2.18 Provisions, contingent liabilities and contingent assets

Provisions are recognized when the Company has a present
obligation (legal or constructive) as a result of a past event,
it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the
obligation. The expense relating to a provision is presented
in the statement of profit or loss net of any reimbursement.
If the effect of the time value of money is material, provisions
are discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision due to the
passage of time is recognized as a finance cost.

A contingent liability is disclosed when:

(a) a possible obligation that arises from past events
and whose existence 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

(b) a present obligation that arises from past events but is
not recognized because:

(i) it is not probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation; or

(ii) the amount of the obligation cannot be measured
with sufficient reliability.

A contingent asset is disclosed, when there is a possible
asset that arises from past events and whose existence 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.

Contingent liabilities and assets are not recognized but are
disclosed in notes.

2.19 Non-current assets (or disposal groups) classified as
held for sale

Non-current assets or disposal groups comprising of assets
and liabilities are classified as 'held for sale' when all the
following criteria are met: (i) decision has been made to sell,
(ii) the assets are available for immediate sale in its present
condition, (iii) the assets are being actively marketed and (iv)
sale has been agreed or is expected to be concluded within
12 months of the Balance Sheet date.

Subsequently, such non-current assets and disposal groups
classified as 'held for sale' are measured at the lower of its
carrying value and fair value less costs of disposal. Non¬
current assets held for sale are not depreciated or amortised.

2.20 Operating segment

Operating Segments are identified based on monitoring
of operating results by the chief operating decision maker
(CODM) separately for the purpose of making decision
about resource allocation and performance assessment.
Segment performance is evaluated based on profit or loss
and is measured consistently with profit or loss of the
Group. Operating Segment is identified based on the type
of products and services, the different risks and returns, and
the internal business reporting system.

Segment revenue, segment expenses, segment assets and
segment liabilities have been identified to segments on the
basis of their relationship to the operating activities of the
segment. Revenue, expenses, assets and liabilities which
relate to the Group as a whole and are not allocable to
segments on a reasonable basis have been included under
"unallocated revenue /expenses / assets / liabilities”.

2.21 Cash flow statement

Cash flows are reported using the indirect method, whereby
the net profit before tax is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of
past or future operating cash receipts or payments and item
of income or expenses associated with investing or financing
cash flows. The cash flows from operating, investing and
financing activities of the Company are segregated.

2.22 Earning per share

Basic earnings per equity share is computed by dividing the
net profit attributable to the equity holders of the Company by
the weighted average number of equity shares outstanding
during the period. Diluted earnings per equity share is
computed by dividing the net profit attributable to the equity
holders of the Company by the weighted average number
of equity shares considered for deriving basic earnings per
equity share and also the weighted average number of equity
shares that could have been issued upon conversion of all
dilutive potential equity shares. Dilutive potential equity shares
are deemed converted as of the beginning of the period,
unless issued at a later date. Dilutive potential equity shares
are determined independently for each period presented.

The weighted average number of equity shares outstanding
during the period is adjusted for events of bonus issue,
buy back of shares, bonus element in a rights issue to
existing shareholders, share split and reverse share split
(consolidation of shares).

2.23 Amended Accounting Standards (Ind AS) and
interpretations effective during the period

a) All the Ind AS issued and notified by the Ministry of
Corporate Affairs under the Companies (Indian Accounting
Standards) Rules, 2015 (as amended) till the standalone
financial statements are authorized, have been considered
in preparing these standalone financial statements.

b) Application of new and revised Indian Accounting
Standards (Ind AS)

Amendments to Ind AS 21 - Lack of exchangeability

MCA via notification dated 7 May 2025, announced
amendments to Ind AS 21, The Effects of Changes
in Foreign Exchange Rates, to specify how an entity
should assess whether a currency is exchangeable
and how it should determine a spot exchange rate
when exchangeability is lacking. The amendments also
require disclosure of information that enables users of
its financial statements to understand how the currency
not being exchangeable into the other currency
affects, or is expected to affect, the entity's financial
performance, financial position and cash flows.

The Company has reviewed the amendment and
based on its evaluation, has determined that it does
not have any material impact on the standalone
financial statements.

Classification of liabilities as current or non¬
current and non-current liabilities with covenants
-Amendments to Ind AS 1

MCA via notification dated 13 August 2025 announced
amendments to Ind AS 1, Presentation of Financial
Statements'. The amendment relates to classification
of liabilities as current or non-current and non-current
liabilities with covenants. In the context of classifying
a liability as current, it removes the requirement of
existence of a right to defer settlement for at least 12
months after the reporting date and instead requires
that the said right should exist on the reporting date
and have substance. The amendment also introduces
guidance on classification of liabilities with covenants.

The Company has no impact of this amendment in its
classification criteria of current and non-current liabilities.

Supplier Finance Arrangements - Amendments to
Ind AS 7 and Ind AS 107

MCA via notification dated 13 August 2025 announced
amendments to Ind AS 7, Statement of Cash Flows and
Ind AS 107, 'Financial Instruments: Disclosures' which
introduced disclosure requirements with the objective
to enable users of financial statements to assess
how supplier finance arrangements affect an entity's
liabilities, cashflows and exposure to liquidity risk.

The Company has reviewed the amendment and
based on its evaluation, has determined that it does
not have any material impact on the standalone
financial statements.

International Tax Reform - Pillar Two Model Rules -
Amendments to Ind AS 12

MCA via notification dated 13 August 2025 announced
amendments to Ind AS 12, Income Taxes, which
include a temporary exception to the recognition
and disclosure of deferred taxes arising from the
implementation of the Pillar Two model rules; and
additional disclosure requirements targeted at a
reporting entity's exposure to income-taxes in periods
in which the Pillar Two Model legislation is enacted or
substantively enacted but not yet in effect.

The Company has reviewed the amendment and
based on its evaluation, has determined that it does
not have any significant impact on the standalone
financial statements.

c) New standards and amendments to existing
Standards which are issued but are not yet effective
and have not been early adopted by the Company

Classification of liabilities as current or non¬
current and non-current liabilities with covenants
-Amendments to Ind AS 1

Paragraph 74 of Ind AS 1 currently effective for the
year ended 31 March 2026 requires the entity not to
classify the liability as current, if there is a breach of
a material covenant of a long-term loan arrangement
on or before the end of the reporting period with the
effect that the liability becomes payable on demand
on the reporting date, however, the lender agreed, after
the reporting period and before the approval of the
financial statements for issue, not to demand payment
as a consequence of the breach.

MCA vide notification dated 13 August 2025, has
introduced amendment under Paragraph 74 of Ind AS
1 which requires the entity to classify the liability as
current under the aforementioned situation because, at
the end of the reporting period, it does not have the right
to defer its settlement for at least twelve months after
that date. Such amendment has been made effective
for annual reporting periods beginning on or after 01
April 2026 retrospectively in accordance with Ind AS 8.

This amendment is not expected to have a material
impact on the Company's Financial Statements.

Brief description of the valuation technique and inputs used to value investment property:

The Company's investment property consists of a commercial property situated in Kolkata. The fair values as aforesaid
are based on a valuation performed by a registered valuer as defined under Rule 2 of The Companies (Registered valuer and
valuation) Rules, 2017.

There is a restriction on the realisability of the investment property regarding the transfer of title as it is taken on lease. There are no
contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

Notes:

6.1 Indmet Mining Pte Ltd ('"'Indmet'"'), a wholly owned subsidiary incorporated in Singapore, held an investment in its Indonesian
subsidiary, PT Sumber Rahayu Indah ("”PT Sumber'"'), which possessed a coal mining concession critical to IMFA's operations.
However, due to unresolved overlapping boundary issues, the concession could not be developed, leading to liquidation of
PT Sumber in the earlier years. Subsequently, an application was submitted to the Accounting and Corporate Regulatory
Authority (ACRA) of Singapore to strike off Indmet. Further, on 20 February 2025, vide ACRA's letter, Indmet has now been
officially removed from the Register of ACRA and Indmet stands dissolved on the same date and the said dissolution has
been duly accounted for in the books of accounts in previous year.

6.2 Investment in equity shares of Ferro Chrome Producers Private Limited amounts to ? 25,000 (31 March 2025: ? 25,000) and
therefore has been rounded off to nil.

6.3 Investment in Ortel Communications Limited has been fully written off during the previous year, which was fully impaired
in earlier years.

(iii) Aggregate number of bonus share issued, shares issued for consideratoin other than cash and shares bought back for

the period of five years immediately preceding the date as at which the Balance Sheet is prepared

During the financial year 2021-22, 2,69,77,053 fully paid up bonus equity shares of ? 10 each was issued in the ratio of 1:1 ( i.e. 1
bonus equity share for every 1 existing equity share of the Company ) to the shareholders who held equity shares on the record
date i.e. 10 January 2022.Post the issuance of bonus equity shares, the total paid up equity share capital of the Company is
increased from ? 26.98 crore to ? 53.96 crore. Security premium of ? 26.78 crore and capital redemption reserve of ?0.20 crore
have been utilised towards issuance of bonus shares.

(iv) Rights, preferences and restrictions in respect of each class of shares

The Company's authorised share capital consists of two classes of shares, referred to as equity shares and preference shares,
having par value of ? 10/- and ? 100/- each respectively. Each holder of equity share is entitled to one vote per share. The preferential
shareholders have preferential right over equity shareholders in respect of repayment of capital and payment of dividend.
In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the Company
after distribution of all preferential amounts, in proportion to their shareholding.

*Includes remeasurement of employee defined benefit obligation (net of tax) of 70.84 crore. (previous year: 713.87 crore)

Nature and purpose of reserves
Securities premium

Securities premium is credited to record the premium on issue of shares. The reserve can be utilised in accordance with the
provisions of the Companies Act, 2013.

General reserve

General reserve represents appropriation of profits by the Company.

Capital reserve

Capital reserve has been created pursuant to the scheme of amalgamation approved by the relevant authorities, of its
wholly owned subsidiary and represents the difference between the net assets acquired and the investment in the said
subsidiary. .

Retained earnings

Retained earning are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other
distributions paid to shareholders.

Debt instruments through other comprehensive income

This reserve represents the cumulative gains and losses arising from the revaluation of debt instruments classified as fair value
through other comprehensive income (FVTOCI). It is presented net of amounts reclassified to profit or loss upon disposal of such
instruments and impairment losses recognized on them.

18.1 Details of securities provided (including for current maturities as stated under "Short term borrowings" in Note 22) and
their repayment terms :

The term loan for Kalinga Nagar-1 Project are secured against hypothecation of the respective moveable and
immoveable assets of the plant on first charge basis. Second charge on current assets of the project, present and future.
The term loan for Ethanol Project are secured against hypothecation of the respective moveable fixed assets including
plant and machineries of ethanol plant located at Therubali and on moveable fixed assets of Ferro Alloys plant located at
Therubali and Choudwar.

(b) Other contingent liabilities :

(i) During the previous years, the Company received demand notices vide Section 21(5) of The Mines and Minerals (Development
and Regulation) Act, 1957 amounting to ? 122.90 crore for alleged excess extraction of minerals over the quantity permitted under
environment clearance in respect of four mines viz., Sukinda Chromite Mines, Chingudipal Chromite Mines, Bangur Chromite
Mines and Nuasahi Chromite Mines pertaining to financial years 2000 to 2011 which had been raised by the respective Deputy
Director of Mines and Mining Officers of the Government of Odisha. Aggrieved by the said notices, the Company had filed Revision
Applications before the Mines Tribunal, New Delhi challenging the said demand notices, however the same was dismissed in the
previous years. Subsequently, the Company has filed writ petitions before Hon'ble High Court of Orissa challenging the Final Order
dated 14 September 2021 passed by the Revisionary Authority, Ministry of Mines, Government of India and the aforementioned
demand notices. The Hon'ble Court vide its Order dated 24 May 2022 has stayed the impugned demand notices subject to deposit
of ? 30 crore before the appropriate State Authorities and such Orders have been complied with by the Company.

(ii) The Company had revised its mining plan in respect of Mahagiri mine ( in financial year 2019-20) and Sukinda Chromite mine
(in 2016-17) by enhancing the annual production capacity to 6.00 lakh MT and 3.71 Lakh MT respectively. Subsequent to the
same, the District Sub-Register, Jajpur had raised demand notices amounting to ? 45.20 crore towards differential stamp duty
and registration fee in respect of the aforementioned Mining Lease Deeds pursuant to Notification no. 312-SM-REM-3/2011-SM

dated 13 January 2012 of the Commissioner -cum-secretary to the Government of Odisha, Department of Steel and Mines, as
published in the Odisha Gazette on 18 January 2012. The Company has filed writ petitions before the Hon'ble High Court of Orissa
challenging the legality and validity of such demand notices. The Hon'ble High Court vide its interim order dated 17 March 2021
has given direction to the authorities that no coercive action shall be taken against the Company for such demand notices till the
next date of hearing and the matters are pending as on date.

Notes:

1 It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of
the respective proceedings.

2 The amounts disclosed above represent the best possible estimates arrived at on the basis of available information and does not
include penalty, if any.

3 The Company is contesting all of the above demands and the management believes that the ultimate outcome of these proceedings
are not expected to have a material impact on the Company's standalone financial statements and hence no provision has been
made in this regard.

40 Financial risk management

40.1 Financial risk factors

The Company's principal financial liabilities comprise of borrowings, lease liabilities, trade and other payables. The main purpose
of these financial liabilities is to manage finances for the Company's operations. The Company's principal financial assets include
investment in equity instruments, investment in debt instrument and mutual funds, trade receivables, advances and cash and bank
balances that arise directly from its operations. The Company also enters into derivative transactions to hedge foreign currency
and not for speculative purposes. The Company is exposed to market risk, credit risk and liquidity risk and the Board of Directors
('Board') oversee the management of these financial risks through its Risk Management Committee. The Risk Management Policy
of the Company formulated by the Risk Management Committee and approved by the Board, states the Company's approach to
address uncertainties in its endeavour to achieve its stated and implicit objectives.

(c) Price risk

The Company invests its surplus funds in various mutual funds, short term debt funds, government securities and fixed
deposits. In order to manage its price risk arising from investments, the Company diversifies its portfolio in accordance
with the limits set by the risk management policies. The Company has exposure across mutual fund, bonds and alternate
investment fund. Due to the short tenure of mutual fund, these do not pose any significant price risk.

1) Investment risk

The Company is exposed to investment risk arising from investments in mutual funds recognised at fair value through
profit and loss (FVTPL). As at 31 March 2026, the carrying value of such instruments recognised at FVTPL amounts to
? 232.54 crore (previous year ? 749.41 crore). The details of such investments in mutual funds are given in Note 11 (B)(i).

The Company is also exposed to investment risk arising from investments in bonds recognised at fair value through
other comprehensive income (FVTOCI). As at 31 March 2026, the carrying value of such instruments recognised at
FVTOCI amounts to ? 99.42 crores (previous year ? 115.56 crores). These being debt instruments, the exposure to risk
of changes in market rates is minimal. The details of such investments in bonds are given in Note 11(A)(i)&(ii).

The Company is also exposed to investment risk arising from investments in alternate investment fund recognised at
FVTPL. As at 31 March 2026, the carrying value of such instruments recognised at FVTPL amounts to ? 21.99 crores
(previous year ? 31.67 crores). The details of such investments in alternate investment fund are given in Note 11(B)(ii).

2) Commodity rate risk

Material cost is the largest cost component for the Company, thus exposing it to the risk of price fluctuations based
on the supply and demand conditions of those materials except captive chrome ore. Commodity price risk exposure is
evaluated and managed through operating procedures and sourcing policies. The Company has put in place a mix of
long-term and short-term mitigation plans. The long-term price view consisted of identifying single vendor dependency
and finding alternate materials or vendors for the same. The Company also has a robust process of estimating the
prices at a quarterly frequency, analysing deviations, if any, and taking short-term corrective measures in addition to
altering the outlook for the long-term, if required. The Company also leverages its financial resources to modify the
inventory levels as required keeping in mind the price outlook in the near term. Similarly, the Company modifies the
contract period in negotiations with the vendors to either lock in prices or to keep them open based on the expected
price movements.

i) Credit risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company.
Credit risk arises primarily from financial assets such as trade receivables, investment in mutual funds, derivative financial
instruments, other balances with banks and other receivables.

Credit risk arising from investment in mutual funds, derivative financial instruments, term deposits and other balances with banks
is limited and there is no collateral held against these because the counterparties are banks and recognised financial institutions
with high credit ratings assigned by the credit rating agencies.

(b) Deposits with banks and other financial instruments

The Company considers factors such as track record, market reputation and service standards to select the mutual funds
and bonds for investments and banks with which balances and deposits are maintained.The Company does not maintain
significant cash balances other than those required for its day to day operations.

iii) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations
without incurring unacceptable losses. The Company's objective is to maintain a balance between continuity of funding
and flexibility through the use of bank overdrafts, letters of credit and working capital limits. The Company ensures it
has sufficient cash to meet operational needs while maintaining sufficient margin on its undrawn fund based borrowing
facilities at all times.

The Company's credit profile strengthened during the year with ICRA upgrading its long-term credit rating to [ICRA]AA
(Stable) from [ICRA]AA- (Stable) and reaffirming the short-term rating at [ICRA]A1 . The upgrade reflects the expected
improvement in the Company's scale of operations, earnings and cash flows following capacity expansion and strategic
acquisitions, supported by healthy operating performance and a stable financial profile.

The Company had access to the following undrawn fund based borrowing facilities at the end of the reporting period:

40.2 Capital management

For the purpose of the Company's capital management, capital includes issued equity capital, securities premium and all other equity
reserves attributable to the equity shareholders of the Company. The primary objective of the Company's capital management is to
safeguard continuity, maintain healthy capital ratios in order to support its business and maximize shareholder value. The Company
manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial
covenants. The funding requirement is met through equity, internal accruals, long term borrowings and short term borrowings.
In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets
financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. The Company
manages its capital requirement by overseeing the debt-equity ratio.

( f in crore)

41 (b). Fair valuation techniques

The Company maintains policies and procedures to value financial assets and financial liabilities using the best and most

relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received

to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The following methods and assumptions were used to estimate certain fair values.

i) The fair values of investment in quoted equity instrument is based on its quoted market price at the reporting date. The
fair values of investment in unquoted equity instrument approximates its carrying amount which is the most appropriate
estimate of fair value in the absence of recent information to measure fair value.

ii) The fair values of the mutual funds are based on their published Net Asset Values at the reporting date.

iii) The fair value of cash and deposits, trade receivables, trade payables and other current financial assets and liabilities
approximate their carrying amounts largely due to the short-term maturities of these instruments.

iv) The fair values of derivatives are based on marked to market valuation statements received from banks with whom the
Company has entered into the relevant contracts.

Fair value hierarchy

The following table provides the fair value measurement hierarchy of Company's asset and liabilities, grouped into Level 1 to

Level 3 as described below:

i) Quoted prices / published NAV (unadjusted) in active markets for identical assets or liabilities (level 1). It includes fair
value of financial instruments traded in active markets and are based on quoted market prices at the balance sheet date
and financial instruments like mutual funds for which net assets value (NAV) is published by mutual fund operators at
the balance sheet date.

ii) Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that
is, as prices) or indirectly (that is, derived from prices) (level 2). It includes fair value of the financial instruments that
are not traded in an active market (for example, over-the-counter derivatives) and are determined by using valuation
techniques. These valuation techniques maximise the use of observable market data where it is available and rely as
little as possible on the Company specific estimates. If all significant inputs required to fair value an instrument are
observable, then the instrument is included in level 2.

During the year ended 31 March 2026 and 31 March 2025, there were no transfers between level 1 and level 2 fair value
measurements and no transfer into and out of level 3 fair value measurements. The carrying amount of financial assets
and financial liabilities are measured at amortised cost in the financial statements are a reasonable approximation of
their fair values since the Company does not anticipate that the carrying amounts would be significantly different from
the values that would eventually be received or settled except for investment in subsidiaries and associate.

Following table describes the valuation techniques used and key inputs to valuation for level 1,2 and 3 of the fair value
hierarchy, as at 31 March 2026 and 31 March 2025 :

The Company provides provident fund benefits for eligible employees as per applicable regulations wherein both employees
and the Company make monthly contributions at a specified percentage of the eligible employee's salary. Contributions under
such schemes are made to state managed funds. The Company has no further payment obligations once the contributions
have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as
employee benefit expense when they are due.

(b) Defined benefit plan:

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. The amount of gratuity payable
on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary
multiplied for the number of completed years of service.

The Employees Gratuity Fund Scheme, which is a defined benefit plan, is managed by a trust maintained with Insurance
Companies other than contractual employees.

The present value of the obligation is determined based on actuarial valuation using Projected Units Credit Method, which
recognises each period of service as giving rise to additional units of employees benefit entitlement and measures each unit
separately to buildup the final obligation.

The Company provides for gratuity for employees from the date of joining.

The following table sets out the details of amount recognised in the financial statements in respect of employee
benefit schemes:

These assumptions were developed by the management with the assistance of independent actuary. Discount rate is
determined close to each year end by reference to government bonds of relevant economic markets and that have terms
to maturity approximating to the terms of the related obligation. Other assumptions are based on management's historical
experience. The estimate of salary growth rate considered in actuarial valuation take into account the inflation, seniority,
promotion and other relevant factors such as supply and demand in the employment market.

Note : In the absence of detailed information regarding plan assets which is funded with insurance companies, the composition of each
major category of plan assets, the percentage and amount for each category of the fair value of plan assets has not been disclosed.

(vii) Risk exposure

These plans are exposed to the actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk.

Investment risk : The present value of the defined benefit plan liability (denominated in Indian Rupee) is calculated using a discount
rate which is determined by reference to market yields on government bonds at the end of the reporting period. For other defined
benefit plans, the discount rate is determined by reference to market yields at the end of the reporting period on high quality
corporate bonds when there is a deep market for such bonds; if the return on plan asset is below this rate, it will create a plan deficit.

Interest risk : A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an
increase in the return on the plan assets.

43. Disclosure pursuant to Indian Accounting Standard 19 - Employee benefits(Contd..)

Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of
the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan
participants will increase the plan's liability.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the plan's liability.

The weighted average duration of the defined benefits obigation at the end of the year is 4 years ( 31 March 2025: 5 years)
under funded gratuity plan. The weighted average duration of the defined benefits obigation at the end of the year is
9 years ( 31 March 2025: 9 years) under unfunded gratuity plan.

(c) Compensated absences (unfunded):

The leave obligations cover the Company's liability for sick and earned leaves. The Company does not have an unconditional
right to defer settlement for the obligation beyond one year. However based on past experience, the Company does not
expect all employees to take the full amount of accrued leave or require payment within the next 12 months, therefore based
on the independent actuarial report, only a certain amount of provision has been presented as current and remaining as non¬
current. Amount of ? 7.82 crore (previous year: ? 7.83 crore) has been recognised in the statement of profit and loss.

/ Am rr-\\

45. Other notes

(i) The Nominated Authority, Ministry of Coal, Government of India, through its Provisional Compensation Order
dated 15 October 2024, had directed Utkal Coal Limited ('UCL, erstwhile subsidiary of the Company and thereafter
merged into the Company in the previous years), and the successful bidder to mutually negotiate the compensation
for building(s) constructed on Rehabilitation and Resettlement (R&R) land related to Utkal 'C' Coal Mines. The
compensation for R&R assets was mutually agreed at ? 7.00 crore, which has been received in the current financial year.
In the previous years, UCL had received compensation for the land and statutory expenses. Out of this, the compensation for
land has been contested by the successful allottee, and thereafter UCL/ the Company has also filed a counterclaim regarding
the said compensation. The matter is currently pending before the Coal Tribunal, Talcher."

(ii) Disputes between the Company and Grid Corporation of Orissa Ltd. ("GRIDCO") relating to the methodology for billing of
power drawn during period of grid disturbance etc. were settled in favour of the Company vide a unanimous award of an
Arbitral Tribunal dated 23 March 2008, by virtue of which GRIDCO was directed to pay ? 0.57 crores along with interest
and ? 0.30 crore towards costs. Subsequently, GRIDCO filed a petition before the District Judge, Bhubaneswar objecting
to the award and obtained an interim stay on the operation of the said award. The Company filed it's objection thereto on
19 February 2009 and the Court of the District Judge, Bhubaneswar pronounced the judgement dated 8 January 2018 in
favour of the Company dismissing the petition filed by GRIDCO. Subsequently, GRIDCO filed an appeal before Hon'ble High
Court of Orissa challenging the judgment of the learned District Judge, which is pending for final adjudication.

45. Other notes(Contd..)

(iii) The Company had filed a petition before the Hon'ble Orissa High Court under Section 392 of the Companies
Act, 1956 to modify the Scheme of Arrangement and Amalgamation and to confirm the reduction of share
capital by cancellation of 3,49,466 equity shares of ? 10/- each held by erstwhile 'ICCL Shareholders Trust'. The
petition was approved by the Hon'ble High Court vide its order dated 16 March 2011 and registered with the
Registrar of Companies (ROC), Orissa on 1 April, 2011. Accordingly, the paid up equity share capital reduced from
? 26,32,65,190/- divided into 2,63,26,519 equity shares of ? 10/- each to ? 25,97,70,530/- divided into 2,59,77,053 equity shares
of ? 10/- each. Subsequently, several shareholders challenged the reduction of share capital before a Division Bench of the
Hon'ble High Court which, vide its judgment dated 19 July 2011, directed the Company, inter alia, to restore the aforesaid
shares to the Trust and allot it to the interested shareholders The Company then moved the Hon'ble Supreme Court which
issued notice in the matter and granted interim stay on the subscription or cancellation of the 3,49,466 shares.

(iv) The Company has taken necessary steps for surrender of Nuasahi Chromite Mines. The Surrender Order is pending from
Government of Odisha.

(v) The judgement of the Hon'ble Supreme Court upholding the right of States to impose levy on mineral bearing land
is significant and has financial implications for the mining sector at large as well as downstream industries. In this
context, the Orissa Rural Infrastructure and Socio-Economic Development Act, 2004 (ORISED) enacted by the State
Legislature was struck down by Hon'ble Orissa High Court on 5 December 2005. Subsequently, an appeal was filed by
the State Government and the matter is sub-judice before the Hon'ble Supreme Court. As on date, there are no pending
demands against the Company on this account as on date and further clarity is awaited in order to determine financial
liability, if any.

(vi) During the year, the Company acquired the Ferro Chrome Plant of Tata Steel Limited located at Kalinganagar, Odisha, pursuant
to the Asset Transfer Agreement dated 4 November 2025. The transaction was consummated on 27 February 2026 for a
base consideration of ?610 crores (excluding Goods and Services Tax, 'GST'). Additionally, the Company has assumed net
working capital of ? 25.03 crores (excluding GST) as defined in the agreement. The transaction was evaluated under Ind AS
103, 'Business Combination' to assess whether it constitutes a business combination. Owing to the absence of substantive
processes having acquired, the acquired set does not to qualify as a business and accordingly, the transaction has been
accounted for as an asset acquisition.

46. As per Ind AS 108 on "Operating Segments", segment information has been provided under the Notes to Consolidated Financial
Statements of the Company.

47. As per section 135 of the Act, and rules therein, the Company is required to spend at least 2% of its average net profits computed
in accordance with section 198 of the Act for three immediately preceding financial years towards CSR activities. The Company
has formulated a CSR committee as per the Act. The funds are utilised on the activities which are specified in Schedule VII to the
Act. Details of CSR expenditure are as follows:

(iv) Performance obligations and remaining performance obligations

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be
recognised as at the end of the reporting period and the explanation as to when the Company expects to recognise these
amounts in revenue.

The aggregate value of performance obligations that are completely or partially unsatisfied as at 31 March 2026 is Nil.

Definitions:

Debt = Non-current borrowings Current borrowings Lease liabilities

Net worth = Paid-up share capital Reserves created out of profits - Accumulated losses

Earning for Debt Service = Net Profit after taxes Non-cash operating expenses like depreciation and other amortizations
Interest - other adjustments like loss non-cash notional income.

Cost of goods sold = Cost of materials consumed Purchase of stock-in-trade Changes in inventories of finished goods, stock-
in-trade and work-in-progress

Working capital = Current assets - Current liabilities

EBIT = Earnings before interest and tax

Capital employed = Total tangible net worth Total debt Deferred tax liabilities

50. Leases(Contd..)

Rental expenses recorded as short-term leases under Ind AS 116, during the year ended 31 March 2026 is ? 19.40 crore. (Previous
year : ?16.82 crore)

The incremental borrowing rate of 10.15% p.a. to 8.35% p.a. has been applied to lease liabilities recognised in the
standalone Balance Sheet.

Total cash outflow for leases of ? 24.33 crore and ? 21.90 crore for the year ended March, 31 2026 and 2025 respectively including
cash outflow for short term and low value lease.

Rental Income on the assets given on operating lease is ? 0.35 crore ( Previous year: ? 0.65 crore).

There are no leases which are yet to commence as on 31 March 2026.

51. The Board of Directors of the Company, in its meetings held on 4 November 2025, declared an interim dividend of ?5/- per equity
share (face value of ?10 each) for the financial year 2025-26.

Additionally, in its meeting held on 27 May 2026, the Board of Directors have recommended a final dividend of ?7.50 per equity
share (face value of ?10 each) for the financial year 2025-26 subject to necessary approval by the shareholder in the ensuing
Annual General Meeting of the Company.

For the financial year 2024-25, the Board of Directors had declared an interim dividend of ?10/- and ?5/-per share (face value of ?10
each) in its meetings held on 7 November 2024 and 29 January 2025 respectively and also final dividend of ?5/- per equity share
(face value ?10/- each) for the financial year 2024-25.

52. Other statutory information:

(i) The Company does not have Benami Property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
rules made thereunder. Further, no proceeding has been initiated or pending against the Company for holding any Benami
property.

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

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

(iv) The Company has complied with the requirement with respect to number of layers as prescribed under section 2(87) of the
Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

(v) The Company has not advanced or loaned or invested funds in any other person(s) or entity(is) including foreign
entities(Intermediaries) with the understanding that the intermediary shall:

(a) Directly or indirectly lend or invest in other person(s) or entity(ies) 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

(vi) The Company has not received any funds from any person(s) or entity(ies), including foreign entities(Funding Party) with the
understanding(whether recorded in writing or otherwise) the Company shall:

(a) Directly or indirectly lend or invest in other person(s) or entity(ies) identified in any manner whatsoever by or on behalf
of the Funding Party Company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

(vii) The Company does not have any such 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, survey or any
other relevant provisions of the Income-tax Act 1961).

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

52. Other statutory information:(Contd..)

(ix) The Company has filed all the required quarterly return statements of current assets with the bank as per covenants of the
Sanction of Workings Capital Limit which are in agreement with the books of accounts.

(x) The Company does not have any transactions or outstanding balances during the current year as well as previous year with
companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.

(xi) The Company has not revalued the property, plant and equipment including right - of - use assets or intangible assets during
the current and previous year.

(xii) The Company has not entered into any scheme of arrangements in terms of section 230 to 237 of the
Companies Act, 2013.

(xiii) The Company has not granted any loan or advances in nature of loans, during the current year to promoters, directors KMPs
or other related parties, either severally or jointly with any other person, that is repayable on demands or without specifying
any terms or period of repayment.

53. The Ministry of Corporate Affairs (MCA) has prescribed a requirement for companies under the proviso to Rule 3 (1) of the
Companies (Accounts) Rules, 2014, as amended by the Companies (Accounts) Amendment Rules, 2021. The Company confirms
that for the financial year ended March 31,2026, it has complied with the requirement to use accounting software that includes an
audit trail feature. The accounting software used by the Company for maintaining its books of account:

(i) Records an audit trail of each and every transaction entered during the financial year.

(ii) Maintains an edit log capturing every change made to the books of account, along with the date and time of such changes.

(iii) Ensures that the audit trail feature is enabled at all times and cannot be disabled or tampered with.

(iv) Preserves the audit trail in accordance with applicable statutory record retention requirements.

54. Previous year figures have been regrouped/rearranged, wherever considered necessary, to make them comparable with those
of current year.