| Textual Information(1) |
1 The above Unaudited Standalone Financial Results for the quarter ended June 30 2025 hereinafter referred to as Financial Results attached herewith have been prepared in accordance with the Indian Accounting Standards Ind AS34 Interim Financial Reporting as prescribed under section 133 of the Companies Act 2013 and compiled keeping in view the provision of Regulation 33 of SEBI Listing Obligations and Disclosure Requirements Regulations 2015 as amended These financial results have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on August 06 2025 and have been subjected to Limited Review by the Statutory Auditors n n2 The Company operates mainly in one business segment viz Pipes and fittings and all other activities revolve around the main business n n3 In pursuance of the Order dated September 24 2014 passed by the Honble Supreme Court of India the Order followed by the Ordinance promulgated by the Government of India Ministry of Law Justice legislative department dated October 21 2014 Ordinance for implementing the Order allotment of Parbatpur coal block coal block mine to the Company which was under advanced stage of implementation had been cancelled wef April 01 2015 In terms of the Ordinance the Company was allowed to continue the operations in the said coal block till March 31 2015 Accordingly the said coal block had been handed over to Bharat Coking Coal Limited BCCL as per the direction from Ministry of Coal Ministry with effect from April 01 2015 and the same was thereafter allotted to Steel Authority of India Limited SAIL and an initial compensation of Rs 8432 lakh was awarded of which Rs 831234 lakhs was received by the Company The company also came to understand that SAIL subsequently handed over back the said coal block to the custody of BCCL n nFollowing a petition filed by the Company challenging the method and amount of compensation determined the Honble High Court of Delhi pronounced its judgement on March 09 2017 laying down the principles of determination of revised compensation Accordingly based on the said judgement the Company claimed Rs 154944 lakhs towards compensation against the said coal block acceptance whereof is awaited The then Nominated Authority for deciding the amount of compensation had passed an order after the above judgement which revised the compensation by a small amount However upon an appeal being made by the Company the said order was set aside by the Honble High Court with a direction to the Nominated Authority to reconsider the same The Nominated Authority thereafter passed an order dated November 11 2019 awarding an additional compensation of Rs 17979 lakhs with a further direction to determine the value of certain assets forming part of the mine infrastructure liable for compensation in terms of the Ordinance to the Company Subsequently the Nominated Authority appointed a valuer to determine the value of those specified assets and thereafter an another valuer was also appointed for cross verification of certain backup documents details and indirect costs related thereto so that to arrive at the correct valuation for compensation against those assets Moreover the Company had also earlier approached the Nominated Authority Ministry to reconsider the compensation determined by the previous officer holding charge of office of Nominated Authority for land and some other major assets and the final compensation thereof is yet to be decided nIn the meantime JSW Steel Limited JSW had been declared as successful bidder for Parbatpur Coal Block in 16th Tranche of Auction Under Coal Mines Special Provisions Act 2015 and vesting order dated June 08 2023 was issued by the Ministry in favour of JSW JSW as being claimed by them took over the physical possession of said coal block and requested the Company to initiate negotiations for utilization of movable property assets used in coal mining Pursuant to this the Company has submitted that the matter is still subjudice and pending decision thereof it is premature to initiate such negotiations at this stage n nRecently the Nominated Authority has passed a Provisional Compensation Order dated June 15 2025 Provisional Order declaring additional compensation of Rs 47611 lakhs against Shaft and Incline and some other Mine Infrastructure and Rs 2260 lakhs against Land aggregating to Rs 49871 lakhs in favour of the Company Comments objections on the said Provisional Order from the prior allottees ie the Company and SAIL and from the successful bidder ie JSW have been sought by the Nominated Authority in order to provide reasonable opportunities to the relevant parties before declaring the final compensation The final order in this respect is yet to be received pending completion of the aforesaid procedural formalities in terms of the Provisional Order n nMeanwhile as stated above the Companys petition before Honble High Court of Delhi filed in earlier years for determination of the amount of the compensation for the coal block pertaining to mine infrastructure and land etc in terms of Coal Mines Special Provisions Act 2015 read with judgement dated March 09 2017 pronounced by the Honble High Court of Delhi is also being actively pursued and is pending adjudication as on this date n nPending finalisation of the matter as above no adjustment for the amount of the compensation has been given effect to and various balances pertaining to said mine as appearing in the books of accounts have been dealt with as follows n ni Rs 128884 lakhs incurred pertaining to the coal block till March 31 2015 after setting off income stocks etc there against as per the accounting policy then followed by the Company has been continued to be shown as freehold land capital work in progress other fixed assets and other respective heads of account nii Interest and other finance cost for the year ended March 31 2016 against the fund borrowed and other expenses directly attributable in this respect amounting to Rs 951474 lakhs have been considered as other recoverable under current assets and niii Compensation of Rs 8312 lakhs have so far been received Further net realisations claims against sale of assets advances etc in this respect aggregates to Rs 209004 lakhs A Bank Guarantee amounting to Rs 920 lakhs has been given against the compensation received n nNecessary disclosures and adjustments arising with respect to above on determination of the claim will be given effect to on the finalisation and acceptance of the amount thereof n n4a The Company holds 19796000 equity shares of Rs 10 each in ESL Steel Limited ESL out of which 17334999 equity shares of Rs 10 each amounting to Rs 405985 lakhs were pledged with the consortium of lenders of ESL lenders The notices issued by the lenders for invocation of pledge of companys investment was set aside by the Honble High Court at Kolkata in the earlier year and the companys plea for release of such pledge is pending before the said Honble High Court n nb Further in the earlier years certain land amounting to Rs 2949358 lakhs of the company situated at Elavur Tamil Naidu were mortgaged to another lender SREI Infrastructure Finance Limited SREI of ESL and SREI had subsequently assigned its right in the said property to an Asset Reconstruction Company ARC although the claims of the said lender were fully discharged by ESL as per the Resolution Plan approved by Honble National Company Law Tribunal NCLT Kolkata Subsequently the ARC had issued SARAFESI Notice and taken the symbolic possession of the said land The Company had disputed the alleged assignment of the loan by the lender and as directed by the Honble Supreme Court had filed an application before the Debt Recovery Tribunal DRT Chennai for setting aside the SARAFESI actions and release of the title deeds of the land which vide order dated April 08 2022 uploaded on April 27 2022 had been dismissed by DRT On filing the appeal before the Debt Recovery Appellate Tribunal DRAT against the order of DRT DRAT has directed the Company to deposit 50 of the SARAFESI demand ie Rs 2935504 lakhs against which revision application under Article 227 of the Indian Constitution and a Writ Application under Article 226 of Indian Constitution has been filed before Honble Madras High Court and the matter is pending before the said court n nEarlier the ARC had also filed an application before the Honble NCLT Cuttack for initiation of Corporate Insolvency and Resolution Process CIRP against the Company which had been decided in the favour of the Company vide NCLT order dated June 24 2022 the Order The said order on being challenged by ARC has been upheld by Honble National Company Law Tribunal NCLAT vide its order dated January 24 2024 and thereby the order dismissing the application of ARC by NCLT as above stands valid and effective The judgement of NCLAT has been challenged before Honble Supreme Court of India which is yet to be decided by the said court n nc Pending finalization of the above matters these assets have been carried forward at their book value n n5tDuring the quarter the State Government of West Bengal State Government has notified the enactment of the Revocation of West Bengal Incentive Schemes and Obligations in the nature of Grants and Incentive Act 2025 the Revocation Act rescinding revoking and discontinuing all West Bengal Incentive Schemes including West Bengal Incentive Scheme 2000 WBIS 2000 the Scheme retrospectively from the date of implementation of the respective scheme n nThe company is entitled to receive incentive in the form of Industrial Promotion Assistance under WBIS 2000 for the period starting from April 01 2004 till March 31 2019 in respect of companys manufacturing units at Khardah and Haldia and eligibility certificates to the effect as required in terms of WBIS 2000 have been granted to the company Accordingly the benefits under the said scheme has accrued to and vested in the company before the enactment of the Revocation Act and Rs 4681 lakhs out of the amount accrued in this respect till June 30 2017 pending determination of the amount pertaining to GST Regime for the remaining period till March 31 2019 is outstanding as on June 30 2025 The Honble High Court of Calcutta on a petition filed by the company for the claim upto March 31 2015 vide its order dated April 08 2024 has directed the State Government to pay the amount remaining unpaid under the Scheme and pending receipt of the claim despite the direction of the Honble High Court the company has filed contempt petition before the said court on August 23 2024 An another petition claiming the incentive for the remaining period upto June 31 2017 has also been filed before the said court The decisions with respect to these petitions are pending adjudication as on this date n nThe company based on the legal advice is contemplating to seek the legal recourse available on the matter including filing a petition before appropriate legal forum challenging the validity and retrospective applicability of the Revocation Act Accordingly the amount of claim accrued in earlier years and outstanding as above being considered good and recoverable has been carried forward as on June 30 2025 n n6tSubsequent to the balance sheet date the Company pursuant to Share Purchase Agreement SPA entered into with TIS Group SPA has acquired 3000000 equity shares of EURO 1 each of TIS Service SPA TIS representing 100 shareholding of TIS at an aggregate consideration of EURO 11500000 equivalent to Rs 11470 lakhs The entire consideration has been remitted on July 29 2025 and therefore TIS has since become a wholly owned subsidiary of the company n n7tConsequent to the change in rate of taxation on Capital Gain and withdrawal of indexation benefit pursuant to the Finance No2 Act 2024 computation of deferred tax liability was revised in the previous year and resultant differential amounting to Rs 809817 lakhs net being no longer required had been reversed and adjusted against the tax charge for the quarter and year ended March 31 2025 n n8ta The figure for the quarter ended March 31 2025 is the balancing figure between the audited figure in respect of the full financial year and the year to date figure upto the quarter ended December 31 2024 which was subject to limited review by the Statutory Auditors nb Previous periods figures have been regroupedrearranged wherever necessary n |