Notes to Accounts of Shyam Century Ferrous Ltd.

Mar 31, 2023

(a) Terms/Rights attached to the Equity Shares & Notes

The Company has only one class of equity shares having par value of '' 1/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend.

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

The Board of Directors at its meeting held on 11th August, 2022, approved a proposal to buy-back upto 1,00,00,000 equity shares of the Company for an aggregate amount not exceeding '' 2800 Lakhs, being 4.50% of the total paid up equity share capital at '' 28 per equity share. The shareholders approved the same on 14th September, 2022, by way of a special resolution through postal ballot. A Letter of Offer was made to all the eligible shareholders. The Company bought back 1,00,00,000 equity shares out of the shares that were tendered by eligible shareholders and extinguished the equity shares on 21st November, 2022. Capital redemption reserve was created to the extent of share capital extinguished ('' 1 Crore). The cost of buy-back is '' 2800 Lakhs (excluding transaction costs such as Brokerage, filing fees, advisory fees, publication expenses, Buy Back Tax, Securities Transaction Tax, GST, Stamp duty and other related expenses etc.) and corresponding tax on buy-back of '' 628 Lakhs were adjusted from retained earnings.

(c) Terms of issue of shares other than cash

Pursuant to the Scheme of Arrangement ("the scheme") between Star Ferro and Cement Limited (SFCL), the Company and their respective shareholders as approved by the Hon’ble High Court of Meghalaya at Shillong vide its order dated 31st March, 2015 with effect from 1st April, 2014 being the appointed date, the Company had issued and alloted 21,21,72,990 Equity Shares to the shareholders of SFCL in ratio of 1 (one) Equity share of '' 1/- each of the Company as fully paid-up for every 1 (one) Equity Share of '' 1/- each held by them in SFCL.

(d) During the year, the Company has not surrendered or disclosed any income in the tax assessments under the Income Tax Act, 1961 (such as search or survey or any other relevant provision of the Income Tax Act, 1961). Accordingly, there are no transaction which are not recorded in the books of account.

NOTE 35 | EMPLOYEES BENEFIT OBLIGATIONS

(I) Leave obligations

Under leave encashment scheme, the Company allows its employees to encash accumulated leave over and above thirty days at any time during the year. Hence the entire amount of the provision is presented under current liabilities.

(II) Post-employment obligations Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to gratuity on terms not less than the provisions of The Payment of Gratuity Act, 1972.

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. 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 sensitvity analysis did not change compared to the prior period.

(v) Risk exposure

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

Interest risk:

A decrease in the interest rate on plan assets will increase the plan liability.

Life expectancy:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and at the end of the employment. An increase in the life expectancy of the plan participants will increase the plan liability.

Salary growth risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increase in the salary of the plan participants will increase the plan liability.

(vi) Defined benefit liability and employer contributions

Expected contribution to post-employment benefits plans for the year ending 31st March, 2024 is '' 18.82 Lakhs.

The weighted average duration of the defined benefit obligation is 5.98 years (31st March, 2022 : 5.61 years). The expected maturity analysis of undiscounted gratuity is as follows:

(III) Provident Fund

Contribution towards provident fund are recomputed as expenses in the Statement of Profit and Loss. The Company has a defined contribution plan. Under the defined contribution plan, provident fund is contributed to the Government administered provident fund. The Company has no further contractual nor any constructive obligation, other than the contribution payable to the provident fund. The expense recognised during the period towards defined contribution plan is '' 19.46 Lakhs (as at 31st March, 2022 : '' 17.26 Lakhs)

(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.

The carrying amounts of all other financial assets and financial liabilities are considered to be the same as their fair values due to their short-term nature.

The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk. The carrying amounts of other borrowings with floating rate of interest are considered to be close to the fair value.

The fair values for financial instruments were calculated based on cash flows discounted using current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

(iv) 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.

(i) The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

(ii) The Company has recognised interest on lease liabilities of '' 5.81 Lakhs under Finance Cost (Previous year: '' 4.39 Lakhs).

(iii) The aggregate depreciation on ROU assets has been included under depreciation and amortisation expense in the Statement of Profit and Loss.

NOTE 39 | CAPITAL MANAGEMENT (a) Risk management

The Company’s objectives when managing capital are to:

• safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

• maintain an optimal capital structure to reduce the cost of capital

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 .

The amount mentioned under total equity in balance sheet is considered as Capital.

The Company does not have any externally imposed capital requirements.

(A) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

(i) 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:

(ii) Financial instruments and deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s finance department. For banks and financial institutions, only high rated banks/institutions are accepted.

Financial assets are considered to be of good quality and there is no significant credit risk.

The Company’s maximum exposure to credit risk for the components of the Balance Sheet at 31st March, 2023 and 31st March, 2022 is the carrying amounts as illustrated in Note no. 37

(B) 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 flows projection and level of liquid assets necessary to meet these on a regular basis.

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 may be drawn at any time in Indian Rupees.

Maturities of financial liabilities

The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for all financial liabilities.

(C) Market risk - 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 market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates.

The Company’s main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interest rate risk. During 31st March, 2023, the Company’s borrowings at variable rate were mainly denominated in Indian Rupees.

The Company’s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

(D) Market risk - Foreign currency risk

The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

Further foreign exchange risk also arises from future cash flow against foreign currency loan. The risk is measured through a forecast of highly probable foreign currency cash flows.

(E) Market risk - Price risk

The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), 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. The Company’s exposure to equity securities price risk arises from investments held by the Company in equity securities and classified in the Balance Sheet as at fair value through profit and loss. The Company has investment in qouted and unqouted equity securities. Investment is done in accordance with the limits set by the Company. The Company’s Board of Directors reviews and approves all investment decisions.

NOTE 42 CONTINGENT LIABILITIES & COMMITMENTS
(i)	Capital and Other Commitments		('' in Lakhs)
	Particulars	31st March, 2023	31st March, 2022
	Commitment for Acquisition of Property, plant & Equipement (Net of Advance)	148.4	-
(ii)	Contingent Liabilities		('' in Lakhs)
	Particulars	31st March, 2023	31st March, 2022
	Claims against the Company not acknowledged as debts - Excise / VAT / Income Tax matters etc.	2,317.00	1,851.32

Note : Based on legal opinion / decisions in similar cases, the Management believes that the Company has a fair chance of favourable decisions in cases mentioned here-in-above and hence no provision is considered necessary. 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.

(a) On the basis of the direction of the High Court of Meghalaya dated 30th August, 2018 following the decision of the Supreme Court dated 10th November, 2017 passed in SRD Nutrients Private limited. Vs. Commissioner of Central Excise, Guwahati, Company has received a refund of Education Cess and Secondary & Higher Education Cess amounting to '' 112 Lakhs (approx) in earlier years. However, the Apex court vide its Order dated 6th December, 2019 have taken a contrary view in the matter of M/s Unicorn Industries Vs Union of India and Others. Based on the later

judgement a demand letter was raised by the department to refund the amount granted. As the Order dated 30th August 2018, has attained its finality and the refund was granted accordingly, the Company has preferred a writ petition before the Meghalaya High Court against the above demand letter. Meghalaya High Court has stayed the said demand vide its order dated 16th June, 2020. The final hearing of the case is yet to be conducted before the Meghalaya High Court. Based on the legal advice obtained by the Company from External Counsel as well as its own assessment, there is every likelihood that the said demand will be quashed and therefore no provision have been taken in the books of account.

(b) In respect of demand notice dated 19th February, 2020 received by the Company from Director of Mineral Resources, Meghalaya, for payment of royalty, MEPRF, VAT/GST for '' 1,739 Lakhs (approx) in pursuance to the National Green Tribunal (NGT) Order dated 17th January, 2020 passed in O.A. No. 110(TCH)/2012 for alleged illegal coal procurement. By passing the said order NGT has accepted the Recommendation of the 5th Interim Report of the Independent Committee set up by NGT, which has suggested imposition of penalty on Cement Companies and Thermal Power Plants in Meghalaya. The Company has not purchased any illegal coal and has complied with all disclosure requirements of the various Government Departments. The Report of NGT Committee has been founded on the basis of assumptions and views of the Committee and not on hard facts. Further to note that the Company has neither been issued a show-cause nor any opportunity of being heard was given to the Company before submitting the Interim reports by the Independent Committee to NGT. Even NGT has not served any notice on the Company before passing the impugned order dated 17th January, 2020 which is clear violation of principles of natural justice. The Company backed by the legal opinions, believes that it has a good case in the matter as the said order was issued based on certain hypothetical assumptions and views and not on hard facts. No opportunity of being heard was provided to the Company either by NGT committee or by NGT itself which passed order without going into the merits & facts and accepted the recommendations of 5th Interim Report. In addition, the Committee also recommended that an amount of '' 400/MT of coal to be utilised by SCFL (and other plants) on or after the date of the order shall be directed to be deposited in the MEPRF, which comes to '' 446 Lakhs(approx). Therefore, there is every likelihood of the Demand Notice and the order of the NGT being set aside. The Company has preferred an appeal before the Supreme Court of India against the NGT. By way of the Judgment dated 2nd May, 2023, the Supreme Court has set aside the Order of the NGT dated 17th January, 2020 and demanded back by NGT and accordingly, no provision has been made in the accounts.

NOTE 44 | CORPORATE SOCIAL RESPONSIBILITY

As per Section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting, education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural developments projects.

44.1 A CSR Committee has been formed by Company as per the Companies Act, 2013. The funds were primarily utilised through the year on these activities which are specified in Schedule VII of the Companies Act, 2013.

a) Gross Amount required to be spent by the Company during the year is '' 51.74 Lakhs (as at 31st March, 2022, '' 10.61 Lakhs)

NOTE 45 | The Company has not been declared a wilful defaulter by any bank/financial institution/government/any government authority.

NOTE 46 | The Company has not traded or invested in crypto currency or virtual currency during the current year or previous year.

NOTE 47 | The borrowings obtained by the Company from banks have been applied for the purposes for which such loans were taken.

NOTE 48 | The Company has not entered into any scheme of arrangements which has an accounting impact on current or previous financial years.

NOTE 49 | No proceedings have been initiated on or are pending against the Company for holding benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) [formerly the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)] and Rules made thereunder.

NOTE 50 | The Company did not have any transactions with companies struck off under Section 248 of the Companies Act, 2013 during the financial year

NOTE 51 | (i) The Company has not advanced or loaned or invested funds (either borrowed funds or security premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall 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

(ii) The Company have not received any fund from any person(s) or entities, 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 52 | There are no charges or satisfaction of charges which are yet to be registered with the Registrar of Companies beyond the statutory period.

NOTE 56 | The Company is primarily engaged in the manufacture and sale of ferro silicon. There are no separate reportable segments as per Ind AS 108, ''Operating Segments’.

NOTE 57 | Previous year’s figures have been rearranged and/or regrouped, wherever necessary

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Mar 31, 2018

Note: 1 - Capital management (a) Risk management

The Company''s objectives when managing capital are to:

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital

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.

The amount mentioned under total equity in balance sheet is considered as Capital.

(A) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

i) 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:

ii) Financial instruments and deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s finance department. For banks and financial institutions, only high rated banks/institutions are accepted.

Financial assets are considered to be of good quality and there is no significant credit risk.

The Company''s maximum exposure to credit risk for the components of the balance sheet at 31 March 2018, 31 March 2017 and 1 April 2016 is the carrying amounts as illustrated in Note 38.

(B) 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 flows projection and level of liquid assets necessary to meet these on a regular basis. Management monitors rolling forecasts of

76 I SHYAM CENTURY FERROUS limited

the Company''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

(i) Financing arrangements

The Company had access to the following undrawn borrowing 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 may be drawn at any time in INR.

Maturities of financial liabilities

The tables below analyses the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for all financial liabilities.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(ii) 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 market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates.

The Company''s main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interest rate risk. During 31 March 2018, 31 March 2017 and 1 April 2016 the Company''s borrowings at variable rate were mainly denominated in INR.

The Company''s fixed rate borrowings are carried at Amortized cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

(a) Interest rate risk exposure On Financial Liabilities:

The exposure of the Company''s financial liabilities to interest rate risk is as follows:

Note: 2 - Related Party Disclosures

I. Name of the related parties and related party relationship:

Names of the related parties where control exists Nature of relationship

A. Star Cement Limited (Formerly Cement Manufacturing Company Enterprise owned/influenced by KMP Limited) (SCL)

Meghalaya Power Limited (MPL) Associate

B. Key Management Personnel

Name of the Related Parties Nature of relationship

Mr. Sajjan Bhajanka Director

Mr. M.V.K.Nageswara Rao Chief Executive Officer

Mr. Uday Bahadur Chetri Chief Financial Officer (w.e.f. 30th May, 2017)

Ms. Neha Agarwal Company Secretary (w.e.f. 30th May, 2017)

(a) Based on legal opinion / decisions in similar cases, the Management believes that the Company has a fair chance of favorable decisions in cases mentioned here-in-above and hence no provision is considered necessary.

(b) Hon''ble High Court at Guwahati (Shillong Bench) vide its order dated 12th September, 2012, has directed the Excise Department to release 50% of the differential amount against furnishing of solvent surety. Based on the said judgment of Hon''ble High Court and legal opinion obtained by the Company, the differential excise duty refund of HNil (31 March 2017: H222.92 lacs, 1 April 2016: H167.69 lacs) has been recognized as revenue in the books of account.

(c) 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 to Ind ASs. As a result, no impact has been taken as on 1 April 2016.

Note: 45 - Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting, education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural developments projects.

A CSR Committee has been formed by Company as per the Act. The funds were primarily utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013.

a) Gross Amount required to be spent by the Company during the year is H12.37 lacs ( 31 March 2017: H6.94 lacs, 1 April 2016 H5.88 lacs)

I - Transition to Ind AS (First Time Adoption)

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

The accounting policies set out in Note 1, have been applied in preparing the financial statements from the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet at 1 April 2016 (the Company''s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). 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 set out in the following tables and notes.

A. Exemptions and exceptions availed

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

A.1 Ind AS optional exemptions A.1.1 Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets.

Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value

A.1.2 Investments in associates

In separate financial statements, a first-time adopter that subsequently measures an investment in a associate 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 separate opening Ind AS balance sheet. Selection of fair value or previous GAAP carrying amount for determining deemed cost can be done for associate .

Accordingly, the Company has elected to measure all of its investment in associate at their previous GAAP carrying value.

A.2 Ind AS mandatory exceptions A.2.1 Estimates

An entity''s estimates in accordance with Ind ASs 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), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP

A.2.2 Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the fact and circumstances that exits at the date of transition to Ind AS.

C: Notes to first-time adoption:

Note 1: Fair valuation of financial liability

As per Ind AS 109, financial liabilities are to be recognized at fair value. Hence the Company has recognized its financial liability at fair value with resultant impact as on the date of transition is recognized in retained earning. Subsequently these are measured at Amortized cost and interest as per effective interest rate are recognized in Statement of Profit and Loss.

Note 2: Employee benefit obligation

Under previous GAAP, actuarial gains and losses related to the defined benefit scheme for gratuity were recognized in profit or loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability / asset which is recognized in OCI. Consequently, the tax effect of the same has also been recognized in OCI instead of profit or loss.

Note 3: Deferred tax

The various transitional adjustments lead to different temporary differences. According to the accounting policies in Note 1, the Company has to account for such differences. Deferred tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or a separate component of equity.

Note 4: De-recognition of financial assets and liabilities

Ind AS 109 requires entity to derecognize a financial asset when, and only when the contractual rights to the cash flows from the financial asset expire, or it transfers the financial asset as and 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.

As a result, trade receivables increased by H 1228.48 lacs as at 31 March 2017 with a corresponding impact on current borrowings. Accordingly, the said adjustment
has no impact on either equity and profit or loss for the year ended 31 March 2017.

Note 5: Statement of cash flows

The transition from Indian GAAP to Ind AS has not had a material impact on the statement of cash flows.

6. There are no Micro, Small and Medium Enterprises, as defined in the Micro, Small and Medium Enterprises Development Act, 2006 to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made. The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of the information available with the Company.

7. The standalone financial statements are approved by the Audit Committee at its meeting held on 17th May, 2018 and by the Board of Directors on the same date.

8. Notes to the standalone financial statements comprises of information relevant for the group.

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Mar 31, 2016

b) Terms/Rights attached to the Equity Shares & Notes

The Company has only one class of equity shares having par value of Rs.1/- per 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 the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend.

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

c) Terms of issue of shares other than cash

Pursuant to the Scheme of Arrangement ("the scheme") between Star Ferro and Cement Limited (SFCL), the Company and their respective shareholders as approved by the Hon''ble High Court of Meghalaya at Shillong vide its order dated 31st March, 2015, the Company has issued and alloted 22,21,72,990 Equity Shares to the shareholders of SFCL in ratio of 1 (one) Equity share of Rs.1/- each of the Company as fully paid-up for every 1 (one) Equity Share of Rs. 1/- each held by them in SFCL.

d) Details of Shareholders holding more than 5% shares in the Company

1. There are no Micro, Small and Medium Enterprises, as defined in the Micro, Small and Medium Enterprises Development Act, 2006 to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made. The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of the information available with the Company.

2. EXCISE DUTY REFUND

The Hon''ble High Court at Guwahati (Shillong Bench) vide its order dated 12th September, 2012, has directed the Excise Department to release 50% of the differential amount against furnishing of solvent surety in line with the Interim Order dated 13th January, 2012 passed by Hon''ble Supreme Court in case of "VVF Ltd and others". Based on the said judgment of Hon''ble High Court and legal opinion obtained by the Company, the differential excise duty refund of Rs. 167.69 Lacs (Previous Years Rs.365.90 Lacs) has been recognized as revenue in the books of account.

3. MePDCL has raised invoices for cross subsidy surcharge at the rate of Rs. 1.51/ KWH as fixed by the State Regulatory Commission of Meghalaya for electricity consumed through open access during the year. The Company has appealed through the trade association before the Appellate Tribunal of Electricity (APTEL) for revision of tariff. However, the Company has taken provision in its books at the rate of Rs. 0.44/KWH as per the tariff proposed before APTEL which is according to the formula laid down in National Consumer Tariff Policy and the differential amount has been shown as Contingent Liability.

4. Ministry of Corporate Affairs (MCA) vide notification dated 29th August, 2014 has amended Schedule II to the Companies Act, 2013 requiring mandatory componentization of fixed assets for financial statements in respect of Financial Years commencing on or after 1st April, 2015. During the year, the Company has undertaken the Componentization of fixed assets w.e.f. 1st April, 2015 on the basis of technical evaluation and useful life thereof. Consequent to the same, the Depreciation expense is higher by Rs.0.38 Lacs and Profit Before Tax is lower by Rs.0.38 lacs for the year ended 31st March, 2016.

5. EMPLOYEE DEFINED BENEFITS

(a) Defined Contribution Plans: The Company has recognized an expense of Rs. 26.74 Lacs (Previous year Rs. 24.17 Lacs) towards the defined contribution plans.

(b) The Company has a defined benefit gratuity plan. Every employee who has completed five years or more service is entitled to Gratuity on terms not less than the provisions of The Payment of Gratuity Act, 1972. The following table summarizes the components of net benefit expenses recognized in the Statement of Profit & Loss and amounts recognized in the Balance Sheet for the Gratuity.

(c) Under leave encashment scheme, the Company allows its employees to encash accumulated leave over and above thirty days at any time during the year.

6. Value of imported and indigenous Raw-materials and Stores & Spare parts etc. and their percentage to total consumption

7. As per Section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three Financial Years on Corporate Social Responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural developments projects.

A CSR Committee has been formed by Company as per the Act. The funds were primarily utilized through out the year on these activities which are specified in Schedule VII of the Companies Act, 2013.

a) Gross amount required to be spent by the Company during the year is Rs.5.88 Lacs (PY Rs. Nil)

8. Figures have been rounded off to the nearest Rs. in Lacs. Previous year''s figures including those given in brackets have been rearranged and regrouped where necessary to confirm to the current year''s classifications.

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Mar 31, 2015

1 CORPORATE INFORMATION

Shyam Century Ferrous Limited (the Company) is a public company domiciled in India and incorporated on 12.04.2011 under the provisions of the Companies Act, 1956. Pursuant to the Scheme of Arrangement between Star Ferro and Cement Limited (SFCL), the Company and their respective shareholders as approved by the Hon'ble High Court of Meghalaya at Shillong vide its order dated 31st March, 2015, all the assets and liabilities of the Ferro Alloys division (i.e. business and interest of SFCL in manufacture of Ferro Alloys including captive power plant at Byrnihat) have been transferred to and vested in the Company at their respective book values on a going concern basis with effect from 1st April, 2014 being the appointed date. The Company is engaged in manufacturing of Ferro Alloys and generation of Power. The manufacturing unit is located at Byrnihat, Meghalaya. The company is selling its product across India.

2. Basis of Preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the Accounting Standards as prescribed under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ,to the extent notified. The financial statements are prepared under the historical cost convention on accrual basis and on the basis of going concern. The accounting policies are consistently followed by the company and changes in accounting policy are separately disclosed.

3. Terms/Rights attached to the Equity Shares & Notes

The company has only one class of equity shares having par value of Rs.1/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held bythe shareholders.

a) Rupee Term Loan from financial institution is secured by equitable mortgage of leasehold rights of land and first charge on fixed assets of the Company's Ferro Alloys Plant at Byrnihat, Meghalaya and second charge on current assets of the said unit. The Loan is to be repaid in further 18 quarterly instalments.

b) Hire Purchase Finance from bank is secured by hypothecation of respective vehicle/asset and is repayable within two years having varying date of payment.

Working Capital facility from bank is secured by first charge on the current assets and second charge on the fixed assets of the company's Ferro Alloys Plant at Byrnihat, Meghalaya.

4. Scheme of Arrangement

a) Pursuant to the Scheme of Arrangement ("The Scheme") between Star Ferro and Cement Limited (SFCL), the Company and their respective shareholders as approved by the Hon'ble High Court of Meghalaya at Shillong vide its order dated 31st March, 2015, all the assets and liabilities of the Ferro Alloys division (i.e. business and interest of the company in manufacture of Ferro Alloys including captive power plant at Byrnihat in the State of Meghalaya) and investment in 83,58,998 Equity Shares of Meghalaya Power Limited of face value of Rs.10/- each held by SFCL have been transferred to and vested in the Company at their respective book values on a going concern basis with effect from 1st April, 2014 being the appointed date. The said order of the Hon'ble High Court has been filed with the Registrar of Companies on 10th April, 2015, the effective date of the scheme and accordingly, the Scheme of Arrangement has been given effect to in these accounts.

d) Pursuant to the said Scheme of Arrangement, the Company will issue and allot Equity Shares to the shareholders of SFCL in ratio of 1 (one) Equity Share of Rs.1/- each of the Company as fully paid - up for every 1 (one) Equity Share of Rs.1/- each held by them in SFCL. Pending allotment of these shares, the amount of Rs.2,216.73 Lacs is shown as 'Share Capital - Pending Allotment' (net of shares to be cancelled pursuant to the Scheme of Arrangement).

e) Consequent to the allotment of new shares as per the Scheme of Arrangement, current share capital of the Company of Rs.5 Lacs would be cancelled.

5. Contingent Liabilities

(Rs. in Lacs)

Particulars 3103.2015 31.03.2014

Contingent Liabilities not provided for in respect of:-

(a) Bills discounted with banks 17.86 -

(b) Solvent surety given to Excise Department against differential excise duty refund 606.34 - (Refer note no. 31)

Note: Based on discussion with the solicitors/favourable decisions in similar cases/legal opinion taken by the company, the management believes that the company has a good chance of success in cases mentioned here-in-above and hence, no provision there against is considered necessary.

6. There are no Micro, Small and Medium Enterprises, as defined in the Micro, Small and Medium Enterprises Development Act, 2006 to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made. The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of the information available with the company.

7. Excise Duty Refund

Hon'ble High Court at Guwahati (Shillong Bench) vide its order dated 12th September, 2012, has directed the Excise Department to release 50% of the differential amount against furnishing of solvent surety in line with the Interim Order dated 13th January, 2012 passed by Hon'ble Supreme Court in case of "VVF Ltd and others". Based on the said judgment of Hon'ble High Court and legal opinion obtained by the company, the differential excise duty refund of Rs.365.90 lakhs has been recognised as revenue in the books of account.

8. The Company has charged depreciation based on the remaining useful life of the assets as per the provisions and requirements of Schedule II to the Companies Act, 2013 effective from April 1, 2014. Had there not been any change in useful life of the Assets, depreciation for the year would have been lower by Rs.6.01 Lacs and consequently profit before tax for the year would have been higher by Rs.6.01 Lacs.

9. Employee Defined Benefits

(a) Defined Contribution Plans: The Company has recognised an expense of Rs.15.97 Lacs (Previous year Rs. Nil Lacs towards the defined contribution plans).

(b) The Company has a defined benefit gratuity plan. Every employee who has completed five years or more service is entitled to Gratuity on terms not less than the provisions of The Payment of Gratuity Act, 1972. The following table summarises the components of net benefit expenses recognised in the Statement of Profit & Loss and amounts recognised in the balance sheet for the Gratuity.

(c) Under leave encashment scheme, the company allows its employees to encash accumulated leave over and above thirty days at any time during the year.

(d) Defined Benefit Plans - As per Actuarial Valuation as at 31st March, 2015.

(a) Business Segments: The business segments have been identified on the basis of the products/activities of the Company. Accordingly, the Company has identified following business segments:

Ferro-Alloys - Manufacturing of Ferro Alloy

Power - Generation of Power

(b) Geographical Segments: The Company operates predominantly within the geographical limits of India and accordingly secondary segments have not been considered.

10. By virtue of Notification no. G.S.R. 723 (E) dated 14th October, 2014 issued by the Ministry of Corporate Affairs, a Company which does not have a subsidiary or subsidiaries but has one or more associate company, no consolidation of Financial statements in respect of associate companies is required to be made for the Financial Year commencing from the 1st day of April, 2014 and ending on the 31st March, 2015. Hence, the company is not required to consolidate its accounts in respect of its investment in associate. The disclosure for the same is made in Form No. AOC -1 .

11. Figures have been rounded off to the nearest H in Lacs. Previous year's figures including those given in brackets have been rearranged and regrouped where necessary to confirm to the current year's classifications. Further, current year's figures include figures of Ferro Alloys business and investments which have been acquired by the company pursuant to the Scheme of Arrangement (Refer note no. 27). Hence, previous year's figures are not comparable with current year's figure.