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Notes to Accounts of Maithan Alloys Ltd.

Mar 31, 2023

The defined benefit plans expose the Group to a number of actuarial risks as below:

(a) Interest Risk : A decrease in the bond interest rate will increase the plan liability. However, this will be parfially offset by an increase in the value of plan''s debt investments.

(b) Salary risk : The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan parficipants. As such, an increase in salary of the plan parficipants will increase the plan''s liability.

(c) Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best esfimate of the mortality

of plan parficipants both during and after their employment. An increase in the life expectancy of the plan parficipants will increase the plan''s liability.

(d) Inflafion risk: Some of the Group''s Pension obligations are linked to inflafion, and higher inflation will lead to higher liabilifies although, in most cases, caps on the level of inflationary increases are in place to protect the plan against extreme inflafion.

(Hi) Leave Encashment

The liabilifies for leave encashment are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured as the present value of the expected future payments to be made in respect of services provided by employees up to the end of the reporfing period using the Projected Unit Credit Method. The benefits are discounted using the market yields at the end of the reporfing period that have terms approximafing to the terms of related obligafion. Remeasurements as a result of experience adjustments and changes in actuarial assumpfions are recognised in Other Comprehensive Income.

(48) Financial Risk Management

The Company has a system-based approach to risk management, anchored to policies & procedures and internal financial controls aimed at ensuring early identification, evaluation and management of key financial risks (such as market risk, credit risk and liquidity risk) that may arise as a consequence of its business operations as well as its investing and financing activities.

Accordingly, the Company''s risk management framework has the objective of ensuring that such risks are managed within acceptable and approved risk parameters in a disciplined and consistent manner and in compliance with applicable regulations. It also seeks to drive accountability in this regard. The Company''s financial liabilities includes Borrowings, Trade Payables and Other Financial Liabilities. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include Investment, Trade Receivables, Cash and Cash Equivalents and Other Financial Assets that are derived directly from its operations.

perfi

, , , ( ^ In Cr.)

(iii) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in the market interest rates relates primarily to the Company''s borrowings obligations with floating interest rates. The borrowings of the Company are principally denominated in Indian Rupees linked to MCLR with floating rates of interest. The Company invests surplus funds in Short-Term Deposits and Mutual Funds, some of which generate a tax-free return, to achieve the Company''s goal of maintaining liquidity, carrying manageable risk and achieving satisfactory returns.

(iv) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s foreign currency denominated Borrowings, Creditors and Debtors. This foreign currency risk is covered by using foreign exchange forward contracts. Since the Company has both imports as well as exports (exports are more than imports) the currency fluctuation risk is largely mitigated by matching the export inflows with import outflows. Surplus exports are hedged using simple forward exchange contracts depending on the market conditions. The hedge mechanisms are reviewed periodically to ensure that the risk from fluctuating currency rates is appropriately managed. The following analysis is based on the gross exposure as at the reporting date which could affect the Profit or Loss or Other Comprehensive Income. The exposure summarised below is mitigated by some of the derivative contracts entered into by the Company as disclosed under the section on "Derivative financial instruments". The Company does not hold derivative financial instruments for speculative purposes.

(b) Credit Risk

"Credit risk refers to the risk that counter party will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counter parties, where appropriate, as a means of mitigating the risk of financial loss from defaults. Credit risk on receivables is limited as almost all domestic sales are against advance payment or letters of credit (except sale made to PSU''s) and export sales are on the basis of documents against payment or letters of credit."

i) Financial Instruments and Deposits

For current investments, counter party limits are in place to limit the amount of credit exposure to any one counter party. This, therefore, results in diversification of credit risk for the Company''s mutual fund investments.

With respect to the Company''s investing activities, counter parties are short listed and exposure limits determined on the basis of their credit rating (by independent agencies), financial statements and other relevant information. Taking into account the experience of the Company over time, the counter party risk attached to such assets is considered to be insignificant.

None of the Company''s Cash and Cash Equivalents, including Time Deposits with banks, are past due or impaired. Regarding Loans and Other Financial Assets (both current and non-current), there were no indications as at 31 March 2023, that defaults in payment obligations will occur .

ii) Trade Receivables

"Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and are generally carrying 30 days credit terms. Outstanding customer receivables are regularly monitored. The Company has no concentration of credit risk as the customer base is widely distributed both economically and geographically. The risk related to trade receivable is presented in note no. 15"

The credit quality of the Company''s customers is monitored on an ongoing basis and assessed for impairment where indicators of such impairment exist. The Company uses simplified approach for impairment of financial assets. If credit risk has not increased significantly, 12-month expected credit loss is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime expected credit loss is used. The solvency of the debtor and their ability to repay the receivable is considered in assessing receivables for impairment. Where receivables have been impaired, the Company actively seeks to recover the amounts in question and enforce compliance with credit terms.

(c) Liquidity Risk

"Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the underlying business, the Company maintains sufficient cash and liquid investments available to meet its obligation."

Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. The management also considers the cash flow projections and level of liquid assets necessary to meet these on a regular basis.

(49) Capital Management

The Company''s objectives when managing capital is to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth. The Company''s overall strategy remains unchanged from previous year.

The Company''s capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term goals of the Company. The Company sets the amount of capital required on the basis of annual business and long-term operating plans which include capital and other strategic investments.

The funding requirements are met through a mixture of equity, internal fund generation and borrowings. The Company''s policy is to use current and non-current borrowings to meet anticipated funding requirements.

The Company monitors capital on the basis of the net debt to equity ratio which is net debt divided by total capital (equity plus net debt). The Company is not subject to any externally imposed capital requirements. In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

(50) Disclosures on Financial Instruments

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 3 to the financial statements.

(I) Fair Value Hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standards.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices as at the reporting date.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

The Company assessed that fair value of trade receivables, cash and cash equivalent, bank balances, loans, trade payable and other financial assets and liabilifies except derivative financial instruments approximate their carrying amounts largely due to the short term maturifies of these instruments. The Company''s borrowings have been contracted at market rates of interest. Accordingly, the carrying value of such borrowings approximate fair value.

(iv) Significant Estimates

The fair value of financial instruments that are not traded in an acfive market is determined using valuafion techniques. The Company uses its judgement to select a variety of methods and make assumpfions that are mainly based on market condifions existing at the end of each reporfing period. For details of the key assumpfions used and the impact of changes to these assumpfions see (ii) above.

(51) Segment Reporting

The Company is primarily in the business of manufacturing of "" Ferro Alloys "". Revenue from other activities is not material.

Accordingly, there are no reportable business segments as per Ind AS 108.

(56) A. Contingent Liabilities and Commitments

In the ordinary course of business, the Company faces claims and assertions by various parties. The Company assesses such claims and assertions and monitors the legal environment on an ongoing basis, with the assistance of external legal counsel, wherever necessary. The Company records a liability for any claims where a potential loss is probable and capable of being estimated and discloses such matters in its financial statements, if material. For potential losses that are considered possible but not probable, the Company provides disclosure in the financial statements but does not record a liability in its accounts unless the loss becomes probable.

The following is a description of claims and assertions where a potential loss is possible, but not probable. The Company believes that none of the contingencies described below would have a material adverse effect on the Company''s financial condition, results of operations or cash flow.

(i) Contingent Liabilities:

Particulars

As At 31 March 2023

As At 31 March 2022

a) Claims against the Company/ disputed liabilities not acknowledged as debt

- Income Tax

7.79

6.09

- Excise duty and service tax demand

4.31

-

- Value Added Tax

0.11

-

12.21

6.09

The amounts shown above represent the possible estimates arrived at on the basis of available information. The uncertainties and timing of the cash flows are dependent on the outcome of different legal processes which have been invoked by the Company or the claimants, as the case may be and, therefore, cannot be estimated accurately. The Company does not expect any reimbursement in respect of above contingent liabilities.

In the opinion of the management, no provision is considered necessary for the disputes mentioned above on the ground that there are fair chances of successful outcome of the appeals.

(ii) Commitments-

Particulars

As At 31 March 2023

As At 31 March 2022

Estimated amount of contracts remaining to be executed on capital commitments

1.17

-

(56) B. The Board of Directors of Maithan Alloys Limited ("Company" or "MAL" or "Transferee Company"), at its meeting held on 5 May 2021 had considered and approved the Composite Scheme of Arrangement ("Scheme") amongst Ma Kalyaneshwari Holdings Private Limited ("MKH" or "Demerged Company" or "Transferor Company") and Anjaney Land Assets Private Limited ("ALAPL" or "Resulting Company") and the Company and their respective shareholders and creditors under Sections 230 to 232 read with Section 66 and other applicable provisions of the Companies Act, 2013.

Subsequently, the Board of directors of the Company at its Meeting held on 11 November 2021 have modified the Scheme to fix the '' Appointed Date'' of the Scheme as 01 November 2021 and related consequential changes thereof. The approval of NCLT to the Scheme is awaited. Hence, no adjustment has been made in this Financial Statement.

(57) ADDITIONAL REGULATORY DISCLOSURES AS PER SCHEDULE III OF COMPANIES ACT, 2013 :

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

ii) There are no transactions with the Companies whose name are struck off under Section 248 of The Companies Act, 2013 or Section 560 of the Companies Act, 1956 during the year ended 31 March 2023.

iii) All applicable cases where registration of charges or satisfaction is required to be filed with Registrar of Companies have been filed. No registration or satisfaction is pending at the year ended 31 March 2023.

iv) The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (ultimate beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiary

vi) The Company has not operated in any crypto currency or Virtual Currency transactions.

vii) During the year the Company has not disclosed or surrendered, any income other than the income recognised in the books of accounts in the

(iii) Details of investments:

Particulars of investments as required under Section 186(4) of the Companies Act, 2013 have been disclosed in note 8

(59) The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/ interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

(60) (i) The figures appearing in financial statements has been rounded off to the nearest Cr., as required by general instruction for

preparation of financial statements in Division II of Schedule III of the Companies Act, 2013.

(ii) "0.00" represent the figure below ^ 50,000 because of rounding off the figures in Cr.

(61) The previous year figures have been reclassified and regrouped where considered necessary to confirm to this year''s presentations.

(62) The financial statement for the year ended 31 March, 2023 were approved by the Board of Directors on 23 May 2023.

The accompanying notes 1 to 62 are an integral part of the Standalone financial statements.


Mar 31, 2021

Capital Reserve

This reserve represents the difference between value of the net assets transferred and consideration paid for such assets in the course of amalgamation and also relates to forfeiture of shares.

Securities Premium

This reserve represents the premium on issue ofshares and can be utilized in accordance with the provisions ofthe Companies Act, 2013.

Retained Earnings

This reserve represents the cumulative profits of the Company and effects of remeasurement of defined benefit obligations. This reserve can be utilized in accordance with the provisions of the Companies Act, 2013.

Equity Instruments through Other Comprehensive Income

This reserve represents the cumulative gains (net of losses) arising on the revaluation of equity instruments measured at fair value through Other Comprehensive Income, net of tax. The same shall be transferred to retained earnings when those instruments are disposed off.

Cash Flow Hedge Reserve

This reserve represents the cumulative effective portion of changes in fair value of derivatives that are designated as Cash Flow Hedges. It may be reclassified to profit or loss or included in the carrying amount ofthe non-financial asset in accordance with the Company’s accounting policy.

The Company has a system-based approach to risk management, anchored to policies & procedures and internal financial controls aimed at ensuring early identification, evaluation and management of key financial risks (such as market risk, credit risk and liquidity risk) that may arise as a consequence of its business operations as well as its investing and financing activities.

Accordingly, the Company’s risk management framework has the objective of ensuring that such risks are managed within acceptable and approved risk parameters in a disciplined and consistent manner and in compliance with applicable regulations. It also seeks to drive accountability in this regard.

The Company’s financial liabilities includes Borrowings, Trade Payables and Other Financial Liabilities. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include Trade Receivables, Cash and Cash Equivalents and Other Financial Assets that are derived directly from its operations.

It is the Company’s policy that derivatives are used exclusively for hedging purposes and not for trading or speculative purposes.

The Board of Directors reviewed policies for managing each of these risks which are summarised below:-

(a) Market Risk

(i) Commodity Price Risk

Alloy industry being cyclical in nature, realisations gets adversely affected during downturn. Higher input prices or higher production than the demand ultimately affects the profitability. The Company has mitigated this risk by well integrated business model.

(ii) Price Risk

Market price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company is not an active investor in equity markets; it continues to hold certain investments in equity for long term value accretion which are accordingly measured at fair value through Other Comprehensive Income. Accordingly, fair value fluctuations arising from market volatility is recognised in Other Comprehensive Income.

The Company also invests in mutual fund schemes of leading fund houses. Such investments are susceptible to market price risk of the underlying assets, whether those changes are caused by factors specific to the individual financial instrument or its issuer or by factors affecting all similar financial instruments traded in the market.

Sensitivity

(iii) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in the market interest rates relates primarily to the Company’s borrowings obligations with floating interest rates. The borrowings of the Company are principally denominated in Indian Rupees linked to MCLR with floating rates of interest.

The Company invests surplus funds in Short-Term Deposits and Mutual Funds, some of which generate a tax-free return, to achieve the Company’s goal of maintaining liquidity, carrying manageable risk and achieving satisfactory returns.

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s foreign currency denominated Borrowings, Creditors and Debtors. This foreign currency risk is covered by using foreign exchange forward contracts.

Since the Company has both imports as well as exports (exports are more than imports) the currency fluctuation risk is largely mitigated by matching the export inflows with import outflows. Surplus exports are hedged using simple forward exchange contracts depending on the market conditions.

The hedge mechanisms are reviewed periodically to ensure that the risk from fluctuating currency rates is appropriately managed. The following analysis is based on the gross exposure as at the reporting date which could affect the Profit or Loss or Other Comprehensive Income. The exposure summarised below is mitigated by some of the derivative contracts entered into by the Company as disclosed under the section on “Derivative financial instruments”.

1% increase or decrease in foreign exchange rates will have no material impact on profit.

(v) Derivative Financial Instruments and Risk Management

The Company has entered into variety of foreign currency forward contracts to manage its exposure to fluctuations in foreign exchange rates. These financial exposures are managed in accordance with the Company’s risk management policies and procedures.

(b) Credit Risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. Credit risk on receivables is limited as almost all domestic sales are against advance payment or letters of credit (except sale made to PSU’s) and export sales are on the basis of documents against payment or letters of credit.

i) Financial Instruments and Deposits

For current investments, counterparty limits are in place to limit the amount of credit exposure to any one counterparty. This, therefore, results in diversification of credit risk for the Company’s mutual fund investments.

With respect to the Company’s investing activities, counter parties are shortlisted and exposure limits determined on the basis of their credit rating (by independent agencies), financial statements and other relevant information. Taking into account the experience of the Company over time, the counter party risk attached to such assets is considered to be insignificant.

None ofthe Company’s Cash and Cash Equivalents, including Time Deposits with banks, are past due or impaired. Regarding Trade Receivables, Loans and Other Financial Assets (both current and non-current), there were no indications as at 31 March 2021, that defaults in payment obligations will occur.

ii) Trade Receivables

Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and are generally carrying 30 days credit terms. Outstanding customer receivables are regularly monitored. The Company has no concentration of credit risk as the customer base is widely distributed both economically and geographically. The ageing of trade receivables as of Balance Sheet date is given below. The age analysis have been considered from the due date:

Receivables are deemed to be past due or impaired with reference to the Company’s normal terms and conditions of business. These terms and conditions are determined on a case to case basis with reference to the customer’s credit quality and prevailing market conditions. Receivables that are classified as ‘past due’ in the above tables are those that have not been settled within the terms and conditions that have been agreed with that customer. The Company based on past experiences does not expect any material loss on its receivables and hence no allowance is deemed necessary on account of Expected Credit Loss.

The credit quality of the Company’s customers is monitored on an ongoing basis and assessed for impairment where indicators of such impairment exist. The Company uses simplified approach for impairment of financial assets. If credit risk has not increased significantly, 12-month expected credit loss is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime expected credit loss is used. The solvency of the debtor and their ability to repay the receivable is considered in assessing receivables for impairment. Where receivables have been impaired, the Company actively seeks to recover the amounts in question and enforce compliance with credit terms.

(c) Liquidity Risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the underlying business, the Company maintains sufficient cash and liquid investments available to meet its obligation.

Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. The management also considers the cash flow projections and level of liquid assets necessary to meet these on a regular basis.

(43) Capital Management

The Company’s objectives when managing capital is to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth. The Company’s overall strategy remains unchanged from previous year.

The Company’s capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term goals of the Company. The Company sets the amount of capital required on the basis of annual business and longterm operating plans which include capital and other strategic investments.

The funding requirements are met through a mixture of equity, internal fund generation and borrowings. The Company’s policy is to use current and non-current borrowings to meet anticipated funding requirements.

The Company monitors capital on the basis of the gearing ratio which is net debt divided by total capital (equity plus net debt) . The Company is not subject to any externally imposed capital requirements. In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares .

a) Proposed dividends on equity shares are subject to approval at the annual general meeting and are not recognised as a liability.

b) In Union Budget 2020, taxability of dividend has been changed from Corporates to recipient of dividend therefore no disclosure is made for the dividend distribution tax in respect of dividend proposed for the current year.

(44) Disclosures on Financial Instruments

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 3 to the financial statements.

(i) Fair Value Hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standards.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

(ii) Valuation Methodology

Specific valuation techniques used to value financial instruments include:

• the fair value of investment in quoted equity shares and mutual funds is measured at quoted price or NAV.

• the fair value of level 3 instruments is valued using inputs based on information about market participants assumptions and other data that are available.

• the fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date.

• All foreign currency denominated assets and liabilities are translated using exchange rate at reporting date.

(v) Significant Estimates

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The Company uses its judgement to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period. For details of the key assumptions used and the impact of changes to these assumptions see (ii) above.

(45) A. Contingent Liabilities and Commitments

In the ordinary course of business, the Company faces claims and assertions by various parties. The Company assesses such claims and assertions and monitors the legal environment on an ongoing basis, with the assistance of external legal counsel, wherever necessary. The Company records a liability for any claims where a potential loss is probable and capable of being estimated and discloses such matters in its financial statements, if material. For potential losses that are considered possible but not probable, the Company provides disclosure in the financial statements but does not record a liability in its accounts unless the loss becomes probable.

The following is a description ofclaims and assertions where a potential loss is possible, but not probable. The Company believes that none of the contingencies described below would have a material adverse effect on the Company’s financial condition, results of operations or cash flow.

(45) B. The Board of directors of the Company in its meeting held on 5 May 2021 have approved a Composite Scheme of Arrangement (“Scheme”) amongst Ma Kalyaneshwari Holdings Private Limited (“MKH” or “Demerged Company” or “Transferor Company) and Anjaney Land Assets Private Limited (“ALAPL” or “Resulting Company”) and Maithan Alloys Limited (“MAL” or Transferee Company” or “Company) and their respective shareholders and creditors under the provisions of Section 230 to 232 read with Section 66 and other applicable Provisions of the Companies Act, 2013.

The Scheme provides for the demerger ofthe Real Estate and Ancillary Business ofMKH into ALAPL (“Part II ofthe Scheme “) and upon effectiveness of part II of the Scheme, amalgamation of MKH into MAL with the Appointed Date being same as the Effective Date.

The Scheme is conditional upon and subject to necessary statutory and regulatory approvals under applicable laws, including the approval of concerned stock exchange(s), Securities and Exchange Board of India and the jurisdictional National Company Law Tribunal.

(46) Segment Reporting

The Company is primarily in the business of manufacturing of “Ferro Alloys”. Revenue from other activities is not material. Accordingly, there are no reportable business segments as per Ind AS 108.

Additional information:

(50) Due to outbreak of COVID-19 globally and in India, the Company’s management has made business and financial risks assessments, and believes that the impact is likely to be short term in nature. The management does not see any medium to long term risks in the company’s ability to continue as going concern and meeting its liabilities as and when they fall due. Due to the nature of the pandemic, the Company will continue to monitor developments to identify significant uncertainties relating to revenue in future period.

(51) The previous year figures have been reclassified and regrouped where considered necessary to confirm to this year’s presentations.

The accompanying notes 1 to 51 are an integral part of the financial statements.

In terms of our report attached.


Mar 31, 2018

1. Corporate Information

Maithan Alloys Limited (“the Company”) is a public company limited by shares, incorporated on 19 September, 1985 and domiciled in India. Its shares are listed on the Calcutta Stock Exchange Limited (CSE) and the National Stock Exchange of India Limited (NSE) and are traded on BSE Limited (BSE) under Permitted category. The Company is engaged in the business of manufacturing and exporting of all three bulk Ferro alloys- Ferro Manganese, Silico Manganese and Ferro Silicon. It is also engaged in the generation and supply of wind power and has a captive power plant.

2. Basis of preparation of Financial Statements

a. Statement of compliance

The financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS) notified under section 133 read with Rule 4A of the Companies (Indian Accounting Standards) Rules, 2015, Companies (Indian Accounting Standards) Amendment Rules, 2016 ,as amended, and other provisions of the Companies Act, 2013 (“the Act”).

The financial statements up to and including the year ended 31 March, 2017 were prepared in accordance with the Generally Accepted Accounting Principles (GAAP) in India and complied with the accounting standards [“previous (GAAP)”] as notified under Section 133 of the Companies Act ,2013 read together with Rule 7 of the Companies (Accounts) Rules, 2014 and other provisions of the Act.

These financial statements for the year ended 31 March, 2018 are the first financial statements with comparatives, prepared under Ind AS. The date of transition to Ind AS is 1 April, 2016. Previous period figures have been restated to Ind AS in accordance with Ind AS 101 ‘First Time Adoption of Indian Accounting Standard’ and an explanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows is given in Note 48.

b. Basis of measurement

The financial statements have been prepared on historical cost convention and on an accrual method of accounting, except for certain financial assets and liabilities that are measured at fair value/ amortised cost. (Refer note 3(j) below).

c. Use of Estimates and Judgments

The estimates and judgments used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the existing circumstances. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

d. Functional Currency and Presentation Currency

The financial statements are prepared in Indian Rupees (Rs.) which is the Company’s functional currency for all its operations. All financial information presented in Indian Rupees (Rs.) has been rounded to the nearest lakh with two decimal places, unless otherwise stated.

e. Current and Non-Current Classification

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle (twelve months) and other criteria set out in the schedule III to the Companies Act, 2013 and Ind AS 1 -’Presentation of Financial Statements’.

All assets and liabilities are classified as current when it is expected to be realized or settled within the Company’s normal operating cycle, i.e. twelve months. All other assets and liabilities are classified as non- current.

Deferred tax assets and liabilities are classified as non-current only.

(3) (i): Entire property, plant and equipment are given as security against borrowings, the details related to which have been described in Note 18 and Note 22 on “Borrowings”.

(3) (ii): For the year ending 31 March 2018 foreign exchange gain/loss of RS.5.07 lakh loss (31 March 2017 - RS.138.36 lakh gain) is added/ deducted to respective assets in accordance with para 46A of AS-11 (Previous GAAP), since the Company has applied the exemption under Ind AS 101 and accordingly opted to continue the policy adopted for accounting for exchange differences arising from translation of long-term foreign currency monetary items recognised in the financial statement.

(3) (iii): For Property, plant and equipment and intangible assets existing as on 1 April 2016, i.e. date of transition to Ind AS, the Company has used Indian GAAP carrying value as deemed cost (refer note no 48 (A.a) Ind AS Exemption applied).

(3) (iv): With effect from 1 April 2017, the Company has revised the useful life of Plant & Machinery at Visakhapatnam Unit from 12 years to 20 years based on technical evaluation on assessment of the physical condition of the underlying assets. Had there been no change in the useful life of assets, depreciation for the year would have been higher by RS.1,008 lakh.

3 (vi) Leases

The Company has taken land under finance leases. Significant leasing arrangements include assets dedicated for use under long term arrangements. The arrangements covers a substantial part of the economic life of the underlying asset and contain a renewal option on expiry. Payments under long term arrangements involving use of dedicated assets are allocated between those relating to the right to use of assets, executory services and for output based on the underlying contractual terms and conditions. Any change in the allocation assumptions may have an impact on lease assessment and/or lease classification.

The minimum lease payments and the present value of minimum lease payments in respect of arrangements classified as finance leases are as below:

4.1 For method of valuation of inventories, refer note 3(k).

4.2 Inventories have been hypothecated as security against certain bank borrowings of the Company (Refer note 22).

5.1 Trade receivables have been hypothecated as security against bank borrowings of the Company (Refer note 22).

6.1 Bank deposit are restricted in use as it relates to margin money.

6.2 Earmarked unpaid dividend accounts are restricted in use as it relates to unclaimed or unpaid dividend.

a) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity share having a face value of RS.10/- per share with one vote per equity share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after settling off all outside liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

b) Details of shareholders holding more than 5% shares in the Company

c) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date

7.1 Foreign currency loan from banks are securely by first mortgage/charge on entire property, plant and equipment and second charge on current assets of the Visakhapatnam Unit and are further secured by personal guarantees of two directors.

8.1 Working capital loans are secured by first charge and hypothecation of raw materials, work in progress, finished goods, stores and consumables, receivables, bills, etc. These are further secured by first charge on moveable and immoveable property, plant and equipment both present and future of both Kalyaneshwari and Byrnihat Units and second charge on moveable and immoveable property, plant and equipment both present and future of Visakhapatnam Unit.

9.1 Trade payables are non-interest bearing and have an average term of two to three months.

9.2 There are no dues to Micro and Small Enterprises as at 31 March 2018. 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.

10.1 Dividend received includes Nil (2016-17: RS.11,524.65 lakh) as dividend received and short term loss of Nil (2016-17: RS.11,464.21 lakh).

11.1 Raw material purchase is net of sale of unusable raw materials.

12.1 Represents excise duty related to the difference between the closing stock and opening stock.

12.2 Expenditure on Corporate Social Responsibility (CSR) activities

13.1 Movements in deferred tax (liabilities) / assets

The Company has accrued significant amounts of deferred tax. The majority of the deferred tax liability represents accelerated tax relief for the depreciation of property, plant and equipment and net of losses carried forward and unused tax credit in the form of MAT credits carried forward. Significant components of Deferred tax (assets) & liabilities recognized in the Balance Sheet as follows:

I. Leave Encashment

The liabilities for leave encashment are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service.They are therefore measured as the present value of the expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the Projected Unit Credit Method.The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in Other comprehensive income.

II. Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

(14) Financial risk management

The Company has a system-based approach to risk management, anchored to policies and procedures and internal financial controls aimed at ensuring early identification, evaluation and management of key financial risks (such as market risk, credit risk and liquidity risk) that may arise as a consequence of its business operations as well as its investing and financing activities.

Accordingly, the Company’s risk management framework has the objective of ensuring that such risks are managed within acceptable and approved risk parameters in a disciplined and consistent manner and in compliance with applicable regulations. It also seeks to drive accountability in this regard.

The Company’s financial liabilities includes Borrowings , Trade payables and Other financial liabilities. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include Trade receivables, Cash & cash equivalents and Other financial assets that are derived directly from its operations.

It is the Company’s policy that derivatives are used exclusively for hedging purposes and not for trading or speculative purposes.

The Board of Directors reviewed policies for managing each of these risks which are summarised below:-

(a) Market Risk

(i) Commodity price risk

Alloy industry being cyclical in nature, realisations gets adversely affected during downturn. Higher input prices or higher production than the demand ultimately affects the profitability. The Company has mitigated this risk by well integrated business model.

(ii) Price risk

Market price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company is not an active investor in equity markets; it continues to hold certain investments in equity for long term value accretion which are accordingly measured at fair value through other comprehensive income. Accordingly, fair value fluctuations arising from market volatility is recognised in other comprehensive income.

The Company also invests in mutual fund schemes of leading fund houses. Such investments are susceptible to market price risk of the underlying assets, whether those changes are caused by factors specific to the individual financial instrument or its issuer or by factors affecting all similar financial instruments traded in the market.

Sensitivity

The table below summarizes the impact of increases/decreases of the share prices/mutual fund NAV on the Company’s investment:

(iii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in the market interest rates relates primarily to the Company’s borrowings obligations with floating interest rates. The borrowings of the Company are principally denominated in Indian Rupees (linked to MCLR) and US dollars (linked to US dollar LIBOR)with floating rates of interest. The foreign debt has been hedged via interest rate swap, hence there is no exposure to interest rate risk.

The Company invests surplus funds in short-term deposits and mutual funds, some of which generate a tax-free return, to achieve the Company’s goal of maintaining liquidity, carrying manageable risk and achieving satisfactory returns.

(iv) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s foreign currency denominated borrowings, creditors and debtors. This foreign currency risk is covered by using foreign exchange forward contracts.

Since the Company has both imports as well as exports (exports are more than imports) the currency fluctuation risk is largely mitigated by matching the export inflows with import outflows. Surplus exports are hedged using simple forward exchange contracts depending on the market conditions.

The hedge mechanisms are reviewed periodically to ensure that the risk from fluctuating currency rates is appropriately managed. The following analysis is based on the gross exposure as at the reporting date which could affect the profit or loss or other comprehensive income. The exposure summarised below is mitigated by some of the derivative contracts entered into by the Company as disclosed under the section on “Derivative financial instruments”.

Foreign Currency Sensitivity

1% increase or decrease in foreign exchange rates will have no material impact on profit.

(v) Derivative financial instruments and risk management

The Company has entered into variety of foreign currency forward contracts to manage its exposure to fluctuations in foreign exchange rates. These financial exposures are managed in accordance with the Company’s risk management policies and procedures.

The Company also enters into interest rate swaps/agreements mainly to manage exposure on its variable rate debt. The Company uses interest rate derivatives or currency swaps to hedge exposure to exchange rate fluctuations on principal and interest payments for borrowings denominated in foreign currencies.

The Company uses forward exchange contracts to hedge its exposures in foreign currency arising from firm commitments and highly probable forecast transactions. Forward exchange contracts, designated under hedging, that were outstanding on respective reporting dates, expressed in INR:

(b) Credit Risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. Credit risk on receivables is limited as almost all domestic sales are against advance payment or letters of credit (except sale made to PSU’s) and export sales are on the basis of documents against payment or letters of credit.

i) Financial instruments and deposits

For current investments, counterparty limits are in place to limit the amount of credit exposure to any one counterparty. This, therefore, results in diversification of credit risk for the Company’s mutual fund investments.

With respect to the Company’s investing activities, counter parties are shortlisted and exposure limits determined on the basis of their credit rating (by independent agencies), financial statements and other relevant information. Taking into account the experience of the Company over time, the counter party risk attached to such assets is considered to be insignificant.

None of the Company’s cash and cash equivalents, including time deposits with banks, are past due or impaired. Regarding trade receivables, loans and other financial assets (both current and non-current), there were no indications as at 31 March 2018, that defaults in payment obligations will occur .

ii) Trade receivables

Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and are generally carrying 30 days credit terms. Outstanding customer receivables are regularly monitored. The Company has no concentration of credit risk as the customer base is widely distributed both economically and geographically. The ageing of trade receivables as of Balance Sheet date is given below. The age analysis have been considered from the due date:

* This includes debtors overdue for less than 3 months amounting to RS.8283.54 lakh as at 31 March 2018.

Receivables are deemed to be past due or impaired with reference to the Company’s normal terms and conditions of business. These terms and conditions are determined on a case to case basis with reference to the customer’s credit quality and prevailing market conditions. Receivables that are classified as ‘past due’ in the above tables are those that have not been settled within the terms and conditions that have been agreed with that customer. The Company based on past experiences does not expect any material loss on its receivables and hence no allowance is deemed necessary on account of Expected Credit Loss.

The credit quality of the Company’s customers is monitored on an ongoing basis and assessed for impairment where indicators of such impairment exist. The Company uses simplified approach for impairment of financial assets. If credit risk has not increased significantly, 12-month expected credit loss is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime expected credit loss is used. The solvency of the debtor and their ability to repay the receivable is considered in assessing receivables for impairment. Where receivables have been impaired, the Company actively seeks to recover the amounts in question and enforce compliance with credit terms.

(c) Liquidity Risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the underlying business, the Company maintains sufficient cash and liquid investments available to meet its obligation.

Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. The management also considers the cash flow projections and level of liquid assets necessary to meet these on a regular basis.

(i) Financing arrangements

The Company had access to the following undrawn funding facilities at the end of the reporting period:

The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice. Subject to the continuance of satisfactory credit ratings, the bank loan facilities in INR may be drawn at any time.

The Company remains committed to maintaining a healthy liquidity, gearing ratio, deleveraging and strengthening the financial position. The maturity profile of the Company’s financial liabilities based on the remaining period from the date of Balance Sheet to the contractual maturity date is given in the table below. The figures reflect the contractual undiscounted cash obligation of the Company.

* Includes non-current borrowings, current borrowings, current maturities of non-current borrowings and committed interest payments including finance lease obligations.

** Includes other non-current and current financial liabilities but excludes current maturities of non-current borrowings and derivatives and committed interest payments on borrowings.

(15) Capital management

The Company’s objectives when managing capital is to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth. The Company’s overall strategy remains unchanged from previous year.

The Company’s capital management is intended to create value for shareholders by facilitating the meeting of longterm and short-term goals of the Company. The Company sets the amount of capital required on the basis of annual business and long-term operating plans which include capital and other strategic investments.

The funding requirements are met through a mixture of equity, internal fund generation and other non-current borrowings. The Company’s policy is to use current and non-current borrowings to meet anticipated funding requirements.

The Company monitors capital on the basis of the gearing ratio which is net debt divided by total capital (equity plus net debt) . The Company is not subject to any externally imposed capital requirements. In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

(16) Disclosures on financial instruments

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 3 to the financial statements.

(i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the fair value of all assets and liabilities

- the fair value of the financial instruments is determined using discounted cash flow analysis.

(v) Significant estimates

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The Company uses its judgement to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period. For details of the key assumptions used and the impact of changes to these assumptions see (ii) above.

(17) Contingent liabilities and commitments

In the ordinary course of business, the Company faces claims and assertions by various parties. The Company assesses such claims and assertions and monitors the legal environment on an ongoing basis, with the assistance of external legal counsel, wherever necessary. The Company records a liability for any claims where a potential loss is probable and capable of being estimated and discloses such matters in its financial statements, if material. For potential losses that are considered possible but not probable, the Company provides disclosure in the financial statements but does not record a liability in its accounts unless the loss becomes probable.

The following is a description of claims and assertions where a potential loss is possible, but not probable. The Company believes that none of the contingencies described below would have a material adverse effect on the Company’s financial condition, results of operations or cash flow.

The amounts shown above represent the possible estimates arrived at on the basis of available information. The uncertainties and timing of the cash flows are dependent on the outcome of different legal processes which have been invoked by the Company or the claimants, as the case may be and, therefore, cannot be estimated accurately. The Company does not expect any reimbursement in respect of above contingent liabilities.

In the opinion of the management, no provision is considered necessary for the disputes mentioned above on the ground that there are fair chances of successful outcome of the appeals.

(18) Segment reporting

The Company is primarily in the business of manufacturing of “Ferro Alloys”. Revenue from other activities is not material. Accordingly, there are no reportable business segments as per Ind AS 108.

18.1 For productwise information refer note 28.

18.2 The Company is not reliant on revenue from transactions with any single external customer.

(19) Related party disclosures

a) Name of the related parties and description of relationship:

I Subsidiary Companies

1 AXL Exploration (P) Ltd.

2 Anjaney Minerals Ltd.

3 Salanpur Sinters (P) Ltd.

II Key Managerial Personnel

1 Mr. S. C. Agarwalla Chairman and Managing Director

2 Mr. Subodh Agarwalla Whole-time Director and Chief Executive Officer

3 Mr. Parasanta Chattopadyay Non-Executive Director

III Relatives of Key Managerial Personnel

1 Mr. Sudhanshu Agarwalla

IV Enterprises over which Key Managerial Personnel are able to exercise significant influence

1 Maithan Smelters Pvt. Ltd.

2 BMA Foundation

* Post employment benefits and long term employee benefits are determined on the basis of actuarial valuation for the company as a whole and hence segregation is not available.

(20) First time adoption of Ind AS

These are the Company’s first financial statements prepared in accordance with Ind AS.

The Company has adopted Indian Accounting Standards (Ind AS) notified by the Ministry of Corporate Affairs with effect from 1 April 2017, with transition date of 1 April 2016. Ind AS 101-First-time Adoption of Indian Accounting Standards requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements which is for the year ended 31 March 2018 for the company, be applied retrospectively and consistently for all financial years presented. Consequently, in preparing these Ind AS financial statements, the Company has availed certain exemptions and complied with the mandatory exceptions provided in Ind AS 101, as explained below. The resulting difference in the carrying values of the assets and liabilities as at the transition date between the Ind AS and Previous GAAP have been recognised directly in equity (retained earnings or another appropriate category of equity).

Set out below are the Ind AS 101 optional exemptions availed as applicable and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A. Optional Exemptions Availed

a) Deemed cost- Property, plant and equipment and intangible assets

The Company has opted for paragraph D7 AA and accordingly considered the carrying value of property, plant and equipments and intangible assets as recognised in the financial statements as deemed cost as at the date of transition to Ind AS.

b) Leases

Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101 provides an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind AS, except where the effect is expected to be not material.

When a lease includes both land and building elements, a first time adopter may assess the classification of each element as finance or an operation lease at the date of transition to Ind AS on the basis of the fact and circumstances existing as at that date.

c) Long - term foreign currency monetary items

Ind AS 101 allows a first time adopter to continue the policy adopted for accounting for exchange differences arising from translation of long-term foreign currency monetary items recognised in the financial statements for the period ending immediately before beginning of the first Ind AS financial reporting period as per the previous GAAP.

d) Investments in subsidiaries

In financial statements, a first-time adopter that subsequently measures an investment in a subsidiary at cost, may measure such investment at cost (determined in accordance with Ind AS 27) or deemed cost (fair value or previous GAAP carrying amount) in its opening Ind AS Balance Sheet. Selection of fair value or previous GAAP carrying amount for determining deemed cost can be done for each subsidiary. Accordingly, the Company has elected to measure all of its investment in subsidiary at their previous GAAP carrying value.

e) Designation of previously recognised financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at FVOCI on the basis of the facts and circumstances at the date of transition to Ind AS. The Company has elected to apply this exemption for its quoted equity investment.

B. Applicable Mandatory Exceptions

(a) Estimates

An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies).

(b) Classification of financial assets

As required under Ind AS 101 the company has assessed the classification of financial assets on the basis of the facts that exist at the date of transition to Ind AS.

(c) De-recognition of financial assets and liabilities

Ind AS 109 requires an entity to derecognize a financial asset when, and only when the contractual rights to the cash flows from the financial asset expires, or it transfers the financial asset as and when the transfer qualifies for derecognition. Para B2 of Ind AS 101 states that except as permitted, a first time adopter shall apply the derecognition requirements in Ind AS 109 prospectively for transactions occurring on or after the date of transition.

Notes to Ind AS Adjustments:

1 Excise duty

Under Indian GAAP, sale of goods was presented as net of excise duty. However,under Ind AS, sale of goods includes excise duty. Excise duty on sale of goods is presented separately on the face of the Statement of Profit and Loss. Thus sale of goods under Ind AS has increased by RS.6,172.98 lakh for FY 2016-17 and simultaneously increase in expenses.

2 Finance lease

The Company has considered fair value of leasehold land and land development in accordance with stipulations of Ind AS 101 with the resultant impact being accounted for in the reserves.

3 Government grant

According to Ind AS 20, “Government Grant”, grant received for purchase of property, plant and equipment is to be recognised as deferred income under non current liabilities and to be credited to Statement of Profit and Loss over the remaining expected life of the related asset. The Company had received RS.103.55 lakh as government grant during FY 2016-17 and the same was added to property, plant and equipment and credited to deferred government grant.

4 Fair valuation of investments

As required under Ind AS 32, investments are measured at fair value. Equity investments have been designated as fair value through OCI Accordingly, the fair value changes with respect to such investments have been recognised in OCI - ‘Equity investments at FVOCI’ and subsequently in other comprehensive income for the year ended 31 March 2017.

Other investments have been measured through profit or loss, fair value change is recognised in profit or loss.

5 Employee benefit obligation

In accordance with Ind AS 19, “Employee Benefits” re-measurement gains and losses on post employment defined benefit plans are recognised in other comprehensive income as compared to profit or loss under the previous GAAP.

6 Deferred tax

The various transitional adjustments lead to different temporary differences, the Company has to account for such differences. Deferred tax adjustments are recognised in relation to the underlying transactions either in retained earnings or a separate component of equity.

7 Cash flow statement

The Ind AS adjustments are either non cash adjustments or are regrouping among the cash flows from operating, investing and financing activities. Consequently, Ind AS adoption has no impact on the net cash flow for the year ended 31 March 2017 as compared with the previous GAAP.

(21) The previous year figures are reclassified where considered necessary to confirm to this year’s classification.


Mar 31, 2017

1. CAPITAL RISK MANAGEMENT

(a) Risk Management

The Company aim to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimize returns to our shareholders.

The capital structure of the Company is based on management’s judgment of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

2. CAPITAL RISK MANAGEMENT (contd...)

The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

3. SEGMENT REPORTING

The Company is primarily in the business of manufacturing of ''Ferro Alloys’. The other activity of the company is Wind Power and the revenue from same is not material. Accordingly, there are no reportable business segments as per Accounting Standard AS-17, "Segment Reporting" . The geographical segment is not relevant as exports to individual destinations does not cross 10% of the total turnover.

4. RELATED PARTY DISCLOSURES

a) List of related parties with whom transactions have taken place and nature of relationship Subsidiary Companies

1. AXL Exploration (P) Ltd.

2. Anjaney Minerals Ltd.

Key Managerial Personnel

1. Mr. B. K. Agarwalla (ceased to be Director w.e.f 4th January, 2017)

2. Mr. S. C. Agarwalla

3. Mr. Subodh Agarwalla

4. Mr. A. Agarwalla (ceased to be Director w.e.f 30th September, 2016)

5. RELATED PARTY DISCLOSURES (contd...)

Relatives of Key Managerial Personnel

Mr. Sudhanshu Agarwalla

Enterprises over which Key Managerial Personnel are able to exercise significant influence.

1. Anjaney Ferro Alloys Ltd. #

2. Maithan Smelters Pvt. Ltd.

3. Maithan Ceramic Ltd. #

4. Maithan Steel & Power Ltd. #

# As on 31st March, 2017, the KMP does not exercise any influence on these enterprises, hence rendering them unrelated to the Company.

6. EVENT OCCURING AFTER BALANCE SHEET DATE

The Board of Directors has recommended Equity dividend of '' 2.50 per share (Previous year-Nil) for the financial year 201617 (Refer Note-36).

7. The previous year figures are reclassified where considered necessary to confirm to this year’s classification.


Mar 31, 2016

1. NOTE ON AMALGAMATION

2. Pursuant to the Scheme of Amalgamation (''the Scheme'') of Anjaney Alloys Limited (wholly owned subsidiary) with the Company under Sections 391 and 394 of the Companies Act, 1956 sanctioned by The Hon''ble Calcutta High Court on 31st March, 2016, entire business and all assets and liabilities of Anjaney Alloys Limited were transferred and got vested in the Company effective from 1st April, 2015. Accordingly, the Scheme has been given effect to in these financial statements. Anjaney Alloys Limited was engaged in manufacturing and sale of ferro alloys.

3. The amalgamation has been accounted for under the "Pooling of Interest" method as prescribed by the Accounting Standard 14 "Accounting for Amalgamations" notified under the Companies (Accounting Standards) Rules, 2006 (as amended). Accordingly, the accounting treatment has been given as under:-

a) The assets and liabilities as at 1st April, 2015 were incorporated in the financial statement of the Company at its book value.

b) Debit balance in the Statement of Profit and Loss of Anjaney Alloys Limited as at 1st April, 2015 amounting to Rs.1,109.57 Lakh was adjusted in "Surplus in Statement of Profit and Loss"

c) 45,125,000 Equity Shares of Rs.10/- each fully paid in Anjaney Alloys Limited, held as investment by the Company stands cancelled and

4. The previous year figures are reclassified where considered necessary to confirm to this year''s classification.


Mar 31, 2015

1. GENERAL INFORMATION

Maithan Alloys Ltd is manufacturer and exporter of all three bulk Ferro alloys- Ferro Silicon, Ferro Manganese and Silico Manganese. It is also engaged in the generation and supply of wind power. The Company is a public limited company and is listed on Calcutta Stock Exchange (CSE) and the National Stock Exchange (NSE). Its shares are traded on Bombay Stock Exchange (BSE) under Permitted Category.

2. Rights, preferences and restrictions attached to equity share:

The Company has only one class of equity shares having a face value of Rs. 10/- per share with one vote per equity share. The company declares and pays dividend in INR. The dividend proposed by the Board of Directors is subject to the approval of the share holders in the ensuing Annual General Meeting.

The amount of dividend proposed to be distributed for the year ended 31st March, 2015, to equity shareholders is Rs. 2/- per share (PY- Rs. 2/- per share).

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after settling of all outside liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

3. Dues to Micro and Small Enterprises

There are no dues to Micro and Small Enterprises 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.

All Amounts in Rs. in Lac unless otherwise stated

Year ended 31st Year ended 31st March 2015 March 2014 4. A.Contingent Liabilities:

a) Claims against the Company/ disputed liabilities not acknowledged as debts:

In respect of disputed Excise Duty & Service Tax demand 471.15 472.64

b) Letters of Credit issued by banks and outstanding 2,583.92 2,419.13

c) Bank Guarantees issued by banks and outstanding 1,872.45 984.13

d) Guarantee provided to banks in respect of term loan and 16,024.14 18,270.91 ECB extended by them to a subsidiary company.

e) Liability in respect of bills discounted with banks 792.56 33.18

B. Commitments:

a) Estimated amount of contracts remaining to be executed 30.33 49.58 on capital account

5. SEGMENT REPORTING

The Company has identified two reportable segments viz, Ferro Alloys and Wind Mill. Segments have been identified and reported taking into account nature of products, 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 the following additional policy 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 "Unallocable".

6. RELATED PARTY DISCLOSURES

a) List of related parties with whom transactions have taken place and nature of relationship Subsidiary Companies

1. AXL Exploration (P) Ltd.

2. Anjaney Alloys Ltd.

3. Anjaney Minerals Ltd.

Key Managerial Personnel

1. Sri B K Agarwalla

2. Sri S C Agarwalla

3. Sri Subodh Agarwalla

Relatives of Key Managerial Personnel

1. Sri Sudhanshu Agarwalla

2. Sri A Agarwalla

Enterprises over which Key Managerial Personnel are able to exercise significant influence

1. Anjaney Ferro Alloys Ltd.

2. Maithan Smelters Ltd.

3. Maithan Ceramic Ltd.

4. Maithan Ispat Ltd.

5. Maithan Steel & Power Ltd.

7. The previous year figures are reclassified where considered necessary to confirm to this year's classification.


Mar 31, 2013

NOTE 1

GENERAL INFORMATION

Maithan Alloys is manufacturer and exporter of all three bulk ferro alloys- ferro Sillicon, ferro manganese and silico manganese. It is also engaged in the generation and supply of wind power.

NOTE 2

BASIS OF PREPERATION

a. Accounting Convention:

The financial statements have been prepared under historical cost convention, on accrual basis and in accordance with generally accepted accounting principles in India. The accounting policies are consistently followed by the Company. The financial statements have been prepared to comply in all material respects, with the accounting standards notified under Section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended] and the relevant provisions of the Companies Act, 1956.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Schedule VI to the Companies Act, 1956.

Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - non- current classification of assets and liabilities.

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

b. Use of Estimates:

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known /materialized.

3.01 48,51,925 (PY. - 48,51,925) Shares out of the Issued, Subscribed & Paid up capital were allotted as Bonus Shares in the last five years by capitalisation of Share Premium, Capital Redemption Reserve and General Reserves.

3.02 Rights attached to Equity Shares: The Company has only one class of equity shares having a face value of Rs. 10/- per share with one vote per equity share. The company declares and pays dividend in INR. The dividend proposed by the Board of Directors is subject to the approval of the share holders in the ensuing Annual General Meeting.

The amount of dividend proposed to be distributed for the year ended March 31, 2013, to equity sharholders is Rs. 2/- per share (PY- Rs. 2/- per share).

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after settling of all outside liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

4.01 Working Capital Loans from Banks are secured by first charge and hypothecation of Stocks of finished goods, work in process, raw materials, stores and consumables, receivables, bills etc. These are further secured by first charge on moveable and immoveable fixed assets both present and future of the Company.

4.02 Working Capital Loans are further secured by personal guarantees of two directors.

NOTE 5

DUES TO MICRO AND SMALL ENTERPRISES

There are no dues to Micro and Small Enterprises as at 31st March, 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.

NOTE 6

RELATED PARTY DISCLOSURES

a) List of related parties with whom transactions have taken place and nature of relationship Subsidiary Companies

1. AXL Exploration (P) Ltd.

2. Anjaney Alloys Ltd.

3. Anjaney Minerals Ltd.

Key Managerial Personnel

1. Mr. Basant Kumar Agarwalla

2. Mr. Subhas Chandra Agarwalla

3. Mr. Subodh Agarwalla

4. Mr. Aditya Agarwalla

Relatives of Key Managerial Personnel 1. Mr. Sudhanshu Agarwalla

Enterprises over which Key Managerial Personnel are able to exercise significant influence

1. Anjaney Ferro Alloys Ltd.

2. Maithan Smelters Ltd.

3. Meghalaya Carbide & Chemicals (P) Ltd.

4. Maithan Ceramic Ltd.

5. Maithan Ispat Ltd.


Mar 31, 2012

1. General Information

Maithan Alloys Limited is engaged in the business of manufacturing and trading of Ferro Alloys and generation and supply of Wind Power.

NOTE 2. DUES TO MICRO AND SMALL ENTERPRISES

There are no dues to Micro and Small Enterprises as at 31st March, 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 with the Company.

NOTE 3. RELATED PARTY DISCLOSURES

a) List of related parties with whom transactions have taken place and nature of relationship Subsidiary Companies

1. AXL Exploration (P) Ltd.

2. Anjaney Alloys Ltd.

3. Anjaney Minerals Ltd.

Key Management Personnel

1. Mr. Basant Kumar Agarwalla

2. Mr. Subhas Chandra Agarwalla

3. Mr. Subodh Agarwalla

4. Mr. Aditya Agarwalla

Relatives of Key Managerial Personnel

1. Mr. Sudhanshu Agarwalla

Enterprises over which Key Managerial Personnel are able to exercise significant influence

1. Anjaney Ferro Alloys Ltd.

2. Maithan Smelters Ltd.

3. Meghalaya Carbide & Chemicals (P) Ltd.

4. Maithan Ceramic Ltd.


Mar 31, 2011

1) A) Information required by Para 3, 4C and 4D of part (II) of Schedule VI to the Companies Act, 1956 :

Note :

i) Quantitative details of slag (waste) is not given as the value of the same is not significant.

ii) Excise Refund of Rs.51,308 thousand ( Previous year Rs.49,335 thousand) is included in the value of Sales.

E) CIF Value of Imports : Rs.1,859,298 thousand (Previous year Rs.927,788 thousand)

F) FOB Value of Exports : Rs.2,414,854 thousand (Previous year Rs.1,730,442 thousand)

2) Claims against the Company not acknowledged as debts in respect of disputed excise duty & service tax demand- Gross Rs.30,288 thousand (Net of Tax Rs. 20,227 thousand) (Previous Year- Gross Rs.23,078 thousand Net of Taxes- Rs.15,234 thousand)

3) Contingent Liabilities not provided for in respect of :

a) Bills Receivable discounted with Bank Inland Bills Rs.50,785 thousand (Previous year Rs.91,472 thousand) Foreign Bills Rs.13,924 thousand (Previous year Rs. NIL)

b) Letters of Credit issued by Bank and outstanding - Inland LC Rs.73,277 thousand (Previous year Rs 49.230 thousand) Foreign LC Rs.133,802 thousand (Previous year Rs.104,382 thousand)

c) Bank Guarantees issued by Bank and outstanding Rs.37,386 thousand (Previous Year Rs.17,277 thousand)

d) Guarantee provided to Banks in respect of Term Loans and ECB extended by them to a Subsidiary Company Rs.1253000 thousand (Previous Year Rs.Nil)

e) Electricity Bills of Damodar Valley Corporation(DVC) from May, 2010 were raised on provisional basis as DVC does not accept the tariff fixed by Central Electricity Regulatory Commission (CERC). The same is the subject matter of challenge before the Hon'ble Supreme Court. A liability may arise on account of this upon final decision by Hon'ble Supreme Court.

4) Disclosure in respect of Derivative Instruments:

b) All the derivative instruments have been acquired for hedging purposes.

5) Expenditure exceeding 1% of revenue included in Miscellaneous Expenses : Nil

6) There are no dues to Micro and Small Enterprises as at 31st March 2011. 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.

7) Profit/Loss on sale of raw materials, if any, stand adjusted in respective consumption account.

8) Segment Reporting

Other Information

Note Segments have been identified in line with the Accounting Standard on Segment Reporting (AS-17) taking into account the organisation structure as well as the differential risks and returns of these segments.

11) As per As-15 “Employee Benefits”, the disclosures of Employee Benefits as defined in the Accounting Standard are given below:

Defined Contribution Plan

The Company provides Provident Fund benefit to all employees.Under the scheme fixed contributions are paid to the regional Provident fund authorities.The Company has no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay employee benefit. The Company has made the following contributions which are recognised as expense in the profit and loss account for year in which the services are rendered by employees.

Defined Benefit Plan

IX. Actuarial assumption 2010-11 2009-10

Mortality Table (LICI) 1994-1996 1994-1996

Superannuation age 58 58

Early Retirement & Disablement 10 PER THOUSAND 10 PER THOUSAND P.A P.A

6 above age 45 6 above age 45

3 between 29 3 between 29 and and 45 45

1 below age 29 1 below age 29

Discount rate 8.00% 8.00%

Rate of escalation in inflation(per annum) 5.00% 5.00%

Return on Assets - -

Remaining Working Life 21 21

Formula used Projected Unit Projected Unit Credit Method Credit Method

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation,promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

9 i) Related Partys’ Disclosure: Related Parties :

A. Subsidiary Companies : 1. AXL Exploration (P) Ltd. 2. Anjaney Minerals Ltd. 3. Anjaney Alloys Ltd. B. Associate Companies : 1. Anjaney Ferro Alloys Ltd. 2. Maithan Smelters Ltd. 3. Maithan Ceramic Ltd. 4. Maithan Ispat Ltd. : 5. Meghalaya Carbide & Chemicals (P) Ltd. C. Key Management : 1. Shri Basant Kumar Agarwalla Personnel 2. Shri Subhas Chandra Agarwalla 3. Shri Subodh Agarwalla

4. Shri Aditya Agarwalla

D. Relatives of Key Management Personnel : 1. Shri Sudhanshu Agarwalla

10 Previous year figures have been regrouped and rearranged wherever found necessary.


Mar 31, 2010

1) Claims against the Company not acknowledged as debts in respect of disputed excise duty & service tax demand- Gross Rs.23,078 thousand (Net of Tax Rs.15,234 thousand) (Previous Year- Gross Rs.3,871 thousand, Net of Taxes- Rs.2,555 thousand)

2) Contingent Liabilities not provided for in respect of :

a) Bills Receivable discounted with Bank

Inland Bills Rs.91,472 thousand (Previous year Rs.59,026 thousand) Foreign Bills Rs.Nil (Previous year Rs. NIL)

b) Letters of Credit issued by Bank and outstanding:

Inland LC Rs.49,230 thousand (Previous year Rs. 100,370 thousand) Foreign LC Rs. 104,382 thousand (Previous year Rs.753,323 thousand)

c) Bank Guarantees issued by Bank and outstanding: Rs.17,277 thousand (Previous Year Rs.23,776 thousand)

3) Expenditure exceeding 1% of revenue included in Miscellaneous Expenses: Nil

4) There are no dues to Micro and Small Enterprises as at 31 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.

5) Profit/Loss on sale of raw materials, if any, stand adjusted in respective consumption account.

6) As per As-15 "Employee Benefits", the disclosures of Employee Benefits as defined in the Accounting Standard are given below:

Defined Contribution Plan

The Company provides Provident Fund benefit to all employees.Under the scheme fixed contributions are paid to the regional Provident fund authorities. The Company has no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay employee benefit. The Company has made the following contributions which are recognised as expense in the profit and loss account for vear in which the services are rendered bv employees. Rs, (in 000)

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation,promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

7 i) Related Partys Disclosure:

Related Parties :

A. Controlling Companies : Nil

B. Subsidiary Companies : 1 AXL Exploration (p) Ltd.

2 Anjaney Minerals Ltd. 3 Anjaney Alloys Ltd.

C. Associate Companies : 1. Anjaney Ferro Alloys Ltd. 2. Maithan Ceramic Ltd. 3. Maithan Ceramic td. 4. Maithan lspat Ltd.

D. Fellow Companies : 1. Meghalaya Carbide & Chemicals (p) Ltd. E. Key Management Personnel : 1. Shri Basant Kumar Agrwalla 2. Shri Subhas Chandra Agralla 3. Shri Subodh Agarwalla 4. Shri Aditya Agarwlla

F. Relatives of Key Management : 1. Shri Sudhanstu Agarwalla Personnel 2. Shri Kaushal Agarwalla

8. Investment (including Share application Money) given/ (refunded) in Subsidiaries

Detail of investment (including Share application Money) given/ (refunded) in Subsidiaries which are material.

9 10% Cumulative Non-Convertible Redeemable Preference Shares have been redeemed as per the terms on 15 July 2008 at 50% Premium.

10 Previous year figures have been regrouped and rearranged wherever found necessary.


Mar 31, 2009

A) Nature of Operation

Company is engaged in the business of manufacturing and trading of Ferro Alloys and generation and supply of Wind Power.

1) Claims against the Company not acknowledged as debts in respect of disputed excise duty & service tax demand- Gross Rs. 38.71 lacs (Net of Tax Rs. 25.55 lacs) (Previous Year- Gross Rs.62.44 lacs, Net of Taxes- Rs. 41.22 lacs)

2) Contingent Liabilities not provided for in respect of:

a) Bills Receivable discounted with Bank -

Inland Bills Rs. 590.26 lacs {Previous year Rs 1276.38 Lacs) Foreign Bills Rs. Nil (Previous year Rs. 138.12 lacs)

b) Bank guarantee issued by Bank outstanding - Rs. 237.76 Lacs (Previous year Rs.215.33 Lacs)

c) Letters of Credit issued by Bank and outstanding -

Inland Bills Rs. 1003.70 lacs (Previous year Rs 2103.89 Lacs) Foreign Bills Rs. 7533.23 lacs (Previous year Rs.3941.33 lacs)

d) Estimated amount of Contracts remaining to be executed for Capital Expenditure and not provided for amounted to Rs. 13.64 lacs net of Advances (Previous Year Rs.642.11 lacs)

3) Expenditure exceeding 1% of revenue included in Miscellaneous Expenses: Nil

4) There are no dues to Micro and Small Enterprises as at 31st March 2009. 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.

5) Profit/Loss on sale of raw materials, if any, stand adjusted in respective consumption account.

6) As per As-15 "Employee Benefits", the disclosures of Employee Benefits as defined in the Accounting Standard are given below:

Defined Contribution Plan

The company provides Provident Fund benefit to all employees.Under the scheme fixed contributions are paid to the regional Provident fund authorities.The company has no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay employee benefit. The company has made the following contributions which are recognised as expense in the profit and loss account for year in which the services are rendered by employees.

i. Effects of changes in the assumed medical Cost N.A as the scheme is unfunded

ii. Valuation record of the last 4 years N.A as the scheme is unfunded

iii. Employers best estimate N.A as the scheme is unfunded 12 i) Related Parties Disclosure :

Related Parties :

A. Controlling Companies Nil

B. Subsidiary Companies : 1.AXL Exploration (P) Ltd. 2. Anjaney Minerals Ltd. 3. Anjaney Alloys Ltd.

C. Associate Companies : 1. Anjaney Ferro Alloys Ltd. 2. Maithan Smelters Ltd.

3. Maithan Ceramic Ltd. 4. Maithan Ispat Ltd.

D. Fellow Companies : 1. Meghalaya Carbide & Chemicals (P) Ltd.

E. Key Management Personnel :

1. Shri Basant Kumar Agarwalla 2. Shri Subhas Chandra Agarwalla 3. Shri Subodh Agarwalla 4. Shri Aditya Agarwalla

F. Relatives of Key Management Personnel:

1. Shri Sudhanshu Agarwalla 2. Shri Kaushal Agarwalla

7) 10% Cumulative Non-Convertible Redeemable Preference Shares have been redeemed as per the terms on 15th July 2008 at 50% Premium.

8) Previous year figures have been regrouped and rearranged wherever found necessary.

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