Latin Manharlal Chat
BSE Prices delayed by 5 minutes...
     Prices as on Oct 22, 2021 - 4:00PM     
  ABB India 1911.3 [ 2.07% ]
  ACC 2213.45 [ -0.99% ]
  Axis Bank Ltd. 816.9 [ 0.98% ]
  Bank of Baroda 94.6 [ -0.89% ]
  Bharti Airtel 694.45 [ -0.28% ]
  Bharat Heavy Ele 69.25 [ -3.21% ]
  Bharat Petroleum 447.2 [ -0.80% ]
  Britannia Ind. 3686.15 [ -0.85% ]
  Cipla 896 [ -1.69% ]
  Coal India 176.75 [ -3.07% ]
  Colgate Palm. 1564.55 [ -1.86% ]
  Dabur India 590.9 [ 0.58% ]
  DLF Ltd. 414 [ 1.72% ]
  Dr. Reddy's Labs 4632.5 [ -0.35% ]
  Grasim Inds. 1714.4 [ -1.82% ]
  HDFC 2902.75 [ 2.11% ]
  HDFC Bank 1681.95 [ 0.37% ]
  Hero MotoCorp 2744.95 [ -0.54% ]
  Hindalco Indus. 470.6 [ -4.74% ]
  ICICI Bank 759.1 [ 0.30% ]
  IDFC L 54.2 [ 3.34% ]
  Indian Hotels Co 204.9 [ -4.21% ]
  IndusInd Bank 1198.7 [ 1.21% ]
  Infosys 1719.55 [ -1.96% ]
  ITC Ltd. 236.6 [ -3.39% ]
  Jindal St & Pwr 424.75 [ -1.92% ]
  L&T 1791.25 [ -0.79% ]
  Lupin Ltd. 918.85 [ -0.58% ]
  Mahi. & Mahi 885.75 [ -1.25% ]
  MTNL 18.15 [ -0.55% ]
  Nestle India 19009.95 [ -1.23% ]
  NIIT Ltd. 312.25 [ -3.94% ]
  NMDC Ltd. 142.5 [ -2.43% ]
  NTPC 144.9 [ -1.93% ]
  ONGC 156.95 [ 1.13% ]
  Punj. NationlBak 43.95 [ -1.57% ]
  SBI 502.95 [ -0.02% ]
  Vedanta 324 [ -7.51% ]
  Shipping Corpn. 131.75 [ -0.42% ]
  Sun Pharma. 814.25 [ -0.43% ]
  Tata Chemicals 987.6 [ -1.63% ]
  Tata Motors Ltd. 490.9 [ -3.37% ]
  Tata Steel 1295.7 [ -1.43% ]
  Tata Power Co. 222.15 [ -1.73% ]
  Tech Mahindra 1518 [ -0.41% ]
  United Spirits 834.75 [ -0.20% ]
  Wipro 682.25 [ -1.93% ]

Company Information

Home » Market » Company Information

Indian Metals & Ferro Alloys Ltd.

Oct 22, 04:00
777.00 -12.15 ( -1.54 %)
 
VOLUME : 3087
Prev. Close 789.15
Open Price 786.00
TODAY'S LOW / HIGH
750.00
 
 
 
798.00
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 0.00 (0)
52 WK LOW / HIGH
226.05
 
 
 
997.00
Oct 21
788.65 +24.10 (+ 3.15 %)
 
VOLUME : 20120
Prev. Close 764.55
Open Price 761.00
TODAY'S LOW / HIGH
761.00
 
 
 
801.00
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 0.00 (0)
52 WK LOW / HIGH
225.00
 
 
 
997.00
Company Information Menu

Search Company

Market Cap. ( ₹ ) 2096.12 Cr. P/BV 1.69 Book Value ( ₹ ) 460.33
52 Week High/Low ( ₹ ) 997/226 FV/ML 10/1 P/E(X) 12.59
Bookclosure 24/07/2021 TTM EPS ( ₹ ) 88.88 Div Yield (%) 1.29
NOTES TO ACCOUNTS
You can view the entire text of Notes to accounts of the company for the latest year
Year End :2019-03 

1. Financial risk management

40.1 Financial risk factors

The Company’s principal financial liabilities comprise of borrowings, 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 loans and advances, investment in equity instruments and mutual funds, trade receivables and cash and bank balances that arise directly from its operations. The Company also enters into derivative transactions to hedge foreign currency and interest rate risks and not for speculative purposes. The Company is exposed to market risk, credit risk and liquidity risk and the Company’s senior management oversees the management of these risks.

i) Market risk

Market risk is the risk that the fair value of future cash flows of a financial asset will fluctuate because of changes in market prices. The Company’s activities expose it to a variety of financial risks, including the effects of changes in foreign currency exchange rates and interest rates.

(a) Currency risk

Foreign currency risk is the risk that fair value of future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities. The Company has obtained foreign currency loans and has foreign currency trade payables and receivables and is therefore, exposed to a foreign exchange risk. For mitigating exposure to foreign exchange risk, the Company adopts a policy of selective hedging based on the risk perception of the management. The Company has entered into foreign currency forward contracts and cross currency swap contracts.

The following table demonstrates the sensitivity in the USD to the Indian Rupee and the resulting impact on the Company’s Profit before tax, due to changes in the fair value of monetary assets and liabilities :

(b) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates. Any changes in the interest rates environment may impact future cost of borrowings. To manage this, the Company has entered into interest rate swap contracts, in which it agrees to exchange, at specific intervals, the difference between fixed and variable interest amounts calculated by reference to an agreed upon principal amount.

The following table demonstrates the fixed and floating rate borrowings of the Company:

ii) 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.

(a) Trade receivables

The Company extends credit to customers in the normal course of business. Outstanding customer receivables are regularly monitored. The Company has also taken advances and security deposits from its customers, which mitigate the credit risk to an extent. An impairment analysis is performed at each reporting date on an individual basis for major customers.

(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 for investments and banks with which balances and deposits are maintained. Generally, the balances are maintained with the banks with which the Company has also availed borrowings. 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, letter of credit and working capital limits. The Company ensures it has sufficient cash to meet operational needs while maintaining sufficient margin on its undrawn borrowing facilities at all times.

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

Subject to the continuance of satisfactory credit ratings, the bank facilities may be drawn upon at any time. Average maturity of undrawn facilities of term loans expiring beyond one year is Nil (As at 31st March, 2018: 4.25 years).

40.2 Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital, equity share suspense, 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.

2. Fair value of Financial Assets and Liabilities

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

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 maximize 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.

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

During the year ended 31st March, 2019 and 31st March, 2018, 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. There is no transaction / balance under Level 3.

Following table describes the valuation techniques used and key inputs to valuation for level 2 of the fair value hierarchy, as at 31st March, 2019 and 31st March, 2018 :

(b) Defined Benefit Plan:

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. 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 years of service.

The Employees Gratuity Fund Scheme, which is a defined benefit plan, is managed by a trust maintained with Life Insurance Corporation of India (LIC). The Employees Leave Encashment Scheme, which Is a defined benefit plan Is unfunded.

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

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

Note : In the absence of detailed information regarding plan assets which is funded with Life Insurance Corporation of India, 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.

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 above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (projected unit credit method) has been applied as when calculating the defined benefit obligation recognized within the Balance Sheet. The methods and type of assumptions used in preparing the sensitivity analysis did not change compared to prior year.

Presentation in the Statement of Profit and Loss, Other Comprehensive Income and Balance Sheet

Gratuity and leave encashment benefits are in the nature of defined benefit plans and re-measurement gains/(losses) on defined benefit plans are shown under OCI as ‘Items that will not be reclassified to profit or loss’, including the income tax effect on the same.

Expense for service cost, net interest on net defined benefit liability/(asset) is recognized in the Statement of Profit and Loss.

I nd AS 19 does not require segregation of net defined liability/(asset) into current and non-current, however net defined liability/(asset) is bifurcated into current and non-current portions in the balance sheet, as per Ind AS 1 on “Presentation of Financial Statements”.

(a) Names of Related Parties :

(i) Subsidiaries Country of Origin

1 Utkal Power Ltd. India

2 Utkal Coal Ltd. India

3 IMFA Alloys Finlease Ltd. India

4 Utkal Green Energy Ltd. India

5 Indmet Mining Pte Ltd. Singapore

6 PT. Sumber Rahayu Indah [Subsidiary of Indmet Mining Pte. Ltd] Indonesia

(ii) Associate Country of Origin Ferro Chrome Producers Association (registered under Section 8 of the Act) India

(iii) Key Management Personnel (KMP)

Name Designation

1 Major Rabinarayan Misra (Retd) (w.e.f 3rd January, 2019) Chairman - Independent Non-Executive Director

2 Mr. Baijayant Panda Vice Chairman - Non-Independent Executive Director

3 Mr. Subhrakant Panda Managing Director - Non-Independent Executive ________________________________________________Director_

4 Mr. Jayant Kumar Misra Director (Corporate) & COO - Non-Independent ________________________________________________Executive Director_

5 Mr. Chitta Ranjan Ray Whole-time Director - Non-Independent Executive ________________________________________________Director_

6 Mr. D Bandyopadyay (upto 25th July, 2018) Independent Non-Executive Director

7 Mr. Nalini Ranjan Mohanty Independent Non-Executive Director

8 Mr. Sudhir Prakash Mathur Independent Non-Executive Director

9 General Shankar Roychoudhury (Retd.) Independent Non-Executive Director

10 Mr. Santosh Nautiyal (upto 30th November, 2018) Independent Non-Executive Director

11 Mr. Bijoy Kumar Das Independent Non-Executive Director

12 Mrs. Paramita Mahapatra Non-Independent Non-Executive Director

13 Mr. Stefan Georg Amrein Non-Independent Non-Executive Director

14 Mr. Prem Khandelwal CFO & Company Secretary

(iv) Close family members of KMP

1 Late Dr. Bansidhar Panda - Upto 21st May, 2018 - Father of Mr. Baijayant

________Pond^_ondMI.-Sub^lLokont_Pond^_____________________

2 Mrs. Jagi Mangat Panda - Wife of Mr. Baijayant Panda.

3 Mrs. Shaifalika Panda - Wife of Mr. Subhrakant Panda.

4 Mrs. Nivedita Ganapathi - Daughter of Late Dr. Bansidhar Panda and sister of

________MJLBoijoyanl_Ponda_ondMLSubhrako^LPondo.._____________

5 Mr. Rajen Mahapatra - Husband of Mrs. Paramita Mahapatra

(v) Other entities with whom transactions have taken place during the year ____1 UMSL Ltd.____________________

2 Esquire Realtors Pvt. Ltd.

3 Kishangarh Environmental Development Action Pvt. Ltd.

4 Ortel Communications Ltd.

5 Odisha Television Ltd

6.Entities controlled or jointly controlled or under

7 Ruta Trust significant influence of KMP and / or close

8. nsidharJ&IlaPondoF0Ufamily members of KMP

9 Utkal Charitable Trust

10 Indian Metals Public Charitable Trust

11 Raila Enterprises Pvt. Ltd.

12 Orissa Coal and Services Pvt. Ltd.

13 Barabati Realtors Pvt. Ltd.

1. Investment in 1,00,00,000 Non-Convertible Redeemable Cumulative Preference Shares of Rs, 10/- each fully paid up amounting to Rs, 10 crore (Previous Year: Nil) in Ortel Communications Ltd.

2. Dividend received from IMFA Alloys Finlease Ltd. Rs, 1.09 crore (Previous Year : Rs, 1.38 crore).

3. Sale of Goods to Bansidhar & Ila Panda Foundation Rs, 0.22 crore (Previous Year : Rs, 0.05 crore).

4. Services Received includes services from UMSL Ltd. Rs, 85.21 crore (Previous Year : Rs, 114.08 crore).

5. Services Rendered includes services to UMSL Ltd. Rs, 0.15 crore (Previous Year : Rs, 0.15 crore).

6. Remuneration (including commission) includes amount paid to Late Dr. Banshidhar Panda Nil (Previous Year: Rs, 1.75 crore) Mr. Baijyant Panda Rs, 2.01 crore (Previous Year : Rs, 6.05 crore), Mr. Subhrakant Panda Rs, 2.38 crore (Previous Year : Rs, 6.34 crore), Mr. Jayant Kumar Misra Rs, 1.17 crore (Previous Year : Rs, 1.17 crore), Mr. Chitta Ranjan Ray Rs, 0.70 crore (Previous Year : Rs, 0.72 crore) and Mr. Prem Khandelwal Rs, 0.84 crore (Previous Year : Rs, 0.83 crore), Major Rabinarayan Misra Rs, 0.04 crore (Previous Year: Rs, 0.14 crore), Mr. D Bandyopadhyay Rs, 0.04 crore (Previous Year : Rs, 0.14 crore, Mr. Nalini Ranjan Mohanty Rs, 0.04 crore (Previous Year : Rs, 0.14 crore), Mr. Sudhir Prakash Mathur Rs, 0.04 crore (Previous Year : Rs, 0.13 crore), General Shankar Roychoudhury Rs, 0.03 crore (Previous Year: Rs, 0.13 crore), Mr. Santosh Nautiyal Rs, 0.03 crore (Previous Year: Rs, 0.13 crore) and Mr. Bijoy Kumar Das Rs, 0.03 crore (Previous Year: Rs, 0.13 crore).

7. Donations includes amount given to Bansidhar & Ila Panda Foundation of Rs, 3.49 crore (Previous Year : Nil) and Indian Metals and Public Charitable Trust Rs, 0.35 crore (Previous Year : Nil).

8. Corporate Social Responsibility Expenses include amount given to Bansidhar & Ila Panda Foundation of Rs, 3.81 crore (Previous Year : 2.76 crore) and Indian Metals Public Charitable Trust Nil (Previous Year : Rs, 0.35 crore).

9. Lease rentals paid to IMFA Alloys Finlease Limited Rs, 4.29 crore (Previous Year : Rs, 4.19 crore).

10. Loan given to Utkal Coal Limited Rs, 0.35 crore (Previous Year : Rs, 0.49 crore).

11. Loan repayment received includes amount from Utkal Coal Limited Rs, 0.03 crore (Previous Year : Rs, 0.15 crore) and Utkal Power Limited Nil (Previous Year: Rs, 0.97 crore).

12. Guarantee provided to Bank for loan availed by Bansidhar & Ila Panda Foundation Rs, 10.73 crore (Previous Year: Rs, 4.21 crore).

The amounts disclose in the table are the amounts recognized as an expense during the reporting period.

e) The remuneration paid by the Company to its directors during the year is in accordance with the provisions of Section 197 of the Act,. Further, the remuneration paid by the Company to it directors during the year is in excess of the limits laid down under sub-section 1 of Section 197 of the Act by Rs, 1.25 crore, for which requisite approval in accordance with the said Section read with Schedule V to the Act has been obtained by the Company.

3. The Hon’ble Supreme Court of India vide judgment dated 25th August, 2014 read with its order dated 24th September, 2014 cancelled the allocation of coal blocks to various companies, including the ‘Utkal C’ coal block held by Utkal Coal Ltd. (‘UCL’), an SPV in which the Company holds 79.2% equity. Subsequently, on 21st October, 2014, The Coal Mines (Special Provisions) Ordinance, 2014 was promulgated to facilitate, inter alia, auction of coal blocks and compensation to a prior allottee of a coal block. To give continuity to the provisions of the said Ordinance and save the actions taken thereunder, on 26th December, 2014, The Coal Mines (Special Provisions) Second Ordinance, 2014 was promulgated, which was deemed to have come into force on 21st October, 2014 and the earlier Ordinance stood repealed. Subsequently, the Coal Mines (Special Provisions) Act, 2015 was enacted on 30th March, 2015 which was deemed to have come into force on 21st October, 2014, repealing the second Ordinance. Further, the Ministry of Coal issued orders dated 18th December, 2014 and 6th January, 2015 to initiate the auction process and change the end use of ‘Utkal C’ from captive use (non-regulated sector) to independent power producer (regulated sector). Aggrieved by the above actions of the government, on 13th February, 2015 UCL filed a Writ Petition before the Hon’ble High Court of Delhi challenging, inter alia, the said orders. The judgment in respect of this Writ Petition was delivered on 5th October, 2016 not granting any relief to UCL which, aggrieved, filed a Special Leave Petition on (‘SLP’) 11th January, 2017 before the Hon’ble Supreme Court challenging the above order dated 5th October, 2016. During the year ended 31st March, 2019, the SLP was withdrawn by UCL after the Central Government issued orders for the auction process of Utkal ‘C’ block along with five other blocks to be allotted to Government Companies.

UCL had also filed a separate Writ Petition before the Hon’ble High Court of Delhi on 23rd February, 2015 challenging the basis of valuation of compensation and the restrictive interpretation of ‘Mine Infrastructure’. The judgment was delivered on 9th March, 2017 considering leasehold land [under Coal Bearing Areas (Acquisition and Development) Act, 1957] to be under Mines Infrastructure and not under Freehold Land category for the purpose of compensation. Aggrieved, UCL filed a SLP on 15th May, 2017, before the Hon’ble Supreme Court challenging the aforesaid order. During the year ended 31st March, 2019, the SLP was withdrawan by UCL.

Ministry of Coal vide its letter to UCL dated 2nd April, 2019 to UCL had again sought for the details of investments in UCL’s coal block for valuation of compensation. Hence, UCL is hopeful of an amicable resolution of the said compensation matter with Government of India, pending which, no accounting adjustments have been made by UCL in it’s books of account and no provision is deemed necessary against the Company’s net exposure in UCL as at 31st March, 2019 amounting to Rs, 111.42 crore invested as equity and Rs, 263.48 crore given as unsecured loan.

4. In view of the circumstances detailed above in Note No.46 and considering the probability of economic benefit associated with transaction flowing to the Company, with effect from 1st October, 2014 the Company postponed recognition of income from interest on unsecured loan given to UCL. Due to this, profit before tax for the year ended 31st March, 2019 is lower by Rs, 35.43 crore (Previous Year : Rs, 40.72 crore). The interest income would be considered as revenue of the period in which it is properly recognized.

5. Disputes between the Company and Grid Corporation of Orissa Ltd. (“GRIDCO”) relating to methodology for billing of power, wheeling of power, back-up power drawn during period of grid disturbance etc. were settled in favour of the Company vide a unanimous award of an Arbitral Tribunal dated 23rd March, 2008, by virtue of which GRIDCO was directed to pay Rs, 57.07 lakh along with interest and Rs, 30 lakh towards costs. Subsequently, GRIDCO filed a petition before the District Judge, Bhubaneswar objecting the award and obtained an interim stay on the operation of the said award. The Company filed it’s objection thereto on 19th February, 2009 and the Court of the District Judge, Bhubaneswar pronounced judgment dated 8th January, 2018 in favour of the Company dismissing the petition filed by GRIDCO. Subsequently, GRIDCO filed an appeal before Hon’ble High Court of Odisha challenging the award, which is pending.

6. In the arbitration proceedings relating to a party’s conversion contract, an interim award was passed on 9th January, 2003 upholding issues in the Company’s favour, without quantification of the amount payable to the Company towards it’s various claims of losses/damages, which is to be determined by the appointment of a Chartered Accountant or other expert. The Party filed a petition before the Hon’ble High Court at Calcutta on 4th February, 2004 praying to set aside the interim award and the Company filed its objection thereto. The matter is pending before the Hon’ble High Court at Calcutta.

7. Pursuant to the order of Hon’ble Orissa High Court dated 21st April, 2005, the Company was paying electricity duty at 6 paise per unit to the Govt. of Orissa and keeping the differential duty of 14 paise per unit in a separate ‘no lien account’ till final disposal of it’s writ petition. The Hon’ble Orissa High Court disposed the said writ petition vide judgment dated 6th May, 2010 by directing the Company to deposit the differential amount of duty lying in no lien account with the State Exchequer. The Company preferred an appeal before the Hon’ble Supreme Court of India against the judgment of Orissa High Court. The Hon’ble Supreme Court vide its order dated 7th February, 2011 directed the company to continue the payment in the same manner but to deposit the differential amount of 14 paise per unit in an Escrow account instead of ‘no lien account’ till final disposal of the appeal. Accordingly, the Company paid the balance

14 paise per unit in an escrow account (non-interest bearing current account) with State Bank of India from January, 2011. Subsequently, based on a direction received on 9th January, 2015 from Govt. of Odisha, the Company kept the Escrow amount in an interest bearing fixed deposit linked to escrow current account with effect from 21st March, 2015.

On the principles of prudence, the Company fully provided for Electricity Duty @ 20 paise per unit in it’s books of account, on accrual basis till September, 2015. Subsequent to the Department of Energy, Govt. of Odisha’s Notification No. 8309 dated 1st October 2015, wherein the amended rate of Electricity Duty for a Captive Power Generator was specified at par with that of a Licensee, the Company is paying the applicable duty @ 30 paise per unit to the Govt. of Odisha with effect from October, 2015. Further, Department of Energy, Govt of Odisha vide notification No. 3442 dated 12th May, 2017 has enhanced the rate of Electricity Duty from 30 paise to 55 paise per unit for a Captive Power Generator and the Company continues to pay the enhanced duty.

8. 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 & Amalgamation and 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 16th March, 2011 and registered with the Registrar of Companies (ROC), Orissa on 1st 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 19th July, 2011, directed the Company, inter-alia, to restore the aforesaid shares to the Trust and allot it to 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 said 3,49,466 shares.

The Hon’ble Supreme Court, vide order dated 25th October, 2018 referred the parties to mediation by Justice A.P Shah, a retired Justice of the Hon’ble Delhi High Court, to have a detailed look into the matter and submit a report to the Hon’ble Supreme Court. Subsequently, Justice A.P Shah filed his report dated 1st April, 2019 before the Hon’ble Supreme Court, along with the settlement agreement dated 30th March, 2019 signed by the parties pursuant to which the Company made a payment of ' 0.55 crore towards settlement of the said matter(included under ‘Other Expenses’). Final order from the Hon’ble Supreme Court is awaited.

9. As per Ind AS 108 on “Operating Segments”, segment information has been provided under the Notes to Consolidated Financial Statements, as Note No. 39

10. Amalgamation of Indian Metals and Carbide Limited (‘IMCL’) and B. Panda and Company Private Limited (‘BPCO’) into the Company

The Hon’ble National Company Law Tribunal (“”NCLT””), Cuttack Bench vide its Order dated 26th March, 2019, approved the Scheme of Amalgamation made under Section 230 to 232 and other applicable provisions of the Companies Act, 2013 (“”the Scheme””) involving amalgamation of (a) IMCL, a wholly owned subsidiary of the Company and (b) BPCO, the holding company of the Company, into the Company. The Scheme was approved by the Board of Directors of the Company on 28th September, 2017. Consequent to the filing of a certified copy of the said Order with the Registrar of Companies, Cuttack on 30th April, 2019, the Scheme has become effective from the Appointed Date i.e. 1st April, 2017. Upon the Scheme coming into effect, the undertakings of IMCL and BPCO stand transferred to and vested in the Company with effect from the Appointed Date and the Scheme has accordingly been given effect to in these financial statements.

As this is a business combination of entities under common control, the amalgamation has been accounted for using the ‘Pooling of interests’ method (in accordance with the approved Scheme) as envisaged in Appendix C of Ind AS 103 on ‘Business Combinations’. The figures for the previous year ended 31st March, 2018 have been restated as if the amalgamation had occurred from the beginning of the previous year i.e. 1st April, 2017. Accordingly, the Company has recorded all the assets, liabilities and reserves of IMCL and BPCO at their respective book values as appearing in their books of account as at 1st April, 2017.

Consequent to the scheme of amalgamation, the authorised equity share capital of the Company stands increased from 3,00,00,000 equity shares of Rs, 10 each, aggregating to Rs, 30 crore to 3,52,50,000 equity shares of Rs, 10 each aggregating to Rs, 35.25 crore and the authorised preference share capital of the Company stands increased from 40,000 redeemable cumulative preference shares of Rs, 100 each, aggregating to Rs, 0.40 crore to 90,000 redeemable cumulative preference shares of Rs, 100 each aggregating to Rs, 0.90 crore.

Equity Share Suspense Account amounting to Rs, 13.92 crore represents 1,39,18,046 Equity Shares of Rs, 10 each fully paid, issued and allotted to the shareholders of BPCO on 30th April, 2019 pursuant to the Scheme coming into effect.

11. Leases Operating Lease:

The Company’s significant operating lease arrangements are in respect of premises only which are renewable at the option of both the lessor & the lessee.

Total lease rent payments recognized in the Statement of Profit and Loss for the year is Rs, 2.23 crore (Previous Year : Rs, 3.11 crore).

12. The Board has recommended dividend of Rs, 5 per equity share subject to approval of the shareholders in the forthcoming Annual General Meeting. If approved, it is expected to result in a cash outflow of Rs, 16.26 crore including corporate dividend tax.

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