Deferred Tax Liability has been calculated in accordance with the Return of Income filed / assessment made. As required by the IND AS 12, on conservative basis the Deferred Tax Assets and Deferred Tax Liabilities have not been recognised in absence of virtual certainty supported by convincing evidence that future taxable income against deferred tax liabilities / assets will be available/realised.

Disclosures under Ind AS 115 - Revenue from Contracts with Customers

The unbilled revenue (contract assets) primarily relates to the Company’s rights to consideration for work completed but not billed at the reporting date. The amount of contract assets during the Year ended 31 March 2025 and 31 March 2024 were impacted by impairment charges of Rs.Nil and Rs. Nil respectively. The contract assets are transferred to receivables when the rights become unconditional. This usually occurs when the Company issues an invoice to the customer.

The advance from customers (contract liabilities) primarily relate to the advance consideration received from customers while invoicing in excess of revenues are classified as income received in advance, both of which constitute contract liabilities. These will be recognised as revenue when the Company fulfils the performance obligations

11.2 Terms / Rights attached to equity shares.

The company has only one class of equity share having a par value of Rs.10/- per share Each share holder of equity share is entitiled to dividends approved by the shareholders. In the event of liquidation of the company, the holders of equity share wil be entitled to receive remaining assets of the company after distribution to creditors and all preferential amount. The distribution will be in proportion to the number of equity share held by each shareholder.

As per record of the company,including its register of shareholders/members and other declaration received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

As per record of the company,including its register of shareholders/members and other declaration received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

a) Soft Loan (including interest thereon) under Jharkhand Industries Rehabilitation Scheme, 2003 from the State Government of Jharkhand are secured by:

(i) A mortgage of all immovable properties both present and future; and a charge by way of hypothecation in favour of the lender of all the movable, including movable machinery, machinery spares, tools and accessories, present and future, stock of raw materials, semi-finished goods, consumable stores and such other movables as may be agreed upon

(ii) Additionally secured by way of pledge of equity share capital of Rs.3250.00 Lakhs allotted to the private promoter (MLCSL). and Corporarte guarantee by SBEC Sugar Ltd.given to Govt. of Jharkand against such soft loan.

The mortgage and charge referred to in (i) and (ii) mentioned above; shall be in terms of the Rehabilitation Scheme 2003 of the Government of Jharkhkand Sanctioned by the BIFR and be subject and subservient to the mortgages and charges created and / or to be created in favour of the secured lenders.

b) As per para 8.4 of the sanctioned BIFR Scheme dated 29.07.2004, the interest on Soft loan under Rehabilitation Scheme, 2003 from Govt. of Jharkhand shall be funded over the entire rehabilitation period i.e. upto 30.09.2011. The Soft loan and the funded interest is repayable after 30.09.2011 and the defaulted amount of Principal and interest as on 31.03.2025 comes to Rs. Nil and Rs.11018.8 Lakhs including unprovided interest of Rs. 8272.61 Lakhs (P/Y Rs.625.00 lakhs and Rs.10194.41 lakhs including unprovided interest of Rs. 7448.22 lakhs) respectively inclusive of unprovided interest of Rs.8272.61 lakhs from 10th August, 2013 to 31st March, 2025 (Rs. 7448.22 Lakhs upto 31.03.2024), for which the company has approached Government of Jharkhand for reschedulement proposed in the Modified Draft Rehabitation Scheme filed before the BIFR in 2012.

2. SEGMENT REPORTING

The Management has identified one reportable business segment for current year and two reportable Business Segments for the previous year namely: Trading of packaging goods and Sponge Iron.

4. Leases

The company’s leasing arrangements are in respect of premises (for office and accommodation of company’s officer). These arrangements are both cancellable and non-cancellable in nature and ranging between one to three years as at 31st March, 2025.

2. COMMITMENTS:

2.1 Capital Commitments:

Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs.

Nil (P.Y. Nil)

2.2 Other Commitments: Rs. Nil (P.Y. Nil)

3. Rehabilitation Scheme:

(I) The company was declared a Sick Industrial Company within the meaning of clause (0) of Sub-Section (1) of Section 3 of the Sick Industrial Companies (Special Provision) Act, 1985 by the Hon’ble BIFR vide its order dated 19.12.1996. The Hon’ble BIFR vide its order dated 29th July, 2004 had sanctioned the Rehabilitation Scheme. The total payment of Rs. 13500.00 Lakhs envisaged as per the scheme had been duly made.

(II) In the review hearing held on 3rd September, 2007 & 22nd September, 2010, the BIFR, by exercising powers under Section 18 (5) and 18 (9) of the SICA, clarified / directed that the Company shall make payment of the due instalments to its foreign lenders in 'Euro’ as per the amount reflected in Euro in the statement annexed to the sanctioned scheme along with the applicable interest i.e. LIBOR plus 1% per annum (LIBOR 3% in case of delay/ default in payment of instalments).

(III) The Company had filed appeal before the Appellate Tribunal for Industrial and Financial Reconstruction (AAIFR) challenging the above said order. AAIFR vide its order dated 23-12-2011 had dismissed the appeal. The above order of AAIFR was challenged by the Company by filing Writ Petition in Jharkhand High Court on 06.02.2012. In the hearing held on 22nd February, 2012, the Appeal was dismissed.

4. The demand of water charges Rs.3902.41 Lakhs inclusive of interest on arrear of water bills as on 31.03.2025(net provision made by company) (P.Y. Rs.2131.91 Lakhs as on 31.3.2024) raised by Chief Engineer, Subernarekha Multipurpose Project, Chandil had been disputed by the company under a Writ Petition with Jharkhand High Court, Ranchi. Hon’ble High Court had remanded the matter back to the Chief Engineer, Chandil Complex, Jamshedpur for passing a speaking order. However, a recovery certificate, has been issued by the Executive Engineer, Chandil for recovery of Rs.2270.60 Lacs, which is being challenged by the Company. The company based on its own estimate of liability, has made total provision for Rs. 128.76 Lakhs up to 31st March, 2025 (Rs.96.00 Lakhs as on 31.3.2024).

5. South Eastern Coalfield Ltd. has imposed and recovered a penalty by encashment the bank guarantee of Rs.215.28 Lakhs in 2011-12 on account of short lifting of coal quantity in terms of Fuel Supply Agreement (FSA) dated 02.05.2008. The Company has taken up the matter with Coal India Limited/ South Eastern Coalfield Ltd. for refund of the said amount for settlement of dispute under clause 15.3 of the FSA. No provision has been made for penalty recovered since the matter is pending under writ petition filled by the Company before the Hon’ble High Court of Chhattisgarh, Bilaspur. Court Advised for dispute settlement with general manager (Marketing and sales), SECL. Both parties are directed to appear before General Manager (Marketing and Sales), SECL on the 21st of April 2025.

6. As regard the Unsecured loans taken by the Company from promotors, the Company has approached its promoters for one time settlement of their loans. The settlement will be subsequent to and on the line as per settlement arrived at with Government of Jharkhand for soft loans.

7. Interest on Soft Loan from Government of Jharkhand under Jharkhand Industrial Rehabilitation Scheme 2003 amounting to Rs.8272.61 Lakhs (Rs. 7448.22 Lakhs upto March 31, 2024) not been provided and is subject to representations for waiver.

8. Related Party Transactions (RPT) in respect of renting of the office of the Company is Rs. 18.44 Lakhs (P.Y. 39.73 Lakhs) and the availing or rendering of services including sale and purchase of goods amounting to Rs. 534.41 Lakhs (P.Y. 4475.78 Lakhs) as covered under section 188 (1) (c) and (d) respectively and Rules made thereunder and is within the overall limits of Rule 15 of the Companies (Meetings of Board and its Power) Rules, 2014.

9. Outstanding dues to Micro, Small and Medium Enterprises:

This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act 2006, has been determined to extent such parties have been identified by the Company on the basis of information and record available with them.

Accordingly, the disclosure in respect of the amounts payable to such enterprises as 31st March, 2025 is Rs.667.99 Lakhs (Previous year Rs. Nil).

10. (a) ACIT, Central Circle JSR vide Asstt. Order u/s 143(3) dt. 31.03.2016 for the AY 2013-14 has passed the order by

reducing the returned loss from Rs.2424.29 Lakhs to Rs.1740.15 Lakhs by disallowing the cost of Raw material consumption of Rs.684.14 lakhs due to excess consumption as compared to average of Rs.5.2% of the sales value and issued notice of demand u/s 156 of the Act for levy of Penalty u/s 271(1) (c).

Aggrieved by the said order, the Company filed appeal u/s 246 A of the Income Tax Act before the Commissioner of Income Tax (Appeals)-3, Patna on 2.5.2016 for drop of disallowance and dismissal of Penalty proceedings. Last date of hearing was on 17.02.2025 and no further dates is given by ACIT.

(b) ACIT, Central Circle JSR vide Asstt. Order U/S 143(3) dt 30-09-2016 for the AY 2014-15 has reduced the returned loss from Rs.1220.69 Lakhs to Rs.562.08 Lakhs by disallowing the cost of raw material Rs.145.48 Lakhs, personnel cost Rs.369.94 Lakhs and depreciation of Rs.143.19 Lakhs and issued notice of demand u/s 156 of the Act for levy of penalty u/s 271(1)(c) of the Act.

Aggrieved by the said order, the company has filed appeal u/s 246A of the Act before the Commissioner of Income Tax, (Appeal) Patna on 05-11-2016 for drop of disallowances and penalty proceedings. Last date of hearing was on 17.02.2025 and no further dates is given by ACIT

(c) As per Assessment Year 2017-18 Income Tax portal, a demand of Rs.20.62 Lakhs is outstanding, The Company has filed an application U/s 154 for the rectification of mistake.

(d) For Assessment Year 2018-19, assessment order has been passed/s 143(3) accepting the return of income filed by the Company and income has been determined at NIL.

However, in the computation of income Rs.0.73 Lakhs has been charged as Interest for Deferment of Advance Tax. Since the company is not liable to pay any tax for the said assessment year, no advance tax was payable and therefore, the said interest is not payable.

The Company needs to file application U/s 154 of the Income Tax Act, 1961 for rectification of mistake apparent on record.

Even as per assessment order a refund, including interest, of Rs.17.60 Lacs is due and has not been received till date.

(e) Assessment Year 2013-14 & 2014-15

Income Tax Department has filed criminal proceedings against the company and Mr. R. K. Sharma for delay in deposit of Tax Deducted at source in the Economic Offence court at Ranchi.

The Company has also filed an application for compounding of the offence before the Principal Commissioner at Patna. Compounding application rejected by Principal Chief commissioner of income tax (Bihar and Jharkhand), Patna on 08.04.2025 and issued direction to CIT (TDS), Patna and the assessing officer (TDS) may take necessary action in this matter.

11. Credit/Debit balances of the Creditors, Lenders, Debtors and Advances as well as Bank Balances in some cases are subject to reconciliation/confirmation at the yearend on 31.03.2025 & in earlier years.

12. In the opinion of the Board, all assets other than fixed assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet.

13. Other Statutory Information

I. The company does not have any benami property, where any proceeding has been initiated or pending against the company for holding any benami property.

II. The company does not have transactions with company struck off during the previous Year.

III. The company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

IV. The company has not traded or invested in crypto currency or virtual currency during the financial year.

V. The company has not been declared willful defaulter by any bank or financial institution or government or any government authority.

VI. All the title deeds of immovable properties are held in the name of company as at the balance sheet date except stated in Note no.1(Amount Rs 5.93 Lakhs, P.Y.Rs.5.93 Lakhs).

VII. The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall lend or invest in party identified by or on behalf of company (Ultimate beneficiaries)

VIII. The company has not received any fund from any party(s) (funding party) with the understanding that the company shall whether directly or indirectly lend or invest in other person or entities identified by or on behalf of company (“ultimate beneficiaries”) or provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

IX. 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 in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

X. Ministry of Corporate Affairs (MCA) vide its notification number G.S.R. 206(E) dated March 24, 2021 (amended from time to time) in reference to the proviso to Rule 3(1) of the Companies(Accounts) Amendment Rules, 2021, introduced the requirement of only using such accounting software w.e.f. April 01, 2023 which has a feature of recording audit trail of each and every transaction.

The Company used accounting software for maintenance of its books of account, which has a feature of recording audit trail facility at application level of the said software.

During such period, audit trail feature has operated effectively for the software and there were no instance of audit trail feature being tempered with.

*The above Investments does not include equity investments in subsidiaries, associates and joint ventures which are carried at costs and hence are not required to be disclosed as per Ind AS 107 “Financial Instruments Disclosures”.

Management has assessed that Cash and cash equivalents, Other balances with banks, Loans, Trade receivables, Other financial assets, Borrowings, Lease liabilities, Trade payables and Other financial liabilities carried at amortised cost approximate their carrying amounts largely due to the short-term maturities of these instruments.

21.Previous year figures have been recast / restated.

Notes 1 to 28 and Annexure - I containing Accounting Policies and General Notes form part of the Financial Statements.