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Notes to Accounts of Tata Metaliks Ltd.

Mar 31, 2022

The total cash outflow for leases for the year ended 31 March 2022 was ''2,870.65 Lakhs (31 March 2021 was 1,732.75 Lakhs)

(i) Variable lease payments

Some plant and equipment leases contain variable payment terms that are linked to production and consumption. Payments are on the basis of variable payment terms with payment depending majorly on the output from the leased asset.

(ii) Extension and termination options

Extension and termination options are included the company''s lease contracts.These are used to maximise operational flexibility in terms of managing the assets used in the company''s operations. The extension and termination options held are exercisable by mutual consent of both the lessor and the lessee.

(iii) Residual value guarantees

To optimise lease costs during the contract period, the company sometimes provides residual value guarantees in relation to its leases. The company has provided residual value guarantee for its lease against coke oven plant for ''1376 Lakhs (March 31, 2021 - 1,415 Lakhs)

i) Proposed dividend on equity shares are subject to approval at the annual general meeting and are not recognised as a liability as at March 31, 2022.

The nature of reserves are as follows:

Capital reserve

Reserve includes ''8,759.51 lakhs on account of Merger pursuant to the sanction of the Hon''ble High Court of Calcutta dated November 7, 2016 to the scheme of Amalgamation, where the assets and liabilities of the erstwhile Tata Metaliks DI Pipes Ltd (TMDIPL) has been merged with the company.

General reserve

Under the erstwhile Indian Companies Act, 1956, a general reserve was created through an annual transfer of net profit at a specified percentage in accordance with applicable regulations. Consequent to introduction of Companies Act, 2013, the requirement to mandatory transfer a specified percentage of the net profit to general reserve has been withdrawn though the Company may transfer such percentage of its profits for the financial year as it may consider appropriate. Declaration of dividend out of such reserve shall not be made except in accordance with rules prescribed in this behalf under the Act.

Securities premium

Securities premium is used to record premium received on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013

28. Contingent Liabilities		'' in Lakhs
	As at 31.03.2022	As at 31.03.2021
Claims against the company not acknowledged as debts
(a). Excise & Service Tax	1,158.52	1,136.99
(b). Income Tax (refer note below)	146.62	146.62
(c). Sales Tax & VAT	2,970.70	2,970.70

The Company had claimed a deduction u/s 80-IA of the Income Tax Act, 1961 amounting to ''7,682 lakhs during the AY 2003-04 to AY 2008-09 on its Captive Power Plant. The entire claim amount was allowed by the CIT(Appeals) & ITAT. However, tax department preferred an appeal before the Hon''ble Calcutta High Court for AY 2003-04 & AY 2004-05 on the ground that no real profit existed in Captive Power generation since same is not sold outside i.e. Tata Metaliks has consumed the power.

The Hon''ble Calcutta High Court vide it''s order dated August 3, 2016 allowed the deduction u/s 80-IA ''on the captive power unit'' in favour of the Company, however remanded back to AO on account of transfer price with respect to rate on which such benefit was computed. The Company have filed an appeal in Hon''ble Supreme Court where vide it''s order dated July 14, 2017, the case has been admitted and High Court order on re-computation of transfer price has been stayed. Final hearing is pending for disposal.

31. Segment Reporting

A. Description of Segments and Principal Activities

The Company''s Managing Director examines the Company''s performance on the basis of its business and has identified two reportable segments:

The segments are comprised of Pig Iron and Ductile Iron (DI) pipes.

Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the Financial Statements. Also, the Company''s borrowings (including Finance costs), income taxes and investments are managed at head office and are not allocated to operating segments.

Sales between segments are carried out at realisation price of pig iron less appropriate discount and are eliminated on consolidation. The segment revenue is measured in the same way as in the Statement of Profit and Loss.

Segment assets and liabilities are measured in the same way as in the Financial Statements. These assets and liabilities are allocated based on the operations of the segment and the physical location of the assets.

Terms and conditions of transactions with related parties

Transactions related to dividend were on the same terms and conditions that applied to other shareholders. The transactions with related parties (including sale to and purchases from, Intercorporate loan given to related parties) are made in the ordinary course of business and these are following the principles of arms''s length. Outstanding balances at the year end are unsecured and settlement occurs in cash. No provision are held against receivable from related parties.

The company has carrying amount of MAT credit of ''5,162.01 lakhs (March ''2021 ''7,015.38 lakhs) based on assessment (including application of sensitivity analysis on key inputs) of future profitability where it is reasonably certain that the same would be utilised within the time period in keeping with the provisions of Income tax Act. The future profitability are based on assumptions (relevant economic/internal/external factors) such as expected increase in production out of Board approved projects, estimates on cost of inputs, estimates on sales price etc.

(a) Unrecognised deferred tax assets on minimum alternate tax credit:

There are no amounts of unrecognized minimum alternate tax credits on which no deferred tax assets has been recognized as at March 31, 2022 and March 31, 2021

36. Discontinued Operations:

Based on decision of the Board of Directors of the Company at its meeting held on November 19, 2012 the Company has filed an application with the appropriate authority for closure of the Redi Plant, located at Terekhol Road, District: Sindhudurg, Redi - 416 517, Maharashtra, in accordance with the provisions of the Industrial Disputes Act, 1947. The application was initially rejected by the authority and the company has filed a review petition before the same authority. In the mean time the Company has negotiated with the employees for settlement and an agreement was signed on March 25, 2013 with the employees'' union. The Company and the employees'' union have filed the settlement details with the Commissioner of Labour to facilitate the closure process. The carrying value of property, plant and equipment, current assets and current liabilities of the Redi Plant as at March 31, 2022, were ''NIL (March 31, 2021 ''1,187.91 lakhs), ''NIL (March 31, 2021 ''22.70 lakhs) and ''NIL lakhs (March 31, 2021 ''18.48 lakhs) respectively.

37. Capital Management

The Company''s capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term goals of the Company.

The Company determines the amount of capital required on the basis of annual operating plans and long-term product and other strategic investment plans. The funding requirements are met through equity and other long-term/short-term borrowings. The Company''s policy is aimed at combination of short-term and long-term borrowings.

The company has no material financial covenants.

38. Financial risk management objectives and policies

The Company''s principal financial liabilities, other than derivatives, comprise trade and other payables, security deposits and employee liabilities. The main purpose of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its operations. The Company''s principal financial assets include trade and other receivables, and cash and short-term deposits that derive directly from its operations. The Company also enters into derivative transactions.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s senior management is supported by a Risk Management Compliance Board that advises on financial risks and the appropriate financial risk governance framework for the Company. The financial risk committee provides assurance to the Company''s senior management that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist personnel''s that have the appropriate skills, experience and supervision. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, mutual fund investment and derivative financial instruments.

The sensitivity analysis in the following sections relate to the position as at March 31, 2022 and March 31, 2021.

The sensitivity analysis have been prepared on the basis of debt and derivatives.

The following assumptions have been made in calculating the sensitivity analysis:

â¢ The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2022 and March 31, 2021.

â¢ The sensitivity of equity is calculated by considering the effect of any associated derivatives at March 31, 2022 and March 31, 2021 for the effects of the assumed changes of the underlying 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 is subject to variable interest rates on some of its interest bearing liabilities. The Company''s interest rate exposure is mainly related to debt obligations. The Company also uses a mix of interest rate sensitive financial instruments to manage the liquidity and fund requirements for its day to day operations like short term loans.

The risk estimates provided assume a parallel shift of 50 basis points interest rate across all yield curves. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The year end balances are not necessarily representative of the average debt outstanding during the period.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company, as per its risk management policy, uses foreign exchange and other derivative instruments primarily to hedge foreign exchange exposure. Any weakening of the functional currency may impact the Company''s cost of imports and cost of borrowings and consequently may increase the cost of financing the Company''s capital expenditures.

The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. It hedges a part of these risks by using derivative financial instruments in accordance with its risk management policies.

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) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

Customer credit risk is managed subject to the Company''s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit or other forms of credit insurance.

The companies maximum exposure to credit risk for the components of the Balance Sheet as of March 31, 2022 and March 31, 2021 is the carrying amounts as disclosed in Note 39

The risk relating to trade receivables is shown under Note 10

Other Financial Assets

Credit risk from balances with banks, term deposits, Intercorporate loan, investments and derivative instruments is managed by Company''s finance department. Investment of surplus fund are made only with approved counterparties who meet the minimum threshold requirement. The Company monitors rating, credit spreads and financial strength of its counterparties.

Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.

The Company has obtained fund and non-fund based working capital loans from various banks. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank loans, buyer''s credit and other means of borrowings. The company invests its surplus funds in liquid schemes of mutual funds, which carry no/low mark to market risk.

The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding and debt maturing within 12 months can be rolled over with existing lenders.

39. 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 2 to the financial statements

Fair value hierarchy:

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 consists of the following three levels:

â¢ Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date;

â¢ Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

â¢ Level 3 inputs are unobservable inputs for the asset or liability.

The investments included in Level 2 of fair value hierarchy have been valued using quotes available for similar assets and liabilities in the active market. The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair value. The cost of unquoted investments approximate the fair value because there is a range of possible fair value measurements and the cost represents estimate of fair value within that range

Notes

i The other financial assets and liabilities are stated at amortized cost which is approximately equal to their fair value.

ii Derivatives are fair valued using market observable rates and published prices together with forecast cash flow information where applicable.

iii There have been no transfers between level 1 and level 2 for the years ended March 31, 2022 and March 31, 2021.

40. Employee benefits

i) Superannuation fund

The company has a superannuation plan. Separate irrevocable trusts are maintained for employees covered and entitled to benefits.

The company contributes 15% of basic salary of the eligible employees to the trust every year. Such contributions are recognized as an expense when incurred. The company has no further obligation beyond this contribution. Total amount charged to the Statement of Profit and Loss for the year ''300.47 lakhs (Previous year ''285.68 lakhs).

ii) Retiring gratuity

The company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump-sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The company make annual contributions to gratuity funds established as trusts . Tata Metaliks Limited account for the liability for gratuity benefits payable in the future based on an actuarial valuation. The Company is exposed to actuarial risk and investment risk with respect to this plan.

The above sensitivity analysis are based on 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 obligations 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 obligation recognised in the Balance sheet.

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

iii) Pension Plan - Ex- Managing Director (Mr. Harsh K Jha)

The Company accounts for post-retirement defined benefit arrangements using Ind AS 19 ''Employee Benefits'', with independent actuaries being used to calculate the costs, assets and liabilities to be recognised in relation to these schemes. The present value of the defined benefit obligation, the current service cost and past service costs are calculated by these actuaries using the projected unit credit method. However, the ongoing funding arrangements of each scheme, in place to meet their long term pension liabilities, are governed by the individual scheme documentation and national legislation. The accounting and disclosure requirements of Ind AS 19 do not affect these funding arrangements.

v) Provident Fund

Contributions towards provident funds are recognised as expense for the year. The Company has set up a Provident Fund Trust which is administered by Trustees. Both the employees and the Company make monthly contributions to the Fund at specified percentage of the employee''s salary and aggregate contributions along with interest thereon are paid to the employees/nominees at retirement, death or cessation of employment.

The Trust invests funds following a pattern of investments prescribed by the Government. The interest rate payable to the members of the Trust is not lower than the rate of interest declared annually by the Government under The Employees'' Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, on account of interest is to be made good by the Company.

The Actuary has carried out actuarial valuation of plan''s liabilities and interest rate guarantee obligations as at the Balance Sheet date using Projected Unit Credit Method and Deterministic Approach as outlined in the Guidance Note 29 issued by the Institute of Actuaries of India. Based on such valuation, an amount of ''357.79 lakhs (March 31, 2021 : ''393.15 lakhs) has been provided towards future anticipated shortfall with regard to interest rate obligation of the Company as at the Balance Sheet date. Disclosures given hereunder are restricted to the information available as per the Actuary''s Report.

vi) Leave Obligation

The leave obligation cover the company''s liability for privilege leave and sick leave to be availed by employees. These employees can carry forward a portion of the unutilised leave balances and utilise it in future periods or receive cash in lieu thereof (except in case of sick leave for certain category of employees) as per the Company''s policy. The Company records a provision for leave obligations in the period in which the employees render the services that increases this entitlement.

vii) Others

Others consist of company and employee contribution to:

i. Employees Pension Scheme [Total amount charged to the Statement of Profit and Loss for the year ''213.25 lakhs (Previous year 2020-21 ''218.25 lakhs)]

ii. Employees State Insurance [Total amount charged to the Statement of Profit and Loss for the year ''3.53 lakhs ( Previous year 2020-21 ''4.13 lakhs)]

Contribution to these schemes are made by the company as required as per the statute.

41. The Company has assessed the impact of the Supreme Court Judgment in case of "Vivekananda Vidyamandir And Others Vs The Regional Provident Fund Commissioner (II) West Bengal" and the related circular (Circular No. C-I/1(33)2019/Vivekananda Vidya Mandir/284) dated March 20, 2019 issued by the Employees'' Provident Fund Organisation in relation to non-exclusion of certain allowances from the definition of "basic wages" of the relevant employees for the purposes of determining contribution to provident fund under the Employees'' Provident Funds & Miscellaneous Provisions Act, 1952. In the assessment of the management (including considering a view from legal expert, inspections by PF authorities), the aforesaid matter is not likely to have a significant impact and accordingly, no provision has been made in these Financial Statements.

Notes:

1. * State Bank of India, HDFC Bank Limited, DBS Bank Limited, IndusInd Bank Limited and ICICI Bank Limited are represented as Working Capital Lenders 1

2. ** Kotak Bank Limited and Federal Bank Limited are represented as Working Capital Lenders 2

3. State Bank of India - Hypothecation first charge over inventory and receivables and other current assets on pari-passu basis with other working capital lenders of the Company under Multiple Banking Arrangement subject to sharing of pari-passu sharing letters by such Banks.

HDFC Bank Limited - Secured by way of hypothecation via creation of first charge on Raw Material, Stock-in-process, Finished Goods, spares, stores, consumables, receivables and other current assets of the Company both present and future on pari passu basis with other working capital lenders.

DBS Bank Limited - 1st Pari passu charge on the current assets of Kharagpur unit and 2nd Pari passu charge on moveable fixed assets of Kharagpur Unit.

Indusind Bank Limited - First hypothecation charge on the entire current assets of the company belonging to the Kharagpur unit on pari-passu with other banks. Second charge on the movable fixed assets pertaining to the Kharagpur unit of TML on pari-passu with other banks.

ICICI Bank Limited - First pari passu charge on book debts, stock and other current assets of the borrower. Second pari passu charge by way of hypothecation of movable plant and machinery of Kharagpur unit of the Borrower located at Samraipur, Gokulpur, Kharagpur, Pin- 721301, West Bengal.

Kotak Bank Limited - First Pari Passu charge on current assets both present and future of the company''s kharagpur unit, along with other lenders in multiple banking arrangement and Second Pari Passu Charge on movable fixed assets of Kharagpur unit, along with other lenders in multiple banking arrangement.

Federal Bank Limited - Pari-passu 1st charge on current assets with 25% margin on stock and book debts (upto 180days). Documents of goods exported/ usance bills evidencing export against LC/ confirmed order. Margin- NIL Extension of charge on current assets. Cash Margin- NIL Bills backed by LCs.

4. The Company has filed the revised quarterly returns or statements with such banks for above instances, in April 2022, with the correct amounts, which are in agreement with the books of account.

The returns for the quarter ended March 31, 2022, are not yet due, which would be appropriately filed by the Company within the due date.

46. The Company has long-term contracts as at March 31, 2022 for which there were no material foreseeable losses. The Company did not have long term derivative contracts.

47a . No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

47b. No funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

48. The Company has done an assessment to identify Core Investment Company (CIC) [ including CIC''s in the Group ] as per the necessary guidelines of Reserve Bank of India ( including Core Investment Companies (Reserve Bank) Directions, 2016). The Companies identified as CIC''s at Group level are Panatone Finvest Limited , TATA Capital Limited, TATA Industries Limited , TATA Sons Private Limited ,TMF Holdings Limited and T S Investments.

49. The Company has not made any investments during the year other than in a Company. The Company has not granted secured/ unsecured loans/ advances in the nature of loans to any Company/Firm/Limited Liability Partnership/Other Party during the year other than loan to a Company. The Company did not stand guarantee or provided security to any Company/Firm/Limited Liability Partnership/Other party during the year other than security of certain current assets to eight banks against working capital facilities from banks

50. No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

51. The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

52. The Company has complied with the number of layers prescribed under the Companies Act, 2013.

53. Company have not been declared wilful defaulter by any bank or government or any government authority as applicable.

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

55. Exceptional item represents profit on sale of land (at Redi), which was not in use pursuant to discontinued operation in earlier year.

56. The Board of Directors of the Company in its meeting of November 13, 2020 approved the Scheme of Amalgamation of the Company

with Tata Steel Long Products Limited (TSLPL) seeking to amalgamate and consolidate the business of the Company into and with TSLPL (the ''Scheme''). The Company has submitted the Scheme to Stock Exchanges on November 14, 2020. In respect of the scheme for amalgamation of the Company into Tata Steel Long Products Limited, the Stock Exchanges have requested the Company for additional information on the Scheme and the Company is in the process of appropriately responding to the same.

57. The Company has assessed the possible impact of COVID-19 on its financial statements based on the internal and external information available up to the date of approval of these financial statements and concluded no adjustment is required in these financial statements. The Company continues to monitor the future economic conditions.

58. Previous year figures have been recasted/restated wherever necessary including those as required in line with amendments in Schedule III.

Mar 31, 2018

1. General Corporate Information

Tata Metaliks Limited (âthe Companyâ) is a subsidiary of Tata Steel Limited. The Company is engaged in the manufacture and sale of pig iron and ductile iron pipes. The Company is having its manufacturing plant at Kharagpur in the state of West Bengal. The Companyâs equity shares are listed in BSE Limited and National Stock Exchange Limited.

The financial statements were approved and authorised for issue in accordance with the resolution of the Companyâs Board of Directors on April 26, 2018.

2. Use of estimates and critical accounting judgments

The preparation of the financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions, that impact the application of accounting policies and the reported amounts of assets, liabilities, income, expenses and disclosures of contingent assets and liabilities at the date of these financial statements and the reported amounts of revenues and expenses for the years presented. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed at each Balance Sheet date. Revisions to accounting estimates are recognised in the period in which the estimate is revised and future periods affected. This Note provides an overview of the areas that involved a higher degree of judgement or complexity and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each impacted line item in the financial statements.

The areas involving critical estimates or judgements are

Employee Benefits (Estimation of Defined Benefit Obligation) - Notes 2.8 and 41

Post-employment benefits represent obligations that will be settled in future and require assumptions to estimate benefit obligations. Post-employment benefit accounting is intended to reflect the recognition of benefit costs over the employeesâ approximate service period, based on the terms of the plans and the investment and funding decisions made. The accounting requires the Company to make assumptions regarding variables such as discount rate and salary growth rate. Changes in these key assumptions can have a significant impact on the defined benefit obligations.

Estimation of Expected Useful Lives of Property, Plant and Equipment - Notes 2.4 and 4A

Management reviews its estimate of useful lives of property, plant and equipment at each reporting date, based on the expected utility ofthe assets. Uncertainties in these estimates relate to technical and economic obsolescence that may change the utility of property, plant and equipment.

Contingencies - Notes 2.12 and 28

Legal proceedings covering a range of matters are pending against the Company. Due to the uncertainty inherent in such matters, it is often difficult to predict the final outcome. The cases and claims against the Company often raise factual and legal issues that are subject to uncertainties and complexities, including the facts and circumstances of each particular case/ claim, the jurisdiction and the differences in applicable law. The Company consults with legal counsel and other experts on matters related to specific litigations where considered necessary. The Company accrues a liability when it is determined that an adverse outcome is probable and the amount of the loss can be reasonably estimated. In the event an adverse outcome is possible or an estimate is not determinable, the matter is disclosed.

Valuation of Deferred Tax Assets - Notes 2.9 and 35

Deferred income tax expense is calculated based on the differences between the carrying value of assets and liabilities for financial reporting purposes and their respective tax bases that are considered temporary in nature. Valuation of deferred tax assets is dependent on managementâs assessment of future recoverability of the deferred tax benefit. Expected recoverability may result from expected taxable income in the future, planned transactions or planned optimising measures. Economic conditions may change and lead to a different conclusion regarding recoverability.

Fair Value Measurements - Notes 2.7 and 40

When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be measured based on quoted prices in active markets, their fair values are measured using valuation techniques, including the discounted cash flow model, which involve various judgements and assumptions.

Notes:

1 The fixed assets inclusive of lands have been pledged to secure borrowings of the Company. The assets have been pledged as security for bank loans under a mortgage. See Note no- 14 for details of security pledged for each class of borrowings.

2 Title deeds of immovable properties as setout in note 4A above, where applicable are in the name of the Company

3 The amount of contractual commitments for acquisition of Property, Plant and Equipment refer note 29

(iii) There are no outstanding debts due from directors or other officers of the Company.

(iv) Trade receivable from related parties as on March 31, 2018 amount to Rs.49.68 Lakh, as on March 31, 2017 amount to Rs.11.60 Lakh.

i) Equity Shares

The Company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. 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, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

i) Proposed dividend on equity shares are subject to approval at the annual general meeting and are not recognised as a liability (including DDT thereon) as at March 31, 2018.

The nature of reserves are as follows:

Capital reserve

Reserve includes Rs.8,759.51 Lakh on account of Merger pursuant to the sanction of the Honâble High Court of Calcutta dated November 7, 2016 to the scheme of Amalgamation, where the assets and liabilities of the erstwhile Tata Metaliks DI Pipes Ltd (TMDIPL) has been merged with the Company.

General reserve

3. Dues to Micro, Small and Medium Enterprises

The dues to Micro, Small and Medium Enterprises as required under the Micro, Small and Medium Enterprises Development Act, 2006 to the extent information available with the Company is given below:

The Company had claimed a deduction u/s 80-IA of the Income Tax Act, 1961 amounting to Rs.7,682 Lakh during the AY 2003-04 to AY 2008-09 on its Captive Power Plant. The entire claim amount was allowed by the CIT(Appeals) & ITAT. However, tax department preferred an appeal before the Honâble Calcutta High Court for AY 2003-04 & AY 2004-05 on the ground that no real profit existed in Captive Power generation since same not sold outside i.e. Tata Metaliks has consumed the power.

The Honâble Calcutta High Court vide itâs order dated August 3, 2016 allowed the deduction u/s 80-IA âon the captive power unitâ in favour of the Company, however remanded back to AO on account of transfer price with respect to rate on which such benefit was computed. The Company have filed an appeal in Honâble Supreme Court where vide itâs order dated July 14, 2017, the case has been admitted and High Court order on re-computation of transfer price has been stayed. Final hearing is pending for disposal.

4. Segment Reporting

A. Description of Segments and Principal Activities

The Companyâs Managing Director examines the Companyâs performance on the basis of its business and has identified two reportable segments:

The segments are comprised of Pig Iron and Ductile Iron (DI ) pipes.

Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the Financial Statements. Also, the Companyâs borrowings (including Finance costs), income taxes, investments and derivative instruments are managed at head office and are not allocated to operating segments.

Sales between segments are carried out on cost plus appropriate margin and are eliminated on consolidation. The segment revenue is measured in the same way as in the Statement of Profit and Loss.

5. Disclosure in respect of Long-term Foreign Currency Monetary Items

Foreign exchange translation loss for the year ended on long term-foreign currency loan amounting to â NIL (2016-17: Rs.3.26 Lakh) availed for purchase of capital assets has been capitalised and is included under the applicable fixed assets classification.

The amount of unrecognized tax losses, unabsorbed depreciation and minimum alternate tax credits on which no deferred tax assets has been recognized as at March 31, 2018 is Rs.5,029.76 Lakh (March 31, 2017 : Rs.10,192.27 Lakh) [the expiry periods within next 3 years being Rs.779.70 Lakh (March 31, 2017: Rs.514.98 Lakh), 3 to 5 years being â Nil (March 31, 2017: Rs.340.75 Lakh ) and more than 5 years being Rs.4,250.06 Lakh (March 31, 2017: Rs.9,336.54 Lakh)]. The non-recognition of the same is based on the companyâs best estimate of the future economic benefits and probability of utilization of the temporary differences.

6. Leases:

Finance lease â as lessee

The Company has entered into following finance leases:

(i) Company has entered into agreement with Metaliks Fuel Private Ltd. to construct two coke oven batteries for the purpose of coke conversion.

(ii) Company has voluntarily offered to be a committed user of the facilities for the fixed tenure.

(iii) The agreement is for a period of 10 years.

(iv) The facility is of a specialised nature as the drawings and design of the same is integrated with the power plant.

7. Discontinued Operations:

Based on decision of the Board of Directors of the Company at its meeting held on November 19, 2012 the Company has filed an application with the appropriate authority for closure of the Redi Plant, located at Terekhol Road, District: Sindhudurg, Redi - 416 517, Maharashtra, in accordance with the provisions of the Industrial Disputes Act, 1947. The application was initially rejected by the authority and the Company has filed a review petition before the same authority. In the mean time the Company has negotiated with the employees for settlement and an agreement was signed on March 25, 2013 with the employeesâ union. The Company and the employeesâ union have filed the settlement details with the Commissioner of Labour to facilitate the closure process. The carrying value of Land, current assets and current liabilities of the Redi Plant as at March 31, 2018, were Rs.1,187.91 Lakh (March 31, 2017 Rs.1,187.91 Lakh), Rs.15.87 Lakh (March 31, 2017 Rs.18.70 Lakh) and Rs.27.63 Lakh (March 31, 2017 Rs.22.60 Lakh) respectively.

8. Capital Management

The Companyâs capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term goals of the Company.

The Company determines the amount of capital required on the basis of annual operating plans and long-term product and other strategic investment plans. The funding requirements are met through equity and other long-term/short-term borrowings. The Companyâs policy is aimed at combination of short-term and long-term borrowings.

The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

The Company has no material financial covenants.

9. Financial risk management objectives and policies

The Companyâs principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables, security deposits, employee liabilities, finance lease obligation. The main purpose of these financial liabilities is to finance the Companyâs operations and to provide guarantees to support its operations. The Companyâs principal financial assets include trade and other receivables, and cash and short-term deposits that derive directly from its operations. The Company also enters into derivative transactions.

The Company is exposed to market risk, credit risk and liquidity risk. The Companyâs senior management oversees the management of these risks. The Companyâs senior management is supported by a Risk Management Compliance Board that advises on financial risks and the appropriate financial risk governance framework for the Company. The financial risk committee provides assurance to the Companyâs senior management that the Companyâs financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Companyâs policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist personnelâs that have the appropriate skills, experience and supervision. It is the Companyâs policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

Market risk

The sensitivity analyses in the following sections relate to the position as at March 31, 2018 and March 31, 2017.

The sensitivity analyses have been prepared on the basis that the amount of debt and derivatives.

The following assumptions have been made in calculating the sensitivity analyses:

- The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2018 and March 31, 2017.

- The sensitivity of equity is calculated by considering the effect of any associated derivatives at March 31, 2018 and March 31, 2017 for the effects of the assumed changes of the underlying risk

Interest rate risk

I nterest 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 Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs long-term debt obligations with floating interest rates.

The Company is subject to variable interest rates on some of its interest bearing liabilities. The Companyâs interest rate exposure is mainly related to debt obligations. The Company also uses a mix of interest rate sensitive financial instruments to manage the liquidity and fund requirements for its day to day operations like short term loans.

The risk estimates provided assume a parallel shift of 100 basis points interest rate across all yield curves. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The year end balances are not necessarily representative of the average debt outstanding during the period.

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected, after the impact of derivative instruments. With all other variables held constant, the Companyâs profit before tax is affected through the impact on floating rate borrowings, as follows:

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company, as per its risk management policy, uses foreign exchange and other derivative instruments primarily to hedge foreign exchange exposure. Any weakening of the functional currency may impact the Companyâs cost of imports and cost of borrowings and consequently may increase the cost of financing the Companyâs capital expenditures.

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange rates, with all other variables held constant. The impact on the Companyâs profit before tax is due to changes in the fair value of monetary assets and liabilities. The Companyâs exposure to foreign currency changes for all currencies other than US Dollars is not material.

The movement in the post-tax effect is a result of a change in the fair value of derivative financial instruments not designated in a hedge relationship and monetary assets and liabilities denominated in INR, where the functional currency of the entity is a currency other than INR. Although the derivatives have not been designated in a hedge relationship, they act as an economic hedge and will offset the underlying transactions when they occur.

Credit risk

Customer credit risk is managed by each divisions subject to the Companyâs established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit or other forms of credit insurance.

The companies maximum exposure to credit risk for the components of the Balance Sheet as of March 31, 2018 and March 31, 2017 is the carrying amounts as disclosed in Note 40.

The risk relating to trade receivables is shown under note no 10.

Other Financial Assets

Credit risk from balances with banks, term deposits, loan, investments and derivative instruments is managed by Companyâs finance department. Investment of surplus fund are made only with approved counterparties who meet the minimum threshold requirement. The Company monitors rating, credit spreads and financial strength of its counterparties.

Liquidity risk

The Company has obtained fund and non-fund based working capital lines from various banks. The Companyâs objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank loans, buyerâs credit and other means of borrowings. The Company invests its surplus funds in liquid schemes of mutual funds, which carry no/low mark to market risk.

The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments as at March 31, 2018 and March 31, 2017.

The Company has pledged its receivables in order to fulfil the collateral requirements for secured borrowings and secured working capital limits. At March 31, 2018 and March 31, 2017, the fair values of the receivables pledged were Rs.21,469.03 Lakh and Rs.18,792.01 Lakh respectively.

10. Financial Instruments

(a) Financial assets and liabilities

The carrying value of financial instruments by categories as of March 31, 2018 is as follows:

Fair value hierarchy:

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 consists of the following three levels:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date;

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

Level 3 inputs are unobservable inputs for the asset or liability.

The following table summarises financial assets and liabilities measured at fair value on a recurring basis and financial assets that are not measured at fair value on a recurring basis (but fair value disclosure are required):

Notes

i The other financial assets and liabilities are stated at amortized cost which is approximately equal to their fair value.

ii Derivatives are fair valued using market observable rates and published prices together with forecast cash flow information where applicable.

iii There have been no transfers between level 1 and level 2 for the years ended March 31, 2018 and 2017.

11. Employee benefits

i. Superannuation fund

The Company have a superannuation plan. Separate irrevocable trusts are maintained for employees covered and entitled to benefits. The Company contribute up to 15% or ^100000, whichever is lower, of the eligible employees salary to the trust every year. Such contributions are recognized as an expense when incurred. The Company have no further obligation beyond this contribution. Total amount charged to the Statement of Profit and Loss for the year Rs.195.41 Lakh ( Previous year Rs.178.24 Lakh).

ii. Retiring gratuity

The Company have an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump-sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The Company make annual contributions to gratuity funds established as trusts. Tata Metaliks Limited account for the liability for gratuity benefits payable in the future based on an actuarial valuation. The Company is exposed to actuarial risk and investment risk with respect to this plan.

The following table sets out the the amounts recognized in the financial statements for the retiring gratuity plans in respect of Company.

The above sensitivity analyses are based on 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 obligations 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 obligation recognised in the Balance sheet.

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

iii. Pension Plan - Ex- Managing Director (Mr. Harsh K Jha)

The Company accounts for post-retirement defined benefit arrangements using Ind AS 19âEmployee Benefitsâ, with independent actuaries being used to calculate the costs, assets and liabilities to be recognised in relation to these schemes. The present value of the defined benefit obligation, the current service cost and past service costs are calculated by these actuaries using the projected unit credit method. However, the ongoing funding arrangements of each scheme, in place to meet their long term pension liabilities, are governed by the individual scheme documentation and national legislation. The accounting and disclosure requirements of Ind AS 19 do not affect these funding arrangements.

The following table sets out the disclosure pertaining to pension benefits of Mr Harsh K Jha

The above sensitivity may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

iv. Post retirement medical benefits

Under this unfunded scheme, employees of the Company receive medical benefits subject to certain limits on amounts of benefits, periods after retirement and types of benefits, depending on their grade and location at the time of retirement. Separated from the Company as part of an Early Separation Scheme, on medical grounds or due to permanent disablement are also covered under the scheme. The Company account for the liability for post-retirement medical scheme based on an actuarial valuation.

v) Providend Fund

Contributions towards provident funds are recognised as expense for the year. The Company has set up a Provident Fund Trust which is administered by Trustees. Both the employees and the Company make monthly contributions to the Fund at specified percentage of the employeeâs salary and aggregate contributions along with interest thereon are paid to the employees/ nominees at retirement, death or cessation of employment.

The Trust invests funds following a pattern of investments prescribed by the Government. The interest rate payable to the members of the Trust is not lower than the rate of interest declared annually by the Government under The Employeesâ Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, on account of interest is to be made good by the Company.

The Actuary has carried out actuarial valuation of planâs liabilities and interest rate guarantee obligations as at the Balance Sheet date using Projected Unit Credit Method and Deterministic Approach as outlined in the Guidance Not 29 issued by the Institute of Actuaries of India. Based on such valuation, no amount is required to be provided towards future anticipated shortfall with regard to interest rate obligation of the Company as at the Balance Sheet date. Disclosures given hereunder are restricted to the information available as per the Actuaryâs Report.

vi) Others

Others consist of company and employee contribution to:

i. Employees Pension Scheme [Total amount charged to the Statement of Profit and Loss for the year Rs.132.15 Lakh (Previous year 2016-17 Rs.113.02 Lakh)]

ii. Employees State Insurance [Total amount charged to the Statement of Profit and Loss for the year Rs.36.38 Lakh (Previous year 2016-17 Rs.20.27 Lakh)]

Contribution to these schemes are made by the company as required as per the statute.

12. Assets Pledged as Security

The carrying amounts of assets pledge as security/collateral for current and non current borrowings as follows:

# For the purpose of this note, the term â Specified Bank Notes (SBNs) shall have the same meaning as provided in the notification of the Government of India, in the Ministry of Finance, Department of economic Affairs number S.O.3407(E) dated 8th November, 2016.

13. Corporate social responsibility expense

Gross amount required to be spent by the Company during the year 2017-18 was Rs.300.00 Lakh. The details of the amount spent during the year CSR activity as covered under Schedule-VII to the Companies Act, 2013 is given below:

14. Previous yearâs figures have been regrouped/reclassified where necessary to correspond with the current yearâs classification/disclosure.

Mar 31, 2017

1. Discontinued Operations:

Based on decision of the Board of Directors of the Company at its meeting held on November 19, 2012 the Company has filed an application with the appropriate authority for closure of the Redi Plant, located at Terekhol Road, Dist: Sindhudurg, Redi - 416 517, Maharashtra, in accordance with the provisions of the Industrial Disputes Act, 1947. The application was initially rejected by the authority and the company has filed a review petition before the same authority. In the mean time the Company has negotiated with the employees for settlement and an agreement was signed on March 25, 2013 with the employees'' union. The Company and the employees'' union have filed the settlement details with the Commissioner of Labour to facilitate the closure process. The carrying value of plant property and equipment, current assets and current liabilities of the Redi Plant as at March 31, 2017, were Rs. 1,187.91 lakhs (March 31, 2016 Rs. 1,187.91 lakhs), Rs. 18.70 lakhs (March 31, 2016 Rs. 25.37 lakhs) and Rs. 22.60 lakhs (March 31, 2016 Rs. 29.82 lakhs) respectively.

2. Capital Management

The Companyâs capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term goals of the Company.

The Company determines the amount of capital required on the basis of annual operating plans and long-term product and other strategic investment plans. The funding requirements are met through equity and other long-term/short-term borrowings. The Companyâs policy is aimed at combination of short-term and long-term borrowings.

The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

2. Financial risk management objectives and policies

The Companyâs principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables, security deposits, employee liabilities, unpaid and finance lease obligation. The main purpose of these financial liabilities is to finance the Companyâs operations and to provide guarantees to support its operations. The Companyâs principal financial assets include trade and other receivables, and cash and short-term deposits that derive directly from its operations. The Company also enters into derivative transactions.

Market risk

The sensitivity analyses in the following sections relate to the position as at 31 March 2017 and 31 March 2016.

The sensitivity analyses have been prepared on the basis that the amount of debt and derivatives.

The following assumptions have been made in calculating the sensitivity analyses:

- The sensitivity of equity is calculated by considering the effect of any associated derivatives at 31 March 2017 and 31 March 2016 for the effects of the assumed changes of the underlying 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 Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs long-term debt obligations with floating interest rates.

The risk estimates provided assume a parallel shift of 100 basis points interest rate across all yield curves. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company, as per its risk management policy, uses foreign exchange and other derivative instruments primarily to hedge foreign exchange exposure. Any weakening of the functional currency may impact the Companyâs cost of imports and cost of borrowings and consequently may increase the cost of financing the Companyâs capital expenditures.

Foreign currency sensitivity

The movement in the post-tax effect is a result of a change in the fair value of derivative financial instruments not designated in a hedge relationship and monetary assets and liabilities denominated in '', where the functional currency of the entity is a currency other than ''. Although the derivatives have not been designated in a hedge relationship, they act as an economic hedge and will offset the underlying transactions when they occur.

Credit risk

Customer credit risk is managed by each divisions subject to the Company''s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit or other forms of credit insurance.

The risk relating to trade receivables is shown under note no 10.

Liquidity risk

The Company has obtained fund and non-fund based working capital lines from various banks. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank loans, buyer''s credit and other means of borrowings. The company invests its surplus funds in liquid schemes of mutual funds, which carry no/low mark to market risk.

Fair value hierarchy:

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 consists of the following three levels:

- Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date;

- Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

- Level 3 inputs are unobservable inputs for the asset or liability.

The following table summarizes financial assets and liabilities measured at fair value on a recurring basis and financial assets that are not measured at fair value on a recurring basis (but fair value disclosure are required):

3. The short-term financial assets and liabilities are stated at amortized cost which is approximately equal to their fair value.

4. Derivatives are fair valued using market observable rates and published prices together with forecast cash flow information where applicable.

5. Investments are stated at amortized cost which is approximately equal to their fair value.

6. There have been no transfers between level 1 and level 2 for the years ended March 31, 2017 and 2016.

7. Employee benefits

8. Defined Contribution Plan

The Company participates in a number of defined contribution plans on behalf of relevant personnel. Any expense recognized in relation to these schemes represents the value of contributions payable during the period by them at rates specified by the rules of those plans. The only amounts included in the balance sheet are those relating to the prior monthâs contributions that were not due to be paid until after the end of the reporting period.

The total cost charged to statement of profit and loss in 31 March, 2017 amounted to Rs. 556 lakhs (2016: Rs. 463 lakhs).

The defined contribution plans operated by company and its subsidiaries in India are as below:

9. Provident fund

In accordance with Indian law, eligible employees of Tata Metaliks Limited are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees salary (currently 12% of employees salary). The contributions, as specified under the law, are made to the provident fund and pension fund set up as an irrevocable trust by the company to respective Regional Provident Fund Commissioner and the Central Provident Fund under the State Pension scheme.

10. Superannuation fund

The company have a superannuation plan. Employees who are members of the defined benefit superannuation plan are entitled to benefits depending on the years of service and salary drawn.

Separate irrevocable trusts are maintained for employees covered and entitled to benefits. The company contribute up to 15% or 100000, whichever is lower, of the eligible employees salary to the trust every year. Such contributions are recognized as an expense when incurred. The company have no further obligation beyond this contribution.

11. Others

Others consist of company and employee contribution to:

12. Employees Pension Scheme

13. Employees State Insurance

14. Defined benefit plans

15. Retiring gratuity

The company have an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump-sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The company make annual contributions to gratuity funds established as trusts . Tata Metaliks Limited account for the liability for gratuity benefits payable in the future based on an actuarial valuation. The Company is exposed to actuarial risk and investment risk with respect to this plan. The following table sets out the amounts recognized in the financial statements for the retiring gratuity plans in respect of company.

The weighted average duration of the defined benefit obligation as at March 31, 2017 is 15 years (2016: 16 years)

The Company expects to contribute Rs. 475 lakhs to the funded retiring gratuity plans in financial year 2018.

The fair value of Company''s plan asset as of March 31, 2016 and 2015 by category are as follows:

16. Pension Plan - Ex- Managing Director (Mr. Harsh K Jha)

Tata Metaliks Limited accounts for post-retirement defined benefit arrangements using Ind AS 19 âEmployee Benefitsâ, with independent actuaries being used to calculate the costs, assets and liabilities to be recognized in relation to these schemes. The present value of the defined benefit obligation, the current service cost and past service costs are calculated by these actuaries using the projected unit credit method. However, the ongoing funding arrangements of each scheme, in place to meet their long term pension liabilities, are governed by the individual scheme documentation and national legislation. The accounting and disclosure requirements of Ind AS 19 do not affect these funding arrangements.

17. Post retirement medical benefits

Under this unfunded scheme, employees of the company receive medical benefits subject to certain limits on amounts of benefits, periods after retirement and types of benefits, depending on their grade and location at the time of retirement. Separated from the Company as part of an Early Separation Scheme, on medical grounds or due to permanent disablement are also covered under the scheme. The company account for the liability for postretirement medical scheme based on an actuarial valuation.

Notes to the reconciliations

18. Under previous GAAP, redeemable preference share were classified as part of total equity. Dividend paid on these preference shares were adjusted against retained earnings and not recognized as finance costs in profit and loss account. However under Ind AS, financial instruments are classified as a liability or equity according to the substance of the contractual arrangement and not its legal form. These preference share do not contain any equity component and hence, have been classified in their entirety as financial liability under Ind AS. The resultant dividend have been recognized as finance cost in profit & loss.

19. Under previous GAAP, transaction costs incurred in connection with borrowings are charged upfront to Statement of Profit and Loss for the period/year. Under Ind AS, transaction costs are included in the initial recognition amount of financial liability and charged to Statement of Profit and Loss using effective interest method.

20. Under previous GAAP, the Company is required to mark to market valuation for outstanding derivatives as on reporting date. Under existing GAAP, only mark to market losses are required to be recognized and the mark to market gains are ignored. Under Ind-AS, as on transition date, the Company has done the mark to market valuation for all outstating derivative contracts and recognized the fair value loss in the statement of profit and loss.

21. Under previous GAAP, actuarial gains and losses were recognized in profit or loss. Under Ind AS, the actuarial gains and losses form part of re measurement of the net defined benefit liability which is recognized in other comprehensive income. Consequently, the tax effect of the same has also been recognized in other comprehensive income under Ind AS instead of profit or loss.

22. Under previous GAAP, proposed dividends including DDT are recognized as a liability in the period to which they relate, irrespective of when they are declared. Under Ind AS, a proposed dividend is recognized as a liability in the period in which it is declared by the company (usually when approved by shareholders in a general meeting) or paid. In case of the Company, the liability relating to proposed dividend (including dividend distribution tax) has been derecognized against retained earnings as at 1 April 2015. The proposed dividend for the year ended on March 31, 2016 has been recognized under Indian GAAP, has been reduced from short term provisions and with a corresponding impact in the retained earnings.

23. The Committee of Board of Directors of the Company in their meeting held on 17 May 2016 has approved withdrawal of merger proposal with the parent company i.e., Tata Steel Limited and decided to file a fresh merger proposal with Tata Metaliks DI Pipes Ltd (TMDIPL) (wholly owned subsidiary company). The company have already received the requisite clearance from Securities and Exchange Board of India (SEBI). TMDIPL being the transferor company has filed requisite application with Honâble High Court, Calcutta on 1 September 2016 pursuant to section 391 to 394 of the Companies Act 1956. The filing of a separate application and petition by Tata Metaliks Limited, the transferee company is dispensed with vide order dated 19 September 2016 by Honâble High Court, Calcutta.

Pursuant to the sanction of the Honâble High Court of Calcutta dated 7 November 2016 to the scheme of Amalgamation, the assets and liabilities of the erstwhile Tata Metaliks DI Pipes Ltd (TMDIPL) whose principal business was of carrying of business of manufacturing Ductile Iron Pipe has been merged with the company. Consequent to the Order and subsequent approval of SEBI and the filing of the final certified order with Registrar of the Companies, Kolkata, the scheme has become effective on December 22, 2016 with effect from the appointed date of April 01, 2016. As this is a common control transaction, the amalgamation has been accounted using the âpooling of interestâ method and figures for the previous period have been recast as if the amalgamation had occurred from the beginning of the preceding period in accordance with the requirements of Appendix C of Ind AS 103 on Business Combinations. Accordingly, the assets, liabilities and reserves of the erstwhile TMDIPL as on the appointed date have been merged with the Company at their book values. The net impact of the merger on assets, liabilities and reserves as on the appointed date is given below.

24. Corporate social responsibly expense

Gross amount required to be spent by the company during the year 2016-17 was Rs. 204.69 lakhs. The details of the amount spent during the year CSR activity as covered under Schedule-VII to the Companies Act, 2013 is given below:

The company have already transferred the proposed Karnataka project in favour of Tata Steel during 2013. The company had paid Rs. 3,664.98 lakhs to Karnataka Industrial Area Development Board (KIADB) as advance for land for Karnataka project. Consequent to the withdrawal of merger with Tata Steel they said capital advance now been transferred to Tata Steel Ltd. The said Rs. 3,664.98 lakhs was funded by TSL in form of ICD of Rs. 2,200.00 lakhs and interest free advance of Rs. 1,465.98 lakhs which has been squared off with the capital advance.

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

Mar 31, 2016

Rights, preferences and restrictions attached to shares

i) Equity shares

The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. 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, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

ii) Non-cumulative redeemable preference shares

Non-cumulative redeemable preference shares having a par value of Rs. 100 carries a fixed rate of dividend of 8.5%. The dividends proposed by the Board of Directors are subject to approval of the shareholders in the ensuing Annual General meeting. The dividends are not accumulated in case it is not approved by the Annual General Meeting. The preference shares are redeemable at par value after a period for 36 months from the date of allotment which was falling due in March 2015. The Board of Directors of Tata Steel Limited at its meeting held on February 06, 2015 have approved the extention of the period of redemption by a further period of 3 years with effect from April 01, 2015. In case of liquidation the preference shareholders will have preference over the equity shareholders over the distribution of remaining assets of the Company.

1. Segment reporting

The Company has identified the business segment as its primary segment. The Company is engaged in production and sale of Pig Iron and hence Pig Iron is the only reportable business segment in accordance with Accounting Standard 17 - Segment Reporting. The Company is operating only within India and hence India is the only geographical segment.

Additional information:

1. The estimate of future salary increases take into account inflation, seniority, promotion and other relevant factors.

2. Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of the obligations.

3. 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 the obligation

4. In the absence of detailed information regarding plan assets which is funded with Life Insurance Corporation of India, the composition of each major category of plan assets, the percentage or amount for each category to the fair value of plan assets has not been disclosed.

5. Net laibilities for pension, post retirement medical benefits and gratuities are disclosed in Note 6 under the heading Post-employment defined benefits.

6. Expenses relating to pension and post retirement medical benefits are included under the heading salaries and wages including bonus in Note 22(a) whereas expenses for retiring gratuities are included under the contribution to provident and other funds in Note 22(b).

2. Discontinuing operations

Based on decision of the Board of Directors of the Company at its meeting held on November 19, 2012 the Company has filed an application with the appropriate authority for closure of the Redi Plant, located at Terekhol Road, Dist: Sindhudurg, Redi - 416 517, Maharashtra, in accordance with the provisions of the Industrial Disputes Act, 1947. The application was initially rejected by the authority and the company has filed a review petition before the same authority. In the mean time the Company has negotiated with the employees for settlement and an agreement was signed on March 25, 2013 with the employees'' union. The Company and the employees'' union have filed the settlement details with the Commissioner of Labour to facilitate the closure process. The carrying value of fixed assets, current assets and current liabilities of the Redi Plant as at March 31, 2016, were Rs. 1,187.91 lacs (March 31, 2015 Rs. 1,188.16 lacs), Rs. 25.37 lacs (March 31, 2015 Rs. 42.33 lacs) and Rs. 29.82 lacs (March 31, 2015 Rs. 72.62 lacs) respectively.

3. Leases

Operating lease arrangement as lessee

The Company has entered into a non-cancellable operating lease in respect of vehicles and the lease rental expenses recognised for the year is Rs. 7.84 lacs (previous year: Rs. 13.75 lacs) The lease agreement provides for an option to the Com- pany to renew the lease period at the end of the non-cancellable period. There are no exceptional/ restrictive covenants in the lease agreements.

E6J The Board of Directors of the Company in their meeting held on 10 April, 2013 has approved a scheme of merger with the parent company, Tata Steel Limited with an appointed date of 1 April, 2013. The said application of merger was made to Hon''ble High Court, Calcutta on 13 December, 2013. Accordingly, the Company as per the directions of the Court has taken the approval of its shareholder on 25 March, 2014 and also made an application to Regional Director (RD), Eastern Region (Ministry of Corporate Affairs, Central Govt.) on 9 May, 2014. An affidavit confirming "No Objection" to the scheme of merger was submitted from Regional Director to the High Court in July, 2014. Next hearing date is awaited.

The said scheme would be effective subject to the approval from the Hon"ble High Court of Judicature at Calcutta and Bombay.

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

Mar 31, 2015

1. General Corporate Information

Tata Metaliks Limited ("the Company") is a subsidiary of Tata Steel Limited, engaged in the manufacture of foundry grade pig iron. The Company is having its manufacturing plants at Kharagpur in the state of West Bengal.

Rights, preferences and restrictions attached to shares

i) Equity Shares

The Company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. 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, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

ii) Non-cumulative Redeemable Preference Shares

Non-cumulative redeemable preference shares having a par value of Rs. 100 carries a fixed rate of dividend of 8.5%. The dividends proposed by the Board of Directors are subject to approval of the ensuing Annual General meeting. The dividends are not accumulated in case it is not approved by the Annual General Meeting. The preference shares are redeemable at par value after a period for 36 months from the date of allotment which is falling due in March 2015. The Board of Directors of Tata Steel Limited at its meeting held on 06 February, 2015 has approved the extention of the period of redemption by a further period of 3 years with effect from 01 April, 2015. In case of liquidation the preference shareholders will have preference over the equity shareholders over the distribution of remaining assets of the Company.

(Rs in lacs)

2. Contingent Liabilities and other Commitments As at As at 31.03.2015 31.03.2014

A. Contingent Liabilities

(a) Cenvat credit disallowed 7,870.68 7,376.98 (including interest)

(b) Income Tax 134.62 134.62

B. Others

(a) Guarantees given to banks on behalf subsidiary company for term loans 1 & 2 7,408.62 7,099.34 1 Includes a guarantee denominated in US dollar - USD 11,850,000 (31.03.2014 : USD 11,850,000)

2 Loan outstanding against the guarantee as at 31.03.2015 Rs. 1852.16 Lacs (31.03.2014 3194.70 Lacs ) (b) Bill discounted 9,045.60 1,087.77

3. Tata Steel Limited has given undertakings to Sumitomo Mitsui Banking Corporation not to dispose of the management control in Tata Metaliks DI Pipes Limited (Formerly known as Tata Metaliks Kubota Pipes Limited) held through the Company so long as the dues to Sumitomo Mitsui Banking Corporation is subsisting by Tata Metaliks DI Pipes Limited.

4. Due to micro and small enterprises

Based on and to the extent of information obtained from suppliers regarding their status as Micro, Small or Medium enterprises under Micro, Small and Medium Enterprises Development Act, 2006, there are no amounts due to them as at the end of the year.

5. Segment Reporting

The Company has identified the business segment as its primary segment. The Company is engaged in production and sale of Pig Iron and hence Pig Iron is the only reportable business segment in accordance with Accounting Standard 17 - Segment Reporting. The Company is operating only within India and hence India is the only geographical segment.

6. Related Party Transactions Related party relationship :

Name of the related party Nature of Relationship

Tata Steel Limited Holding Company

Tata Metaliks DI Pipes Limited Subsidiary

TM International Logistics Limited

Tata Sponge Iron Limited

TKM Global Logistics Limited Fellow Subsidiary

Tata Steel Global Procurement Pte Limited

Tata Steel Processing and Distribution Limited

Key Managerial Person -

Mr. Sanjiv Paul : Managing Director

Mr. Sankar Bhattacharya : Company Secretary

Mr. Subhra Sengupta : Chief Financial Officer

7. Discontinuing Operations :

Based on decision of the Board of Directors of the Company at its meeting held on 19 November, 2012 the Company has filed an application with the appropriate authority for closure of the Redi Plant, located at Terekhol Road, Dist: Sindhudurg, Redi - 416 517, Maharashtra, in accordance with the provisions of the Industrial Disputes Act, 1947. The application was initially rejected by the authority and the company has filed a review petition before the same authority. In the mean time the Company has negotiated with the employees for settlement and an agreement was signed on 25 March, 2013 with the employees' union. The Company and the employees' union have filed the settlement details with the Commissioner of Labour to facilitate the closure process. The carrying value of fixed assets, current assets and current liabilities of the Redi Plant as at March 31,2015, were Rs.1,188.16 lacs (31.03.2014Rs.1,229.27 lacs), Rs. 42.33 lacs (31.03.2014Rs.125.68 lacs) and Rs. 72.62 lacs (31.03.2014Rs.1,240.99) respectively. The pre-tax loss on sale of fixed asset of the Redi Plant for the year ended March 31,2015, was Rs 2.2 lacs.

8. Operating Lease arrangement as lessee

The Company has entered into a non-cancellable operating lease in respect of vehicles and the lease rental expenses recognised for the year is Rs. 13.75 lacs (previous year : Rs. 14.27 lacs) The lease agreement provides for an option to the Company to renew the lease period at the end of the non-cancellable period. There are no exceptional/ restrictive covenants in the lease agreements.

The total of future minimum lease payments under non-cancellable operating lease as at 31.03.15 are as follows :

9. Disclosure as required under AS 29

Provisions for entry tax have been recognised in the financial statements considering the following :

(i) The company has a present obligation as a result of past event

(ii) It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

(iii) A reliable estimate can be made of the amount of the obligation (Rs. in lacs)

Indication of uncertainty about those outflows The Act is ultra vires on the following ground -

a) The levy has been enacted without obtaining the prior sanction of President of India, which is contrary to the proviso to Article 304(b) of the Constitution of India.

b) Entry tax is compensatory in nature i.e. the utilisation should be for the advancement of the state by creation of consolidated fund, which was not reflected in the Act enacted by state.

c) The purpose of enactment of this Act is basically for generating revenue.

TML have obtained stay order by filling writ petition before Calcutta High Court (single Bench) and attached the mat- ter with cases which are pending before Division Bench.

Major assumptions concerning future events The matter is pending before Hon'ble Calcutta High Court for adjudication. On the grounds of prudence, provision is made. Amount of any expected reimbursement, i.e.., amount of Nil any asset that has been recognised for that expected reimbursement

10. The Board of Directors of the Company in their meeting held on 10 April 2013 has approved a scheme of merger with the parent company, Tata Steel Limited with an appointed date of 1 April 2013. The said application of merger was made to Hon'ble High Court, Calcutta on 13 December 2013. Accordingly, the Company as per the directions of the Court has taken the approval of its shareholder on 25 March 2014 and also made an application to Regional Director (RD), Eastern Region (Ministry of Corporate Affairs, Central Govt.) on 9 May 2014. An affidavit confirming "No Objection" to the scheme of merger was submitted from Regional Director to the High Court in July 2014. Next hearing date is awaited.

The said scheme would be effective subject to the approval from the Hon'ble High Court of judicature at Calcutta and Bombay.

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

Mar 31, 2014

1. Contingent Liabilities and other Commitments

As at 31.03.2014 As at 31.03.2013

Trade receivable

(a) Cenvat credit disallowed (including interest) 7,376.98 6,883.28

(b) Income Tax 134.62 129.90

(c) Guarantees given to banks on behalf subsidiary company for term 7,099.34 6,523.43 loans 1 & 2

1) Includes a guarantee denominated in US dollar - USD 11,850,000 (31.03.2013 : USD 11,850,000)

2) Loan outstanding against the guarantee as at 31.03.2014 Rs. 3,194.70 Lacs (31.03.2013 : Rs. 4,240.23 Lacs)

(d) Bill discounted 1,087.77 329.79

2. The Company has received a demand notice issued by sales tax department against the sales tax dues of Usha Ispat Limited (erstwhile owner of REDI plant) for Rs. 8,744.21 Lacs (31.03.2013: Rs. 8,744.21 Lacs). The Company has acquired only the assets of Usha Ispat Limited from IDBI SASF under SARFAESI Act and not as the successor of business. Company has filed writ petition before High Court of Bombay against the said demand which is pending for disposal.

3. Tata Steel Limited has given undertakings to Sumitomo Mitsui Banking Corporation not to dispose of the management control in Tata Metaliks DI Pipes Limited (Formerly known as Tata Metaliks Kubota Pipes Limited) held through the Company so long as the dues to Sumitomo Mitsui Banking Corporation is subsisting by Tata Metaliks DI Pipes Limited.

4. Due to micro and small enterprises

Based on and to the extent of information obtained from suppliers regarding their status as Micro, Small or Medium enterprises under Micro, Small and Medium Enterprises Development Act, 2006, there are no amounts due to them as at the end of the year.

5. Segment Reporting

The Company is engaged in production of Pig iron.The Company is managed organisationally as a unified entity and according to the management Pig iron is the only segment as envisaged in Accounting Standard (AS) -17 Segment Reporting.

6. Related Party Transactions

Related party relationship :

Name of the related party Nature of Relationship

Tata Steel Limited Holding Company

Tata Metaliks DI Pipes Limited Subsidiary

TM International Logistics Limited TKM Global Logistics Limited

Tata Steel Resources Australia Pty Limited

- Fellow Subsidiary Tata Steel Global Procurement Pte Limited [

Tata Sponge Iron Limited

Tata Steel Processing and Distribution Limited

Key Managerial Person - Mr. Harsh K. Jha Managing Director (Upto: 31 March 2013)

Key Managerial Person - Mr. D. P. Deshpande Executive Director (Upto: 31 March 2013)

Key Managerial Person - Mr. Sanjiv Paul Managing Director (From: 1 April 2013)

Related Party Transactions Name of the related party

Tata Steel Limited

Nature of transaction

Purchase of raw materials

Sale of goods

Services received

Inter Corporate deposit received/ (repaid)

Interest paid

Advance Received

Name of the related party

Tata Metaliks DI Pipes Limited

TM International Logistics Limited

Tata Steel Resources Australia Pty Limited

Tata Steel Global Procurement Pte Limited

Tata Steel Processing and Distribution Limited

Tata Sponge Iron Limited

TKM Global Logistics Limited Mr. Harsh K. Jha Mr. D. P. Deshpande Mr. Sanjiv Paul

Name of the related party

Tata Steel Limited

Tata Metaliks DI Pipes Limited

TM International Logistics Limited

TKM Global Logistics Limited

Tata Steel Global Procurement Pte Limited

Nature of transaction

Preference Capital Contribution Sale of molten metal and BF gas Purchase of goods Rent received Interest received Expenses reimbursed Services received Expenses reimbursed Recovery of expenses Purchase of goods Expenses reimbursed Purchase of goods Purchase of goods Expenses reimbursed Sale of assets Receiving of Services

Remuneration paid

Nature of outstanding

Trade receivables

Inter Corporate Deposits received

Advance Payable

Trade payables

Interest payable

Trade receivables

Inter Corporate Deposits placed

Advance Receivable

Interest receivable

Advances paid

Trade payables

Trade payables

Trade payables

7. Discontinuing Operations :

Based on decision of the Board of Directors of the Company at its meeting held on November 19, 2012 the Company has filed an application with the appropriate authority for closure of the Redi Plant, located at Terekhol Road, Dist: Sindhudurg, Redi - 416 517, Maharashtra, in accordance with the provisions of the Industrial Disputes Act, 1947. The application was initially rejected by the authority and the company has filed a review petition before the same authority. In the mean time the Company has negotiated with the employees for settlement and an agreement was signed on March 25, 2013 with the employees'' union. The Company and the employees'' union have filed the settlement details with the Commissioner of Labour to facilitate the closure process. Consequent to the closure, the Company has entered into a binding sale agreement with a buyer for sale of its entire Plant and Machinery in dis aggregated form and has received a non-refundable advance of Rs. 2,580 lacs. Pursuant to the sale agreement, the Company has discarded/dismantled its Plant and Machinery and Capital work in progress and recognised the resultant loss of Rs. 2081.41 lacs, disclosed as an exceptional item. The carrying value of fixed assets, current assets and current liabilities of the Redi Plant were Rs. 1,229.27 lacs (31.03.13 Rs. 5,698 lacs) Rs. 125.68 lacs (31.03.13 Rs. 777 Lacs) and Rs. 1,240.99 lacs (31.03.13 Rs. 746 Lacs) respectively.

8. Leases

Operating Lease arrangement as lessee

The Company has entered into a non-cancellable operating lease in respect of vehicles and the lease rental expenses recognised for the year is Rs. 14.27 Lacs (previous year: Rs. 14.53 lacs) The lease agreement provides for an option to the Company to renew the lease period at the end of the non-cancellable period. There are no exceptional/ restrictive covenants in the lease agreements.

9. The Board of Directors of the Company and Committee of Directors of Tata Steel Limited have at their respective meetings held on April 10, 2013, approved a scheme of amalgamation of the Company with Tata Steel Limited with an appointed date of April 1, 2013. The said amalgamation would be effective upon obtaining requisite regulatory approvals/ sanction as may be required.

In terms of the above Scheme, the Company shall from the appointed date upto the effective date, carry on and deemed to have carried on all business and activities and shall hold and stand possessed of all and shall be deemed to hold and stand possessed of all its estates, assets, rights, title, interest, authorities, contracts, investments and strategic decision for and on account of, and in trust for Tata Steel Limited.

10. Previous year''s figures have been regrouped/reclassified where necessary to correspond with the current year''s clasification/disclosure.

Mar 31, 2013

1. General Corporate Information

Tata Metaliks Limited ("the Company") is a subsidiary of Tata Steel Limited, engaged in the manufacture of foundry grade pig iron. The Company is having its manufacturing plants at Kharagpur in the state of West Bengal and at Redi in the State of Maharashtra.

2. Contingent Liabilities

As at 31.03.2013 As at 31.03.2013

(a) Cenvat credit disallowed 6,883.28 6,389.59

(b) Income Tax 129.90

(c) Guarantees given to banks on behalf subsidiary company for term loans * * 6,523.43 8,665.56

1. Includes a guarantee denominated in US dollar - USD 11,850,000 (31.03.2012 : USD 11,850,000)

2. Loan outstanding against the guarantee as at 31.03.2013 Rs. 5,544.91 lacs (31.03.2012 : Rs. 7,740.72 lacs)

(d) Bills discounted 329.79

3. The Company has availed sales tax incentive under Part 1 of the 1993 scheme from the Government of Maharashtra against its investment in BF3 at its plant at Redi. Under the scheme the Company has availed deferred payment facility for Sales tax and made payment at net present value as specified in the scheme. As per scheme the Company has to obtain the approval of Director of Industries for closure of the operations of the plant and also to refund the benefits availed along with interest. The Company is in the process of filing application for the waiver of refund of the benefits availed of Rs. 728.17 lacs.

4. The company has received a demand notice issued by sales tax department against the sales tax dues of Usha Ispat Limited (erstwhile owner of REDI plant) for Rs. 87.44 Cr. The Company has acquired only the assets of Usha Ispat Limited from IDBI SASF under SARFAESI Act and not the successor of business. Company has filed writ petition before High Court of Bombay against the said demand which is pending for disposal.

5. Due to micro and small enterprises

Based on and to the extent of information obtained from suppliers regarding their status as Micro, Small or Medium enterprises under Micro, Small and Medium Enterprises Development Act, 2006, there are no amounts due to them as at the end of the year.

6. Segment Reporting

The Company has identified the business segment as its primary segment. The Company is engaged in production and sale of Pig Iron and hence Pig Iron is the only reportable business segment in accordance with Accounting Standard 17 - Segment Reporting. The Company is operating only within India and hence India is the only geographical segment.

7. Impairments

Board of directors in their meeting held on November 19, 2012 decided to close the operation of the Redi plant and sell the assets at disaggregate mode, i.e., selling the plant and land separately. The company has done an independent valuation of its assets and accordingly recognised the impairment of Rs. 4,500 lacs during the current year and included under exceptional items in Note 27 above.

8. Subsequent Events

(a) The Company has purchased the entire shareholding of Kubota Corporation and Metal One Corporation in its subsidiary Tata Metaliks Kubota Pipes Limited on April 9, 2013. Consequently Tata Metaliks Kubota Pipes Limited has become a wholly owned subsidiary with effect from that date.

(b) The Board of directors at their meeting held on April 10, 2013 approved the scheme of amalgamation of the Company and its subsidiary, Tata Metaliks Kubota Pipes Limited with Tata Steel Limited with an appointed date of April 1, 2013. The Scheme is subject to approval of the High Court judicature of Bombay and Calcutta.

9. Discontinuing Operations :

Based on decision of the Board of Directors of the Company at its meeting held on November 19, 2012 the Company has filed an application with the appropriate authority for closure of the Redi Plant, located at Terekhol Road, Dist: Sindhudurg, Redi - 416 517, Maharashtra, in accordance with the provisions of the Industrial Disputes Act, 1947. The application was initially rejected by the authority and the company has filed a review petition before the same authority. In the mean time the Company has negotiated with the employees for settlement and an agreement was signed on March 25, 2013 with the employees'' union. The Company and the employees'' union have filed the settlement details with the Commissioner of Labour to facilitate the closure process. The Company has provided for Rs. 1,069. 56 lacs which has been included under Note 27 - Exceptional item. The carrying value of fixed assets, current assets and current liabilities of the Redi Plant were Rs. 5,698 lacs, Rs. 262 lacs and Rs. 746 lacs respectively.

10. Consumption of raw materials incudes Rs. Nil (Previous year Rs. 478.52 lacs) and change in stocks include f 18.10 lacs (Previous year: Rs. 63.33 lacs) towards write down of closing inventory of Raw materials and finished goods to net realisable value in accordance with Accounting Standard (AS) - 2 - Valuation of Inventory

11. Leases

Operating Lease arrangement as lessee

The Company has entered into a non-cancellable operating lease in respect of vehicles and the lease rental expenses recognised for the year is Rs. 14.53 lacs (previous year: Rs. 15.90 lacs) The lease agreement provides for an option to the Company to renew the lease period at the end of the non-cancellable period. There are no exceptional/ restrictive covenants in the lease agreements.

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

Mar 31, 2012

1. General Corporate Information

Tata Metaliks Limited ("the Company") is a subsidiary of Tata Steel Limited, engaged in the manufacture of foundry grade pig iron. The Company is having its manufacturing plants at Kharagpur in the state of West Bengal and at Redi in the State of Maharashtra.

1 The Term loan of Rs. Nil (31.03.2011: Rs. 2800.00 lacs) from State Bank of India carried a variable rate of interest at 13% and was secured by equitable mortgage over landed properties of Kharagpur unit of the Company together with all buildings, structures and all plant and machinery thereon, on pari passu first charge basis with other term lenders and by way of hypothecation of moveable plant and machinery, stocks, book debts and other current assets on pari passu second charge basis with other term lenders. The loan has been repaid on November 3, 2011.

2 The corporate loan of Rs. Nil (31.03.2011: Rs. 1400.00 lacs) from State Bank of India carried a variable interest of 13% and was secured by equitable mortgage over landed properties of Kharagpur unit of the Company together with all buildings , structures and all plant and machinery thereon, on pari passu first charge basis with other term lenders and by way of hypothecation of moveable plant and machinery, stocks, book debts and other current assets on pari passu second charge basis with other term lenders. The loan has been repaid on October 13, 2011.

3 The Term loan of Rs. Nil (31.03.2011: Rs. 5500.00 lacs) from Canara Bank carried a variable rate of interest at 13.25% and was secured by equitable mortgage over landed properties of Kharagpur unit of the Company together with all buildings, structures and all plant and machinery thereon, on pari passu first charge basis with other term lenders and by way of hypothecation of moveable plant and machinery, stocks, book debts and other current assets on pari passu second charge basis with other term lenders. The loan has been repaid on October 14, 2011.

4 Working Capital Demand Loans / Short Term Working Capital Loans of Rs. 3000.00 lacs (31.03.2011: Rs. 5000.00 lacs) and Cash Credit ofRs. 1146.98 lacs (31.03.2011: Rs. 2100.34 lacs) from banks are secured by way of hypothecation of moveable plant and machinery, stock, book debts and other current assets on pari passu first charge basis and by way of equitable mortgage over landed properties of Kharagpur unit of the Company together with all buildings, structures and all plant and machinery on pari passu second charge basis.

5 Loan from Holding Company of Rs. 2200.00 lacs (31.03.2011; Rs. 2200.00 lacs) is meant for long term use and will be repaid or converted into long term financial instrument after finalisation of the financing plan for the Kamataka Project or March 31, 2014 whichever is earlier. Short term loan from the Holding Company of Rs. 5000.00 lacs has been taken on October 14, 2011 for three months and has been rolled over for further three months.

6 Buyers' Credit from Banks are repayable at the end of six months from the date of disbursement which are falling due from April 2012.

1. Includes Rs. 350.00 lacs on account of the amount contributed to Konkan Railway Corporation Limited (KRCL) for construction of Railway Siding in which the company has a right of preferential use over others for a period of 10 years. Even though the ownership of the railway siding is vested with KRCL, the amount contributed by the company has been capitalised on the basis of the future economic benefits and amortised over a period of 10 years. The depreciation for the current year includes the amortisation charge Rs. 35.00 lacs (Previous year: Rs. 35.00 lacs).

2. Other than lease hold land all other tangible assets are owned by the Company.

2. Contingent Liabilities

As at 31.03.2012 As at 31.03.2011

(a) Cenvat credit disallowed 6,389.59 5,893.19

(b) Bills discounted 679.54 1,002.07

(c) Guarantees given to banks on behalf of subsidiary company for term loans 1&2 8,665.56 7,859.76

1 Includes a guarantee denominated in US dollar - USD 11,850,000 (31.03.2011: USD 11,850,000)

2 Loan outstanding against the guarantee as at 31.03.2012 Rs. 7740.72 lacs (31.03.2011 : Rs. 7865.68 lacs)

3. Due to micro and small enterprises

Based on and to the extent of information obtained from suppliers regarding their status as Micro, Small or Medium enterprises under Micro, Small and Medium Enterprises Development Act, 2006, there are no amounts due to them as at the end of the year.

4. Segment Reporting

The Company is engaged in production and sale of Pig Iron and hence Pig Iron is the only reportable segment in accordance with Accounting Standard 17 - Segment Reporting.

5. Related Party Transactions

Related party relationship :

Name of the related party Nature of Relationship

Tata Steel Limited Holding Company

Tata Metaliks Kubota Pipes Limited Subsidiary

TM International Logistics Limited :

Tata Steel Resources Australia Pty Limited

Tata Steel Processing and Distribution Limited : L Fe||ow Subsidiaries

International Shipping and Logistics FZE :

TRLKrosaki Refractories Limited (Formerly Tata Refractories Limited> Key Managerial Person - Mr. Harsh K Jha Managing Director

1 Ceased to be subsidiary effective May 31, 2011

Defined Benefit Plans

The Company provided the following employee benefits

Funded : Gratuity

Non Funded : Compensated absence

6. The Board of Directors of the Company in its meeting held on September 27, 2011 had decided to divest its 300,000 Ton pig iron manufacturing facility at Redi in Maharashtra following which, the Company had entered into an agreement for its sale for a consideration of Rs. 180 Crores plus working capital as at the date of sale. However, the transaction could not be consummated by the long stop date i.e., March 28, 2012 consequent upon which the parties decided to terminate the agreement by mutual consent on March 30, 2012. The Board continues to evaluate other strategic options including restarting of the operations of the Redi unit and therefore, continues to be included as part of "continuing operations" of the Company.

7. Consumption of raw materials include Rs. 478.52 lacs and Change in stocks include Rs. 63.33 lacs (Previous year : Rs. 58.81 Lacs ) towards write down of closing inventory of Raw materials and finished goods to net realisable value in accordance with Accounting Standard (AS) - 2 - Valuation of Inventory.

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

Mar 31, 2011

( Rs.in Lac)

1. Contingent Liabilities

31.03.2011 31.03.2010

Contingent Liabilities not provided for

a) Cenvat credit disallowed 5,893.19 10,336.45

b) Customs Duty - 20.08

c) Bills Discounted 1,002.07 -

d) Guarantees given to banks on behalf of subsidiary company for term loans1&2 7,859.76 7,871.61

e) Bank Guarantee 389.87 159.87

f) Letters of Credit 1,648.46 -

1 Includes a guarantee denominated in US dollar - USD 11,850,000 (31.03.2010 : USD 11,850,000)

2 Loan outstanding against the guarantee as at 31.03.2011 Rs. 7865.68 Lac (31.03.2010 : * 7849.00 Lac)

3. Estimated amounts of contracts remaining to be executed on capital account and not provided : Rs.132.19 Lacs (As at 31.3.2010 Rs. 121.95 Lac).

2. Related Party Transaction

a) List of Related Parties and Relationship

Name of the Related Party

i) Tata Steel Limited Holding Company

ii) Tata Metaliks Kubota Limited Subsidiary Company

iii) Tata Refractories Limited

iv) TM International Logistics Limited Fellow Subsidiary

v) International Shipping and Logistics Fze

vi) Tata NYK Shipping Pte Limited

vii) Tata Bluescope Steel Limited

viii) JAMIPOL LimitedAssociate of Holding Company

ix) Key Management Personnel

-Mr. Harsh KJhaManaging Director

3. Employee Benefits

Defined Contribution Plans

The Company has recognised, in the Profit & Loss Account for the current year an amount of Rs. 209.56 lac. (Previous year: Rs. 175.45 lac) expenses under defined contribution plans.

4. The Company is engaged in production and sale of Pig Iron and hence Pig Iron is the only reportable segment in accordance with Accounting Standard 17 - Segment Reporting.

5. Based on and to the extent of information obtained from suppliers regarding their status as Micro, Small or Medium enterprises under Micro, Small and Medium Enterprises Development Act, 2006, there are no amounts due to them as at the end of the year.

6. Derivative Instruments

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations. The use of foreign currency forward contracts is governed by the Company's strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Company's Risk Management Policy. The Company does not use forward contracts for speculative purposes.

7. Raw material consumption includes exchange gain (net) on suppliers' credit Rs. 138.92 lac (Previous year gain of Rs. 347.80 lac) and operation and other expenses includes exchange gain (net) on buyers' credit of Rs. 8.91 lac (Previous year gain of Rs. 21.32 lac).

8. Advances recoverable in cash or kind or for value to be received includes Rs. 800 lac (31.03.2010 Rs. 800 lac) paid as advance to West Bengal Industrial Development Corporation Limited (WBIDC) for purchase of land at Kharagpur for a project, which has been dropped by the Company. WBIDC vide its letter dated 6th July, 2009 has informed the Company that as soon as the land procured for the Company's erstwhile proposed project at Kharagpur would be allotted to a new entrepreneur, the amount deposited by the Company will be refunded. In the opinion of the Company, the said amount is recoverable.

9. Figures for the previous year have been restated/regrouped where necessary to conform with figures for the current year.

Mar 31, 2010

1 Contingent Liabilites

2009-10 2008-09

Rs. Rs.

(a) Other claims of workmen - 716,000.00

(b) Customs demands 2,008,000.00 2,008,000.00

(c) Cenvat credit disallowed including interest and penalty 1,033,644,579.30 696,916,949.00

(d) Guarantee given to a third party on companys business 15,987,000.00 35,702,572.00

(e) The company has given corporate guarantees to the two banks of its subsidiary

2 Minor and Medium scale business entities :

There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2010. The above information regarding micro, small and medium 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.

3 Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. 12,195,524.00 (31.03.2009 : Rs. 11,427,203.50).

4 (a) Information about Primary Business Segments

The company has considered business segment as the primary segment for disclosure. The Company is engaged in the manufacture of pig iron, which in the context of Accounting Standard 17 as notified under the Companies (Accounting Standards) Rules, 2006 is considered as the only business segment.

(b) Information about Secondary Segments :- Geographical

The Company sells its products within India. The conditions prevailing in India being uniform, no separate geographical segment disclosure is considered necessary. The export of pig iron is through export house (Tata International Limited).

5 Related Party Disclosures

(a) List of Related Parties and Relationship

Party Relationship

A. Tata Steel Limited Holding Company

B. Tata Metaliks Kubota Pipes Limited Subsidiary Company

C. Hooghly Met Coke Limited Fellow Subsidiary

D. Tata Refractories Limited Fellow Subsidiary

E. TM International Logistic Limited Fellow Subsidiary

F. Jamipol Ltd. Fellow Subsidiary

G. Tata Blue Scope Ltd. Fellow Subsidiary

H Tata NYK Shipping Pte Ltd. Fellow Subsidiary

I. Key Management Personnel Whole Time Director

Mr Harsh K. Jha - Managing Director

6 Taxation

(a) Provision for Current Tax for the year ended 31st March, 2010 Rs 50,946,147.78 has been made under the provisions of Section 115 JB of the Income - tax Act ,1961 by way of Minimum Alternate Tax i.e., where the estimated normal income-tax payable under the usual tax payable method is less than the prescribed percentage of the adjusted book profits of the Company which is deemed to be the total income of the Company.

7. Accounting Policy on Employee Benefits

(i) Provision for gratuity as on 31.03.2010 has been computed on the basis of actuarial valuation for the year ended 31st March, 2010 provided by Watson

(ii) Disclosures in

(iii) below in respect of DBS have been given to the extent practical and the availability of information.

8. Raw material consumption includes exchange gain (net) on suppliers credit Rs 34,780,750.32 (Year ended 31st March 2009 exchange loss Rs 385,227,707.82 )and Operation and other expenses includes exchange gain (net) on buyers credit Rs. 2,132,031.86 (Year ended 31st March 2009 exchange loss : Rs.89,534,109.10)

9. No Debenture Redemption Reserve (DRR) Rs 150,000,000.00 (2008 - 09 : Rs 37,500,000.00 ) for the year ; cumulative DRR Rs 187,500,000.00 (31.03.2009 : Rs 37,500,000.00 ) has been set up in respect of 12.75% Non Convertible Secured Debentures of the issue price of Rs 450,000,000 (31.03.2009 : Rs 450,000,000) , as required to be set up under Section 117C of the Companies Act ,1956 , in view of the cumulative loss position as at 31st March , 2010. These debentures are redeemable between 7th January, 2012 and 6th January, 2014 at par in three annual instalments in the ratio of 30:30:40. DRR would be set - up in future when there are adequate profits.

10. Advances recoverable in cash or in kind or for value to be received includes Rs 80,000,000.00 (31.03.2009 : Rs 95,000,000.00) advances given in earlier years to West Bengal Industrial Development Corporation Limited (WBIDC) for purchase of land in Kharagpur for a project , which has been dropped by the Company . WBIDC vide its letter dated 6th July , 2009 has informed the Company that as soon as the land procured for the Companys erstwhile proposed project at Kharagpur would be allotted to a new entrepreneur the amount deposited by the Company with WBIDC towards the said procurement will be refunded. In the opinion of the Company, the said amount is considered good of recovery.

11. Figures for the corresponding previous year have been regrouped / recast, wherever necessary, to conform to this years classification.

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