(i) Terms/rights attached to equity shares

The Company has only one class of ordinary shares (equity shares) having at par value of H 2/- each. Each shareholder of ordinary shares (equity shareholders) is entitled to one vote per share. The Company declares and pays dividend if any in Indian Rupees. The dividend proposed if any by the Board of Directors is subject to approval of the share holders in the ensuing annual general meeting except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distributions of all preferential amounts, in the proportions to their share holdings.

Rupee Loan from Financial Institution

Rupee Term Loan of H 519.00 crore which was sanctioned by the Tata Capital Limited and its assignees(namely Piramal Enterprises Limited, Aditya Birla Finance Limited, Arka Fincap Limited and Tourism Finance Corporation India Limited) are being repaid as per the repayment schedule during the period under audit for the FY 2024-25.

i) Rupee Term Loan of H 45.00 crore had been sanctioned by the Tourism Finance Corporation of India Limited towards reimbursement of capex expenditure incurred in projects of the company.

ii) Tata Capital Limited had enhanced the working Capital Demand Loan from H 40.00 crore to H 140.00 crore towards working capital requirements of the company.

iii) Piramal Capital & Housing Finance Limited and Arka Fincap Limited have sanctioned Working Capital Demand Loan of H 60 crore(H 30 crore from each lender) towards working capital requirements of the company.

Further during the period under audit FY 2024-25, Kotak Mahindra Bank has sanctioned various working capital facilities aggregating up to H 100 crore towards working capital requirements of the company. Out of that, H 40 crore has been disbursed during this Financial Year 2024-25.

Primary security of the aforesaid loans:

a. Rupee Term Loans from various lenders are secured by 1^st pari passu charge over the entire fixed assets(both present and future) and 1^st pari passu charge over the entire current assets(both present and future) of the Company's units at Raniganj and Durgapur in the state of West Bengal and Durg in the state of Chattisgarh.

b. Working Capital Loan/Working Capital Demand Loan from various lenders are secured by 1^st pari passu charge over the entire moveable and immovable of fixed assets (both present and future) and 1^st pari passu charge over the entire current assets( both present and future) of the Company's units at Raniganj and Durgapur in the state of West Bengal and Durg in the state of Chattisgarh.

The above loans are further secured as follows:

i) Personal Guarantees of Promoter Directors of the Company.

ii) Pledge of 15,39,11,165 number of equity shares of the Company held by the promoters.are against the sanctioned term loan of H 519 crore(Present outstanding H 299.13 crore) by Tata Capital Limited and Co lenders and Working Capital Demand Loan of H 40 crore given by Tata Capital Limited.

Note 35A : Contingent liabilities

In the ordinary course of business, the Company faces claims and assertions by various parties. 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.

The following is a description of claims and assertions where a potential loss is possible, but not probable. The Company believes that none of the contingencies described below would have a material adverse effect on the Company's financial condition, results of operations or cash flows.

Note 36 :

Deferred tax liabilities are recognised for all deductible temporary differences and any unused tax credits and unused tax losses. Deferred tax liabilities are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences,and the carry forward of unused tax credits and unused tax losses. Deferred tax liabilities are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences,and the carry forward of unused tax credits and unused tax losses can be utilized. Deferred tax is measured based on the tax rates and the the tax laws enacted or substantively enacted at the balance sheet date and derecognized to the extent it is no longer probable that sufficient future taxable profits will be available against which such deferred tax liabilities can be realized. Deferred tax items are recognized in correlation to the underlying transaction either in the Statement of Profit and Loss or other comprehensive income or directly in equity.

Note 37 : Leases

The Company determines whether an arrangement contains a lease by assessing whether the fulfillment of a transaction is dependent on the use of a specific asset and whether the transaction conveys the right to use that asset to the Company in return for payment. Where this occurs, the arrangement is deemed to include a lease and is accounted for either as finance or operating lease.

Leases are classified as finance leases where the terms of the lease transfers substantially all the risks and rewards of ownership to the lessee, because of the lease period of land 90 or more years then the fair value computation for finance lease will have no material difference comparing to its carrying value, so that the company considered as finance lease.

The Company as lessee Finance Lease:

Finance Leases are capitalised at the commencement of lease, at the lower of the fair value of the property or the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in the statement of profit and loss over the period of the lease.

Note 38 :

During the year, the Company has not recognised any income under the scheme for the following subsidies / incentives receivable from the Government of West Bengal under West Bengal Incentive Scheme aggregating to H Nil (H Nil): Pre Goods & Service Tax (GST), the company was enjoying certain benefits under Industrial Promotion Scheme of State Government Post GST, pending notifications by the State Government on prudent basis.

Defined benefit plans Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than The Provisions of Payment of Gratuity Act, 1972. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

Liabilities with regard to these defined benefit plans are determined by actuarial valuation, performed by an external actuary at each Balance Sheet date using the projected unit credit method. These defined benefit plans expose the Company to actuarial risks, such as longevity risk, interest rate risk and market risk.

The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or liability. Gains and losses through re-measurements of the net defined benefit liability/(asset) are recognized in other comprehensive income and are not reclassified to profit or loss in subsequent periods. The actual return of the portfolio of plan assets, in excess of the yields computed by applying the discount rate used to measure the defined benefit obligation is recognized in other comprehensive income. The effect of any plan amendments is recognized in net profit in the Statement of Profit and Loss.

The disclosures required under Indian Accounting Standard 19 'Employee Benefits' notified in the Companies (Accounting Standards) Rules 2006 are given below:

The remuneration to the Key managerial personnel does not include the provisions made for gratuity and leave as they are determined on an actuarial basis for the Company as a whole.

## Guarantees were jointly obtained from Aditya Jajodia, Sanjiv Jajodia, Rajiv Jajodia & Gaurav Jajodia.

Figures in brackets denotes previous year amounts.

c) Terms and conditions of transactions with related parties

All Related Party Transactions entered during the the year were in ordinary course of the business and on arm's length basis. Outstanding balances at the year end are unsecured. For the year ended 31^st March,2025, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (31^st March,2024 NIL).

Note 44 : 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 operating plans and long-term product and other strategic investment plans. The funding requirements are met through equity and other long-term/short -term borrowings. The Company's policy is aimed at combination of short- term and long-term borrowings.

b) Fair value hierarchy

The table shown below analyses financial instruments carried at fair value, by valuation method. The different levels have been

defined below:

> Level 1: Level 1 hierarchy includes Financial Instruments measured using Quoted prices. This include listed equity instruments, mutual funds that have quoted price. The Fair Value of all equity instruments which are traded in 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.

Note 46 : Financial Risk Management Objectives And Policies

The Company is exposed to liquidity risk,market risk,credit 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. The 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:

(A) Liquidity Risk

Liquidity risk is the risk that the company will face in meeting its obligations associated with its financail liabilities. The Company's approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, management considers both normal and stressed conditions.

The Company maintained a cautions liquidity strategy, with a positive cash balance throughout the year ended 31^st March,2025 and 31^st March,2024. Cash flow from operating activities provides the funds to service the financial liabilities on a day-to-day basis.

(B) 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 interest risk and currency risk and other price risk. Financial Instrument affected by market risk include loans and borrowings in foreign currency.

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 not carrying its borrowings primarily at variable rate.

b) Currency risk

The Company is subject to the risk that changes in foreign currency values impact the companys export revenue and imports of raw material and property,plant and equipment.

The following table demonstrate the sensivity to a reasonable possible change in USD,EURO,JPY,Ruble,AUD,GBP and SEK exchange rates,with all other variables held constant. The impact on the Company's profit/(loss) is due to changes in the fair value of monetary assets and liabilities.

(C) 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 risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks.

The Company has a policy of dealing only with credit worthly counter parties and obtaining sufficient collateral, where apropriate 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 result in material concentration of credit risk.

The carrying value of financial assets represents the maximum credit risk. The maximum exposure to the credit risk was H 709.52 crores and H 465.29 crores as at March 31, 2025 and March 31, 2024 respectively, being the total carrying value of trade receivables,balances with bank, bank deposits,investments in debt securities and other financial assets.

Note 47 : Foreign Currency risk a) Hedged Foreign Currency Exposures :

Derivative instruments used by the Company include forward exchange contracts. These financial instruments are utilised to hedge future transactions and cash flows. The Company does not hold or issue derivative financial instruments for trading purposes. All transactions in derivative financial instruments are undertaken to manage risks arising from underlying business activities.

Note 50 : Fair Valuation of Investments:

Ind AS 101 provides an option on transition date to consider fair value of the investment in joint venture as on the date of transition as the deemed cost as cost for the purpose of Para 10 of Ind AS 27. Accordingly the Company has valued as a deemed cost. The company has prudently brought down the value of its investments in two of its joint ventures viz Andal East Coal Co Pvt Ltd and Rohne Coal Co Pvt Ltd as on 1^st April,2016 with a corresponding impact on Other Equity(Retained earnings) and also fair valued its investment of equity shares calcutta stock exchange as on 1^st April 2016 to arrive at the book value with a corresponding impact on Other Equity(Retained earnings). However the company has fully provided for the diminution in the value of investments of two joint venture companies.

Explanation for variance more than 25%:

a. Mainly due to decrease in turnover as well as increase in debtors during the year..

b. Mainly due to substantial reduction in repayment of borrowings as well as decrease in operating profit during the year..

c. Mainly due to reduction of short term liability and increase in current assets during the year..

d. Mainly due to decrease in net profit as well as turnover during the year.

e. Mainly due to decrease in net profit during the year.

f. Mainly due to decrease in operating profit during the year..

g. Mainly due to decrease in net profit as well as increase in equity during the year.

h. Mainly due to increase in working capital as well as decrease in turnover during the year.

Note 53 :

The Indian Parliament has approved the Code on Social Security,2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment had released draft rules for the Code on Social Security,2020 on November 13, 2020. The Company will assess the impact and its evaluation once the subject rules are notified. The Company will give appropriate impact in its financial statements in the period in which the Code becomes effective and the related rules to determine the financial impact are published.

Note 54 :

Balances of some parties(including ofTrade receivables and Trade payables) and loans and advances are subject to reconciliation/confirmations from the respective parties. The management does not expect any material differences affecting the financial statement for the year.

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 the Companies Act, 1956 during the financial year.

Note 56 : Corporate Social Responsibility (CSR)

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 rural development project, promoting health care including preventive health care and promoting education, development of rural sports. A CSR committee has been formed by the company as per the Act. The funds were primarily utilized through the year on these activities which are specified in Schedule VII of the Companies Act,2013.

Note 57 : Other disclosure requirements as notified by MCA pursuant to amended Schedule III:

(a) Details of Benami Property held: The company does not hold any Benami property, hence there were no proceeding initiated or pending against the company for holding any benami property under The Benami Transactions (Prohibitions) Act, 1988 and the Rules made thereunder, 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 Satifaction with Registrar of Companies (ROC): There were no charges against the company which are yet to be registered or satification yet to be registered with ROC beyond the Statutory period, hence no disclosures is required as such.

(d) Compliance with Number of Layers of Companies: The company, if applicable, has complied 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) 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 no disclosure is required for the same.

(f) Disclosure in Relation to Undisclosed Income: During the year the Company has not surrendered or disclosed any income in the tax assessments under the Income Tax Act 1961 ( Such as, search or survey or any other relevants provisions of the Income Tax Act 1961 ). Accordingly, there are no transactions which are not recorded in the books of accounts

(g) Property Plant & Equipment: Title deeds of immovable properties in the case of freehold land, (for description refer note no 3) are held in the name of the Company. In case of leasehold land (refer note no 3A) where the company is the lessee, the lease agreements are duly executed in favour of the Company (being a lessee).

(h) Borrowing Secured against Current Assets: The Company has borrowings from bank and financial institutions on the basis of security of current assets. The quarterly returns or statements of current assets filed by the company with bank and financial institutions are in agreement with the books of account.

(i) Utilisation of borrowed funds: All the borrowed funds have been utilised for the purpose they are sanctioned for. There is no diversion in the utilisation of such funds. Thus no disclosures are required.

Note 58: Figures of previous years have been regrouped/ rearranged/ rectified wherever necessary.