Notes to Accounts of Mideast Integrated Steels Ltd.

Mar 31, 2024

p Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is
probable that an outflow of resources will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their
present value and are determined based on the best estimate required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current
best estimates. Contingent liabilities are disclosed in the Notes.

q Measurement Of Profit Before Depreciation/Amortization, Interest And Tax (PBDIT)

As per Ind AS 1 "Presentation of financial statements", the Company has elected to present PBDIT as a
separate line item on the face of the statement of profit and loss. The Company measures PBDIT on the
basis of profit/loss from continuing operations. In its measurement, the Company does not include
depreciation and amortisation expenses, finance costs and tax expenses.

r Fair Value measurement of financial instruments

The financial assets and liabilities are valued at fair values based on Ind AS 39, 109 and 113.

Note 29 In pursuance to the Judgement dated 2nd August, 2017 of Honorable Supreme Court of India, in the matter of Writ Petition (Civil)
No. 114 of 2014 (Common Cause v/s Union of India & Others), an amount of ^ 924.75 crores has been imposed on the Company
towards ''Compensation'' as determined in the said Judgement which was to be paid by 31^st December 2017, eventhough the
Government Taxes and Royalty was paid on the ores extracted. Since the amount was not paid by the stipulated date, the
Honorable Supreme Court ordered to stop mining operations with effect from 1^st January 2018.

The industry at large has filed application before the Honorable Supreme Court of India challenging the Judgement and which is still
pending. Hence provision has not been made for the same in the books of accounts. Further in the said case Company managed to
get an Order dated 15th January, 2020 from Hon''ble Supreme Court, according to which Company get permission to sell
23,51,027.83 T of iron ore of different grade and sizes and which has been extracted. Further the realization amount from said sale
should be deposited with the State of Odisha towards partial satisfaction of the Compensation demand raised by Demand Notice
dated 02.09.2017. The Company is in process to sell the iron ore and to comply with the norms, it is further to be noted that
Company managed to get an extension of further three months till May, 2023. The Company has deposited with the Government
Rs.362.49 crores including GST till March 2023 and Rs. 415.79 cores including GST till July 2023 under protest towards
Compensation amount.

Note 30 There was arbitration award received in June 2019 for 718 crores. The Company has already appealed to this Award. The appeal has
been admitted in Mumbai High Court. The Company is confident to win the award and hence not making any provision in the books.

Note 31 The company has taken External Commercial Borrowing (ECB) from Banyantree Bank Ltd, Mauritius which became bad due to
default in the repayment of loan and interest thereof. The Silver bank (formerly Banyan Tree Bank ) has filed case before the NCLT
against the MISL. As per the NCLT order dated 31.05.2023, the MISL has agreed to pay the entire claimed amount of Rs. 12.97
crores plus interest and penalty therein.

We have already deposited Rs. 13.61 crores amount in our authorized bank BOI, Mumbai. We have referred the said matter to RBI
regarding the approval for remittance of ECB repayment along with interest and penalty.

As the matter is with RBI we cannot predict the timeline, once we get the approval from the RBI
we will process the repayment. After that total amount payable will crystalised.

Note 32 The company intends to convert unsecured loans received from Promoters into Equity in compliance with the provisions of
Companies Act 2013 and SEBI (ICDR) Regulations 2009 subject to approval of requisite authority.

Note 33 The balances of Debtors, creditors, loans & advances received & given and deposits received & given are subject to confirmations
and reconciliations.

Note 34 The Management has reviewed all the assets and liabilities of the Company. The assets and liabilities of the Company has been
valued at receivable and payable value respectively.

Note 35 The Company had taken External Commercial Borrowing (ECB) from BanyanTree Bank Ltd., Mauritius, and there were disputes
regarding the repayment of the balance amount of the ECB loans to BanyanTree Bank Ltd. BanyanTree Bank Ltd., was acquired /
taken over by the Silver Bank. Silver Bank (formerly known as BanyanTree Bank Ltd.) filed a case before the NCLT against Company
for the repayment of the balance amount of ECB loan along with applicable interest. As per the NCLT order dated 31.05.2023, the
Company has agreed to pay the adjudicated amount of Rs.12,97,00,000/- (Rupees Twelve Crores and Ninety Seven Lakhs only) plus
interest and penalty, if any.

The Company have already deposited with the Authorised Dealer, Bank of India, Santa Cruz West branch, Mumbai, an amount of
Rs.13,61,00,000/- (Rupees Thirteen Crores and Sixty One Lakhs only) for providing for the payment of this liability, if any eventually.
We have already referred / written to RBI relating to the said matter for granting approval for the foreign remittance relating to the
repayment of the ECB loan amount along with interest and penalty, if any.

As the matter is pending with RBI we are unable to predict the timeline for this repayment, if any. Once we get the necessary
approval from the RBI, we will process the repayment of the ECB loan amount along with interest and penalty, if any.

We will provide for the necessary liability / expenses, if any, which maybe over and above the existing liability as reflecting as on
31st March 2023. Since, the Company has made the necessary arrangements / created assets to pay for this liability, if any, it is
mentioned herein as a contingent liability as on 31st March 2023 while the asset for meeting this liability has been created after

Note 36 Other Disclosure Requirement in Schedule III

a) The company does not have any transaction with the companies struck off under SEC 248 of the Companies Act 2013 or section
560 of the Companies Act 1956 during the year ended March 31st 2023 and March 31st 2022.

b) There are no changes regarding charges which have been registered with the Registrar of Companies during the year ended
March 31st 2023.

c) The Company has not invested or traded in cryptocurrency or virtual currency during the year ended March 31, 2023 and March
31, 2022.

c) No proceedings have been initiated on or are pending against the company for holding Benami property under the Prohibition of
Benami Property Transaction Act 1988 (as amended in 2016) (formally the Benami Transactions (Prohibition) Act 1988 (45 of 1988)
and Rules made thereunder during the year ended March 31, 2023, and March 31, 2022.

d) The Company has not been declared a wilful defaulter by any bank or financial institution or government or any government
authorities during the year ended March 31, 2023 and March 31, 2022.

e) The Company has not entered into any scheme of arrangement approved by the competent authority in terms of sections 232 to
237 of the Companies Act 2013 during the year ended March 31, 2023 and March 31, 2022.

f) During the year ended March 31, 2023 and March 31, 2022, the Company has not surrendered or disclosed as income any
transactions not recorded in the books of accounts in the course of tax assessments under the Income Tax Act, 1961 (such as search
or survey or any other relevant provisions of the Income Tax Act 1961).

g) During the year ended March 31, 2023 and March 31, 2022, the Company has not advanced or loaned or invested funds (either
borrowed funds or the share premium or kind of funds) to any other person or entities, including foreign entities (Intermediaries)
with the understanding (whether recorded in writing or otherwise) that the intermediary shall:

-Directly or indirectly Lend or Invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Company (ultimate beneficiaries) or

-Provide any guarantee, security or the like To or on behalf of the ultimate beneficiaries.

h) During the year ended March 31, 2024 and March 31, 2023 the company has not received any funds from any persons or entities
including foreign entities (Funding party) with the understanding (whether recorded in writing or otherwise) that the company shall

-Directly or indirectly Lend or Invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Company (ultimate beneficiaries) or

-Provide any guarantee, security or the like To or on behalf of the ultimate beneficiaries.

i) The tiltle deeds in respect to immovable properties are in the name of the company.

Note 38 Previous year figures have been regrouped/recast wherever considered necessary to make them comparable with those for the
current year and such figure are reflected in INR million, unless otherwise stated.

For Ashok Shyam & Associates For and on behalf of the Board of Directors

Chartered Accountants
ICAI Reg No. 011223N

Ashok Gupta Shipra Singh Rana Dushyant Kumar Singh

Partner Director Director

M. No. 089858 DIN 00137209 DIN 00091193

UDIN: 24089858BKBIXF3863

Place : New Delhi Priyanka Chugh

Date : 30/07/2024_Company Secretary_

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Mar 31, 2018

Note 1 Corporate Information

Mideast Integrated Steel Ltd, “The Company” is domiciled in India and was incorporated under the provisions of The Companies Act,1956. The Company is having its Registered Office in New Delhi with iron ore mining at Barbil and manufacturing unit at Jajpur, Odisha.

On 31st March 2015, the Company has acquired 181,029,798 (99.28%) Equity Shares and 30,000,000 of 10% Cumulative Redemable Preference Shares of M/s. Maithan Ispat Ltd and thus became Holding Company. During the year, the Company has further acquired 2,25,00,000 Equity Shares and thus holds 32,38,26,010 (99.60%) equity shares as on 31st March, 2018.

The Company is primarily engaged in extraction of iron ore and production of pig iron. As a part of backward integration, the Company has Sinter production facilities and a gas based power plant.

* Out of which 15,43,45,526 (PY-12,17,53,001) equity shares have been pledeged with the lenders of Maithan Ispat Limited. And balance of 1,14,75,000 equity shares would be pledged, totalling to 16,58,20,526 being the 51% of equity shares to be pledged as per agreement.

C) Right, preferences and restrictions attached to shares Equity Shares

The company has one class of equity shares having par value of Rs. 10 each, rank pari passu in all respects including voting rights and entitlement to dividend.

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

The Company has not received intimation from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Consequently the amount paid/payable to these parties is NIL.

2.2 Disclosure as per Regulation 34 of SEBI (LODR) Regulations, 2015

There are no loans and advances in the nature of loans given to subsidiaries, associates and others and investment in shares of the Company by such parties.

2.3 Details on unhedged foreign currency exposures

The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are given below

3.1 Post retirement benefit plans

3.1a Defined contribution plans

The Company makes Provident Fund contribution to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefit. The Company recognised Rs. 18.11 Mn (PY - Rs. 16.87 Mn) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to the plan by the Company is at rate specified in the rules of the scheme.

3.1b Defined benefit plans

The The Company’s post retirement defined benefit plans include Gratuity which is unfunded. The following table sets out the provision for gratuity amount recognised in the financial statements

3.2 Segment information

The Company’s business activity primariliy falls within a single business segment i.e, Iron and Steel business __and hence there are no disclosures to be made under IND AS 108._

Note The company has acquired 2,25,00,000 (Two Crores Twenty Five Lakhs) equity shares having face value of Rs. 10 31 each aggregating to Rs. 225 Mn. The Company is required to pledge 51% of paid up equity share capital of Maithan Ispat Limited, present and future held by the Company, with the lenders of MIL as a security. In compliance of the said requirement company is required to pledge 16,58,20,526 equity shares with the Lenders. At present the company has pledged 15,43,45,526 equity shares with the lenders and balance 1,14,75,000 equity shares would be pledged by the company in the coming financial year.

Note “In pursuance to the Judgement dated 2nd August, 2017 of Honorable Supreme Court of India, in the matter of

4 Writ Petition (Civil) No. 114 of 2014 (Common Cause v/s Union of India & Others), an amount of Rs. 924.75 crores has been imposed on the Company towards ‘Compensation’ as determined in the said Judgement which was to be paid by 31st December 2017, eventhough the Government Taxes and Royalty was paid on the ores extracted. Since the amount was not paid by the stipulated date, the Honorable Supreme Court ordered to stop mining operations with effect from 1st January 2018.

The Company has however filed a ‘Curative petition’ (Civil) before the Honorable Supreme Court of India challenging the Judgement and which is still pending. Hence provision has not been made for the same in the books of accounts.”

5 Note Based on order dated 25th January 2018 passed in the Court of the 2nd Addl. Civil Judge (Sr. Divn.) Bhubaneshwar, with respect to the litigation with Industrial Promotion & Investment Corporation of India (IPICOL), the company has made a further provision of Rs. 76 crores in the books as the amount payable based on this Order.

6 Note The company intends to convert unsecured loans received from Promoters into Equity in compliance with the provisions of Companies Act 2013 and SEBI (ICDR) Regulations 2009 subject to approval of requisite authority.

7 Note The balances of Debtors, creditors, loans & advances received & given and deposits received & given and inter company balances are subject to confirmations and reconciliations.

Note 8 Previous year’s figures

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

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Mar 31, 2012

1.1 Disclosures required under Section 22 of the Micro, Small and Medium EnterprisesXDevelopment Act, 2006

The company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the end of the year together with the interest paid/ payable as required under the Act have not been furnished.

1.2 Disclosure as per Clause 32 of the Listing Agreements with the Stock Exchanges

There are no loans and advances in the nature of loans given to subsidiaries, associates and others and investment in shares of the Company by such parties.

2: Disclosures under Accounting Standards

2.1: Employee benefit plans

2.1 .a: Defined contribution plans

The Company makes Provident Fund contribution to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefit. The Company recognised Rs. 12.26 Mn (Year ended 31 March, 2011 7.00 Mn) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to the plan by the Company is at rate specified in the rules of the scheme.

3. Previous year''s figures

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

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Oct 31, 1997

1. Secured Loans:

i. Term loans from Financial Institutions is secured by equitable mortgage and first charge on all immovable and movable assets, present and future, of the Company, (subject to prior charge on specified movables assets created/to be created in favour of Company's bankers for working capital).

ii. Debentures from Unit Trust of India is secured by way of Equitable mortgage by deposit of title deeds or by extention to cover all immovable and floating charge on all other movable assets of the Company, (subject to prior charges on specified movables created/to be created in favour of Company Bankers for borrowing Working Capital), ranking paripasu with charge created or to be created in favour of participating institutions for their term loan.

iii. INDUSTRIAL PROMOTION AND INVESTMENT CORPORATION OF ORISSA LTD.

a. Debentures referred in above (c) are 30% secured convertible debentures of Rs. 730/- each convertible within 6 months with interest thereon.

b. Debentures are secured by way of creation of second charge in favour of debenture holders by way of hypothecation of whole movable properties of company including plant & machineries and buildings, the charge to be subject to the first charge created in favour of Financial Institutions and ranking paripasu with financiers for working capital.

iv. Working Capital Loan is secured against hypothecation of company's present and future stocks of raw materials, W.I.P., finished goods and Consumables.

Working Capital Loan is further secured by Personal Guarantee of three Promoter Directors.

2. The company is in the process of setting up the project, hence no Profit and Loss Account has been prepared. However, a Statement of Pre-operative Expenses incurred during construction period (pending allocation) has been prepared. The amount of pre-operative expenditure shall be capitalised when commercial production begins. The amount to be capitalised or treated as deferred revenue expenditure will be determined in accordance with the accepted accounting principles.

3. Inventory of Raw Material has been taken, valued and certified by the Management.

4. Capital Work - in Progress includes advance against capital expenditure progress payment towards civil and Structural works of various buildings, un-inspected equipments, technical know-how fee.

5. Interest of Rs. 131.51 lakhs received on funds temporarily deployed by the company has been shown as deduction from interest payment on loans borrowed from Financial Institutions.

6. The Current Accounts pertaining to 14 months commencing from 1st September 1996 (previous period 12 months)

7. No provision for taxation is necessary as the company is under implementation stage.

8. Foreign currency loan

i. The company has been Sanctioned a Foreign Currency Loan from IDBI USD 17 million and being disbursed USD 14907242.43.

ii. The Foreign Currency loan has not been re-instated at the rate prevailing on the date of Balance Sheet. The same will be considered at the time of the Commission of the project by revaluing the Assets.

iii. The Foreign Currency loan if re-instated at the rate prevailing on the date of Balance Sheet, the Liability of secured loan from IDBI will increase by Rs. 450.00 lakhs and accordingly the value of Capital Work In Progress will Increase by Rs. 450.09 lakhs.

9. Balances of some parties account are subject to confirmation.

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Aug 31, 1996

A. The Company is in the process of setting-up of the project, hence no Profit and Loss Account has been prepared. However, a Statement of Pre-Operative Expenses incurred during construction period (pending allocation) has been prepared. The amount of pre-operative expenditure shall be capitalized when Commercial production begin. The amount to be capitalized or treated as Deferred Revenue Expenditure will be determined in accordance with the accepted accounting principles.

B. Additional information in pursuance to Clause II and IV of Part II of Schedule VI of the Companies Act, 1956 (as certified by the Management), on which Auditors have placed their reliance, is as follows:

* The Licence for enhanced capacity of 592000 tonnes has already been applied with Secretriat of Industrial Approvals, Ministry of Industries, Government of India.

3. The money received from Promoters amounting to Rs.4287.95 lacs classified under the head 'Share Application' is subject to increase in the Authorised Share Capital and approval under applicable provisions of the Companies Act, 1956 and other statutes.

4. Inventory of Raw Material has been taken, valued and certified by the Management.

5. An amount of Rs.3071.42 lacs is included in Other Liabilities under Schedule I. It represents interest payable to financial institutions.

9. Capital work-in-progress includes advance against capital expenditure progress payment towards civil and structural works of various buildings, uninspected equipments, technical know-how fee.

10. Interest of Rs.131.51 lacs received on funds temporarily deployed by the Company has been shown as deduction from interest payment on loans borrowed from financial institutions.

11. The Current Accounts pertaining to 12 months commencing from 1st September, 1995 (previous period 18 months).

12. The Company has alloted 18,75,000 non-convertible secured redeemable debentures of face value of Rs.18.75 crores to UTI on 20th August, 1995. As per terms of Subscription Agreement, the Company is required to create Debenture Redemption Reserve. The same will be created once the Company comes into operations and has allocable surplus.

13. No provision for taxation is necessary as the Company is under implementation stage.

14. Previous figures have been re-grouped and re-arranged wherever necessary.

15. Balances of some parties are subject to confirmation.

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Aug 31, 1995

The Company is in the process of setting up the project, hence no Profit and Loss Account has been prepared. However, a Statement of Preoperative Expenses incurred during construction period (pending allocation) has been prepared. The amount of pre-operative expenditure shall be capitalised when commercial production begins. The amount to be capitalised or treated as deferred revenue expenditure will be determined in accordance with the accepted accounting principles.

7. Capital work-in-progress includes advance against capital expenditure and payment towards technical know-how and training fees.

8. Interest of Rs. 100.62 lakhs received on funds temporarily deployed by the company has been shown as deduction from interest payment on loan borrowed from financial institutions.

9. The current accounts pertain to a period of 18 months commencing from March, 1994 (previous period 11 months).

10. The company has allotted 18,75,000 non convertible debentures of face value of Rs. 18.75 crores to UTI on 20th August, 1995. As per terms of the Subscription Agreement, the company is required to create Debenture Redemption Reserve. The same will be created once the company comes into operations and has allocable surplus.