(c) Rights, preferences and restrictions attached to shares Equity Shares

(i) The Company has one class of equity shares having a par value of '10 per share. Each shareholder is entitled for one vote per share held. The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing annual general meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are entitled to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to the number of equity shares held by the shareholders.

(ii) The Company has not reserved any shares for issue under options and contracts/commitments for the sale of shares/ disinvestment.

(iii) The Company for the period of five years immediately preceding the date of Balance Sheet has following shares allotment/issue for consideration otherwise than in cash :

(a) Cancelled 6,54,96,896 no. of Equity Shares pursuant to the Scheme of Amalgamation and Slump Sale.

(b) Allotted 22,54,55,517 fully paid up Equity Shares of Face Value ' 10/- each pursuant to the Scheme of Amalgamation and Slump Sale. Post cancellation of 6,54,96,896 Equity Shares and fresh allotment of 22,54,55,517 Equity Shares, the outstanding Issued, Subscribed and Paid-up number of Eqity Shares are 24,12,80,945 of Face Value ' 10/- each.

Nature and purpose of reserve

Securities Premium Account : The amount received in excess of face value of the equity shares is recognised in securities Premium Reserve. In case of equity-settled share based payment transactions, the difference between fair value on grant date and nominal value of share is accounted as securities premium reserve.

Capital Reserve : The excess of fair value of net assets acquired over consideration paid in a common control transaction is recognised as capital reserve. Where the consideration transferred exceeds the fair value of the net identifiable assets acquired and liabilities assumed, the excess is recorded as goodwill.

Retained Earnings : Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

Other Comprehensive Income : The effect of the remeasurement changes (comprising actuarial gains and losses) to the asset ceiling (if applicable) and the return on plan assets (excluding interest), is reflected in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. other comprehensive income (OCI) includes revenues, expenses, gains, and losses that have yet to be realized and are excluded from net income on an income statement. OCI represents the balance between net income and comprehensive income.

3. The above working capital loan from bank is secured by collateral security by pledge of Nil (P.Y. 5,10,500) equity shares of the Company held by promoters.

4. The above working capital loan is guaranteed by the personal guarantee of Sri C. P Agrawal, Sri Dinesh R Agarwal and Sri Nitin M Kandoi, Directors of the Company.

5 The above working capital loans from bank are bering interest @ 7.25% - 8.45% (P.Y. 7.80% -8.55% ) on cash credit account and @ 5.50% - 7.50% (P.Y. 5.50% - 8.00% ) on accepatnce.

6 The Company does not have any default as on the Balance Sheet date in repayment of loan or Interest.

Disclosure of outstanding dues of Micro and Small Enterprise under Trade Payables is based on the information available with the Company regarding the status of the suppliers as defined under the Micro, Small and Medium Enterprises Development Act, 2006. There is no undisputed amount overdue as on March 31, 2024, to Micro, Small and Medium Enterprises on account of principal or interest

(i) Defined contribution plans Provident fund

The contributions to the Provident Fund and Family Pension Fund of eligible employees are made to a Government administered Provident Fund i.e The Employees' Provident Fund amd Miscellaneous Provision Act 1952 and there are no further obligations beyond making such contribution.

(ii) Defined benefit plans Gratuity

The Company participates in the Employees' Group Gratuity-cum-Life Assurance Scheme of SBI Life Insurance Co. Ltd. and Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. Gratuity is payable to all eligible employees on death or on separation / termination in terms of the provisions of the Payment of Gratuity Act, 1972 (as amended from timt to time), or as per the Company's scheme whichever is more beneficial to the employees.

The liability for the Defined Benefit Plan is provided on the basis of a valuation, using the Projected Unit Credit Method, as at the Balance Sheet date, carried out by an independent actuary.

Assumed discount rates are used in the measurement of the present value of the obligation.

Amount recognised as expenses

Employer's Contribution to Provident Fund amounting to ' 238.34 lakhs (previous year 213.41 lakhs) has been included in Note 29 Employee Benefits Expenses.

Employer's Contribution to ESIC amounting to ' 64.87 lakhs (previous year 51.94 lakhs) has been included in Note 29 Employee Benefits Expenses.

Gratuity cost amounting to ' 271.68 lakhs (previous year 136.84 lakhs) has been included in Note 29 Employee Benefits Expenses.

The Company manages its capital to ensure that entities will be able to continue as going concerns while maximising the return to stakeholders through the optimisation of the debt and equity balance. The Capital structure of the Company consists of net debt and the total equity of the Company.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, long term-term borrowings, short-term borrowings, less cash and short-term deposits.

Note - 38 Financial risk management objectives and policies

The Company's principal financial liabilities, other than derivatives, comprise loans and borrowings and trade and other payables. The Company's principal financial assets include loans, trade and other receivables, and cash and short-term deposits that derive directly from its operations. The Company also holds FVTOCI investments and enter into derivative transactions. The Company is exposed to market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company seeks to minimise the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives is governed by the Company's policies approved by the board of directors, which provide written principles on foreign exchange risks, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments. The Company does not enter into or trade financial instruments including derivative financial instruments, for speculative purposes.

1 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. The Company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The Company enters into derivative financial instruments to manage its exposure to foreign currency risk and interest rate risk.

Foreign currency risk management

The Company is exposed to currency risk on account of its borrowings, Receivables for Exports and Payables for Imports in foreign currency. The functional currency of the Company is Indian Rupee. The Company manages currency exposures within prescribed limits, through use of forward exchange contracts. Foreign exchange transactions are covered with strict limits placed on the amount of uncovered exposure, if any, at any point in time.

Interest rate risk management

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market interest rates. The company's exposure to the risk of changes in market interest rates relates primarily to the Company's short-term debt obligations with floating interest rates.

Interest rate sensitivity analysis

The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

2 Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables from customers and loans and advances.

The carrying amount of following financial assets represents the maximum credit exposure:

Trade receivables and loans and advances.

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer and the geography in which it operates. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company monitors each loans and advances given and makes any specific provision wherever required.

Based on prior experience and an assessment of the current economic environment, Management believes there is no credit risk provision required. Also Company does not have any significant concentration of credit risk.

3 Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.

Management monitors rolling forecasts of the Company's liquidity position on the basis of expected cash flows. This monitoring includes financial ratios and takes into account the accessibility of cash and cash equivalents.

The Company has access to funds from debt markets through loan from banks and other debt instrument. The Company invests its surplus funds in bank fixed deposits.

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimare the fair values:

Fair value of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, working capital loan from banks approximate their carrying amounts largely due to the short term maturities of these instruments.

Financial instruments other than above are carried at amortised cost except certain assets which are carried at fair value.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique.

Level -1 : Quoted prices in active markets for identical assets or liabilities.

Level -2 : Other techniques for which all inputs which have a significants effects on the recorded fair value are observable.

Notes:

1 The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial results.

2 It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings as it is determinable only on receipt ofjudgements/decisions pending with various forums/authorities.

The Company's Gorkhapur unit has established its unit under attraction of financial incentives and other benefits of a scheme of State Government of Uttar Pradesh notified vide Government Order No. 1502/77-6-2006-10 tax/04 dated 1^st June, 2006 and which have been elaborated in Government Order No. 2941/77-6-2006-10 tax/04 dated 30^th November, 2006 and amended from time to time. The said scheme provides following financial incentives besides other benefits to the Industries established in the State after 1^st June, 2006. Company has complied with all the formalities required in this regard and has been declared an eligible unit under the scheme; as such the Company is entitled to get the following financial incentives:

a) Capital investment subsidy, additional capital investment subsidy and infrastructure subsidy @35% on fixed capital investment.

b) Reimbursement of freight paid on raw materials subject to maximum of 65% of the fixed capital investment.

c) Amount of payable Commercial Taxes to State Government (VAT at that time presently GST) to be converted into interest free loan, repayable after a period of 15 years.

State Government, after declaring the unit an eligible unit disbursed an amount of ' 24.28 crores as part payment of the subsidies in the year 2010, but thereafter refused to pay the balance amount of financial incentives. Having no option. Company moved to Hon'ble High Court of Allahabad Lucknow Bench in 2011 and after a long battle in court, finally Hon'ble

High Court vide its order dated 22.03.2018 directed State Government to pay all the incentives within three months time.

State Government instead complying with the order moved a special leave petition No. 19796 before the Hon'ble Supreme

Court which is pending for final disposal before the Hon'ble Supreme Court.

Financial Benefits to be received under the scheme are as under:

a) Company is eligible for incentives i.e. Capital investment subsidy @ 20% of fixed capital investment, infrastructure subsidy @ 10% of total fixed capital investment and 5% additional capital subsidy being the first unit in Purvanchal region totalling subsidy @ 35% on fixed capital investment. Company has claimed for ' 12,262.00 Lakhs against the capital investment made upto 31^st May, 2012. The incentive received of ' 2,428 Lakhs has been credited in fixed assets in the ratio of capital investment made. No provision has been made for the unrealised claim of ' 9,834 Lakhs in the books.

b) Reimbursement of freight paid on raw materials subject to maximum of 65% of the fixed capital investment. Company is eligible for reimbursement of freight paid on transportation of raw materials as freight subsidy on Iron Ore equivalent to the Railway freight. The total amount of freight subsidy is restricted to 65% of the total capital investment under the scheme that comes ' 22,775.00 lakhs, Since Company has already claimed ' 22,775.00 Lakhs till March, 2018 as such no amount is available to be claimed as freight subsidy during the year and onward,

c) Amount of payable Commercial Taxes to State Government (VAT at that time presently GST) to be converted into interest free loan, repayable after a period of 15 years.

Company is eligible for interest free loan equivalent to the amount of VAT, CST & GST laibility for 15 years and which shall be repayable after 15 years. The company has claimed as interest free loan amounting to ' 10,828.03 Lakhs up to 30^th June, 2017 on account of VAT upto 30^th June, 2017 Out of total claim of ' 10,828.03 Lakh, ' 9,255.64 Lakhs has not been deposited to Commercial Tax department in accordance with order of Hon'ble High Court of Allahabad in writ petiiton no. 8886/2011, however, ' 1,572.39 Lakhs have already been deposited before the said stay order.

Reason for difference

Statement of inventory submitted to the bank on the basis of estimated cost whereas the actual valuation of the same has been done afterwards at the time of quartelry result submitted to the Bank

Note - 46 11 Segment Reporting_

As per Ind AS 108 operating segment specified under section 133 of the companies Act 2013, the Company is predominately engaged in single reprting segment of Iron and Steel.

The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post employment benefits has received Presidential assent on 28^th September 2020. The Code has been published in the Gazette of India. However, the effective date of the Code is yet to be notified and final rules for quantifying the financial impact are also yet to be issued. In view of this, the Company will assess the impact of the Code when relevant provisions are notified and will record related impact, if any, in the period the Code becomes effective.

During the year the Income Tax Department has conducted a search operation. The Company has not disclosed or surrendered any income during the year in the tax assessment under the Income Tax Act, 1961.

No proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

The company do not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

Figures for the previous years have been regrouped / restated wherever necessary to conform to current year's presentation.