(IX) PROVISION, CONTINGENT LIABILITIES
AND CONTIGENT ASSETS AND
COMMITMENTS

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. If the effect of the time
value of money is material, provisions are discounted
using equivalent period government securities interest
rate. Unwinding of the discount is recognized in the
statement of profit and loss as a finance cost. Provisions
are reviewed at each balance sheet date and are
adjusted to reflect the current best estimate.

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.
Information on contingent liability is disclosed in the
Notes to the Financial Statements. Contingent assets
are not recognized. However, when the realisation
of income is virtually certain, then the related asset is
no longer a contingent asset, but it is recognized as
an asset.

Decommissioning Liability

The Company records a provision for decommissioning
costs towards site restoration activity related to
leasehold land. The decommissioning costs are
provided at the present value of future expenditure
using a current pre tax rate expected to be incurred to
fulfill decommissioning obligations and are recognized
as part of the cost of the underlying assets. Any change
in the present value of the expenditure, other than
unwinding of discount on the provision, is reflected
as adjustment to the provision and the corresponding
assets. The change in the provision due to the
unwinding of discount is recognized in the statement of
Profit and Loss.

X) FOREIGN CURRENCY TRANSACTIONS
AND TRANSLATION:

Transactions in foreign currencies are recorded at the
exchange rate prevailing on the date of transaction.
Monetary assets and liabilities denominated in foreign
currencies are translated at the functional currency
closing rates of exchange at the reporting date.

Exchange differences arising on settlement or
translation of monetary items are recognized in
Statement of Profit and Loss except to the extent
of exchange differences which are regarded as an

adjustment to interest costs on foreign currency
borrowings that are directly attributable to the
acquisition or construction of qualifying assets, are
capitalized as cost of assets.

In case of an asset, expense or income where a
non-monetary advance is paid/received, the date
of transaction is the date on which the advance was
initially recognized. If there were multiple payments
or receipts in advance, multiple dates of transactions
are determined for each payment or receipt of
advance consideration.

(XI) REVENUE RECOGNITION:

Sale of Goods and Services:

The Company derives revenues primarily from sale
of products comprising of pig iron, sponge iron, pellet,
Alloy steel and Iron & steel castings.

Revenue from contracts with customers is recognized
when control of the goods or services are transferred
to the customer at an amount that reflects the
consideration entitled in exchange for those goods
or services. Generally, control is transferred upon
shipment of goods to the customer or when the goods
is made available to the customer, provided transfer of
title to the customer occurs and the Company has not
retained any significant risks of ownership or future
obligations with respect to the goods shipped.

Revenue is measured at the amount of consideration
which the company expects to be entitled to in exchange
for transferring distinct goods or services to a customer
as specified in the contract, excluding amounts
collected on behalf of third parties (for example taxes
and duties collected on behalf of the government).
Consideration is generally due upon satisfaction of
performance obligations and a receivable is recognized
when it becomes unconditional.

The Company does not expect to have any contracts
where the period between the transfer of the promised
goods or services to the customer and payment by the
customer exceeds one year. As a consequence, it does
not adjust any of the transaction prices for the time
value of money.

Revenue towards satisfaction of a performance
obligation is measured at the amount of transaction
price (net of variable consideration) allocated to that
performance obligation. The transaction price of
goods sold and services rendered is net of variable
consideration on account of volume discounts and
incentives, if any, as specified in the contract with the

customer. Revenue also excludes taxes collected
from customers.

Revenue from rendering of services is recognized over
time by measuring the progress towards complete
satisfaction of performance obligations at the
reporting period.

Contract balances

Trade receivables

A receivable represents the Company's right to an
amount of consideration that is unconditional.

Contract liabilities

A contract liability is the obligation to transfer goods
or services to a customer for which the Company has
received consideration (or an amount of consideration
is due) from the customer. If a customer pays
consideration before the Company transfers goods
or services to the customer, a contract liability is
recognized when the payment is made by the customer.
Contract liabilities are recognized as revenue when the
Company performs under the contract.

Other Income:

Incentives on exports and other Government incentives
related to operations are recognized in the statement
of profit and loss after due consideration of certainty of
utilization/receipt of such incentives.

Interest Income:

Interest income from a financial asset is recognized
when it is probable that the economic benefits will
flow to the Company and the amount of income can be
measured reliably. Interest income is accrued on a time
basis, by reference to the principal outstanding and at
the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts
through the expected life of the financial asset to that
asset's net carrying amount on initial recognition.

Dividend

Dividend income is recognized when the right to
receive dividend is established

(XII) EMPLOYEE BENEFITS EXPENSE:

Short Term Employee Benefits:

Short-term employee benefits are recognized as an
expense in the Statement of Profit and Loss of the year
in which the related service is rendered.

Leave encashment being a short-term benefit is
accounted for using the projected unit credit method,
on the basis of actuarial valuations carried out by third
party actuaries at each Balance Sheet date. Actuarial
gains and losses arising from experience adjustments
and changes in actuarial assumptions are charged or
credited to other comprehensive income in the year in
which they arise.

Post-Employment Benefits

Defined Contribution Plans

Contribution to Provident Fund, a defined contribution
plan, is made in accordance with the statute, and
is recognized as an expense in the year in which
employees have rendered services.

Defined Benefit Plans

The cost of providing gratuity, a defined benefit plan,
is determined using the Projected Unit Credit Method,
on the basis of actuarial valuations carried out by third
party actuaries at each Balance Sheet date. Actuarial
gains and losses arising from experience adjustments
and changes in actuarial assumptions are charged or
credited to other comprehensive income in the period
in which they arise. Other costs are accounted in
statement of profit and loss.

Re-measurements of defined benefit plan in respect
of post-employment and other long-term benefits
are charged to the other comprehensive income
in the year in which they occur. Re-measurements
are not reclassified to statement of profit and loss in
subsequent periods.

(XIII) BORROWING COSTS:

Borrowing costs specifically relating to the acquisition
or construction of qualifying assets that necessarily
takes a substantial period of time to get ready for
its intended use are capitalized (net of income on

temporary deployment of funds) as part of the cost of
such assets. Borrowing costs consist of interest and
other costs that the Company incurs in connection with
the borrowing of funds. For general borrowing used for
the purpose of obtaining a qualifying asset, the amount of
borrowing costs eligible for capitalization is determined
by applying a capitalization rate to the expenditures
on that asset. The capitalization rate is the weighted
average of the borrowing costs applicable to the
borrowings of the Company that are outstanding during
the period, other than borrowings made specifically for
the purpose of obtaining a qualifying asset. The amount
of borrowing costs capitalized during a period does not
exceed the amount of borrowing cost incurred during
that period. All other borrowing costs are expensed in
the period in which they occur.

(XIV) CUSTOMS:

Liability on account of Customs Duty on Imported
materials in transit or in bonded warehouse is
accounted in the year in which the goods are cleared
from customs.

(XV) TAXES ON INCOME

Tax expense represents the sum of current tax (including
income tax for earlier years) and deferred tax. Tax is
recognized in the statement of profit and loss, except to
the extent that it relates to items recognized directly in
equity or other comprehensive income, in such cases
the tax is also recognized directly in equity or in other
comprehensive income. Any subsequent change in
direct tax on items initially recognized in equity or other
comprehensive income is also recognized in equity or
other comprehensive income.

Current tax provision is computed for income calculated
after considering allowances and exemptions under
the provisions of the applicable Income Tax Laws.
Current tax assets and current tax liabilities are off set,
and presented as net.

Deferred tax is recognized on differences between the
carrying amounts of assets and liabilities in the Balance
sheet and the corresponding tax bases used in the
computation of taxable profit. Deferred tax liabilities
are generally recognized for all taxable temporary
differences, and deferred tax assets are generally
recognized for all deductible temporary differences,
carry forward tax losses and allowances to the extent
that it is probable that future taxable profits will be

available against which those deductible temporary
differences, carry forward tax losses and allowances
can be utilised. Deferred tax assets and liabilities are
measured at the applicable tax rates. The carrying
amount of deferred tax assets is reviewed at each
balance sheet date and reduced to the extent that it is
no longer probable that sufficient taxable profits will be
available against which the temporary differences can
be utilised.

D MATERIAL ACCOUNTING JUDGEMENTS,
ESTIMATES AND ASSUMPTIONS

The preparation of the financial statements requires
management to make judgements, estimates and
assumptions that affect the reported amounts of
revenues, expenses, assets and liabilities, and
the accompanying disclosures and the disclosure
of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes
that require a material adjustment to the carrying
amount of assets or liabilities affected in future periods.

i. Depreciation / Amortization and useful
lives of Property Plant and Equipment
(PPE) / Intangible Assets:

PPE / intangible assets are depreciated / amortized
over their estimated useful lives, after taking into
account estimated residual value. Management
reviews the estimated useful lives and residual values
of the assets annually in order to determine the amount
of depreciation to be recorded during any reporting
period. The useful lives and residual values are based
on the Company's historical experience with similar
assets and take into account anticipated technological
changes. The depreciation /amortization for future
periods are revised if there are significant changes
from previous estimates.

ii. Decommissioning Liabilities:

The Liability for decommissioning costs is recognized
when the Company has obligation to perform site
restoration activity. In determining the fair value of
such provision, assumptions and estimates are made
in relation to discount rates, the expected cost to
dismantle and remove the plant from the site and the
expected timing of those costs. The expected cost to
be incurred at the end of the lease term is based on the
estimates provided by the internal technical experts.

iii. Tax:

The Company reviews at each balance sheet date the
carrying amount of deferred tax assets. The factors
used in estimates may differ from actual outcome which
could lead to an adjustment to the amounts reported in
the financial statements.

iv. Contingencies:

Management has estimated the possible outflow of
resources at the end of each annual financial year,
if any, in respect of contingencies / claim / litigations
against the Company as it is not possible to predict the
outcome of pending matters with accuracy.

v. 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. It is determined for an individual
asset, unless the asset does not generate cash inflows
that are largely independent to those from other assets
or groups of assets. Where 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.

I n assessing value in use, the estimated future cash
flows are discounted to their present value using a
pre-tax discount rate that reflects current market
assessments of the time value of money and the risks
specific to the asset. In determining fair value less
cost of disposal, recent market transactions are taken
into account. If no such transactions can be identified,
an appropriate valuation model is used. These
calculations are corroborated by valuation multiples or
other available fair value indicators.

vi. Defined Benefits Plans:

The Cost of the defined benefit plan and other post¬
employment benefits and the present value of such

obligation are determined using actuarial valuations.
An actuarial valuation involves making various
assumptions that may differ from actual developments
in the future. These include the determination of the
discount rate, future salary increases, mortality rates
and attrition rate. Due to the complexities involved
in the valuation 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.

vii. Provisions:

Provisions and liabilities are recognized in the period
when it becomes probable that there will be a future
outflow of funds resulting from past operations or
events and the amount of cash outflow can be reliably
estimated. The timing of recognition and quantification
of the liability requires the application of judgement to
existing facts and circumstances, which can be subject
to change. Since the cash outflows can take place many
years in the future, the carrying amounts of provisions
and liabilities are reviewed regularly and adjusted to
take account of changing facts and circumstances.

E 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. The Company has reviewed
these amendments and determined that there is no
material impact on the financial statements.

Ind AS 1, Presentation of Financial
Statements

The amendment refines the criteria for classifying
liabilities as current or non-current. It clarifies that
a right to defer settlement of a liability for at least 12
months after the reporting period must exist at the
end of the reporting period and have substance. The
amendment also introduces explicit guidance on how
compliance with covenants affects the classification
of liabilities.

The amendments are effective for annual reporting
periods beginning on or after 1^st April, 2025.

Ind AS 21, The Effects of Changes in
Foreign Exchange Rates

The MCA notified amendments to Ind AS 21 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 require disclosures that enable users
of financial statements to understand how a lack of
currency exchangeability affects, or is expected to
affect, the entity's financial performance, financial
position, and cash flows.

The amendments are effective for annual reporting
periods beginning on or after 1^st April, 2025.

2.07 In the earlier years, the Directorate of Enforcement (ED) by way of two attachment orders had provisionally attached
certain properties, plant and machinery at Dagori and Siltara for H 30758.39 Lakhs for alleged misuse of coal of Gare
Palma IV/4 coal block in the state of Chhattisgarh. The Adjudicating Authority had confirmed the above provisional
attachments. Subsequently, the Appellate Authority (AT) stayed both the attachments on an appeal filed by the Company.

The Court of Special Judge, New Delhi (CBI Court), vide its order dated 19^th March 2024, had discharged the Company,
Mr Arvind Jayaswal and Mr Ramesh Jayaswal U/S 3 and 4 of the Prevention of Money Laundering Act 2002 (PMLA),
holding that there was no offence of money laundering in the absence of any charge of cheating in securing the
allocation of coal block.

The Company had also filed a separate application for release of the attached properties before the CBI Court. The
AT by its order dated 28^th November 2024 allowed the Company's appeals and set aside the Provisional Attachment
orders. The ED had challenged the CBI Court order in the Honorable Supreme Court (SC) by filing a Special Leave
Petition (SLP). While hearing the ED SLP, the SC had given oral directions to the Company not to press the application
filed with CBI Court for release of the attached properties. Consequently, the Company gave an oral undertaking that it
would not press for its early adjudication.

2.08 In the earlier years, after completion of investigation, the Central Bureau of Investigation (CBI) had filed Charge-Sheet
pursuant to its FIR against the Company and Mr. Ramesh Jayaswal, the Managing Director (MD) and others alleging
misrepresentation and violation of the terms and conditions of the Gare IV/4 Coal Block Allotment Letter and the
executed Mining Lease.

The Special CBI Court, New Delhi, then took cognizance of the matter and had charged the Company and its MD
under section 120-B r/w Sec 420 and 406 of the Indian Penal Code. The case is under trial. The Company strongly
refutes all the allegations and believes it has a good case on merits and is confident that it and its MD would be able to
defend themselves.

2.09 During the previous year, the Company has undertaken Category one Capital Repairs and Upgradation of its the Blast
Furnace (BF) at the Steel Plant Division, Raipur, therefore the Blast furnace and its associated Power Plants, Sinter
Plants, Steel Melting Shops and Rolling Mills remained under shut down for a period of 84 days. Subsequent to repairs
and upgradation, the plant has been fully stabilized and operating at its full capacity.

2.10 During the year, active development of project of DRI and Captive Power Plant at Bilha Bilaspur, Chhattisgarh (Bilha
Project) remained suspended and accordingly the Company has not capitalized Borrowing Costs as per Ind AS - 23.

2.11 CWIP includes Bilha Bilaspur project amounting to H 48262.87 Lakhs (Previous Year H 48262.87 Lakhs) had been put
under abeyance on account of cancellation of the captive coal mines of the Company by the Honourable Supreme
Court of India. The Company had recognized an impairment provision of H 43963.87 Lakhs (Previous Year H 43963.87
Lakhs) for the same in accordance with the Indian Accounting Standards (Ind AS) 36 - ‘Impairment of Assets' and the
Project remained suspended during the year.

2.12 In accordance with the Indian Accounting Standard (Ind AS 36) on “Impairment of Assets", during the year, the
management carried out an exercise of identifying the assets that may have been impaired in accordance with the said
Ind AS. On the basis of a review carried out by the management, there was no further impairment loss on property, plant
and equipment and Capital Work in Progress during the year ended 31^st March, 2026

(b) The Company does not have any intangible assets under development, whose completion is overdue or has exceeded
its cost compared to its original plan except as mentioned in Note No.3.03.

3.03 The Intangible Assets under Development include H 1520.75 Lakhs towards Metabodeli Mines (50 Hectares), H 46.88
Lakhs towards Ramdongri Mines and H 27.40 Lakhs towards Sonadehi Mines. In the case of Metabodeli Mines, the
Company had challenged the validity of section 10 A (2) (c) of the MMDR Amendment Act, 2015 and Rule 8 (4) of the MCR
2016 before the Hon'ble Chhattisgarh High Court (HC) which passed an interim order dated 12^th January, 2017, keeping
the application of the company alive.

Further due to Central Government's clarification to the State Government as regards the eligibility of the Prospecting
license holder for the grant of Mining Lease, the Company opines that its case with respect to the Metabodeli
Mines also falls under Section 10 A (2) (b) in addition to 10 A 2 (c) of the MMDR Act, 1957, as advised by the State
Government previously.

Accordingly, the company filed Writ Petition No. 2757 of 2020, before the HC, to ensure that the Mining Lease is granted
under Section 10 A (2) (b) upon completion of the stipulated conditions. Presently the matter is pending for consideration
before the HC.

In the case of Ramdongri Mines, the State Government of Maharashtra had recommended for grant of Mining Lease
(ML) in favour of the Company on 17^th August, 2004. Further on 31^st October,2023 and 23^rd August,2024 the State
Government of Maharashtra after seeking legal opinion of the Law and Judiciary Department, categorically confirmed
that the issued Letter of Intent “is still valid as on date" and that only forest clearance from the Central Government
remains to be obtained.

The Company had filed application with the Ministry of Environment and Forest (MOEF) for grant of forest clearance
and presently the application is pending for consideration with the MOEF. Once the Forest clearance is obtained,
process for execution of ML will be initiated by the Company. The Company had also filed WP No. 2806/2026, before
the Hon'ble Bombay High Court, Nagpur Bench, Nagpur, praying for direction to the MOEF for grant of Forest clearance
and direction to the State Government of Maharashtra for execution of ML in favour of the Company.

The Company had also challenged the 2021 Amendment to the MMDR Act, 1957, before the HC, vide Writ Petition No.
3696 of 2021 which includes cases of Sonadehi and Devpura Mines. The HC granted Status-Quo on 6^th October 2021.

The Company strongly opines that 2021 Amendment to the MMDR Act, 1957 will not have any impact on the above
referred cases as the Company has vested rights to get Mining Lease in view of the provisions of the 2015 Amendment
to the MMDR Act.

Further the amendment under the Mining Act in the second Proviso of Section 10A (2) (b) provides that “the holder of
a reconnaissance permit or prospecting license whose rights lapsed under the first proviso, shall be reimbursed the
expenditure incurred towards reconnaissance or prospecting operations in such a manner as may be prescribed by the
Central Government"; accordingly, the Company does not envisage any losses on account of the above amendment.

3.04 The Company had filed Mining Lease applications for Rowghat Iron Ore Deposit, Bastar, Chhattisgarh. The Chhattisgarh
State Government (SG) had rejected the same by a common order which was challenged by the Company. The SG had
filed a complaint before the Ministry of Mines which had referred the matter to the Chief Vigilance Officer (CVO), which
couldn't make out any case against the Company. The revision petition of the Company was allowed by the Mines
Tribunal and subsequently the Hon'ble Delhi High Court also confirmed the order of the Mines Tribunal. The Hon'ble
Delhi High Court had specifically observed that the Company had successfully undertaken prospecting operations in
the area.

Subsequently in 2012, SG filed a fresh complaint containing the same allegations before the Chief Vigilance Commission
(CVC). The Central Bureau of Investigation (CBI) on the directions of the CVC had registered an FIR and then filed
Chargesheet against the Company alleging certain irregularities before the Special CBI Court Nagpur where the trial is
under progress. The Company doesn't expect any financial effect of the above matter under litigation.

Other Comprehensive Income

Other Comprehensive Income (OCI) represents the amount recognized in Other Equity consequent to remeasurement of
Defined Benefit Plan.

Equity Component of Compound Financial Instruments

The Company had received the Interest free Inter Corporate Deposits from the Promoters and under Ind AS the difference
between the Fair Value and Transaction Value is recognized as Equity Component of Compound Financial Instruments
under Other Equity.

NATURE AND PURPOSE OF RESERVES

Capital Reserve

The Capital Reserve was created pursuant to the Scheme of Merger of the Steel Division of Corporate Ispat Alloys Limited,
Amalgamation of Nagpur Alloy Casting Limited and Capital incentive received from Government of Maharashtra. It shall be
utilised in accordance with the provisions of the Companies Act, 2013.

Securities Premium

Securities Premium was created when shares were issued at premium. It shall be utilised in accordance with the provisions
of the Companies Act, 2013.

General Reserve

The General Reserve was created pursuant to the Scheme of, Amalgamation of Inertia Iron and Steel Industries Private
Limited, Merger of Sponge Iron Plant and Power Plant of Corporate Ispat Alloys Limited and Abhijeet Infrastructure Limited.
It shall be utilised in accordance with the provisions of the Companies Act, 2013.

Capital Redemption Reserve

Capital Redemption Reserve was created on account of redemption of Preference Shares. It shall be utilised in accordance
with the provisions of the Companies Act, 2013.

Retained Earnings

Retained Earnings represent the accumulated profits/losses made by the Company over the years.

Revaluation Reserve

Revaluation Reserve was created on account of revaluation of Factory Building and Shed. It shall be utilised in accordance
with the provisions of the Companies Act, 2013.

19.01 On 12^th August, 2025 the Company exercised Early Repayment Option Notice, for early redemption of the outstanding
320000 (Nos.) (Three Lakh Twenty Thousand) Non-Convertible Debentures (‘Earlier NCDs'). Accordingly, on 12^th
December 2025, the Company redeemed the Earlier NCDs aggregating to H 227101.39 Lakhs from its internal accruals
and out of the proceeds of fresh allotment of 12.50% p.a, 180000 (Nos.) (One Lakh Eighty Thousand) Unlisted, Unrated,
Secured, Redeemable, Non-Convertible Debentures having face value of H 100000 each, aggregating to H 180000.00
Lakhs (‘New NCDs'), on a private placement basis. The New NCDs are redeemable in 72 monthly instalments starting
from 23^rd December 2025. As on 31^st March, 2026 the Company has utilised the entire issue proceeds for the purpose
for which it was raised.

19.02 The Secured New NCDs Outstandings referred to above aggregating to H 133863.57 Lakhs and H 30000.00 Lakhs
included in Note no. 25 are guaranteed by an unconditional and irrevocable personal guarantee provided by Mr. Arvind
Jayaswal, Mr. Ramesh Jayaswal and Mr. Avneesh Jayaswal. Further they have been secured by first and exclusive
pledge of 53,48,04,690 number of Equity Shares of the Company held by the Promoters and Promoter Group Companies.

19.03 The Secured New NCDs Outstandings referred to above aggregating to H 163863.57 Lakhs (H 30000.00 Lakhs included
in Note no. 25) are further secured by way of:

a. a first ranking pari passu charge, by way of hypothecation, over the hypothecated assets, including Current assets
and Movable assets etc., both present and future, and excluding assets attached by the Enforcement Directorate
(ED) and rights under the mining leases.

b. a first ranking pari passu equitable mortgage by the Issuer over the mortgaged assets, including Immovable assets
and excluding assets attached by the ED, land of the Steel Division of Corporate Ispat Alloys Limited acquired
pursuant to merger and rights under the mining leases.

19.04 The Secured New NCDs are subject to Call Option of 20 Months and Put Option of 24 Months from the Date of Allotment
(i.e. 12^th December 2025). The NCDs with an Outstandings of H 163863.57 Lakhs are to be repaid as per the documented
terms as under:

19.05 The Company was entitled to defer its liability to pay Sales Tax (including a portion of Purchase Tax) in respect of its
certain units. The liability under the Schemes as on 31^st March, 2026 is H 7863.02 lakhs (Previous Year : H 7863.02 lakhs)
which is provided for on the basis of its Net Present Value (Net of payments) of H 948.33 lakhs (Previous Year : H 1709.98
lakhs). This Sales-tax liability is repayable in five equal annual installments starting at the end of the tenth year from the
year to which it relates and will be fully paid up by 30^th April, 2028.

19.06 I n the earlier years, the Company had issued and allotted total no. 28,08,766 zero coupon, unlisted, unsecured,
redeemable, Non-Convertible Debentures of H 100 each to Maa Usha Urja Private Limited (MUUPL) aggregating to
H 2808.76 Lakhs, on private placement basis, by conversion of the payable amount by the Company to MUUPL and has
to be repaid on 09^th February, 2032 (subject to availability of call/put options). The Fair Value of NCDs as on 31^st March
2026 has been calculated with Discounting rate of 17.50% p.a.

25.01 H 47928.31 Lakhs are secured by way of:

a. a first ranking pari passu charge, by way of hypothecation, over the hypothecated assets (excluding the
Enforcement Directorate (ED) attached assets and rights under the mining leases), both present and future.

b. a first ranking pari passu equitable mortgage by the Issuer over the mortgaged assets (excluding the ED Attached
Assets, the Corporate Ispat Alloys Limited (CIAL) Steel Division land acquired under merger and rights under the
mining leases).

c. Further, guaranteed by an unconditional and irrevocable personal guarantee provided by Mr. Arvind Jayaswal,
Mr. Ramesh Jayaswal and Mr. Avneesh Jayaswal. Facilities carries interest rate of 11.00% p.a.

30.01 During the year 2005, the Government of Chhattisgarh (CG) published the Chhattisgarh Upkar (Sansodhan) Adhiniyam,
2004, according to which the Company is liable to pay energy development cess @10 paise per unit generated from
its captive power plants. The levy of energy development cess has been disputed by the Company and is pending
before the Hon'ble Supreme Court of India (SC).

The Office of the Chief Electrical Inspector, CG had sent demands for the energy development cess since the SC vide its
interim order dated 2^nd November 2007 permitted the department to raise the bill, however it directed that no coercive
steps shall be taken by the CG to recover the dues till further orders.

The legislative competence of the CG is not under challenge. The Company had been legally advised in the past that it
is highly unlikely that the provision by which the CG has imposed energy development cess will be struck down by the
SC. In view of the above and as a matter of prudence, the Company has made a provision of energy development cess
aggregating to H 7209.73 Lakhs till 31^st March 2026.

34.04 Risk Exposures

These plans typically expose the company to Actuarial risks as Investment Risk, Interest Rate risk, Longevity risk and

Salary risk.

Investment Risk The present value of the defined benefit plan obligation is calculated using a discount rate which is
determined by reference to market yields at the end of the reporting period on government bonds.

Interest Rate Risk A decrease in the bond interest rate will increase the plan obligation; however, this will be partially offset
by an increase in the return on the plan debt investments.

Longevity Risk The present value of the defined benefit plan Obligation 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 obligation.

Salary Risk The present value of the defined 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 obligation.

Details of Asset-Liability Matching Strategy:-

Gratuity Benefits liabilities of the company are Funded. There are no minimum funding requirements for a Gratuity Benefits
plan in India and there is no compulsion on the part of the Company to fully or partially pre-fund the liabilities under the Plan.
The trustees of the plan have outsourced the investment management of the fund to an insurance company. The insurance
company in turn manages these funds as per the mandate provided to them by the trustees and the asset allocation which
is within the permissible limits prescribed in the insurance regulations. Due to the restrictions in the type of investments that
can be held by the fund, it may not be possible to explicitly follow an asset-liability matching strategy to manage risk actively
in a conventional fund.

B Management is of the view that above litigations will not impact significantly the financial position of the Company.

C The Company has received Show Cause notices from the Excise and Goods and Service Tax (GST) department which
mainly relates to demand of duty for sale of exempted goods, denial of credit on structural steel used in new plants, bank
expenses, Demand on Royalty and excess ITC claimed then appeared in GSTR-2A etc. The Company does not foresee
any losses on this account.

D In the earlier years, the Company has received various demand notices from sales tax authorities for non-submission
of declaration in “C-Form" and also due to absence of tax exemption eligibility certificate related to sales of pellets and
as on 31^st March, 2024, such demand notices aggregating to H 1375.01 lakhs were disclosed under other contingent
liabilities as Disputed Sales Tax and GST.

However, during the previous year, a) the Honorable High Court of Chhattisgarh, vide its order dated 11.03.2025, allowed
the Company's appeal against the sales tax demand notice of H 13.55 Lakhs for the year 2008-09 for applicability of
notification dated 31.10.2006 and accordingly, the Company is entitled for the benefit of exemption without submission
of C-Form; and b) the Honorable Commercial Tax Tribunal of Chhattisgarh, vide its order dated 13.05.2024, allowed the
Company's appeal against the sales tax demand notice of H 140.77 Lakhs for the year 2017 -18 on account of receipts
of tax exemption eligibility certificate on sale of pellets.

The Company is of the view that since the sales tax demand notices were also issued under the same section and
having same allegation, so all such demand notices will also be dropped and hence the Company has not considered
those demand notices as contingent liabilities as on 31^st March, 2026.

B. Segment Identification, Reportable Segments and definition of each segment:

i. Reportable Segments:

The Company's operating segments are established on the basis of those components that are evaluated regularly
by the Chief Operating Decision Maker, in deciding how to allocate resources and in assessing performance.
These have been identified and reported taking into account the differing risks and returns, nature of products, the
organisational structure and the internal reporting system of the Company.

ii. Primary / Secondary Segment Reporting Format:

a) The risk-return profile of the Company's business is determined predominantly by the nature of its products.
Accordingly, the business segments constitute the Primary Segments for disclosure of segment information.

b) Since all the operations of the Company are predominantly conducted within India, there are no separate
reportable geographical segments.

c) No Non-Current Assets of the Company is located outside India as on 31^st March, 2026 and 31^st March, 2025.

d) No single customer has accounted for more than 10% of the Company revenue for the year ended 31^st March,
2026 and 31^st March, 2025.

iii. Segment Composition:

a) Steel Segment is engaged in manufacture and sale of Pellets, Pig Iron, Sponge Iron, Billets, Rolled Products
and includes its captive power plants at its units located at Siltara, Raipur and Mining activities in the state of
Chhattisgarh and Maharashtra.

b) I ron and Steel Castings Segment comprises of manufacture and sale of Construction, Engineering and
Automotive Castings with production facilities at Nagpur in Maharashtra and Anjora in Chhattisgarh.

c) Other Segment comprises of trading of Coal & PVC pipes.

d) Unallocated comprises of income, expenses, assets and liabilities which can not be directly identified to any
of the above segments.

NOTE : 43 EXPENDITURE RELATED TO CORPORATE SOCIAL RESPONSIBILITY (CSR) AS PER
SECTION 135 OF THE COMPANIES ACT, 2013 READ WITH SCHEDULE VII.

a. CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof by the
Company during the year is H 484.32 Lakhs (Previous Year : H 1631.66 Lakhs)

b. i) Expenditure incurred related to Corporate Social Responsibility is H 1158.80 lakhs (Previous Year : H 1715.26 lakhs).

ii) Expenditure carried forward to the Financial Year 2026-27 is H 792.18 lakhs (Previous Year : H 117.70 lakhs).

c. The amount of Shortfall at the end of the year out of the amount required to be spent by the company during the FY 2025¬
26 : Nil FY 2024-25: Nil

d. Total amount of Previous years shortfall: Nil

e. Reason for shortfall: Not Applicable

NOTE : 45 FAIR VALUES

45.01 Financial Instruments by category:

Set out below is a comparison by class of the carrying amounts and fair value of the Company's financial assets and liabilities
that are recognized in the financial statements.

45.03 Fair Value Hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation
techniques:-

i) Level 1:- Quoted prices / published Net Assets Value (unadjusted) in active markets for identical assets or liabilities.
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 is published by mutual fund
operators at the Balance Sheet date.

ii) Level 2:- 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). It includes fair value of the financial instruments
that are not traded in an active market (for example, over-the-counter derivatives) is 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 instrument is included in level 2.

iii) Level 3:- Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs). If
one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

The following table provides hierarchy of the fair value measurement of Company's asset and liabilities, grouped into Level
1 (Quoted prices in active markets), Level 2 (Significant observable inputs) and Level 3 (Significant unobservable inputs) as
described below:

45.02 Fair Valuation techniques used to determine Fair Value

The Company maintains procedures to value its financial assets or 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 the Fair Values:

i) Fair Value of Cash and Cash Equivalents, Other Bank Balances, Trade Receivable, Trade Payables, Current Loans,
Current Borrowings, Deposits and other Current Financial Assets and Liabilities are approximate at their carrying
amounts largely due to the short-term maturities of these instruments.

ii) The fair values of Interest bearing non-current borrowings and Margin money are approximate at their carrying amount
due to interest bearing features of these instruments.

iii) The Fair Values of Non-Interest bearing Non-current Borrowings and lease liabilities are calculated based on
discounted cash flows using a lending rate. They are classified as level 2 fair values in the fair value hierarchy due to the
inclusion of observable inputs.

iv) Fair values of Investment in equity are derived from quoted market prices in active markets.

v) The Fair Value of the remaining financial instruments is determined using discounted cash flow analysis.

vi) The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.

appropriate risk management methodologies and tools for use in identifying, assessing, managing and reporting on risks,
and to determine the appropriate balance between cost and control of risk and deploy appropriate resources to manage
and optimise key risks. The activities are developed to provide feedback to the management and other interested parties
(e.g. Audit committee, Board etc.) by way of Action taken report. The results of these activities ensure that risk management
plan is effective in the long term.

46.01 Market Risk and Sensitivity:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in market
prices. Market risk comprises three types of risks: Foreign Currency Rate risk, Interest Rate risk and other Price risks,
such as Commodity price risk. Financial instruments affected by market risk include Loans and Borrowings, Deposits
and Investments.

The sensitivity analysis relates to the position as at 31^st March 2026 and 31^st March 2025.

The sensitivity analysis excludes the impact of movements in market variables on the carrying value of post-employment
benefit obligations, provisions and on the non-financial assets and liabilities. The sensitivity of the relevant Statement of
Profit and Loss item is the effect of the assumed changes in the respective market risks. This is based on the financial assets
and financial liabilities held as at 31^st March, 2026 and 31^st March, 2025.

(a) Foreign Currency Exchange Risk and Sensitivity:

Foreign Currency Exchange risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
due to changes in Foreign Currency Exchange rates. The Company's exposure to the aforesaid risk relates primarily
to the Company's operating activities forex business primarily in USD, EURO and has foreign currency trade payables
and receivables. Consequently, it's exposed to foreign currency exchange risk. The Company regularly reviews and
evaluates its exchange rate exposure and follows its established risk management policies and plan.

The following table demonstrates the sensitivity in the USD, SEK, RUB and EURO to the Indian Rupee with all other
variables held constant. The impact on the Company's Profit Before Tax (PBT) due to changes in the fair values of
monetary assets and liabilities is given below:

b) Interest Rate Risk and Sensitivity:

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes
in market interest rates .The company has non-current borrowings in the form of secured Non-Convertible Debentures
(NCDs) and current borrowings in the form of Working Capital Facilities. There is a fixed rate of interest in the case
of NCDs and Working Capital Facilities; hence, there is no interest rate risk associated with these borrowings. The
company also has interest-free non-current borrowings in the form of sales tax deferral and unsecured NCDs from
related parties; hence, there is no interest rate risk associated with these borrowings.

c) Commodity Price Risk:

The Company's revenue is exposed to the market risk of price fluctuations on sale of its iron, steel and castings products.
These prices may be influenced by factors such as supply and demand, production costs (including the costs of raw
material inputs), global and regional economic conditions, governmental policies and growth. Adverse changes in any
of these factors may reduce the revenue earnings.

The Company prices its Iron and Steel products as per the accepted market practices.

The Company primarily purchases its raw materials (other than captively sourced material) in the open market from
third parties or from approved suppliers on contract basis and is consequently subject to prices fluctuations on the
purchase of non-coking, coking coal and other raw material inputs.

The company's almost entire requirement of the Iron ore and fines (major raw material) is fulfilled from its captive Iron
ore mines, thereby reducing commodity price risk of raw materials significantly.

The Company aims to sell its products and procure key raw materials at prevailing market prices. Predominantly the
selling prices and input raw materials move in the same direction although with a lag effect.

The following table details the Company's sensitivity to a 5% movement in the input price of Coking Coal.

46.02 Credit Risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables)
and from its financing activities, including deposits with banks and other financial instruments. The Company periodically
reviews and monitors this risk.

a) Trade Receivables:

The Company extends credit to customers in normal course of business. The Company considers factors such as
credit track record in the market and past dealings with the Company for extension of credit to customers. The Company
monitors the payment track record of the customers. Outstanding customer receivables are regularly monitored. The
Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in
several jurisdictions and industries and operate in largely independent markets .The history of trade receivables shows
a negligible provision for bad and doubtful debts.The Company also strives to reduce the credit risks by resorting to
arrangements for Customers Letter of Credit & Clean Bill Discounting facilities from reputed financers. Therefore, the
Company does not expect any material risk on account of non performance by any of the counterparties.

The Company measures the expected credit loss of trade receivables, which are subject to credit risk, based on
historical trend, industry practices, the operating business environment and adjusted for forward looking information.
Loss rates are based on actual credit loss experience and past trends.

The Company has used practical expediency by computing the expected credit loss allowance for trade receivables
based on provision matrix on historical credit loss experience and adjusted for forward looking information. The
expected credit loss allowance is based on ageing of the days the receivables are due.

46.03 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 and might encounter difficulty in raising finances to meet commitments associated
with financial instruments that are settled by delivering cash or another financial asset. The Company's objective is to, at all
times, maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company relies on short term
borrowings and operating cash flows to meet its fund needs as and when required.

The Company has been doing prompt servicing of debt dues as per the contract and during the current year it has made
Secured NCD Principal Cash Sweep (Excess Payment) amounting to H 32081.80 Lakhs. Coupled with the implementation of
the debt refinancing in the current year at significantly lower interest rates, strong operating cash flows, financial leverage
levels, liquidity position is at a fairly comfortable level. During the year, the Company has also availed Fund Based Working
Capital Facilities from a scheduled Bank which augmented the liquidity of the Company.

b) Financial Instruments and Cash Deposits:

The Company considers factors such as track record, size of the institution, market reputation and service standards
to select the banks with which its balances are maintained. The Credit risk from balances with bank and utilization
of surplus funds is managed by the Company's finance and treasury department. The Company does not maintain
significant cash in hand. Excess balance of cash other than those required for its day-to-day operations is deposited
into the bank.

For other financial instruments, the finance and treasury department assess and manages credit risk based on internal
assessment which is performed for each class of financial instrument with different characteristics.

46.04 Competition and Price Risk:

The Company faces competition from the local and foreign competitors. Nevertheless, it believes that it has competitive
advantage as it sells high quality value added customised Alloy Steel products. Further by continuously upgrading its expertise,
quality, range of products through constant Research & Development, it strictly adheres to the delivery schedules to meet the
Customers' needs. With regular Capital expenditure towards Modernisation, Cost saving, Quality improvement, Safety etc. and
successful completion of Blast furnace Category One Capital Repair & Upgradation and repairs of associated other plants in
the previous year, the company has achieved cost benefits and further augmented its competitive advantage.

NOTE : 47 CAPITAL RISK MANAGEMENT

For the purpose of the Company's capital management, capital includes issued capital, all other equity reserves, secured
and unsecured debt. The primary objective of the Company's capital management is to derisk the Company's business,
ensure its growth and maximise shareholders value. The Company manages its capital structure, makes adjustments in the
light of changes in economic environment and the requirements of the financial covenants.

The Company monitors its capital using Gearing ratio, which is Net debt divided by the Total Capital Employed (Equity plus
Net Debt). Net debt is non-current and current debts as reduced by cash and cash equivalents, fixed deposits and current
investments. Equity comprises all components including other comprehensive income.

The Company monitors its capital employed using Gearing ratio, which is Net debt divided by Total Capital Employed (Equity
plus Net Debt)

NOTE : 50 Relationship with Struck off Companies

Details of the transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the
Companies Act, 1956 are as follows:

51.01 Effective from 21^st November 2025, the Government of India has consolidated 29 existing labour legislations into a
united framework comprising four Labour Codes. On the basis of best available information, the Company had assessed
one-time incremental impact of H 1004.15 Lakhs and disclosed as exceptional items during the year. The Company continues
to monitor the finalisation of Central/State Government Rules and clarifications as gets available from the Government on
the other aspects of the Labour Code and would provide appropriate accounting effect on the basis of such developments
as needed.

NOTE:52

During the previous year, the Special Central Bureau of Investigation (CBI), Court, New Delhi in the matter related to M/s
Abhijeet Infrastructure Private Limited (AIPL), a non-group Company, convicted and sentenced AIPL and then Directors of
AIPL including Mr. Ramesh Jayaswal u/s Section 420, Section 120-B, Section 120-B read with Section 471 and 420 of IPC.
On an application made by Mr. Ramesh Jayaswal, the Honourable Court had suspended his sentence to enable him to file an
appeal in the Delhi High Court (DHC). Accordingly, he had filed an appeal in the DHC against the conviction and sentencing
orders. The DHC had admitted the appeal and directed continuation of suspension of the sentencing order.

The Company had also obtained legal opinion from an eminent Law Firm and Retired Supreme Court Judge, according
to which the above order will not have any effect on continuation of Mr. Ramesh Jayaswal as Managing Director of the
Company including his future re-appointments. The above is in compliance with the provisions of Section 167 and 196 of the
Companies Act, 2013.

NOTE : 53 Other Statutory Information

53.01 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

53.02 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 (whether recorded in writing or otherwise)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.

53.03 The Company has not received any fund from any person(s) or entity(s), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) 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.

53.04 The Company does not have any such transaction which is not recorded in the books of account surrendered or
disclosed as income during the year in the tax assessments under the Income-tax act, 1961.

53.05 No proceeding has been initiated or pending against the Company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

53.06 The Company is not declared wilful defaulter by any bank or financial institution or other lender.

53.07 There is no charge creation or satisfaction which is yet to be registered with the Registrar of Companies (ROC)
beyond the statutory period excepting twenty-two old charges totalling to H 15093.00 Lakhs (Previous Year - 15093.00
Lakhs) appearing on the website of the Ministry of Corporate Affairs due to certain factors beyond the control of the Company.

The principal reasons for non-satisfaction of the ROC Charge are as under: -

1) Lender no longer exists,

2) Lender merged with other lender, current lender is unable to track the transaction,

3) Documents are not traceable since being very old,

4) Legacy documents being in Physical form etc.

These old charges are for the period from 1976 to 2005 when the ROC records were not digitalised. Further, against them no
loan is presently outstanding in the Books of Account of the Company.

Specific brief description and reasons for delay in Satisfaction of the above mentioned twenty-two old Charges are
as under:-