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Notes to Accounts of Sandur Manganese & Iron Ores Ltd.

Mar 31, 2023

1. The Company''s investment properties consist of two commercial and one residential properties in India. Management determined that the investment properties consist of two classes of assets - commercial and residential - based on the nature, characteristics and risks of each property.

2. For depreciation methods used, the useful lives and the depreciation expense, refer note 1.10 to the standalone financial statements.

3. All of the Company''s investment properties are pledged as collateral against borrowings (Refer note 17 to the standalone financial statements).

Direct comparison approach for underlying land:

The direct comparison approach involves a comparison of the property being valued to similar properties that have actually been sold in arms length transactions or are offered for sale. This approach demonstrates what buyers have historically been willing to pay (and sellers willing to accept) for similar properties in a competitive market and is particularly useful in estimating the value of the land and properties that are typically traded on a unit basis. To ascertain the comparable transactions quotes, valuer would undertake an on ground market research exercise involving interactions with local market players such as real estate brokers, accumulators, etc. The data would be collated with respect to the general transaction activity in the subject regions. Post establishing the prevalent values in the subject micro markets, the value of the subject properties would be ascertained through an adjustment of the comparable collated.

Depreciated replacement cost method for built up structures:

The depreciated replacement cost method involves assessing the current cost of replacing an asset with its modern equivalent asset less deductions for physical deterioration and all relevant forms of obsolescence and optimization. Depreciation refers to adjustments made to the cost of an equivalent asset to reflect any comparative obsolescence (such as physical deterioration, functional or economic obsolescence) that affects the subject asset over the remaining life of the subject asset at the valuation date with its expected total life (economic life of the property). The physical life is how long the asset, ignoring any potential for refurbishment or reconstruction, could be used before the asset would be completely worn out or beyond economic repair The economic life is how long it is anticipated that the asset could generate returns or provide a financial benefit.

5. The Company has restrictions on the realisability/disposal of investment properties due to these being pledged as collateral against borrowings, however there are no restrictions on the remittance of income. There are no contractual obligations to purchase, construct or develop investment properties for repair, maintenance or enhancements.

1. During the year ended 31 March 2023, Sandur Pellets Private Limited, a wholly owned subsidiary, was incorporated on 7 May 2022.

2. During the year ended 31 March 2023, the Company had entered into a Share Subscription and Shareholders Agreement with Renew Green Energy Solutions Private Limited (RGESPL) and Renew Sandur Green Energy Private Limited (RSGEPL) and Power Purchase Agreement with RSGEPL for the purpose of captive consumption of renewable power at its Metal & Ferroalloys Plant. The Company has subscribed to 49% of the paid-up equity share capital in RSGEPL.

1. Mode of valuation of inventories is stated in note 1.12 to the standalone financial statements.

2. All of the Company''s inventories are pledged as collateral against borrowings (Refer note 17 to the standalone financial statements).

3 Write-down/(reversal of write-down of earlier years) of the inventories to net realisable value amounted to '' 393.20 lakh (2021-22''37.10 lakh). These were recognized as an expense/(reversal of expense) during the year and included in the standalone statement of profit and loss.

(iv) Rights, preferences and restrictions attached to equity shares Rights, preferences and restrictions attached to equity shares:

The Company has only one class of equity shares having par value of '' 10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting. In the event of the liquidation, the equity shareholders are eligible to receive the remaining assets of the Company in proportion to their shareholdings after distribution of all preferential amounts.

(v) Aggregate number and class of equity shares allotted as fully paid without payment being received in cash for the period of 5 years immediately preceding the balance sheet date:

The scheme of amalgamation of Star Metallics and Power Private Limited (‘Transferor'') a subsidiary, with the Company was approved by the Bengaluru bench of National Company Law Tribunal (NCLT), vide its order dated 4 March 2020, and on completion of the required formalities the Scheme became effective from 1 April 2019. Pursuant to the approval of the scheme, 251,941 equity shares of '' 10 each were issued to the minority shareholders.

1. Terms of repayment: Borrowing from ICICI Bank Limited & IndusInd Bank Limited is payable over 84 equal instalments starting from 31 March 2021 and from Axis Bank Limited is payable over 73 equal instalment starting from 31 March 2021.

2. Security:

(a) First pari-passu charge on all the immovable assets (limited to properties pledged against the facility), movable assets, project receivables, debt service reserve accounts assets and escrow account.

(b) Second pari-passu charge on all the current assets and receivables.

3. Rate of interest: In the range of 6.50% to 9.00% as at 31 March 2023 (As at 31 March 2022: 6.50% to 7.35%).

4. Working capital facilities (fund based and non-fund based) aggregating to '' 49,600 lakh (As at 31 March 2022 '' 35,100 lakh) are secured by first pari-passu charge on all the current assets and receivables and second pari-passu charge on all the immovable assets (limited to properties pledged against the facility), movable assets, project receivables, debt service reserve accounts assets and escrow account assets.

5. The Company has filed quarterly returns or statements with the banks in lieu of the sanctioned working capital facilities, which are in agreement with the books of account.

6. The Company has not defaulted on any loan payable.

On 10 April 2022, the Board had approved for issuing two new equity shares, at its face value of '' 10/- each, on a rights basis, for every one equity share of the Company held by the eligible shareholders on the record date. Subsequently, in the Board meeting held on 21 July 2022, the Board had wfixed the record date as 27 July 2022 for the purposes of determining the names of eligible shareholders to apply for rights issue. The rights issue has been concluded by issue of 1,80,03,882 equity shares of '' 10/- amounting to '' 1,800.39 lakh. Consequently, pursuant to Ind AS 33, basic and diluted earnings per share for the year presented in the standalone financial statements have been adjusted after giving the impact for the bonus element in respect of the aforesaid rights issue.

(a) The above amounts have been arrived at based on the notice of demand or the assessment orders, as the case may be, and the Company is contesting these claims with the respective authorities. Outflows (if any) arising out of these claims would depend on the outcome of the decisions of the appellate authorities.

b) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its standalone financial statements. The Company does not expect the outcome of these proceedings to have adverse effect on its financial position. The Company does not expect any reimbursements in respect of the above contingent liabilities.

Note No. 35: Employee benefits(a) Defined Contribution Plan

The Company''s contribution to provident fund, superannuation fund and employee state insurance aggregating '' 966.04 lakh (For the year ended 31 March 2022: '' 308.36 lakh) has been recognised in the Standalone Statement of Profit and Loss under the head employee benefits expense.

(b) Defined Benefit Plan

(i) Gratuity (Funded)

The Company operates a gratuity plan covering qualifying employees. The benefit payable is the greater of the amount calculated as per The Payment of Gratuity Act, 1972 and the Company''s scheme applicable to the employee. The Company makes annual contributions to an Insurance managed fund to fund its gratuity liability. The activity of the Company is administered by SMIORE Gratuity Fund Trust. The scheme provides for lump sum payment to vested employees on retirement, death while in employment or on termination of employment as per the Company''s Gratuity Scheme. Vesting occurs upon completion of three years of service.

The plan liabilities are calculated using a discount rate set with references to government bond yields. If plan assets underperform compared to the government bonds discount rate, this will create or increase a deficit. The defined benefit plans hold a significant proportion of debt type assets, which are expected to outperform government bonds in the long-term.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as and when calculating the defined benefit liability recognised in the standalone balance sheet.

The expected rate of return on plan assets is based on the average long term rate of return expected on investments during the estimated term of obligation.

The estimate of future salary increases, considered in actuarial valuation, takes account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

(a) The remuneration of directors and key managerial personnel are determined by the remuneration committee having regard to the performance of individuals and market trends.

(b) The above figures do not include provisions for encashable leave and gratuity as separate actuarial valuation is not available.

Note No. 37: Segment information

The Chief Operating Decision maker of the Company examines the performance of the Company from a product perspective and has identified three reportable segments (a) Mining, (b) Ferroalloys and (c) Coke and Energy. Unallocable represents the income, expenses, assets and liabilities which are related to the Company as a whole and cannot be allocated to a particular segment.

The Company operates in a single geographical territory and accordingly, the reporting for secondary segment is not applicable.

Note No. 38: Financial instruments

The 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 1.19 to the standalone financial statements.

Financial instruments by category and 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 standalone 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. An explanation of each level is as follows:

Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

There are no transfers between levels during the year.

The management considers that the carrying amount of financial assets and financial liabilities recognised in these standalone financial statements at amortised cost approximate their fair values.

(a) The Company has not disclosed the fair value for trade receivables, cash and cash equivalents, other bank balances, other financial assets, loans, borrowings, lease liabilities, trade payables and other financial liabilities because their carrying amounts are the approximation of fair values.

(b) The Investments made in subsidiary and associate amounting to '' 5,091.44 lakh is measured at cost.

Financial risk management

The Board of Directors of the Company have the overall responsibility for the establishment and oversight of the their risk management framework. The Company has constituted a Risk Management Committee. The Company has in place a Risk management framework to identify, evaluate business risks and challenges across the Company. The risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Audit Committee oversees how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by Internal Audit which regularly reviews risk management controls and procedures, the results of which are reported to the Audit Committee. These risks include foreign currency risk, credit risk, liquidity risk and interest rate risk.

Foreign currency risk management

The Company''s functional currency in Indian Rupees (INR). The Company undertakes transactions denominated in foreign currencies due to which it is exposed to exchange rate fluctuations. Volatility in exchange rate of foreign currencies affects the cost of imports, primarily in relation to raw materials. The Company is generally exposed to foreign exchange risk arising through its sales and purchases denominated in foreign currency predominantly in US dollars.

During the current year there are no exports, however the Company has imported ores and coking coal which is subject to foreign exchange risk.

Commodity price risk

The Company doesn''t enter into any long term contract with its suppliers for hedging its commodity price risk.

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Company is exposed to credit risk from its operating activities mainly trade receivables. The Company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. Credit risk is managed by the Company through approved credit norms, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation. Ultimate responsibility for managing the liquidity risk rests with the management, which has established an appropriate liquidity risk management framework for managing the Company''s short-term, medium-term and long-term funding. The Company manages liquidity risk by maintaining adequate reserves, by continuously monitoring forecast and actual short-term and long-term cash flows, and by matching the maturity profiles of financial assets and liabilities. The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted.

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 is exposed to interest rate risk because funds are borrowed at floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate. The borrowings of the Company are principally denominated in rupees at floating rates of interest.

The sensitivity analyses below have been determined based on the exposure to interest rates for floating rate liabilities, assuming the amount of the liability outstanding at the year end was outstanding for the whole year.

If interest rates had been 100 basis points higher/lower and all other variables were held constant, the Company''s profit For the year ended 31 March 2023 would decrease/increase by '' 203.57 lakh (For the year ended 31 March 2022: decrease/increase by '' 308.36 lakh). This is mainly attributable to the Company''s exposure to interest rates on its variable rate borrowings.

Capital management

The Company''s objective for capital management is to maximize shareholder''s wealth, safeguard business continuity and support the growth of the Company. The Company determines the capital management requirement based on annual operating plans and long term and other strategic investment plans. The funding requirement are met through equity, borrowings and operating cash flows required.

Note No. 42: Other Statutory information

(i) The Company has not entered any transactions with Companies struck off under Section 248 of Companies Act, 2013 or Section 560 of Companies, 1956.

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

(iii) The Company has not traded or invested in crypto currency or virtual currency during the financial year.

(iv) The Company does not have any charge or satisfaction which is yet to be registered with Registrars of Companies beyond the statutory period.

(v) The Company has not advanced or loaned or invested fund to any other person(s) or entit(ies), including foreign entites (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 on behalf of the ultimate Beneficiaries.

(vi) The Company has not received any fund from any person(s) or entit(ies), including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

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

b) Provide any guarantee, security or the like on behalf of the ultimate Beneficiaries.

Note No. 43:

The Company has maintained proper books of account as required by law except for keeping backup on daily basis of such books of account maintained in electronic mode, in a server physically located in India.

Note No. 44:

The standalone financial statement of the Company For the year ended 31 March 2022 were audited by erstwhile auditors R Subramanian and Company LLP (Firm Reg no.004137S/ S200041), Chartered Accountants.

Note No. 45: Event occurring after reporting period

Subsequent to the year end, the Company has received the Environment Clearance (EC) from the Ministry of Environment, Forest & Climate Change (MoEFCC) for enhancing Iron Ore production from 1.60 to 4.50 Million Tonnes Per Annum (MTPA).

The Company evaluated all events or transactions that occurred after 31 March 2023 up through 17 May 2023, the date the standalone financial statements were authorized for issue by the Board of Directors. Based on this evaluation, the Company is not aware of any events or transactions that would require recognition or disclosure in the standalone financial statements other than the above.

1 Debt includes current and non current portion of lease liabilities.

2 Earnings for debt service includes net profit after taxes and non-cash operating expenses like depreciation, profit/loss on sale of property, plant and equipment, etc.

3 Debt service includes interest & lease payments.

4 Revenue from operations means gross credit sales after deducting sales return.

5 Total purchases means gross credit purchases after deducting purchase return. Gross credit purchases includes other expenses.

6 Working capital is calculated by deducting current liabilities from current assets.

7 Capital employed is calculated by Net worth total debt deferred tax liability - Intangible asset

Notes:

(a) Repayment of debt has resulted in an improvement in the ratio.

(b) Decrease in profit has resulted in a detoriation in the ratio.

(c) Decrease in revenue and increase in trade receivables has resulted in a decrease in the ratio.

(d) Change in mix of mutual fund portfolio from equity to liquid resulted in a detoriation in the ratio.

(e) Decrease in the trade payable has resulted in an improvement in the ratio.

Note No. 47:

The standalone financial statements of the Company were approved by the Board of Directors and authorised for issue on 17 May 2023.

Note No. 48: Previous year figures

Previous years figures has been regrouped/reclassified wherever necessary to correspond with current year classification/disclosure.


Mar 31, 2018

1. Corporate information and significant accounting policies

The Company is engaged in mining of manganese and iron ores in Deogiri village of Sandur Taluk, Ballari District, Karnataka. The Company is also engaged in the manufacture of ferroalloys at the Metal & Ferroalloy Plant located at Vyasanakere, Hospet. The Company has its Registered Office at ‘Satyalaya’, Door No. 266 (old No.80), Behind Taluk Office, Ward No.1, Palace Road, Sandur 583 119, Ballari District, Karnataka and its Corporate Office at 1A & 2C, Rediffice Signature, No. 6, Hospital Road, Shivajinagar, Bengaluru 560 001.

1. The Company’s investment properties consist of one commercial & one residential properties in India. Management determined that the investment properties consist of two classes of assets - commercial and residential- based on the nature, characteristics and risks of each property.

2. For depreciation methods used and the useful lives refer note 1.9 of financial statements.

3. All of the Company’s investment property are held free hold interest.

4. Fair market value of investment property have been arrived at on the basis of valuations carried out by the Company internally on the basis of market value and the details are as below:

5. The company has no restrictions on the realisability of its investment properties and no contractual obligations to either purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having par value of Rs.10 per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend proposed by Board of Directors is subject to approval of the shareholders in the ensuing annual general meeting. Further, the Board of Directors may also announce an interim dividend which would need to be confirmed by the shareholders at the forthcoming Annual General Meeting. In the event of liquidation, the shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholdings.

Proposed dividends on equity shares are subject to approval in annual general meeting and are not recognised as a liability (including Dividend Distribution Tax thereon) as at 31 March 2018.

Note:

1. The financial obligation towards mine closure plans under relevant Acts and Rules are technically estimated, based on total available ore reserves of all the mining leases. The amount so determined is provided in the books of account on the basis of run of mine ore production of the mines of all the mining leases.

Note No. 2 - Contingent liabilities and commitments (to the extent not provided for)

(i) Contingent liabilities

a) Claims against the Company not acknowledged as debts:

The above amounts have been arrived at based on the notice of demand or the Assessment Orders, as the case may be, and the Company is contesting these claims with the respective authorities. Outflows, if any, arising out of these claims would depend on the outcome of the decisions of the appellate authorities and the Company’s rights for future appeals before the judiciary. No reimbursements are expected.

b) Guarantees given by the Company:

Note No. 3 - Employee benefits

(a) Defined Contribution Plan

The Company’s contribution to Provident Fund and Superannuation Fund aggregating Rs.252.45 lakh (previous year: Rs.227.09 lakh) has been recognised in the Statement of Profit or Loss under the head Employee Benefits Expense.

(b) Defined Benefit Plans:

Gratuity

The Company operates a gratuity plan covering qualifying employees. The benefit payable is the greater of the amount calculated as per the Payment of Gratuity Act, 1972 or the Company scheme applicable to the employee. The Company makes annual contributions to an Insurance managed fund to fund its gratuity liability. The activity of the Company is admintered by SMIORE Gratuity Fund Trust. The scheme provides for lump sum payment to vested employees on retirement, death while in employment or on termination of employment as per the Company’s Gratuity Scheme, vesting occurs upon completion of three years of service.

Through its defined benefit plans the Company is exposed to a number of risks, the most significant of which are detailed below:

Asset volatility

The plan liabilities are calculated using a discount rate set with references to government bond yields; if plan assets under perform compared to the government bonds discount rate, this will create or increase a deficit. The defined benefit plans hold a significant proportion of debt type assets, which are expected to outperform government bonds in the long-term. As the plans mature, the Company intends to reduce the level of investment risk by investing more in assets that better match the liabilities.

Changes in bond yields

A decrease in government bond yields will increase plan liabilities, although this is expected to be partially offset by an increase in the value of the plans’ bond holdings and interest rate hedging instruments.

Inflation risk

Some of the Company’s retirment obligations are linked to inflation, and higher inflation will lead to higher liabilities (although, in most cases, caps on the level of inflationary increases are in place to protect the plan against extreme inflation). The plans hold a significant proportion of assets in index linked gilts, together with other inflation hedging instruments and also assets which are more loosely correlated with inflation. However an increase in inflation will also increase the deficit to some degree.

Life expectancy

The majority of the plan’s obligations are to provide benefits for the life of the member, so increases in life expectancy will result in an increase in the plan’s liabilities. This is particularly significant in the Company’s defined benefit plans, where inflationary increases result in higher sensitivity to changes in life expectancy.

The significant actuarial assumptions used for the purposes of the actuarial valuations were as follows:

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the Balance sheet.

The methods and types of assumptions used in preparing the sensitivity analyses did not change compared to previous period.

The Company expects to contribute Rs.100 lakh to the gratuity trust during the next financial year of 2018.

The Company’s policy is driven by considerations of maximizing returns while ensuring credit quality of the debt instruments. The asset allocation for plan assets is determined based on investment criteria prescribed under the Indian Income Tax Act, 1961, and is also subject to other exposure limitations. The Company evaluates the risks, transaction costs and liquidity for potential investments. To measure plan asset performance, the Company compares actual returns for each asset category with published benchmarks.

The weighted average duration of the defined benefit obligation as at 31 March 2018 is 6.13 years.

The expected rate of return on plan assets is based on the average long term rate of return expected on investments of the fund during the estimated term of obligation.

The estimate of future salary increases, considered in actuarial valuation, takes account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The actuarial valuation has been carried out using projected unit credit method in respect of compensated absences based on assumptions given in respect of gratuity valuation.

*Does not Include the provison made for gratuity and leave encashment as they are determined on an actuarial basis for all the employees together.

The remuneration of directors and key executives is determined by the remuneration committee having regard to the performance of individuals and market trends.

Note No. 4 - Segment information

Effective 1 April 2016, the Chief Operating Decision maker has reviewed its business oversight mechanism and has realigned all its operations under four operating segments (i.e.) (a) Mining (b) Ferroalloys and power (c) Steel (d) Unallocable, based on the assessment of the overall risks and rewards.

Fair value hierarchy

1. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consist of the following three levels:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

Fair value of the financial assets that are measured at fair value on a recurring basis Fair Valuation Techiques and Inputs used

2. The management considers that the carrying amount of financial assets and financial liabilities recognised in these financial statements at amortised cost approximate their fair values.

5a. Financial risk management objectives

The Board of Directors of the Company have the overall responsibility for the establishment and oversight of the their risk management framework. The Company has constituted a Risk Management Committee. The Company has in place a Risk management framework to identify, evaluate business risks and challenges across the Company. The risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Audit Committee oversees how management monitors compliance with the Company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by Internal Audit which regularly reviews risk management controls and procedures, the results of which are reported to the Audit Committee.These risks include credit risk and liquidity risk.

The Company does not have any foreign currency exposures as at 31st March, 2018.

Commodity Price risk

The Company doesn’t enter into any long term contract with its suppliers for hedging its commodity price risk.

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer.The company is exposed to credit risk from its operating activities mainly Trade receivables. The Company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. Credit risk is managed by the Company through approved credit norms, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

Cash and bank balances

The Company held cash and bank balances of Rs.2,268.54 lakh at March 31, 2018 (31 March, 2017: Rs.2,055.03 lakh, 1 April, 2016: Rs.2,175.46 lakh).

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Compnay’s reputation. Ultimate responsibility for liquidity risk management rests with the management, which has established an appropriate liquidity risk management framework for the management of the Company’s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, by continuously monitoring forecast and actual short term and long term cash flows, and by matching the maturity profiles of financial assets and liabilities.The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted:.

Capital Management

The Company’s objective for capital management is to maximize shareholder wealth, safeguard business continuity and support the growth of the Company. The Compnay determines the capital management requirement based on annual operating plans and long term and other strategic investment plans. The funding requirement are met through equity, borrowings and operating cash flows required.

There are no Micro and Small Enterprises, to whom the company owes dues, which are outstanding for more than 45 days at the Balance Sheet date. The above information regarding Micro Enterprises and Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the Auditors.

Note 6 - Expenditure on Corporate Social Responsibility (As per Section 135 of the Companies Act, 2013)

(a) Gross amount required to be spent by the company during the year Rs.68.35 lakh (previous year Rs.53.90 lakh).

(b) Amount spent during the year on:

NOTES:

a) Manganese ore production & sales excludes 11,088 tonnes (previous year: Nil tonnes) salvaged from waste dumps.

b) Iron ore production & sales excludes 19,743 tonnes (previous year: Nil tonnes) salvaged from waste dumps.

c) Previous year figures are in brackets.

Notes:

(a) Under previous GAAP, there was no requirement to present investment property separately and the same was included under property, plant and equipment and measured at cost. Under Ind AS, investment property is required to be presented separately in the balance sheet.

(b) Under previous GAAP, non current Investments were stated at cost. Where applicable, provision was made to recognise a decline, other than temporary, in valuation of such Investments. Under Ind AS, financial assets in equity instruments (other than investments in subsidiary) have been classified as FVTPL.

(c) Under previous GAAP, current investments were stated at lower of cost or fair value. Under Ind AS, these financial assets have been classified as Fair Value through Profit and Loss (”FVTPL”) on the date of transition and fair value changes after the date of transition has been recognised in the statement of profit and loss.

(d) Under previous GAAP, long-term provisions were not discounted, however under Ind AS, the long-term provisions relating to mine closure has been discounted (net of unwinding interest) .

(e) Under previous GAAP, actuarial gains and losses were recognised in the statement of profit and loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the defined benefit liability/asset which is recognised in other comprehensive income. Consequently, the tax effect of the same has also been recognised in the Other Comprehensive Income under Ind AS.

7. The Company has reviewed during the year that the point of transfer of risks and rewards for revenue recognition on sale of manganese and iron ore under e-auction has changed such that point of sale is shifted from that of actual despatch of minerals to the completion of e-auction sales and receipt of money from the buyer. Had the Company used the earlier estimate of point of sale for revenue recognition, its revenue from operations for the year ended 31st March 2018 would have been lower to the extent of Rs.2,023.57 lakh. However, the effect of such change in estimate has not been considered in the comparative reported previous year.

8. The Board of Directors of the Company at their meeting held on 14 February, 2018 have approved the Scheme of Amalgamation (“the draft Scheme”) of Star Metallics & Power Pvt Ltd, (Subsidiary company), with the Company effective from the appointed day of 1 April, 2018. Requisite adjustment will be carried out subsequent to compliances/ approval of appropriate authorities in the books of the Company.

9. There are no material events occurred after the balance sheet date but before the approval of financial statements by the board of directors.

10. In respect of the current year, the directors propose that a dividend of Rs.2 per share be paid on equity shares on 31 March 2018. This equity dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements. The proposed equity dividend is payable to all shareholders on the Register of Members on 30 May 2018. The total estimated equity dividend to be paid is Rs.175 lakh. The payment of this dividend is estimated to result in payment of dividend tax of Rs.35.97 lakh @ 20.553% on the amount of dividends grossed up for the related dividend distribution tax.

11. Carrying value of equity investment in Sandur Laminates Limited and Sandur Micro Circuits Limited as on Ind AS transitional Date (April 1 2016) are at their fair value. Management of the company has decided to sell the equity investment in Sandur Laminates Limited in the near future.

12. The financial statements of The Sandur Manganese & Iron Ores Limited were approved by the Board of Directors and authorised for issue on 30 May 2018.

13. The figures of the previous year have been regrouped/recasted, wherever necessary to conform with the current year classification.


Mar 31, 2017

Note 1 Corporate information

The Company is engaged in mining of manganese and iron ores in Deogiri village of Sandur taluk, Bellary District, Karnataka. The Company is also engaged in manufacture of ferroalloys and generation of power through its subsidiary company (Star Metallics & Power Private Limited) at the Metal & Ferroalloy Plant & Power Plant respectively located at Vyasanakere, Hospet by entering into a facility lease agreement w.e.f. February 1, 2016 .The Company has its Registered Office at Laxmipur, Sandur and its Corporate Office at Bellary Road, Bangalore.

(i) Rights, preferences and restrictions attached to equity shares:

The Company has only one class of equity share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by Board of Directors is subject to approval by the shareholders at the ensuing Annual General Meeting. In the event of liquidation of the Company, the equity shareholders are entitled to receive only residual assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholder.

Note 2 - Contingent Liabilities and commitments (to the extent not provided for)

(i) Contingent Liabilities

a) Claims against the Company not acknowledged as debts:

The above amounts have been arrived at based on the notice of demand or the Assessment Orders, as the case may be, and the Company is contesting these claims with the respective authorities. Outflows, if any, arising out of these claims would depend on the outcome of the decisions of the appellate authorities and the Company’s rights for future appeals before the judiciary. No reimbursements are expected.

The Company has given the said guarantee in respect of fulfilment of the export obligations by the subsidiary company. There are no defaults as at the year end and no liability is expected.

There are no dues to micro and small enterprises which were outstanding beyond the due date or for more than 45 days whichever is earlier. 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. This has been relied upon by the auditors.

Note 3 - Trade payables do not include any amount to be credited to the Investor Education and Protection Fund.

Note 4 - Value of Imports calculated on C.I.F. basis :

Note 5 - Employee benefit plans:

a) Defined contribution plan

The Company makes Provident Fund, Superannuation Fund and Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs.181.16 lakh (year ended 31 March, 2016 - Rs.165.27 lakh) for provident fund contributions to SMIORE Provident Fund Trust and Rs.45.93 lakh (year ended 31 March, 2016 Rs.39.32 lakh) for superannuation fund contributions in the statement of profit and loss as part of contribution to provident and other funds in note 22 and Rs.2.47 lakh (year ended 31 March, 2016 -Rs.0.61 lakh) for employee state insurance scheme contribution included as part of Employee welfare expenses in note 22. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

In case of SMIORE Provident Fund Trust interest rate payable by the Trust to its beneficiaries is as notified by the Government. The Company has an obligation to make good the short fall, between the return from the investments of the trust and the notified interest rate and recognise such shortfall as an expense. Based on management assessment, there is no shortfall in the interest payable by the trust to the beneficiaries as on the balance sheet date.

b) Defined benefit plan - Funded

The Company makes annual contributions to an Insurance managed Fund to fund its gratuity liability. The scheme provides for lump sum payment to vested employees on retirement, death while in employment or on termination of employment as per the Company’s Gratuity Scheme, vesting occurs upon completion of three years of service.

The following table sets out the funded status and amount recognised in the Company’s financial statements for Gratuity.

The actuarial valuation has been carried out using projected unit credit method in respect of compensated absences based on assumptions given in respect of gratuity valuation.

Note : a) The discount rate for defined benefit plan and other long term benefits is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of obligations. The estimate of future salary increases considered for defined benefits plan and other long term benefits takes into account the inflation, seniority, promotion, increments and other relevant factors.

b) The provision towards pension payable to eligible employees is fixed and computed based on actuals and is not funded.

Note 6 - Details of leasing arrangements:

As Lessor

The Company has entered into operating lease arrangements for certain surplus facilities. The lease is non-cancellable for a period of 3 years from January 1, 2014 and is renewable by mutual consents.

The Company has not received any contingent rent with respect to the leasing and thus no contingent rent is recognised as income in the Statement of Profit and loss account for the year ended March 31, 2017.

As Lessee

The Company has entered into operating leases in respect of ferroalloys & power plant, office premises and residential premise. The leasing arrangement is cancellable and is renewable by mutual consents. The lease rentals charged to the statement of profit and loss in respect of these leases amounts to Rs.1,073.30 lakh (2015-16 Rs.180.36 lakh).

Note 7 - Expenditure on corporate social responsibility (as per section 135 of the 2013 Act)

(a) Gross amount required to be spent by the company during the year Rs.53.90 lakh (previous year Rs.77.62 lakh)

(b) Amount spent during the year on: (included under expenditure on corporate social responsibility note 24)

Note 8 - Events occuring after the Balance Sheet Date:

The Board of Directors in their meeting held on May 30, 2017, proposed dividend of Rs.2 per share for the year ended March 31, 2017, which need to be approved by the shareholders. Pursuant to the notification of Companies (Accounting Standards) Amendment Rules, 2016, which is applicable to the Company with effect from April 1, 2016, dividend declared after the balance sheet date but before the finanical statements are approved for issue, is not to be recognised as a liability at the balance sheet date but should be disclosed in the notes to the financial statements. Accordingly, the aforesaid dividend declared after March 31, 2017 but before the issue of these financial statements is not recognised as a liability as on March 31, 2017.

Note 9 - Previous year’s figures have been regrouped/ reclassified wherever necessary to correspond with the current year’s classification/ disclosure.


Mar 31, 2016

ii) Rights, preferences and restrictions attached to equity shares :

The Company has only one class of equity share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by Board of Directors is subject to approval by the shareholders at the ensuing Annual General Meeting. In the event of liquidation of the Company, the equity shareholders are entitled to receive only residual assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholder.

(iii) Details of shares held by the holding company:

Note 1 - Employee benefit plans:

a) Defined contribution plan

The Company makes Provident Fund, Superannuation Fund and Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs. 165.27 lakh (previous year -Rs. 134.39 lakh) for provident fund contributions to SMIORE Provident Fund Trust and Rs. 39.32 lakh (previous year Rs. 34.89 lakh) for superannuation fund contributions in the statement of profit and loss as part of contribution to provident and other funds in note 22 and Rs. 0.61 lakh (previous year - Rs. 0.74 lakh) for employee state insurance scheme contribution included as part of Employee welfare expenses in note 22. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

In case of SMIORE Provident Fund Trust interest rate payable by the Trust to its beneficiaries is as notified by the Government. The Company has an obligation to make good the short fall, between the return from the investments of the trust and the notified interest rate and recognise such shortfall as an expense. Based on management assessment, there is no shortfall in the interest payable by the trust to the beneficiaries as on the balance sheet date.

b) Defined benefit plan - Funded

The Company makes annual contributions to an Insurance managed Fund to fund its gratuity liability. The scheme provides for lump sum payment to vested employees on retirement, death while in employment or on termination of employment as per the Company’s Gratuity Scheme, vesting occurs upon completion of three years of service.

The following table sets out the funded status and amount recognized in the Company’s financial statements for Gratuity.

Note 2 - Expenditure on corporate social responsibility (as per section 135 of the 2013 Act)

(a) Gross amount required to be spent by the Company during the year Rs. 77.62 lakh (previous year Rs. 80.69 lakh).

(b) Amount spent during the year on: (included under expenditure on corporate social responsibility note 24)

Note 3 - During the previous year, pursuant to the notification of Schedule II to the 2013 Act with effect from April 1, 2014, the Company had revised the estimated useful life of its assets to align the useful life with those specified in Schedule

II. Pursuant to the transition provisions prescribed in Schedule II to the 2013 Act, the Company had fully depreciated the carrying value of assets, net of residual value, where the remaining useful life of the asset was determined to be nil as on April 1, 2014 and had adjusted an amount of Rs. 23.12 lakh (net of deferred tax of Rs. 11.91 lakh) against the opening surplus balance in the statement of profit and loss.

Note 4 - Previous year’s figures have been regrouped/ reclassified wherever necessary to correspond with the current year’s classification/ disclosure.


Mar 31, 2015

1.Contingent Liabilities and commitments (to the extent not provided for)

(i) Contingent Liabilities

a) Claims against the Company not acknowledged as debts:

Rs. lakh

Particulars As at 31.03.2015

Income tax (relating to disallowance of deduction) 1,322.71

Service tax (relating to applicability of tax) 293.35

Customs duty (relating to applicability of tax) -

Others (relating to provident fund and other matters) 22.85

Particulars As at 31.03.2014

Income tax (relating to disallowance of deduction) 924.10

Service tax (relating to applicability of tax) 293.35

Customs duty (relating to applicability of tax) 232.06

Others (relating to provident fund and other matters) 4.29

The above amounts have been arrived at based on the notice of demand or the Assessment Orders, as the case may be, and the Company is contesting these claims with the respective authorities. Outflows, if any, arising out of these claims would depend on the outcome of the decisions of the appellate authorities and the Company's rights for future appeals before the judiciary. No reimbursements are expected.

The Company has given the said guarantee in respect of fulfilment of the export obligations by the subsidiary company. There are no defaults as at the year end and no liability is expected.

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

There are no micro and small enterprises to whom the Company owes dues which are outstanding as at the balance sheet date. The information regarding Micro Enterprises and Small Enterprises have been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

3. As per the draft rehabilitation scheme of Sandur Laminates Limited and Sandur Micro Circuits Limited, the Company has given an undertaking not to dispose of its share holdings in Sandur Laminates Limited and Sandur Micro Circuits Limited without prior approval of Board for Industrial and Financial reconstruction (BIFR).

4. Trade payables do not include any amount to be credited to the Investor Education and Protection Fund.

5. Employee benefit plans: a) Defined contribution plan

The Company makes Provident Fund, Superannuation Fund and Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs.134.39 lakh (year ended 31 March 2014 - Rs.120.40 lakh) for provident fund contributions to SMIORE Provident Fund Trust and Rs.34.89 lakh (year ended 31 March 2014 Rs.30.14 lakh) for superannuation fund contributions in the statement of profit and loss as part of contribution to provident and other funds in note 22 and Rs.0.74 lakh (year ended 31 March 2014 -Rs.0.68 lakh) for employee state insurance scheme contribution included as part of Employee welfare expenses in note 22. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

In case of SMIORE Provident Fund Trust interest rate payable by the Trust to its beneficiaries is as notified by the Government. The Company has an obligation to make good the short fall, between the return from the investments of the trust and the notified interest rate and recognise such shortfall as an expense. Based on management assessment, there is no shortfall in the interest payable by the trust to the beneficiaries as on the balance sheet date.

b) Defined benefit plan - Funded

The Company makes annual contributions to an Insurance Managed fund to fund its gratuity liability. The scheme provides for lump sum payment to vested employees on retirement, death while in employment or on termination of employment as per the Company's Gratuity Scheme, vesting occurs upon completion of three years of service.

The following table sets out the funded status and amount recognised in the Company's financial statements for Gratuity.

Name of related parties and description of relationship

1 Holding Company None

2 Subsidiary Star Metallics and Power Private Limited

3 Enterprise having significant influence over the Company Skand Private Limited

4 Key Management Personnel (KMP) i) S.Y Ghorpade, Chairman & Managing Director

ii) Nazim Sheikh, Joint Managing Director

iii) S.H. Mohan, Executive Director (Project)

iv) S.R. Sridhar, Executive Director (Mines)

v) U.R. Acharya, Director (Commercial)

vi) K. Raman, Director (Finance)

5 Relative of KMP Aditya Shivrao Ghorpade

Dhananjai Shivrao Ghorpade

Mubeen A Sherif

As Lessor

The Company has entered into operating lease arrangements for certain surplus facilities. The lease is non-cancellable for a period of 3 years and is renewable by mutual consent.

As Lessee

The Company has entered into operating leases in respect of office premises and residential premise. The leasing arrangements are cancellable and are renewable by mutual consent. The lease rentals charged to the statement of profit and loss in respect of these leases amounts to Rs. 17.62 lakh (2013-14 : Rs. 21.79 lakh)

(a) Gross amount required to be spent by the company during the year Rs. 80.69 lakh.

(b) Amount spent during the year on : (included under expenditure on corporate social responsibility note 24)

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


Mar 31, 2014

Note 1 - Contingent Liabilities and commitments (to the extent not provided for) (i) Contingent Liabilities

a) Claims against the Company not acknowledged as debts: As at As at Particulars 31.03.2014 31.03.2013 (Rs lakh) (Rs lakh)

Stamp duty on net present value includes maximum - 5,454.00 penalty of H4,545.00 lakh (relating to applicability of duty)

Income tax (relating to disallowance 924.10 924.10 of deduction)

Service tax (relating to applicability of tax) 316.64 316.64

Customs duty (relating to applicability of tax) 232.06 -

Others (relating to applicability of forest 4.29 2,144.60 lease rental and other matters)

The above amounts have been arrived at based on the notice of demand or the Assessment Orders, as the case may be, and the Company is contesting these claims with the respective authorities. Outflows, if any, arising out of these claims would depend on the outcome of the decisions of the appellate authorities and the Company''s rights for future appeals before the judiciary. No reimbursements are expected.

Note 2 - Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

There are no micro and small enterprises to whom the Company owes dues which are outstanding as at the balance sheet date. The information regarding Micro Enterprises and Small Enterprises have been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

Note 3 - Disclosures as per Clause 32 of the Listing Agreements with the Stock Exchanges Loans and advances in the nature of Loans given to subsidiary :

Note 4

As per the draft rehabilitation scheme of Sandur Laminates Limited and Sandur Micro Circuits Limited, the Company has given an undertaking not to dispose of its share holdings in Sandur laminates Limited and Sandur Micro Circuits Limited without prior approval of Board for Industrial and Financial reconstruction (BIFR).

Note 5

Trade payables do not include any amount to be credited to the Investor Education and Protection Fund.

Note 6 - Employee benefit plans:

a) Defined contribution plan

The Company makes Provident Fund, Superannuation Fund and Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. For the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised H120.40 lakh (2012-13 - H116.09 lakh) for provident fund contributions and H30.14 lakh (2012-13 H29.06 lakh) for superannuation fund contributions in the statement of profit and loss as part of contribution to provident and other funds in note 21 and H0.68 lakh (2012-13 - H0.67 lakh) for employee state insurance scheme contribution included as part of employee welfare expenses in note 21). The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

In case of SMIORE Provident Fund Trust interest rate payable by the Trust to its beneficiaries is as notified by the Government. The Company has an obligation to make good the short fall, between the return from the investments of trust and the notified interest rate and recognise such shortfall as an expense. Based on the actuarial valuation, there is no shortfall in the interest payable by the trust to the beneficiaries as on the balance sheet date.

b) Defined benefit plan - Funded

The Company makes annual contributions to an Insurance managed Fund. The scheme provides for lump sum payment to vested employees on retirement, death while in employment or on termination of employment as per the Company''s Gratuity Scheme, vesting occurs upon completion of three years of service.

The discount rate for defined benefit plan and other long term benefits is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of obligations. The estimate of future salary increases considered for defined benefits plan and other long term benefits takes into account the inflation, seniority, promotion, increments and other relevant factors.

Note 7 - Related party disclosures

Name of related parties and description of relationship

1 Holding Company None

2 Subsidiary Star Metallics and Power Private Ltd

3 Key Management Personnel (KMP) i) S. Y. Ghorpade, Chairman & Managing Director

ii) Nazim Sheikh, Joint Managing Director iii) S.H. Mohan, Executive Director (Projects) iv) S.R.Sridhar, Executive Director (Mines) v) U.R. Acharya, Director (Commercial) vi) K. Raman, Director (Finance)

4 Relative of KMP Aditya Shivrao Ghorpade Dhananjai Shivrao Ghorpade Mubeen Ahmed Sheriff (w.e.f 1 June 2013)

Note 1 : Primary business segments have been identified on the basis of distinguishable businesses in which the Company is engaged. Note 2 : Inter segment transfer from the mining segment is measured at cost.

b) The Company operates in a single geographical segment and accordingly, secondary segments for geographical segment, as envisaged in Accounting Standard - 17 on Segment Reporting are not applicable.

Note 8 - Operating lease disclosure:

The Company has entered into operating leases in respect of office premises and residential premise. The leasing arrangement is cancellable and is renewable by mutual consents. The lease rentals charged to the statement of profit and loss in respect of these leases amounts to H21.79 lakh (2012-13 H16.71 lakh)

NOTES:

a) Iron ore production excludes 405,856 tonnes (previous year: Nil tonnes) salvaged from waste dumps.

b) Silico Manganese production includes Nil tonnes (previous year 52 tonnes) salvaged from bunker.

c) Previous year figures are in brackets.

Note 9

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

1 Name of Subsidiary Star Metallics and Power Private Ltd

2 Financial Year of the subsidiary ended on: 31 March 2014

3 Share of the subsidiary held on the above date:

a) Number of shares and face value 75,240,000 equity shares of Rs10/-each (fully paid up)

b) Extent of Holding 81.24%

4 Net aggregate amount of profit of the Subsidiary so far as they concern the members of The Sandur Manganese & Iron Ores Limited

a) Dealt with in the accounts of The Sandur Nil Manganese & Iron Ores Limited for the year ended 31 March 2014

b) Not dealt with in the accounts of The Sandur Loss of Rs-1958.73 Manganese & Iron Ores Limited for the year ended lakh 31 March 2014

5 Net aggregate amount of profit for previous financial years of the Subsidiary since it became a subsidiary so far as they concern the members of The Sandur Manganese & Iron Ores Limited

a) Dealt with in the accounts of The Sandur Nil Manganese & Iron Ores Limited for the year ended 31 March 2013

b) Not dealt with in the accounts of The Sandur Loss of Rs-798.83 Manganese & Iron Ores Limited for the year ended lakh 31 March 2013


Mar 31, 2013

Note 1 - Contingent Liabilities and commitments (to the extent not provided for) (i) Contingent Liabilities

a) Claims against the Company not acknowledged as debts:

As at 31.03.2013 As at 31.03.2012 Particulars Rs. lakh Rs. lakh

Stamp duty on net present value includes maximum penalty of 4,545.00 lakh

(relating to applicability of duty)

Income tax (relating to disallowance of deduction) 924.10 2,553.74

Service tax (relating to applicability of tax) 316.64 316.64

Others (relating to applicability of forest lease rental and other matters) 2,144.60 14.80

The above amounts have been arrived at based on the notice of demand or the Assessment Orders, as the case may be, and the Company is contesting these claims with the respective authorities. Outflows, if any, arising out of these claims would depend on the outcome of the decisions of the appellate authorities and the Company''s rights for future appeals before the judiciary. No reimbursements are expected.

Note 2 - Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

There are no micro and small enterprises to whom the Company owes dues which are outstanding as at the balance sheet date. The information regarding Micro Enterprises and Small Enterprises have been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

Note 3 - As per the draft rehabilitation scheme of Sandur Laminates Limited and Sandur Micro Circuits Limited, the Company has given an undertaking not to dispose of its share holdings in Sandur Laminates Limited and Sandur Micro Circuits Limited without prior approval of Board for Industrial and Financial reconstruction (BIFR).

Note 4 - Trade payables do not include any amount to be credited to the Investor Education and Protection Fund.

Note 5 - Employee benefit plans:

a) Defined contribution plan

The Company makes Provident Fund, Superannuation Fund and Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 116.09 lakhs (Year ended March 31, 2012 - Rs. 133.18 lakhs) for provident fund contributions, Rs. 29.06 lakhs (Year ended March 31, 2012 Rs. 25.21 lakhs) for superannuation fund contributions and Rs. 0.67 lakhs (Year ended March 31, 2012 Rs. 0.64 lakhs) for employee state insurance scheme contributions in the statement of profit and loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

In case of SMIORE Provident Fund Trust interest rate payable by the Trust to its beneficiaries is as notified by the Government. The Company has an obligation to make good the short fall, between the return from the investments of trust and the notified interest rate and recognise such shortfall as an expense. Based on the actuarial valuation, there is no shortfall in the interest payable by the trust to the beneficiaries as on the balance sheet date.

b) Defined benefit plan - Funded

The Company makes annual contributions to an Insurance managed Fund. The scheme provides for lump sum payment to vested employees on retirement, death while in employment or on termination of employment as per the Company''s Gratuity Scheme, vesting occurs upon completion of three years of service.

Note 6 - Related party disclosures

Name of related parties and description of relationship

1 Holding Company None

2 Subsidiary Star Metallics and Power Private Limited

3 Key Management Personnel (KMP) i) S. Y. Ghorpade, Chairman & Managing Director

ii) Nazim Sheikh, Joint Managing Director (with effect from 9 April 2011) and Executive Director (up to 8 April 2011)

iii) S.H. Mohan, Technical Director

iv) S.R.Sridhar, Director (Mines)

v) U. R. Acharya, Director (Commercial) (with effect from 9 April 2011)

vi) K. Raman, Director (Finance) (with effect from 9 April 2011)

4 Relative of KMP i) Aditya Shivrao Ghorpade

ii) Dhananjaya Shivarao Ghorpade (with effect from 1 April 2011)

iii) Puneet Acharya (with effect from 1 April 2011 up to 31 October 2011)

Note 7 - Operating lease disclosure :

The Company has entered into operating leases in respect of office premises and residential premise. The leasing arrangement is cancellable and is renewable by mutual consents. The lease rentals charged to the statement of profit and loss in respect of these leases amounts to Rs.16.71 lakh (2011-12 Rs.14.40 lakh).

Note 8 - Accounting for Taxes on Income

a) During the year, the Company has provided for Minimum Alternative Tax (MAT) under section 115JB of the Income-tax Act, 1961 since the tax liability as per regular provisions of the Income-tax Act, 1961 is lower. Correspondingly, the Company has also claimed credit of Rs. 60 lakh (2011-12 Rs. Nil lakh) under section 115JAA of the said Act, which is disclosed as ''MAT credit entitlement'' in the statement of profit and loss.

b) Details of deferred tax assets/ (liabilities) are as below:

Note 9 - Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2012

Note 1 - Contingent Liabilities and commitments (to the extent not provided for)

(i) Contingent Liabilities

a) Claims against the Company not acknowledged As at 31.03.2012 As at 31.03.2011 as debts Rs. lakh Rs. lakh

Stamp duty on net present value includes maximum penalty of 5,454.00 5,454.00 Rs. 4545.00 Lakh (relating to applicability of duty)

Income tax (relating to disallowance of deduction) 2,553.74 3,561.13

Service tax (relating to applicability of tax) 316.64 316.64

Others 14.80 14.80

The above amounts have been arrived at based on the notice of demand or the Assessment Orders, as the case may be, and the Company is contesting these claims with the respective authorities. Outflows, if any, arising out of these claims would depend on the outcome of the decisions of the appellate authorities and the Company's rights for future appeals before the judiciary. No reimbursements are expected.

Note 2 - Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

There are no micro and small enterprises to whom the Company owes dues which are outstanding as at the balance sheet date. The information regarding Micro Enterprises and Small Enterprises have been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

Note 3 - As per the draft rehabilitation scheme of Sandur Laminates Limited and Sandur Micro Circuits Limited, the Company has given an undertaking not to dispose of its share holdings in Sandur Laminates Limited and Sandur Micro Circuits Limited without prior approval of Board for Industrial and Financial reconstruction (BIFR).

Note 4 - Trade payables do not include any amount to be credited to the Investor Education and Protection Fund.

(b) Defined Benefit Plan - Funded

The Company makes annual contributions to an Insurance managed Fund. The scheme provides for lump sum payment to vested employees on retirement, death while in employment or on termination of employment as per the Company's Gratuity Scheme, vesting occurs upon completion of three years of service.

Note 5 - Related party disclosures:

Names of related parties and description of relationship:

1 Holding Company None

2 Subsidiary Star Metallics and Power Private Limited

3 Key Management Personnel (KMP)

ii) Nazim Sheikh, Joint Managing Director (w.e.f. 9 April 2011) and Executive Director (up to 8 April 2011)

iii) S.H. Mohan, Technical Director

iv) S.R.Sridhar, Director (Mines)

v) U. R. Acharya, Director (Commercial) (w.e.f. 9 April 2011)

vi) K. Raman, Director (Finance) (w.e.f.9 April, 2011)

4 Relative of KMP

Aditya Shivrao Ghorpade

Dhananjaya Shivarao Ghorpade (w.e.f. 1 April 2011)

Puneet Acharya (w.e.f. 1 April 2011 up to 31 October 2011)

Note 6 - Operating lease disclosure :

The Company has entered into operating leases in respect of office premises and residential premise. The leasing arrangements are cancellable and are renewable by mutual consents. The lease rentals charged to the statement of profit and loss in respect of these leases amounts to Rs.14.40 Lakh (Previous year Rs.17.32 Lakh)

Note 7 - The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.


Mar 31, 2011

1) Contingent Liabilities

31.03.2011 31.03.2010 Rs. Lakh Rs. Lakh

a) Claims against the Company not acknowledged as debts.

Stamp duty on net present value includes maximum penalty of 5,454.00 5,454.00 4545.00 lakh (relating to applicability of duty)

Income tax (relating to disallowance of deduction) 3,561.13 1,573.76

Service tax (relating to applicability of tax) 316.64 5.85

Others 14.80 17.68

The above amounts have been arrived at based on the notice of demand or the Assessment Orders, as the case may be, and the Company is contesting these claims with the respective authorities. Outflows, if any, arising out of these claims would depend on the outcome of the decisions of the appellate authorities and the Company's rights for future appeals before the judiciary. No reimbursements are expected.

b) Guarantees given by the Company:

i) Employees (including some former employees) in respect of 0.48 3.54 housing loans

The Company has got an undertaking from the employees to repay on their behalf directly to the bank/financial institution.

ii) Corporate guarantee issued to Customs authorities on behalf of 1,050.00 1,050.00 subsidiary company

The Company has given the said guarantee in respect of fulfillment of the export obligations by the subsidiary company. There are no defaults as at the year end and no liability is expected.

iii) Others (principal guarantees) - 10.00

The Company had given the said guarantee for the working capital facilities availed by the welfare organization sponsored by the Company.

2) There are no micro and small enterprises to whom the Company owes dues which are outstanding as at the balance sheet date. The above information and that given under current liabilities and provisions (Schedule 6) regarding Micro Enterprises and Small Enterprises have been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

3) Related party disclosures:

Related parties and description of relationship:

1. Holding company None 2. Subsidiary Star Metallics and Power Private Limited

3. Key Management personnel i) S.Y Ghorpade, Chairman & Managing Director (KMP) ii) Nazim Sheikh, Joint Managing Director (w.e.f. 09th April 2011) and Executive Director (upto 08th April 2011)

iii) S. H. Mohan, Technical Director

iv) S. R. Sridhar, Director (Mines)

v) U.R.Acharya, Director (Commercial) (w.e.f. 09th April 2011)

vi) K. Raman, Director (Finance) (w.e.f 09th April 2011)

4. Relative of KMP Aditya Shivrao Ghorpade

4) Employee Benefits

a) Defined contribution plan

The Company makes contributions at predetermined rates to SMIORE Provident Fund Trust and to the Regional Provident Fund commissioner in respect of Employee Provident Fund and to the Life Insurance Corporation of India in respect of Superannuation Fund.

In case of SMIORE Provident Fund Trust interest rate payable by the Trust to the beneficiaries is as notified by the Government. The Company has an obligation to make good the short fall, if any, between the return from the investments of trust and the notified interest rate and recognise such shortfall as an expense. There is no shortfall in the interest payable by the trust to the beneficiaries as on the balance sheet date.

b) Defined Benefit Plan - Funded

The Company makes annual contributions to an Insurance managed fund. The scheme provides for lump sum payment to vested employees on retirement, death while in employment or on termination of employment as per the Company's Gratuity Scheme, vesting occurs upon completion of three years of service.

c) Other Long term benefits - Unfunded

The discount rate for defined benefit plan and other long term benefits is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of obligations. The estimate of future salary increases considered for defined benefits plan and other long term benefits takes into account the inflation, seniority, promotion, increments and other relevant factors.

5) Operating lease disclosure

The Company has entered into operating leases in respect of office premises and residential premises. This leasing arrangement is cancellable and is renewable by mutual consent. The lease rentals charged to the Profit and Loss Account in respect of these leases amount to 75.82 lakh. (Previous Year 81.58 lakh)

6) As per the draft rehabilitation scheme of Sandur Laminates Limited and Sandur Micro Circuits Limited, the Company has given an undertaking not to dispose of its share holdings in Sandur Laminates Limited and Sandur Micro Circuits Limited without the prior approval of Board for Industrial and Financial Reconstruction (BIFR).

7) Current liabilities do not include any amount to be credited to the Investor Education and Protection Fund.

8) a) Previous year's figures have been regrouped / recast, wherever necessary, to conform to the classification adopted for the current year.

b) Schedules 1 to 9 form an integral part of the accounts


Mar 31, 2010

1) Contingent Liabilities

31.03.2010 31.03.2009 Rs.lakh Rs.lakh

a) Claims against the Company not ackn owledged as debts.

i) Stamp duty on net present value inc ludes maximum 5,454.00 - penalty of Rs.4,545.00 lakh (relating to applicability of duty)

ii) Income tax (relating to disallowance of deduction) 1,573.76 -

iii) Service tax (relating to applicabi lity of tax) 5.85 293.35

iv) Others 17.68 17.68

The above amounts have been arrived at based on the notice of demand or the Assessment Orders, as the case may be, and the Company is contesting these claims with the respective authorities. Outflows, if any, arising out of these claims wouid depend on the outcome of the decisions of the appellate authorities and the Companys rights for future appeals before the judiciary. No reimbursements are expected.

b) Guarantees given by the Company:

i) Employees (including some former employees) in respect of housing loans 3.54 9.87

The Company has got an undertaking from the employees to repay on their behalf directly to the bank/financial institution.

ii) Corporate guarantee issued to Customs authorities on behalf of subsidiary company 1,050.00 1,050.00

The Company has given the said guarantee in respect of fulfillment of the export obligations by the subsidiary company. There are no defaults as at the year end and no liability is expected.

iii) Others (principal guarantees) 10.00 10.00

The Company has given the said guarantee for the working capital facilities availed by the welfare organisation sponsored by the Company. There are no defaults as at the year end and no liability is expected._

c) Bills discounted - 533.18

Represents bills discounted against the irrecoverable letter of credit.

NOTES:

Processed by third parties.

a) Manganese ore production includes 28,678 tonnes (previous year: 4,212 tonnes) and iron ore production includes 36,234 tonnes (previous year: 332,829 tonnes) salvaged from waste dumps.

b) Production / purchase includes 10,000 tonnes of iron ore purchases and 97 tonnes of TMT steel bars purchases.

c) Previous year figures are in brackets

2) There are no micro and small enterprises to whom the Company owes dues which are outstanding as at the balance sheet date. The above information and that given under current liabilities and provisions (Schedule 6) regarding Micro Enterprises and Small Enterprises have been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

NOTE : Most of the assets are not identifiable separately to any reportable segment as these are used interchangeably between segments.

NOTE : The above costs of assets are not identifiable separately to any reportable segment as these are used interchangeably between segments.

The Company essentially operates within India and there are exports mainly through Export Trading House in respect of the Mines.

3) Employee Benefits

a) Defined contribution plan

The Company makes contributions at predetermined rates to SMIORE Provident Fund Trust and to the Regional Provident Fund Commissioner in respect of Employee Provident Fund and to the Life Insurance Corporation of India in respect of Superannuation Fund.

In case of SMIORE Provident Fund Trust interest rate payable by the Trust to the beneficiaries is as notified by the Government. The Company has an obligation to make good the shortfall, if any, between the return from the investments of trust and the notified interest rate and recognise such shortfall as an expense. There is no shortfall in the interest payable by the trust to the beneficiaries as on the balance sheet date.

b) Defined Benefit Plan - Funded

The Company makes annual contributions to an Insurance managed fund. The scheme provides for lump sum payment to vested employees on retirement, death while in employment or on termination of employment as per the Companys Gratuity Scheme, vesting occurs upon completion of three years of service.

Expected rate of return on plan assets is based on average yield on investment.

The discount rate for defined benefit plan and other long term benefits is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of obligations.

The estimate of future salary increases considered for defined benefits plan and other long term benefits takes into account the inflation, seniority, promotion, increments and other relevant factors.

4) As per the draft rehabilitation scheme of Sandur Laminates Limited and Sandur Micro Circuits Limited, the Company has given an undertaking not to dispose of its share holdings in Sandur Laminates Limited and Sandur Micro Circuits Limited without their prior approval of Board for Industrial and Financial Reconstruction (BIFR).

5) Current liabilities do not include any amount to be credited to the Investor Education and Protection Fund.

6) a) Previous years figures have been regrouped/recast, wherever necessary, to conform to the classification adopted for the current year. b) Schedules 1 to 9 form an integral part of the accounts.

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