Q) Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised 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. When the Company expects some or all of a provision to be
reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when
the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and 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 recognised as a finance cost.
Contingent Liability is disclosed after careful evaluation of facts, uncertainties and possibility of reimbursement, unless the
possibility of an outflow of resources embodying economic benefits is remote. Contingent liabilities are not recognised but
are disclosed in notes to the financial statements.
Contingent assets are not recognised in financial statements but are disclosed, since the former treatment may result in the
recognition of income that may never be realised. However, when the realisation of income is virtually certain, then the
related asset is not a contingent asset and its recognition is appropriate.
R) Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit for the period 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
expense associated with investing or financing cash flows. The cash flows from operating, investing and financing activities
of the Company are segregated.
S) Key sources of estimation uncertainty
In the course of applying the policies outlined in all notes under section 2 above, the Company is required to make
judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent
from other sources.
The estimates and associated assumptions are based on historical experience and other factors that are considered to be
relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an
on-going basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision
affects only that period, or in the period of the revision and future period, if the revision affects current and future period.
Key sources of estimation uncertainty
i) Useful lives of property, plant and equipment
Management reviews the useful lives of property, plant and equipment at least once a year. Such lives are dependent
upon an assessment of both the technical lives of the assets and also their likely economic lives based on various
internal and external factors including relative efficiency and operating costs. Accordingly, depreciable lives are
reviewed annually using the best information available to the Management.
ii) Impairment of investments in subsidiaries, Joint ventures and associates
Determining whether the investments in subsidiaries, joint ventures and associates are impaired requires an estimate
in the value in use of investments. In considering the value in use, the Directors have anticipated the future commodity
prices, capacity utilisation of plants, operating margins, mineable resources and availability of infrastructure of mines,
discount rates and other factors of the underlying businesses/operations of the investee companies
iii) Contingencies
In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company.
Potential liabilities that are possible but not probable of crystallising or are very difficult to quantify reliably are treated
as contingent liabilities. Such liabilities are disclosed in the notes but are not recognized.
Contingent assets are neither recognised nor disclosed in the financial statements unless when an inflow of economic
benefits is probable.
iv) Fair value measurements
When the fair values of financial assets or financial liabilities recorded or disclosed in the financial statements cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation techniques including
the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not
feasible, a degree of judgment is required in establishing fair values. Judgments include consideration of inputs such as
liquidity risk, credit risk and volatility.
v) Income Taxes
Significant judgements are involved in determining the provision for income taxes, including amount expected to be
paid /recovered for uncertain tax positions. In assessing the realizability of deferred tax assets arising from unused tax
credits, the management considers convincing evidence about availability of sufficient taxable income against which
such unused tax credits can be utilized. The amount of the deferred income tax assets considered realizable, however,
could change if estimates of future taxable income changes in the future.
T) Recent Pronouncements
Ministry of Corporate Affairs ("MCA") has notified amendments to the existing standards Ind AS 1 - Presentation of financial
statements relating to classification of liabilities as current or non-current subject to covenants, Ind AS 12 - Income Taxes
relating to international tax reforms - Pillar Two Model Rules, Ind AS 21 - the effects of changes in foreign exchange rates
and Ind AS 107 - Financial Instruments: Disclosures and Ind AS 7 - Statement of Cashflows relating to disclosure of supplier
financing arrangements, applicable from April 1, 2025. The Company has assessed that there is no significant impact on its
financial statements with respect to the amendments in Ind AS 1, Ind AS 21, Ind AS 12, Ind AS-7 and Ind AS-107.
U) Rounding off amounts:-
All amounts disclosed in the standalone financial statements and notes have been rounded off to the nearest crores as per
the requirement of Schedule III, unless otherwise stated.
Terms / Rights attached to Equity Share
The Company has only one class of Equity Shares having a par value of ' 5/-. Each holder of Equity Shares is entitled to one
vote per share.
The Company in its Board Meeting held on 22nd May 2026 proposed a dividend of ' 10/- per equity share be paid to shareholders
for financial year 2025-26, which is subject to approval by the shareholders at the Annual General Meeting. If approved, the
dividend would result in a cash outflow of ' 134 Crore.
In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive any of the remaining assets
of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity
Shares held by the shareholders.
2.37 Segment Information
The Group's operating segments are established on the basis of those components of the group that are evaluated
regularly by the Executive Committee (the 'Chief Operating Decision Maker' as defined in Ind AS 108 - 'Operating
Segments'), in deciding how to allocate resources and in assessing performance. These have been identified taking into
account nature of products and services, the differing risks and returns and the internal business reporting systems.
The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with
following additional policies for segment reporting.
Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the
segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable
basis have been disclosed as "Others".
Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Investments, tax related
assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as
"Others"
Identification of Segments
Business segment: The Company's operating businesses are organised and managed separately according to the nature
of products, with each segment representing a strategic business unit that offers different products. The three identified
segments are Steel Pipes & Tubes , Power - Electricity and RIG.
Inter Division transfers of goods, as marketable products produced by separate divisions of the company for captive
consumption are made as if sales were to third parties at current market prices and are included in turnover.
Note : 2.44
Capital Management
The primary objective of the Company's capital management is to ensure availability of funds at competitive cost for its
operational and development needs and maintain a strong credit rating and healthy capital ratios in order to support its
business and maximize shareholder value.
The Company manages its capital structure and makes changes in view of changing economic conditions. No changes were
made in the objectives, policies or processes during the year ended 31.03.2026 and 31.03.2025. There have been no breaches
of the financial covenants of any interest bearing loans and borrowings for the reported period.
The Company monitors capital structure on the basis of debt to equity ratio. For the purpose of Company's capital management,
equity includes paid up equity share capital and reserves and surplus and effective portion of cash flow hedge and debt
comprises of long term borrowings including current maturities of these borrowings.
The fair value 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:
a) Fair value of cash and short term deposits, trade receivables, trade payables, current loans, other current financial
assets, short term borrowings and other current financial liabilities approximate to their carrying amount largely due
to the short term maturities of these instruments.
b) The fair value of investment in quoted Equity Shares and Mutual Funds is measured at quoted price or NAV.
c) All foreign currency loans and liabilities are translated using exchange rate at reporting date
d) Interest free loan given / deferred sales tax is discounted at 9.00% p.a. to arrive at fair value.
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:
Quoted prices / published Net Asset Value (NAV) in active markets (Level 1): This level of hierarchy includes financial assets
that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities and financial
instruments like mutual funds for which NAV is published by mutual funds. This category consists of mutual fund investments
and equity share instruments of other companies.
Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities, measured
using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(i.e., as prices) or indirectly (i.e., derived from prices).
Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and
liabilities measured using inputs that are not based on observable market data (that is, unobservable inputs). Fair values
are determined in whole or in part, using a valuation model based on assumption that are neither supported by prices
from observable current market transactions in the same instrument nor are they based on available market data.
The fair value of the financial assets and financial liabilities included in the level 2 categories above have been determined
in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant
inputs being the discount rate that reflects the credit risk of counterparties. Following table describes the valuation
techniques used and key inputs to valuation for level 2 of the fair value hierarchy as at 31.03.2026 and 31.03.2025.
2.47 Financial Risk Management Objectives and Policies
The Company's financial risk management is an integral part of how to plan and execute its business strategies. The
Company's activities exposed to various risks such as market risk, credit risk and liquidity risk.
The sensitivity analysis excludes the impact of movement in market variables on the carrying value of post-employment
benefit obligations, provisions and on non-financial assets and liabilities. The sensitivity of the relevant statement of profit
and loss item is the effect of the assumed changes in respective market rates. The company's activities are exposed to
varieties of financial risk including the effect of changes in foreign currency exchange rates and interest rates. The company
uses derivatives financial instruments such as foreign exchange forward contracts of varying maturity depending upon
the underlying contract and risk management strategy to manage its exposures to foreign exchange fluctuation and interest
rates.
The Board of Directors reviews and agrees policies for managing each of these risks which are summarised below.
Market risk and sensitivity
1. Foreign Currency Risk and Sensitivity
Foreign Currency Risk is the risk that the present exposure or Future Cash Flows will fluctuate because of changes in
foreign currency rates. The company follows natural hedging to the extend of inward and outward of forex exposure and
takes forward contracts to minimise the risk of fluctuation in foreign exchange rates for remaining amount. Exposures can
arise on account of the various assets and liabilities which are denominated in currencies other than Indian Rupee.
3. Credit Risk
Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due
causing financial loss to the Company. Credit risk arises from Company's activities in investments, dealing in derivatives and
receivables from customers.
The Company has a prudent and conservative process for managing its credit risk arising in the course of its business activities.
Credit risk across the Company, is actively managed through Letters of Credit, Bank Guarantees, advance payments and
security deposits .
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 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 operate in largely
independent markets.
4. 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 monitors its risk to a shortage of funds using a recurring liquidity planning tool. This tool considers the
maturity of both its financial investments and financial assets (i.e. trade receivables, other financial assets) and projected
cash flows from operations. The Company's objective is to maintain a balance between continuity of funding and flexibility
through the use of working capital loans, letter of credit facility, bank loans and credit purchases.
The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date
based on contractual undiscounted payments.
F. Other Statutory information
i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property
ii) The Company has not advanced or loaned or invested funds to 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
persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (b)
provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
The Company has not received any fund from any person(s) or entity(is), 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."
iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
v) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or
survey or any other relevant provisions of the Income Tax Act, 1961).
vi) The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies
Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the
Reserve Bank of India.
vii) The Company has complied with the number of layers for its holding in downstream companies prescribed under
clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules,
2017.
viii) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year.
Xii) On November 21, 2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the
Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working
Conditions Code, 2020 - consolidating 29 existing labour laws. The Ministry of Labour & Employment published draft
Central Rules and FAQs to enable assessment of the financial impact due to changes in regulations. The Company has
assessed and disclosed the incremental impact of these changes, consistent with the guidance provided by the Institute
of Chartered Accountants of India. The Company continues to monitor the finalisation of Central/State Rules and
clarifications from the Government on other aspects of the Labour Code and would provide appropriate accounting
effect on the basis of such developments as and when needed.
xiii) Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in
agreement with the books of accounts.
2.49 The company has been maintaining its books of accounts in the ERP which has feature of recording audit trail of each and
every transaction made in the account along with the date when such changes were made and ensuring that the audit
trail cannot be disabled throughout the year as required by proviso to sub rule (1) of rule 3 of The Companies (Accounts)
Rules, 2014 known as the Companies (Accounts) Amendment Rules, 2021. On certain tables for specific access, audit trail
feature has not been enabled as it would result into considerable degradation of performance.
2.50 Events occuring after balance sheet:
On 22 May 2026, the board of directors recommended a dividend of f 10 per equity share of f 5 each to be paid to the
shareholder for the financial year 2025-26, which is subject to approval by the shareholders at the Annual General Meeting.
If approved, the dividend would result in cash outflow of f 134 crores.
2.51 Maharashtra Seamless Limited (Company) has incorporated two Wholly Owned Subsidiary Companies namely "MSL
Seamless Tubes Limited" & "United Seamless Limited "on 15th May, 2026 and 16th May, 2026 respectively. The Authorised
Share Capital of both the companies is f Five lacs (100,000 Equity Shares of f 5/- each).
The Board of Directors of the Company, at its meeting held on 22nd May 2026 had approved the Scheme of Arrangement
for demerger of its two business undertakings into the said two subsidiary companies. The said scheme shall be filed with
stock exchanges in due course.
2.52 Previous year figures have been regrouped / recast, where necessary, to conform to the current year classification.
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