1.14 Provisions, contingent liabilities and contingent
assets

Provisions for legal claims, service warranties, volume
discounts and returns are recognized when the
Company has a present legal or constructive obligation
as a result of past events, it is probable that an outflow
of resources will be required to settle the obligation and
the amount can be reliably estimated. Provisions are not
recognized for future operating losses.

Where there are a number of similar obligations, the
likelihood that an outflow will be required in settlement
is determined by considering the class of obligations as
a whole. A provision is recognized even if the likelihood
of an outflow with respect to any one item included in
the same class of obligations may be small.

Provisions are measured at the present value of
management's best estimate of the expenditure
required to settle the present obligation at the end
of the reporting period. The discount rate used to
determine the present value is a pre-tax rate that reflects
current market assessments of the time value of money
and the risks specific to the liability. The increase in the
provision due to the passage of time is recognized as
interest expense.

A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more
uncertain future events beyond the control of the
Company or a present obligation that is not recognised
because it is not probable that an outflow of resources
will be required to settle the obligation. A contingent
liability also arises in extremely rare cases where there is
a liability that cannot be recognised because it cannot
be measured reliably. The Company does not recognize
a contingent liability but discloses its existence in the
notes to financial statements.

Contingent assets are not recognised but disclosed in
the financial statements when an inflow of economic
benefit is probable.

The Company has significant capital commitments
in relation to various capital projects which are
not recognised but disclosed in the notes to
financial statements.

1.15. Employee benefits

Short term obligations: Liabilities for wages and salaries,
including non-monetary benefits that are expected
to be settled wholly within 12 months after the end of
the period in which the employees render the related
service are recognized in respect of employees service
up to the end of the reporting period and are measured
at the amounts expected to be paid when the liabilities
are settled. The liabilities are presented as current
Employee benefits payable in the balance sheet.

Other long term employee benefit obligations: The

liabilities for earned leave and sick leave are not
expected to be settled wholly within 12 months after
the end of the period in which the employees render
the related service. They are therefore measured as the
present value of expected future payments to be made
in respect of services provided by employees up to the
end of the reporting period using the projected unit
credit method. The benefits are discounted using the
market yields at the end of the reporting period that
have terms approximating to the terms of the related
obligation. Re-measurements as a result of experience
adjustments and changes in actuarial assumptions are
recognized in Profit or Loss.

The obligations are presented as current liabilities
in the Balance Sheet if the entity does not have an
unconditional right to defer settlement for at least
twelve months after the reporting period, regardless of
when the actual settlement is expected to occur.

Termination benefit

Compensation to employees under Voluntary
Retirement Scheme is charged to Statement of Profit
and Loss in the year of accrual.

Defined benefit plan

Gratuity: The liability or asset recognized in the Balance
Sheet in respect of defined benefit gratuity plans is the
present value of the defined benefit obligation at the end
of the reporting period less the fair value of plan assets.
The defined benefit obligation is calculated annually by
actuaries using the projected unit credit method.

Provident fund: The Company's provident funds are
administered by Trust set up by the Company where
the Company's obligation is to provide the agreed
benefit to the employees and the actuarial risk and
investment risk if any fall in substance on the Company
is treated as a defined benefit plan. Liability with regard
to such provident fund plans are accrued based on
actuarial valuation, based on Projected Unit Credit

Method, carried out by an independent actuary at the
Balance Sheet date.

The present value of the defined benefit obligation
denominated in Indian Rupees is determined by
discounting the estimated future cash outflows by
reference to market yields at the end of the reporting
period on government bonds that have terms
approximating to the terms of the related obligation.

The net interest cost is calculated by applying the
discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost is
included in employee benefit expense in the statement
of Profit and Loss.

Re-measurement gains and losses arising from
experience adjustments and changes in actuarial
assumptions are recognized in the period in which they
occur, directly in other comprehensive income. They
are included in retained earnings in the Statement of
Changes in Equity and in the Balance Sheet.

Changes in the present value of the defined benefit
obligation resulting from plan amendments or
curtailments are recognized immediately in Profit or
Loss as past service cost.

Defined contribution plans

These are plans in which the Company pays pre-defined
amounts to separate funds and does not have any legal
or informal obligation to pay additional sums. These
comprise of contributions to the Employees' Pension
Scheme, 1995 with the Government, superannuation fund
and certain state plans like Employees' State Insurance
and Employees' Pension Scheme. The Company's
payments to the defined contribution plans are
recognized as expenses during the period in which the
employees perform the services that the payment covers.

1.16. Borrowing cost

Borrowing costs consists of interest expense and other
cost incurred in connection with the borrowing of funds.
Interest expense are recognized in the statement of
profit and loss using the effective interest method.

Borrowing cost that are attributable to the acquisition
or construction of the qualifying asset are capitalised as
part of the cost of such asset. Where the funds used
to finance a project form part of general borrowings,
the amount capitalised is calculated using a weighted
average of rates applicable to relevant general
borrowings of the Company during the year. A qualifying
asset is one that necessarily takes substantial period of

time to get ready for intended use. All other borrowing
costs are recognised in the Statement of Profit and Loss
in the period in which the same are incurred.

1.17. Income tax

The Income tax expense or credit for the period is the
tax payable on the current period's taxable income
based on the applicable Income Tax rate adjusted by
changes in deferred tax assets and liabilities attributable
to temporary differences and to unused tax losses.

The current Income tax charge is calculated on the
basis of the tax laws enacted or substantively enacted at
the end of the reporting period in the countries where
the Company operate and generate taxable income.
Management periodically evaluates positions taken in
tax returns with respect to situations in which applicable
tax regulation is subject to interpretation. It establishes
provisions where appropriate on the basis of amounts
expected to be paid to the tax authorities.

Deferred Income tax is provided in full using the
Balance sheet method, on temporary differences arising
between the tax bases of assets and liabilities and their
carrying amounts in the Financial Statements.

However, deferred tax liabilities are not recognized
if they arise from the initial recognition of goodwill.
Deferred income tax is also not accounted for if it
arises from initial recognition of an asset or liability in
a transaction other than a business combination that at
the time of the transaction affects neither accounting
profit nor taxable profit (tax loss). Deferred Income
Tax is determined using tax rates (and laws) that have
been enacted or substantially enacted by the end of the
reporting period and are expected to apply when the
related deferred income tax asset is realized or deferred
income tax liability is settled.

Deferred Tax Assets are recognized for all deductible
temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available
to utilize those temporary differences and losses.
Deferred tax is not to be recognized in respect of non¬
taxable government grant where the grant is deducted
from carrying amount of asset.

The carrying amount of deferred 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 in future to allow all or part of the deferred
tax assets to be utilised. Unrecognised deferred tax
assets are re-assessed at each reporting date and are
recognised to the extent that it has become probable

that future taxable profits will allow the deferred tax
assets to be recovered.

Deferred tax assets and liabilities are offset when there
is a legally enforceable right to offset current tax assets
and liabilities and when the deferred tax balances relate
to the same taxation authority. Current tax assets and
tax liabilities are offset where the entity has a legally
enforceable right to offset and intends either to settle
on a net basis, or to realize the asset and settle the
liability simultaneously.

Current and deferred tax is recognized in Profit or Loss,
except to the extent that it relates to items recognized in
Other Comprehensive Income or directly in Equity. In this
case, the tax is also recognized in Other Comprehensive
Income or directly in Equity, respectively.

1.18. Government grants

Grants from the government are recognised at their fair
value where there is a reasonable assurance that the
grant will be received and the Company will comply
with all attached conditions.

Government grants relating to income are deferred and
recognised in the Profit or Loss over the period necessary
to match them with the costs that they are intended to
compensate and presented within other income.

Monetary Government grant related to assets shall be
presented by deducting the grant from the carrying
amount of the asset and non-monetary grant shall be
recognized at a nominal amount.

1.19. Foreign currency translation

a) Functional and presentation currency:

Items included in the financial statement of the
Company are measured using currency of the
primary economic environment in which the entity
operates ('the functional currency'). India being the
primary economic environment of the company,
the Financial Statements are presented in Indian
Rupee (INR), which is Company's functional and
presentation currency.

b) Transactions and Balances: Foreign currency
transactions are translated into the functional
currency using the exchange rates at the dates
of the transactions. Foreign exchange gains
and losses resulting from the settlement of
such transactions and from the translation of
monetary assets and liabilities denominated in
foreign currencies at year end exchange rates are
recognized in Profit or Loss.

1.20. Segment reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to the
Chief operating decision maker (CODM). The Chairman
cum Managing Director (CMD) assesses the financial
performance and position of the Company and makes
strategic decisions. Accordingly, the Chairman cum
Managing Director has been identified as the Chief
operating decision maker of the Company.

1.21. Earnings per share

Basic earnings per share: Basic earnings per share are
calculated by dividing:

i. The profit attributable to owners of the Company

ii. By the weighted average number of Equity Shares
outstanding during the Financial Year, adjusted for
bonus elements in Equity Shares issued during the
year and excluding treasury shares.

Diluted earnings per share: Diluted earnings per Share
adjusts the figures used in the determination of basic
Earnings per Share to take into account:

i. The after-income tax effect of interest and other
financing costs associated with dilutive potential
Equity Shares, and

ii. The weighted average number of additional
Equity Shares that would have been outstanding
assuming the conversion of all dilutive
potential Equity Shares.

1.22. Non-current assets (or disposal groups) held for
sale and discontinued operations

Non-current assets (or disposal groups) are classified as
held for sale if their carrying amount will be recovered
principally through a sale transaction rather than through
continuing use and a sale is considered highly probable.
They are measured at the lower of their carrying amount
and fair value less costs to sell, except for assets such
as deferred tax assets, assets arising from employee
benefits, financial assets and contractual rights under
insurance contracts, which are specifically exempt from
this requirement.

Non-current assets classified as Held for Sale and the
assets of a disposal group classified as held for sale
are presented separately from the other assets in
the Balance Sheet. The liabilities of a disposal group
classified as held for sale are presented separately from
other liabilities in the Balance Sheet.

Non-current assets (including those that are part of
a disposal group) are not depreciated or amortized
while they are classified as held for sale. Interest and
the other expenses attributable to the liabilities of a
disposal group classified as held for sale continue to
be recognized. An impairment loss is recognized for
any initial or subsequent write-down of the asset (or
disposal group) to fair value less costs to sell. A gain
is recognized for any subsequent increases in fair value
less costs to sell of an asset (or disposal group), but not
in excess of any cumulative impairment loss previously
recognized. A gain or loss not previously recognized by
the date of the sale of the non-current asset (or disposal
group) is recognized at the date of de-recognition.

A discontinued operation is a component of the entity
that has been disposed of or is classified as held for sale
and that represents a separate major line of business or
geographical area of operations, is part of a single co¬
ordinate plan to dispose of such a line of business or area
of operations, or is a subsidiary acquired exclusively with a
view to resale. The results of discontinued operations are
presented separately in the statement of Profit and Loss.

1.23. Exceptional items

Exceptional items are disclosed separately in the
Financial Statements where it is necessary to do so
to provide further understanding of the financial
performance of the company. They are material items
of income or expense that have been shown separately
due to the significance of their nature or amount.

2. Summary of significant judgements and
assumptions

The application of Accounting Standards and Policies
requires the Company to make estimates and assumptions
about future events that directly affect its reported financial
condition and operation performance. The accounting
estimates and assumptions discussed are those that the
Company considers to be most critical to its Financial
Statements. An accounting estimate is considered critical if
both (a) the nature of estimates or assumptions is material
due to the level of subjectivity and judgement involved, and
(b) the impact within a reasonable range of outcomes of the
estimates and assumptions is material to the Company's
financial condition or operating performance.

Revenue recognition

The Company uses the percentage of completion method
using the input (cost expended) method to measure progress
towards completion in respect of fixed price contracts.
Percentage of completion method accounting relies on

estimates of total expected contract revenue and costs. This
method is followed when reasonably dependable estimates
of the revenues and costs applicable to various elements of
the contract can be made. Key factors that are reviewed in
estimating the future costs to complete include estimates of
future labour costs, materials and productivity efficiencies.

As the financial reporting of these contracts depends on
estimates that are assessed continually during the term of
these contracts, recognized revenue and profit are subject
to revisions as the contract progresses to completion. When
estimates indicate that a loss will be incurred, the loss is
provided for in the period in which the loss becomes probable.
The preparation of financial statements in conformity with Ind
AS requires management to make judgments, estimates and
assumptions that affect the application of accounting policies
and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates.

Defined benefit plan assumption

The measurement of the Company's defined benefit
obligation to its employees and net periodic defined
benefit cost/income requires the use of certain assumptions,
including, among others, estimates of discount rates
and expected return on plan assets. Changes in these
assumptions may affect the future funding requirements of
the plans and actuarial gain/loss recognized in the statement
of comprehensive income.

Net realizable value and client demand: The Company
reviews the net realizable value of and demand for its
inventory on a quarterly basis to ensure recorded inventory
is stated at the lower of cost or net realizable value and that
obsolete inventory is written off.

Depreciation

Depreciation on property, plant and equipment has been
provided on Straight Line Method except certain assets
for which higher rates were considered based on their
estimated useful life as per the provisions of Schedule II of
Companies Act, 2013.

Depreciation on property, plant and equipment other than
Roads, Bridges and Culverts, Township, Furniture & Fittings,
Computers, Vehicles are provided for their remaining value
reduced by residual value over its remaining useful life
as technically assessed. The residual values are reviewed
periodically. As on 1st April, 2022 the remaining useful life
of assets Pellet Plant and Port facility was estimated for 5
years, the useful left over life of Captive Power Plant is 15
years from 1st April, 2014 and Blast Furnace Unit is 10 years
from 1st April, 2016. Additions during the year to Plant
Machinery except Components/ Machinery whose useful life

is different and capable of independent use, and limited to those useful life. Components/ Machinery whose useful life is different
from respective plant and machinery and capable of independent use depreciated with respective useful life.

Temporary Structures has been provided for in full, retaining a nominal value of H1 per item.

Depreciation on accounting software SAP S4/HANA made based on estimated useful life of 5 years from the date of use .

The value of assets and the rate of depreciations adopted vis-a-vis the life and rate of depreciation as per Companies Act, 2013
are as follows:

In respect of other assets i.e. Township Building, Roads-RCC and other than RCC, Furniture & Fittings - General, Furniture & Fittings
- Canteen & Guest House, Motor Vehicles, Office Equipment's, Computers - Normal & Computers -Servers, the useful life as per
Schedule II of the Companies Act, 2013 has been adopted.

Component accounting of tangible assets being mandatory, where cost of part of the asset significant to total cost of the asset and
useful life of that part is different from useful life of principal asset, the useful life of that significant part determined separately for
computation of depreciation charge.

Application of new and amended standards

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2025, MCA has notified Ind AS - 117
Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable to the Company
w.e.f. April 1, 2024. The Company has reviewed the new pronouncements and based on its evaluation has determined that it does
not have any significant impact in its financial statements.

Standards notified but not yet effective

There are no new standards that are notified, but not yet effective, upto the date of issuance of the Company's financial statements.
For and on behalf of Board of Directors

Sd/- Sd/- as per our report of even date

G. V. Kiran B. K. Mahapatra for M/s G Balu Associates LLF

Chairman-cum-Managing Director & Director (Commercial) Chartered Accountants

Director (Finance)-Addl. Charge (DIN 09613777) (FRN: 000376S/S200073)

(DIN 07605925)

Sd/- Sd/- Sd/-

Ram Krishna Mishra Clafton Siddharth CA. R. Ravishankar

(Chief Financial Officer) Company Secretary Partner

(PAN AAVPM8846M) (PAN : BCMPC5447C) (Membership No: 026819)

Place: Bengaluru
Date: 28^th May 2025