Notes to Accounts of Shyam Metalics and Energy Ltd.

Mar 31, 2025

(m) Provisions and contingent liabilities

Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are
measured at the best estimate of the expenditure required to settle the present obligation at the Balance sheet date.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate,
the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as
a finance cost.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed
only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a
present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a
reliable estimate of the amount cannot be made.

(n) Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise balance with banks, cash on hand, cheques/ draft on hand and short-term
deposits net of bank overdraft with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
For the purposes of the cash flow statement, cash and cash equivalents include balance with banks, cash on hand, cheques/ draft on hand
and short-term deposits net of bank overdraft.

(o) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of
another entity.

(i) Financial assets

(I) Initial recognition and measurement

At initial recognition, financial asset is measured at its fair value plus, in the case of a financial asset not at fair value through
profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial
assets carried at fair value through profit or loss are expensed in profit or loss.

(II) Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in following categories:

a) at amortized cost; or

b) at fair value through other comprehensive income; or

c) at fair value through profit or loss.

The classification depends on the entity''s business model for managing the financial assets and the contractual terms of
the cash flows.

Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments
of principal and interest are measured at amortized cost. Interest income from these financial assets is included in finance
income using the effective interest rate method (''EIR'').

Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash flows and for
selling the financial assets, where the assets'' cash flows represent solely payments of principal and interest, are measured at
fair value through other comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI, except for
the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognized in
Statement of Profit and Loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI
is reclassified from equity to Statement of Profit and Loss and recognized in other gains/ (losses). Interest income from these
financial assets is included in other income using the EIR method.

Fair value through profit or loss (FVTPL): Assets that do not meet the criteria for amortized cost or FVOCI are measured at fair
value through profit or loss. Interest income from these financial assets is included in other income.

Equity instruments: All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held
for trading and contingent consideration recognised by an acquirer in a business combination to which Ind AS103 applies
are classified as at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present in
other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument- byÂ¬
instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding
dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to profit or loss, even on sale of investment.
However, the Company may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the
profit and loss.

(III) Impairment of financial assets

In accordance with Ind AS 109, Financial Instruments, the Company applies Expected Credit Loss (''ECL'') model for measurement
and recognition of impairment loss on financial assets that are measured at amortized cost and FVOCI.

For recognition of impairment loss on financial assets and risk exposure, the Company determines that whether there has been
a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used
to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If in subsequent years,
credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition,
then the entity reverts to recognizing impairment loss allowance based on 12 month ECL.

Life time ECLs are the expected credit losses resulting from all possible default events over the expected life of a financial
instrument. The 12 month ECL is a portion of the lifetime ECL which results from default events that are possible within 12
months after the year end.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all
the cash flows that the entity expects to receive (i.e. all shortfalls), discounted at the original EIR. When estimating the cash
flows, an entity is required to consider all contractual terms of the financial instrument (including prepayment, extension etc.)
over the expected life of the financial instrument. However, in rare cases when the expected life of the financial instrument
cannot be estimated reliably, then the entity is required to use the remaining contractual term of the financial instrument.

In general, it is presumed that credit risk has significantly increased since initial recognition if the payment is more than
30 days past due.

ECL impairment loss allowance (or reversal) recognized during the year is recognized as impairment gain / loss on financial
assets in the Statement of Profit and Loss. In balance sheet ECL for financial assets measured at amortized cost is presented as
an allowance, i.e. as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net
carrying amount. Until the asset meets write off criteria, the Company does not reduce impairment allowance from the gross
carrying amount.

(IV) Derecognition of financial assets

A financial asset is derecognized only when

a) the rights to receive cash flows from the financial asset is transferred or

b) retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay
the cash flows to one or more recipients.

Where the financial asset is transferred then in that case financial asset is derecognized only if substantially all risks and rewards
of ownership of the financial asset is transferred. Where the entity has not transferred substantially all risks and rewards of
ownership of the financial asset, the financial asset is not derecognized"

(ii) Financial liabilities

(I) Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss and at amortized
cost, as appropriate.

All financial liabilities are recognized initially at fair value and, in the case of borrowings and payables, net of directly attributable
transaction costs.

(II) Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through profit or loss. Separated embedded derivatives are also classified as
held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are
recognized in the Statement of Profit and Loss.

Borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR
method. Gains and losses are recognized in Statement of Profit and Loss when the liabilities are derecognized as well as through
the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition
and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the Statement of
Profit and Loss.

Borrowing Cost: Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily
takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All
other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that
an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent
regarded as an adjustment to the borrowing costs.

(III) Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original
liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the Statement
of Profit and Loss as finance costs.

(iii) Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable
right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability
simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal
course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

(p) Employee Benefits

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the
end of the year in which the employees render the related service are recognized in respect of employees'' services up to the end of
the year and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current
employee benefit obligations in the balance sheet.

(ii) Other long-term employee benefit obligations
(I) Defined contribution plan

Provident Fund: Contribution towards provident fund is made to the regulatory authorities, where the Company has no
further obligations. Such benefits are classified as Defined Contribution Schemes as the Company does not carry any further
obligations, apart from the contributions made on a monthly basis which are charged to the Statement of Profit and Loss.

Employee''s State Insurance Scheme: Contribution towards employees'' state insurance scheme is made to the regulatory
authorities, where the Company has no further obligations. Such benefits are classified as Defined Contribution Schemes as
the Company does not carry any further obligations, apart from the contributions made on a monthly basis which are charged
to the Statement of Profit and Loss.

(II) Defined benefit plans
Gratuity

The Company provides for gratuity, a defined benefit plan (the ''Gratuity Plan"") covering eligible employees in accordance with
the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death,
incapacitation or termination of employment, of an amount based on the respective employee''s salary. The Company''s liability
is actuarially determined (using the Projected Unit Credit method) at the end of each year. Actuarial losses/gains are recognized
in the other comprehensive income in the year in which they arise.

The present value of the defined benefit obligation denominated in INR is determined by discounting the estimated future cash
outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating
to the terms of the related obligation. The estimated future payments which are denominated in a currency other than INR,
are discounted using market yields determined by reference to high-quality corporate bonds that are denominated in the
currency in which the benefits will be paid, and that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair
value of plan assets. This cost is included in employee benefit expense in the Statement of Profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in
the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the Statement
of Changes in Equity and in the Balance Sheet. Changes in the present value of the defined benefit obligation resulting from
plan amendments or curtailments are recognised immediately in profit or loss as past service cost.

Compensated absences

Accumulated compensated absences, which are expected to be availed or encashed within 12 months from the end of the year
are treated as short term employee benefits. The obligation towards the same is measured at the expected cost of accumulating
compensated absences as the additional amount expected to be paid as a result of the unused entitlement as at the year end"

Accumulated compensated absences, which are expected to be availed or encashed beyond 12 months from the end of the
year end are treated as other long term employee benefits. The Company''s liability is actuarially determined (using the Projected
Unit Credit method) at the end of each year. Actuarial losses/gains are recognized in the statement of profit and loss in the year
in which they arise. Leaves under define benefit plans can be encashed only on discontinuation of service by employee.

(iii) Share-based payments

Employees (including senior executives) of the Company receive remuneration in the form of share-based payments, whereby
employees render services as consideration for equity instruments (equity-settled transactions). The cost of equity-settled
transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model.

That cost is recognised, together with a corresponding increase in share-based payment (SBP) reserves in equity, over the
period in which the performance and/or service conditions are fulfilled in employee benefits expense. The cumulative expense
recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting
period has expired and the Companies'' best estimate of the number of equity instruments that will ultimately vest. The
statement of profit and loss expense or credit for a period represents the movement in cumulative expense recognised as at
the beginning and end of that period and is recognised in employee benefits expense"

No expense is recognised for awards that do not ultimately vest because non-market performance and/or service conditions
have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested
irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service
conditions are satisfied.

The Company has established an Employee Stock Option Plan , SMEL Performance Scheme (ESOP 2023) on 25th September 2023
and SMEL Loyalty Scheme on 27th September 2023, which extends to the employees of the wholly owned subsidiary Company
namely Shyam Sel and Power Limited (''SSPL''). The ESOP is administered by the ''Shyam Metalics Employee Welfare Trust.

In accordance with the guidance provided under Ind AS 102 - Share-based Payment, the fair value of the stock options granted
to employees of the wholly owned subsidiary Company is recognized as an increase in the share option outstanding account
over the vesting period, with a corresponding increase in financial asset. The expense is recognized based on the fair value of
the options at the grant date.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.

(q) Earnings Per Share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average
number of equity shares outstanding during the year. Earnings considered in ascertaining the Company''s earnings per share is the net profit
or loss for the year after deducting preference dividends and any attributable tax thereto for the year. The weighted average number of equity
shares outstanding during the year and for all the years presented is adjusted for events, such as bonus shares, other than the conversion
of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares"

(r) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The
Board of directors monitors the operating results of all product segments separately for the purpose of making decisions about resource
allocation and performance assessment. Segment performance is evaluated based on profit and loss and is measured consistently with
profit and loss in the Summary Statements.

The operating segments have been identified on the basis of the nature of products/services. Further:

i. Segment revenue includes sales and other income directly identifiable with / allocable to the segment including inter - segment
revenue. Expenses that are directly identifiable with / allocable to segments are considered for determining the segment result.

ii. Expenses which relate to the Group as a whole and not allocable to segments are included under un-allocable expenditure.

iii. Income which relates to the Group as a whole and not allocable to segments is included in unallocable income.

iv. Segment results includes margins on inter-segment sales which are reduced in arriving at the profit before tax of the Company.

v. Segment assets and liabilities include those directly identifiable with the respective segments. Unallocable assets and liabilities
represent the assets and liabilities that relate to the Group as a whole and not allocable to any segment.

vi. Segment revenue resulting from transactions with other business segments is accounted on the basis of transfer price agreed
between the segments. Such transfer prices are either determined to yield a desired margin or agreed on a negotiated business.

(s) All amounts disclosed in Financial Statements and notes have been rounded off to the nearest thousands as per requirement of Schedule
III of the Act, unless otherwise stated.

1C Significant accounting judgments, estimates and assumptions

The preparation of Financial Statements requires management to make judgments, estimates and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about
these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities
affected in future years.

The key assumptions concerning the future and other key sources of estimation uncertainty at the year end date, that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company
based its assumptions and estimates on parameters available when the Financial Statements were prepared. Existing circumstances and
assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of
the Company. Such changes are reflected in the assumptions when they occur.

(a) Useful lives of property, plant and equipment, right-of-use assets and intangible assets

The Company reviews the useful life of property, plant and equipment, right-of-use assets and intangible assets at the end of each
reporting period. This reassessment may result in change in depreciation and amortisation expense in future periods.

(b) Deferred tax assets

Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which
the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be
recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

A provision is recognised when the Group has a present obligation as result of a past event and it is probable that the outflow of resources
will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date
and adjusted to reflect the current best estimates. Contingent liabilities are not recognised in the financial statements.

(d) Share-based payments

Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which is
dependent on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the
valuation model including the expected life of the share option, volatility and dividend yield and making assumptions about them.

(e) Fair value measurements of financial instruments

When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in
active markets, their fair value is measured using valuation techniques including Discounted Cash Flow Model. The inputs to these models
are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair
values. Judgements include considerations of inputs such as liquidity risks, credit risks and volatility. Changes in assumptions about these
factors could affect the reported fair value of financial instruments.

(f) Defined benefit plans (gratuity benefits and compensated absences)

The cost of the defined benefit plans such as gratuity and compensated absences are determined using actuarial valuations. An actuarial
valuation involves making various assumptions that may differ from actual developments in the future. These include the determination
of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature,
a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each year end.

The principal assumptions are the discount and salary growth rate. The discount rate is based upon the market yields available on
government bonds at the accounting date with a term that matches that of liabilities. Salary increase rate takes into account of inflation,
seniority, promotion and other relevant factors on long term basis. For details refer Note 39.

(g) Allocation of consideration over the fair value of assets and liabilities acquired in a business combination

Assets and liabilities acquired pursuant to business combination are stated at the fair values determined as of the date of acquisition.
The carrying values of assets acquired are determined based on estimate of a valuation carried out by independent professional valuers
appointed by the Company. The values have been assessed based on the technical estimates of useful lives of tangible assets and benefits
expected from the use of intangible assets. Other assets and liabilities were recorded at values that were expected to be realised or
settled respectively.

1D New Standards, Interpretations and Amendments Adopted by the Company

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting
Standards) Rules as issued from time to time. During the year ended March 31, 2025, MCA has notified Ind AS 117-Insurance Contracts and
amendments to Ind AS 116 -Leases, relating to sale and leaseback transactions, applicable from April 1, 2024. The Company has assessed that
there is no significant impact on its financial statements

On 09 May 2025, MCA notified the amendments to Ind AS 21-Effects of Changes in Foreign Exchange Rates. These amendments aim to provide
clearer guidance on assessing currency exchangeability and estimating exchange rates when currencies are not readily exchangeable. The
amendments are effective for annual periods beginning on or after 01 April 2025. The Company is currently assessing the probable impact of
these amendments on its standalone financial statements.

Mar 31, 2024

(a) The Company as a lessee has obtained certain assets such as immovable properties on various leasing arrangements for the purposes of busisness operations. With the exception of short-term leases and leases of low value underlying assets, each lease is reflected on the balance sheet as a right-to-use asset and a lease liability. Variable lease payment which do not depend on an index or a rate are excluded from the initial measurement of the lease liability and right-of-use assets. The Company has presented its right-of-use assets separately from other assets. Each lease generally imposes a restriction that unless there is a contractual right for the Company to sub-lease the asset to another party, the right-of-use asset can only be used by the Company. Some lease contain an option to extend the lease for a further term.

(b) Additional information on extension/ termination options: Extension and termination options are included in a number of property lease arrangements of the Company. These are used to maximise operational flexibility in terms of managing the assets used in the Company''s operations. The majority of extension and termination options held are exercisable based on consent of the Company.

(d) Lease payments, not included in measurement of liability: The Company has elected not to recognise a lease liability for short term leases (leases with an expected term of 12 months or less) or for leases of low value assets. Payments made under such leases are expensed on a straight-line basis. The expense relating to payments not included in the measurement of the lease liability is as follows:

(b) There are no projects as capital work-in-progess as at 31 March 2024 and 31 March 2023, whose completion is overdue or cost of which has exceeds in comparison to its original plan or which has been temporarily suspended.

(c) H 18 .65 crores (31 March 2023: H Nil) of borrowing costs has been capitalised during the year against qualifying assets under construction using a capitalisation rate of 6.29% (31 March 2023: Nil).

(a) Investments at fair value through Other Comprehensive Income (OCI) (fully paid) reflect investment in unquoted equity securities. These equity shares are designated as FVTOCI as they are not held for trading purpose and are not in similar line of business as the Company. Thus disclosing their fair value fluctuation in profit and loss will not reflect the purpose of holding.

(b) A description of the Company''s financial instrument risks, including risk management objectives and policies is given in Note 42. The methods used to measure financial assets reported at fair value are described in Note 42.

(c) The debt securities inclusing bonds and debentures are meeting Solely Payment of Principal and Interest(SPPI) test and are held in a business model whose objective is to hold the invetsment till maturity are designated as amortised cost.

(a) In determining the allowances for credit losses of trade receivables, the Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The expected credit loss allowance is based on the ageing of the receivables that are due and rates used in the provision matrix.

(b) For trade receivable outstanding from related parties (refer note 41)

(c) There are no trade or other receivable which are either due from directors or other officers of the Company either severally or jointly with any other person.

(i) Qualified Institutional Placements:

During the year ended 31 March 2024 the company has issued 24,051,165 equity shares of face value of H 10 each to 38 qualified institutional buyers at the issue price of H 576/- per equity share (including a premium of H 566/- per equity share) aggregating to H 1,385.35 crores. The aforesaid issuance of equity shares was made through a Qualified Institutions Placement (''QIP'') in terms of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 as amended, Section 42, Section 62, and other relevant provisions of the Companies Act, 2023 (as amended). Pursuant to the Qualified Institutional Placement, the paid-up equity share capital of the Company now stands increased to H 278.04 crores comprising of 278,038,567 fully paid-up equity shares net of shares held by ESOP trust.

(ii) Shyam Metalics Employees Welfare Trust:

During the year ended 31 March 2024 the Company has formed Shyam Metalics Employee Welfare Trust for the implementation of its ESOP scheme (refer note 39). During the year the trust has acquired 1,090,000 shares from the market, which has accordingly been presented on a net basis here.

d) Rights/preferences/restrictions attached to equity shares

(a) The Company has only one class of equity shares having a par value of H 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees.

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

(g) No class of shares have been issued as bonus shares or for consideration other than cash by the Company during the period of five years immediately preceding the current year end.

(h) Shares reserved for issue under options

For details of shares reserved for issue under the share based payment plan of the company, please refer note 39.

(i) No class of shares have been bought back by the Company during the period of five years immediately preceding the current year end.

(j) Dividend

The final dividend on shares is recorded as a liability on the date of approval by the shareholders and interim dividend are recorded as a liability on the date of declaration by the Company''s Board of Directors. Income tax consequences of dividends on financial instruments classified as equity will be recognized according to where the entity originally recognized those past transactions or events that generated distributable profits.

The Company declares and pays dividends in Indian Rupees. Companies are required to pay/ distribute dividend after applicable withholding income taxes. The remittance of dividends outside India is generally governed by Indian law on foreign exchange and is also subject to withholding tax at applicable rates.

(a) Out of the total dividend distributed in FY 2022-23 and FY 2023-24 an amount of H 0.09 Crores (31 March 2023: H 0.54 crores) is unpaid and is lying in our bank accounts earmarked for dividend payment. (Please refer note 14)

(b) Proposed dividend on equity shares amounting to H 2.70 per equity share is subject to the approval of the Members of the Company at the ensuing Annual General Meeting and has consequently not been recognised as liability as at the Balance Sheet date.

(a) Commercial Vehicle loan - Hire Purchase loans are repayable in monthly installments and secured by assets purchased there again.

(b) Cash credit facilities from banks carry interest ranging between 7.80% p.a. - 8.90% p.a. (31 March 2023 : 6.70% p.a. - 9.05% p.a.), computed on a daily basis on the actual amount utilised, and are repayable on demand. These are secured by way of hypothecation of the Company''s entire current assets (excluding investments) and further secured by second charge on property, plant and equipments of the Company.

(c) Short-term demand loan (working capital demand loan) has been availed from banks for financing of the working capital requirement for a period of 60 - 90 days. The rate of interest on these facilities ranges between 7.10% p.a. - 7.35% p.a. (31 March 2023: 7.25% p.a. - 7.40% p.a.) and is payable at monthly rests on the 1^st day of the subsequent month/at maturity, as applicable. These are secured by way of hypothecation of the Company''s entire current assets (excluding investments) and further secured by second charge on property, plant and equipments of the Company.

(d) During the year the Company has not defaulted on any repayment of borrowings.

36 Earnings per equity share

The Company''s Earnings Per Share (EPS) is determined based on the net profit / (loss) attributable to the shareholders of the company. Basic earnings per share is computed using the weighted average number of shares outstanding during the year. Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during that particular year including share options, except where the result would be anti-dilutive.

38 Employee benefits

(a) Defined contribution plans

The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees towards Provident Fund, which is a defined contribution plan. The Company has no obligations other than to make the specified contributions. The contributions are charged to the Statement of Profit and Loss as they accrue. The amount recognised as an expense towards contribution to Provident and Pension Fund for the year aggregated to H 7.85 crores. (31 March 2023: H 5.60 crores)

(b) Defined benefit plans

The Company operates one post-employment defined benefit plan (i.e., gratuity). The gratuity plan entitles an employee, who has rendered at least five years of continuous service, to receive 15 days basic salary for each year of completed service at the time of retirement/exit. Gratuity scheme is not funded by any plan assets.

Inherent risk

The plan is defined benefit in nature which is sponsored by the Company and hence it underwrites all the risk pertaining to the plan. In particular, this exposes the Company, to actuarial risk such as adverse salary growth, change in demographic experience, inadequate return on underlying plan assets. This may result in an increase in cost of providing these benefits to employees in future. Since the benefits are lump sum in nature, the plan is not subject to longevity risk.

39 Share-based payments

(a) Description of share-based payment arrangements:

The Company instituted the SMEL Performance Scheme (ESOP 2023) on 25^th September 2023 and SMEL Loyalty Scheme on 27^th September 2023 which were approved by the Board of Directors and the shareholders of the Company. In accordance to the scheme the company has granted 5,50,698 options to the employees of the company and 5,42,041 options to the employees of its wholly owned subsidiary company, Shyam Sel and Power Limited. The Plan enables grant of stock options to the eligible employees of the Company and its subsidiaries. Further, the stock options to any single employee under the Plan shall not exceed 1% of the issued capital of the Company, at the time of grant of options, during the tenure of the Plan, subject to compliance with applicable law. The options granted under the Plan have a maximum vesting period of 4 years. The cost of options granted to the employees of the Company are recorded in accordance with Ind AS 102 Share-based payments, and is subsequently reimbursed to the Company by its Subsidiary Company.

40 Commitments and contingent liabilities (a) Capital commitments
Particulars	Year ended 31 March 2024	Year ended 31 March 2023
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)	171.31	250.62
	171.31	250.62
(b) As at 31 March 2024 the Company has commitments of H 53.00 crores (31 March 2023 H 115.00 crores) relating to further investments into various AIFs. (c) Contingent liabilities
Particulars	Year ended 31 March 2024	Year ended 31 March 2023
Claims against the company not acknowledged as debt:
Excise duty	7.70	7.70
Service tax	0.09	0.09
Goods and service tax	2.81	0.87
Customs duty	13.24	13.39
Income tax	129.77	-
Electricity duty (net of protest payment of H 6.57 crores)	59.17	-
Others	1.93	-
Other money for which the Company is contingently liable:
Unredeemed bank guarantees	37.70	50.66
Bills receivable discounted with banks	36.30	5.44
	288.71	78.15

Notes:

(a) In the ordinary course of business, the Company faces claims and assertions by various authorities. The Management of the Company

assesses such claims and assertions and monitors the legal environment on an on-going basis with the assistance of external legal counsel, wherever necessary. The Company records a liability for any claims where a potential loss is probable and capable of being estimated and discloses such matters in its financial statements, if material. For potential losses that are considered possible, but not probable, the Company provides disclosure in the financial statements but does not record a liability in its accounts unless the loss becomes probable.

(b) It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect to the above pending resolution of the respective proceedings. The management of the Company remains fairly confident of a favorable outcome and therefore, does not foresee any material financial liability devolving on the Company and accordingly, no provision has been made in these financial statement.

(c) The amounts disclosed above represent the best possible estimates arrived at on the basis of available information and do not include any penalty payable.

Notes: Names of related parties and description of relationship with the Company (where transactions have taken place during the year, except for control relationships where parties are disclosed irrespective of transactions)

Terms and conditions of transactions with related parties:

The sales and purchase from related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balance at the year-end are unsecured and interest free and settlement occurs in cash. As at 31 March 2024, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (31 March 2023: NIL). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

B. Fair value hierarchy

Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2 : The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

C. Fair value measurements

(i) Short-term financial assets and liabilities are stated at carrying value which is approximately equal to their fair value.

(ii) Investments carried at fair value are generally based on market price quotations. Costs of unquoted equity instruments has been considered as an appropriate estimate of fair value because of a wide range of possible fair value measurements and cost represents the best estimate of fair value within that range.

(iii) Fair value of borrowings which have a quoted market price in an active market is based on its market price which is categorized as level 1. Fair value of borrowings which do not have an active market or are unquoted is estimated by discounting expected future cash flows using a discount rate equivalent to the risk-free rate of return adjusted for credit spread considered by lenders for instruments of similar maturities which is categorized as level 2 in the fair value hierarchy.

(iv) Management uses its best judgment in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realised or paid in sale transactions as of respective dates. As such, fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.

(v) There have been no transfers between Level 1 and Level 2 for the period ended March 31,2024 and period ended March 31,2023.

D. Risk management framework

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations and to support its operations. The Company''s financial assets include investments, loans, trade and other receivables, and cash & cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The company''s senior management oversees the management of these risks. The company''s senior management is supported by a financial risk committee that advises on financial risks and the appropriate financial risk governance framework for the Company. This financial risk committee provides assurance to the Company''s senior management that the Company''s financial risk activities are governed by appropriate policies and procedure and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each risk, which are summarised as below:

The Company has exposure to the following risks arising from financial instruments:

â¢ Credit risk

â¢ Liquidity risk, and

â¢ Market risk

(A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risks. Financial instruments affected by market risk include loans and borrowings in foreign currencies.

a) Interest rate risk

long term debt obligations with floating interest rates. The Company is carrying its borrowings primarily at variable rate. The Company expects the variable rate to decline, accordingly the Company is currently carrying its loans at variable interest rates.

b) Foreign currency risks

The Company''s functional currency is Indian Rupees (INR). The Company undertakes transactions denominated in foreign currencies; consequently, exposure to exchange rate fluctuations arise. Volatility in exchange rates affects the Company''s revenue from export markets and the costs of imports, primarily in relation to raw materials. The Company is exposed to exchange rate risk under its trade and debt portfolio. Adverse movements in the exchange rate between the Rupee and any relevant foreign currency result''s in increase in the Company''s overall debt position in Rupee terms without the Company having incurred additional debt and favourable movements in the exchange rates will conversely result in reduction in the Company''s receivables in foreign currency.

(B) Credit risk

Credit risk is the risk of financial loss arising from counter-party failure to repay or service debt according to the contractual terms or obligations. Credit riskencompasses boththe direct riskofdefault andthe riskofdeteriorationofcreditworthiness as wellas concentration risks.The Company has a policy of dealing only with credit worthy counter parties and obtaining sufficient collateral, where appropriate as a means of mitigating the risk of financial loss from defaults. Financial instruments that are subject to credit risk and concentration thereof principally consist of trade receivables, loans receivables, investments, cash and cash equivalents, derivatives and financial guarantees provided by the Company. None of the financial instruments of the Company result in material concentration of credit risk. The carrying value of these specific financial assets represents the maximum credit risk. The maximum exposure to credit risk was H 3,325.81 Crores and H 1,331.81 Crores as at March 31, 2024 and March 31, 2023 respectively, being the total carrying value of investments, other financial assets, trade receivables, cash and bank balances (including deposits) and loans.

(i) Trade receivables

Customer credit risk is managed by each business location subject to the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed and individual credit limits are defined in accordance with the assessment both in terms of number of days and amount. Any Credit risk is curtailed with arrangements with third parties.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 12. The Company does not hold collateral as security.

(ii) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investment of surplus funds are made only with approved counterparties . The Company''s maximum exposure to credit risk for the components of the balance sheet at March 31,2024 and March 31,2023 is the carrying amount as illustrated in Note 42.

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.''The Company monitors its risk of a shortage of funds by estimating the future cash flows. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, cash credit facilities and bank loans. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding and debt maturity within 12 months can be rolled over with existing lenders.

The Company has obtained fund and non-fund based working capital lines from various banks. Furthermore, the Company has access to funds from debt markets through commercial paper programs, non-convertible debentures and other debt instruments. The Company invests its surplus funds in bank fixed deposit and in mutual funds, which carry no or low market risk.

43 Capital Management

The Company''s capital management is intended to create value for shareholders by facilitating the meeting of long term and short term goals of the Company. The Company determines the amount of capital required on the basis of annual business plan coupled with long term and short term strategic investment and expansion plans. The funding needs are met through equity, cash generated from operations, long-term and short-term bank borrowings and issue of non-convertible debt securities. The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

Notes:

In order to achieve this overall objective, the Group''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2024 and year ended March 31,2023.

(a) Explanations have been furnished for change in ratio by more than 25% as compared to the preceeding year as stipulated in Schedule III to the Act.

(b) Variance is primarily on account of increase in balances of trade receivables and investments due to growth in operations of the Company.

(c) Variance is primarily due to reduction in overall borrowings during the year pursuant to the capital infusion via the Qualified Institutional Placement.

(d) Variance is primarily due to major repayment of borrowings made in the current year pursuant to the capital infusion via the Qualified Institutional Placement.

(e) Decrease is primarily due to increase in receivable balances as at the year end.

(f) Decrease is primarily due to increased procurements during the year on account of overall growth in operations of the Company.

(g) Definitions:

(i) Current Assets = Inventories current investments trade receivable cash & cash equivalents other current assets

(ii) Current Liabilities = Current borrowings trade payables other financial liability current tax liabilities provisions other current liability

(iii) Debt = Non-current borrowings and current borrowings.

(iv) Earning for available for debt service = Net Profit aftertaxes Non-cash operating expenses like depreciation and other amortisations Interest other adjustments like loss on sale of property, plant and equipments etc.

(v) Debt service = Interest & lease payments principal repayments

(vi) Working capital = Current assets - Current liabilities.

(vii) Earning before interest and taxes = Profit before exceptional items and tax Finance costs - Other Income

(viii) Capital employed = Tangible net-worth (*) debt deferred tax liabilities (net)

(*) Net worth means the aggregate of equity share capital and other equity inclusive of net gain consequent to fair valuation of certain assets on transition to Ind AS excluding intangible assets.

(ix) Income from investment= Net gain/loss on sale/fair value changes of Mutual Fund.

45 Details of Corporate Social Responsibility (''CSR'') expenditure

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief, COVID-19 relief and rural development projects. A CSR committee has been formed by the company as per the Act. The funds were primarily allocated to a corpus and utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013:

Nature of CSR activities:

Eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief, COVID-19 relief and rural development projects.

46 Segment reporting

(A) An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company''s other components, and for which discrete financial information is available. All operating segments'' operating results are reviewed regularly by the Company''s Chief Operating Decision Maker (CODM) i.e., Brij Bhushan Agarwal (Vice Chairman & Managing Director) and Mr. Deepak Agarwal (Chief Financial Officer), to make decisions about resources to be allocated to the segments and assess their performance.

The Company is primarily engaged in business of manufacture and sale of Ferro Alloys, Iron & Steel products and power generation. The Company''s manufacturing facilities are located in Odisha and products sold in the domestic and overseas market are manufactured in these here. Based on the dominant source and nature of risk and returns of the Company, its internal organisation and management structure and its system of internal financial reporting, business segment has been identified as the primary segment. The Company has only one business segment, viz., iron and steel.

The geographic information analyses the Company''s revenue by the Company''s country of domicile (i.e. India) and other countries. In presenting the geographic information, segment revenue was based on the geographic location of customers. For details of revenues on geographic location wise, refer note 28.

(B) Major customer

No single customer contributed 10% or more of the total revenue of the Company for the year ended 31 March 2024 and 31 March 2023.

47 Details related to borrowings secured against current assets

The Company has given current assets as security for borrowings obtained from banks. The Company duly submitted the required information with the banks on regular basis and the required reconciliation is presented below:

Note: The management of the Company is in the process of submitting the quarterly statements with the banks for the quarter

ended 31 March 2024.

48 Relationship with struck-off companies

The Company did not have any transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of

Companies Act, 1956 during the financial year

49 Other statutory information

(a) There were no amounts which were required to be transferred to the Investor Education and Protection Fund.

(b) The Company does not hold any Benami Property and hence there were no proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibitions) Act, 1988 and the Rules made there under, hence no disclosure is required to be given as such.

(c) The Company has not been declared as wilful defaulter as at the date of the balance sheet or on the date of approval of the financial statements, hence no disclosure is required as such.

(d) There are no charges against the companies which are yet to be registered or satisfaction yet to be registered with ROC beyond the statutory period, hence no disclosures are required as such.

(e) The Company does not have any investment in any downstream companies for which it has to comply with the number of layers prescribed under Clause (87) of Section 2 of the Companies Act, 2013 read with Companies (Restriction on number of layers) Rules, 2017, hence no disclosure is required as such.

(f) Borrowings taken by the company have been utilized only for the purpose for which it was obtained.

(g) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year, hence disclosure requirements for the same is not applicable.

(h) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(i) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Company shall:

i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

50 Code of Social Security, 2020

The Code on Social Security 2020 (''the Code'') relating to employee benefits, during the employment and post-employment, has received Presidential assent on September 28, 2020. The Code has been published in the Gazette of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. However, the effective date from which the changes are applicable is yet to be notified and rules for quantifying the financial impact are also not yet issued. The Company will assess the impact of the Code and will give appropriate impact in the financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published. Based on a preliminary assessment, the entity believes the impact of the change will not be significant.

51 Figures of previous years have been regrouped / rearranged / rectified wherever necessary to make them comparable with the current periods figures

Mar 31, 2023

Initial Public Offer :

The Company had made an Initial Public Offer (IPO), during the year ended March 31, 2022 for H2,97,05,880 equity shares of H10 each, comprising of a fresh issue of H2,14,70,588 equity shares by the Company and H82,35,292 equity shares offered for sale by selling shareholders. The Equity shares were issued at a price of H306 per share (including a Share Premium of H296). Of the total equity shares, H3,00,000 equity shares were reserved for eligible employees at a discount of H15 per share. Total Share Premium received from IPO (net of employee discount) is H635.32 crores reduced by the Company''s share of IPO related expenses of H31.22 Crores.

Rights/preferences/restrictions attached to equity shares

The Company has only one class of equity shares having a par value of H10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees.

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

(iii) Performance Obligation

The company recognises revenue from sale of goods at the point in time when control of the goods is transferred to the customers, generally on delivery of the goods and the performance obligation of the company is satisfied upon delivery of the goods to the customers.

Note 39 - Significant accounting judgments, estimates and assumptions

The preparation of the Company''s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgments

In the process of applying the Company''s accounting policies, management has made the following judgments, which have the most significant effect on the amounts recognised in the financial statements:

Useful Life

In preparation of the financial statements, the Company makes judgments, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and the associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and the underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and future periods affected. Significant judgments and estimates relating to the carrying values of assets and liabilities include useful lives of property, plant and equipment and intangible assets, impairment of property, plant and equipment, intangible assets and investments, provision for employee benefits and other provisions, recoverability of deferred tax assets, commitments and contingencies.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using other valuation techniques. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm''s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset''s performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes.

Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied with the number of years of service.

The weighted average duration of the defined benefit plan obligations at the end of the reporting period is 5.67 years (31st March 2022 - 5.86 years)

These assumptions were developed by management with the assistance of independent actuarial appraisers. Discount factors are determined close to each year end by reference to government bonds of relevant economic markets and that have terms of maturity approximating to the terms of the related obligation. Other assumptions are based on management''s historical experience.

(i) Short-term financial assets and liabilities are stated at carrying value which is approximately equal to their fair value.

(v) There have been no transfers between Level 1 and Level 2 for the period ended March 31, 2023 and period ended March 31, 2022.

Note 43 - Financial risk management objectives and policies

(A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market

prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risks. Financial instruments affected

by market risk include loans and borrowings in foreign currencies.

a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long term debt obligations with floating interest rates. The Company is carrying its borrowings primarily at variable rate. The Company expects the variable rate to decline, accordingly the Company is currently carrying its loans at variable interest rates.

b) Foreign currency risks

The Company''s functional currency is Indian Rupees (H). The Company undertakes transactions denominated in foreign currencies; consequently, exposure to exchange rate fluctuations arise. Volatility in exchange rates affects the Company''s revenue from export markets and the costs of imports, primarily in relation to raw materials. The Company is exposed to exchange rate risk under its trade and debt portfolio.

Adverse movements in the exchange rate between the Rupee and any relevant foreign currency result''s in increase in the Company''s overall debt position in Rupee terms without the Company having incurred additional debt and favourable movements in the exchange rates will conversely result in reduction in the Company''s receivables in foreign currency.

B Credit risk

The Company has a policy of dealing only with credit worthy counter parties and obtaining sufficient collateral, where appropriate as a means of mitigating the risk of financial loss from defaults. Financial instruments that are subject to credit risk and concentration thereof principally consist of trade receivables, loans receivables, investments, cash and cash equivalents, derivatives and financial guarantees provided by the Company. None of the financial instruments of the Company result in material concentration of credit risk.

The carrying value of financial assets represents the maximum credit risk. The maximum exposure to credit risk was H1331.81 Crores and H987.00 Crores as at March 31,2023 and March 31,2022 respectively, being the total carrying value of trade receivables, balances with bank, bank deposits, investments in debt securities and other financial assets.

(i) Trade receivables

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 10. The Company does not hold collateral as security."

(ii) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investment of surplus funds are made only with approved counterparties . The Company''s maximum exposure to credit risk for the components of the balance sheet at March 31,2023 and March 31,2022 is the carrying amount as illustrated in Note 42.

(C) Liquidity risk

(i) Carrying value of Right-of-use assets by class:

The Company has lease contracts for land and buildings used in its operations. For Buildings the lease term generally varies between 2 to 5 years and for land it can extend upto 90 years.The Company''s obligations under its leases are secured by the lessor''s title to the leased assets.

Set out below are the carrying amounts of right-of-use assets recognised and the movement during the period:

Disclosure of Related Party Transactions provides information about the Company''s structure. The following tables provide the total amount of transactions that have been entered into with related parties for the relevant financial year.

Terms and conditions of transactions with related parties:

The sales and purchase from related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balance at the year-end are unsecured and interest free and settlement occurs in cash. For the period ended 31st March 2023, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (31st March 2022: NIL). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

"In order to achieve this overall objective, the Group''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

No changes were made in the objectives, policies or processes for managing capital during the year ended March 31,2023 and year ended March 31,2022.

Note 50 - Details of CSR expenditure:

# Explanation for Variance more than 25% - Higher revenue and higher purchases as compared to the previous financial year and also increase in debt during the current financial year has led to the variance in ratios more than 25% in FY 2022-23 as compared to the FY 2021-22.

Definitions:

(a) Earning for available for debt service = Profit before taxes Non-cash operating expenses like depreciation and other amortisations Interest other adjustments like loss on sale of Fixed assets etc

(b) Debt service = Interest & Lease Payments Principal Repayments

(d) Net sales = Revenue from Operations less Other Operating Revenue

(e) Average trade receivables = (Opening trade receivables balance Closing trade receivables balance) / 2

(f) Net purchases = Gross Purchases - Purchase Return

(g) Average trade payables = (Opening trade payables balance Closing trade payables balance) / 2

(h) Working capital = Current assets - Current liabilities.

(i) Earning before interest and taxes = Profit before exceptional items and tax Finance costs - Other Income

(j) Capital Employed = Tangible Net Worth* Total Debt Deferred Tax Liability * Net worth means the aggregate of equity share capital and other equity inclusive of net gain consequent to fair valuation of certain assets on transition to Ind AS excluding intangible assets.

(k) Income from investment= Net gain/loss on sale/fair value changes of Mutual Fund.

Note 53 - Segment Reporting

As per Ind AS 108 "operating segments" , specified under section 133 of the Companies Act, 2013, the Company is predominantly engaged in a single reportable segment of Iron and Steel.

Note 54 - Long Term and Derivative Contract

The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.

Note 55 - Disclosure of Transactions with Struck off Companies

The Company did not have any material transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the financial year

Note 56 - Investor Education and Protection Fund

There were no amounts which were required to be transferred to the Investor Education and Protection Fund.

Note 57 - Other Disclosures Additional Regulatory Information

Amended Schedule III requires additional regulatory information to be provided in financial statements.

a) Details of Benami Property held : The Company does not hold any Benami Property and hence there were no proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibitions) Act, 1988 and the Rules made there under, hence no disclosure is required to be given as such.

b) Wilful Defaulter : The Company has not been declared as wilful defaulter as at the date of the balance sheet or on the date of approval of the financial statements, hence no disclosure is required as such.

c) Registration of Charges or Satisfaction with Registrar of Companies (ROC) : There are no charges against the companies which are yet to be registered or satisfaction yet to be registered with ROC beyond the statutory period, hence no disclosures are required as such.

d) Compliance with number of layers of companies : The Company does not have any investment in any downstream companies for which it has to comply with the number of layers prescribed under Clause (87) of Section 2 of the Companies Act, 2013 read with Companies (Restriction on number of layers) Rules, 2017, hence no disclosure is required as such.

e) Utilization of Borrowings : Borrowings taken by the company have been utilized only for the purpose for which it was obtained.

f) Details of Crypto Currency or Virtual Currency : The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year, hence disclosure requirements for the same is not applicable.

g) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries."

h) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Company shall:

i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries."

Note 58 Figures of previous years have been regrouped / rearranged / rectified wherever necessary to make them comparable with the current periods figures.

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