Provisions and Contingent Liabilities

Provisions are recognised 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
recognised for future operating losses.

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 recognised as interest expense. However contingent liabilities are not considered. Contingent liabilities
are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the
occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a present
obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a
reliable estimate of the amount cannot be made.

34 The Company has incurred net loss during the year ended 31 March 2025 which has adversely affected the net worth of the
Company. The Company's financial performance has been adversely affected due to non-availability of working capital for
operations, and other external factors beyond the Company's control. It is expected that the overall financial health of the
Company would improve after debt resolution and improvement in availability of working capital. Accordingly, the Company has
prepared the financial statements on the basis of going concern assumption. Refer Note 17A.

35 SEGMENT INFORMATION

The Company is in the business of manufacturing of Ferro Alloys and hence has only one reportable operating segment as per IND
AS 108 "Operating Segments". There is no reportable geographical segment of the Company.

The Company's entire revenue comes from domestic sales only and sale to a customer is more than 10% of the Company's revenue.

Notes:

(i) Current financial assets and liabilities are stated at amortized cost which is approximately equal to their fair value.

(ii) Non- current financial assets and liabilities measured at amortised cost have same fair value as at 31 March 2025 and
31 March 2024.

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: quoted prices (unadjusted) in active markets for identical assets or liabilities

- 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 asset or liability that are not based on observable market data (unobservable inputs)

39 FINANCIAL RISK MANAGEMENT

The Company's principal financial liabilities comprise loans and borrowings in domestic currency, trade payables and other payables.
The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include
loans, trade and other receivables, and cash and short-term deposits that derive directly from its operations.

The Company has exposure to the following risks from its use of financial instruments:

- Credit risk

- Liquidity risk

- Market risk

This note presents information about the Company's exposure to each of the above risks and how the Company is managing such risk.

The Board of Directors has 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's risk management is carried out by the CFO and his team.

(A) 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, and arises principally from the Company's receivables from customers and others. In addition, credit risk
arises from financial guarantees.

The Company follows a credit risk management policy under which the Company transacts business only with counterparties that
have a certain level of credit worthiness based on internal assessment of the parties, financial condition, historical experience, and
other factors. The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The
Company has established a credit policy under which each new customer is analysed individually for creditworthiness.

The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other
receivables. The main components of this allowance are a specific loss component that relate to individually significant exposures,
and a collective loss component that are expected to occur. The collective loss allowance is determined based on historical data
of payment statistics for similar financial assets. Debt securities are analysed individually, and an expected loss shall be directly
deducted from debt securities.

Credit risk also arises from transactions with financial institutions, and such transactions include transactions of cash and cash
equivalents, various deposits, and financial instruments such as derivative contracts. The Company manages its exposure to this
credit risk by entering into transactions only with banks that have high ratings. The Company's treasury department authorizes,
manages, and oversees new transactions with parties with whom the Company has no previous relationship.

Furthermore, the Company limits its exposure to credit risk of financial guarantee contracts by strictly evaluating their necessity
based on internal decision making processes, such as the approval of the board of directors.

(B) 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 always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions,
without incurring unacceptable losses or risking damage to the Company's reputation.

However, in view of various unfavourable factors as set out in Note 34, the Company has been experiencing stressed liquidity
condition. In order to overcome such situation, the Company has been taking measures to ensure that the Company's cash flow
from business borrowing or financing is sufficient to meet the cash requirements for the Company's operations.

(C) Market Risk

Market risk means that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices.
The goal of market risk management is optimization of profit and controlling the exposure to market risk within acceptable limits.

Interest Rate Risk

The Company manages the exposure to interest rate risk by monitoring interest rate risks regularly in order to avoid exposure to
interest rate risk on borrowings at variable interest rate.

The exposure of the Company's borrowings to interest rate changes at the end of the reporting period are as follows:

a) Interest Rate Risk Exposure

The carrying amount of interest-bearing financial instruments as of 31 March 2025 and 31 March 2024 are as follows:

b) Sensitivity Analysis On The Fair Value Of Financial Instruments With Fixed Interest Rate

The Company does not account for any fixed rate financial assets and liabilities at fair value through profit or loss, and the
Company does not designate derivatives (interest rate swaps) as hedging instruments under fair value hedge accounting
model. Therefore a change in interest rates at the reporting date would not affect profit or loss.

c) Sensitivity Analysis On The Cash Flows Of Financial Instruments With Variable Interest Rate

As of 31 March 2025 and 31 March 2024, provided that other factors remain the same and the interest rate of borrowings
with floating rates increases or decreases by 1%, the changes in interest expense for the years ended 31 March 2025 and 31
March 2024 were as follows:

40 LEASES

Leases As Lessee (Deemed Disclosure As Per Ind AS 116)

(a) The Company has entered into certain contracts having contract period of more than 12 months and following deemed disclosure
of lease liabilities is made as per Ind AS 116.

(f) The weighted average incremental borrowing rate prevailing at the time of lease recognition has
been applied to lease liabilities recognised in the Balance Sheet.

Accounting Policies

The Company As Lessee

The Company assesses whether a contract is or contains a lease, at inception of the contract. The Company recognises a right-of-
use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term
leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Company
recognises the lease payments as an operating expense on a straight-line basis over the lease term, unless another systematic
basis is more representative of the time pattern in which economic benefits from the leased assets are consumed. Contingent and
variable rentals are recognized as expense in the periods in which they are incurred.

Lease Liability

The lease payments that are not paid at the commencement date are discounted using the interest rate implicit in the lease. If
that rate cannot be readily determined, which is generally the case for leases in the Company, the lessee's incremental borrowing
rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar
value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.

41 CAPITAL MANAGEMENT
Risk Management

The fundamental goal of capital management is to:

• safeguard the Company's ability to continue as a going concern, so that it can continue to provide returns to shareholders and
benefits to other stakeholders, and

• maintain an optimal capital structure to reduce the cost of capital.

The Board of Directors has the primary responsibility to maintain a strong capital base and reduce the cost of capital through prudent
management of deployed funds and leveraging opportunities in domestic and international financial markets so as to maintain investor,
creditor and market confidence and to sustain future development of the business.

For the purpose of company's capital management, capital includes issued capital and all other equity reserves. The company manages
its capital structure in light of changes in the economic and regulatory environment and the requirements of the financial covenants.

However in view of certain adverse factors and challenges being faced by the Company over past few years as explained in Note 34,
the net worth of the Company is eroded.

(f) The Company is taking support of Related Parties for making payments on-behalf of the Company for supply of essential goods
and critical raw material to ensure that Plant is operational, and adjusting the receivable and payable amount. The transaction
falling under the ambit of Section 188 of Companies Act are at Arm's length and in Ordinary Course of business.

44 (i) Some winding up petitions filed against the Company are pending and the Company is contesting the same.

(ii) Balances of few banks/financial institutions are subject to confirmation.

(iii) The company has used an accounting software for maintaining its books of account which has a feature of recording audit
trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software
and we did not come across any instances of audit trail feature being tampered with during the course of our audit except the
feature of recording audit trail (edit log) facility was not enabled at the database level to log any direct data changes for the
accounting software used for maintaining the books of account from 01 April 2023 to 26 January 2025.

45 ADDITIONAL REGULATORY INFORMATION

(a) Title Deeds Of The Immovable Properties

The title deeds of immovable properties, other than immovable properties where the Company is the lessee and the lease
agreements are duly executed in favour of the lessee, disclosed in the standalone financial statements are held in the name of
the Company.

(b) Loans And Advances (Repayable On Demand Or Without Specifying Any Terms Or Period Of
Repayment) To Specified Person.

During the year ended 31 March 2025, the Company did not provide any loans or advances, which remain outstanding, repayable
on demand or without specifying any terms or period of repayment, to specified persons (previous year : Nil)

(c) Relationship With Struck Off Companies

The Company does not have any transactions with Company's struck off under section 248 of the Companies Act, 2013 or section
560 of the Companies Act, 1956 during the year ended 31 March 2025 (Previous year : Nil).

(d) Disclosure In Relation To Undisclosed Income

The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed
as income during the year ended 31 March 2025 (Previous year : Nil) in the tax assessments under Income Tax Act, 1961.

(e) Details Of Benami Property Held

The Company does not hold any property under Benami transactions (Prohibition) Act, 1988 (45 of 1988) and rules made
thereunder, and there are no proceedings against the Company for the year ended 31 March 2025 (Previous year : Nil).

(f) Registration Of Charges Or Satisfaction With Registrar Of Companies (ROC)

The Company does not have any charges or satisfaction, which is yet to be registered with ROC beyond the statutory period, during
the year ended 31 March 2025 (Previous year : Nil).

(g) Details Of Crypto Currency Or Virtual Currency

The Company has not traded or invested in crypto currency or virtual currency during the year ended 31 March 2025 (Previous year
: Nil).

(h) Utilization Of Borrowed Fund And Share Premium

The Company has not advanced or loaned or invested funds to any other person(s) or entity (ies), including foreign entities
(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 to or on behalf of the ultimate beneficiaries.

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the
understanding 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.

(i) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government
authority.

(j) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

46 PREVIOUS YEAR FIGURES

The previous year figures are reclassified where considered necessary to conform to this year's classification.

For Singhi & Co. For and on behalf of the Board of Directors

Chartered Accountants

Firm Registration Number - 302049E

Rahul Bothra Vishal Agarwal Manoj Kumar

Partner Vice Chairman & Managing Director Director (Kalinganagar)

Membership Number- 067330 DIN 00121539 DIN 06823891

Place: Kolkata Amisha Chaturvedi Khanna Surinder K. Singhal

Date: 29 May 2025 Company Secretary Chief Financial Officer