(c) The Company is a party to various legal proceedings in the normal course of business and does not expect the outcome of the proceedings to have any adverse effect on its financial conditions, results of operations or cash flows.

(d) The outflow of the resources in respect of pending disputed matters in respect of Sales Tax, Income Tax. VAT and Excise Duty would depend on the ultimate outcome of the disputes lying before various authorities amounting to Rs. 5245.10 Lakhs (previous year Rs. 5245.60 Lakhs) However company has made the provisions of Rs. 294.12 Lakhs. The Company has taken legal and other steps necessary to protect its position in respect of these claims.

Pending full utilization, the balance amount is held in Current/Fixed deposit /loan/advances accounts. There is Provision for doubtful advances to the tune of Rs. 10.925 Lakhs. Pending recovery of that advance, the amount available for deployment will be at lesser to that extent.

During the year 2006-07 the Company made a Follow on Public Issue and consequently raised an amount of Rs. 13100 Lakhs

The shareholders of the company at the Annual General Meeting held on 17th September, 2012 approved variation in utilization of follow on public offer proceeds, so that the company can also utilize the proceeds for. Manufacturing of SAW & ERW pipes at Chennai or at such other locations as may be decide d by the Board. Out of Rs. 13500 Lakhs. Rs. 8036 Lakhs will be utilized from the unutilized proceeds of public issue and balance Rs.5464 Lakhs will be from unutilized proceeds of GDR issue. The detail of utilization of proceeds of Rs. 13500 lakhs is given here above

36. The title deeds for land (freehold ), building, licenses, with respect to one location ie Murbad are in the process of being transferred in the name of the Company on amalgamation of Tungabhadra Holdings Private Limited. Stamp duty and other levies arising out of the same , if any, shall be accounted on determination and completion of transfer formalities.

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 effective date from which the changes are applicable is yet to be notified and the final rules are yet to be framed. The Company will carry out an evaluation of the impact and record the same in the financial statements in the period in which the Code becomes effective and the related rules are published.

42. In accordance with IND-AS 103 ‘Segment Reporting", segment information has been given in the consolidated financial statement of the Company and therefore, no separate disclosure on segment information is given in these financial statements.

43. Balance Confirmations-

a. The balance of Trade Payables, Trade Receivables, Loans and Advances, Deposits, Current Liabilities, Borrowings from others etc. are considered as per books of account, due to pending reconciliations by the management and thus direct confirmations were not sent to the parties. In the opinion of the management, since the amount due to/from these parties are fully payable/recoverable, no material difference is expected to arise at the time of settlement, requiring accounting effect in as on 31/03/2024.

b. The Company is currently in the process of settling the amounts of trade payable to Ess Jay Global Ventures Private Limited and trade receivable from Mango Capital LLC on a net basis, as per applicable law as applicable and after that necessary confirmation will be obtained from the parlies after the same.

Pursuant to the above, the Company had received a legal notice on 29/06/2023 from Ess Jay Global Ventures Private Limited to which the Company has sent a response on 30/06/2023. Accordingly, the company has determined that the net amount receivable from the group is Rs. 150 Lakhs which is under aforesaid reconciliation/legal dispute.

The company has received further communication in this regards from the Advocates of Ess Jay Global Ventures Private Limited on 12/08/2023 for which the company has provide responses on 27/09/2023 through the Company advocates. Besides, the company has also sent a formal legal notice to Mango Capital LLC on 04/10/2023 asking them to clear the dues. As on date, the company has not received any further communication in regards to the same.

c. The Company has not obtained confirmations form all vendors regarding MSME status, hence without the relevant details, provision is not made for interest liability towards the same in the books as of 31/03/2024 as well as disclosures related to MSME is not appropriate in absence of identification of MSME parties.

44. The company has declared a lockout of its Khopoli unit in November, 2013 and the same has been treated as a discontinued unit/ operation from the quarter ended 30-09-2020 and the disposal unit/operation have also been considered as discontinued operations in accordance with Ind AS 105 - ‘Non-Current Assets Held for Sale and Discontinued

Operations'.

45. The Company had entered into a MOU with Tribus Real Estate Pvt. Ltd. (TREPL) for taking over the company's bank loans as reflected earlier in the company's books based oi terms agreed to between the Company and TREPL. TREPL will negotiate with the lending Banks/ARCs to settle their dues amicably either through One Time Settlement or otherwise on acceptable terms and takeover all secured loans of the Company from banks together with securities offered to the banks by the Company. As per MOU, TREPL will enjoy absolute right on those securities till the Company repays the amount stated in MOU. The amount to the extent paid by TREPL has been shown in the accounts as Secured Loan from Others. Bank/ARC is holding mortgaged securities which are not yet assigned in favor of the TREPL.

46. Consortium of banks has taken action under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 in February,2014 and called upon the company to repay the amount of Rs 193.19 Crores towards the dues as on 31.01.2014 within sixty days. Thereafter the consortium of banks have taken symbolic possession on 29.05.2014 of the immovable assets at the Khopoli unit and filed a case for taking physical possession .which will be reviewed afresh by Invent Assets Securitisatior and Reconstruction Private Limited since the loan has been assigned to them by bank on 31-03-2013

47. The net worth of the Company as per the definition given in the Companies Act, 2013 continues to be negative as on 31-03-2024 due to accumulated losses.Considering strategic understanding with suppliers/customers, the company is on the revival mode and is operating some of the units. Also, the Company's Board of Directors ( the Board) are examining available options to further increase sales/income from operations. Barring unforeseen circumstances beyond the control of the Company, the Board is confident about the Company's ability to continue as a going concern. Based thereupon and considering the projected revenues / cash flows, the Company has prepared accounts on a going concern basis.

48. The company was prohibited from accessing the securities market for three years by a SEBI order dated 31/03/2021 for violating certain sections of the SEBI Act 1992 and the SEBI Regulation for Issue of Global Depositary Receipts ("GDR"). On 16/07/2021, the Company appealed against the aforementioned order. The final hearing was completed on 03/01/2023, and SEBI issued the final ruling on 21/02/2023. As per the ruling, the Company's appeal was largely upheld, the debarment was shortened to the time already served, and the penalty was decreased from Rs. 10 crores to Rs. 25 lakhs. The same has been provided in the books of accounts of the Company as of 31/03/2023 and is yet to be paid a; of 31/03/2024. As on date, SEBI has filed a civil appeal with Supreme Court against the same on 07/08/2023. As on date, the company has not received any further communication in regards to the same.

49. For the purpose of valuing its inventories, the company used the weighted average cost technique and reported an inventory value of Rs.1986.4S Lakhs as of 31/03/2024. Due the added variable costs connected with manufacturing the goods, the value of finished goods, work in progress, and scrap items is done manually rather than being produced by a system.

50. There are certain non-operating current bank accounts of the Company. The bank statements and balance confirmations as on 31/03/2024 for these accounts could not be obtained; the company has provided for the full amount (Rs.41.07 Lakhs) pending clarifications/confirmations from respective Banks.

51. During the September, 2023 quarter, the Company has received a re-opening notice u/s 143 of Income Tax Act, 1961 for AY 2019-20 for which it has filed return of Income wherein the income tax department has alleged that "there is a complete cessation of liability in the hands of the Company with regards to principal amount of loan and outstanding interest payable on loan" in relation to its Non-Performing Assets with various bank. The Company has made necessary submission to the Authorities and submission is accepted t y the authorities without any tax demand.

52. During the June, 2023 quarter, the Company had received a letter on from Directorate of Enforcement (under Foreign Exchange Management Act) on 22/05/2023 directing the company to submit certain records/documents as listed in the said letter pursuant to order u/s 37 of Foreign Exchange Management Act. 1999 read with Section 133(6) of the Income Tax Act, 1961, In response to the same the Company had submitted the requisite documents to the department. As on dale, the company has not received any further communication in regards to the same.

53. The Company has received a show cause notice u/s 148A(b) of Income Tax Act, 1961 on 01/03/2024 for AY 2020-21 in respect of acquisition of Non-Performing Assets by Invent group. The Company has made necessary submission on 14/03/2024 to the Authorities. On 15/04/2024 the Company has received notice u/s 148 of Income Tax Act, 1961 t > reassess the income or tax and file the return within 90 days from the notice. The Company is in process to file the return as per u/s 148.

54. During the quarter ended 31/03/2024, the management has assessed the provisions for expenses made in earlier years for quality claim and export freight and based thereon, reversed provisions in the accounts in respect of certain parties and disclosed the same under other income as provision written back amounting to Rs. 456.39 lakhs.

56. Fair values of financial assets and financial liabilities:

(i) Valuation All financial instruments are initially recognized and subsequently re-measured at fair value as described below: The fair value of financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between the willing parties, other than in a forced or liquidation sale. The fair value of Investment in quoted Equity Shares, Bonds, Government Securities. Treasury Bills and Mutual Funds is measured at quoted price or NAV. The fair value of the remaining financial instruments is determined using discounted cash flow analysis. The financial instruments are categorized into three levels based on the inputs used to arrive at fair value measurements as described below: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; and Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. The carrying values of the financial instruments by categories were as follows:

The following is the hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

"Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilitiies.

"Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

"Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

No financial assets/liabilities have been valued using level 1 fair value measurements.

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis:

The carrying amounts of borrowings, trade payables, other financial liabilities and other current liabilities are considered to approximate their fair values due to their short term nature. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including own and counterparty credit risk.

57. Financial risk management objectives and policies:

The Company is exposed to various financial risks. These risks are categorized into market risk, credit risk and liquidity risk. The Company's risk management is coordinated by the Board of Directors and focuses on securing long term and short term cash flows. The Company does not engage in trading of financial assets for speculative purposes.

(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 risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include borrowings and derivative financial instruments.

(i) 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.

(ii) Foreign currency risk:

The Company is exposed to foreign currency risk arising mainly on borrowing, export of finished goods and import of raw material. Foreign currency exposures are managed within approved policy parameters utilising forward contracts.

(B) 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. Credit risk arises principally fron the statutory deposits with regulatory agencies and also arises from cash held with banks and financial institutions. The maximum exposure to credit risk Is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses In financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.

The Company limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions and retaining sufficient balances in bank accounts requirec to meet a month's operational costs. The Management reviews the bank accounts on regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash in bank accounts. The Company does not foresee any credit risks on deposits with regulatory authorities.

( C ) Liquidity risk:

Liquidity risk is ttia risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

58. Capital management:

For the purpose of the Company's capital management, capital Includes issued equity capital, share premium and all other equity reserves attributable to the equity holders The primary objective of the Company's capital management is to maximize the shareholder value and to ensure the Company’s ability to continue as a going concern.

The Company monitors gearing ratio l.e. total debt in proportion to its overall financing structure, i.e. equity and debt. Total debt mainly comprises of borrowings from banks, finand institutions and Unsecured Loans. The Company manages the capital structure and makes adjustments to It In the light of changes In economic conditions and the risk characteristics of the underlying assets.

59. Corporate social responsibility:

(A) The provisions stipulated under sectiont 35 of the Companies Act 2013 are not applicable to the company for the year as there has been no profits for the last three years .negative net worth .and the turnover Is below the limit specified

(B) No expenditure has been paid to a related party, in relation to CSR expenditure as per Ind-AS 24. Related Party Disclosures.

60. Disclosure under Micro,Small and Medium Enterprises Development Act, 2006 (MSMED)

Under the Micro. Small and Medium Enterprises Development Act. 2006 (MSMED) which came into force from October 02. 2006. certain discloure are required to be made relating to MSME. On the basis of the information and records available with the company, the following discloures are made for the amount due to Micro and Small Enterprises.

61. Previous year figures have been regrouped/ reclassified to conform presentation as per Ind AS as required by Schedule III of the Act.

The accompanying notes are an integral part of these financial statements.