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Notes to Accounts of Maharashtra Seamless Ltd.

Mar 31, 2023

Pursuant to the Scheme of Amalgamation of United Seamless Tubulaar Pvt. Ltd. (Amalgamating company), a wholly owned subsidiary with the Company, as sanctioned by Hon''ble National Company Law Tribunal Mumbai Bench vide order dated 3rd March 2023, the assets and liabilities of the amalgamating Company were transferred to and vested with the Company with effect from the appointed date i.e. 1st October, 2021. Consequently the Authorised Share Capital of Maharashtra Seamless Ltd. (MSL) stand increased due to clubbing of Authorised Share Capital of United Seamless Tubulaar Pvt. Ltd. (USTPL) into MSL.

During Financial year 2022-23 the Authorised Share Capital was reclassified by cancellation of unissued 20,000,000 Preference Shares of '' 10/- each and creation of 40,000,000 Equity Shares of '' 5/- each.

Further increase the Authorized Share Capital by creation of 20,000,000 Equity Shares of '' 5/- each.

Terms / Rights attached to Equity Share

The company has only one class of Equity Shares having a par value of '' 5/-. Each holder of Equity Shares is entitled to one vote per share.

The company declares and pay dividend in Indian rupees. On 26th May 2023 the board of directors recommended a final dividend of '' 5/- per equity share be paid to shareholders for financial year 2022-23, which is subject to approval by the shareholders at the Annual General Meeting. If approved, the dividend would result in a cash outflow of '' 6,699.96 Lakhs.

In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive any of the 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.

The outstanding loan amount as on 31st March 2023 is USD 30.054 million(which is '' 24,709.12 lakhs). External Commercial Borrowing (ECB) facility of USD 40.07 million (which is '' 30,376.99 lakhs) was availed by Company on 31/03/2020 for acquisition of Rig Jindal Explorer from Star Drilling Pte. Ltd. This facility is secured by mortgage and charge on cash flows of specific asset as also general and other assignment. Company would repay the loan amount of USD 49.75 million in 71 installments as per the monthly repayment schedule starting 10th May 2020 (as per repayment schedule).

g) Indian Oil Corporation Ltd. (IOCL) had raised a claim of '' 1,798.48 Lakhs during the financial year 2008-09 & against this claim a performance bank guarantee of '' 852.79 Lakhs which was given to IOCL, was realized by IOCL and an equivalent amount was charged in the Profit & Loss Account in financial year 2008-09. As a dispute had occurred the matter was referred to arbitration. The arbitrator allowed certain claims in favour of the company & certain claims were disallowed. Both IOCL & the company Preferred an appeal before Honourable Delhi High Court. Pending proceedings In the Court IOCL was required to deposit the amount awarded by the Arbitrator in favour of the company in the Court. The Company provided a Bank Guarantee in favour of Registrar General, Delhi High Court for an amount of '' 2,450 Lakhs for securing the amount to be disbursed by the Honourable Court in favour of the company. Consequently the company received an amount of '' 2405.53 Lakhs from the Honourable Court. As the proceedings are currently pending with Honourable Court no adjustments have been made in the accounts & the amount received has been reflected as liability. Necessary adjustments shall be made upon final disposal of appeal.

2.28 The company has imported Capital Goods under the Export Promotion Capital Goods (EPCG) scheme of the Government of India, at concessional rate of duty against the Legal Undertaking (LUT) to fulfil Exports obligations. The duty saved on such import of capital goods during the year amounting to '' 378.82 Lakhs (Previous Year '' 521.57 Lakhs) and for this the company is under an obligation to export goods amounting to '' 1,136.47 Lakhs (Previous Year '' 1,564.73 Lakhs), within a period of eight years, commencing from the date of issue of licenses. The company has, however, fulfilled, the export obligation till date to the extent of '' Nil (Previous Year '' Nil), for which the LUTs are to be discharged.

Pending fulfilment of such future export obligations entails Custom Department a right to enforce the LUT executed by us to the extent of '' 1,136.47 Lakhs (Previous Year '' 1,564.73 Lakhs).

2.29 Estimated amount of contracts remaining to be executed on capital account, net of advances, and not provided for '' 901.44 Lakhs (Previous Year '' 1,323.56 Lakhs).

2.30 The company is entitled to Mega Project Industrial Promotion Subsidy under the Package Scheme of Incentive 2007 approved by the Govt. of Maharashtra, to the extent of 75% of the eligible fixed capital investment at Mangaon or to the extent of taxes paid to the State Govt. less incentive of stamp duty and electricity duty. The incentives period was from 15/11/2013 to 14/11/2022.

Now In accordance with Ind AS 20 (Government Grants), Subsidy has been classified as Deferred Liability and would be recognised in statement of profit and loss on a systematic basis over the periods in which the Company recognises as expenses the related costs for which the grants are intended to compensate.

During the year company recognised deferred revenue '' 4,354.89 (Previous Year '' NIL) and '' 678.37 lakhs (Previous Year ''187.27 Lakhs) had been transferred to Profit & Loss account.

2.31 Dividend income on perpetual preference shares have not been considered as dividend is not declared.

2.32 Dues to micro and small suppliers

Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 2nd October 2006, as amended on 1st June,2020, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the management, the company owes '' 236.07 Lakhs (Previous Year '' 238.35 Lakhs) to Micro and Small Enterprises. However, no interest during the year has been paid or payable in respect thereof. No amount of interest is accrued and remains unpaid at the end of the accounting year.

2.34 In the opinion of the company, the value on realisation of current assets, loans & advances in the ordinary course of the business shall not be less than the amount at which they are stated in the Balance Sheet.

2.35 a) The employees'' gratuity fund scheme managed by LIC of India is a defined benefit plan. The present value of obligation

is determined based on actuarial valuation using the projected unit credit method, which recognises 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. The obligation for leave encashment is recognised in the same manner as gratuity.

2.36 Segment Information

The Group''s operating segments are established on the basis of those components of the group that are evaluated regularly by the Executive Committee (the ''Chief Operating Decision Maker'' as defined in Ind AS 108 - ''Operating Segments''), in deciding how to allocate resources and in assessing performance. These have been identified taking into account nature of products and services, the differing risks and returns and the internal business reporting systems.

The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Others".

Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Others"

Identification of Segments

Business segment: The Company''s operating businesses are organised and managed separately according to the nature of products, with each segment representing a strategic business unit that offers different products. The three identified segments are Steel Pipes & Tubes , Power - Electricity and RIG.

Inter Division transfers of goods, as marketable products produced by separate divisions of the company for captive consumption are made as if sales were to third parties at current market prices and are included in turnover.

Capital Management

The primary objective of the Company''s capital management is to ensure availability of funds at competitive cost for its operational and development needs and maintain a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value.

The Company manages its capital structure and makes changes in view of changing economic conditions. No changes were made in the objectives, policies or process during the year ended 31.03.2023 and 31.03.2022. There have been no breaches of the financial covenants of any interest bearing loans and borrowings for the reported period.

The Company monitors capital structure on the basis of debt to equity ratio. For the purpose of Company''s capital management, equity includes paid up equity share capital and reserves and surplus and effective portion of cash flow hedge and debt comprises of long term borrowings including current maturities of these borrowings.

The following table summarises total debt and equity of the Company:

Fair Value Techniques:

The fair value 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:

a) Fair value of cash and short term deposits, trade receivables, trade payables, current loans, other current financial assets, short term borrowings and other current financial liabilities approximate to their carrying amount largely due to the short term maturities of these instruments.

b) The fair value of investment in quoted Equity Shares and Mutual Funds is measured at quoted price or NAV.

c) All foreign currency loans and liabilities are translated using exchange rate at reporting date Fair Value Hierarchy

The following table provides the fair value measurement hierarchy of Company''s asset and liabilities grouped into Level 1 to Level 3 as described below:

Quoted prices / published Net Asset Value (NAV) in an active markets (Level 1): This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities and financial instruments like mutual funds for which NAV is published by mutual funds. This category consist mutual fund investments and equity share instrument of other companies.

Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market data (that is, unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumption that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

Assets and Liabilities Measured at Fair Value (Accounted)

The fair values of the financial assets and financial liabilities included in the level 2 categories above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties. Following table describes the valuation techniques used and key inputs to valuation for level 2 of the fair value hierarchy as at 31.03.2023 and 31.03.2022.

2.46 Financial Risk Management Objectives and Policies

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s activities exposed to various risk such as market risk, credit risk and liquidity risk.

The sensitivity analyses exclude the impact of movement in market variables on the carrying value of post-employment benefit obligations, provisions and on non-financial assets and liabilities. The sensitivity of the relevant statement of profit and loss item is the effect of the assumed changes in respective market rates. The company''s activities are exposed to varieties of financial risk including the effect of changes in foreign currency exchange rates and interest rates. The company uses derivatives financial instruments such as foreign exchange forward contracts of varying maturity depending upon the underlying contract and risk management strategy to manage its exposures to foreign exchange fluctuation and interest rates.

The Board of Directors reviews and agrees policies for managing each of these risks which are summarised below. Market risk and sensitivity 1. Foreign Currency Risk and Sensitivity

Foreign Currency Risk is the risk that the present exposure or Future Cash Flows will fluctuate because of changes in foreign currency rates. The company follow natural hedging to the extend of inward and outward of forex exposure and takes forward contracts to minimise the risk of fluctuation in foreign exchange rates for remaining amount. Exposures can arise on account of the various assets and liabilities which are denominated in currencies other than Indian Rupee.

3. Credit Risk

Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial loss to the Company. Credit risk arises from Company''s activities in investments, dealing in derivatives and receivables from customers.

The Company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. Credit risk across the Company, is actively managed through Letters of Credit, Bank Guarantees, advance payments and security deposits .

The Company extends credit to customers in normal course of business. The Company considers factors such as credit track record in the market and past dealings for extension of credit to customers. The Company monitors the payment track record of the customers. Outstanding customer receivables are regularly monitored. The company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets.

4. 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.

The Company monitors its risk to a shortage of funds using a recurring liquidity planning tool. This tool considers the maturity of both its financial investments and financial assets (i.e. trade receivables, other financial assets) and projected cash flows from operations. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of working capital loans, letter of credit facility, bank loans and credit purchases.

E. Other Statutory information

i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property

ii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lendor 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.

The Company has not received any fund from any person(s) or entity(is), 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.

iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

v) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

vi) The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.

vii) The Company has complied with the number of layers for its holding in downstream companies prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017

viii) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year.

ix) Relationship with Struck entities *

2.48 Amalgamation of United Seamless Tubulaar Private Limited

National Company Law Tribunal (NCLT) of Judicature Mumbai Bench vide their order dated 3rd March, 2023 respectively sanctioned the scheme of amalgamation of United Seamless Tubulaar Private Limited (USTPL) ("Amalgamating Company"), a subsidiary of Maharashtra Seamless Limited (MSL) ("Amalgamated Company") and their respective shareholders and creditors, pursuant to the provisions of section 230 to 232 and other provisions of the Companies Act, 2013. The scheme became effective upon filing of certified copies of the Orders of the National Company Law Tribunal ofJudicature at Mumbai Bench to Registrar of Companies on 31st March 2023. The scheme is effective from Appointed Date i.e. 1st October, 2021 inter alia provides for the amalgamation of United Seamless Tubulaar Private Limited (USTPL) ("Amalgamating Company"), a subsidiary of Maharashtra Seamless Limited (MSL) ("Amalgamated Company") and upon the Scheme becoming effective, the Amalgamating Company transferred to and be vested in the Amalgamated Company, as a going concern, without any further deed or act, together with all the properties, assets, rights, liabilities, benefits and interest therein, subject to any existing lien or lis pendens, which shall be deemed to be modified subject to the provisions of the Scheme. The amalgamated company acquiures balance equity share of United Seamless Tubulaar Private Limited in April 2022 with that it become a wholly owned subsidiary.

With the scheme becoming effective the amalgamated company account for the amalgamation in the books of accounts were made in accordance with the applicable accounting standards prescribed under section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India and specifically under "Pooling of Interest Method" of accounting as laid down in Appendix C of IND-AS 103 (Business Combinations of entities under common control) as under:

(a) All the assets, liabilities and reserves in the books of USTPL stand transferred to and vested in MSL pursuant to the scheme and recorded by MSL at their carrying amounts as appearing in the books of USTPL, on the Appointed Date;

(b) The carrying amount of investments in the equity shares of the USTPL held by MSL, stand cancelled and there shall be no further obligation in that behalf;

(c) Upon the scheme coming into effect, the surplus /deficit, if any of the net value of assets, liabilities and reserves of USTPL acquired and recorded by the MSL over the value of investments cancelled pursuant to Clause 10.2, adjusted in "Capital Reserve Account" in the financial statements of MSL;

(d) No shares were issued pursuant to the amalgamation as Transferee Company holds the entire capital of Transferor Company

(e) Inter- Company transactions and balances including loans, advances, receivable or payable inter se between the transferor and the transferee Companies as appearing in their books of account, if any, stand cancelled;

(f) Comparative financial information in the financial statements of the MSL restated for the accounting impact of amalgamation, as stated above, as if the amalgamation had occurred from the beginning of the comparative year.

2.49 Previous year figures have been regrouped / recast, where necessary, to conform to the current year classification.

Mar 31, 2022

Terms / Rights attached to Equity Share

The company has only one class of Equity Shares having a par value of '' 5/-. Each holder of Equity Shares is entitled to one vote per share.

The company declares and pays dividends in Indian rupees. On 27th May 2022 the board of directors recommended a final dividend of '' 5.00 per equity share be paid to shareholders for financial year 2021-22, which is subject to approval by the shareholders at the Annual General Meeting. If approved, the dividend would result in a cash outflow of '' 3,350 Lakhs.

* The outstanding loan amount as on 31st March 2022 is USD 40.07 million (which is '' 30,376.99 lakhs). External Commercial Borrowing (ECB) facility of USD 49.75 million (equivalent to '' 37,504.48 Lakhs) was availed by the Company on 31/03/2020 for acquisition of Rig Jindal Explorer from Star Drilling Pte. Ltd. This facility is secured by mortgage and charge on cash flows of specific asset as also general and other assignment. Company would repay the loan amount of USD 49.75 million in 71 installments as per the monthly repayment schedule starting 10th May 2020 (as per repayment schedule).

# The Outstanding Term Loan of '' 33,574.38 Lakhs as on 31st March 2022 is unsecured. The said loan was availed in Feb 2019, 2 year moratorium plus 8 year for tenure of for acquisition of United Seamless Tubulaar Private Limited (USTPL), under CIRP. Loan is quarterly repayable from June 2021 (as per repayment schedule).

2.27 Contingent Liabilities
Particulars		As At	As At
		31.03.2022	31.03.2021
		('' in lakhs)	('' in lakhs)
a)	Letter of Credit	37,726.84	16,136.19
b)	Corporate Guarantees	29,413.15	46,409.03
c)	Bank Guarantees & Others	23,506.26	40,358.94
d)	Sales Tax Demand under Appeal	1,074.50	725.73
e)	Income Tax Demand under Appeal	5,063.58	1,106.98
f)	Excise Duty / GST Demand under Appeal	42.06	66.26

g) Indian Oil Corporation Ltd. (IOCL) had raised a claim of '' 1,798.48 lakhs during the financial year 2008-09 & against this claim a performance bank guarantee of '' 852.79 lakhs was given to IOCL, which was realized by them, and an equivalent amount is charged in the Profit & Loss Account in financial year 2008-09. The matter is still under dispute and arbitration proceeding is going on. Any further demand, if any, will be provided for on the date of final settlement.

2.28 The company has imported Capital Goods under the Export Promotion Capital Goods (EPCG) scheme of the Government of India, at concessional rate of duty against the Legal Undertaking (LUT) to fulfil Exports obligations. The duty saved on such import of capital goods during the year amounting to '' 521.57 lakhs (Previous Year '' 425.75 lakhs) and for this the company is under an obligation to export goods amounting to '' 1,564.73 lakhs (Previous Year '' 1,277.25 lakhs), within a period of eight years, commencing from the date of issue of licenses. The company has, however, fulfilled, the export obligation till date to the extent of '' Nil (Previous Year '' Nil), for which the LUTs are to be discharged.

Pending fulfilment of such future export obligations entails Custom Department a right to enforce the LUT executed by us to the extent of '' 1,564.73 lakhs (Previous Year '' 1,277.25 lakhs).

2.29 Estimated amount of contracts remaining to be executed on capital account, net of advances, and not provided for '' 938.12 lakhs (Previous Year '' 1,467.65 lakhs).

During the year company recognised deferred revenue '' NIL (Previous Year '' 314.20 lakhs) and ''187.27 lakhs (Previous Year ''187.27 lakhs) had been transferred to Profit & Loss account.

2.31 Dividend income on perpetual preference shares have not been considered as dividend is not declared.

2.32 Dues to micro and small suppliers

Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 2nd October 2006, as amended on 1st June,2020, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the management, the company owes '' 223.01 lakhs (Previous Year '' 57.41 lakhs) to Micro and Small Enterprises. However, no interest during the year has been paid or payable in respect thereof. No amount of interest is accrued and remains unpaid at the end of the accounting year.

2.33 As required by Section 135 of Companies Act, 2013 and rules therein, a corporate social responsibility committee has been formed by the Company. The Company has spent the following amount during the year towards corporate social responsibility (CSR) for activities listed under schedule VII of the Companies Act, 2013

('' in lakhs)
Particulars	2021-22	2020-21
Amount required to be spent by the company during the year.	481.69	542.45
Amount of expenditure incurred	221.11	543.60
Shortfall at the end of the year	260.58	-
Total of previous years'' shortfall	NIL	NIL
Reason for above shortfalls	Pertains to ongoing projects	NA
Nature of CSR activities	Promoting education, Rural development, Animal welfare, Covid-19 Relief and Promoting Health care
Details of related party transactions, e.g., contribution to a trust controlled by the company in relation to CSR expenditure as per Ind AS 24, Related Party Disclosures	NA	NA
Where a provision is made with respect to a liability incurred by entering into contractual obligation, the movements in the provision during the year	NA	NA

2.35 a) The company had impaired the loan & diminished its investment in Gondkhari Coal Mining Ltd. (J V Entity) due to

cancellation of coal block by Hon''ble Supreme Court Judgment.

b) The Company had made investment in a mining asset directly and through its foreign subsidiaries. The subsidiary holding the mining investment had fully impaired its Investment in the mining asset. Accordingly the Company & its other subsidiaries had also fully impaired the loan & diminished its investment in that company. There will be no further impact on account of the mining business.

The company had initiated a process for taking approval from Reserve Bank of India wrt. writing off investment made & loan given towards mining business.

2.36 a) The employees'' gratuity fund scheme managed by LIC of India is a defined benefit plan. The present value of

obligation is determined based on actuarial valuation using the projected unit credit method, which recognises 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. The obligation for leave encashment is recognised in the same manner as gratuity.

2.37 Segment Information

The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

Identification of Segments

Capital Management

The Company manages its capital structure and makes changes in view of changing economic conditions. No changes were made in the objectives, policies or process during the year ended 31.03.2022 and 31.03.2021. There have been no breaches of the financial covenants of any interest bearing loans and borrowings for the reported period.

Note : 2.48 Covid-19 Impact:

During the year ended March 31,2022 the spread of Coronavirus pandemic across the globe, impacted all the geographies of our operations in the early months of the year. As per our current assessment, no significant impact on carrying amounts of inventories, goodwill, intangible assets, trade receivables, other investments and other financial assets is expected, and we continue to monitor changes in future economic conditions.

Fair Value Techniques:

The following methods and assumptions were used to estimate the fair values:

b) The fair value of investment in quoted Equity Shares and Mutual Funds is measured at quoted price or NAV.

c) Deferred sales tax is discounted at 7.00% p.a. to arrive at fair value.

d) All foreign currency loans and liabilities are translated using exchange rate at reporting date.

Fair Value Hierarchy

The following table provides the fair value measurement hierarchy of Company''s asset and liabilities grouped into Level 1 to Level 3 as described below:

Assets and Liabilities Measured at Fair Value (Accounted)

2.51 Financial Risk Management Objectives and Policies

The Board of Directors reviews and agrees policies for managing each of these risks which are summarised below. Market Risk and Sensitivity 1. Foreign Currency Risk and Sensitivity

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.

Other Statutory information

i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property

iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

viii) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year.

ix) Relationship with Struck entities

x) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained

xi) The title deeds of all the immovable properties, (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in property, plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet date.

xii) Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts

Previous year figures have been regrouped / recast, where necessary, to conform to the current year classification.

Mar 31, 2018

Note : 2.41

Related Parties Disclosures as per Ind AS 24 List of Related Parties:

a) Joint Venture Companies

Gondkhari Coal Mining Ltd.

Dev Drilling Pte. Ltd.

b) Subsidiary Companies

Maharashtra Seamless (Singapore) Pte. Ltd.

Maharashtra Seamless Finance Ltd.

Jindal Premium Connections Pvt. Ltd.* (w.e.f 02.06.2017)

Discovery Oil And Mines Pte. Ltd.

c) Step Subsidiary Companies**

Internovia Natural Resources FZ LLC Zircon Drilling Supplies & Trading FZE

d) Associate Companies

Jindal Pipes (Singapore) Pte. Ltd.

Star Drilling Pte. Ltd.

e) Common Controlled Entity Jindal Pipes Ltd.

f) Key Management Personnel Shri D.P. Jindal

Shri Saket Jindal Shri S. K. Singhal Shri Ashok Soni Shri D.C. Gupta

g) Relatives of Key Management Personnel Smt. Savita Jindal

Shri Raghav Jindal Smt. Rachna Jindal Smt. Shruti Raghav Jindal Ms. Shreeja Jindal Ms. Shreepriya Jindal Ms. Devanshi Jindal

* During the year the company had acquired shares of Jindal Premium Connections Pvt. Ltd. and now it has become 100% subsidiary (previously it was an associate company).

** Internovia Natural Resources FZ LLC is a step subsidiary with direct holding of 5% & holding of 51% through Discovery Oil and Mines Pte. Ltd.. Further Zircon Drilling Supplies and Trading FZE is 100% subsidiary of Internovia Natural Resources FZ LLC.

Note : 2.50 Capital Management

The primary objective of the Companyâs capital management is to ensure availability of funds at competitive cost for its operational and development needs and maintain a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value.

The Company manages its capital structure and makes changes in view of changing economic conditions. No changes were made in the objectives, policies or process during the year ended 31.03.2018 and 31.03.2017. There have been no breaches of the financial covenants of any interest bearing loans and borrowings for the reported period.

The Company monitors capital structure on the basis of debt to equity ratio. For the purpose of Companyâs capital management, equity includes paid up equity share capital and reserves and surplus and effective portion of cash flow hedge and debt comprises of long term borrowings including current maturities of these borrowings.

Fair Value Techniques:

The following methods and assumptions were used to estimate the fair values:

b) The fair value of investment in quoted Equity Shares and Mutual Funds is measured at quoted price or NAV.

c) Interest free loan given/ deferred sales tax is discounted at 8.70% p.a. to arrive at fair.

d) All foreign currency loans and liabilities are translated using exchange rate at reporting date Fair Value Hierarchy

The following table provides the fair value measurement hierarchy of Companyâs asset and liabilities grouped into Level 1 to Level 3 as described below:

Assets and Liabilities Measured at Fair Value (Accounted)

2.53 Financial Risk Management Objectives and Policies

The Companyâs financial risk management is an integral part of how to plan and execute its business strategies. The Company is exposed to various risk such as market risk, credit risk and liquidity risk etc.

The sensitivity analysis exclude the impact of movement in market variables on the carrying value of post-employment benefit obligations, provisions and on non-financial assets and liabilities. The sensitivity of the relevant statement of profit and loss item is the effect of the assumed changes in respective market rates. The companyâs activities are exposed to varieties of financial risk including the effect of changes in foreign currency exchange rates and interest rates. The company uses derivatives financial instruments such as foreign exchange forward contracts of varying maturity depending upon the underlying contract and risk management strategy to manage its exposures to foreign exchange fluctuation and interest rates.

1. Foreign Currency Risk and Sensitivity

The assumed movement in exchange rate sensitivity analysis is based on the currently observable market environment

2. Interest rate risk and sensitivity

The Companyâs exposure to the risk of changes in market interest rate relates to the floating rate debt obligations.

The following table demonstrates the impact of borrowing cost on floating rate portion of loans and borrowings are taken

3. Credit risk

Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial loss to the Company. Credit risk arises from Companyâs activities in investments, dealing in derivatives and receivables from customers.

4. 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.

The Company monitors its risk to a shortage of funds using a recurring liquidity planning tool. This tool considers the maturity of both its financial investments and financial assets (i.e. trade receivables, other financial assets) and projected cash flows from operations. The Companyâs objective is to maintain a balance between continuity of funding and flexibility through the use of working capital loans, letter of credit facility, bank loans and credit purchases.

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments.

2.54 Previous year figures have been regrouped / recast, where necessary to conform to the current year classification.

Mar 31, 2017

1.1 The Company had pledged 4,500,000 equity shares of USD 1/- each held in Jindal Pipes (Singapore) Pte. Ltd. in favour of Standard Chartered Bank (Hong Kong) Limited acting as security agent towards loan availed by associate company, Jindal Pipes (Singapore) Pte. Ltd. Further, the Company has also pledged amount invested in mutual fund amounting to Rs.15,363.67 Lakhs in favour of Axis Bank Ltd, Singapore acting as security agent towards loan availed by associate company, Star Drilling Pte. Ltd.

1.2 The company has imported Capital Goods under the Export Promotion Capital Goods (EPCG) scheme of the Government of India, at concessional rate of duty against the Legal Undertaking (LUT) to fulfill Exports obligations. The duty saved on such import of capital goods during the year amounting to Rs.289.23 Lakhs (Previous Year Rs.87.58 Lakhs) and for this the company is under an obligation to export goods amounting to Rs.2,313.88 Lakhs (Previous Year Rs.525.50 Lakhs), within a period of eight years, commencing from the date of issue of licenses. The company has, however, fulfilled, the export obligation till date to the extent of Rs.2,313.88 Lakhs (Previous Year Rs.525.50 Lakhs), for which the LUTs are to be discharged. Pending fulfillment of such future export obligations entails Custom Department a right to enforce the LUT executed by us to the extent of Rs.2,313.88 Lakhs (Previous Year Rs.525.50 Lakhs).

1.3 Estimated amount of contracts remaining to be executed on capital account, net of advances, and not provided for Rs.4,823.65 Lakhs (Previous Year Rs.451.19 Lakhs).

1.4 The company is entitled to Mega Project Industrial Promotion Subsidy under the Package Scheme of Incentive 2007 approved by the Govt. of Maharashtra, to the extent of 75% of the eligible fixed capital investment at Mangaon or to the extent of taxes paid to the State Govt. less incentive of stamp duty and electricity duty exemption, within a period of 7 years from the date of approval, whichever is lower.

As per earlier GAAP the amount of such subsidies receivable is considered as Capital Receipt and credited to Capital Reserve. Now In accordance with Ind AS 20 (Government Grants), Subsidy has been reclassified as Deferred Liability and would be recognised in statement of profit and loss on a systematic basis over the periods in which the Company recognises as expenses the related costs for which the grants are intended to compensate. Accordingly Government Grants aggregating Rs.103.76 Lakhs has been regrouped from capital reserve to deferred revenue and proportionate amount Rs.4.72 Lakhs has been transferred to profit and loss. This has resulted in decline in total equity aggregating Rs.99.04 Lakhs as at 31st March 2016.

1.5 During the year the company had converted loan given to Subsidiary Companies & Joint Venture Company into 4% Perpetual Cummulative Preference Shares in the following manner:

Dividend on the above perpetual preference shares have been waived off for financial year 2016-17.

1.6 The company owes Rs.9.62 Lakhs (Previous Year Rs.6.83 Lakhs) to Micro and Small Enterprises which are outstanding for more than 45 days as at 31st March, 2017. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company. The Auditors have relied upon the same.

1.7 The Company has incurred an expenditure of Rs.226.37 Lakhs (Previous Year Rs.315.00 Lakhs ) towards promoting education, health care, eradication of hunger and malnutrition. These expenditures are covered under various schemes of Corporate Social Responsibility as prescribed under section 135 of Companies Act, 2013.

Gross amount required to be spent during the year Rs.225 Lakhs (approx.)

Amount Spent during the year Rs.226 Lakhs (approx.)

1.8 In the opinion of the company, the value on realisation of current assets, loans & advances in the ordinary course of the business shall not be less than the amount at which they are stated in the Balance Sheet.

1.9 a) The factors considered in the Companyâs assessment that the carrying amounts of the investments and the loans and advances to certain subsidiaries, associates and a joint venture are recoverable and that no loss allowance is required against the financial guarantees of Rs.196,973.86 Lakhs.

b) Due to non availability of financial statements of Gondkhari Coal Mining Ltd.( J V Entity) in previous years and its impaired ability to continue as Joint Venture due to cancellation of coal block by Honâable Supreme Court Judgement, we had made provision for diminishing in Investment and the company has not considered M/s Gondkhari Coal Mining Limited for the purpose of consolidation.

1.10 a) The employeesâ gratuity fund scheme managed by LIC of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognises 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. The obligation for leave encashment is recognised in the same manner as gratuity.

b) As per Ind AS -19 âEmployee Benefitsâ. The disclosure as defined are given below:

Defined Contribution Plan

Contribution to Defined Contribution Plan recognised and charged in the Profit & Loss Account for the year are as under:

1.11 Segment Information

The Groupâs operating segments are established on the basis of those components of the group that are evaluated regularly by the Executive Committee, the âChief Operating Decision Makerâ as defined in Ind AS 108 - âOperating Segmentsâ, in deciding how to allocate resources and in assessing performance. These have been identified taking into account nature of products and services, the differing risks and returns and the internal business reporting systems.

The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

Identification of Segments Primary Segment

Business segment: The Companyâs operating businesses are organised and managed separately according to the nature of products, with each segment representing a strategic business unit that offers different products. The two identified segments are Steel Pipes & Tubes and Power -Electricity.

1.12 Related Parties Disclosures as per Ind AS 24

List of Related Parties :

a) Joint Venture Companies

Gondkhari Coal Mining Ltd.

Dev Drilling Pte. Ltd.

b) Subsidiary Companies

Maharashtra Seamless (Singapore) Pte. Ltd.

Maharashtra Seamless Finance Ltd.

Discovery Oil and Mines Pte. Ltd.

c) Step Subsidiary Companies1

Internovia Natural Resources FZ LLC Zircon Drilling Supplies & Trading FZE

d) Associate Companies

Jindal Pipes (Singapore) Pte. Ltd.

Star Drilling Pte. Ltd.

Jindal Premium Connections Pvt. Ltd.

e) Common Controlled Entity

Jindal Pipes Ltd.

f) Key Management Personnel

Shri D.P. Jindal Shri Saket Jindal Shri S. P. Raj

Shri S. K. Singhal w.e.f. 01.01.2017 Shri Ashok Soni Shri D.C. Gupta

g) Relatives of Key Management Personnel

Smt. Savita Jindal Shri Raghav Jindal Smt. Rachna Jindal Smt. Shruti Raghav Jindal

*Internovia Natural Resources FZ LLC is a step subsidiary with direct holding of 5% & holding of 51% through Discovery Oil And Mines Pte. Ltd.. Further Zircon Drilling Supplies and Trading FZE is 100% subsidiary of Internovia Natural Resources FZ LLC.

1.13 Details of Loans and Advances given, Investment made and Guarantee given covered U/S 186 (4) of the Companies Act, 2013.

i) Investments made are given under investment note no. 2.2 (a) & (b)

ii) Loan and Advances given to Related Parties

*The company has waived interest due to inadequacy of profit on loan given to Jindal Premium Connections Pvt. Ltd. (Associate Company) .

**In the case of Gondkhari Coal Mining Ltd. (Joint Venture Company), no interest has been provided on the loans given in previous years both on account of inadequacy of profit & future plan of business activity on account of de-allocation of coal block.

The Loans on which interest is not charged is discounted at 9.5% p.a. to arrive at fair value.

1.14 Capital Management

The Company manages its capital structure and makes changes in view of changing economic conditions. No changes were made in the objectives, policies or process during the year ended 31.03.2017 and 31.03.2016. There have been no breaches of the financial covenants of any interest bearing loans and borrowings for the reported period.

Fair Value Techniques:

The following methods and assumptions were used to estimate the fair values:

b) The fair value of insvetment in quoted Equity Shares and Mutual Funds is measured at quoted price or NAV.

c) Interest free loan given is discounted at 9.5% p.a. to arrive at fair value as on transaction date.

d) All foreign currency loan and liabilities are translated using exchange rate at reporting date.

Fair Value Hierarchy

The following table provides the fair value measurement hierarchy of Companyâs asset and liabilities grouped into Level 1 to Level 3 as described below:

Assets and Liabilities Measured at Fair Value (Accounted)

1.15 Financial Risk Management Objectives and Policies

The Companyâs principal financial liabilities, other than derivatives, comprise loans and borrowings and trade and other payables. The main purpose of these financial liabilities is to manage finances for the Companyâs operations. The Company has loans, trade and other receivables, and cash and short-term deposits that arrive directly from its operations. The Company also holds fair value through profit or loss investments.

The Company is exposed to market risk, credit risk and liquidity risk.

The Company manages market risk through a treasury department, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommends risk management objectives and policies, which are approved by senior management and the Audit and Risk Management Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing strategies, and ensuring compliance with market risk limits and policies.

The Board of Directors reviews and agrees policies for managing each of these risks which are summarised below :

Market risk and sensitivity

Market risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: currency rate risk and interest rate risk. Financial instruments affected by market risk include loans and borrowings, deposits, investments and derivatives financial instruments. Foreign currency risk is the risk that the fair value or future cash flows of financial instrument will fluctuate because of changes in foreign exchange rates. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. This is based on the financial assets and liabilities held as at 31.03.2017 and 31.03.2016.

The sensitivity analyses exclude the impact of movement in market variables on the carrying value of post-employment benefit obligations, provisions and on non-financial assets and liabilities. The sensitivity of the relevant statement of profit and loss item is the effect of the assumed changes in respective market rates. The companyâs activities expose it to a variety of financial risk including the effect of changes in foreign currency exchange rates and interest rates. The company uses derivatives financial instruments such as foreign exchange forward contracts of varying maturity depending upon the underlying contract and risk management strategy to manage its exposures to foreign exchange fluctuation and interest rates.

Interest rate risk and sensitivity

The Companyâs exposure to the risk of changes in market interest rates relates primarily to the long term debt obligations and Buyerâs credit obligations with floating interest rates.

Credit risk

Credit risk is the risk that the counter party will not meet its obligation under a financial instruments 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 investing activities including deposits with banks, mutual funds and financial institutions and other financial instruments.

Trade receivables

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.

The Company monitors its risk to a shortage of funds using a recurring liquidity planning tool. This tool considers the maturity of both its financial investments and financial assets (i.e. trade receivables, other financial assets) and projected cash flows from operations. The Companyâs objective is to maintain a balance between continuity of funding and flexibility through the use of working capital loans, letter of credit facility, bank loans and credit purchases.

Notes to the Reconciliation:

In accordance with Ind AS 109 (Financial Instruments) investment in Mutual Fund and Equity Shares have been classified at fair value through statement of Profit & Loss. Further Investment in joint ventures and associates has been carried at cost in accordance with Ind AS 28.

The company has elected to continue with the carrying value of all of its property, plant, and equipment and intangible assets including capial work in progrees and intangible assets under development recognised as of 1 April, 2015 (transition date) measured as per the previous GAAP as its deemed cost as at the date of transition. Futher in earlier years company had got its assets revalued which is now included in deemed cost of property, plant and equipment.

Under Ind AS actuarial gains or losses on defined benefit obligations are recognised in other commode, whereas under same was being charged to statement of profit & loss.

The impact of transition adjustments together with Ind AS mandate to using balance sheet approach (againt profit & loss approach in the previous GAAP) for computation of deferred taxes has resulted in charge to the Reserves, on the date of transition, with consequential impact to the Statement of Profit & Loss for the subsequent periods.

Under Indian GAAP, proposed dividends including tax on proposed dividend are recognized as liability in the period to which they relate, irrespective of the approval by shareholdeâ Under Ind AS, proposed dividend is recognized as a liability in the period in which it is declared by the Company (when approved by shareholders in a general meeting) or paid. Therefore, the proposed dividend and tax on proposed dividend of Rs.4,031.96 lakhs as on 01.04.2015 has been derecognized and recognized in 2015-16 on approval by shareholders and payment.

1.16 Previous year figures have been regrouped / recast, where necessary, to conform to the current year classification.

Mar 31, 2016

1. CONTINGENT LIABILITIES

a) Letter of Credit : Rs, 1,154.51 lakhs (Previous Year Rs, 3,256.95 lakhs)

b) Guarantees & SBLC: Bank & Others : Rs, 232,959.11 lakhs (Previous Year Rs, 267,913.99 lakhs)

c) Sales Tax Demand under Appeal : Rs, 4.65 lakhs (Previous Year Rs, 4.65 lakhs)

d) Income Tax Demand under Appeal : Rs, 438.38 lakhs (Previous Year Rs, 9.45 lakhs)

e) Excise Duty Demand under Appeal : Rs, 295.25 lakhs (Previous Year Rs, 500.30 lakhs)

f) Indian Oil Corporation Ltd. (IOCL) had raised a claim of Rs, 1,798.48 lakhs during the financial year 2008-09 & against this claim a performance bank guarantee of Rs, 852.79 lakhs was given to IOCL, which was realized by them, and an equivalent amount is charged in the Profit & Loss Account in financial year 2008-09. The matter is still under dispute and arbitration proceeding is going on. Any further demand, if any, will be provided for on the date of final settlement.

2. The Company had pledged 4,500,000 equity shares of USD 1/- each held in Jindal Pipes (Singapore) Pte. Ltd. in favour of Standard Chartered Bank (Hong Kong) Limited acting as security agent towards loan availed by associate company, Jindal Pipes (Singapore) Pte. Ltd. Further, the Company has also pledged amount invested in mutual fund amounting to Rs, 16,038.89 lakhs in favour of Axis Bank Ltd, Singapore acting as security agent towards loan availed by associate company, Star Drilling Pte. Ltd.

3. The Company has imported capital goods under the Export Promotion Capital Goods (EPCG) scheme of the Government of India, at concessional rate of duty against the Legal Undertaking (LUT) to fulfill Exports obligations. The duty saved on such import of capital goods during the year amounting to Rs, 87.58 lakhs (Previous Year Rs, 198.15 lakhs) and for this the company is under an obligation to export goods amounting to Rs, 525.50 lakhs (Previous Year Rs, 1,585.18 lakhs), within a period of eight years, commencing from the date of issue of licenses. The company has, however, fulfilled, the export obligation till date to the extent of Rs, Nil (Previous Year Rs, 1,585.18 lakhs), for which the LUTs are to be discharged.

Pending fulfillment of such future export obligations entails Custom Department a right to enforce the LUT executed by us to the extent of Rs, 525.50 lakhs (Previous Year Rs, Nil).

4. Estimated amount of contracts remaining to be executed on capital account, net of advances, and not provided for Rs, 451.19 lakhs (Previous Year Rs, 386.34 lakhs).

5. The Company is entitled to Mega Project Industrial Promotion Subsidy under the Package Scheme of Incentive 2007 approved by the Govt. of Maharashtra, to the extent of 75% of the eligible fixed capital investment at Mangaon or to the extent of taxes paid to the State Govt. less incentive of stamp duty and electricity duty exemption, within a period of 7 years from the date of approval, whichever is lower.

As per AS -12 & accounting policy followed by the company the amount of such subsidies receivable is considered as Capital Receipt and during the year Rs, 103.76 lakhs is credited to Capital Reserve.

6. Tangible Fixed Assets namely Land, Factory Shed & Building and Plant & Machinery acquired upto 31st March 2009 were revalued on 1st April 2009. As a result of revaluation, Revaluation Reserve was created amounting to Rs, 78,323.75 lakhs , and additional depreciation of Rs, 4,088.99 lakhs (Previous Year Rs, 4,088.99 lakhs) provided on increased amount of assets due to revaluation has been adjusted from Revaluation Reserve.

7. 1 Excise duty in respect of finished goods lying in factory premises and custom duty on goods lying in custom bonded warehouse are provided and included in the valuation of inventory. This accounting treatment has no impact on the profit for the year. Credit of taxes and duties availed is accounted for by reducing the purchase cost of the materials and fixed assets.

8. The company owes Rs, 6.83 lakhs (Previous Year Rs, 7.55 lakhs) to Micro and Small Enterprises which are outstanding for more than 45 days as at 31st March, 2016. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to th e extent such parties have been identified on the basis of information available with the company. The Auditors have relied upon the same.

9. The Company has incurred an expenditure of Rs, 315.00 lakhs (Previous Year Rs, 227.29 lakhs) towards promoting education, health care, eradication of hunger and malnutrition. These expenditures are covered under various schemes of Corporate Social Responsibility as prescribed under section 135 of Companies Act, 2013.

Gross amount required to be spent during the year Rs, 312 lakhs (approx.)

Amount Spent during the year Rs, 315 lakhs (approx.)

10. In the opinion of the company, the value on realization of current assets, loans & advances in the ordinary course of the business shall not be less than the amount at which they are stated in the Balance Sheet.

11. a) The Accounting Standard 15 (Revised 2005) have been made applicable from F.Y. 2007-08, the requisite information and disclosure have been given separately for this year and previous year.

b) The employeesâ gratuity fund scheme managed by LIC of India is a defined benefit plan. 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. The obligation for leave encashment is recognized in the same manner as gratuity.

12. Segment Reporting Policies Identification of Segments Primary Segment

Business segment : The Companyâs operating businesses are organized and managed separately according to the nature of products, with each segment representing a strategic business unit that offers different products. The two identified segments are Steel Pipes & Tubes and Power - Electricity.

13. Related Parties Disclosures as per Accounting Standard - 18.

List of Related Parties with whom transactions have taken place during the year :

a) Joint Venture Companies

Gondkhari Coal Mining Ltd.

Dev Drilling Pte. Ltd.

b) Subsidiary Companies

Maharashtra Seamless (Singapore) Pte. Ltd.

Maharashtra Seamless Finance Ltd.

Discovery Oil And Mines Pte. Ltd.

c) Step Subsidiary Company*

Internovia Natural Resources FZ LLC

d) Associate Companies

Jindal Pipes (Singapore) Pte. Ltd.

Star Drilling Pte. Ltd.

Jindal Premium Connections Pvt. Ltd.

e) Common Controlled Entities Jindal Pipes Ltd.

f) Key Management Personnel Shri D. P. Jindal

Shri Saket Jindal Shri S. P. Raj Shri Ashok Soni Shri D. C. Gupta

g) Relatives of Key Management Personnel Smt. Savita Jindal

Shri Raghav Jindal

No amount has been provided as doubtful debts or advances / written off or written back in the year in respect of debts due from or to any Related Parties.

* Includes effect of change in foreign exchange translation.

* The company has waived interest due to inadequacy of profit on loan given to Jindal Premium Connections Pvt. Ltd. (Associate Company).

** In the case of Gondkhari Coal Mining Ltd. (Joint Venture Company), no interest has been provided on the loans given in previous years both on account of inadequacy of profit & future plan of business activity on account of de-allocation of coal block.

Loan and Advances are given for business purposes to the above mentioned entities except loan given to Maharashtra Seamless Limited Employee Welfare Trust which had been formed with the sole objective of employee welfare. Further, the company has not charged interest on loan given.

C) Investments made in Equity Share of the company by Maharashtra Seamless Limited Employee Welfare Trust ("a Loanee") during the year of Rs, Nil (Previous year Rs, Nil)

* Maharashtra Seamless Limited Employee Welfare Trust is not a Related Party as per AS-18, issued by ICAI

14. Previous year figures have been regrouped / recast, where necessary, to conform to the current year classification.

Mar 31, 2015

1. CONTINGENT LIABILITIES

a) Letter of Credit - Rs. 325,694,836/- (Previous Year Rs. 763,605,220/-)

b) Guarantees & SBLC: Bank & Others - Rs. 26,791,398,783/-(Previous Year Rs. 8,549,752,190/-)

c) Sales Tax Demand under Appeal - Rs. 465,199/- (Previous Year Rs. 465,199/-)

d) Income Tax Demand under Appeal - Rs. 945,537/- (Previous Year Rs. 945,537/- )

e) Excise Duty Demand under Appeal - Rs. 50,029,784/- (Previous Year Rs. 188,917,922/-)

f) Indian Oil Corporation Ltd. (IOCL) had raised a claim of Rs. 179,848,064/- during the financial year 2008-09 & against this claim a performance bank guarantee of Rs. 85,279,100/- was given to IOCL, which was realized by them, and an equivalent amount is charged in the Profit & Loss Account in financial year 2008-09. The matter is still under dispute and arbitration proceeding is going on. Any further demand, if any, will be provided for on the date of final settlement.

2. The Company pledged 4,500,000 Equity Shares of USD 1/- each held in Jindal Pipes (Singapore) Pte. Ltd in favour of Standard Chartered Bank (Hong Kong) Limited acting as security agent towards loan availed by Jindal Pipes (Singapore) Pte. Ltd. (Associate Company). Further, the Company has pledged its investment in mutual funds amounting to Rs. 3,670,972,670/- in favour of Deutsche Bank AG towards loan availed by Dev Drilling Pte. Ltd. (Joint Venture Company).

3. The company has imported Capital Goods under the Export Promotion Capital Goods (EPCG) scheme of the Government of India, at concessional rate of duty against the Legal Undertaking (LUT) to fulfill Exports obligations. The duty saved on such import of capital goods during the year amounting to Rs. 19,814,748/- (Previous Year Rs. 21,073,185/-) and for this the company is under an obligation to export goods amounting to Rs. 158,517,984/- (Previous Year Rs. 168,585,480/-), within a period of eight years, commencing from the date of issue of licenses. The company has, however, fulfilled, the export obligation till date to the extent of Rs. 158,517,984/- (Previous Year Rs. 168,585,480/-), for which the LUTs are to be discharged.

Pending fulfillment of such future export obligations entails Custom Department a right to enforce the LUT executed by us to the extent of Rs. Nil (Previous Year Rs. Nil).

4. Estimated amount of contracts remaining to be executed on capital account, net of advances, and not provided for Rs. 38,633,581/- (Previous Year Rs. 128,962,357/-).

5. The company is entitled to Mega Project Industrial Promotion Subsidy under the Package Scheme of Incentive 2007 approved by the Govt. of Maharashtra, to the extent of 75% of the eligible fixed capital investment at Mangaon or to the extent of taxes paid to the State Govt. less incentive of stamp duty and electricity duty exemption, within a period of 7 years from the date of approval, whichever is lower.

As per AS -12 & accounting policy followed by the company the amount of such subsidies receivable is considered as Capital Receipt and is credited to Capital Reserve. The amount receivable amounts to Rs. 16,652,521/- (Previous Year Rs. 3,008,030/-).

6. Tangible Fixed Assets namely Land, Factory Shed & Building and Plant & Machinery acquired upto 31st March, 2009 were revalued on 1st April, 2009. As a result of revaluation, Revaluation Reserve was created amounting to Rs. 7,832,375,428/- , and additional depreciation of Rs. 408,899,018/- (Previous Year Rs. 408,899,018/-) provided on increased amount of assets due to revaluation has been adjusted from Revaluation Reserve.

7. Excise duty in respect of finished goods lying in factory premises and custom duty on goods lying in custom bonded warehouse are provided and included in the valuation of inventory. This accounting treatment has no impact on the profit for the year. Credit of taxes and duties availed is accounted for by reducing the purchase cost of the materials and fixed assets.

8. The company owes Rs. 754,650/- (Previous Year Rs. 3,427,545/-) to Micro and Small Enterprises which are outstanding for more than 45 days as at 31st March, 2015. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company. The Auditors have relied upon the same.

9. The Company has incurred an expenditure of Rs. 22,729,000/- towards promoting education, health care, eradication of hunger and malnutrition. These expenditures are covered under various schemes of Corporate Social Responsibility as prescribed under section 135 of Companies Act, 2013.

Gross amount required to be spent during the year Rs. 501 Lacs (approx.)

Amount Spent during the year Rs. 227 Lacs (approx.)

10. Effective from 1st April 2014, the company has changed depreciation based on the remaining useful life of the assets as per the requirement of Schedule II of the Companies Act, 2013. Had there been no change in the depreciation rate, the depreciation charged for the year ended 31st March, 2015 would have been higher by Rs. 98,470,417/- (net).

In respect of assets whose useful life is already exhausted as on 1st April, 2014 has been adjusted and depreciation amounting to Rs. 40,405,997/- has been adjusted from Reserves & Surplus in accordance with the requirement of Schedule II of the Companies Act, 2013.

11. In the opinion of the company, the value on realization of current assets, loans & advances in the ordinary course of the business shall not be less than the amount at which they are stated in the Balance Sheet.

12.Financial reporting of Interest in Joint Ventures as per Accounting Standard - 27:

13. The foreign exchange fluctuation (net) gain Rs. 70,226,876/- (Previous Year loss Rs. 51,488,189/-), as shown in Profit & Loss Account, has been arrived at after considering loss of Rs. 26,724,103/- (Previous Year Rs. 93,400,085/-) and gain of Rs. 96,950,979/- (Previous Year Rs. 41,911,896/-). Further, mark to market gain/(loss) has been recognized by the company of Rs. Nil (Previous Year Rs. Nil ) as specified in Accounting Standard 30 "Financial Instruments: Recognition and Measurement" issued by ICAI.

14. a) The Accounting Standard 15 (Revised 2005) have been made applicable from F.Y. 2007-08, the requisite information and disclosure have been given separately for this year and previous year.

b) The employees'' gratuity fund scheme managed by LIC of India is a defined benefit plan. 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. The obligation for leave encashment is recognized in the same manner as gratuity.

15. Segment Reporting Policies

Identification of Segments

Primary Segment

Business segment: The Company''s operating businesses are organized and managed separately according to the nature of products, with each segment representing a strategic business unit that offers different products. The two identified segments are Steel Pipes & Tubes and Power - Electricity.

Inter Division transfers of goods, as marketable products produced by separate divisions of the company for captive consumption are made as if sales were to third parties at current market prices and are included in turnover.

16. Related Parties Disclosures as per Accounting Standard Â 18.

List of Related Parties with whom transactions have taken place during the year:

a) Joint Venture Companies Gondkhari Coal Mining Ltd. Dev Drilling Pte. Ltd.

b) Subsidiary Companies

Maharashtra Seamless (Singapore) Pte. Ltd. (WOS) Maharashtra Seamless Finance Ltd. (WOS) Discovery Oil And Mines Pte. Ltd. (WOS)

c) Step Subsidiary Company* Internovia Natural Resources FZ LLC

d) Associate Companies

Jindal Pipes (Singapore) Pte. Ltd.

Star Drilling Pte. Ltd.

Jindal Premium Connections Pvt. Ltd.

(Formerly known as Hydril Jindal International Pvt. Ltd.)

e) Common Controlled Entities Jindal Pipes Ltd.

Haryana Capfin Ltd.

f) Key Management Personnel Shri Saket Jindal

Shri S. P. Raj Shri Ashok Soni Shri D.C. Gupta

g) Relatives of Key Management Personnel Shri D.P. Jindal

Smt. Savita Jindal Shri Raghav Jindal

Smt. Rachna Jindal

Smt. Shruti Raghav Jindal * Internovia Natural Resources FZ LLC is a step subsidiary with direct holding of 5% & holding of 51% through Discovery Oil And Mines Pte. Ltd. (WOS).

No amount has been provided as doubtful debts or advances / written off or written back in the year in respect of debts due from

or to any Related Parties.

* Includes effect of change in foreign exchange translation.

17. Paise have been rounded off to the nearest rupee.

18. Previous year figures have been regrouped / recast, where necessary, to conform to the current year classification.

Mar 31, 2014

Terms / Rights attached to Equity Share

The company has only one class of Equity Shares having a par value of Rs. 5/-. Each holder of Equity Shares is entitled to one vote per share.

The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

The Board of Directors, in their meeting on May 24, 2014, proposed a dividend of Rs. 6/- per Equity Share. The proposal is subject to the approval of shareholders at the Annual General Meeting. The total dividend appropriation for the year ended March 31, 2014 amounted to Rs. 470,317,275/- including corporate dividend tax of Rs. 68,319,519/-. The dividend pay-out is calculated on 66,999,626 no. of shares to the member whose name appear in the register of member as on 24th May 2014.

In the event of liquidation of the company, the holders of Equity Shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

d) Aggregate number of bonus shares issued during the period of five years immediately preceding the reporting date: Nil

e) Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash during the period of five years immediately preceding the reporting date: Nil

f) The company has bought back following Equity Shares during the last five years preceding the Balance Sheet Date Financial Year No. of Shares.

Pursuant to the approval of the Board of Directors of the company, for buy back of Equity Shares U/s 77A of the Companies Act, 1956 , during the financial year 2013-14 the company has bought 2,250,298 the Equity Shares and extinguished the same. Consequently a sum of Rs. 11,251,490/- has been reduced from Share Capital & Rs. 404,039,057/- has been reduced from Securities Premium Account.

Capital Redemption Reserve has been created of Rs. 11,251,490/- being nominal value of shares bought back U/s. 77A of the Companies Act, 1956.

Notes to Accounts

* Proposed Dividend on Equity Shares and Tax on Dividend are net of reversal of excess provision of previous year pertaining to Equity Shares bought back before the record date of Dividend aggregating to Rs. 41.86 Lacs.

*The borrowings for working capital are secured by hypothecation of inventories, book debts & all other current assets other than those specifically excluded and second charge on moveable fixed assets and negative lien on immovable fixed assets.

*During the year 1,760 Equity Shares of Welspun Enterprises Ltd. were allotted against 35,200 Equity Shares of Welspun corp Ltd. pursuant to Scheme of Demerger ,wherein for every 20 shares of Welspun Corp Ltd. 1 share of Welspun Enterprises Ltd. was allotted.

1 CONTINGENT LIABILITIES

a) Letter of Credit - Rs. 763,605,220/- (Previous Year Rs. 391,604,808/-)

b) Guarantees: Bank & Others - Rs. 8,549,752,190/- (Previous Year Rs. 6,585,365,409/-)

c) Sales Tax Demand under Appeal - Rs. 465,199/- (Previous Year Rs. 465,199/-)

d) Income Tax Demand under Appeal - Rs. 945,537/- (Previous Year Rs. 453,210/- )

e) Excise Duty Demand under Appeal - Rs. 188,917,922/- (Previous Year Rs. 190,325,905/-)

f) Indian Oil Corporation Ltd. (IOCL) had raised a claim of Rs. 179,848,064/- during the financial year 2008-09 & against this claim a performance bank guarantee of Rs. 85,279,100/- was given to IOCL, which was realized by them, and an equivalent amount is charged in the Profit & Loss Account in financial year 2008-09. The matter is still under dispute and arbitration proceeding is going on. Any further demand, if any, will be provided for on the date of final settlement.

2. The company has pledged 4,500,000 Equity Shares of USD 1/- each held in Jindal Pipes (Singapore) Pte. Ltd. in favour of Standard Chartered Bank (Hong Kong) Limited acting as Security Agent towards Loan availed by Associate Company Jindal Pipes (Singapore) Pte. Ltd.

3. The company has imported Capital Goods under the Export Promotion Capital Goods (EPCG) scheme of the Government of India, at concessional rate of duty against the Legal Undertaking (LUT) to fulfil Exports obligations. The duty saved on such import of capital goods during the year amounting to Rs. 21,073,185/- (Previous Year Rs. 37,139,095/-) and for this the company is under an obligation to export goods amounting to Rs. 168,585,480/- (Previous Year Rs. 222,834,570/-), within a period of eight years, commencing from the date of issue of licenses. The company has, however, fulfilled, the export obligation till date to the extent of Rs. 168,585,480/- (Previous Year Rs. 222,834,570/-), for which the LUTs are to be discharged.

Pending fulfilment of such future export obligations entails Custom Department a right to enforce the LUT executed by us to the extent of Rs. Nil (Previous Year Rs. Nil).

4. Estimated amount of contracts remaining to be executed on Capital Account, net of advances, and not provided for Rs. 128,962,357/- (Previous Year Rs. 119,296,437/-).

5. The company is entitled to Mega Project Industrial Promotion Subsidy under the Package Scheme of Incentive 2007 approved by the Govt of Maharashtra, to the extent of 75% of the eligible fixed capital investment at Mangaon or to the extent of taxes paid to the State Govt. less incentive of stamp duty and electricity duty exemption, within a period of 7 years from the date of approval, whichever is lower.

As per AS -12 & accounting policy followed by the company the amount of such subsidies receivable during the year is considered as Capital Receipt and is credited to Capital Reserve amounting to Rs. 3,008,030/-.

6. Tangible Fixed Assets namely Land, Factory Shed & Building and Plant & Machinery acquired upto 31st March 2009 were revalued on 1st April 2009. As a result of revaluation, Revaluation Reserve was created amounting to Rs. 7,832,375,428/- , and additional depreciation of Rs. 408,899,018/- (Previous Year Rs. 408,899,966/-) provided on increased amount of assets due to revaluation computed on the basis of straight line method has been adjusted from Revaluation Reserve.

7. Excise duty in respect of finished goods lying in factory premises and custom duty on goods lying in custom bonded warehouse are provided and included in the valuation of inventory. This accounting treatment has no impact on the profit for the year. Credit of taxes and duties availed is accounted for by reducing the purchase cost of the materials and fixed assets.

8. The company owes Rs. 3,427,545/- (Previous Year Rs. 736,497/-) to Micro and Small Enterprises which are outstanding for more than 45 days as at March 31, 2014. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company. The Auditors have relied upon the same.

9. The company has given interest free loan of Rs. 58.60 crores during the previous years to Maharashtra Seamless Limited Employee Welfare Trust which had been formed with the sole objective of employee welfare.

10. During the year the company made a contribution to political party (Bhartiya Janta Party).

11. In the opinion of the company, the value on realisation of current assets, loans & advances in the ordinary course of the business shall not be less than the amount at which they are stated in the Balance Sheet.

# Earlier the company was having a joint venture agreement with Hydril Jindal International Pvt. Ltd. which was discontinued during the financial year w.e.f 29th August, 2013 as the stake of Hydril Company Lp, USA in Hydril Jindal International Pvt. Ltd. was acquired by another company, due to this change the new company became as associate company. Further name of the company has been changed to Jindal Premium Connections Pvt. Ltd.

## Earlier the company was holding 49% with Dev Drilling Pte. Ltd. and having status of JV Company. However, during the year due to change in stake it becomes an associate company.

12. Gondkhari Coal Mining Ltd. (Joint Venture Company) & Jindal Premium Connection Pvt. Ltd. (Formally known as Hydril Jindal International Pvt. Ltd.) (Associate Company) had not paid interest on loan due to inadequacy of profit nor the company had charged / provides the interest during the year. Management is considering loan and investments made in the companies as good and recoverable.

13. The Loss of Foreign Exchange Fluctuation (Net) Rs. 51,488,189/- (Previous Year Gain Rs. 62,830,248/-) ,as shown in Profit & Loss Account, has been arrived at after considering loss of Rs. 93,400,085/- (Previous Year Rs. 103,196,743/-) and gain of Rs. 41,911,896/- (Previous Year Rs. 166,026,991/-) .Further, mark to market gain/(loss) has been recognised by the company of Rs. Nil (Previous Year Rs. 2,662,384/- ) as specified in Accounting Standard 30" Financial Instruments: Recognition and Measurement" issued by ICAI.

14. a) The Accounting Standard 15 (Revised 2005) have been made applicable from F.Y. 2007-08, the requisite information and disclosure have been given separately for this year and previous year.

b) The employees'' gratuity fund scheme managed by LIC of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognises 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. The obligation for leave encashment is recognised in the same manner as gratuity.

15. Segment Reporting Policies

Identification of Segments Primary Segment

Business segment: The Company''s operating businesses are organised and managed separately according to the nature of products, with each segment representing a strategic business unit that offers different products. The two identified segments are Steel Pipes & Tubes and Power - Electricity.

Inter Division transfers of goods, as marketable products produced by separate divisions of the company for captive consumption are made as if sales were to third parties at current market prices and are included in turnover.

16. Related Parties Disclosures as per Accounting Standard - 18.

List of Related Parties with whom transactions have taken place during the year:

a) Joint Venture Company

Gondkhari Coal Mining Ltd.

b) Subsidiary Companies (Wholly owned)

Maharashtra Seamless (Singapore) Pte. Ltd.

Maharashtra Seamless Finance Ltd.

Discovery Oil & Mines Pte. Ltd.

c) Associate Companies

Jindal Pipes (Singapore) Pte. Ltd.

Star Drilling Pte. Ltd.

Jindal Premium Connection Pvt. Ltd.

(Formally known as Hydril Jindal International Pvt. Ltd.)

Dev Drilling Pte. Ltd.

d) Key Management Personnel

Shri Saket Jindal Shri S. P. Raj

e) Relatives of Key Management Personnel

Shri D.P. Jindal Smt. Savita Jindal Shri Raghav Jindal Smt. Rachna Jindal Smt. Shruti Raghav Jindal

17. Paise have been rounded off to the nearest rupee.

18. Previous year figures have been regrouped / recast, where necessary, to conform to the current year figures.

Mar 31, 2013

1.1 CONTINGENT LIABILITIES

a) Letter of Credit - Rs. 391,604,808/- (Previous Year Rs. 2,589,174,373/-)

b) Guarantees: Bank & Others - Rs. 6,585,365,409/- (Previous Year Rs. 2,823,979,013/-)

c) Sales Tax Demand under Appeal - Rs. 465,199/- (Previous Year Rs. 465,199/-)

d) Income Tax Demand under Appeal - Rs. 453,210/- (Previous Year Rs. 3,558,098/- )

e) Excise Duty Demand under Appeal - Rs. 190,325,905/- (Previous Year Rs. 190,325,905/-)

f) Indian Oil Corporation Ltd. (IOCL) had raised a claim of Rs. 179,848,064/- during the financial year 2008-09 & against this claim a performance bank guarantee of Rs. 85,279,100/- was given to IOCL, which was realized by them, and an equivalent amount is charged in the Profit & Loss Account in financial year 2008-09. The matter is still under dispute and arbitration proceeding is going on. Any further demand, if any, will be provided for on the date of final settlement.

1.2 The company has pledged 4,500,000 Equity Shares of USD 1 each held in Jindal Pipes (Singapore) Pte Ltd in favour of Standard Chartered Bank (Hong Kong) Limited acting as Security Agent towards Loan availed by Associate Company Jindal Pipes (Singapore) Pte Ltd.

1.3 The company has imported Capital Goods under the Export Promotion Capital Goods (EPCG) scheme of the Government of India, at concessional rate of duty against the Legal Undertaking (LUT) to fulfil Exports obligations. The duty saved on such import of capital goods during the year amounting to Rs. 37,139,095/- (Previous Year Rs. 28,941,186/-) and for this the company is under an obligation to export goods amounting to Rs. 222,834,570/- (Previous Year Rs. 173,647,114/-), within a period of eight years, commencing from the date of issue of licenses. The company has, however, fulfilled, the export obligation till date to the extent of Rs. 222,834,570/- (Previous Year Rs. 173,647,114/-), for which the LUTs are to be discharged.

Pending fulfilment of such future export obligations entails Custom Department a right to enforce the LUT executed by us to the extent of Rs. Nil (Previous Year Rs. Nil).

1.4 Estimated amount of contracts remaining to be executed on Capital Account, net of advances, and not provided for Rs.119,296,437/- (Previous Year Rs. 144,064,020/-).

1.5 Tangible Fixed Assets namely Land, Factory Shed & Building and Plant & Machinery acquired upto 31st March 2009 were revalued on 1st April 2009. As a result of revaluation, Revaluation Reserve was created amounting to Rs. 7,832,375,428/-, and additional depreciation of Rs. 408,899,966/- (Previous Year Rs. 408,934,046/-) provided on increased amount of assets due to revaluation computed on the basis of straight line method has been adjusted from Revaluation Reserve.

1.6 Excise duty in respect of finished goods lying in factory premises and custom duty on goods lying in custom bonded warehouse are provided and included in the valuation of inventory. This accounting treatment has no impact on the profit for the year. Credit of taxes and duties availed is accounted for by reducing the purchase cost of the materials and fixed assets.

1.7 There are no Micro and Small Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at March 31, 2013. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company. The Auditors have relied upon the same.

1.8 The Board of Directors at its meeting held on 8th April, 2013 had approved buy back of shares of the company through open market purchase for an amount upto Rs. 100 crores at a maximum price of Rs. 300/- per share.

1.9 The company has given interest free loan of Rs. 11.60 crores during the year (Previous Year Rs. 48 crores) to Maharshtra Seamless Limited Employee Welfare Trust which had been formed with the sole objective of employee welfare.

1.10 In the opinion of the company, the value on realisation of current assets, loans & advances in the ordinary course of the business shall not be less than the amount at which they are stated in the Balance Sheet.

1.11 Financial reporting of Interest in Joint Ventures as per Accounting Standard - 27:

The company''s share of the Assets and Liabilities as on 31st March 2013 and share of Income & Expenses for the Year Ended on that date in respect of Joint Venture Companies (on the basis of their unaudited statement of accounts) are given below:

1.12 The Gain of Foreign Exchange Fluctuation (Net) Rs. 62,830,248/- (Previous Year Loss Rs. 122,816,772/-) ,as shown in Profit & Loss Account, has been arrived at after considering loss of Rs. 103,196,743/- (Previous Year Rs. 195,620,698/-) and gain of Rs. 166,026,991/- (Previous Year Rs. 72,803,926/-). Further, mark to market gain/(loss) has been recognised by the company of Rs. 2,662,384/- (Previous Year Rs. Nil ) as specified in Accounting Standard 30" Financial Instruments: Recognition and Measurement" issued by ICAI.

1.13 a) The Accounting Standard 15 (Revised 2005) have been made applicable from F.Y. 2007 - 08, the requisite information and disclosure have been given separately for this year and previous year.

b) The employees'' gratuity fund scheme managed by LIC of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognises 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. The obligation for leave encashment is recognised in the same manner as gratuity.

1.14 SEGMENT REPORTING POLICIES

Identification of Segments

Primary Segment

Business Segment: The Company''s operating businesses are organised and managed separately according to the nature of products, with each segment representing a strategic business unit that offers different products. The two identified segments are Steel Pipes & Tubes and Power - Electricity.

Inter Division transfers of goods, as marketable products produced by separate divisions of the company for captive consumption are made as if sales were to third parties at current market prices and are included in turnover.

1.15 Related Parties Disclosures as per Accounting Standard - 18.

List of Related Parties with whom transactions have taken place during the year:

a) Joint Venture Companies

Hydril Jindal International Pvt. Ltd.

Gondkhari Coal Mining Ltd.

Dev Drilling Pte. Ltd. w.e.f 12.02.2013

b) Subsidiary Companies (Wholly owned)

Maharashtra Seamless (Singapore) Pte. Ltd.

Maharashtra Seamless Finance Ltd.

c) Associate Companies

Jindal Pipes (Singapore) Pte. Ltd.

Star Drilling Pte. Ltd.

d) Key Management Personnel Shri Saket Jindal

Shri S.P. Raj

e) Relatives of Key Management Personnel Shri D.P. Jindal

Smt. Savita Jindal Shri Raghav Jindal Smt. Rachna Jindal Smt. Shruti Raghav Jindal

1.16 Paise have been rounded off to the nearest rupee.

1.17 Previous year figures have been regrouped / recast, where necessary, to conform to the current year figures.

Mar 31, 2012

1.1 CONTINGENT LIABILITIES

a) Letters of Credits - Rs. 2,193,035,098/- (Previous Year Rs. 177,3 10,078/-)

b) Bank Guarantees & Others-Rs. 1,737,289,663/-(Prev,ous Year Rs. 1,753,464,851/-)

c) Sales Tax Demand under Appeal - Rs. 465,199/- (Previous Year Rs. 465,199/-)

d) Income Tax Demand under Appeal - Rs. 3,558,098/- (Previous Year Rs. 3,558,098/-)

e) Excise Duty Demand under Appeal - Rs. 190,325,905/- (Previous Year Rs. 166,1 17,1 33/-)

f) Indian CI Corporation Ltd. (IOCL) had raised a claim of Rs. I79,848,064/- during the financial year 2008-09 & against the above mentioned claim a performance bank guarantee of Rs. 85,279,100/- was given to IOCL, which was realized by them, and an equivalent amount's charged in the Profit & Loss Account in financial year 2008-09. The matter is still under dispute and arbitration proceeding is going on. Any further demand, if any, will be provided for on the date of final settlement.

1.2 The company has imported Capital Goods under the Export Promotion Capital Goods (EPCG) scheme of the Government of India, at concessional rate of duty against the Legal Undertaking (LUT) to fulfil Exports obligations. The duty saved on such import of capital goods during the year amounting to Rs. 28,941,186/- (Previous Year Rs. 83,503 025/-) and for this the company s under an obligation to export goods amounting to Rs. 173,647,1 14/- (Previous Year Rs. 501,01 8,150/-), withm a period of eight years, commencing from the date of issue of licences. The company has, however, fulfilled, the export obligation till date to the extent of Rs. 173,647,1 14/- (Previous Year Rs. 501,01 8,150/-), for which the LUTs are to be discharged.

Pending fulfilment of such future export obligations entails Custom Department a right to enforce the LUT executed by us to the extent ofRs. Nil (Previous Year Rs. Nil).

1.3 Estimated amount of contracts remaining to be executed on Capital Account, net of advances, and not provided for Rs. 144,064,020/- (Previous YearRs. 276,485,679/-).

1.4 Tangible Fixed Assets namely Land, Factory Shed & Building and Plant & Machinery acquired upto 31st March 2009 were revalued on I st April 2009. As a result of revaluation, Revaluation Reserve was created amounting to Rs. 7,832,375,428/- , and additional deprecation of Rs. 408,934,046/- (Previous Year Rs. 408,934,046/-) provided on increased amount of assets due to revaluation computed on the basis of straight line method has been adjusted from Revaluation Reserve.

1.5 Excise duty in respect of finished goods lying in factor/ premises and custom duty on goods lying in custom bonded warehouse are provided and included in the valuation of inventor/. This accounting treatment has no impact on the profit for the year. Credit of taxes and duties availed is accounted for by reducing the purchase cost of the materials and fixed assets.

1.6 There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2012. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available wrth the Company. The Auditors have relied upon the same

1.7 The Company has given mterst free loan of Rs. 48 crores during the year to Maharashtra Seamless Limited Employee Welfare Trust which had been formed with the sole objective of employee welfare .

1.8 In the opinion of the company, the value on realisation of Current Assets, Loans & Advances in the ordinary course of the business shall not be less than the amount at which they are stated in the Balance Sheet.

1.9 The Foreign Exchange Fluctuation (Net) Rs. 122,81 6,772/- ,as shown in the Note No. 2.24 of Profit & Loss Account, has been arrived at after considering loss ofRs. 195,620,698/- and gam of Rs. 72,803,926/- Further, no mark to market gam/ (loss) has been recognised as the company has not entered into any transaction of financial instrument as specified in Accounting Standard 30 "Financial Instruments : Recognition and Measurment" issued by ICAI.

1.10 a) The Accounting Standard 15 (Revised 2005) have been made applicable from FY. 2007-08, the requisite information and disclosure have been given separately for this year and previous year.

b) The employees' gratuity fund scheme managed by LIC of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognises 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. The obligation for leave encashment is recognised in the same manner as gratuity

1.11 SEGMENT REPORTING POLICIES

Identification of Segments

Primary Segment

Business segment: The Company's operating businesses are organised and managed separately according to the nature of products, wrth each segment representing a strategic business unit that offers different products. The two identified segments are Steel Pipes & Tubes and Power - Electricity

Inter Division transfers of goods, as marketable products produced by separate divisions of the company for captive consumption are made as if sales were to third parties at current market prices and are included in turnover.

1.12 Related Parties Disclosures as per Accounting Standard - 18.

List of Related Parties with whom transactions have taken place during the year:

a) jointVenture Companies

Hydnljindal International Pvt. Ltd, Gondkhar, Coal Mining Ltd,

b) Subsidiary Companies (Wholly owned)

Maharashtra Seamless (Singapore) Pte Ltd. w.e.f 06/06/2011 Maharashtra Seamless Finance Ltd. w .e.f 08/02/2012

c) Associate Company

jindal Pipes (Singapore) Pte Ltd. w.e.f 06/06/2011

d) Key Management Personnel

Shri.Saket jindal Shri, S. P. Raj

e) Relatives of Key Management Personnel

Shri D.P.jindal Smt Savita jindal Shri, Raghav jindal Smt. Rachna jindal Smt Shruti jindal

1.13 Paise have been rounded off to the nearest rupee,

1.14 The figures of the previous year have been regrouped / recast, where necessary, to conform to the current year figures including those on account of adoption of Revised Schedule VI of the Companies Act, 1956.

Mar 31, 2011

I. CONTINGENT LIABILITIES

a) Letters of Credit - Rs. 177,310,078/- (Previous Year Rs. 401,721,656/-)

b) Bank Guarantees & Others - Rs. 1,753,464,851 /-(Previous Year Rs. 1,284,061,367/-)

c) Sales Tax Demand under appeal - Rs. 465,199/- (Previous Year Rs. 465,199/-)

d) Income Tax Demand under appeal - Rs. 3,558,098/- (Previous Year Rs. 3,558,098/-)

e) Excise Duty Demand under Appeal - Rs. 166,117,133/- (Previous Year Rs. 138,564,315/-)

f) Indian Oil Corporation Ltd. (IOCL) had raised a claim of Rs. 179,848,064/- during the financial year 2008-09 & against the above mentioned claim a performance bank guarantee of Rs. 85,279,100/- was given to IOCL, which was realized by them, and an equivalent amount is charged in the Profit & Loss Account in financial year 2008-09. The matter is still under dispute and arbitration proceeding is going on. Any further demand, if any, will be provided for on the date of final settlement.

2 The company has imported Capital Goods under the Export Promotion Capital Goods (EPCG) scheme of the Government of India, at concessional rate of duty against the Legal Undertaking (LUT) to fulfil Exports obligations. The duty saved on such import of capital goods during the year is Rs. 83,503,025/- (Previous Year Rs. 83,693,801/-) and for this the company is under an obligation to export goods amounting to Rs. 501,018,150/- (Previous Year Rs. 592,423,145/-), with a period of eight year, commencing from the date of issue of licences. The company has, however, fulfilled, the required export obligation, However, the LUTs are yet to be discharged.

Pending fulfilment of such future export obligations entails Custom Department a right to enforce the LUT executed by us

3. Estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances) Rs. 276,485,679/- (Previous Year Rs. 35 1,602,260/-).

4 Assets namely Land, Factory Shed & Building and Plant & Machinery acquired upto 3 1st March, 2009 were revalued or1 st April, 2009. As a result of revaluation, Revaluation Reserve was created amounting to Rs. 7,832,375,428/- , and additiona deprecation of Rs. 408,934,046/- (Previous Year Rs. 408,934,046/-) provided on increased amount of assets due to revaluatior computed on the basis of straight line method has been adjusted from Revaluation Reserve during the year.

5. Excise duty in respect of finished goods lying in factory premises are provided and included in the valuation of inventory. This accounting treatment has no impact on the profit for the year. Credit of taxes and duties availed is accounted for by reducing the purchase cost of the materials and fixed assets.

6. There are no Micro and Small Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at March 31, 201 I. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company. The Auditors have relied upon the same.

7. Stock includes material in transit

8. In the opinion of the company, the value on realisation of current assets, loans & advances in the ordinary course of the business shall not be less than the amount at which they are stated in the Balance Sheet.

9. The amount of Exchange Difference (Net):

a) The Foreign Exchange Fluctuation (Net - of) Rs. 40,038,912/- (Previous Year Rs. 183,784,811 /-) ,as shown in the Schedule - 13 of Profit & Loss Account, has been arrived at after considering gam/ (losses) on account of mark to market adjustment of Rs. Nil (Previous Year (Rs. 1,91 1,009/-)) on forward cover contracts.

c) Foreign Currency Exposure those are not hedged: Rs. Nil (Previous Year Rs. Nil)

10. a) The Accounting Standard -15 (Revised 2005) have been made applicable from F.Y. 2007-08, the requisite information and disclosure have been given separately for this year and previous year.

b) The employees' gratuity fund scheme managed by LIC of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognises 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. The obligation for leave encashment is recognised in the same manner as gratuity.

11. Segment Reporting

Information about Business Segment

The Company's operating businesses are organised and managed separately according to the nature of products, with each segment representing a strategic business unit that offers different products. The two identified segments are Steel Pipes & Tubes and Wind Power.

12. Related Parties Disclosures as per Accounting Standard - 18.

List of Related Parties with whom transactions have taken place during the year:

a. joint Venture Companies

Hydnljmdal International Pvt. Ltd. Gondkhar, Coal Mining. Ltd.

b. Key Management Personnel Shri Saketjmda

Shri S. P. Raj

c. Relatives of Key Management Personnel ShnD.P.jmdal

Smt Savitajmda

ShnRaghavjmda

Smt. Rachnajmda

13. In compliance with the AS - 22 relating to Accounting for Taxes on Income issued by The Institute of Chartered Accountants of India, the company has adjusted the deferred tax liability (net) arising out of timing differences accruing during the year aggregating to Rs. 13,994,820/- in the Profit & Loss Account.

14. Further, Disclosure as required, under Clause 32 of Listing Agreement requirement relating to loans / advances / investments, is not applicable, as the company does not have any parent / subsidiary company.

15. Additional information pursuant to the provisions of paragraph 3 & 4 of part II of Schedule VI to the Companies Act, 1956.

16. Paise have been rounded off to the nearest rupee.

17. Previous years' figures have been re-grouped/ re-arranged/ re-class, field wherever considered necessary.

18. Schedule 1 to 20 are annexed to and form part of the Statement of Accounts.

Mar 31, 2010

1. CONTINGENT LIABILITIES

a) Letter of Credit - Rs. 401,721,656/- (Previous Year Rs. 383,197,500/-)

b) Bank Guarantees & Others - Rs. 1,284,061,367/- (Previous Year Rs. 824,1 88,827/-)

c) Sales Tax Demand under appeal - Rs. 465,199/- (Previous Year Rs. 465,199/-)

d) Income Tax Demand under appeal - Rs. 3,558,098/- (Previous Year Rs. Nil)

e) Excise Duty Demand under Appeal - Rs. 138,564,315/- (Previous Year Rs. 96,060,109/-)

f) Indian Oil Corporation Ltd. (IOCL) had raised a claim of Rs. 179,848,064/- during the financial year 2008-09 & against the above mentioned claim a performance bank guarantee of Rs. 85,279,100/- was given to IOCL, which was realized by them, and an equivalent amount is charged in the Profit & Loss Account in financial year 2008-09. The matter is still under dispute and arbitration proceeding is going on. Any further demand, if any, will be provided for on the date of final settlement

2. The company has imported Capital Goods under the Export Promotion Capital Goods (EPCG) scheme of the Government of India, at concessional rate of duty against the Legal Undertaking (LUT) to fulfil Exports obligations. The duty saved on such import of capital goods during the year amounting to Rs. 83,693,801/- (Previous Year Rs. 162,629,058/-) and for this the company is under an obligation to export goods amounting to Rs. 592,423,145/- (Previous Year Rs. 1,301,032,469/-), within a period of eight years, commencing from the date of issue of licences. The company has, however, fulfilled, the export obligation till date to the extent of Rs. 592,423,145/- (Previous Year Rs. 118,333,384/-), for which the LUTs are to be discharged.

Pending fulfilment of such future export obligations, entails Custom Department a right to enforce the LUT executed by us to the extent of Rs. Nil (Previous Year Rs. 1, 182,699,085/-).

3. Estimated amount of contracts remaining to be executed on Capital Account, net of advances, and not provided for Rs. 351,602,260/- (Previous Year Rs. 374,843,571/-).

4. Assets namely Land, Factory Shed & Building and Plant & Machinery acquired upto 31 st March, 2009 were revalued on 1st April, 2009. As a result of revaluation, Revaluation Reserve was created amounting to Rs. 7,832,375,428/-, and additional deprecation of Rs. 408,934,046/- provided on increased amount of assets due to revaluation computed on the basis of straight line method has also been adjusted to Revaluation Reserve.

5. Excise duty in respect of finished goods lying in factor/ premises and custom duty on goods lying in custom bonded warehouse are provided and included in the valuation of inventory. This accounting treatment has no impact on the profit for the year. Credit of taxes and duties availed is accounted for by reducing the purchase cost of the materials and fixed assets.

7. There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31 st March, 2010. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. The Auditors have relied upon the same

8. Stock includes material in transit

9. In the opinion of the company, the value on realisation of current assets, loans & advances in the ordinary course of the business shall not be less than the amount at which they are stated in the Balance Sheet.

10. The amount of Exchange Difference (Net);

a) The Foreign Exchange Fluctuation (Net - of) Rs.183,784,81 I/- (Previous Year Rs. 132,735,839/-), as shown in the Schedule - 13 of Profit & Loss Account, has been arrived at after considering gain / (losses) on account of mark to market adjustment of Rs 1,91 1,009/- (Previous Year (Rs. 279,059,000/-)) on forward cover contracts.

11. a) The Accounting Standard 15 (Revised 2005) have been made applicable from F.Y. 2007-08, the requisite information and disclosure have been given separately for this year and previous year.

b) The employees gratuity fund scheme managed by LIC of India is a defined benefit plan. The present value of obligation ,s determined based on actuarial valuation using the projected unit credit method, which recognises 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. The obligation for leave encashment is recognised in the same manner as gratuity.

Disclosure as per Accounting Standard 15:

12. Segment Reporting Policies

Identification of Segments

Primary Segment

Business segment: The Companys operating businesses are organised and managed separately according to the nature of products, with each segment representing a strategic business unit that offers different products. The two identified segments are Steel Pipes & Tubes and Wind Power.

Inter Division transfers of goods, as marketable products produced by separate divisions of the company for captive consumption are made as if sales were to third parties at current market prices and are included in turnover.

13. Related Parties Disclosures as per Accounting Standard - 18.

List of Related Parties with whom transactions have taken place during the year:

a. joint Venture Companies

Hydnl jindal International PvL Ltd,

Gondkhari, Coal Mining. Ltd,

b. Key Management Personnel

Shri Saket jindal

Shri , S. P. Raj

c. Relatives of Key Management Personnel Shri D.P. jindal

Smt Savita jindal

Shri, Raghav jindal

Smt. Rachna jindal

14. In compliance with the AS - 22 relating to Accounting for Taxes on Income issued by The Institute of Chartered Accountants of India the company has adjusted the deferred tax liability (net) arising out of timing differences accruing during the year aggregating to Rs. 6,976,530/- in the Profit & Loss Account.

15. Further, Disclosure as required, under Clause 32 of Listing Agreement requirement relating to loans/advances/investments are not applicable, as the company does not have any parent/ subsidiary company.

16. Paise have been rounded off to the nearest rupee.

17. Previous years figures have been re-grouped/re-arranged/ re-classified wherever considered necessary.

18. Schedule I to 20 are annexed to and form part of the Statement of Accounts.

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