1.2.11 Provisions:
The Company has adopted Indian Accounting Standard
(Ind AS) 37 - Employee Benefits with effect from the
applicable date. All the provisions are recognized as
per Ind AS 37.
Provisions are recognized when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of economic
benefits will be required to settle the obligation, and
a reliable estimate can be made of the amount of the
obligation.
The amount recognized as a provision is the best
estimate of the consideration required to settle the
present obligation at the end of the reporting period,
taking into account the risks and uncertainties
surrounding the obligation.
When some or all of the economic benefits required
to settle a provision are expected to be recovered
from a third party, the receivable is recognized as an
asset, if it is virtually certain that reimbursement will
be received and the amount of the receivable can be
measured reliably.
1.2.12 Consolidated Financial Statements:
The Company has adopted Indian Accounting Standard
(Ind AS) 110 - Consolidated Financial Statements with
effect from the applicable date.
The consolidated financial statements comprise
the financial statements of the Company and its
subsidiaries over which the Company exercises
control. Control exists when the Company is exposed
to, or has rights to, variable returns from its involvement
with an entity and has the ability to affect those returns
through its power over the entity.
The results and financial position of subsidiaries are
included in the consolidated financial statements from
the date on which control is obtained until the date
such control ceases.
Intra-group balances, transactions, income and
expenses are eliminated in full on consolidation. Non¬
controlling interests represent the portion of profit
or loss and net assets of subsidiaries attributable
to equity holders other than the Company and are
presented separately in the consolidated financial
statements.
SEIL Infra Logistics Limited, incorporated on June 29,
2025, is a wholly owned subsidiary of Steel Exchange
India Limited. As at March 31, 2026, the subsidiary
had not commenced commercial operations and
no subscription money towards share capital had
been received. Consequently, the subsidiary had
no financial or operational activity during the year.
Accordingly, non-consolidation of the said subsidiary
does not have any impact on the consolidated financial
statements for the year ended March 31, 2026.
1.2.13 Revenue recognition:
The Company has adopted Indian Accounting
Standard (Ind AS) 115 - Revenue from Contracts with
Customers with effect from the applicable date.
The Company derives revenues primarily from
business of Iron & Steel and power.
Sale of products
Revenue is recognized upon transfer of control of
promised goods or services to the customer, recovery
of the consideration is probable, the associated costs
and possible return of goods can be estimated reliably,
there is no continuing management involvement
with the goods, and the amount of revenue can be
measured reliably. Revenue is measured net of returns,
trade discounts and volume rebates. The timing of the
transfer of risks and rewards varies depending on the
individual terms of the sales agreement.
An Entity's right to consideration in exchange for
goods or services that the entity has transferred to a
customer when that right is conditioned on something
other than passage of time is treated as contract asset.
An entity's obligation to transfer goods or service
to a customer for which the entity has received
consideration (or the amount is due) from the customer
is treated as contract liability.
The Company accounts for volume discounts and
pricing incentives to customers as a reduction of
revenue based on performance obligation that
corresponds to the progress by the customer towards
earning the discount / incentive. If it is probable that
the criteria for the discount will not be met, or if the
amount thereof cannot be estimated reliably, then
the discount is not recognized until the payment is
probable and the amount can be estimated reliably.
The Company recognizes changes in the estimated
number of obligations for discounts in the period in
which the change occurs.
Contract modifications are accounted for when
additions, deletions or changes are approved either to
the contract scope or contract price. The accounting
for modifications of contracts involves assessing
whether the goods/services added to an existing
contract are distinct and whether the pricing is at the
standalone selling price.
Goods/ services added that are not distinct are
accounted for on a cumulative catch-up basis, while
those that are distinct are accounted for prospectively,
either as a separate contract, if the additional Goods/
services are priced at the standalone selling price, or
as a termination of the existing contract and creation
of a new contract if not priced at the standalone selling
price.
Sale of power
Revenue from sale of power is recognised when
the services are provided to the customer based on
approved tariff rates established by the respective
regulatory authorities. The Company doesn't recognise
revenue and an asset for cost incurred in the past that
will be recovered.
Income from Logistic Business:
Revenue from infrastructure and logistics services
includes transportation, material handling,
warehousing, loading and unloading, railway siding
operations and other allied services.
Revenue from such services is recognised over
time as and when the related services are rendered
to customers in accordance with the terms of the
underlying contracts, as the customer simultaneously
receives and consumes the benefits provided by the
Company's performance.
Where services are rendered over a period of
time, revenue is recognised based on the stage of
completion or as per contractual terms. Revenue is
measured based on the consideration specified in the
contract and excludes amounts collected on behalf of
third parties.
The Company presents revenues net of indirect taxes
in its Statement of Profit and Loss.
Disaggregate revenue information
Revenue from Operations presents disaggregated
revenues from contracts with customers for the year
ended March 31, 2026 by type of goods or services.
Refer table in note no.3.18
The Company believes that this disaggregation best
depicts how the nature, amount, timing and uncertainty
of our revenues and cash flows are affected by
industry, market and other economic factors.
Trade receivables and contract balances
The Company classifies the right to consideration in
exchange for deliverables as a receivable.
A receivable is a right to consideration that is
unconditional upon passage of time. Revenue for
time-and-material contracts are recognized as
related control in goods is transferred and services
are performed. Trade receivable is presented net of
impairment in the Balance Sheet.
Performance obligations and remaining performance
obligations
The remaining performance obligation disclosure
provides the aggregate amount of the transaction price
yet to be recognized as at the end of the reporting
period and an explanation as to when the Company
expects to recognize these amounts in revenue.
Applying the practical expedient as given in Ind AS
115-Revenue from Contracts with Customers, the
Company has not disclosed the remaining performance
obligation related disclosures for contracts where the
revenue recognized corresponds directly with the
value to the customer of the entity's performance
completed to date, typically those contracts where
invoicing is on time-and-material basis.
Remaining performance obligation estimates are
subject to change and are affected by several factors,
including terminations, changes in the scope of
contracts, periodic revalidations, and adjustment for
revenue that has not materialized and adjustments for
currency.
1.2.14 Finance income and expense
> Finance income consists of interest income
on deposits, Lease rental income, gain sale
of property, plant and equipment and other
miscellaneous income. Interest income is
recognized as it accrues in the statement of
profit and loss.
> Finance expenses consist of interest expense
on loans and borrowings. Borrowing costs are
recognized in the statement of profit and loss.
> Foreign currency gains and losses are reported
on a net basis.
1.2.15 Income tax:
The Company has adopted Indian Accounting
Standard (Ind AS) 12 - Income Taxes with effect from
the applicable date.
Income tax comprises current and deferred tax. Income
tax expense is recognized in the statement of profit
and loss except to the extent it relates to items directly
recognized in equity or in other comprehensive income.
(a) Current income tax
Current income tax for the current and prior
periods are measured at the amount expected
to be recovered from or paid to the taxation
authorities based on the taxable income for
the period. The tax rates and tax laws used to
compute the current tax amount are those that
are enacted or substantively enacted by the
reporting date and applicable for the period.
The Company offsets current tax assets and
current tax liabilities, where it has a legally
enforceable right to set off the recognized
amounts and where it intends either to settle on
a net basis or to realize the asset and liability
simultaneously.
Section 115 BAA of the Income Tax Act 1961,
introduced by Taxation Laws (Amendment)
Ordinance, 2019 gives a one-time irreversible
option to Domestic Companies for payment of
corporate tax at reduced rates. In view of the
unabsorbed depreciation and MAT Credits, the
Company has determined that it will continue to
recognize tax expense at the existing income
tax rate as applicable to the Company.
(b) Deferred income tax
Deferred income tax is recognized using the
balance sheet approach. Deferred income
tax assets and liabilities are recognized for
deductible and taxable temporary differences
arising between the tax base of assets and
liabilities and their carrying amount in financial
statements, except when the deferred income
tax arises from the initial recognition of goodwill
or an asset or liability in a transaction that is not
a business combination and affects neither
accounting nor taxable profits or loss at the
time of the transaction.
Deferred income tax assets are recognized 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 income tax liabilities
are recognized for all taxable temporary
differences. The carrying amount of deferred
income tax assets is reviewed at each reporting
date and reduced to the extent that it is no
longer probable that sufficient taxable profit will
be available to allow all or part of the deferred
income tax asset to be utilized.
Deferred income tax assets and liabilities are
measured at the tax rates that are expected to
apply in the period when the asset is realized or
the liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively
enacted at the reporting date.
1.2.16 Earnings per share:
The Company has adopted Indian Accounting
Standard (Ind AS) 33 - Earnings Per Share with effect
from the applicable date.
Basic earnings per share are computed using the
weighted average number of equity shares outstanding
during the year.
Diluted EPS is computed by dividing the net profit after
tax by the weighted average number of equity shares
considered for deriving basic EPS and also weighted
average number of equity shares that could have
been issued upon conversion of all dilutive potential
equity shares. Dilutive potential equity shares are
deemed converted as of the beginning of the year,
unless issued at a later date. Dilutive potential equity
shares are determined independently for each year
presented. The number of equity shares and potentially
dilutive equity shares are adjusted for bonus shares,
as appropriate.
During the year, the Company sold a non-operational
asset which was not in use and did not constitute a
cash-generating unit or a component of the Company's
business as defined under Ind AS 105- Non-Current
Assets held for Sale and Discontinued Operations.
Accordingly, this transaction does not qualify as a
discontinued operation, and earnings per share from
discontinued operations under Ind AS 33 have not
been presented."
1.2.17 Foreign Currency Transactions:
The Company has adopted Indian Accounting Standard
(Ind AS) 21 - The Effects of Changes in Foreign
Exchange Rates with effect from the applicable date.
Foreign currency transactions are recorded at the
exchange rate prevailing on the date of the transaction.
Monetary foreign currency assets and liabilities are
reported at the exchange rate prevailing on the balance
sheet date. Exchange differences relating to long term
monetary items, arising during the year, as so far as
they relate to the acquisition of the depreciable capital
asset is dealt with in the profit and loss statements.
1.2.18 Borrowing costs:
The Company has adopted Indian Accounting
Standard (Ind AS) 23 - Borrowing Costs with effect
from the applicable date.
Borrowings costs directly attributable to acquisition
or construction of an asset that necessarily takes a
substantial period of time to get ready for its intended
use or sale are capitalized as part of the cost of the
asset. All other borrowing costs are expensed in the
period in which it occurs.
Borrowing costs consists of interest and other costs
that an entity incurs in connection with the borrowing
of funds.
3.27 In the opinion of the management, the Current Assets,
Loans and Advances are expected to realise at least
the amount at which they are stated, if realised in the
ordinary course of business and provision for all known
liabilities have been adequately made in the accounts.
3.28 Disclosure of Sundry creditors under trade payables
has been determined to the extent such parties could
be identified on the basis of the information available
with the Company regarding the status of suppliers
under the Micro, Small and Medium Enterprises
Development Act,2006 and relied upon by the
Auditors.
Details of total outstanding dues to Micro, Small and
Medium Enterprises Development Act, 2006
Contingent liabilities represent show cause notices received or pending for final consideration and the Company has
already submitted its objections in writing against the demands.
The Company has satisfactory title to all assets, free of liens or encumbrances except as disclosed in the standalone
Ind AS financial statements. We confirm that the land situated at Bobbili, having a carrying amount of ?.458.26 lakhs
disclosed under Property, Plant and Equipment, was allotted by Andhra Pradesh Industrial Infrastructure Corporation
Limited ("APIIC"). The allotment was cancelled by APIIC alleging non-fulfilment of allotment conditions, and such
cancellation was upheld by the Hon'ble High Court of Andhra Pradesh.
The Company has filed a Special Leave Petition before the Hon'ble Supreme Court of India against the said order and the
matter is presently pending adjudication. The Hon'ble Supreme Court, vide its order dated 22 September 2026, directed
maintenance of status quo in respect of the said property until the next date of hearing.
3.31 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 Social Welfare, Health care and charitable Trust etc. 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:
3.33.2 Segment Reporting as per Ind-AS 108:
A) Basis for segmentation
An operating segment is a component of the Company that engages in business activities from which
it may earn revenues and incur expenses and for which discrete financial information is available. All
operating segments' operating results are reviewed regularly by the Board of Directors to make decisions
about resources to be allocated to the segments and assess their performance.
The Company has three reportable segments, as described below, which are the company's strategic
business units. These business units offer different products and services, and are managed separately
because they require different technology and marketing strategies. For each of the business units, the
company's Board reviews internal management reports on a periodic basis.
The following summary describes the operations in each of the Company's reportable segments:
B) Information about reportable segments
Information regarding the results of each reportable segment is included below. Performance is measured
based on segment profit (before tax), segment revenue and segment capital employed as included in
the internal management reports that are reviewed by the board of directors. Segment profit is used to
measure performance as management believes that such information is the most relevant in evaluating
the results of certain segments relative to other entities that operate within these industr
3.33.5 General:
a) Expenses are accounted under prepaid expenses only where the amounts relating to unexpired period
are material.
b) Some of the balances appearing under trade receivables, Trade payables, advances, security deposits
and other payables are subject to confirmations.
c) Figures for the previous year have been regrouped/ rearranged wherever considered necessary so as to
confirm to the classification of the current year.
> Assets that are not financial assets (such as receivables from statutory authorities, prepaid expenses, advanced
paid and certain other receivables) as of 31st March 2026 and 31st March 2025 are not included.
> Other liabilities that are not financial liabilities (such as statutory dues payable, advance from customers and
certain other accruals) as of 31st March 2026 and 31st March 2025 are not included.
The carrying amount of above financial assets and liabilities are considered to be same as their fair values, due
to their short-term nature.
3.33.7 Financial Risk Management:Risk Management Framework
The Company's Board of Directors has the overall responsibility for the establishment and oversight of the
Company's risk management framework.
The Company's risk management policies are established to identify and analyse the risks faced by the Company,
to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies
and systems are reviewed regularly to reflect changes in market conditions and the Company's activities. The
Company, through its training and management standards and procedures, aims to maintain a disciplined and
constructive control environment in which all employees understand their roles and obligations.
The Board of Directors monitors the compliance with the Company's risk management policies and
procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the
Company.
a) Credit risk
Credit risk is the risk that counter party will not meet its obligation under a financial instrument or customer
contract leading to a financial loss. The Company's is exposed to credit risk mainly from trade receivables
and other financial assets.
(i) Trade receivables
Trade receivables are typically unsecured and are derived from revenue earned from customers.
Credit risk has been managed by the Company's through credit approvals, establishing credit
limits and continuously monitoring the creditworthiness of customers to which the Company's
grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the
Company's uses expected credit loss model to assess the impairment loss or gain.
The Company's uses a provision matrix and forward-looking information and an assessment of
the credit risk over the expected life of the financial asset to compute the expected credit loss
allowance for trade receivables. Concentrations of credit risk with respect to trade receivables are
limited.
(ii) Other Financial Assets & loans:
The company has limited credit risk arising from cash and cash equivalents as the deposits are
maintained with banks and financial institutions with high credit rating. Further, other financial
and current assets mainly comprise of purchase, expenses advance and balances with statutory
authorities (GST input credit balances and direct tax receivable balances) which are recoverable
from Government. Hence, these are low risk items and the Company's evaluates the recoverability
of these financial assets at each reporting date and wherever required, a provision is created
against the same.
b) Liquidity risk:
Liquidity risk refers to the risk of financial distress or extraordinary high financing costs
arising due to shortage of liquid funds in a situation where business conditions unexpectedly
deteriorate and requiring financing. The Company requires funds both for short term
operational needs as well as for long term capital expenditure for capex.
The Company generates sufficient cash flow for operations, which together with the
available cash and cash equivalents provide liquidity in the short-term and long-term.
The Company has established an appropriate liquidity risk management framework for
the management of the Company's short, medium and long-term funding and liquidity
management requirements. The Company manages liquidity risk through cash generated
from operations, banking facilities and reserve borrowing facilities, by continuously
monitoring forecast and actual cash flows, and by matching the maturity profiles of financial
assets and liabilities. As at 31st March, 2025, the Company's current assets exceed its
current liabilities by ?.28,759.91 lakhs.
c) Market risk:
Market risk is the risk that changes in market prices, such as foreign exchange rates and
interest rates will affect the Company's income. The objective of market risk management
is to manage and control market risk exposures within acceptable parameters, while
optimizing the return.
d) currency risk:
Since majority of the Company's operations are being carried out in India and since all the
material balances are denominated in its functional currency, the company does not carry
any material exposure to currency fluctuation risk.
The Company's exposure to foreign currencies in minimal and hence no sensitivity
analysis is presented.
e) Interest rate risk:
(i) 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
is exposed to interest rate risk because funds are borrowed at both fixed and floating
interest rates. Interest rate risk is measured by using the cash flow sensitivity for
changes in variable interest rate.
The borrowings of the Companies are principally denominated in rupees with a
mix of fixed and floating rates of interest. The Company's has exposure to interest
rate risk, arising principally on changes in base lending rate. The Company's uses a
mix of interest rate sensitive financial instruments to manage the liquidity and fund
requirements for its day to day operations. The risk is managed by the Company by
maintaining an appropriate mix between fixed and floating rate borrowings
(ii) The profile of the Company's' fixed and floating rate borrowings is given below:
f) Commodity price risk:
Commodity price risk arises due to fluctuation in prices of raw materials like iron ore, coal and
scrap etc. The Company has a risk management framework aimed at prudently managing
the risk arising from the volatility in commodity prices and freight costs. The Company's
commodity risk is managed centrally through well-established trading operations and
control processes.
3.33.8 Capital Management
(a) Risk management:
The primary objective of the Company's capital management is to maximise the shareholder value. The
Company's objectives when managing the capital are to safeguard their ability to continue as a going
concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders.
The Board's policy is to maintain a strong capital base so as to maintain investor, creditor and market
confidence and to sustain future development of the business. The Board of Directors and senior
management monitors the return on capital, which the Company defines as result from operating activities
divided by total shareholders' equity.
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