p Provisions and contingencies
A provision is recognised when the Company has a present obligation as a result of past events and it is
probable that an outflow of resources will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their
present value and are determined based on the best estimate required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current
best estimates. Contingent liabilities are disclosed in the Notes.
q Measurement Of Profit Before Depreciation/Amortization, Interest And Tax (PBDIT)
As per Ind AS 1 "Presentation of financial statements", the Company has elected to present PBDIT as a
separate line item on the face of the statement of profit and loss. The Company measures PBDIT on the
basis of profit/loss from continuing operations. In its measurement, the Company does not include
depreciation and amortisation expenses, finance costs and tax expenses.
r Fair Value measurement of financial instruments
The financial assets and liabilities are valued at fair values based on Ind AS 39, 109 and 113.
Note 29 In pursuance to the Judgement dated 2nd August, 2017 of Honorable Supreme Court of India, in the matter of Writ Petition (Civil)
No. 114 of 2014 (Common Cause v/s Union of India & Others), an amount of ^ 924.75 crores has been imposed on the Company
towards 'Compensation' as determined in the said Judgement which was to be paid by 31st December 2017, eventhough the
Government Taxes and Royalty was paid on the ores extracted. Since the amount was not paid by the stipulated date, the
Honorable Supreme Court ordered to stop mining operations with effect from 1st January 2018.
The industry at large has filed application before the Honorable Supreme Court of India challenging the Judgement and which is still
pending. Hence provision has not been made for the same in the books of accounts. Further in the said case Company managed to
get an Order dated 15th January, 2020 from Hon'ble Supreme Court, according to which Company get permission to sell
23,51,027.83 T of iron ore of different grade and sizes and which has been extracted. Further the realization amount from said sale
should be deposited with the State of Odisha towards partial satisfaction of the Compensation demand raised by Demand Notice
dated 02.09.2017. The Company is in process to sell the iron ore and to comply with the norms, it is further to be noted that
Company managed to get an extension of further three months till May, 2023. The Company has deposited with the Government
Rs.362.49 crores including GST till March 2023 and Rs. 415.79 cores including GST till July 2023 under protest towards
Compensation amount.
Note 30 There was arbitration award received in June 2019 for 718 crores. The Company has already appealed to this Award. The appeal has
been admitted in Mumbai High Court. The Company is confident to win the award and hence not making any provision in the books.
Note 31 The company has taken External Commercial Borrowing (ECB) from Banyantree Bank Ltd, Mauritius which became bad due to
default in the repayment of loan and interest thereof. The Silver bank (formerly Banyan Tree Bank ) has filed case before the NCLT
against the MISL. As per the NCLT order dated 31.05.2023, the MISL has agreed to pay the entire claimed amount of Rs. 12.97
crores plus interest and penalty therein.
We have already deposited Rs. 13.61 crores amount in our authorized bank BOI, Mumbai. We have referred the said matter to RBI
regarding the approval for remittance of ECB repayment along with interest and penalty.
As the matter is with RBI we cannot predict the timeline, once we get the approval from the RBI
we will process the repayment. After that total amount payable will crystalised.
Note 32 The company intends to convert unsecured loans received from Promoters into Equity in compliance with the provisions of
Companies Act 2013 and SEBI (ICDR) Regulations 2009 subject to approval of requisite authority.
Note 33 The balances of Debtors, creditors, loans & advances received & given and deposits received & given are subject to confirmations
and reconciliations.
Note 34 The Management has reviewed all the assets and liabilities of the Company. The assets and liabilities of the Company has been
valued at receivable and payable value respectively.
Note 35 The Company had taken External Commercial Borrowing (ECB) from BanyanTree Bank Ltd., Mauritius, and there were disputes
regarding the repayment of the balance amount of the ECB loans to BanyanTree Bank Ltd. BanyanTree Bank Ltd., was acquired /
taken over by the Silver Bank. Silver Bank (formerly known as BanyanTree Bank Ltd.) filed a case before the NCLT against Company
for the repayment of the balance amount of ECB loan along with applicable interest. As per the NCLT order dated 31.05.2023, the
Company has agreed to pay the adjudicated amount of Rs.12,97,00,000/- (Rupees Twelve Crores and Ninety Seven Lakhs only) plus
interest and penalty, if any.
The Company have already deposited with the Authorised Dealer, Bank of India, Santa Cruz West branch, Mumbai, an amount of
Rs.13,61,00,000/- (Rupees Thirteen Crores and Sixty One Lakhs only) for providing for the payment of this liability, if any eventually.
We have already referred / written to RBI relating to the said matter for granting approval for the foreign remittance relating to the
repayment of the ECB loan amount along with interest and penalty, if any.
As the matter is pending with RBI we are unable to predict the timeline for this repayment, if any. Once we get the necessary
approval from the RBI, we will process the repayment of the ECB loan amount along with interest and penalty, if any.
We will provide for the necessary liability / expenses, if any, which maybe over and above the existing liability as reflecting as on
31st March 2023. Since, the Company has made the necessary arrangements / created assets to pay for this liability, if any, it is
mentioned herein as a contingent liability as on 31st March 2023 while the asset for meeting this liability has been created after
Note 36 Other Disclosure Requirement in Schedule III
a) The company does not have any transaction with the companies struck off under SEC 248 of the Companies Act 2013 or section
560 of the Companies Act 1956 during the year ended March 31st 2023 and March 31st 2022.
b) There are no changes regarding charges which have been registered with the Registrar of Companies during the year ended
March 31st 2023.
c) The Company has not invested or traded in cryptocurrency or virtual currency during the year ended March 31, 2023 and March
31, 2022.
c) No proceedings have been initiated on or are pending against the company for holding Benami property under the Prohibition of
Benami Property Transaction Act 1988 (as amended in 2016) (formally the Benami Transactions (Prohibition) Act 1988 (45 of 1988)
and Rules made thereunder during the year ended March 31, 2023, and March 31, 2022.
d) The Company has not been declared a wilful defaulter by any bank or financial institution or government or any government
authorities during the year ended March 31, 2023 and March 31, 2022.
e) The Company has not entered into any scheme of arrangement approved by the competent authority in terms of sections 232 to
237 of the Companies Act 2013 during the year ended March 31, 2023 and March 31, 2022.
f) During the year ended March 31, 2023 and March 31, 2022, the Company has not surrendered or disclosed as income any
transactions not recorded in the books of accounts in the course of tax assessments under the Income Tax Act, 1961 (such as search
or survey or any other relevant provisions of the Income Tax Act 1961).
g) During the year ended March 31, 2023 and March 31, 2022, the Company has not advanced or loaned or invested funds (either
borrowed funds or the share premium or kind of funds) to any other person or entities, including foreign entities (Intermediaries)
with the understanding (whether recorded in writing or otherwise) that the intermediary shall:
-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
-Provide any guarantee, security or the like To or on behalf of the ultimate beneficiaries.
h) During the year ended March 31, 2024 and March 31, 2023 the company has not received any funds from any persons or entities
including foreign entities (Funding party) with the understanding (whether recorded in writing or otherwise) that the company shall
-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
-Provide any guarantee, security or the like To or on behalf of the ultimate beneficiaries.
i) The tiltle deeds in respect to immovable properties are in the name of the company.
Note 38 Previous year figures have been regrouped/recast wherever considered necessary to make them comparable with those for the
current year and such figure are reflected in INR million, unless otherwise stated.
For Ashok Shyam & Associates For and on behalf of the Board of Directors
Chartered Accountants
ICAI Reg No. 011223N
Ashok Gupta Shipra Singh Rana Dushyant Kumar Singh
Partner Director Director
M. No. 089858 DIN 00137209 DIN 00091193
UDIN: 24089858BKBIXF3863
Place : New Delhi Priyanka Chugh
Date : 30/07/2024_Company Secretary_
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