1. SIGNIFICANT ACCOUNTING POLICIES

1.1 Basis of Preparation of Financial Statements

These financial statements have been brpared in accordance with the Generally Accepted Accounting Principles in India, under the historical cost convention, on accrual basis. As per Rule 7 of The Companies (Accounts) Rules, 2014, the standards of accounting as specified under the Companies Act ,1956 shall be deemed to be the accounting standards until accounting standards are specified by the Central Government under Section 133 of the Companies Act, 2013. Consequently, these financial statements have been brpared to comply in all material aspects with the accounting standards notified under Section 211 (3C) of the Companies Act,1956 [Companies (Accounting Standards) Rules,2006] and the relevant provisions of the Companies Act, 2013.

Operating Cycle

All assets and liabilities have been classified as current or non-current as per the Company's operating cycle and other criteria set out in Schedule III of the Companies Act, 2013. The Company has ascertained its operating cycle as twelve months for the purpose of current/non-current classification of assets and liabilities.

1.2 Use of estimates

The brparation of financial statements requires the management to make estimates and assumptions which are considered to arrive at the reported amounts of assets and liabilities and disclosure of contingent liabilities as on the date of the financial statements and the reported income and expenses during the reporting year. Although these estimates are based upon the management's best knowledge of current events and actions, actual results could differ from these estimates. The difference between the actual results and the estimates are recognised in the periods in which the results are known / materialised. Any revision to the accounting estimates are recognised prospectively in the current and future years.

1.3 Revenue Recognition

Revenue is recognised only when it can be reliably measured and it is reasonable to expect ultimate collection. When recognition of revenue is postponed due to the effect of uncertainties, it is considered as revenue of the period in which it is properly recognised.

a) Revenue from sale of goods is recognised on transfer of significant risks and rewards of ownership to the buyer. Sale of goods is recognised gross of excise duty but net of sales tax and value added tax.

b) Inter unit transfers are adjusted against respective expenses.

c) Interest Income is recognized on time proportion basis taking into account the amount outstanding and the rate applicable.

d) I ncome from Dividend of shares of corporate bodies is accounted when the Company's right to receive the dividend is established.

e) Export Incentives:

(i) Export Incentives on account of Duty Drawback Scheme and Focus Product Scheme are accrued in the year when the right to receive as per the terms of the scheme is established in respect of exports made and are accounted to the extent there is no uncertainty about its ultimate collection.

(ii) Export Incentives on account of Status Holder Incentive Scheme is recognised as and when certainty of its realisable amount is established by the Company, to the extent the scrip value is sold or utilised against duty to be paid on Capital Goods.

1.4 Fixed Assets, Debrciation/Amortisation and Impairment

I. Fixed Assets

(a) Tangible fixed assets are carried at cost net of recoverable taxes and includes amounts added on revaluation, less accumulated debrciation and accumulated impairment losses, if any. Cost comprises of the purchase price and any directly attributable cost of bringing the asset to its working condition for its intended use. Borrowing costs relating to acquisition of fixed assets, which take substantial period of time to get ready for their intended use, are also capitalised to the extent they relate to the period till such assets are ready to put to use.

(b) In respect of fixed assets acquired on Finance Lease on or after 1st April, 2001, the lower of the fair value of the assets and brsent value of the minimum lease rentals is capitalized as fixed assets at the inception of the lease, with corresponding amount shown as lease liability. The principal component in the lease rental is adjusted against the lease liability and the interest component is charged to the Statement of Profit and Loss.

(c) I ntangible fixed assets are recognized when the asset is identifiable, is within the control of the Company, it is probable that the future economic benefits that are attributable to the asset will flow to the Company and cost of the asset can be reliably measured.

II. DEbrCIATION / AMORTISATION

(a) Debrciation on tangible assets other than Freehold and Leasehold Land, including assets acquired under finance lease, is provided over the estimated useful life of assets, in accordance with Schedule II to the Companies Act, 2013.

The Company has adopted the useful life as specified in Schedule II to the Companies Act, 2013 except for certain assets for which the useful life has been estimated based on the Company's past experiences in this regard, duly supported by technical advice. Accordingly, the useful lives of tangible assets of the Company which are different from the useful lives as specified by Schedule II are given below :

(b) Leasehold Land is held on various leases whose period ranges from 90 years to perpetuity. The Company does not consider such leases as having "a limited useful life for the enterprise" as envisaged in Accounting Standard 6 on 'Debrciation Accounting' and accordingly the cost thereof is not amortised.

(c) Computer software is amortised on a straight line basis over a period of five years.

III. IMPAIRMENT

The carrying amount of assets is reviewed at each Balance Sheet date to determine if there is any indication of impairment, based on internal / external factors. An impairment loss is recognized in the Statement of Profit and Loss wherever the carrying amount of an asset or the carrying amount of the cash generating unit to which the asset belongs exceeds its recoverable amount. After impairment, debrciation is provided on the revised carrying amount of the asset over its remaining useful life. A brviously recognised impairment loss is increased or reversed depending on events or changes in circumstances. However, the carrying value after reversal is not increased beyond the carrying value that would have brvailed by charging usual debrciation, if there was no impairment.

1.5 Capital Work-in-Progress

Capital work-in-progress is stated at cost and includes development and other expenses, including interest during construction period.

1.6 Borrowing Costs

Borrowing costs relating to the acquisition / construction of qualifying assets are capitalised until the time all substantial activities necessary to brpare the qualifying assets for their intended use are complete. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.

The ancillary costs incurred in connection with the arrangement of borrowings are amortised over the life of underlying borrowings.

Borrowing costs also include exchange differences arising from foreign currency borrowings, to the extent they are regarded as an adjustment to the borrowing costs. All other costs related to borrowings are recognised as expense in the period in which they are incurred.

1.7 Inventories

(a) I tems of inventories are carried at lower of cost and net realisable value, after providing for obsolescence, if any.

(b) Cost of inventories is determined on the 'weighted average' basis and comprises expenditure incurred in the normal course of business for bringing such inventories to their brsent location and condition and includes, wherever applicable, appropriate overheads.

1.8 Investments

I nvestments which are readily realisable and intended to be held for not more than one year from the date on which such investments are made are classified as current investments in accordance with Accounting Standard 13 on 'Accounting for Investments'. All other investments are classified as non-current investments.

Current investments are carried at lower of cost and fair value.

All non-current investments, including investments in subsidiaries, are carried at cost. However, provision is made for diminution in value, if any, only when such diminution is other than temporary in nature.

1.9 Provision for Doubtful Debts and Advances

The Company makes provision for doubtful debts and advances, to the extent considered necessary, based on the management's best estimate.

1.10 Foreign Currency Transactions, Translations and Derivative Contracts

The reporting currency of the Company is the Indian Rupee (Rs.)

(a) Initial Recognition

Foreign currency transactions are recorded in the reporting currency by applying to the foreign currency amount the brvailing exchange rate between the reporting currency and foreign currency, as on the date of the transaction.

(b) Conversion

Year end foreign currency monetary items are reported using the year end rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction. Non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates brvailing at the date when the values were determined.

(c) Exchange differences

Exchange differences arising on the settlement or reporting of monetary items, at rates different from those at which they were initially recorded during the year or reported in brvious financial statements and / or on conversion of monetary items, are recognised as income or expense in the year in which they arise. Exchange differences arising out of foreign currency borrowings are considered as an adjustment to interest cost and recognised in accordance with para 1.6 above.

(d) Derivatives

Accounting for derivative contracts is done based on the "marked to market" principle. Derivative Assets and Liabilities are fair valued at each reporting date and the corresponding gain or loss is recognised in the Statement of Profit and Loss

1.11 Leases

Where the Company is lessee:

Finance Lease

Assets acquired under leases where all the risks and rewards of ownership have been substantially transferred in favour of the Company are classified as finance leases. Such leases are capitalised at the inception of the lease at lower of the fair value or the brsent value of the minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost, so as to obtain a constant periodic rate of interest on the outstanding liability for each period.

Operating Lease

Assets acquired under leases where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Operating lease rentals are charged to the Statement of Profit and Loss on accrual basis.

Where the Company is lessor:

Operating Lease

Leases under which the Company does not transfer substantially all the risks and benefit of ownership of the asset to the lessee are classified as operating leases. Assets given on operating leases are included in fixed assets. Initial direct costs incurred before the asset is ready to be put to use, are included in the cost of the asset and those incurred afterwards, are recognised in the Statement of Profit and Loss as they are incurred. Lease income in respect of operating leases is recognized in the Statement of Profit and Loss on a straight-line method over the lease term in accordance with Accounting Standard 19 on 'Leases'. Maintenance cost including debrciation is recognised as an expense in the Statement of Profit and Loss.

1.12 Employee Benefits

(a) Employee benefits in the form of Provident Fund, Pension Fund, Superannuation Fund and Employees State Insurance are defined contribution plans and the Company's contributions, paid or payable during the reporting period, are charged to the Statement of Profit and Loss.

(b) Gratuity liability & Leave Encashment liability are defined benefit plans and are provided for on the basis of actuarial valuation on projected unit credit method at the Balance Sheet date.

(c) Actuarial gains/losses are charged to the Statement of Profit and Loss.

1.13 Taxes on Income

Tax expense comprises of current tax [(net of Minimum Alternate Tax (MAT) Credit entitlement)] and deferred tax.

Current tax is the amount of tax payable on the taxable income for the year determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax reflects the impact of timing differences between taxable income and accounting income for the current reporting year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognised in the period that includes the enactment / substantive enactment date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities. The deferred tax assets and deferred tax liabilities relate to the taxes on income levied by the same governing taxation laws. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In situations where the Company has unabsorbed debrciation or carry forward tax losses, all deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profits.

At each Balance Sheet date, the Company re-assesses unrecognised deferred tax assets. It recognises unrecognised deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realised.

MAT Credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT Credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in the Guidance Note issued by The Institute of Chartered Accountants of India, the said asset is created by way of a credit to the Statement of Profit and Loss and shown as MAT Credit Entitlement. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that the Company will pay normal income tax during the specified period.

1.14 Mining Development Expenses

Mining development expenses in respect of operating mines are charged off to revenue as and when incurred.

1.15 Provisions, Contingent Liabilities and Contingent

A provision is recognised when the Company has a brsent obligation as a result of a past event and it is probable that outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their brsent value and are determined based on 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 not recognised but are disclosed in the notes to financial statements. Contingent Assets are neither recognised nor disclosed in the financial statements.

1. Prior Period, Exceptional and Extraordinary Items

Prior Period, Exceptional and Extraordinary items having material impact on the financial affairs of the Company are disclosed separately.

2. Details of securities provided (including for current maturities as stated under "Other Current Liabilities") and their repayment terms :

(EMI - Equated Monthly Instalment; EQI - Equated Quarterly Instalment; UQI : Unequated Quarterly Instalment; PY : Previous Year)

Term Loans from Banks :

(a) Loan of Rs. 31.96 Crore (PY : Rs. 41.10 Crore) for setting up of Coal Handling Plant (CHP) at Choudwar, secured by first charge on the movable assets to be acquired out of the loan for CHP and first charge by way of mortgage on pari-passu basis on immovable properties of the Company situated at Choudwar excluding assets exclusively charged to other lenders. Repayment by 28 EQI of Rs. 2.29 Crore from October'12.

(b) Loan of Rs. 50.00 Crore (PY : Rs. 50.00 Crore) for general capital expenditure, secured by first pari-passu charge on fixed assets at Choudwar excluding those which are exclusively charged to other project lenders. Repayment by 35 EMIs of Rs. 1.39 Crore from April'17 and last instalment of Rs. 1.35 Crore.

(c) Loan of Rs. 50.00 Crore (PY : Nil) for general capital expenditure, secured by first pari-passu charge on fixed assets at Choudwar excluding those which are exclusively charged to other project lenders. Repayment by 24 EMI of Rs. 0.75 Crore from October '17, thereafter 11 EMI of Rs. 2.66 Crore and last instalment of Rs. 2.74 Crore.

(d) Loan of Rs. 63.00 Crore (PY : Rs. 81.00 Crore) for general capital expenditure, secured by first pari-passu charge on fixed assets (both moveable & immovable) of the Company (both brsent & future) situated at Therubali other than assets exclusively charged to other lenders. Subservient charge on the current assets of the Company. Repayment by 20 EQI from December'14.

(e) Loan of Rs. 31.32 Crore (PY : Rs. 41.76 Crore) for setting up of 30 MW Captive Power Plant (CPP) at Choudwar, secured by exclusive charge over the assets of CPP & first pari-passu charge on plot no. 43 on which CPP has been erected at Choudwar, with other term lenders. The loan is collaterally secured by second pari-passu charge on entire current assets of the Company. Repayment by 16 EQI of Rs. 2.175 Crore from June'10 and 20 EQI of Rs. 2.61 Crore from June '14.

(f) Loan of Rs. 16.00 Crore (PY : Rs. 28.00 Crore) for general capital expenditure, secured by extension of charge over the assets of 30MW Captive Power Plant (CPP) and pari-passu charge on plot no. 43 on which CPP is erected at Choudwar with other term lenders. Repayment by 8 EQI of Rs. 3 Crore from June'14 and 4 EQI of Rs. 4.00 Crore from June'16.

(g) Loan of Rs. 104.50 Crore (PY : Rs. 110.00 Crore) for 120 MW Power Plant at Choudwar, secured by first charge ranking pari- passu with other term lenders on the Company's movable & immovable properties, brsent & future, relating to the 120 MW power plant. Repayment by 38 UQI from June'15.

(h) Loan of Rs. 95.00 Crore (PY : Rs. 100.00 Crore) for 120 MW Power Plant at Choudwar, secured by first charge ranking pari-passu with other term lenders on the Company's movable & immovable properties, brsent & future, relating to the 120 MW power plant. Repayment by 38 UQI from June'15.

(i) Loan of Rs. 66.50 Crore (PY : Rs. 70.00 Crore) for 120 MW Power Plant at Choudwar, secured by first charge ranking pari-passu with other term lenders on the Company's movable & immovable properties, brsent & future, relating to the 120 MW power plant. Repayment by 38 UQI from June'15.

(j) Loan of Rs. 95.00 Crore (PY : Rs. 100.00 Crore) for 120 MW Power Plant at Choudwar, secured by first charge ranking pari-passu with other term lenders on the Company's movable & immovable properties, brsent & future, relating to the 120 MW power plant. Repayment by 38 UQI from June'15

(k) Loan of Rs. 47.48 Crore (PY : Rs. 50.00 Crore) for 120 MW Power Plant at Choudwar, secured by first charge ranking pari-passu with other term lenders on the Company's movable & immovable properties, brsent & future, relating to the 120 MW power plant. Repayment by 38 UQI from June'15.

(l) Loan of Rs. 4.81 Crore (PY : Rs. 1.64 Crore) for setting up of Industrial Training Centre (ITC) at Sukinda, secured by mortgage of lease hold right of property situated at Khata No 100, Plot No 238(P), Mauza-Dudhjhari, Sukinda Dist- Jajpur, admeasuring 5 acres and building to be constructed thereon along with the Furniture & Fixtures, Computers and equipment's to be purchased out of the loan. Repayment by 24 EQI from September'16.

(m) Loan of Rs. 19.38 Crore (PY : Rs. 9.54 Crore) for Housing Project at Choudwar, secured by mortgage of residential land admeasuring 10 acres 920 decimal (475675.20 sq fts) situated at Plot No.34/78 & 34/82, Tahsil-Tangi Choudwar, PS-Choudwar, Mouza-

Chhatisa No.2,Cuttack, Odisha and the proposed building to be constructed. Repayment of Rs. 20.00 crores by 24 UQI from June'16 and 5.85 crores in 24 EQI from February '18.

(n) Vehicle Loan of Rs. 0.18 Crore (PY : Rs.0.24 Crore) secured by charge on the Vehicle. Repayment by 60 EMI of Rs. 65232/- from January'14.

(o) Loan of Rs. 43.23 Crore (PY : Rs. 54.45 Crore) for setting up of Briquetting plant, Gas Cleaning plant, Fly Ash Brick plant and Low Density Aggregate plant, secured by first exclusive charge by way of hypothecation over plant & machinery of 27 MVA furnace at Choudwar and charge on all the brsent and future movable fixed assets of Gas Cleaning plant & Briquetting plant at Therubali, Low Density Aggregate plant and Fly Ash Brick plant I and II at Choudwar. Repayment by 16 EQI from January'14.

(p) Loan of Rs. 58.67 Crore (PY : Rs. 59.07 Crore) for general capital expenditure, secured by first and exclusive charge by way of hypothecation over plant & machinery of 27 MVA furnace at Choudwar. First and exclusive charge on all the brsent and future moveable fixed assets of Gas Cleaning plant & Briquetting plant at Therubali, Low Density Aggregate plant and Fly Ash Brick plant I and II at Choudwar. Repayment by 16 EQI from February'16.

Term Loans from Others:

(a) Loan of Rs. 3.23 Crore (PY : Rs. 7.63 Crore) for setting up of winder at Mahagiri Mines, secured by first charge on winder at Mines. Repayment by EMIs from February'13 to November'16.

(b) Loan of Rs. 20.00 Crore (PY : Nil) for capital expenditure related to power plants and other ancillary infrastructure, secured by first charge on Aircraft and two helicopters. Subservient charge on current assets of the Company. Repayment by 54 EMIs from June '16.

Note: Term Loans from Banks amounting to Rs. 31.96 Crore (PY : Rs. 82.86 Crore) are further secured by personal guarantees of 2 directors of the Company

3. The Hon'ble Subrme 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. 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. UCL has 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 interbrtation of 'Mine Infrastructure'. The arguments in both the aforesaid writ petitions have been heard by the Hon'ble High Court of Delhi and the judgments have been reserved. Pending final orders on the aforesaid writ petitions, no accounting adjustments have been made by UCL in it's books of account and no provision is deemed necessary in these financial statements against the Company's exposure in UCL as at 31st March, 2016 amounting to 7 110.88 Crore invested as equity, 7 173.77 Crore given as an unsecured loan and 7 78.09 Crore as a guarantee to a financial institution for loan availed by UCL.

4. In view of the circumstances detailed in Note No.31 above and considering the effect of uncertainties as envisaged in paragraph 9 of Accounting Standard 9 on "Revenue Recognition", with effect from 1st October, 2014 the Company has postponed recognition of income from interest on unsecured loan given to UCL. Due to this, profit before tax for the year ended 31st March, 2016 is lower by 7 21.08 Crore (Previous Year 7 9 Crore). The interest income would be considered as revenue of the period in which it is properly recognised.

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 7 57.07 lakh alongwith interest and 7 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 matter is pending for hearing.

The Company has not given effect of the aforesaid award in it's books of account on the principles of prudence, as the matter is sub-judice.

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 brferred an appeal before the Hon'ble Subrme Court of India against the judgment of Orissa High Court. The Hon'ble Subrme 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.

8. With reference to a Right of Recompense ('ROR') dispute with Andhra Bank, the Hon'ble Orissa High Court, based on Company's application, vide it's Order dated 18th March, 2015, directed the Company and Andhra Bank to resolve the issues relating to the amount of recompense payable to Andhra Bank on the basis of the principles laid down in the Order, brferably within a period of two months and thereafter the bank shall consider the issue of No Objection Certificate and vacate the charge by following it's own procedures. To give effect to the directions of the Hon'ble High Court, the Company had initiated discussions with Andhra Bank. Subsequently, Andhra Bank has filed an appeal against the aforesaid Order dated 18th March, 2015.

The Company has paid Rs. 1.35 Crore to the bank, on the basis of the earlier orders passed by the Hon'ble Orissa High Court from time to time, prior to the aforesaid final order dated 18th March, 2015 and is of the opinion that the final recompense amount will not exceed the amount which has been already paid to the bank.

9. 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 Rs. 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 Rs. 26,32,65,190/- divided into 2,63,26,519 equity shares of Rs. 10/- each to Rs. 25,97,70,530/- divided into 2,59,77,053 equity shares of Rs. 10/- each. Subsequently, several shareholders challenged the reduction of share capital before a Division Bench of the Hon'ble High Court which, vide its judgement 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 Subrme Court which issued notice in the matter and granted interim stay on the subscription or cancellation of the said 3,49,466 shares. As such, status quo is to be maintained until further orders.

10. Previous year's figures have been rearranged/ regrouped to conform to the classification of the current year, wherever considered necessary.

For Haribhakti & Co. LLP

For and on behalf of the Board of Directors

Chartered Accountants

ICAI Firm Registration No. 103523W

Anand Kumar Jhunjhunwala

Partner

Membership No. 056613

Prem Khandelwal  

CFO & Company Secretary

Subhrakant Panda  

Managing Director

Jayant Kumar Misra

Director (Corporate) & COO

Place: Bhubaneswar

Date: 17th May, 2016