Notes to Accounts of MSTC Ltd.

Mar 31, 2025

1.C.13 PROVISIONS, CONTINGENT LIABILITIES AND
CONTINGENT ASSETS

Provisions are recognised in the Balance Sheet when the
Company has a present obligation (legal or
constructive) as a result of a past event, which is
expected to result in an outflow of resources embodying
economic benefits which can be reliably estimated. Each
provision is based on the best estimate of the
expenditure required to settle the present obligation at
the Balance Sheet date. When appropriate, provisions
are measured on a discounted basis.

Constructive obligation is an obligation that derives from
an entity''s actions whereby an established pattern of
past practice, published policies or a sufficiently specific
current statement, the entity has indicated to other
parties that it will accept certain responsibilities; and as a
result, the entity has created a valid expectation on the
part of those other parties that it will discharge those
responsibilities.

Contingent liabilities are disclosed by way of notes. These
are reviewed at each Balance Sheet date and are
adjusted to reflect the current estimate of management.

Contingent assets are not recognised but disclosed in
the financial statements when an inflow of economic
benefits is probable.

1.C.14 SEGMENT REPORTING

Ind AS 108 establishes standards for the way that public
business enterprises report information about operating
segments and related disclosures. The Company

undertakes trading activities, and also acts as e-
commerce service provider. Based on the ''management
approach'' as defined in Ind AS 108, the Chief Operating
Decision Maker (CODM) evaluates Company''s
performance and allocates resources on an analysis of
various performance indicators by operating segments.
In terms of above the Company has identified Marketing
and e-Commerce as its two Primary Reportable Business
Segments. Revenue and identifiable operating expenses
in relation to segments are categorised based on items
that are individually identifiable to that segment. Rest of
the items of revenue and expenses, which cannot be
specifically allocated under specific segments are
separately disclosed as unallocated.

1.C.15 CRITICAL ACCOUNTING ESTIMATES,
ASSUMPTIONS AND JUDGEMENTS

The preparation of the financial statements in conformity
with Ind AS requires management to make judgements,
estimates and assumptions that affect 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 the
financial statements and the results of operations during
the reporting period end. Although these estimates are
based upon management''s best knowledge of current
events and actions, actual results could differ from these
estimates.

Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimates are
revised and in any future periods affected.

The estimates and assumptions that have a significant
risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial
year are discussed in the paragraphs that follow.

(i) Useful economic lives and impairment of other
assets

The estimated useful life of property, plant and
equipment (PPE) and intangible asset is based on a
number of factors including the effects of obsolescence,
usage of the asset and other economic factors (such as
known technological advances).

The Company reviews the useful life of PPE and
intangibles at the end of each reporting date and any
changes could affect the depreciation rates
prospectively.

The Company also reviews its property, plant and
equipment for possible impairment if there are events or
changes in circumstances that indicate that the carrying

value of the assets may not be recoverable. In assessing
the property, plant and equipment for impairment,
factors leading to significant reduction in profits, such as
the Company''s business plans and changes in
regulatory environment are taken into consideration.

(ii) Contingencies and commitments

In the normal course of business, contingent liabilities
may arise from litigation, taxation and other claims
against the Company. Where an outflow of funds is
believed to be probable and a reliable estimate of the
outcome of the dispute can be made based on
management''s assessment of specific circumstances of
each dispute and relevant external advice,
management provides for its best estimate of the
liability. Such liabilities are disclosed in the notes but are
not provided for in the financial statements.

Although there can be no assurance regarding the final
outcome of the legal proceedings, the Company does
not expect them to have a materially adverse impact on
the Company''s financial position or profitability.

(iii) Actuarial Valuation

The determination of Company''s liability towards
defined benefit obligation to employees is made through
independent actuarial valuation including
determination of amounts to be recognised in the
Statement of Profit and Loss and in other comprehensive
income. Such valuation depend on assumptions
determined after taking into account inflation, seniority,
promotion and other relevant factors such as supply and
demand factors in the employment market.

(iv) Fair Value measurements and valuation processes

Some of the Company''s assets and liabilities are
measured at fair value for financial reporting purposes. In
estimating the fair value of an asset or a liability, the
Company uses market-observable data to the extent it is
available. Where Level 1 inputs are not available, the

Company engages third party valuers, where required, to
perform the valuation. Information about the valuation
techniques and inputs used in determining the fair value
of various assets and liabilities are disclosed in the notes
to the financial statements.

(v) Recognition of deferred tax assets for carried
forward tax losses and unused tax credit

The extent to which deferred tax assets can be
recognised is based on an assessment of the probability
of the Company''s future taxable income against which
the deferred tax assets can be utilised. In addition
significant judgement is required in assessing the impact
of any legal or economic limits.

1.C.16 Restatement of material error / omissions:

Errors/omissions discovered in the current year relating
to prior periods are treated as immaterial and adjusted
during the current year, if all such errors and omissions in
each case does not exceed the overall material limit
specified in MSTC policy for determination of materiality
of events or information in terms of SEBI LODR Regulations
i.e. lower of the following:

(a) Two percent of turnover, as per the last audited
consolidated financial statements of the Company;

(b) Two percent of net worth, as per the last audited
consolidated financial statements of the Company,
except in case the arithmetic value of the net worth is
negative;

(c) Five percent of the average of absolute value of
profit or loss after tax, as per the last three audited
consolidated financial statements of the Company;

In respect to the above, the average of absolute value of
profit or loss is required to be considered by disregarding
the ''sign'' (positive or negative) that denotes such value
as the said value/figure is required only for determining
the threshold for ''materiality'' of the event and not for any
commercial consideration.

NOTE :

a) During the financial year 2024-25, the Company completed the sale of its wholly owned subsidiary, Ferro Scrap
Nigam Limited (FSNL), to Konoike Transport Co. Ltd. The total sale consideration received was ''32,000.00 lakhs. The
cost of acquisition of FSNL, as recorded in the books, amounted to ''1,581.00 lakhs. In connection with the sale of the
100% equity investment in FSNL, the Company incurred costs amounting to ''249.81 lakhs, which were directly
attributable to the transaction. After accounting for these deductions, the net proceeds from Disposal of
Investment in wholly owned subsidiary amounted to ''30,169.19 lakhs.

b) During F.Y. 2024-25 MSTC Limited have invested ''500 lakhs (Previous Year ''NIL ) towards unquoted equity
contribution in Mahindra MSTC Recycling Private Limited.

c) In terms of impairment testing under Ind AS 36, the recoverable amount of the investment in MMRPL was
determined based on the fair value derived using the Discounted Cash Flow (DCF) method. The fair value of MSTC
Limited''s investment in MMRPL as on 31^st March, 2025, was assessed at ''2,494.00 Lakhs, compared to the carrying
amount of ''3,500.00 Lakhs. Accordingly, an impairment loss of ''1,006.00 Lakhs has been recognized in the
Statement of Profit and Loss.

8.2: The Current Borrowings includes 14,361.97 Lakhs (Previous period ''14,361.97 Lakhs) towards payment made by
Standard Chartered Bank (SCB), after purchase of export bills of MSTC raised on foreign buyers against export of
Gold Jewelleries to the buyers during 2008-09, under a Receivable Purchase Agreement. On non-receipt of the
proceeds from the foreign buyers against the bills, SCB submitted claims with the Insurance Company, who,
however, wrongfully repudiated the claim of SCB. Thereafter, SCB converted the receivables purchased from MSTC
under the Receivables Purchase Agreement into loans/ debts as if owing by MSTC, claimed the amount from MSTC
with interest and filed a case, being the Original Application (oa) in the Debt Recovery Tribunal (DRT), Mumbai in the
year 2012, which MSTC has denied and disputed. Against this petition, an Interim order claiming ''22,251.00 lakhs was
passed by the DRT, Mumbai on 16^th July, 2017, which has been set aside by the Debt Recovery Appellate Tribunal
(DRAT), Mumbai by its order dated 7^th August, 2023. Consequently, the recovery proceedings have since been
dropped. As a result of which MSTC has got refund of ''9,000.00 Lakhs (pre-deposit amount towards hearing of
appeal) along with interest of ''534.03 lakhs. The attached properties have also been released. Other proceedings
challenging the claim of SCB are also pending before various forums including Hon''ble High Court of Bombay, the
Civil Court at Alipore, Kolkata initiated by MSTC both against SCB and the Insurance Company. SCB had also filed a
Summary Suit in late 2012 in the Hon''ble Bombay High Court against ICICI Lombard claiming the same amount
under the Policy from ICICI Lombard on account of the repudiation of the claim of SCB by ICICI Lombard. SCB has
since withdrawn the suit against ICICI Lombard and Hon''ble Bombay High Court has also passed an order dated 17^thJanuary, 2024 to this effect. Aggrieved by the unilateral withdrawal of suit by SCB against ICICI Lombard, MSTC has
filed a counterclaim against SCB in the pending OA at DRT Mumbai. The claim of SCB is contingent upon the
outcome of legal cases. Pending final disposal of all such Court cases where the matters are currently pending,
MSTC has disclosed the amount simultaneously as Borrowings (vide Note No- 18(b)) and as Trade Receivables. The
matter is sub-judice and is contingent in nature, at this juncture.

(#) During the financial year 2024-25, the Company completed the sale of its wholly owned subsidiary, Ferro Scrap
Nigam Limited (FSNL), to Konoike Transport Co. Ltd. The total sale consideration received was ''32,000.00 lakhs. The cost
of acquisition of FSNL, as recorded in the books, amounted to ''1,581.00 lakhs. In connection with the sale of the 100%
equity investment in FSNL, the Company incurred costs amounting to ''249.81 lakhs, which were directly attributable to
the transaction. After accounting for these deductions, the net long-term capital gain arising from the sale amounted
to ''30,169.19 Lakhs.

Pursuant to the introduction of Section 115BAA under the Income Tax Act, 1961, the Company has, during the FY 2023-24,
opted for lower tax regime under the said Section for the financial year ended 31 March, 2024 and onwards resulting in
reduction of Current Tax by ''253.54 Lakhs and additional charge of ''123.06 Lakhs to Other Comprehensive Income for
the FY 2023-24. Consequently, the Company has charged off the Deferred Tax Assets arising due to MAT credit and
restated the Deferred Tax Assets, based on the revised effective tax rate 25.168%, resulting in one time charge of
''3,706.72 Lakhs in the Statement of Profit and Loss, for the year ended 31^st March, 2024.

The tax rate used for the year 2024-25 in the reconciliations above is the corporate tax rate of 25.168% for business
income and 14.625% for Long Term Capital Gain arising from Sale of Wholly owned Subsidiary payable by corporate
entities in India on taxable profits under the new regime of Indian tax law. The tax rate used for the year 2023-24 in the
reconciliations above is the corporate tax rate of 25.168% payable by corporate entities in India on taxable profits under
the new regime of Indian tax law. For Deferred Tax calculation of financial year 2024-25 and 2023-24, income tax rate
considered is 25.168%.

(2) Capital Management

The Company manages its capital to ensure that the Company is able to continue as going concern while
maximising the return to shareholders through the optimisation of the debt and equity balance.The Company
is not subject to any externally imposed capital requirements.

(3) Financial risk management objectives

The Company''s Corporate Treasury function provides services to the business, co-ordinates access to
domestic and international financial markets, monitors and manages the financial risks relating to the
operations of the company . These risks include market risk (like-currency risk, interest rate risk and other price
risk), credit risk and liquidity risk. Compliance with policies and exposure limits is reviewed by the internal
auditors on a continuous basis. The Company does not enter into or trade of financial instruments, including
derivative financial instruments, for speculative purposes.

(a) Market Risk

The Company''s activities exposes it ,primarily to the financial risks of changes in foreign currency exchange
rates. On a case to case basis, the Company enters into Forward foreign exchange contracts to hedge the
exchange rate risk, as and when necessary.

(i) Interest rate risk management:

The company endeavours to convert its loans to MCLR based, hence the rate is firm for a contract period
usually for a year, as and when necessary.

(ii) Foreign Currency risk management

Wherever foreign exchange fluctuations are to be borne by the customers as per agreement with them,
foreign exchange gain/ loss are not recognized in the books of the Company.

(b) Credit risk management

where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company only
transact with entities that are rated by agencies where available and if not available , the company uses
other publicly available financial information and its own past records to rate its major customers. The
Company''s exposure and the credit ratings of its counterparties are monitored and the aggregated value
of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by
counterparty limits that are reviewed and approved by the Senior management committee. Furthermore, in
case of Marketing Segment, the Business is done with backup of Bank Guarantee.

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve
borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the
maturity profiles of financial assets and liablities.

The table below provides details regarding the contractual undiscounted cash obligations of financial
liabilities including estimated interest payments for the period 31^st March, 2025 and as at 31^st March, 2024 .

provide the pension to the employees from the corpus created on account of employees, by way of contribution
from MSTC (The Employer).

Defined Benefits Plans

1. Gratuity :

The Gratuity is payable on service severance in respect of eligible employees. The Gratuity is funded with LIC of
India.The Company contributes in the fund every year as premium on the basis of demand raised by LIC of India.

(a) Executives :

The Gratuity is calculated and paid as per the Payment of Gratuity Act, 1972.

(b) Non- Executives :

The Gratuity is payable as per the Payment of Gratuity Act, 1972 except for:

(i) The Gratuity is calculated at the rate of one month''s wages last drawn by the employee for every
completed years of service in excess of 30 years.

(ii) In case employees who joined before 1^st July, 2014, the Gratuity is payable without any ceiling.

2. Post Retirement Medical Benefit :

The Post Retirement Medical Benefit is a medical benefit to the superannuated employees and their spouse. The
members will be covered through Mediclaim Insurance admitted of the Insurance Company. This is available to
superannuated employees at any hospital under the Mediclaim Insurance Policy. In addition to this expenses
incurred in domicilliary treatment is also reimbusrsed as per prescribed ceiling. The benefits are funded through a
separate trust formed for this purpose.The company provides the corpus for this. Deficit if any is being
compensated by the company.

Notes :

1. Current Ratio has improved due to continuous cash profit earned by the company.

2. MSTC do not have any long- term debt, hence, not applicable.

3. MSTC do not have any long- term debt, hence, not applicable.

4. Return on Equity ratio has increased on account of increase in Net Profit After Tax mainly due to Profit arising out of
sale of wholly owned subsidiary.

5. MSTC do not have any inventory, hence, not applicable.

6. Trade Receivable Turnover Ratio increased due to reduction in Trade Receivables on account of better realisation.

7. There is no change in Trade Payables Turnover Ratio, hence not applicable.

8. Net Capital Turnover Ratio decreased due to reduction in sale of goods and services and increase in working capital.

9. Net Profit Ratio has increased on account of increase in Net Profit After Tax due to sale of wholly owned subsidiary.

10. The Return on Capital Employed Ratio has increased on account of increase in Profit mainly due to Profit arising out
of sale of wholly owned subsidiary.

11. Return on Investment ratio has increased on account of increase in Net Profit After Tax mainly due to Profit arising out
of sale of wholly owned subsidiary.

37 . Expenditure incurred on Corporate Social Responsibility Activities

a) The minimum Gross amount required to be spent by the company during the year is ''479.00 Lakhs (Previous
Year - ''376.00 Lakhs) .

b) In accordance to section 135 of Companies Act 2013, the company has incurred ''480.81 Lakhs (Previous Year -
''377.60 Lakhs), as CSR expenditure.

(d) Above figures are disclosed separately in note no. 27(aa).

38. Balances of Trade Receivables, Trade Payables and Advances includes balances subject to confirmation/
reconciliation and consequential adjustment, if any. Reconciliations are carried out on on-going basis. Provisions,
wherever considered necessary, have been made.

39. The company did not have any unrecorded transactions in the Books of Accounts which have been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

40. The company has not traded or involved in Crypto or Virtual currency during the year.

41. The Board of Directors of the Company adopted the Financial Statements in 332^nd Board Meeting held on 29^th May
2025.

42. The figures for the corresponding previous years have been regrouped/reclassified wherever necessary to make
them comparable.

In terms of our report of even date.

For S. Guha & Associates For and on behalf of Board of Directors

Chartered Accountants

FRN : 322493E ^{Sd/- Sd/-}

(Manobendra Ghoshal) (Subrata Sarkar)

Sd/- Chairman and Managing Director Director (Finance) & CFO

(CA Sourabh Mitra ) DIN : 09762368 DIN : 08290021

Partner

M.No:308743 ^{Sd/- Sd/-}

(Suchit Kumar Barnwal) (Ajay Kumar Rai)

^Place : ^{New Delhi} General Manager Company Secretary

^{Dated : Ma}y ²⁹, ²⁰²⁵ Finance & Accounts M. No. : F5627

Mar 31, 2024

a) Disposal of Leasehold Land represents amortisation of Prepaid Lease Payment.

b) The cost of capitalisation of Corporate Office Building of Company on the date of completion is as approved by Board of Directors, project closure and settlement with the PMC has been done during the FY 2022-23.

c) The Title Deed of the immovable property are held in the name of the Company.

d) All assets, wherever applicable have been duly registered with the Registrar of Companies for the charges.

e) At the time of implementation and adoption of IndAS w.e.f. 1^st April, 2015 in terms of IndAS 101, the Net Block of Assets was considered as Gross Block treating Accumulated Depreciation on that date as âNILâ. Depreciation has been charged since in terms of Companies Act, 2013. Hence, the Accumulated Depreciation represents cumulative figures since 1^st April, 2015 only. Due to this, there are differences in the figure of Gross Block and Accumulated Depreciation between the Fixed Assets schedule as above and Fixed Assets Register. However the Net Block figures are in complete agreement with Fixed assets Register.

f) Freehold Building other than RCC Structure represents Steel Structure.

a) The shareholders of MSTC Limited in an Extra-Ordinary General Meeting dated 22^nd December, 2021 have decided to sell the entire stake in Ferro Scrap Nigam Limited (FSNL). Accordingly, the process for sale has already started.

b) During F.Y. 2023-24 MSTC Limited have invested NIL (PreviousYear ''140.00 Lakhs) towards unquoted equity contribution in Mahindra MSTC Recycling Private Limited.

c) The Board of Directors of MSTC Limited in its 324^thmeeting held on15^th March 2024 has approved the further investment of '' 500 Lakhs in the form of equity in JV company Mahindra MSTC Recycling Private Limited. Till date no cashflow has occurred in this regard.

Pursuant to the introduction of Section 115BAA under the Income Tax Act, 1961, the Company has, during the year, opted for lower tax regime under the said Section for the financial year ended 31^st March, 2024 and onwards resulting in reduction of Current Tax by '' 253.54 Lakhs and additional charge of '' 123.06 Lakhs to Other Comprehensive Income. Consequently, the Company has charged off the Deferred Tax Assets arising due to MAT credit and restated the Deferred Tax Assets, based on the revised effective tax rate 25.168%, resulting in one time charge of '' 3,706.72 Lakhs in the Statement of Profit and Loss, for the year ended 31^st March, 2024.

Due date of Trade Receivables is considered from the date of Bill.

8.2:The Current Borrowings includes ''14,361.97 Lakhs (Previous period ''14,361.97 Lakhs) towards payment made by Standard Chartered Bank (SCB), after purchase of export bills of MSTC raised on foreign buyers against export of Gold Jewelleries to the buyers during 2008-09, under a Receivable Purchase Agreement. On non-receipt of the proceeds from the foreign buyers against the bills, SCB submitted claims with the Insurance Company, who, however, wrongfully repudiated the claim of SCB. Thereafter, SCB converted the receivables purchased from MSTC under the Receivables Purchase Agreement into loans/debts as if owing by MSTC, claimed the amount from MSTC with interest and filed a case, being the Original Application in the Debt Recovery Tribunal (DRT), Mumbai in the year 2012, which MSTC has denied and disputed. Against this petition, an Interim order claiming ''22,251 lakhs was passed by the DRT, Mumbai on 16^th September, 2017 which has been set aside by the Debt Recovery Appellate Tribunal (DRAT), Mumbai by its order dated 7^th August, 2023. Consequently, the recovery proceedings have since been dropped. As a result of which MSTC has got refund of ''9,000.00 Lakhs (pre-deposit amount towards hearing of appeal) along with interest of ''534.03 lakhs. The attached properties have also been released. Other proceedings challenging the claim of SCB are also pending before various forums including Hon''ble High Court of Bombay, the Civil Court at Alipore, Kolkata initiated by MSTC both against SCB and the Insurance Company. SCB had also filed a Summary Suit in late 2012 in the Hon''ble Bombay High Court against ICICI Lombard claiming the same amount under the Policy from ICICI Lombard on account of the repudiation of the claim of SCB by ICICI Lombard. SCB has since withdrawn the suit against ICICI Lombard and Hon''ble Bombay High Court has also passed an order dated 17^th January, 2024 to this effect. The claim of SCB is contingent upon the outcome of the legal cases. Pending final disposal of all such Court cases where the matters are currently pending, MSTC has disclosed the amount simultaneously as Borrowings (vide Note No 18) and as Trade Receivables. The matter is sub-judice and is contingent in nature, at this juncture.

MSTC has initiated all steps including legal action to realise the dues from the above customer. The related cases are pending before adjudicating authorities at various levels.

8.5: Trade Receivables include '' 16,411.42 Lakhs (Previous Year '' 18,692.99 Lakhs), against business done in facilitator mode (net of provision).

8.6: Trade Receivables include '' 5,478.11 Lakhs (Previous Year '' 4,842.18 Lakhs), against E-Commerce business (net of provision).

a) Loan from Indian Overseas Bank (IOB) amounting to '' 138.23 Lakhs : (lying since 19^th September, 2011). This amount represents legal fees paid by the bank in defending their claims to which the Company has lodged its protest with the Bank. MSTC has filed a case in Hon''ble High Court of Calcutta against IOB for '' 3,656.00 Lakhs (which includes '' 2,798.00 Lakhs towards debit of LC value & '' 858.00 Lakhs as debit towards legal expenses).

b) The Current Borrowings includes '' 14,361.97 Lakhs (Previous period '' 14,361.97 Lakhs) towards payment made by Standard Chartered Bank (SCB), after purchase of export bills of MSTC raised on foreign buyers against export of Gold Jewelleries to the buyers during 2008-09, under a Receivable Purchase Agreement. On non-receipt of the proceeds from the foreign buyers against the bills, SCB submitted claims with the Insurance Company, who, however, wrongfully repudiated the claim of SCB. Thereafter, SCB converted the receivables purchased from MSTC under the Receivables Purchase Agreement into loans/ debts as if owing by MSTC, claimed the amount from MSTC with interest and filed a case, being the Original Application in the Debt Recovery Tribunal (DRT), Mumbai in the year 2012, which MSTC has denied and disputed. Against this petition, an Interim order claiming '' 22,251 lakhs was passed by the DRT, Mumbai on 16^th September, 2017, which has been set aside by the Debt Recovery Appellate Tribunal (DRAT), Mumbai by its order dated 7^th August, 2023. Consequently, the recovery proceedings have since been dropped. As a result of which MSTC has got refund of '' 9,000.00 Lakhs (pre-deposit amount towards hearing of appeal) along with interest of '' 534.03 lakhs. The attached properties have also been released. Other proceedings challenging the claim of SCB are also pending before

various forums including Hon''ble High Court of Bombay, the Civil Court at Alipore, Kolkata initiated by MSTC both against SCB and the Insurance Company. SCB had also filed a Summary Suit in late 2012 in the Hon''ble Bombay High Court against ICICI Lombard claiming the same amount under the Policy from ICICI Lombard on account of the repudiation of the claim of SCB by ICICI Lombard. SCB has since withdrawn the suit against ICICI Lombard and Hon''ble Bombay High Court has also passed an order dated 17^th January, 2024 to this effect. The claim of SCB is contingent upon the outcome of the legal cases. Pending final disposal of all such Court cases where the matters are currently pending, MSTC has disclosed the amount simultaneously as Unsecured Borrowings and as Trade Receivables (vide Note No. 8.2). The matter is sub-judice and is contingent in nature, at this juncture.

(a) Due date is from the date of billing and/or from the date of accounting, as the case may be. There is no disputed dues.

(b) Both as at 31^st March, 2024 and as at 31^st March 2023, there is no interest and overdue payment of more than 45 days outstanding to Micro, Small and Medium Enterprises (MSME).

(a) * Includes '' 353.81 Lakhs (Previous Year '' 316.38 Lakhs) towards provision for pension benefit of employees, and '' 2.42 Lakhs (Previous Year '' 940.00 Lakhs) towards wage revision of the employees due from 1^st January 2017.

(b) The wage agreement has been reached for wages for non-executive employees, due for revision w.e.f. 1^st January, 2017. Consequential adjustment in provision for NIL (Previous Year '' 496.00 lakhs) by way of reversal on this account has been made in the Books of Accounts.

(a) During the year, an amount of '' 1,034.13 Lakhs (Previous Year '' 1,137.90 Lakhs) was collected towards E-auction Registration. Out of total collection of current year, an amount of '' 681.67 Lakhs (Previous Year '' 910.32 Lakhs) has been kept in liabilities to be distributed in subsequent four years as per accounting policy, since related registration is valid for life long. Accumulated undistributed balance standing as on 31^st March, 2024 is '' 1,798.98 Lakhs (Previous Year '' 1,709.84 Lakhs). Balances for which registration is valid upto one year is accounted for as income during the current period.

(b) Other Operating Revenues also include Interest from customers '' 1,709.28 Lakhs (Previous Year '' 1,900.43 Lakhs).

The tax rate used for the year 2023-24 in the reconciliations above is the corporate tax rate of 25.168% payable by corporate entities in India on taxable profits under the new regime of Indian tax law. The tax rate used for the year 2022-23 in the reconciliations above is the corporate tax rate of 34.944% payable by corporate entities in India on taxable profits under the old regime of Indian tax law. For Deferred Tax calculation of financial year 2023-24, income tax rate is 25.168%.

33. Disclosures on Financial Instruments

This section gives an overview of the significance of financial instruments for the Company and provides additional information on Balance Sheet items that contain financial instruments. The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognized, in respect of each class of financial asset, financial liability and equity instrument are disclosed in notes to the Standalone Financial Statements.

(1) Categories of Financial Instruments

The following table presents carrying amount and fair value of each category of financial assets and liabilities as at the year end. The Fair value is equivalent to the Carrying value.

(2) Capital Management

The Company manages its capital to ensure that the Company is able to continue as going concern while maximising the return to shareholders through optimisation of the debt and equity balance. The Company is not subject to any externally imposed capital requirements.

(3) Financial Risk Management Objectives

The Company''s Corporate Treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the fianancial risks relating to the operations of the Company. These risks include market risks (like- currency risk, interest rate risk and other price risk), credit risk and liquidity risk. Compliance with policies and exposure limits is reviewed by the internal auditors on a continuous basis. The Company does not enter into or trade of financial instruments, including derivative financial instruments, for speculative purposes.

(a) Market Risk

The Company''s activities exposes it, primarily to the financial risks of changes in foreign currency exchange rates . On a case to case basis, the Company enters into Forward foreign exchange contracts to hedge the exchange rate risk, as and when necessary.

(i) Interest Rate Risk Management

The Company endeavours to convert its loans to MCLR based, hence the rate is firm for a contract period usually for a year, as and when necessary.

(ii) Foreign Currency Risk Management

Whenever foreign exchange fluctuations are to be borne by the customers as per agreement with them, foreign exchange gain/loss are not recognized in the books of the Company.

(b) Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in fianacial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties , where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company only transact with entities that are rated by agencies where available and if not available the company uses other publicly available financial information and its own past records to rate its major customers. The Company''s exposure and the credit ratings of its counterparties are monitored and the aggregated value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the Senior management committee. Furthermore, in case of Marketing Segment, the Business is done with backup of Bank Guarantee.

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liablities.

The table below provides details regarding the contractual undiscounted cash obligations of financial liabilities including estimated interest payments for the period 31^st March 2024 and as at 31^st March 2023.

35. Employee Benefits

Defined Contribution Plans

1. Provident Fund

12% of Basic Pay and Dearness Allowance is contributed to the Provident Fund Trust by the Company.

2. Pension

In terms of Ministry of Steel Directives, Pension Scheme for the employees of MSTC has been formulated, under Defined Contribution Plan. The Company contributes annually to LIC of India/NPS through a Trust. LIC/NPS will provide the pension to the employees from the corpus created on account of employees by way of contribution from MSTC (The Employer).

Defined Benefits Plans

1. Gratuity :

The Gratuity is payable on service severance in respect of eligible employees. The Gratuity is funded with LIC of India. The Company contributes in the fund every year as premium on the basis of demand raised by LIC of India.

(a) Executives:

The Gratuity is calculated and paid as per the Payment of Gratuity Act, 1972.

(b) Non Executives:

The Gratuity is payable as per the Payment of Gratuity Act, 1972 except for:

(i) The Gratuity is calculated at the rate of one month''s wages last drawn by the employee for every completed years of service in excess of 30 years

(ii) In case employees who joined before 1^st July 2014, the Gratuity is payable without any ceiling.

2. Post Retirement Medical Benefit :

The Post Retirement Medical Benefit is a medical benefit to the superannuated employees and their spouse. The members will be covered through Mediclaim Insurance of the Insurance Company. This is available to superannuated employees at any hospital under the Mediclaim Insurance Policy. In addition to this expenses incurred in domiciliary treatment is also reimbursed as per prescribed ceiling. The benefits are funded through a separate trust formed for this purpose. The Company provides the corpus for this. Deficit, if any, is being compensated by the Company.

3.	Risk Management
	Investment Risk	The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. For other defined benefit plans, the discount rate is determined by reference to market yields at the end of the reporting period on high quality corporate bonds when there is a deep market for such bonds; if the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments. Further, the overseas plan has a relatively balanced investment in equity securities, debt instruments and real estates. Due to the long-term nature of the plan liabilities, the board of the overseas Fund considers it appropriate that a reasonable portion of the plan assets should be invested in equity securities and in real estate to leverage the return generated by the fund.
	Interest Risk	A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan''s debt investments.
	Longevity Risk	The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.
	Salary Risk	The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

Notes

1. Current Ratio has improved due to continuous cash profit earned by the company.

2. MSTC do not have any long- term debt, hence, not applicable.

3. MSTC do not have any long- term debt, hence, not applicable.

4. Return on Equity ratio has decreased on account of decrease in Net Profit after Tax (Mainly on account of adjustment in Deferred Tax, Refer Note No.6) and increase in Total Equity.

5. MSTC do not have any inventory, hence, not applicable.

6. Trade Receivable Turnover Ratio increased due to reduction in Trade Receivables on account of better realisation.

7. Trade Payable Turnover Ratio increased due to increase in purchase of goods and services.

8. Net Capital Turnover Ratio decreased due to reduction in sale of goods and services and increase in working capital.

9. Net Profit Ratio has decreased on account of reduction in Net Profit after Tax.

10. The Return on Capital Employed Ratio has decreased due to reduction in Profit.

11. The Return on Investment ratio has decreased on account of reduction in Net Profit after Tax and increase in Total Equity.

(d) Above figures are disclosed separately in note no. 27(aa).

38. Balances of Trade Receivables, Trade Payables and Advances includes balances subject to confirmation/reconciliation and consequential adjustment, if any. Reconciliations are carried out on on-going basis. Provisions, wherever considered necessary, have been made.

39. The shareholders of MSTC Limited in Extra-Ordinary General Meeting dated 22^nd December, 2021 have decided to sold the entire stake in Ferro Scrap Nigam Limited (FSNL). Accordingly the process for sale has already started.

40. The company did not have any unrecorded transactions in the Books of Accounts which have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

41. The company has not traded or involved in Crypto or Virtual currency during the year.

42. The Board of Directors of the Company adopted the Financial Statements in 325^th Board Meeting held on 27^th May, 2024.

43. The Board of Directors of the Company in its 325^th Board Meeting held on 27^th May 2024 has proposed a final dividend of '' 5.00 per share in respect of year ending 31^st March, 2024 @ 50% on equity share capital which is '' 7,040.00 Lakhs as on date. The payment of Dividend is subject to approval of shareholders at Annual General Meeting. If approved it will result in a cash outflow of '' 3,520.00 Lakhs.

44. The figures for the corresponding previous years have been regrouped/reclassified wherever necessary to make them comparable.

In terms of our report of even date

Mar 31, 2023

Notes:

a) Disposal of Leasehold Land represents amortisation of Prepaid Lease Payment.

b) Companies Residential Building & Office Flats at Mumbai and Residential flats at Kolkata are under attachment by an order of DRT, Mumbai.

c) The cost of captalisation of Corporate Office Building of Company on the date of completion is as approved by Board of Directors; project closure and settlement with the PMC has been done during FY 2022-23.

d) TheTitle Deed of the immovable property are held in the name of the Company.

e) All assets, wherever applicable have been duly registered with the Registrar of Companies forthe charges.

f) At the time of implementation and adoption of IndAS w.e.f 1^st April, 2015 in terms of IndAS 101, the Net Block of Assets was considered as Gross Block treating Accumulated Depreciation on that date as "NIL". Depreciation has been charged since in terms of Companies Act, 2013. Hence, the Accumulated Depreciation represents cummulative figures since 1^st April, 2015 only. Due to this, there are differences in the figure of Gross Block and Accumulated Depreciation between the Fixed Assets schedule as above and Fixed Assets Register. However the Net Block figures are in complete agreement with Fixed assets Register.

g) For restatement of addition and depreciation in respect of FY 2021-22. Please referto Note-35 under lndAS-8.

h) Freehold Buildingotherthan RCCStructure represents Steel Structure.

a) During F.Y. 2022-23 MSTC Limited have invested ? 140.00 Lakhs (Previous Year? 600.00 Lakhs) towards unquoted equity contribution in Mahindra MSTC Recycling Private Limited, comprising of 14 Lakhs shares of Face value of ? 10 each ranking pari pasu with the existing investment in similarshares.

b) The shareholders of MSTC Limited in an Extra-Ordinary General Meeting dated 22^nd December 2021 have decided to sell the entire stake in Ferro Scrap Nigam Limited (FSNL). Accordingly the process forsale has a I ready started.

Due date of Trade Receivables is considered from the date of Bill.

8.2: The Current Borrowings include ? 14,361.97 Lakhs (Previous period ? 14,361.97 Lakhs) towards payment made by Standard Chartered Bank (SCB), after purchasing of export bills of MSTC raised on foreign buyers against the export of Gold Jewelries to the buyers during 2008-09, under a Receivable Purchase Agreement. On non-receipt of the proceeds from the foreign buyers against the bills, SCB submitted claims with the Insurance Company, who, however, wrongfully repudiated the claim of SCB. Thereafter, SCB converted the receivables purchased from MSTC under the Receivables Purchase Agreement into loans/ debts as if owing by MSTC, claimed the amount from MSTC with interest and filed a case, being the Original Application in the Debt Recovery Tribunal (DRT), Mumbai in the year 2012, which MSTC has denied and disputed. The validity of the claim of SCB against an Interim Order passed by the DRT, Mumbai on 16^th September, 2017 has been challenged by MSTC byfilinga Misc. Appeal before the Debt Recovery Appellate Tribunal (DRAT), Mumbai. The said Miscellaneous Appeal was turned down by DRAT on ground of delay in filling. Subsequently, the said appeal was restored by Hon''ble Bombay High Court byway of condonation of delay. SCB had challenged the decision of Bombay High Court through special Leave petition (SLP) in Hon''ble Supreme Court of India. The said SLP was dismissed. Accordingly, appeal stands restored with DRAT, which is currently pending. MSTC has already deposited ? 9,000.00 Lakhs with DRAT as pre-deposit towards hearing of appeal. DRAT has directed status quo in the recovery proceedings as on date. Other proceedings challenging the claim of SCB are also pending before various forums including in the Civil Court at Alipore, Kolkata initiated by MSTC both against SCB and the Insurance Company. SCB had also filed a Summary Suit in late 2012 in the Honâble Bombay High Court against ICICI Lombard claiming the same amount under the Policy from ICICI Lombard on account of the repudiation of the claim of SCB by ICICI Lombard.The claim of SCB is contingent upon the outcome of the legal cases. Pending final disposal of all such court cases where the matters are currently pending, MSTC has disclosed the amount simultaneously as Borrowings (vide Note No-18) and as Trade Receivables.

MSTC has initiated all steps including legal action to realise the dues from the above customer. The related cases are pending before adjudicating authorities at various levels.

8.5: Trade Receivables include ? 18,692.99 Lakhs (Previous Year ? 24,826.59 Lakhs), against business done in facilitator mode (net of provision).

8.6: Trade Receivables include ? 4,842.18 Lakhs (Previous Year ? 6,058.35 Lakhs), against E-Commerce business (net of provision).

13(a)(ll): Rights, preferences and restrictions attached to equity shares.

The Company has only one class of ordinary shares (''Equity Shares'') having a face value of ? 10 each. Each holder of ordinary shares (''Equity Shareholders'') is entitled to one vote per share and are entitled to dividend and to participate in surplus, if any, in the event of winding up.

13(a)(iii): 88,00,000 bonus shares have been issued during F.Y 2016-17 in the ratio of 1:1 13(a)(iv): 1,76,00,000 bonus shares have been issued during F.Y 2017-18 in the ratio of 1:1 13(a)(v) : 3,52,00,000 bonus shares have been issued during F.Y 2018-19 in the ratio of 1:1

a) #Loan from Indian Overseas Bank (IOB) amounting to ? 138.23 Lakhs: (lying since 19.9.2011). This amount represents legal fees paid by the bank in defending their claims to which the Company has lodged its protest with the Bank. MSTChas filed a case in Hon''ble High Court of Calcutta against IOB for ? 3,656.00 Lakhs (which includes ? 2,798.00 Lakhs towards debit of LC value & ? 858.00 Lakhs as debit towards legal expenses).

b) The Current Borrowings include ? 14,361.97 Lakhs (Previous period ? 14,361.97 Lakhs) towards payment made by Standard Chartered Bank (SCB), after purchasing of export bills of MSTC raised on foreign buyers against the export of Gold Jewelries to the buyers during 2008-09, under a Receivable Purchase Agreement. On non-receipt of the proceeds from the foreign buyers against the bills, SCB submitted claims with the Insurance Company, who, however, wrongfully repudiated the claim of SCB. Thereafter, SCB converted the receivables purchased from MSTC under the Receivables Purchase Agreement into loans/debts as if owing by MSTC, claimed the amount from MSTC with interest and filed a case, being the Original Application in the Debt Recovery Tribunal (DRT), Mumbai in the year 2012, which MSTC has denied and disputed. The validity of the claim of SCB against an Interim Order passed by the DRT, Mumbai on 16^th September, 2017 has been challenged by MSTC by filing a Misc. Appeal before the Debt Recovery Appellate Tribunal (DRAT), Mumbai. The said Miscellaneous Appeal was turned down by DRAT on ground of delay in filling. Subsequently, the said appeal was restored by Hon''ble Bombay High Court byway of condonation of delay. SCB had challenged the decision of Bombay High Court through special Leave petition (SLP) in Hon''ble Supreme Court of India. The said SLP was dismissed. Accordingly, appeal stands restored with DRAT, which is currently pending. MSTC has already deposited ? 9,000.00 Lakhs with DRAT as pre- deposit towards hearing of appeal. DRAT has directed status quo in the recovery proceedings as on date. Other proceedings challenging the claim of SCB are also pending before various forums including in the Civil Court at Alipore, Kolkata initiated by MSTC both against SCB and the Insurance Company. SCB had also filed a Summary Suit in late 2012 in the Honâble Bombay High Court against ICICI Lombard claiming the same amount underthe Policy from ICICI Lombard on account of the repudiation of the claim of SCB by ICICI Lombard.

The claim of SCB is contingent upon the outcome of the legal cases. Pendingfinal disposal of all such court cases where the matters are currently pending, MSTC has disclosed the amount simultaneously as Unsecured Borrowings and as Trade Receivables (vide Note No. - 8.2).

(a) Due date is from the date of billingand/orfrom the date of accounting, asthe case may be. There is no disputed dues.

(b) * Includes? 316.38 Lakhs (Previous Year? 297.27 Lakhs) towards provision for pension benefit of employees and? 940.00

Lakhs (Previous Year? 1,436.00 Lakhs) towards wage revision of the employees duefrom 1^st January, 2017.

(c) Both as at 31^st March, 2023 and as at 31^st March 2022 , there is no interest and overdue payment of more than 45 days outstanding to Micro, Small and Medium Enterprises (MSME).

(d) The wage agreement has been reached for wages for non-executive employees, due for revision w.e.f. 1^st January, 2017. Consequential adjustments provision for?496.00 lakhs byway of reversal onthisaccounthasbeen made in the Books of Accounts.

(e) For restatement of Liabilities in respect of Financial Year 2021-22, please refer to Note-35 under I ndAS- 8.

(a) During the year, an amount of ? 1,137.90 Lakhs (Previous Year ? 995.25 Lakhs) was collected towards E-auction Registration. Out of total collection of current year, an amount of ? 910.32 Lakhs (Previous Year? 829.38 Lakhs) has been kept in liabilities to be distributed in subsequent four years as per accounting policy, since related registration is valid for life long. Accumulated undistributed balance standing as on 31^st March, 2023 is ? 1,709.84 Lakhs (Previous Year ? 1,275.55 Lakhs). Balances for which registration is valid uptooneyear is accounted for as income duringthe current period.

(b) Other Operating Revenues also include Interestfrom customers ? 1,900.43 Lakhs (Previous Year? 3,040.38 Lakhs).

The tax rate used forthe year 2022-23 and 2021-22 in the reconciliations above is the corporate tax rate of 34.944% payable by corporate entities in India on taxable profits under the Indian tax law. For Deferred Tax calculation of financial year 2022-23, income tax rate of34.944%.

The company has a MAT credit of? 972.95 Lakhs (Previous Year-?3,090.97 Lakhs) for which company is entitled to credit in next assessment years against tax payable on income for those years. The Company feels that it will earn sufficient profit in coming years. Accordingly, Deferred Tax Asset has been recognised for MAT credit entitlement. However no Deffered Tax Asset has been recognised on the provision for Doubtful Debts of NIL (Prevyear?3,555.25 Lakhs) as a conservative approach.

Duringtheyear, an amount of Nil (Previous Year? 10.47 Lakhs) has been deposited under Direct Tax VivadSeVishwas Act, 2020. The company did not adopt new Income Tax Rate specified under section 115BAA and continued to apply normal Income Tax Rate.

Note: The project closure of corporate office Building at Kolkata has been approved by the Board of Directors of MSTC in their 316^thmeeting held on 10^th August, 2022, with an approval for additional cost of ?167.23 Lakhs. Accordingly, the settlement has been done with the PMC Agency. The same wasalready put to use duringtheF.Y2021-22 following completion of the projectw.e.f. 20^th July, 2021 with cost? 5,297.00 Lakhs duly approved by the Board of Directors. The depreciation attributable to this additional cost for F.Y 2021-22 is? 3.70 Lakhs. In order to give that effect, the Gross Block, Net Block, Liability towards PMC payment, Other Equity, Depreciation, Profitand Total Comprehensive Income has been restated as at 31^st March, 2022 andfortheyearended 31^st March, 2022.

36. Disclosures on Financial Instruments

This section gives an overview of the significance of financial instruments for the Company and provides additional information on Balance Sheet items that contain financial instruments. The details of significant accounting policies, includingthe criteria for recognition, the basis of measurement and the basis on which income and expenses are recognized, in respect of each class of financial asset, financial liability and equity instrument are disclosed in notes to the Standalone Financial Statements.

(1) Categories of Financial Instruments

The following table presents carrying amount and fair value of each category of financial assets and liabilities as at the year end. The Fair value is equivalent to the Carrying value.

(2) Capital Management

(3) Financial Risk Management Objectives

The Company''s Corporate Treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the fianancial risks relating to the operations of the Company. These risks include market risks (like- currency risk, interest rate risk and other price risk), credit risk and liquidity risk. Compliance with policies and exposure limits is reviewed by the internal auditors on a continuous basis. The Company does not enter into transactions involving trade of financial instruments, including derivative financial instruments, for speculative purposes.

(a) Market Risk

The Company''s activities exposes it, primarily to the financial risks of changes in foreign currency exchange rates. On a case to case basis, the Company enters into Forward foreign exchange contracts to hedge the exchange rate risk, as and when necessary.

(i) Interest Rate Risk Management

The Company converts maximum of its loan to MCLR based, with the rate being firm for a contract period usually for a year, as and when necessary.

(ii) Foreign Currency Risk Management

The foreign currency exposure of the Company is due to import liabilities, if any. Transactions are on back to back basis with customers. The gain and loss if any is passed on to the customer. Sometimes forward cover is taken to hedge the related foreign currency exposure in terms of discussion with the customer. Wherever foreign exchange fluctuations are to be borne by the customers as per agreement with them, foreign exchange gain/ loss are not recognized in the books of the Company.

(b) Credit Risk Management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company only transacts with entities that are rated by agencies where available and if not available, the company uses other publicly available financial information and its own past records to rate its major customer. The Company''s exposure and the credit ratings of its counterparties are monitored and the aggregated value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the Senior management committee. Furthermore, in case of Marketing Segment, the business is done with back up of Bank Guarantee.

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, if required, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liablities.

The table below provides details regarding the contractual undiscounted cash obligations of financial liabilities includingestimated interest paymentsforthe period 31^st March 2023, and as at 31^st March 2022.

38. Employee Benefits

Defined Contribution Plans

1. Provident Fund

An amount @12% of Basic Pay and Dearness Allowance is contributed to the Provident Fund Trust by the Company.

2. Pension

In terms of Ministry of Steel Directives, Pension Scheme for the employees of MSTC has been formulated, under Defined Contribution Plan. The Company contributes annually to LIC of India through a Trust. LIC will provide the pension to the employees from the corpus created on account of employees.

Defined Benefits Plans

1. Gratuity:

The Gratuity is payable on service severance in respect of eligible employees.

(a) Executives:

The Gratuity is calculated and paid as perthe Payment of Gratuity Act, 1972.

(b) Non Executives:

The Gratuity is payable as perthe Payment of Gratuity Act, 1972 except for:

(i) The Gratuity is calculated at the rate of one month''s wages last drawn by the employee for every completed years of service in excess of 30 years

(ii) In case of employees whojoined before 1^st July 2014, the Gratuity is payable without any ceiling.

2. Post Retirement Medical Benefit:

The Post Retirement Medical Benefit is a medical benefit to the superannuated employees and their spouse. The members are covered through Group Mediclaim Insurance of the Insurance Company. This is available to superannuated employees at any hospital underthe Group Mediclaim Insurance Policy. In addition to the expenses incurred in domiciliary treatment is also reimbursed as per prescribed scheme. The benefits are funded through a separate trust formed for this purpose. The Company provides the corpus for this. Deficit, if any, is being compensated by the Company.

Note -1 Current Ratio has improved due to better liquidity on account of higher profit and cash realisation.

Note-2 MSTC do not have any long-term debt, hence, not applicable.

Note-3 MSTC do not have any long-term debt, hence, not applicable.

Note - 4 Although the Profit (PAT) has increased but the ratio has decreased on account of increase in Total Equity. Note - 5 MSTC do not have any inventory, hence, not applicable.

Note-6 Trade Receivable Turnover Ratio increased due to reduction in Trade Receivable.

Note-7 Trade Payable Turnover Ratio decreased dueto reduction in purchase of goods and services.

Note - 8 Net Capital Turnover Ratio decreased due to reduction in sale of goods and services.

Note - 9 Net Profit Ratio has increased on account of higher profit.

Note-10 The ratio has increased dueto increase in profit.

Note -11 Although the Profit (PAT) has increased but the ratio has decreased on account of increase in Total Equity.

(d) Above figures are disclosed separately in note no 28 (z).

41. Balances of Trade Receivables, Trade Payables and Advances includes balances subject to confirmation / reconciliation and consequential adjustment, if any. Reconciliations are carried out on on-going basis. Provisions, wherever considered necessary, have been made.

42. The shareholders of MSTC Limited in Extra-Ordinary General Meeting dated 22^nd December, 2021 have decided to sold the entire stake in Ferro Scrap Nigam Limited (FSNL). Accordingly the process for sale has already started.

43. The company did not have any unrecorded transactions in the Books of Accounts which have been surrendered or disclosed as income during theyear in the tax assessments underthe Income Tax Act, 1961.

44. The company has not traded or involved in Crypto or Virtual currency duringtheyear.

45. The Board of Directors of the Company adopted the Financial Statements in SIS''* Board Meeting held on 23"¹ May, 2023.

46. The Board of Directors of the Company in its 319^th Meeting held on 23"¹ May, 2023 has proposed a final dividend of ''3.20 per share in respect of year ending 31^st March, 2023, @ 32% on equity share capital which is ? 7,040.00 Lakhs as on date. The payment of Dividend is subject to approval of shareholders at Annual General Meeting. If approved it will result in a cash outflow of? 2,252.80 Lakhs.

47. The figures for the corresponding previous years have been regrouped / reclassified wherever necessary to make them comparable.

In terms of our report of even date.

Mar 31, 2021

All Freehold buildings are under attachment by the order of DRT , Mumbai.

The CWIP is cost booked for Construction of Corporate Office Building in New Town , Kolkata which is mortaged to SBI against a loan for this purpose.

At the time of implementation and adoption of IndAS w.e.f 1st April, 2015 in terms of IndAS 101 , the Net Block of Assets was considered as Gross Block treating Accumalated Depreciation on that date as "Nil" . Depreciation has been charged since in terms of Companies Act 2013. Hence , the Accumulated Depreciation represents cummulative figures since 1st April, 2015 only. Due to this , there are differences in the figure of Gross Block and Accumulated Depreciation between the Fixed Assets schedule as above and Fixed Assets Register . However the Net Block figures are in complete agreement with Fixed assets Register.

Trade Receivables include an amount of '' 1478.20millions( prev year '' 1478.20 millions) on account of exports of Gold Jewelleries undertaken by the Company during the year 2008-09. The said Receivables were purchased by Standard Chartered Bank (SCB) under a Receivable Purchase Agreement . In terms of the said Agreement, SCB would purchase the bills raised by MSTC on the foreign buyers on account of the exports made to such buyers and pay off MSTC 95% of the bill amount and the foreign buyers would be making payments against the bills directly to SCB on the respective due dates. The said export transactions for the Company were also insured by SCB along with MSTC as co-insured, with ICICI Lombard General Insurance Company. On non-receipt of the proceeds of the bills on the due dates from the foreign buyers, SCB claimed the amounts from the Insurance Company, who, however, wrongfully repudiated the claim of SCB. On such repudiation, SCB unilaterally converted the receivables purchased by it from MSTC into debts of MSTC with interest and filed the case being Original Application in the Debt Recovery Tribunal, Mumbai. MSTC had been and is contesting the claims of SCB before various forums including before the Hon''ble Bombay High Court , the DRT and DRAT, Mumbai including the Misc. Appeal filed by MSTC against an interim Order dated 16 th September 2017 passed by the DRT, Mumbai against MSTC .In case appeal is heard by DRAT then MSTC has to make a pre deposit with DRAT, as per the provisions of relevant statute. SCB had filed a Summary Suit against ICICI Lombard for the recovery of the unrealised debts under the insurance policy , before the Bombay High Court which is pending. Pending final disposal of such cases including the Misc. Appeal filed by MSTC before the DRAT, Mumbai challenging the validity of the Order dated 16 th September 2017 passed by the DRT, Mumbai, the disputed claim of SCB against MSTC has been shown as Unsecured Borrowings (vide note no 20 )and Trade Receivables, without adjustments .

Trade receivables are generally secured either by way of stocks pledged by the customers with the Company or Bank Guarantees . In case there is a significant depletion in realizable value of such pledged stock against the book value of the corresponding receivables, the differential amount has been shown under ''Unsecured''.Further 15 Nos. of Bank Guarantees (BG) amounting to '' 311.53 Millions submitted by a customer was invoked by the Company . The Customer has approached Honble High Court of Andhra Pradesh with a prayer interlia for stay on invocation. The Honble High Court had initially granted interim stay. However, upon a prayer from the company. the Honble Court in a subsequent hearing has ordered the Customer for extending the BGs which were due for expiry. The Customer has since complied with. As on date all the BGs are valid.

The Company has only one class of ordinary shares (''Equity Shares'') having a par value of ?10 each. Each holder of ordinary shares (''Equity Shareholders'') is entitled to one vote per share and are entitled to dividend and to participate in surplus, if any, in the event of winding up.

13(a)(iii) : 88,00,000 bonus shares have been issued during F.Y 2016-17 in the ratio of 1:1 13(a)(iv) : 1,76,00,000 bonus shares have been issued during F.Y 2017-18 in the ratio of 1:1 13(a)(v) : 3,52,00,000 bonus shares have been issued during F.Y 2018-19 in the ratio of 1:1 13(a)(vi) : Details of shareholders holding more than 5% of the company.

a) Loan from Indian Overseas Bank (IOB) amounting to ?13.8 Millions : (lying since 19.9.2011)This amount represents legal fees paid by the bank in defending their claims to which the Company has lodged its protest with the Bank. MSTC has filed a case in Hon''ble High Court of Calcutta against IOB for ? 365.6 Millions (which includes ?279.8 Millions towards debit of LC value & '' 85.8 Millions as debit towards legal expenses).

b) The above amount represents '' 1,436.20 million (Previous year '' 1,436.20 million) towards payment made by Standard Chartered Bank (SCB), after purchase of export bills of MSTC raised on foreign buyers against export of Gold Jewelleries to the buyers during 2008-09, under a Receivable Purchase Agreement. Under the said Agreement, SCB paid 95% of the value of export bills to MSTC and the foreign buyers on whom the bills were raised by MSTC would be paying against the bills directly to SCB on respective due dates mentioned in the bills. Payment failures, if any from the foreign buyers against the bills raised by MSTC was covered by SCB through an insurance Policy taken from ICICI Lombard General Insurance Company with MSTC as co-insured. On non receipt of the proceeds from the foreign buyers against the bills, SCB submitted claims with the Insurance Company, who, however, wrongfully repudiated the claim of SCB. Thereafter, SCB converted the receivables purchased from MSTC under the Receivables Purchase Agreement into loans / debts as if owing by MSTC, claimed the amount from MSTC with interest and filed a case, being the Original Application in the Debt Recovery Tribunal, Mumbai(DRT) in the year 2012, which MSTC has denied and disputed. The validity of the claim of SCB in such proceedings including against an Interim Order passed by the DRT, Mumbai on 16 th September, 2017 have been challenged by MSTC by filing a Misc. Appeal before the Debt Recovery Appellate Tribunal, Mumbai, which are currently pending.In case appeal is heard by DRAT then MSTC has to make a pre deposit with DRAT, as per the provisions of relevant statute. Other

proceedings challenging the claim of SCB are also pending before various forums including the Hon''ble High Court, Bombay and in the Civil Court at Alipore, Kolkata initiated by MSTC both against SCB and the Insurance Company. Subsequently, SCB also filed a Summary Suit in late 2012 in the Hon''ble Bombay High Court against ICICI Lombard claiming the same amount under the Policy from ICICI Lombard on account of the repudiation of the claim of SCB by ICICI Lombard. The claim of SCB is contingent upon the outcome of the legal cases. Pending final disposal of all such court cases where the matters are currently pending, MSTC has disclosed the amount simultaneously as Unsecured Borrowings and as Trade Receivables (vide Note No. - 8.2) .

(a) During the year, an amount of '' 51.41 Million ( Previous Year '' 48.12 Million) was collected towards E-auction Registration. Out of total collection of current year, an amount of '' 41.13 Million (Previous Year '' 38.50 Million) has been kept in liabilities to be distributed in subsequent four years, as per accounting policy since related registration is valid for life long. Accumulated undistributed balance standing as on 31st March, 2021 is '' 104.38 Million ( Previous Year '' 103.07 Million). Balance amount for which registration is valid upto one year is accounted for as income during the current period.

(b) Other Operating Revenues also include Interest from customers '' 345.04 Million in current year (Previous Year '' 586.73 Million) .

( c) Tax deducted at source on Service Charge and Interest income amounts to '' 99.79 Million in current year (Previous Year ''126.67 Million ) .

Donation represents the money paid to PM CARES Fund.

Bad Debt written off at (ac) above represents unrealised trade receivable under cash and carry model of business with equivalent amount held in Provision for Doubtfull Debts and Advances which has been written back and is part of Note 26(d).The above write off is as per approval of Board of Directors in Meeting no 303 held on 11th February, 2021.

Allowances for Bad and Doubtful Advances are provision made during the year as per Provisioning Policy on Trade Receivable implemented from third Quarter Accounts ending 31st December, 2019.

The tax rate used for the year 2020-21 and 2019-20 in the reconciliations above is the corporate tax rate of 34.944% (30% plus surcharge @ 12% and education cess @ 4 %) payable by corporate entities in India on taxable profits under the Indian tax law. For Deferred Tax calculation of financial year 2020-21, income tax rate of 34.944% (30% plus surcharge @ 12% and education cess @ 4 %).

However the company has a MAT credit of ''309.09 Millions (Previous Year - '' 304.16 Million) for which company is entitled to credit in next asseessment years against tax payable on income for those years. The Company feels that it will earn sufficient profit in coming years. Accordingly deferred tax assets has been recognised for MAT credit entitlement. However no Deffered tax asset has been recognised on the provision for Doubtful Debts of '' 695.05 Millions ( Prev year '' 339.91 Millions) as a conservative approach.

During the year, an amount of ''6.85 Million (Previous Year ''10.25 Million) has been deposited under Direct Tax Vivad Se Vishwas Act, 2020. Further an amount of ''1.07 Million has also been deposited in FY 2021-22 under said scheme. Tax Expense of '' 9.53 Million (Previous Year '' 54.30 Million) has been booked against Income Tax cases settled/deposited under the said scheme which comprised 5 (five) assessment years.

The company did not adopt new Income Tax Rate specified under section 115BAA and continued to apply normal Income Tax Rate.

38 . Disclosures on Financial instruments

"This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognized, in respect of each class of financial asset, financial liability and equity instrument are disclosed in notes to the standalone financial statements."

(1) Categories of Financial Instruments

The following table presents carrying amount and fair value of each category of financial assets and liabilities as at the year end. The Fair value is equivalent to the Carrying value.

(2) Capital Management

The Company manages its capital to ensure that the Company is able to continue as going concern while maximising the return to shareholders through the optimisation of the debt and equity balance.The Company is not subject to any externally imposed capital requirements.

(3) Financial risk management objectives

The Company''s Corporate Treasury function provides services to the business, co-ordinates access to domestic and international financial markets , monitors and manages the fianancial risks relating to the operations of the company . These risks include market risk (like- currency risk, interest rate risk and other price risk), credit risk and liquidity risk. Compliance with policies and exposure limits is reviewed by the internal auditors on a continuous basis. The Company does not enter into or trade of financial instruments, including derivative financial instruments, for speculative purposes.

(a) Market Risk

The Company''s activities exposes it ,primarily to the financial risks of changes in foreign currency exchange rates . On a case to case basis, the Company enters into Forward foreign exchange contracts to hedge the exchange rate risk.

(a) Interest rate risk management

At present company has converted maximum of its loan to MCLR based, hence the rate is firm for a contract period usually for a year.

(b) Foreign Currency risk management

The foreign currency exposure of the Company is due to import liabilities. Transactions are on back to back basis with customers . The gain and loss if any is passed on to the customers. Some times forward cover is taken to hedge the related foreign currency exposure in terms of discussion with the customers.Wherever foreign exchange fluctuations are to be borne by the customers as per agreement with them, foreign exchange gain/ loss are not recognized in the books of the Company.

(b) Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in fianacial loss to the Company . The Company has adopted a policy of only dealing with creditworthy counterparties , where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company only transact with entities that are rated by agencies where available and if not available , the company uses other publicly available financial information and its own past records to rate its major customers. The Company''s exposure and the credit ratings of its counterparties are monitored and the aggregated value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the Senior management committee.

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows,and by matching the maturity profiles of financial assets and liablities.

The table below provides details regarding the contractual undiscounted cash obligations of financial liabilities including estimated interest payments for the period 31st March 2021, as at 31st March , 2020 .

1. Provident Fund

12% of Basic pay and dearness allowance contributed to the providend fund trust by the company.

2. Pension

In terms of Ministry of Steel Directives Pension scheme for the employees of MSTC has been formulated , under Defined Contribution Plan. The company contributes annually to LIC of India through a trust. LIC will provide the pension to the employees from the corpus created on account of employees, by way of contribution from MSTC (The Employer)."

Defined Benefits Plans 1. Gratuity :

"The Gratuity is payable on separation at the rate of 15 days pay for each completed year of service to eligible employees

who render continuous service for a minimum period of 5 years.The Gratuity is calculated at the rate of one month''s wages last drawn by the employee for every completed year of service in excess of 30 years in case of non executives only. The maximum amount of Gratuity payable to employee is '' 2 Millions.In case of non executive join on or before 1st July, 2014, the gratuity is celing less.The Gratuity is funded with LIC of India.The Company contributes in the fund every year as premium on the basis of demand raised by LIC of India.

!. Post Retirement Medical Benefit:

The Post Retirement Medical Benefit is a medical benefit to the superannuated employees and their spouse. The members will be covered through Mediclaim Insurance of the Insurance Company. This is available to superannuated employees at any hospital under the Mediclaim Insurance Policy.In addition to this expenses incurred in domicilliary treatment is also reimbursed as per prescribed ceiling.The benefits are funded through a separate trust formed for this purpose.The Company provides the corpus for this. Deficit, if any, is being compensated by the company.

42 . Balances of Trade Receivables, Trade Payables and Advances includes balances subject to confirmation/reconcilliation and

consequential adjustment, if any. Reconcilliations are carried out on on-going basis. Provisions,wherever considered necessary, have been made.

43 .The current assets of the company are under charge with consortium bank against sanction of credit facilities to the

company.

44 .The Board of Directors of the Company adopted the Financial Statements in 306th Board Meeting held on 25 th June, 2021.

45 .The Board of Directors of the Company in its 306th Meeting held on 25th June, 2021 has proposed a final dividend of '' 4.40

per share in respect of year ending 31st March, 2021 @ 44% on equity share capital which is '' 704.00 Millions as on date. The payment of Dividend is subject to approval of shareholders at Annual General Meeting. If approved it will result in a cash outflow of '' 309.76 Millions.

46 .The figures for the corresponding previous years have been regrouped/reclassified wherever necessary to make them

comparable.

Mar 31, 2018

NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2018

1.A .General Information

MSTC Limited a Miniratna Category-II Company was incorporated under the Companies Act, 1956 on 9th September, 1964. The Company undertakes trading activities, e-commerce and also disposal of ferrous and non-ferrous scrap, surplus stores, minerals, agri and forest produces etc. mostly from Public Sector Undertakings and Govt. Departments. The core activity of the Company has been divided into two Operational Divisions, i.e. e-Commerce and Trading. The e-Commerce division undertakes disposal of Scrap, surplus stores, minerals, agri and forest produces through e-Auction. The list of Principals includes Ministry of Defence, PMO, Govt. of NCT/Delhi, PSUs like Indian Oil Corporation Ltd., Oil and Natural Gas Corporation Ltd, State Electricity Boards, Bharat Sanchar Nigam Ltd, Hindustan Petroleum Corporation Ltd. etc. The mode of disposal includes e-auction, e-tender, e-reverse auction etc. Besides, MSTC also e-auctions coal from Coal India Ltd, Singareni Coalfields Ltd etc.Apart from these MSTC also provides e-procurement solution. The trading division handles import/export and domestic trade of mainly bulk industrial raw material. It looks after sourcing, purchase and sales of industrial raw materials like Heavy Melting Scrap, Low Ash Metallurgical Coke, HR Coil, Crude Oil, Naptha, Coking Coal, Steam Coal etc. for supply to Indian industries. The end customers are Coal/Steel Industries, Oil sector, State owned Power Companies etc.

1.B. Recent Accounting Developments: Standards issued but not yet effective

Ministry of Corporate Affairs (MCA) has notified Ind AS 115-Revenue from Contract with Customers and certain amendment to existing Ind ASs, on 28.03.2018 as narrated below:

(a) Ind AS 115- Revenue from Contract with Customers: This will supersede the current revenue recognition guidance including Ind AS 11 Construction Contract, Ind AS 18 Revenue and related interpretations.

(b) Amendment to existing Ind AS:

(i) Ind AS 21- The effect of Changes in Foreign Exchange Rates

(ii) Ind AS 40 - Investment Property.

(iii) Ind AS 12- Income Taxes

(iv) Ind AS 28- Investment in Associates and Joint Ventures,and

(v) Ind AS 112- Disclosure of Interests in other entities

The Company is in the process of assessing the detailed impact of Ind AS 115. Presently, the Company is not able to reasonably estimate the impact that application of Ind AS 115 is expected to have on its financial statements, except that adoption of Ind AS 115 is not expected to significantly change the timing of the Companyâs revenue recognition.

The above changes as notified shall be applicable to the Company w.e.f from 01.04.2018. The Company intends to adopt the standard using the modified retrospective approach which means that the cumulative impact of the adoption will be recognised in retained earnings as of 1st April 2018 and that comparatives will not be restated.

Notes :

1) During the financial year 2016-17, FSNL, the wholly owned subsidiary company has issued bonus shares aggregating to 3,00,00,000 shares of Rs. 10/- each, in two tranches.

2) During F.Y. 2016-17 MSTC Limited and Mahindra Intertrade Ltd have formed a 50:50 Joint Venture Company named Mahindra MSTC Recycling Private Ltd on 16th December 2016 for setting up of Auto shredding plant.

3) During F. Y 2017-18 MSTC Limited have invested Rs. 7,50,00,000 towards equity contribution in Mahindra MSTC Recycling Private Limited.

2.1: Trade Receivables include an amount of Rs. 14782 lakh on account of export of gold jewellery during 2008-09. The said receivables were purchased by Standard Chartered Bank (SCB) under a Receivable Purchase Agreement . As per the said agreement, SCB would purchase the bills raised by MSTC on foreign buyers and pay 95% of the amount to MSTC and foreign buyers would be paying against the bills directly to SCB on respective due dates of the bills. The said export transactions were also insured by SCB with ICICI Lombard General Insurance Company. On non receipt of proceeds from the foreign buyers, SCB claimed the amount from the insurance company. The Insurance company repudiated the claim of SCB. Thereafter SCB converted the receivables into debt and filed a case in Debt Recovery Tribunal, Mumbai. MSTC has been contesting the case in DRT and other forums against the said claim of SCB. SCB has also filed a suit against the insurance company for the said amount of unrealized dues which is yet to be disposed off. Pending disposal of the cases, MSTC has been showing the amount as receivables without adjusting the same against the amount paid by SCB to MSTC against purchase of the said receivables(export bills) which is being shown in books separately as Borrowing( Current) vide Note No. 20.

2.2: Trade receivables are generally secured either by way of stocks pledged by the customers with the Company or Bank Gurantees or by liability where there is back to back arrangement with the associate suppliers. In case there is a significant depletion in realizable value of such pledged stock against the book value of the corresponding receivables, the differential amount has been shown under âUnsecuredâ.

2.3(a): Trade Receivables includes Rs. 19544 lakh (Previous Year Rs. 19544 lakh) due from M/s SPS Steel Rolling Mills Ltd. for procurement and supply of materials to the party up to October, 2012, almost five and half years ago. As per the volumetric analysis conducted by independent inspection agency, the net realizable value of pledged raw materials comes to Rs. 6230 lakh. The party has defaulted in making the payment as per the terms of the Arbitration award. The financial creditors have filed an application in NCLT for initiation of Corporate Insolvency Resolution Process against the Company.The Company has security deposit of Rs. 10 lakh and has also recovered Rs. 641 lakh from the party during the financial year 2018-19. MSTC has filed its claim with the Resolution Professional (RP). MSTCâs claim has been admitted by the Committee of Creditors as a secured operational creditor. An ad-hoc provision of Rs. 1500 lakh have been created in the books of accounts.

2.3(b): Trade Receivables includes Rs. 22124 lakh (Previous Year Rs. 22006 lakh) due from M/S Concast Steel & Power Ltd. for procurement and supply of materials. As per the volumetric analysis carried out by independent inspection agency, the net realizable value of the pledged stock is Rs. 2313.81 lakh. Volumetric assessment at Jharsuguda unit of the party could not be performed by MSTC. Pursuant to admission of a case of insolvency filed by financial creditors in NCLT, MSTC has filed its claim before Insolvency Resolution Professional under NCLT. The Company has a security deposit of Rs. 40 lakh and during the year, procured materials on behalf of the party for Rs. 9206 lakh and realization was Rs. 9088 lakh. An ad-hoc provision of Rs. 3000 lakh have been created in the books of accounts.

2.3(c): Trade Receivable includes Rs. 11484 lakh (Previous year: Rs. 11937 lakh) due from M/s Jai Balaji Industries Ltd. Entire amount of outstanding is overdue for a period of more than three years. As per the settlement terms, MSTC will procure raw materials for the party against advance payment only. Out of the advance payment, 10 % will be adjusted against old receivables and for balance 90% fresh procurement will be made by MSTC. Out of the fresh procurement, 50% of material is being issued and balance 50% is kept as pledged stock. Thus against 90% of payment received, 50% of material is issued against fresh stock and balance 50% is issued against old stock, thereby replacing the old materials with the new one. In the process the quality of the security has improved significantly. As a result, net realizable value of the pledged stock has increased from Rs. 6870 lakh as on 31.03.2017 to Rs. 14185 lakh as on 31.03.2018 (as per the Volumetric Analysis carried out by independent inspection agency), which is much higher than the outstanding balance. In view of this and also due to improved market condition, no provision was considered necessary to be made in the current year.

2.3(d): Trade Receivables include Rs. 2831 lakh (Previous year: Rs. 3031 lakh) due from M/s Global Coke Ltd (GCL) for procurement and supply of materials which are more than three years old. Entire amount of outstanding is overdue for more than three years. The party has been referred to NCLT and the Company has filed its claim before Resolution Professional. The party, with the approval of Committee of Creditors, has recently started their Sindhudurg plant on job work basis. The party is also looking for a strategic investor for its Jamnagar plant to start on job work basis where the Companyâs pledged materials are lying. It is expected that the entire dues of the Company will be liquidated by way of consumption of pledged materials once this plant becomes operational. Further, the quality of security in the form of stock lying has improved significantly due to prevailing improved market condition, that resulted in increase in net realizable value from Rs. 1250 lakh as on 31.03.2017 to Rs. 5311 lakh as on 31.03.2018 (as per the Volumetric Analysis carried out by independent inspection agency), which is much higher than the outstanding balance. An amount of Rs. 1030 lakh has already been provided for upto 31st March, 2017. In view of this and also due to improved market condition of the material in stock, no provision was considered necessary to be made in the current year.

2.4: Trade Receivables include Rs. 293979 lakh, against business done in facilitator mode (net of provision) (P.Y 2016-17 Rs. 275490 lakh )

3.1 The above deposits include Rs. 31,828 lakh pledged with banks against over draft facility (P.Y2016-17 Rs. 36,117 lakh).and margin against guarantee Rs. 955 lakh (P.Y 2016-17 Rs. 953 lakh).

Rights, preferences and restrictions attached to equity shares.

4(a)(ii)The Company has only one class of ordinary shares (âEquity Sharesâ) having a par value of â10 each. Each holder of ordinary shares (âEquity Shareholdersâ) is entitled to one vote per share and are entitled to dividend and to participate in surplus, if any, in the event of winding up.

4(a)(iii) 66,00,000 bonus shares have been issued during F.Y 2012-13 in the ratio of 3:1 14(a)(iv) 88,00,000 bonus shares have been issued during F.Y 2016-17 in the ratio of 1:1 14(a)(v) Details of shareholders holding more than 5% of share holding

a) Loan from Indian Overseas Bank (IOB) amounting to â138 lakh (lying since 19.9.2011)This amount represents legal fees paid by the bank in defending their claims to which the Company has lodged its protest with the Bank. MSTC has filed a case in Honâble High Court of Calcutta against IOB for Rs. 3,656 lakh (which includes Rs. 2,798 lakh towards debit of LC value & Rs. 858 lakh as debit towards legal expenses).

b) The above amount represents Rs. 14,362 Lakh on account of payment by Standard Chartered Bank(SCB) to MSTC towards purchase of exports bills for gold jewllery during 2008-09, under a Receivable Purchase Agreement. Under the said agreement SCB would be paying 95% of the value of export bills to MSTC and foreign buyers would be paying for the bill directly to SCB on respective due dates of the bills. The same transactions were covered by SCB through an insurance policy with ICICI Lombard General Insurance Company. On non-receipt of proceeds from foreign buyers, SCB submitted claims with the insurance company.The Insurance company repudiated the claim of SCB. There after, SCB converted the receivables into loan, claimed the amount from MSTC and filed a case in DRT, Mumbai in 2012. Subsequently SCB also filed a suit in Bombay High Court against the insurance company which is yet to be disposed off. MSTC has been contesting the claim of SCB in DRT and other forums. Pending disposal of the cases, MSTC has shown the amount simultaneously as Borrowing and Receivables under Note No. 9 for better presentation. Appropriate disclosure has been made as contingent liabilities for the interest claimed by SCB on the above mentioned amount of claim as per Ind AS 37.

# Secured against Current Assets.

* Secured by lien on FDR current year Rs. 31,828 lakh, preivious year Rs. 36,117 lakh.

âIncludes Rs. 1,582 lakh (previous year 2016-17 Rs. 1,322 lakh) towards provision for pension benefit of employees,pending approval of the scheme and Rs. 1,077 lakh (previous years Rs. 270 lakh) towards wage revision of the employees due from 01.01.2017.

(a) During the year, an amount of Rs. 608 lakh (previous year Rs. 346 lakh) was collected towards E-auction Registration. Out of total collection of current year, an amount of Rs. 487 lakh (previous year Rs. 276 lakh) has been kept in liabilities to be distributed in subsequent four years, since related registration is valid for life long. Accumulated undistributed balance standing as on 31.03.2018 is Rs. 895 lakh (previous year Rs. 645 lakh). Balance amount for which registration is valid upto one year is accounted for as income during the current year.

(b) Other Operating Revenues also include Interest from customers Rs. 9,673 lakh (previous yr. Rs. 2,424 lakh).

( c) Tax deducted at source on Service Charge and Interest income amounts to Rs. 1,806 lakh (previous year â2,129 lakh).

(I) In pursuant to Ministry of Steelâs Order , complying the directive of Honble High Court of Kolkata, pay correction of Executive employees was effected w.e.f. 01.04.1999. The impact of this is Rs. 1,574 lakhs which is included in the above.

(II) As per Gazette Notification S.O 1420(E) dated 29/03/2018 the ceiling of Gratuity has been enhanced from Rs. 10 lakhs to Rs. 20 Lakhs. Rs. 702 lakhs towards the impact of this charge has been recognised as Past Service Cost.

5 . Micro Small And Medium Enterprises

The amount due to MSME (as disclosed in note no 22) is to the extent such undertakings have been identified. The Company has normally made payment to MSME units in due time and there are no claim from the parties for interest or overdue payment. The Company is following the guidelines of Public Procurement Policy for Micro & Small Enterprises (MSMEs) Order 2012.

The tax rate used for the year 2017-18 and 2016-17 in the reconciliations above is the corporate tax rate of 34.608% (30% plus surcharge @ 12% and education cess @ 3 %) payable by corporate entities in India on taxable profits under the Indian Tax Law. For Deferred Tax calculation of financial year 2017-18, Income Tax rate of 34.944% (30% plus surcharge @ 12% and education cess @ 4 %) pertaining to financial year 2018-19 has been considered.The effective tax rate for F.Y. 2017-18 is 31.329% (For P.Y. 2016-17 is 31.272%).

There is carry forward of business loss and depreciation agrregating to Rs. 20178 lakh. However the Company has a MAT liability of Rs. 2225 lakh for which Company is entitled to credit in next asseessment years against tax payable on income for those years.The Company feels that it will earn sufficient profit in coming years,not only to offset the carry forward loss but also will have taxable profit. Accordingly deferred tax assets has been recognised for carry forward of business loss,depreciation and MAT credit entitlement.

6 . Disclosures on Financial Instruments

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognized, in respect of each class of financial asset, financial liability and equity instrument are disclosed in notes to the standalone financial statements.

(1) Categories of Financial Instruments

The following table presents carrying amount and fair value of each category of financial assets and liabilities as at the year end. The Fair value is equivalent to the Carrying value.

(2) Capital Management

The Company manages its capital to ensure that the Company is able to continue as going concern while maximising the return to shareholders through the optimisation of the debt and equity balance.The Company is not subject to any externally imposed capital requirements.

(3) Financial Risk Management objectives

The Companyâs Corporate Treasury function provides services to the business, co-ordinates access to domestic and international financial markets , monitors and manages the fianancial risks relating to the operations of the Company. These risks include market risk (like- currency risk, interest rate risk and other price risk), credit risk and liquidity risk. Compliance with policies and exposure limits is reviewed by the internal auditors on a continuous basis. The Company does not enter into or trade in financial instruments, including derivative financial instruments, for speculative purposes.

(a) Market Risk

The Companyâs activities exposes it , primarily to the financial risks of changes in foreign currency exchange rates . On a case to case basis, the Company enters into Forward foreign exchange contracts to hedge the exchange rate risk.

(i) Interest Rate Risk Management

At present company has converted maximum of its loan to MCLR based, hence the rate is firm for a contract period usually for a year. Further Interest on Overdraft facility is linked with interest of Fixed deposits, which are usually firm for one year.

(ii) Foreign Currency Risk Management

(b) Credit Risk Management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in fianacial loss to the Company . The Company has adopted a policy of only dealing with creditworthy counterparties , where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company only transact with entities that are rated by agencies where available and if not available , the company uses other publicly available financial information and its own past records to rate its major customers. The Companyâs exposure and the credit ratings of its counterparties are monitored and the aggregated value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the Senior Management Committee.

(c) Liquidity Risk Management

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows,and by matching the maturity profiles of financial assets and liablities.

The table below provides details regarding the contractual undiscounted cash obligations of financial liabilities including estimated interest payments as at 31st March 2018.

(d) Fair Value Measurement

None of the Companyâs financial assets and financial liabilities are measured at fair value at the end of the reporting period.

Note :* It indicate Directorâs Sitting Fees.

(i) Since the facility of private use of car for limited mileage is provided by the company to the Directors, such facility has not been considered as benefit/perquisite.

(ii) The above includes Performance related pay on actual payment basis.

7. Employee Benefits

Defined Contribution Plans Providend Fund

12% of Basic Pay and Dearness Allowance contributed to the Providend Fund Trust by the Company.

Defined Benefits Plans

1. Gratuity:

The Gratuity is payable on separation at the rate of 15 days pay for each completed year of service to eligible employees who render continious service for a minimum period of 5 years.The Gratuity is calculated at the rate of one monthâs wages last drawn by the employee for every completed year of service in excess of 30 years in case of non executives only. The maximum amount of Gratuity payable to employee is Rs. 20 lakh. In case of non executive joining on or before 01.07.2014, the gratuity is celing less.The Gratuity is funded with LIC of India.The Company contributes in the fund every year as premium on the basis of demand raised by LIC of India.

2. Post Retirement Medical Benefit:

The Post Retirement Medical Benefit is a medical benefit to the superannuated employees and their spouse. The members will be covered through Mediclaim Insurance of the Insurance Company. This is available to superannuated employees at any hospital under the Mediclaim Insurance Policy.In addition to this expenses incurred in domicilliary treatment is also reimbursed as per prescribed ceiling.The benefits are funded through a separate trust formed for this purpose.The Company provides the corpus for this. Deficit, if any, is being compensated by the Company.

Investment risk The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. For other defined benefit plans, the discount rate is determined by reference to market yields at the end of the reporting period on high quality corporate bonds when there is a deep market for such bonds; if the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments. Further, the overseas plan has a relatively balanced investment in equity securities, debt instruments and real estates. Due to the long-term nature of the plan liabilities, the board of the overseas Fund considers it appropriate that a reasonable portion of the plan assets should be invested in equity securities and in real estate to leverage the return generated by the fund.

Interest risk A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the planâs debt investments.

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

Salary risk The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the planâs liability.

(a) The company has recognised an amount of Rs. 280 lakh in Statement of Profit and Loss for the year (previous year Rs. 246 lakh ) expenses under defined contribution plans.

(b) The company operates post retirement defined benefit plans as follows : Funded

i. Gratuity

ii. Post Retirement Medical Benefit Scheme

3. The current service cost and the net interest expenses for the year are included in the âEmployee benefits expenseâ line item in the standalone statement of profit and loss w.e.f F.Y 2017-18 on the basis of actuarial valuation under IndAS 19.

4. The remeasurement of the net defined benefit liability is included in other comprehensive income.

5. Movements in the present value of the defined benefit obligation are as follows

6. Significant actuarial assumptions for the determination of the defined obligation are discount rate and expected medical cost inflation. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

7. The sensitivity analysis presented above 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.

(d) Details of the Post Retirement Medical Benefit Scheme are as follows :

3. The current service cost and the net interest expenses for the year are included in the âEmployee benefits expenseâ line item in the standalone statement of profit and loss.

4. The remeasurement of the net defined benefit liability is included in other comprehensive income.

5. Movements in the present value of the defined benefit obligation are as follows

7. Significant actuarial assumptions for the determination of the defined obligation are discount rate and expected medical cost inflation. The sensitivity analyses below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

8 . Expenditure Incurred on Corporate Social Responsibility Activities

(a) Gross amount required to be spent by the company during the year - â214 lakh

(b) In accordance to section 135 of Companies Act 2013, the company has incurred Rs. 215 lakh (Previous Year Rs. 80 lakh ) as CSR expenditure.

Above figures are disclosed seperately in Note No. 29(aa)

9 . Balances of Trade Receivables, Trade Payables and Advances includes balances subject to confirmation/reconcilliation and consequential adjustment, if any. Reconcilliations are carried out on on-going basis. Provisions,wherever considered necessary, have been made.

10 . The figures for the corresponding previous years have been regrouped/reclassified wherever necessary to make them comparable.

11 . The Board of Directors of the Company in its 281st Meeting held on 27th July 2018, has proposed a final dividend in respect of the year ended 31st March 2018, @74% on equity share capital which is Rs. 3520 lakh as on date. The payment of dividend is subject to approval of shareholders at annual general meeting.If approved it will result in cash outflow of Rs. 3140 lakh inclusive of dividend distribution tax of Rs. 535 lakh.

12 . The Finanacial Statements were approved for issue by the Board of Directors of the Company on 27th July 2018.

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