2.1.4 Material Accounting Policy Information

Material accounting policy information has been identified
and disclosed based on the guidance provided under Ind AS
1. The material accounting policy information used in the
preparation of the financial statements have been disclosed
in the respective notes.

2.2 Critical Accounting Judgment And Key
Sources Of Estimation Uncertainty

a. Impairment of non-current assets - Ind AS 36

requires that the Company assesses conditions that
could cause an asset or a Cash Generating Unit (CGU)
to become impaired and to test recoverability of
potentially impaired assets. These conditions include

and its long-term nature, a defined benefit obligation
is highly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount
rate. In determining the appropriate discount rate for
plans operated in India, the management considers
the interest rates of government bonds.

The mortality rate is based on publicly available
mortality tables for the specific countries. Those
mortality tables tend to change only at interval in
response to demographic changes. Future salary
increases and gratuity increases are based on expected
future inflation rates.

Further details about gratuity obligations are given in
Note 26.

c. Taxes - The Company calculates income tax expense
based on reported income. Deferred income tax
expense is calculated based on the differences
between the carrying value of assets and liabilities
for financial reporting purposes and their respective
tax basis that are considered temporary in nature.
Valuation of deferred tax assets is dependent on
management's assessment of future recoverability
of the deferred benefit. Expected recoverability may
result from expected taxable income in the future,
planned transactions or planned tax optimizing
measures. Economic conditions may change and lead
to a different conclusion regarding recoverability.
Further details are given in Note-6.

d. Leases - 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. The lease
payments that are not paid at the commencement date
are discounted using the incremental borrowing rate. The
lease payment includes fixed lease payment, variable
lease payment, exercise price of purchase option,
penalties for termination of contract and any amount
expected to pay. Further details are given in Note-40.

e. Useful lives of depreciable/ amortisable assets
(tangible and intangible) - The Company reviews its
estimate of the useful lives of depreciable/ amortisable
assets at each reporting date, based on the expected
utility of the assets. Uncertainties in these estimates
relate to technical and economic obsolescence that

may change the utility of certain software, customer
relationships, IT equipment and other plant and
equipment. Further details are given in Note-3.

f. Going Concern Assumption

The management has prepared the annual financial
statements on the basis that it will continue to operate
as a going concern. Further details are given in Note 34.

In the course of applying the accounting policies, the
Company is required to make judgments, estimates
and assumptions about the carrying amount of assets
and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions
are based on historical experience and other factors
that are considered to be relevant. Actual results may
differ from these estimates.

The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the
estimate is revised if the revision affects only that
period, or in the period of the revision and future period,
if the revision affects current and future periods.

2.3 New Standards / Amendments To Existing
Standard Issued But Not Yet Effective And
Recent Pronouncements

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. During the year ended 31 March 2025, MCA has
notified Ind AS 117- Insurance Contracts and amendments
to Ind AS 116- Leases, relating to sale and lease back
transactions, applicable from 1 April 2024. The Company
has assessed that there is no significant impact on its
financial statements.

On 9 May 2025, MCA notifies the amendments to Ind AS
21- Effects of Change in Foreign Exchange Rates. These
amendments aim to provide clearer guidance on assessing
currency exchange ability and estimating exchange
rates when currencies are not readily exchangeable. The
amendments are effective for annual periods beginning
on or after 1 April 2025. The Company is currently
assessing the probable impact of these amendments on its
financial statements.

PP&E's residual values, useful lives and method of depreciation are reviewed at each Balance Sheet date and changes, if any, are treated
as changes in accounting estimate.

The Company has not revalued its property, plant and equipment during the current and previous year.

The title deeds of immovable properties where the Company is the lessee, the lease deeds are in the name of the lessee.

Right of Use Assets (ROU)

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. The ROU assets comprise the initial measurement of the corresponding
lease liability, lease payments made at or before the commencement day and any initial direct costs. They are subsequently measured
at cost less accumulated depreciation and impairment losses.

Depreciation Method, Estimated Useful Lives And Residual Value

Depreciation including amortization on tangible assets, where applicable is provided on pro-rata basis under Straight Line Method (SLM)
over the estimated useful lives of the assets as specified in Schedule II to the Companies Act, 2013 (‘the Act'), which is also supported
by technical assessment carried out by the Company other than the following:

• Leasehold assets(Buildings and Plant and Machinery) which are jointly held are amortized over the period of lease i.e., 6 to10 years,
being lower than the useful lives specified in Schedule II to the Act for similar assets.

• Furnace refractories are depreciated over useful life of 5-6 years based on technical assessment carried out by the Company.

• Leasehold land is amortized over the period of lease. No depreciation is provided for freehold land.

The useful lives have been determined based on technical evaluation done by the management's expert which are higher than those
specified by Schedule II to the Companies Act, 2013, in order to reflect the actual usage of the assets. The residual values are not more
than 5% of the original cost of the asset.

Impairment Of Non Financial Assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or
when annual impairment testing for an asset is required, the Company estimates the asset's recoverable amount. An asset's recoverable
amount is the higher of an asset's or cash generating unit's (CGU) fair value less costs of disposal and its value in use. Recoverable
amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from
other assets or Groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount. Non- financial assets other than goodwill that suffered an impairment are
reviewed for possible reversal of the impairment at the end of each reporting period.

Impairment losses of continuing operations, including impairment on inventories, are recognised in profit or loss section of the statement
of profit and loss, except for properties previously revalued with the revaluation taken to OCI. For such properties, the impairment is
recognised in OCI up to the amount of any previous revaluation.

(a) The debts/borrowings of the Company have been classified as Non-Performing Assets (NPA) and are barred by limitation from
the NPA date of 11 July 2012 and accordingly the entire debt classified as current is disputed and as such the same is not to be
considered as acknowledgement of liability by the Company.

(b) Long term borrowing has been applied for the purpose of construction and purchase of property, plant and equipment.

A. Debt Restructuring

The Company has been under financial stress due to various external factors beyond the control of the Company and its
management which amongst others, include (i) failure of the State Government of Odisha to fulfil its obligation under the MOU
executed with the Company for grant of Captive Mines, which has deprived the Company of assured supply of consistent quality
of raw material at a reasonable cost, (ii) de-allocation of Coal Block by Ministry of Coal and Hon'ble Supreme Court judgment
dated 24 September 2014, which has deprived the Company of assured supply of consistent quality of coal at a reasonable cost,

(iii) non-availability of vital raw materials at viable prices due to closure of Mines following the investigations by Shah Commission
which commenced sometime in 2011 and the Hon'ble Supreme Court judgment dated 16 May 2014, (iv) dumping of Steel and
Stainless Steel products by overseas manufacturers resulting in sharp drop in prices, (v) high cost of logistics for transportation of
raw materials as these rates are fixed by Associations at rates much above the Government notified rates, (vi) non-disbursement
of sanctioned loans for Plant operations and adjustment of disbursed loan with interest / principal repayment instead of plant
operations, which resulted in complete depletion of working capital of the Company. The Company has also informed lenders that
it reserves its right to claim losses suffered due to the actions and inactions of lenders arising out of breaches and violations of
contractual and other arrangements and such claim amount shall be claimed as a right of set-off against any dues.

Due to the aforesaid external factors, the EBITDA margins of the Company since 2011-12 have not been sufficient to service
interest / principal repayment and whilst the outstanding principal term loan amount was only H 3,850.00 Million as on 1 April
2013, during the period April 2013 to March 2016, the lenders have charged/recovered approx. H 4,258.51 Million on account
of interest/ repayment whereas EBITDA during this period was only approx. H 1,413.93 Million. This has resulted in ballooning of
liabilities of the Company towards its lenders, which are far in excess of the hard cost of investments in the project for which the
principal term loan had been taken from the lenders.

The Company's debts had been restructured under the aegis of Corporate Debt Restructuring cell (CDR) and a Master Restructuring
Agreement (MRA) dated 19 December 2012 was executed to give effect to the package approved by CDR cell with effect from 1
March 2012. Pursuant to the approval of the Company's Business Re-organisation Plan by the CDR, a Common Loan Agreement
(CLA) had also been executed among the Company, VISA Special Steel Limited and lenders.

State Bank of India (SBI) had filed an application before Hon'ble National Company Law Tribunal (NCLT) for initiating Corporate
Insolvency Resolution Process (CIRP) under Insolvency and Bankruptcy Code (IBC) against the Company, which was dismissed by
NCLT, Cuttack Bench. SBI preferred an appeal before Hon'ble National Company Law Appellate Tribunal (NCLAT) New Delhi which
had directed NCLT to restore the application and proceed further in accordance with law. SBI had since assigned its debt to Assets
Care & Reconstruction Enterprise Limited (ACRE). The aforesaid application had been dismissed as withdrawn during the year
ended 31 March 2025.

Oriental Bank of Commerce, since merged with Punjab National Bank (PNB), had filed an application for initiating CIRP under IBC
which was admitted vide NCLT order dated 28 November 2022. Meanwhile, Hon'ble Orissa High Court had stayed the operation
of the NCLT order dated 28 November 2022. PNB had since assigned its debt to Assets Care & Reconstruction Enterprise Limited
(ACRE) on 25 August 2023 and subsequently ACRE had filed Substitution Application in the matter.

Other lenders like SBI, PNB, Bank of India, Union Bank, Canara Bank, Central Bank of India, Vijaya Bank (since merged with
Bank of Baroda), UCO Bank, Indian Overseas Bank, Exim Bank, Dena Bank (since merged with Bank of Baroda), Bank of Baroda,
State Bank of Travancore (since merged with SBI) and SIDBI have already implemented Resolution through sale of debt to Asset
Reconstruction Company (ARC). Majority of the lenders have assigned their debts to ACRE and more than 95% of the debt has
been assigned to ACRE. The Company is engaged with ACRE for restructuring its outstanding loan exposure including waiver of
interest through out of court settlement, and no adjustment has been carried out in the books of accounts.

The Company does not have working capital and is presently carrying its operation with the support of the operational creditors.
There is panic among operational creditors whose financial support is necessary for plant operations, without which there is risk of
plant closure, agitation and law and order problems from workers. The Company has not filed quarterly returns or statements with
Banks or Financial Institutions as its debt is categorised as NPA and debt is barred by limitation and is disputed.

B The Company stopped providing further interest in its books effective 1 April 2016 since the debt is barred by limitation from the
NPA date of 11 July 2012. The amount of such interest not provided for in the financial year ended 31 March 2025 is estimated at
H 1,601.10 million and the accumulated amount of such unprovided interest as on the said date is estimated at H 13,246.23 million.

C Details Of Securities (Also Refer Note 37)

(i) First pari-passu charge by way of hypothecation of all the Company's current assets and fixed assets (excluding land)
including movable and immovable plant and machinery, machinery spares, tools and accessories, vehicles and other movable
assets both present and future (“Hypothecated Assets”) of the Company, save and except specific assets charged to Banks,
Financial Institutions and Non Banking Financial Companies (NBFC).

(ii) First pari-passu mortgage and charge on the immovable properties of the Company situated at Kalinganagar Industrial
Complex, Jajpur, (Odisha), Golagaon, Jajpur, (Odisha), Raigarh, (Chhattisgarh) and office premises of the Company at
Bhubaneswar, (Odisha).

(iii) Pursuant to CDR, pledge of equity shares of the Company with the CDR Lenders.

(iv) Pledge of entire Equity Shares held by the Company in VISA Urban Infra Limited.

(v) Lien on all Bank Accounts including the Trust and Retention Account.

(vi) The Lenders of SMCF loan are having a second pari-passu charge on the hypothecated assets and a second charge on the
mortgaged assets of the Company.

(vii) The personal guarantee of Mr. Vishambhar Saran, Chairman and Mr. Vishal Agarwal, Vice Chairman and Managing Director
of the Company are invalid due to non-fulfilment of its obligation by lenders, and the matter is sub judice.

D Unsecured loan from related party is interest bearing and repayable on demand.

Additional Disclosures Relating To Employee Benefit Obligations/ Expenses

(I) Post Employment Defined Contribution Plan

The Company contributes to the Provident Fund (PF) maintained by the Regional Provident Fund Commissioner. Under the PF
scheme contributions are made by both the Company and its eligible employees to the Fund, based on the current salaries.
An amount of H 11.78 Million (31 March 2024 : H12.19 Million) has been charged to the Statement of Profit and Loss towards
Company's contribution to the aforesaid PF scheme. Apart from making monthly contribution to the scheme, the Company has no
other obligation.

(II) Post Employment Defined Benefit Plan - Gratuity (Funded)

The Company provides for Gratuity, a defined benefit retirement plan covering eligible employees. As per the scheme, the Gratuity
Trust Funds managed by the Life Insurance Corporation of India (LICI) make payment to vested employees at retirement, death,
incapacitation or termination of employment, of an amount based on the respective employee's eligible salary for specified
number of days, as per provisions of Gratuity Act depending upon the tenure of service subject to a maximum limit of H2.00 Million.
Vesting occurs upon completion of five years of service. Liabilities with regard to the Gratuity Plan are determined by actuarial
valuation as set out in policy below, based on which, the Company makes contributions to the Gratuity Fund.

The following Table sets forth the particulars in respect of the aforesaid Gratuity fund of the Company.

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 when calculating the
defined benefit liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.
(IX) The Company expects to contribute K 7.14 Millions (Previous Year K 12.54 Millions ) to its gratuity fund in 2025-26
Risk Exposure

Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary
overtime. Thus, the Company is exposed to various risks in providing the above gratuity benefit, the most significant of which are
as follows:

Interest Rate Risk : The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase
in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (as shown in
financial statements).

Liquidity Risk : This is the risk that the company is not able to meet the short term gratuity pay-outs. This may arise due to non
availability of enough cash/cash equivalents to meet the liabilities or holdings of liquid not being sold in time.

Salary Escalation Risk : The present value of the defined benefit plan is calculated with the assumption of salary increase rate
of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in
salary used to determine the present value of obligation will have a bearing on the plan's liability.

Demographic Risk : The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company
is exposed to the risk of actual experience turning out to be worse compared to the assumption.

Regulatory Risk: Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act , 1972(as amended
from time to time). There is a risk of change in regulations requiring higher gratuity payouts (e.g. Increase in the maximum limit on
gratuity of H 20,00,000).

Accounting Policies
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 services 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 benefit obligations 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 at 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 on government bonds 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.

Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in profit or loss.

The obligations are presented as current liabilities in the balance sheet if the Company 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.

Post-Employment Obligations

The Company operates the following post-employment schemes:

(a) defined benefit plans such as gratuity and

(b) defined contribution plans such as provident fund.

Defined Benefit Plan

The liability or asset recognised 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.

The present value of the defined benefit obligation 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.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised 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 recognised
immediately in profit or loss as past service cost.

30 EXCEPTIONAL ITEMS

The Exceptional items for the year ended 31 March 2025 (31 March 2024- Nil) include i) Impairment loss on fixed assets of the
manufacturing unit (cash generating unit) of the Company in accordance with Ind-AS 36 on ‘Impairment of Assets' amounting to
H 4,380.75 million (carrying amount H 8,851.72 million less recoverable amount H 4,470.97 million) determined by an independent
registered valuer. The impairment arises due to idling of assets and external factors beyond the control of the Company, resulting in
sub-optimal utilization and diminished economic performance of the assets causing operating losses and adversely impacting the
operational and financial performance of the Company. ii) Write off of abandoned projects lying in Capital Work in Progress amounting
to H 387.50 million since the recovery of the abandoned projects was economically unviable. iii) Write back of H 75.04 million (Principal
amount H 58.44 million and Interest amount H 16.60 million) towards the difference between the outstanding amount and settlement
amount of the Term loan exposure of Edelweiss Asset Reconstruction Company settled during the year.