1. The Company's investment properties consist of two commercial and one residential properties in India. Management determined that the investment properties consist of two classes of assets - commercial and residential - based on the nature, characteristics and risks of each property.

2. For depreciation methods used, the useful lives and the depreciation expense, refer note 1.10 to the standalone financial statements.

3. All of the Company's investment properties are pledged as collateral against borrowings (Refer note 17 to the standalone financial statements).

Direct comparison approach for underlying land:

The direct comparison approach involves a comparison of the property being valued to similar properties that have actually been sold in arms length transactions or are offered for sale. This approach demonstrates what buyers have historically been willing to pay (and sellers willing to accept) for similar properties in a competitive market and is particularly useful in estimating the value of the land and properties that are typically traded on a unit basis. To ascertain the comparable transactions quotes, valuer would undertake an on ground market research exercise involving interactions with local market players such as real estate brokers, accumulators, etc. The data would be collated with respect to the general transaction activity in the subject regions. Post establishing the prevalent values in the subject micro markets, the value of the subject properties would be ascertained through an adjustment of the comparable collated.

Depreciated replacement cost method for built up structures:

The depreciated replacement cost method involves assessing the current cost of replacing an asset with its modern equivalent asset less deductions for physical deterioration and all relevant forms of obsolescence and optimization. Depreciation refers to adjustments made to the cost of an equivalent asset to reflect any comparative obsolescence (such as physical deterioration, functional or economic obsolescence) that affects the subject asset over the remaining life of the subject asset at the valuation date with its expected total life (economic life of the property). The physical life is how long the asset, ignoring any potential for refurbishment or reconstruction, could be used before the asset would be completely worn out or beyond economic repair The economic life is how long it is anticipated that the asset could generate returns or provide a financial benefit.

5. The Company has restrictions on the realisability/disposal of investment properties due to these being pledged as collateral against borrowings, however there are no restrictions on the remittance of income. There are no contractual obligations to purchase, construct or develop investment properties for repair, maintenance or enhancements.

1. During the year ended 31 March 2023, Sandur Pellets Private Limited, a wholly owned subsidiary, was incorporated on 7 May 2022.

2. During the year ended 31 March 2023, the Company had entered into a Share Subscription and Shareholders Agreement with Renew Green Energy Solutions Private Limited (RGESPL) and Renew Sandur Green Energy Private Limited (RSGEPL) and Power Purchase Agreement with RSGEPL for the purpose of captive consumption of renewable power at its Metal & Ferroalloys Plant. The Company has subscribed to 49% of the paid-up equity share capital in RSGEPL.

1. Mode of valuation of inventories is stated in note 1.12 to the standalone financial statements.

2. All of the Company's inventories are pledged as collateral against borrowings (Refer note 17 to the standalone financial statements).

3 Write-down/(reversal of write-down of earlier years) of the inventories to net realisable value amounted to ' 393.20 lakh (2021-22'37.10 lakh). These were recognized as an expense/(reversal of expense) during the year and included in the standalone statement of profit and loss.

(iv) Rights, preferences and restrictions attached to equity shares Rights, preferences and restrictions attached to equity shares:

The Company has only one class of equity shares having par value of ' 10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting. In the event of the liquidation, the equity shareholders are eligible to receive the remaining assets of the Company in proportion to their shareholdings after distribution of all preferential amounts.

(v) Aggregate number and class of equity shares allotted as fully paid without payment being received in cash for the period of 5 years immediately preceding the balance sheet date:

The scheme of amalgamation of Star Metallics and Power Private Limited (‘Transferor') a subsidiary, with the Company was approved by the Bengaluru bench of National Company Law Tribunal (NCLT), vide its order dated 4 March 2020, and on completion of the required formalities the Scheme became effective from 1 April 2019. Pursuant to the approval of the scheme, 251,941 equity shares of ' 10 each were issued to the minority shareholders.

1. Terms of repayment: Borrowing from ICICI Bank Limited & IndusInd Bank Limited is payable over 84 equal instalments starting from 31 March 2021 and from Axis Bank Limited is payable over 73 equal instalment starting from 31 March 2021.

2. Security:

(a) First pari-passu charge on all the immovable assets (limited to properties pledged against the facility), movable assets, project receivables, debt service reserve accounts assets and escrow account.

(b) Second pari-passu charge on all the current assets and receivables.

3. Rate of interest: In the range of 6.50% to 9.00% as at 31 March 2023 (As at 31 March 2022: 6.50% to 7.35%).

4. Working capital facilities (fund based and non-fund based) aggregating to ' 49,600 lakh (As at 31 March 2022 ' 35,100 lakh) are secured by first pari-passu charge on all the current assets and receivables and second pari-passu charge on all the immovable assets (limited to properties pledged against the facility), movable assets, project receivables, debt service reserve accounts assets and escrow account assets.

5. The Company has filed quarterly returns or statements with the banks in lieu of the sanctioned working capital facilities, which are in agreement with the books of account.

6. The Company has not defaulted on any loan payable.

On 10 April 2022, the Board had approved for issuing two new equity shares, at its face value of ' 10/- each, on a rights basis, for every one equity share of the Company held by the eligible shareholders on the record date. Subsequently, in the Board meeting held on 21 July 2022, the Board had wfixed the record date as 27 July 2022 for the purposes of determining the names of eligible shareholders to apply for rights issue. The rights issue has been concluded by issue of 1,80,03,882 equity shares of ' 10/- amounting to ' 1,800.39 lakh. Consequently, pursuant to Ind AS 33, basic and diluted earnings per share for the year presented in the standalone financial statements have been adjusted after giving the impact for the bonus element in respect of the aforesaid rights issue.

(a) The above amounts have been arrived at based on the notice of demand or the assessment orders, as the case may be, and the Company is contesting these claims with the respective authorities. Outflows (if any) arising out of these claims would depend on the outcome of the decisions of the appellate authorities.

b) 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 standalone financial statements. The Company does not expect the outcome of these proceedings to have adverse effect on its financial position. The Company does not expect any reimbursements in respect of the above contingent liabilities.

Note No. 35: Employee benefits(a) Defined Contribution Plan

The Company's contribution to provident fund, superannuation fund and employee state insurance aggregating ' 966.04 lakh (For the year ended 31 March 2022: ' 308.36 lakh) has been recognised in the Standalone Statement of Profit and Loss under the head employee benefits expense.

(b) Defined Benefit Plan

(i) Gratuity (Funded)

The Company operates a gratuity plan covering qualifying employees. The benefit payable is the greater of the amount calculated as per The Payment of Gratuity Act, 1972 and the Company's scheme applicable to the employee. The Company makes annual contributions to an Insurance managed fund to fund its gratuity liability. The activity of the Company is administered by SMIORE Gratuity Fund Trust. The scheme provides for lump sum payment to vested employees on retirement, death while in employment or on termination of employment as per the Company's Gratuity Scheme. Vesting occurs upon completion of three years of service.

The plan liabilities are calculated using a discount rate set with references to government bond yields. If plan assets underperform compared to the government bonds discount rate, this will create or increase a deficit. The defined benefit plans hold a significant proportion of debt type assets, which are expected to outperform government bonds in the long-term.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as and when calculating the defined benefit liability recognised in the standalone balance sheet.

The expected rate of return on plan assets is based on the average long term rate of return expected on investments during the estimated term of obligation.

The estimate of future salary increases, considered in actuarial valuation, takes account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

(a) The remuneration of directors and key managerial personnel are determined by the remuneration committee having regard to the performance of individuals and market trends.

(b) The above figures do not include provisions for encashable leave and gratuity as separate actuarial valuation is not available.

Note No. 37: Segment information

The Chief Operating Decision maker of the Company examines the performance of the Company from a product perspective and has identified three reportable segments (a) Mining, (b) Ferroalloys and (c) Coke and Energy. Unallocable represents the income, expenses, assets and liabilities which are related to the Company as a whole and cannot be allocated to a particular segment.

The Company operates in a single geographical territory and accordingly, the reporting for secondary segment is not applicable.

Note No. 38: Financial instruments

The significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 1.19 to the standalone financial statements.

Financial instruments by category and hierarchy

This Section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the standalone financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level is as follows:

Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs are 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 are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

There are no transfers between levels during the year.

The management considers that the carrying amount of financial assets and financial liabilities recognised in these standalone financial statements at amortised cost approximate their fair values.

(a) The Company has not disclosed the fair value for trade receivables, cash and cash equivalents, other bank balances, other financial assets, loans, borrowings, lease liabilities, trade payables and other financial liabilities because their carrying amounts are the approximation of fair values.

(b) The Investments made in subsidiary and associate amounting to ' 5,091.44 lakh is measured at cost.

Financial risk management

The Board of Directors of the Company have the overall responsibility for the establishment and oversight of the their risk management framework. The Company has constituted a Risk Management Committee. The Company has in place a Risk management framework to identify, evaluate business risks and challenges across the Company. The 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 Audit Committee oversees how management monitors 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. The Audit Committee is assisted in its oversight role by Internal Audit which regularly reviews risk management controls and procedures, the results of which are reported to the Audit Committee. These risks include foreign currency risk, credit risk, liquidity risk and interest rate risk.

Foreign currency risk management

The Company's functional currency in Indian Rupees (INR). The Company undertakes transactions denominated in foreign currencies due to which it is exposed to exchange rate fluctuations. Volatility in exchange rate of foreign currencies affects the cost of imports, primarily in relation to raw materials. The Company is generally exposed to foreign exchange risk arising through its sales and purchases denominated in foreign currency predominantly in US dollars.

During the current year there are no exports, however the Company has imported ores and coking coal which is subject to foreign exchange risk.

Commodity price risk

The Company doesn't enter into any long term contract with its suppliers for hedging its commodity price risk.

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Company is exposed to credit risk from its operating activities mainly trade receivables. The Company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. Credit risk is managed by the Company through approved credit norms, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

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. Ultimate responsibility for managing the liquidity risk rests with the management, which has established an appropriate liquidity risk management framework for managing the Company's short-term, medium-term and long-term funding. The Company manages liquidity risk by maintaining adequate reserves, by continuously monitoring forecast and actual short-term and long-term cash flows, and by matching the maturity profiles of financial assets and liabilities. The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted.

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 is exposed to interest rate risk because funds are borrowed at floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate. The borrowings of the Company are principally denominated in rupees at floating rates of interest.

The sensitivity analyses below have been determined based on the exposure to interest rates for floating rate liabilities, assuming the amount of the liability outstanding at the year end was outstanding for the whole year.

If interest rates had been 100 basis points higher/lower and all other variables were held constant, the Company's profit For the year ended 31 March 2023 would decrease/increase by ' 203.57 lakh (For the year ended 31 March 2022: decrease/increase by ' 308.36 lakh). This is mainly attributable to the Company's exposure to interest rates on its variable rate borrowings.

Capital management

The Company's objective for capital management is to maximize shareholder's wealth, safeguard business continuity and support the growth of the Company. The Company determines the capital management requirement based on annual operating plans and long term and other strategic investment plans. The funding requirement are met through equity, borrowings and operating cash flows required.

Note No. 42: Other Statutory information

(i) The Company has not entered any transactions with Companies struck off under Section 248 of Companies Act, 2013 or Section 560 of Companies, 1956.

(ii) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any benami property.

(iii) The Company has not traded or invested in crypto currency or virtual currency during the financial year.

(iv) The Company does not have any charge or satisfaction which is yet to be registered with Registrars of Companies beyond the statutory period.

(v) The Company has not advanced or loaned or invested fund to any other person(s) or entit(ies), including foreign entites (intermediaries) with the understanding that the intermediary shall:

a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (ultimate beneficiaries) or

b) Provide any guarantee, security or the like on behalf of the ultimate Beneficiaries.

(vi) The Company has not received any fund from any person(s) or entit(ies), including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or

b) Provide any guarantee, security or the like on behalf of the ultimate Beneficiaries.

Note No. 43:

The Company has maintained proper books of account as required by law except for keeping backup on daily basis of such books of account maintained in electronic mode, in a server physically located in India.

Note No. 44:

The standalone financial statement of the Company For the year ended 31 March 2022 were audited by erstwhile auditors R Subramanian and Company LLP (Firm Reg no.004137S/ S200041), Chartered Accountants.

Note No. 45: Event occurring after reporting period

Subsequent to the year end, the Company has received the Environment Clearance (EC) from the Ministry of Environment, Forest & Climate Change (MoEFCC) for enhancing Iron Ore production from 1.60 to 4.50 Million Tonnes Per Annum (MTPA).

The Company evaluated all events or transactions that occurred after 31 March 2023 up through 17 May 2023, the date the standalone financial statements were authorized for issue by the Board of Directors. Based on this evaluation, the Company is not aware of any events or transactions that would require recognition or disclosure in the standalone financial statements other than the above.

¹ Debt includes current and non current portion of lease liabilities.

² Earnings for debt service includes net profit after taxes and non-cash operating expenses like depreciation, profit/loss on sale of property, plant and equipment, etc.

³ Debt service includes interest & lease payments.

⁴ Revenue from operations means gross credit sales after deducting sales return.

⁵ Total purchases means gross credit purchases after deducting purchase return. Gross credit purchases includes other expenses.

⁶ Working capital is calculated by deducting current liabilities from current assets.

⁷ Capital employed is calculated by Net worth total debt deferred tax liability - Intangible asset

Notes:

(a) Repayment of debt has resulted in an improvement in the ratio.

(b) Decrease in profit has resulted in a detoriation in the ratio.

(c) Decrease in revenue and increase in trade receivables has resulted in a decrease in the ratio.

(d) Change in mix of mutual fund portfolio from equity to liquid resulted in a detoriation in the ratio.

(e) Decrease in the trade payable has resulted in an improvement in the ratio.

Note No. 47:

The standalone financial statements of the Company were approved by the Board of Directors and authorised for issue on 17 May 2023.

Note No. 48: Previous year figures

Previous years figures has been regrouped/reclassified wherever necessary to correspond with current year classification/disclosure.