Note no. 23 & 26 aggregating to Rs. 339288.18 Lakhs (including Rs. 4200.00 lakhs of Interest Accrued but not due shown under the head Other Current Financial Liabilities) are guaranteed by an unconditional and irrevocable personal guarantee provided by Mr. Basant Lall Shaw (Chairman of Company), Mr. Arvind Jayaswal (Managing Director of Company) and Mr. Ramesh Jayaswal (Joint Managing Director of Company). Further the entire Term Loans from the ACRE Trusts are secured by way of pledge of the entire Equity Shares of the Company held by the Promoters and Promoter Group Companies.

18.03 Term loans from the ACRE Trusts referred to in Note no. 23 & 26 aggregating to Rs. 339288.18 Lakhs (including Rs. 4200.00 lakhs of Interest Accrued but not due shown under the head Other Current Financial Liabilities) are secured by way of:

a. a pari passu first charge / equitable mortgage on all the immovable properties of the Company (excluding the ED Attached Assets - Dagori (Bilaspur) and the CIAL Assets acquired under merger), including but not limited to the immovable properties of the Company.

b. a pari passu first charge / equitable mortgage on the Neco Ceramics Land and other immovable assets, if any.

c. a pari passu first charge on all the present and future movable fixed assets of the Company (excluding the ED Attached Assets - Dagori (Bilaspur)), including but not limited to its movable plant and machinery, machinery spares, tools and accessories and movables (except current assets), including but not limited to goodwill, undertaking, uncalled capital and intellectual property rights, present and future howsoever and whosesoever in the possession of the Company.

d. a pari passu second charge on all the present and future current assets of the Company, including but not limited to raw materials, finished and semi-finished goods, book debts, revenue and receivables, claims, consumable stores and marketable securities.

18.04 Term loans from ACRE Trusts referred to in Note no. 23 & 26 aggregating to Rs. 339288.18 Lakhs (including Rs. 4200.00 lakhs of Interest Accrued but not due shown under the head Other Current Financial Liabilities) are to be repaid/refinanced as per the sanction terms as under:

Rs. 195688.18 Lakhs is to be Refinanced by 15^th December 2023 (Extended date of refinance).

Rs. 120000.00 Lakhs is to be Refinanced by 15^th December 2023 (Extended date of refinance).

Rs. 19400.00 Lakhs is repayable in monthly instalments of Rs. 2300.00 Lakhs till the extended date of refinancing as per the terms and conditions of the RSA and the balance outstanding will be waived off in case the refinancing is done before 15^th December, 2023 (Extended date of refinance).

Rs. 4200.00 Lakhs of Interest Accrued but not due shown under the head Other Current Financial Liabilities, is to be Refinanced by 15^th December 2023 (Extended date of refinance).

28.01 During the year 2005, the Government of Chhattisgarh published the Chhattisgarh Upkar (Sansodhan) Adhiniyam, 2004, according to which the Company is liable to pay energy development cess @10 paise per unit generated from its captive power plants. The levy of energy development cess has been disputed by the Company and the matter is pending before the Hon'ble Supreme Court of India.

The Office of the Chief Electrical Inspector, Government of Chhattisgarh, had sent demands for the energy development cess since the Hon'ble Supreme Court of India vide its interim order dated 2^nd November 2007, permitted the department to raise the bill, however it directed that no coercive steps shall be taken by the State to recover the dues till further orders.

The legislative competence of the Government of Chhattisgarh is not under challenge. The Company had been legally advised in the past that it is highly unlikely that the provision by which the State Government has imposed energy development cess will be struck down by the Hon'ble Supreme Court of India. In view of the above and as a matter of prudence, the Company has made a provision of energy development cess aggregating to Rs. 5904.56 Lakhs till 31^st March 2023.

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. In presenting the above sensitivity analysis, the present value of Defined Benefit Obligation has been calculated using the Projected Unit Credit method at the end of reporting period, which is the same as that applied in calculating the defined obligation liability recognised in the Balance Sheet.

32.04 Risk Exposures

These plans typically expose the company to Actuarial risks as Investment Risk, Interest Rate risk, Longevity risk and Salary risk.

Investment Risk The present value of the defined benefit plan obligation is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.

Interest Rate Risk A decrease in the bond interest rate will increase the plan obligation; however, this will be partially offset by an increase in the return on the plan debt investments.

Longevity Risk The present value of the defined benefit plan Obligation is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan's obligation.

Salary Risk The present value of the defined plan liability is calculated by reference to the future salaries of plan

participants. As such, an increase in the salary of the plan participants will increase the plan's obligation.

B Management is of the view that above litigations will not impact significantly the financial position of the Company.

C The Company had received Show Cause notices from the Excise and Goods and Service Tax (GST) department which mainly

relate to demand of duty for sale of exempted goods and denial of credit on structural steel, new plants, railway receipt, bank expenses and outward freight, Demand on CAMPA fund and Royalty etc. The Company has also received a Show Cause notice from the Additional Director General, DGGI, which relates to demand of service tax on amount received against the cancellation of three coal mines/block. The Company does not foresee any losses on this account.

B. Segment Identification, Reportable Segments and definition of each segment :

i. Reportable Segments :

The Company's operating segments are established on the basis of those components that are evaluated regularly by the Chief

Operating Decision Maker, in deciding how to allocate resources and in assessing performance. These have been identified and

reported taking into account the differing risks and returns, nature of products, the organisational structure and the internal

reporting system of the Company.

ii. Primary / Secondary Segment Reporting Format :

a) The risk-return profile of the Company's business is determined predominantly by the nature of its products. Accordingly, the business segments constitute the Primary Segments for disclosure of segment information.

b) Since all the operations of the Company are predominantly conducted within India, there are no separate reportable geographical segments.

c) No Non-Current Assets of the Company is located outside India as on 31^st March, 2023 and 31^st March 2022.

d) No single customer has accounted for more than 10% of the Company revenue for the year ended 31^st March, 2023 and 31^st March, 2022.

iii. Segment Composition :

a) Steel Segment is engaged in manufacture and sale of Pig Iron, Billets, Rolled Products including Alloy Steel, Sponge Iron and includes its captive Power Plants at its unit located at Siltara, Raipur and Mining activities in the state of Chhattisgarh and Maharashtra.

b) I ron and Steel Castings Segment comprises of manufacture and sale of Engineering and Automotive Castings with production facilities at Nagpur in Maharashtra and Anjora in Chhattisgarh.

c) Other Segment comprises of trading of PVC pipes.

d) Unallocated comprises of income, expenses, assets and liabilities which can not be directly identified to any of the above segments.

NOTE : 39 RELATED PARTY DISCLOSURES :

In accordance with the requirements of Ind AS 24, on Related Party Disclosures, name of the related party, related party relationship, transactions and outstanding balances including commitments where control exists and with whom transactions have taken place during reported year, are as detailed below:

ii) Level 2 :- Inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices). It includes fair value of the financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on the Company specific estimates. If all significant inputs required to fair value an instrument are observable then instrument is included in level 2.

iii) Level 3 :- Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs). If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

43.02 Fair Valuation techniques used to determine Fair Value

The Company maintains procedures to value its financial assets or financial liabilities using the best and most relevant data

available. 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:

i) Fair Value of Cash and Cash Equivalents, Other Bank Balances, Trade Receivable, Trade Payables, Current Loans, Current Borrowings, Deposits and other Current Financial Assets and Liabilities are approximate at their carrying amounts largely due to the short-term maturities of these instruments.

ii) The Fair Values of Non-Interest bearing and Concessional Interest bearing Secured Non-current Borrowings is calculated based on discounted cash flows using a lending rate. They are classified as level 2 fair values in the fair value hierarchy due to the inclusion of observable inputs. The Fair Value of Security Deposits are approximate at their carrying amount due to interest bearing features of these instruments.

iii) Fair values of Investment in equity are derived from quoted market prices in active markets.

iv) The Fair Value of the remaining financial instruments is determined using discounted cash flow analysis.

v) The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

43.03 Fair Value Hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation

techniques:-

i) Level 1 :- Quoted prices / published Net Assets Value (unadjusted) in active markets for identical assets or liabilities. It includes fair value of financial instruments traded in active markets and are based on quoted market prices at the Balance Sheet date and financial instruments like mutual funds for which Net Assets Value is published by mutual fund operators at the Balance Sheet date.

NOTE : 44 Financial Risk Management - Objective and Policies

The Company is exposed to Market Risk, Credit Risk and Liquidity Risk. Risk management is carried out by the company under the policy and plan as approved by the Board of Directors. The Risk management plan defines how risks associated with the Company will be identified, analysed, and managed. It outlines how risk management activities will be performed, recorded, and monitored by the Company. The basic objective of risk management plan is to implement an integrated risk management approach to ensure that all significant areas of risks are identified, understood and effectively managed, to promote a shared vision of risk management and encourage discussions on risks at all levels of the organization to provide a clear understanding of risk / benefit trade-offs, to deploy appropriate risk management methodologies and tools for use in identifying, assessing, managing and reporting on risks, and to determine the appropriate balance between cost and control of risk and deploy appropriate resources to manage / optimise key risks. The activities are developed to provide feedback to management and other interested parties (e.g. Audit committee, Board etc.) by way of Action taken report. The results of these activities ensure that risk management plan is effective in the long term.

44.01 Market Risk and Sensitivity:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprise three types of risks: Foreign Currency Rate risk, Interest Rate risk and other Price risks, such as Commodity price risk. Financial instruments affected by market risk include Loans and Borrowings, Deposits and Investments.

The sensitivity analysis relates to the position as at 31^st March, 2023 and 31^st March, 2022.

The sensitivity analysis excludes the impact of movements in market variables on the carrying value of post-employment benefit obligations, provisions and on the non-financial assets and liabilities. The sensitivity of the relevant Statement of Profit and Loss item is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as at 31^st March, 2023 and 31^st March, 2022.

(a) Foreign Currency Exchange Risk and Sensitivity:

Foreign Currency Exchange risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in Foreign Currency Exchange rates. The Company's exposure to the risk of changes in foreign currency exchange rates relates primarily to the Company's operating activities. The Company transacts forex business primarily in USD, SEK and EURO. The Company has foreign currency trade payables and trade receivables and is therefore, exposed to foreign currency exchange risk. The Company regularly reviews and evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies and plan.

The Company prices its Iron and Steel products as per the accepted market practices.

The Company primarily purchases its raw materials (other than captively sourced material) in the open market from third parties or approved suppliers on contract basis. The Company is therefore subject to fluctuations in prices for the purchase of noncoking and coking coal and other raw material inputs. The Company purchased substantially large part of its coal requirement from third parties and approved vendors in the open market during the year ended 31^st March, 2023. The company's major requirement of the Iron ore and fines (major raw materials) is fulfilled from its captive Iron ore mines hence, the commodity price risk of raw materials has been reduced to a great extent.

The Company aims to sell its products at prevailing market prices. Similarly, the Company procures key raw materials like coal based at prevailing market rates. Predominantly the selling prices of steel and castings and that of input raw materials move in the same direction although with a lag effect.

44.02 Credit Risk

Credit risk is the risk that a counter party 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) and from its financing activities, including deposits with banks and other financial instruments.

a) Trade Receivables:

The Company measures the expected credit loss of trade receivables, which are subject to credit risk, based on historical trend, industry practices and the business environment in which the entity operates and adjusted for forward looking information. Loss rates are based on actual credit loss experience and past trends.

The Company has used practical expedient by computing the expected credit loss allowance for trade receivables based on provision matrix. The provision matrix has taken into account historical credit loss experience and adjusted for forward looking information. The expected credit loss allowance is based on ageing of the days the receivables are due.

b) Interest Rate Risk and Sensitivity:

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is having current borrowings in the form of Term Loan. There is a fixed rate of interest in case of Term Loans and hence, there is no interest rate risk associated with these borrowings upto the date of Refinancing. However, the company has to mitigate the Interest rate risk by negotiating with the new lenders for debt refinancing basis robust debt servicing performance under the debt restructuring.

c) Commodity Price Risk:

The Company's revenue is exposed to the market risk of price fluctuations related to the sale of its iron, steel and castings products. Market forces generally determine prices for the products sold by the Company. These prices may be influenced by factors such as supply and demand, production costs (including the costs of raw material inputs), global and regional economic conditions and growth. Adverse changes in any of these factors may reduce the revenue that the Company earns from the sale of its products.

b) Financial Instruments and Cash Deposits:

The Company considers factors such as track record, size of the institution, market reputation and service standards to select the banks with which its balances are maintained. The Credit risk from balances with bank is managed by the Company's finance and treasury department. Investment of surplus funds are also managed by finance and treasury department. The Company does not maintain significant cash in hand. Excess balance of cash other than those required for its day to day operations is deposited into the bank.

For other financial instruments, the finance and treasury department assesses and manages credit risk based on internal assessment. Internal assessment is performed for each class of financial instrument with different characteristics.

44.03 Liquidity Risk:

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. It will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. The Company's objective is to, at all times, maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company relies on short term borrowings and operating cash flows to meet its need for fund.

With implementation of the debt restructuring, the cash flow position of the Company, financial leverage levels, Liquidity position have improved and have resulted in elimination of the financial stress. Restructuring has also led to realignment of debt to sustainable level, the Company has been doing prompt servicing of debt dues as per the Debt Restructuring from the cut-off date of 31^st March, 2020. (Refer Note No. 18).

For the purpose of Company's capital management, capital includes issued capital, all other equity reserves and debt. The primary objective of the Company's capital management is to maximise shareholders value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

The Company monitors capital using gearing ratio, which is Net debt divided by the Total Capital Employed (Equity plus Net Debt). Net debt is non-current and current debts as reduced by cash and cash equivalents, other bank balances, non-current bank deposits and current investments. Equity comprises all components including other comprehensive income.

46.01 The Company was having 5.946 acres leasehold Industrial land in the Light Industrial Area, Bhilai, situated in the Village Chhawani of Tehsil Durg, of the Durg District (Construction Casting Division, Bhilai). The Bhilai Plant setup on this land is not in operations. The Company had entered into an Agreement to Sell on 20^th December 2021 for the sale of the Immovable Properties related to Bhilai Plant to an identified buyer. Accordingly, the Company had received part consideration amounting to Rs. 525.00 Lakhs upto 31^st March 2022 as per the executed agreement. The Company has received the remaining consideration of Rs. 250.00 Lakhs in the financial year ended 31^st March 2023 and has submitted all the necessary documents to District Trade & Industrial Centre (DIC) Bhilai for transfer of the said leasehold land. In view of above, the Company has recognised sale of such leasehold land in the financial year ending 31^st March 2023.

44.04 Competition and Price Risk:

The Company faces competition from local and foreign competitors. Nevertheless, it believes that it has competitive advantage as it sells high quality products and by continuously upgrading its expertise and range of products, it strictly adheres to the delivery schedules to meet the needs of its customers.

50.01 The Company had entered into a Contract for setting up 70 TPD Oxygen Plant on lease basis and for its operations and maintenance with M/S Goyal MG Gases Pvt Ltd (Lessor) in the year 2002-03. Subsequently in the year 2015-16 dispute arose between both the parties on couple of issues and the matter was referred to the Sole Arbitrator for adjudication of dispute.

On August 4, 2017 and corrected vide its order dated on September 15, 2017, the Sole Arbitrator passed an Arbitral Award against the company. As per the Arbitral Award, the claims of the company were rejected, and the counter claims were allowed. The Company challenged the Arbitral Award before the Hon'ble Delhi High Court under the Arbitration and Conciliation Act 1996. The Hon'ble High Court dismissed the appeals filed by the company vide its judgment dated December 21, 2017 and judgement dated April 5, 2018.

The Company then filed Special Leave Petition (SLP) in the Hon'ble Supreme Court which granted stay on August 6, 2018 on any action subject to the Company depositing an amount of Rs. 800.00 Lakhs before the Registry of Hon. Supreme Court. The said amount of Rs. 800.00 Lakhs was deposited by the Company. On September 06, 2022, the Company's SLP has been dismissed by the Hon'ble Supreme Court.Subsequently, Hon'ble High Court vide its order dated November 28, 2022 directed the Company to honour the arbitral award and pay the award amount along with any Interest thereon as per the directions given in the order.

In view of the above, during the year ended 31^st March, 2023, the Company has recognized Rs. 5118.91 Lakhs which has been disclosed as an Exceptional item. In addition to the above, certain matters are yet to achieve finality and which are under consideration of the Hon'ble High Court. The impact of them, if any, will be recognised as and when the same are decided.

50.02 Exceptional items for the year ended 31^st March, 2022 represents write back of borrowings etc. of Rs. 20243.14 Lakhs, reversal of excess interest charged from 1^st April, 2020 to 31^st March, 2021 of Rs. 45517.56 Lakhs (Net of amortisation at effective interest rate) and one-time fair value gain of Rs. 106689.25 Lakhs which is mainly on account of Debt restructuring with Assets Care and Reconstruction Enterprise Limited (ACRE) acting in its capacity as trustee of various trusts which became effective on 23^rd May, 2022 from the cut-off date of 31^st March, 2020.

51.01 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

51.02 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 (whether recorded in writing or otherwise)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.

51.03 The Company has not received any fund from any person(s) or entity(s), including entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the (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.

51.04 The Company does not have any such transaction which is not recorded in the books of account surrendered or disclosed as income during the year in the tax assessments under the Income-tax act, 1961.

51.05 No proceeding has been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

51.06 The Company is not declared wilful defaulter by any bank or financial institution or other lender.

51.07 There is no charge or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.

51.08 The company does not have any borrowings from banks or financial institutions on the basis of security of current assets.

NOTE : 52 Previous Year's figures have been regrouped / rearranged wherever necessary, to make them comparable with those of

current year.