* Out of which documents relating to claim of ? 627.00 Thousand are currently not available with the Company.

** Out of which documents relating to claim of ? 306.10 Thousand are currently not available with the Company.

Note:

In respect of Item no. (a) (i) above, the Company has been advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary. Future cash outflow on (a) (i) & (ii) above is determinable only on the receipt of judgment / decision pending with respective authorities / department / Hon'ble court and or completion of negotiations / settlement.

Note - 29

Provision for employee benefits (i) Gratuity

The Company contributes to defined benefit schemes for Gratuity which is administrated through duly constituted and approved independent trust. The liability for Gratuity and Leave encashment is determined on the basis of actuarial valuation made at the year end.

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit (PUC) Method as prescribed by the Ind AS-19 - 'Employee Benefits', which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measure each unit separately to build up final obligation.

(ii) Compensated Absences/Leave Encashment:

The Company also extends defined plans in the form of Compensated absences/leave encashment to employees. Provisions for compensated absences is made on actuarial valuation basis.

The company is exposed to various risks as regards its obligation towards gratuity benefit and leave salary which are as follows:

(i) Interest Rate Risk, (ii) Liquidity Risk, (iii) Salary Escalation Risk, (iv) Regulatory Risk, (v) Market Risk and (vi) Investment Risk

Note - 30

Financial Instruments : Fair values Measurement

(A) Accounting Classification and Fair Value Hierarchy

Carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy, are presented below. It does not include the fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments:

Level 1: Inputs are quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date;

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

Level 3: If one or more significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted

equity instruments and certain debt instruments which are valued using assumptions from market participants.

Set out below, is a comparison by category of the carrying amounts and fair value of the Company's financial instruments.

Key Inputs:

i Listed Equity Investments (other than Subsidiaries, Joint Ventures and Associates): Quoted Bid Price on Stock Exchange (Level 1)

ii Mutual Funds: Based on Net Asset Value of the Scheme (Level 2)

iii The management assessed that fair value of cash and bank balances, trade receivables, loans, trade payables, borrowings , other financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

iv. During the reporting period ending 31st March, 2024 and 31st March, 2023, there was no transfer between Level 1 and Level 2 fair value measurement.

Note - 31

Financial Instruments : Financial Risk Management

The Company's activities exposes it to various risk such as market risk, liquidity risk and credit risks. This section explains the risks which the Company is exposed to and how it manages the risks.

The Board of Directors ('Board') oversee the management of these risks through its Risk Management Committee. The Company's Risk Management Policy has been formulated by the Risk Management Committee and approved by the Board. The Policy articulates on the Company's approach to address uncertainties in its endeavor to achieve its stated and implicit objectives. It also prescribes the roles and responsibilities of the Company's management, the structure for managing risks and the framework for risk management. The framework seeks to identify, assess and mitigate risks in order to minimize potential adverse effects on the Company's financial performance.

The Board of Directors reviews and agrees on policies for managing each of these risks, which are summarized below. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.

1 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 receivable from customers and loans and advances.

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

(i) Trade receivables

Exposure to credit risk is influenced mainly by the individual characteristics of each customer 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.

However Company is providing credit period of 15 days only to some specific customers and in other case, Company has collecting advance against sales. Therefore on reporting date all debtors were realized. Accordingly, requirement of provision is not arised.

(ii) Financial assets other than trade receivables

Credit risk from balances with banks and financial institutions is managed by the CFO in accordance with it's policy. Surplus funds are parked only within approved investment categories . Investment category is periodically reviewed by the Company's Board of Directors.

The Company held cash and cash equivalents of ? 1604.42 Thousand as on 31st March, 2024 (Previous year ' ? 122.99 Thousand). The cash and cash equivalent's are held with bank counterparties with good credit ratings.

2 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 damages to the Company's reputation.

Maturity profile of financial liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

Company's surplus funds are more than to total borrowings outstanding as on 31st March, 2024. Hence, the liquidity risk is very low.

3 Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company's income or the value of its holdings of financial instruments.

Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt.

Management exposed to market risk primarily related to the market value of investments and interest rate risk. Thus, our exposure to market risk is function of investing and borrowing activities only.

4 Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in interest rates.

Exposure to interest rate risk

Company's interest rate risk arises from borrowings. The interest rate profile the Company's interest bearing financial instruments as reported to the management of the Company.

Capital Management

For the purpose of the Company's capital management, capital includes issued capital and other equity reserves. The primary objective of the Company's Capital Management is to maximize shareholders value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

Additional Information Details :

1 The declaration filed under the Urban Land (Ceiling and Regulation) Act, 1976 in respect of the Company's holding in excess of the ceiling prescribed under the said Act and the application for exemption filed under section 20 of the said act, to retain these lands are under consideration of the concerned authorities.

2 The Company has only one reportable segment of activity namely manufacture of "High/Medium / Low Carbon Ferro Manganese and Silico Manganese Slag".

3 Deferred tax assets for unused tax loss carry forward or unused tax credit if, and only if, it is considered probable that there will be sufficient future taxable profit against which the loss or credit carry forwards can be utilized.

However In the opinion of the management, there is no probability of taxable profit in near foreseeable future. Therefore deferred tax asset has not been recognised.

Detail of deferred tax assets (DTA) is as follows:

4 The Company was engaged in the manufacturing of Ferro manganese (high carbon and medium carbon) and silico manganese through electro metallurgical process since inception. The Company discontinued this business in 2011 on account of a number of business challenges including high volatility, higher input costs, raw material shortages etc. The Company had also set up a solid waste recovery division to process the slag which was generated during the production of Ferro alloys. After the Ferro alloys business was discontinued, the company has continued to produce low Ferro manganese (slag) through its profitable slag recovery process. The Company has been actively exploring other business opportunities since it discontinued the Ferro alloys business.

The Company has exploring various possibilities for developing the land including the development of a large warehousing facility and other commercial real estate. The Company's efforts to date have not yielded a commercially viable proposition, although it is continuing to put in efforts in this regard. The Company has invested its surplus funds in bank deposits and financial securities, and the income from these investments exceeds the income that the company generates from its curtailed business operations.

During the previous financial years and as well as in current financial year company's financial assets and financial income constitute more than 50% of the total assets and income.

Thus, management sought clarification from RBI on meeting criteria applicability of section 45-IA of RBI Act, 1934 through letter dated 23rd February, 2022, which stated that company's principal business is not to undertake financial activities and expects its financial assets and financial income to be in excess of its business assets and income from operations.

In response to above RBI clarified in letter dated 15th March, 2022 that company is meeting the principal business criteria for NBFCs as specified in Bank's press release 99/1269 dated April 8, 1999 as on 31st March, 2021.

Considering above, Company is required to obtain NBFC registration under section 45-IA of RBI Act, 1934 and the company has initiated process of applying for registration of NBFC under section 45-IA of RBI Act, 1934. Further no communication has been recevied from RBI and therefore company is maintaining Status quo.

5 The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

6 The Company do not have any transactions with companies struck off.

7 The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

8 The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

9 The figures of previous year have been regrouped and rearranged wherever necessary.

As per our report of even date attached

For Parekh Sharma & Associates For and on behalf of the Board

Chartered Accountants Firm Regn. No. 129301W