Kalyani Steel Annual Report 2022 23

KALYANI STEELS LIMITED | 50th ANNUAL REPORT 2022-2023
MANAGEMENT DISCUSSION AND ANALYSIS
1.0
1.0 Economic Overview

1.1 Global Economy
Lost growth momentum on account of conflict, trade tensions & inflation
Economic activities regained the strong momentum

towards the end of 2021 when global GDP recovered
back to pre-pandemic levels as most of the major
economies removed the stringent lockdown measures
on account of COVID 19 except China. However, the
momentum was short lived since global economy
experienced several negative shocks in 2022, causing
global GDP growth to slow to estimated 3.4% in 2022
from 6.2% in 2021.
These negative shocks include geopolitical conflict
between Russia & Ukraine started in February 2022,
trade tension between US & China, rising inflation
levels across major economies, particularly, developed
economies, slowdown in China economic activities
due to disruptions from waves of COVID 19 infection,
sanctions & reverse sanctions etc. Such consequential
negative shocks pose a challenge to international
relations and oen lead to policy driven reversal of
globalization by protecting the domestic interests.
The ill-effects of war in Ukraine did not just limit to
lives and livelihoods, but it also had several appalling
impacts leading to a severe energy crisis in Europe
as gas supply was cut by Russia in retaliation of
Western countries' economic sanction and supply chain
disruptions. More importantly, the conflict also pushed Source : World Economic Outllook - April 2023, International
up the inflation levels globally, impacting developing Monetary Fund
countries. Further, inflation in developed counties
remained quite persistent throughout the year.
Due to high level of supply chain disruptions, trade
The rising global inflationary pressures led to rapid
tensions and to reduce dependency on single source,
tightening of monetary policies across the Advanced,
major multinational corporations' interests are rising
Emerging & developing economies.
in reshoring & friend-shoring with support of the
local government. For example, in Europe, the French
government has been urging the EU to accelerate
production targets, weaken state aid rules and develop
a "Made in Europe" strategy to counter domestic
production subsidies provided by the US Inflation
Reduction Act. Such protective measures are slowing
the global demand and growth projections leading to
the era of 'Slowbalization'.
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EMERGING MARKETS & DEVELOPING ECONOMIES
The China economic activities deteriorated sharply in

Source : The Bank of International Settlements,BIS.org 2022 owing to stricter lockdown measures especially
in second and fourth quarters of CY 2022 because of
its Zero COVID policy. This led to lower consumption,
ADVANCED ECONOMIES
& production. Further, lockdown aggravated the
Aer strong growth of 6% in 2021, GDP growth in the downturn in real estate sector which contributes
U.S. slowed to 2.1% in 2022. Russia-Ukraine war had around 25% to GDP of China. As a result, GDP growth
limited impact on GDP growth & economic activities slowed to 3% in 2022 from 8.4% in 2021.
as US is the net exporter of energy, the energy prices
did not shoot up as high as Europe. However, strong Indian economy has shown relatively resilient
consumer demand was the main driver of inflationary performance in 2022 over 2021 with an estimated
pressure in the U.S. growth rate of 6.8% in 2022 over 8.7% in 2021.
EU experienced the severe heat of Russia-Ukraine war Following its invasion on Ukraine, western countries
aer Russia (the EU's largest energy supplier in 2021) imposed heavy sanctions on Russia which severely
restricted energy supplies to Europe in retaliation for damaged parts of Russia's key industrial activities like
economic sanctions. Natural gas imports from Russia Automobile which relies on imported parts. Though,
fell to around 25% of the average between 2016 to many western firms stopped selling their goods &
2020 by the end of July 2022 and to approximately services to Russia, companies in other parts of the
15% by the end of 2022. As a result, natural gas prices world stepped up to fill the gap helping Russia recover
in Europe spiked sharply leading to record high aer the sharp drop in the months following the
electricity and inflation. These factors led EU GDP invasion. This led to an estimated contraction of 2.1%
growth to slow down to 3.5% in 2022 from 5.3% in in 2022 as against a growth of 4.7% in 2021.
2021.
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Outlook : A fragile recovery is underway
Global GDP growth is forecasted to come down further Tight monetary policy in US could result in a stronger
to 2.8% in 2023 from 3.4% in 2022. Most of the USD and related spill overs considering its role as
weakness in growth would be attributed to slower the primary currency for trade and finance. A strong
growth in major advanced economies like US & EU area dollar can drive up prices in local currencies and cause
at 1.6% and 0.8% respectively whereas emerging & inflation to persist.
developing economies in Asia would drive growth.
Geopolitical tensions are at a high level. If
Some of the key economic indicators' recent data Russia-Ukraine war is further intensified or
suggests a fragile recovery. Global output PMI index conflict arises elsewhere, it could have significant
for both Manufacturing & Services sector has risen economic repercussions through commodity markets,
above 50 in recent past months indicating reversal of trade, uncertainty, confidence and financial stress in
economic activities. affected countries. Further, geopolitical tension could
force some policy makers to take further steps to
Following Russia's war against Ukraine, energy prices delink from global financial & trade networks which
had sharply risen in particularly EU area. However, could raise policy uncertainty.
starting of 2023, energy prices have come down, but
they are still at a higher level. More than the prices, Many countries are seeking to re-orient supply chains
sufficient availability of natural gas in EU is a prime such that key inputs are produced either domestically
concern which affects the viability of key business or with a narrow set of friendly partners.
segments.
The world is experiencing frequent costly,
Globally, inflation has proven more persistent and rise record-breaking weather events due to climate change.
in core inflation suggest that inflation may remain In the near term, such climate-related disasters can
above pre-pandemic averages and central bank targets inflict substantial human costs, damage infrastructure
in many countries for an extended period. Headline and disrupt activity. Disasters can also worsen
Inflation is expected to fall from 8.7% in 2022 to 7.0% government fiscal positions through lower tax receipts
in 2023 which is still above pre-pandemic average of and lower productivity alongside increased spending
2.3%. on reconstruction and public services.
Inflation remaining above target could likely force

central banks to raise interest rates more quickly than
currently expected.
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1.2 Indian Economy
Resilient performance : A shining economy amid decelerating global demand
Global economy has experienced multiple negative Robust growth in exports, but trade balance widened
shocks within last 3-4 years. It started with pandemic
induced contraction followed by Russia-Ukraine war India's export numbers have been continuously
leading to surge in key commodity prices and hence increasing. In FY 2022-23, India reached a significant
inflation. Inflationary pressures triggered central banks milestone with total exports (goods & service
across the world to tighten the monetary policies. combined) estimated to be USD 770 Billion for the first
time in the history.
Indian economy, however, has shown a resilient
performance ahead of many countries amid these India's merchandise exports in FY 2022-23 stood at
global shocks. Indian economy is estimated to have USD 447 Billion exhibiting a growth of 6% over
grown by 6.8% in FY 2022 as against a growth of 8.2% FY 2021-22 while services exports in FY 2022-23
in FY 2021 and emerged as one of the fastest growing stood at USD 322 Billion as against USD 254 Billion
major economies in the world. Yet, Indian economy in FY 2021-22 registering a growth of record 26.8%.
faced numerous challenges in FY 2023 in terms of Total exports (merchandise & exports) grew by 13.8%
rising inflations, rise in commodity prices, depreciating in FY 2022-23 at USD 770 Billion as against USD 676
rupee, widening of CAD etc. Billion in FY 2021-22.
Gross value added (GVA) at basic prices is estimated to

increase by 6.7% in FY 2023 over FY 2022 as against
8.1% in FY 2022 over FY 2021. India's economic
growth in FY 2023 has been principally led by private
consumption and capital formation. Gross Fixed Capital
Formation (GFCF), a measure of investment in fixed
capital, increased by 11.5%, Private Final Consumption
Expenditure (PFCE) which has the highest contribution
to GDP has increased by 7.7%.
At the same time, merchandise imports increased

by 16.5% in FY 2022-23 at USD 714 Billion whereas
services imports increased by 21% in FY 2022-23 at
USD 178 Billion. Total imports in FY 2022-23 stood at
USD 892 Billion as against USD 760 Billion in
FY 2021-22 registering a growth of 17.4%.
Even aer significant growth in exports, primarily led

by service sector, India's trade balance widened to USD
122 Billion in FY 2022-23 as against USD 83 Billion in
Source : National Statistics Office, Ministry of Statistics and FY 2021-22.
Programme Implementation Press release dated January 6,
2023, RBI's survey of professional forecasters dated April 6,
2023.
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Output of Eight Core Industries has grown

by 8%
In FY 2022-23, inflation was mainly driven by higher
food inflation ranging between 4.8% to 8.8% while the
The Index of eight Core Industries (ICI) measures
core inflation rate remained at a relatively steady level
combined & individual performance of eight core
between 5.8% to 7.1%. Headline inflation remained in
industries viz. Coal, Crude Oil, Natural gas, Petroleum
a range between 5.7% to 7.8% throughout the year.
& refinery products, Fertilizers, Steel, Cement and
Electricity.
In the first half of FY 2022-23, inflation levels remained
at a high level due to Russia-Ukraine crisis which were
For the period, Apr-Feb 2023, core sectors like Coal,
then subdued in the second half of the year.
Fertilizers, Steel, Cement & Electricity have shown
resilient performance as against a moderate growth in
Refinery products, very low growth in Natural Gas and
a negative growth in Crude oil as compared with same
period last year i.e., Apr-Feb 2022.
Overall, the output of 8 core industries have grown

by 8% (provisional) for the period Apr-Feb 2023 as
against an 11% growth in Apr-Feb 2022.
Y-o-Y Growth Rates

Core 2021-22 Apr-Feb Apr-Feb
Sectors 2021-22 2022-23
(P) (P)
Coal 8.5 9.8 15.2
Crude Oil -2.6 -2.6 -1.6
Natural Gas 19.2 20.5 1.5
Refinery
8.9 9.2 5.2
Products
Fertilizers 0.7 -0.4 11.5
Steel 16.9 18.4 7.5
Cement 20.8 22.3 9.7 Source : Economic Survey 2022-23; MoSPI CPI data
Electricity 8.0 8.2 9.9

Total 10.4 11.1 7.8
Source : Ministry of Commerce & Industry, Department for
Promotion of Industry and Internal Trade
Higher inflation levels in FY 2022-23
Indian economy faced very high inflationary pressures

throughout the year leading RBI to tighten the
monetary policy by increasing the repo rates.
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Outlook : India to emerge as one of the fastest growing major economies in the world
Globally, there is an increased trend among nations Although inflation levels have subdued in second half
and MNCs to secure their supply chains considering of FY 2023, it is not yet at a comfortable level for
geopolitical complications. India, on the other hand, the central bank. Ongoing Russia-Ukraine war would
presents huge potential and opportunities to emerge keep the inflation level at relatively higher level in
as an export hub and investment destination in the near future. IMF has projected the inflation level to
manufacturing and services space. remain at 4.9% and 4.4% in FY 2023-24 & FY 2024-25
respectively. Higher inflationary levels may force RBI to
The Indian economy has remained resilient amidst further tighten the monetary policy which might affect
high tides of uncertainty. The performance indicates the private investments due to increased borrowing
that the recovery from the pandemic was stronger costs.
led primarily by private consumption and strong
rebound in government consumption. Similar resilient To summarize, India economy is well posed to absorb
performance is also expected to in near future too. global exigencies and negative shocks better than
major global economies in the world.
IMF has projected a real GDP growth of 5.9% in The private consumption has rebounded, higher capital
FY 2023-24 and 6.3% in FY 2024-25. Among the expenditure would give a requisite boost, government
forecast India has the highest rate of GDP growth for infrastructure spending would add significant value for
FY 2023-24. Various agencies have forecasted GDP the economy to grow faster than its peers.
growth of India between the range of 5.5% to 6.4% for
FY 2023-24.
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2.0
Steel Industry Overview

2.1 Global Steel Industry
Contraction in steel demand aer recovery momentum post pandemic shock
Global steel industry had gained a good recovery European Union & UK witnessed a sharp decline of
momentum in CY 2021 aer the pandemic shock. 7.9% in its crude steel production of 151.8 Million tons
However, growth in CY 2022 was hampered by certain in 2022. Industrial activities suffered significantly due
negative shocks in the form of higher inflation, to high energy costs which led to contraction in steel
increasing interest rates, the Russian-Ukraine war, demand.
and China's Zero COVID 19 policy leading to repeated
lockdowns, rising commodity prices, supply side Top 10 Steel producing countries.
bottlenecks etc. The destruction of steel production (Million tons)
facilities in Ukraine, soaring energy prices in Europe led
to widespread plant idling and production stoppages, Country CY CY % Growth
especially in Europe. Such negative shocks resulted in 2021 2022
lower demand of steel products and led to contraction World 1,962.3 1,885.0 -3.9%
in steel demand. China 1,035.2 1,018.0 -1.7%
In CY 2022, total crude steel production stood at 1,885 India 118.2 125.1 5.8%
Million tons as against 1,962 Million tons in CY 2021 Japan 96.3 89.2 -7.4%
representing a contraction of 3.9%.
United
85.8 80.5 -6.1%
States
China, the world's largest steel producer, recorded
contraction for consecutive two years in its crude Russia 77.0 71.5 -7.2%
steel production. China's steel production recorded a South
contraction of 1.7% in CY 2022 aer a contraction of 70.4 65.9 -6.5%
Korea
2.8% in CY 2021. Deceleration in Chinese economy
primarily led by unexpected lockdowns extended Germany 40.2 36.8 -8.4%
across different parts of the country on account Turkey 40.4 35.1 -12.9%
of surge in COVID 19 infections. Further, China's
Brazil 36.1 34.0 -5.8%
construction sector's negative momentum started in
2021 continued & intensified in 2022 adding to lower Iran 28.3 30.6 8.0%
demand. A slight pick up in the real estate sector is
likely in 2023 with the help of government support. US steel production decreased by 6.1% as
manufacturing sector has slowed aer rebound from
lockdown. Several key factors including rising car prices
and interest rates put downward pressure on US auto
sales leading to contraction in steel demand.
Steel demand in the developed economies
suffered a significant contraction in 2022 due Indian steel industry remained the bright spot in
to monetary tightening and high energy prices. global steel industry performance in 2022. Strong
growth in infrastructure projects led by government,
better inflation management and rising manufacturing
activities helped steel output to grow by 5.8% in 2022
aer a 17.9% growth in 2021. India's total crude steel
production stood at 125 Million tons in 2022 as against
118 Million tons in 2021.
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2.1.1 Input Prices

Iron ore is the key raw material for steelmaking. During Coking coal prices observed a sudden dip in prices aer
the year 2022, iron ore prices were seen fluctuating May 2022 & reached to a level of USD 239/MT in
from USD 130/MT in Jan 2022 then rising to Jul 2022. Prices then moved up to reach a level of
USD 150/MT in Apr 2022. Prices then started a USD 343/MT by the end of Mar 2023. Coke prices
downward trend to reach a low of USD 93/MT in observed relatively similar trend of fluctuation to that
Oct 2022 post which it increased again to reach a of iron ore. Importantly, it is worthwhile to note that
level of USD 126/MT in Mar 2023. Key reason for such the difference between coking coal & coke prices have
fluctuation can be attributed to China's steel demand narrowed and reached to a level of as low as
and supply disruption due to Russia-Ukraine war. USD 93/MT.
During the start of the year 2022, geopolitical tension

between Russia-Ukraine created a worldwide supply
chain disruption since Ukraine was the fih largest
iron ore exporter (in 2021) in the world prior to the
war situation. The sudden drop in iron ore supply in
the steel market created an upward rise in the iron
ore prices during the initial few months of the year.
During the later part of the year from Apr 2022 till Nov
2022, Chinese steel production was cut in response to
low domestic real estate demand and rising inventory
levels leading to decline in iron ore prices in this period.
In Mid of Dec 2022, China made a U turn in its Zero

COVID 19 policy and reopened the economy although
COVID 19 related infections in the country were rising.
With economic activities gaining momentum, steel
demand also increased enabling steel mills in China
to restock the iron ore. This caused iron ore prices to
again increase post Dec 2022 to a level of USD 126/MT
in Mar 2023.
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2.1.2 Outlook
In its short-range outlook Apr 2023, World Steel Hence, the outlook of the EU steel industry is subject
Association predicted that global steel demand will see to continuing uncertainty. Aer a fall of 7.9% in 2022,
a recovery with 2.3% growth to reach 1,822.3 MT in demand is expected to fall further by 0.4% in 2023 and
2023 and 1,854.0 MT in 2024 at a growth rate of 1.7%. to grow by 5.6% in 2024.
Among others, manufacturing sector is expected to United States manufacturing activities are expected
lead the recovery in steel demand, however, higher to recover in 2023. Particularly, light vehicle sales are
interest rates may put negative pressure. In 2023, expected to rise by 8% in 2023 and further increase by
growth in steel demand is expected across most of the 7% in 2024 which would help boost the steel demand.
regions except China. Further, expanding energy production would also help
benefit the Steel demand from the energy sector. Aer
China's weak manufacturing sector performance a decline of 2.6% in 2022, steel demand is expected to
in 2022 is expected to show only a moderate grow by 1.3% in 2023 and by 2.5% in 2024.
recovery in 2023-2024. Although infrastructure
investment in China showed a strong growth of India has time and again shown the resiliency in its
9.4% with government support, this growth was economic growth and steel demand. Infrastructure
largely in the sectors with less-steel demand such as projects primarily led by government, increase in
telecommunications and logistics etc. Aer declining by housing demand, rising private investments would help
3.5% in 2022, China's total steel demand is expected to boost the steel demand in the country. Automotive
grow by 2.0% in 2023 and to remain flat in 2024. and consumer durables are expected to maintain
EU steel industry will continue to feel the heat of the healthy growth in 2023 which would further add to
war, supply chain-related issues, increase energy the steel demand. Aer growth of 8.2% in 2022, steel
prices, inflationary pressure and continued monetary demand is expected to show a healthy growth of 7.3%
tightening. Much depends on the result of the in 2023 and 6.2% in 2024.
Russia-Ukraine war and when does it end.
Particulars Demand Growth (%)

(Million tons)
2022 2023 (F) 2024 (F) 2022 2023 (F) 2024 (F)
World 1,781.5 1,822.3 1,854.0 -3.2 2.3 1.7
China 920.9 939.3 939.3 -3.5 2.0 —
EU and UK 151.8 151.3 159.8 -7.9 -0.4 5.6
India 114.9 123.3 130.9 8.2 7.3 6.2
US 94.5 95.8 98.2 -2.6 1.3 2.5
Japan 55.0 57.2 57.9 -4.2 4.0 1.2
South Korea 51.2 52.7 53.8 -8.6 2.9 2.0
Source : World Steel Association, Short Range Outlook, Apr 2023
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2.2 Indian Steel Industry Overview
Strong growth in steel production amid global uncertainty
Indian steel industry plays a pivotal role in the To cool off the rising prices, certain measures were
economic growth of the country. Infrastructure taken by the Government. In May 2022, import duty on
projects led by government, increase in housing Anthracite / Pulverized Coal Injection (PCI) coal, Coke
demand, auto sector coming back to pre-covid levels and Semi-coke and Ferronickel were reduced to zero
etc. is helping domestic steel demand to grow. Steel while Export duty on Iron ores / concentrates and iron
sector contributes around ~2% to the GDP with current ore pellets was raised to 50% and 45% respectively.
level of production and capacities. National Steel Policy In addition, 15% export duty was imposed on pig
of 2017 envisages India's steel production to reach at iron and several steel products. Although it helped to
300 Million tons by 2030 and thereby steel industry's reduce the steel prices, exports from the country hurt
contribution to the GDP is expected to rise further. significantly. Aer a decline in prices by around
15-25%, government rolled back the export duty in
Indian steel industry faced numerous challenges in Nov 2022.
FY 2022-23 due to global negative shocks. The year
started with global uncertainty amid Total crude steel production for FY 2023 is estimated
Russia-Ukraine war causing supply chain disruptions at 126 Million tons as against 118 Million tons in
across the world. For a country like India, where steel FY 2022. Finished steel export during FY 2023 stood at
industry is completely dependent on imports for its 6.7 Million tons as against 13.5 Million tons in
basic raw material Coking coal & coke, supply chain FY 2022 showing a massive 50% reduction. Finished
related complications pose a significant challenge. steel import during FY 2023 stood at 6.0 Million tons
as against 4.6 Million tons in FY 2022, representing a
Rise in commodity prices of key raw materials, growth of 30%.
increased the steel prices escalating the cost of
majority of the ongoing projects in the country.
FY 2022 FY 2023
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2.2.1 Major Drivers of Growth
Automotive industry
In FY 2023, Passenger Vehicles (PV) sales stood at

4.5 Million vehicles as against 3.5 Million vehicles
sales in FY 2022 registering a phenomenal growth of
29%. Similarly, Commercial vehicles (CV) sales rose
to 1 Million vehicles registering similar growth level
to that of PV at 29 % over FY 2022. Two wheelers'
(2W) sales registered a relatively low growth of 9%
in FY 2023 at 19.5 Million vehicles as against 17.9
Million vehicles in FY 2022. Three wheelers' (3W)
sale stood at 0.85 Million as against a 0.75 Million in
FY 2022 registering a growth of 12%. Only PV sales
has crossed the pre-covid level however, CV, 2W &
3W are yet to catch up to the pre-covid level.
The robust performance & demand of Automotive

industry against severe challenges such as of
increased cost of ownership, high inflation & supply
chain issues is a major growth driver of Indian Steel
industry.
Construction & Infrastructure
Government of India, in its budget for FY 2023-24

announced total capital expenditure outlay of
` 10 Lac Crore; 33% higher than the previous year.
Increasing spending clearly signals government's

impetus on using infrastructure development in the
country as catalyst of economic growth.
Several key projects like PM GatiShakti for

multi-modal connectivity, National Infrastructure
Pipeline (NIP) aimed at providing best in class
infrastructure to citizens, PM Awas Yojna to
provide affordable housing to both rural &
urban families, improving railway infrastructure,
water infrastructure, UDAAN Scheme etc. would
significantly increase the steel demand in the
country in near future.
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2.2.2 Decarbonization of Steel Industry - Need of the Hour!
Globally, steel industry contributes nearly 7% of total Decarbonizing the EAF / IF route : It is a low hanging
global CO2 emissions making it the fih largest CO2 fruit since ~70% of total emission in this route is due
emitting industry on our planet. But we can't live to usage of fossil fuel-based electricity. If we switch
without steel since it's a basic commodity required in over from fossil fuel-based power to renewable energy,
many industries such as Automotive, Infrastructure, Oil electrify various furnaces used, shi to eco-friendly
& Gas, Consumer durables, Energy, Railway etc. furls such as Bio-Diesel and make focused efforts
to increase the energy efficiency then Indian steel
Globally, on an average 1.91 tCO2 is emitted per MT industry can quickly reduce emissions by a whopping
of crude steel, however, in India, ~2.5 tCO2 is emitted ~22%!
per MT of crude steel. India is world's second largest
steel producer and as per National Steel Policy 2017 Decarbonizing BF-BOF route: A commercial large
envisages to reach 300 Million tons capacity by scale & viable solution for decarbonization of BF-BOF
2030. With increased production in the country, CO2 route is under development wherein Iron ore pellets
emissions from the steel industry would go multifold are reduced using Green H2 as reductant. The entire
if accelerated efforts are not taken to decarbonize process can be broken into 4 parts, 1. RE power
steelmaking operations in the country. 2. Green H2 production 3. Green DRI production
4. EAF / SAF steelmaking. Out of these 4 parts,
Developed countries are constantly updating their large scale green H2 production & storage is under
regulations to manage their carbon emissions. Take for development, further green DRI manufacturing
example, EU's Carbon Border Adjustment Mechanism using green H2 as reductant is yet to be established
(CBAM) wherein it would levy tax on all the materials as commercial large scale viable solution. Globally,
imported in EU equivalent to the embedded CO2 few steel players have announced their plans to
emission. Unless we decarbonize our operations, set up Green H2 based steelmaking plants to be
entire steel export (along with export of the end use commissioned by 2026 onwards. However, commercial
products, such as auto components etc.) would be at viability of such plants is yet to be understood and
risk. known.
India has unique position when it comes to Working on the same principles of decarbonizing
decarbonization because of its composition of different EAF / IF route to decarbonize the steelmaking
steelmaking routes. 45% of total steel is produced operations, in India, Saarloha Advanced Materials
via BF-BOF route, 27% by EAF route while 28% by Private Limited, a Kalyani group Company, launched
Induction Furnace route. Decarbonizing EAF / IF route India's First Green Steel brand - KALYANI FeRRESTATM in
is a low hanging fruit which can quickly help India to the month of Dec 2022 by the hands of Hon. Minister
emerge as global leader of green steel manufacturing. of Steel & Civil Aviation, Shri. Jyotiraditya Scindia.
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2.2.3 Outlook
Indian Steel industry's growth story has just begun!
Indian steel industry has shown resilient performance Some of the key growth drivers
amid global uncertainty. With 76 Kg of per capita steel
Automotive : Growth momentum in FY 2023 is
consumption as against a global average of 232 Kg,
expected to continue even in FY 2024 as PV & CV
India's growth story of steel production & consumption
driving the growth of Auto sales, while 2W & 3W
has just begun.
catching to pre-pandemic levels. As per various
India is the bright spot in global map of steel industry rating agencies, Automotive industry is expected to
when it comes to steel production. India's steel grow by 7-9% in FY 2024 although steep price hikes
production is continuously increasing and the country are expected from Apr 2023 on account of stricter
is witnessing newer capacities being added every year. emission norms i.e., Real Driving Emissions (RDE)
India's crude steel production is expected to grow at norms.
7.2% CAGR through FY 2031.
Renewable Energy : Every year ~12-15 GW of RE
As per World Steel Association's short-range outlook capacity is added in the country. As per India's
published in Apr 2023, it is estimated that India's steel Nationally Determined Contributions (NDC), India to
demand would grow at 7.3% & 6.2% in 2023 & 2024 reach 500 GW of RE power capacity by 2030 from
respectively. a current ~170 GW capacity. This gives a significant
opportunity for steel demand growth in the country.
Although exports in FY 2023 suffered due to export
duty of 15% on steel products levied by government in Infrastructure led by Government : Government has
the month of May 2022 till Nov 2022, a robust export announced a huge capital outlay of
growth in FY 2024 is likely because EU's energy crisis ` 10 lac crores (FY 2024) for large scale infrastructure
would continue amid the uncertain near-term results projects to be implemented over 5 years timeframe.
of Russia-Ukraine war and spillover effect of the war on Such infrastructure led economic growth would provide
steel consumption growth in these countries. significant boost to the steel demand in the country.
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3.0
Business Review
Operational Performance Backward Integration
FY 2022-23 was filled with challenging environment, The Company is committed to increase the
supply chain concerns, steep rise in few commodities, shareholder's value through its cost-effective business
increase in input raw material cost etc. However, structure, improvement in quality, continuously
better management of volatile prices, cost reduction enhancing energy efficiency etc. Initiatives in these
initiatives & quality improvement helped the Company areas have always helped the Company to stand out
to continue its profitable journey. among its peers.
Total Revenue from Operations for FY 2022-23 stood Continuing its journey towards excellence, the
at ` 18,994 Million as against ` 17,060 Million in Company had undertaken to construct state of the art
FY 2021-22 registering a growth of 11.34%. Revenue Non-recovery / Heat recovery, stamp charged Coke
from Operations includes Manufacturing Revenue of Oven with Modified wet Quenching of hot coke and
` 18,568 Million, Trading Revenue of ` 174 Million and 17-18 MW Captive Power Plant to be operated utilizing
other Operating Revenue of ` 252 Million. waste heat energy of flue gas generated from Coke
Profit before taxation for FY 2022-23 stood at ` 2,251 Oven as a move towards backward integration, to have
Million as against ` 3,258 Million in FY 2021-22. better control on the quality and to secure the supply
chain.
Manufacturing Revenue consists of sale of Rolled
Products, As Cast Blooms and Pig Iron. The Company It is a pleasure to inform you that the Company has
sold 234,261 tons of Rolled Products aggregating commissioned the Coke oven plant adjacent to its
` 17,429 Million, 11,103 tons of As Cast Blooms steel plant situated at Village Ginigera, Hospet Road,
aggregating ` 888 Million and 6,126 tons of Pig Iron Koppal District, Karnataka, with all its auxiliaries and
aggregating to ` 251 Million. utility systems and started its commercial production
from March 31, 2023. The production has already
Key Financial Ratios attained the designed capacity and the product quality
is amongst the best in the industry. The power plant
The Key Financial Ratios for FY 2022-23 and with the turbine - generator with all the balance of
FY 2021-22 alongwith explanation for significant plant (BOPs) with one of the two boilers has also been
changes (change of 25% or more, if any) are as follows : commissioned, while the second boiler to be added to
the steam circuit is going to be commissioned shortly.
Particulars 2022-23 2021-22 Change (%)
Debtors Turnover 4.56 4.41 3.60
Inventory Turnover 4.37 5.71 (23.50)
Interest Coverage
10.75 29.14 (63.11)*
Ratio
Current Ratio 2.41 2.16 11.65
Debt Equity Ratio 0.34 0.32 6.08
Operating Profit
13.33 19.87 (32.93)**
Margin (%)
Net Profit Margin (%) 8.91 14.50 (38.55)**
Net Worth
14,894.78 13,674.62 8.92
( ` in Million)
Return on Net
11.21 17.76 (36.87)**
Worth (%)
* Increase in utilization of bill discounting facility and short-term
borrowing.
** Decrease in profits due to higher cost of consumption, finance
charges and increase in foreign exchange fluctuation losses.
42
4.0
Internal Control & Human Resources

Internal Control Systems and their adequacy
Internal control systems are an integral part of any

organization to safeguard its assets & interests
and the Company always puts greater emphasis on
strengthening and reviewing its control systems in
place for continuous improvement.
The company has well established and effective system

of internal controls corresponding to its size, nature
of business & complexity of operations. The internal
control systems comprise of clearly defined authority
and responsibility levels across a
well-defined organizational structure. The system
is backed by comprehensive documented policies, Human Resources
guidelines and procedures governing the operations
of respective business areas and functions. These The Company believes that human capital is a critical
controls have been designed to safeguard the assets factor of success and hence constantly strives to
and interests of the Company & its stakeholders and strengthen its work ethics, work culture and align
to ensure compliance with policies, procedures and the workforce towards the common goal. Current
applicable regulations. workforce of the Company is rightly poised to navigate
through the current Volatile, Uncertain, Complex
The internal control system is supplemented by situation and to always maintain industry leading
internal audits and its review by the management quality standards while maintaining the highest service
on a periodic basis. In-house internal audit function levels.
is supported by external audit firms to conduct
comprehensive risk focused audits. Such audits ensure The Company continues to focus on upgrading
and evaluate the effectiveness of the internal control knowledge and skill levels among its employees
structure on a regular basis. The audit covers the through various Learning & Development, training
key processes across the functions, including plants, activities to enable them to move up the ladder. The
depots and other establishments. Suggestions to Company has well defined HR policies in place which
further strengthen the processes or make them more enables it to build a strong performance-oriented
effective are shared with the Audit Committee of culture, belongingness to work and commitment to
Directors along with status of action thereon. work.
As on March 31, 2023, the Company has 71

employees. 1,020 employees are on the rolls of Hospet
Steels Limited, which is a Joint Venture Company
formed with the specific purpose of managing and
operating the integrated steel making facility at
Ginigera, Karnataka in terms of Strategic Alliance
between the Company and Mukand Limited.
43
REPORT ON CORPORATE GOVERNANCE

CORPORATE GOVERNANCE PHILOSOPHY
Corporate Governance incorporates all of the good corporate practices, which ensures that a Company meets its
obligations, with the objective of optimizing stakeholders value and fulfilling its responsibilities to the community,
customers, employees, government and other societal segments. The Company endeavors good Corporate
Governance, focuses on enhancement of long-term value creation for all stakeholders and conducts the business in
accordance with the highest ethical standards and sound corporate governance practices.
The Company is in compliance with the requirements of the Corporate Governance stipulated under the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), as applicable for the Financial
Year 2022-23.
This chapter of the report, along with the information given under ‘Management Discussion and Analysis’ and
‘Shareholder Information’ constitutes the compliance report of the Company on Corporate Governance.
1. BOARD LEVEL ISSUES
COMPOSITION OF THE BOARD
The Board of Directors is the apex body for overseeing the Company’s overall functioning. The Board provides
strategic direction, leadership and oversees the management policies and their effectiveness, looking at long-term
interests of shareholders and other stakeholders. It is essential to have a well-balanced Board with a combination
of Executive, Non-Executive and Independent Directors. The present composition of the Board represents an
optimal mix of professionalism, knowledge and experience.
In terms of the Listing Regulations read with the Articles of Association of the Company, the strength of the
Board shall not be less than six nor more than fieen Directors. As on March 31, 2023, the Board of Directors
of Kalyani Steels comprised of Twelve Directors. The Board consists of the Chairman, who is a Promoter
Non-Executive Director, one Executive Director and ten Non-Executive Directors, of which six are Independent.
The composition of the Board is in conformity with Regulation 17 of the Listing Regulations. Details of composition
of the Board of Directors are given in Table 1.
NUMBER OF BOARD MEETINGS
During the year 2022-23, the Board of the Company met four times on May 12, 2022, August 8, 2022,
October 21, 2022 and January 27, 2023. All the meetings were held in such manner that the intervening period
between two consecutive meetings, was well within the maximum gap of one hundred and twenty days prescribed
under the Listing Regulations.
DIRECTORS’ ATTENDANCE RECORD AND DIRECTORSHIPS
Table 1 : The composition of the Board, the category of Directors and their attendance at the meetings of the Board
of Directors held during the year 2022-23 and at the last Annual General Meeting held on August 1, 2022 :
Name of the Director Category Particulars of Attendance

Number of Board Meetings Last AGM
Held Attended
Mr.B.N. Kalyani, Chairman Promoter Non-Executive 4 3 No
Mrs.Sunita B. Kalyani Non-Executive 4 4 Yes
Mr.Amit B. Kalyani Non-Executive 4 2 Yes
Mr.S.M. Kheny Non-Executive 4 4 No
Mr.B.B. Hattarki Independent 4 4 Yes
Mr.M.U. Takale Non-Executive 4 4 Yes
Mr.Arun P. Pawar Independent 4 4 Yes
Mr.Sachin K. Mandlik Independent 4 4 No
Mr.S.K. Adivarekar Independent 4 4 Yes
Mrs.Shruti A. Shah Independent 4 4 Yes
Amb.Ahmad Javed Independent 4 4 Yes
Mr.R.K. Goyal, Executive 4 4 Yes
Managing Director
44
Table 2 : The details of the number of Directorships held and Committee Memberships / Chairmanships held in
Indian Public Limited Companies, whether listed or not, including the Company, as on March 31, 2023 and details
of Directorships held in other Listed Companies :
Name of the Director In Indian Public Limited Companies, whether Directorships held in other
listed or not, including Kalyani Steels Limited Listed Companies
Directorships *Committee *Committee Name of the Type of
Memberships Chairmanships Company Directorship
Mr.B.N. Kalyani 7 3 — Bharat Forge Limited Executive
Chairman Automotive Axles Limited Non-Executive
Hikal Limited Non-Executive
BF Utilities Limited Non-Executive
Mrs.Sunita B. Kalyani 1 1 — — —
Mr.Amit B. Kalyani 8 2 — Bharat Forge Limited Executive
Hikal Limited Non-Executive
BF Utilities Limited Non-Executive
Kalyani Investment
Company Limited Non-Executive
BF Investment Limited Non-Executive
Schaeffler India Limited Independent
Mr.S.M. Kheny 3 1 1 — —
Mr.B.B. Hattarki 8 10 5 Automotive Axles Limited Independent
BF Utilities Limited Independent
Kalyani Investment
Company Limited Independent
BF Investment Limited Independent
Mr.M.U. Takale 4 1 1 BF Investment Limited Non-Executive
Mr.Arun P. Pawar 2 — — Phoenix Township Limited Non-Executive
Mr.Sachin K. Mandlik 1 — — — —
Mr.S.K. Adivarekar 5 5 2 BF Utilities Limited Independent
Hikal Limited Independent
Kalyani Investment
Mrs.Shruti A. Shah 5 3 — Kalyani Investment
Balkrishna Industries
Limited Independent
Jai Corp Limited Independent
Amb.Ahmad Javed 1 — — — —
Mr.R.K. Goyal 4 3 — Kalyani Investment
Managing Director Company Limited Non-Executive
* Memberships / Chairmanships of Audit Committee and Stakeholders Relationship Committee.
Certificate from M/s SVD & Associates, Practicing Company Secretaries, confirming that none of the Directors on
the Board of the Company have been debarred or disqualified from being appointed or continuing as Director of
the companies, by the Securities and Exchange Board of India (SEBI) / Ministry of Corporate Affairs (MCA) or any
such Statutory Authority, is enclosed as Annexure “A”.
INDEPENDENT DIRECTORS
The Independent Directors, who come from diverse fields of expertise have long standing experience and expert
knowledge in their respective fields and are of considerable value for the Company’s business and provide
appropriate blend of functional and industrial competence.
Based on the declarations received from the Independent Directors, the Board of Directors has confirmed that
the Independent Directors on the Board of the Company fulfill the conditions of independence specified in
Section 149(6) of the Companies Act, 2013 and Regulation 16(1)(b) of the Listing Regulations and are independent
of the Company’s management. The terms of appointment of the Independent Directors are disclosed on the
website of the Company viz. www.kalyanisteels.com/profile/policies.
45
BOARD PROCEDURE
Information Supplied to the Board
Among others, information supplied to the Board includes :
l Annual operating plans and budgets, capital budgets and any update thereof.
l Quarterly results for the Company.
l Minutes of meetings of Audit Committee and other committees of the Board.
l Appointment, remuneration and resignation of Directors.
l The information on recruitment and remuneration of senior officers just below the level of the Board, including
the appointment or removal of Chief Financial Officer and Company Secretary.
l Show cause, demand, prosecution notices and penalty notices, if any, which are materially important.
l Fatal or serious accidents, dangerous occurrences, any material effluent or pollution problems.
l Any material default in financial obligations to and by the Company or substantial non-payment for goods
sold by the Company.
l Any issue, which involves possible public or product liability claims of substantial nature, including any
judgment or order which, may have passed strictures on the conduct of the Company or taken an adverse
view regarding another enterprise that can have negative implications on the Company.
l Details of any Joint Venture / Collaboration Agreement.
l Transactions that involve substantial payment towards goodwill, brand equity or intellectual property.
l Significant labour problems and their proposed solutions. Any significant development in Human Resources
/ Industrial Relations front like signing of wage agreement, implementation of Voluntary Retirement Scheme
etc.
l Sale of investments, subsidiaries, assets which are material in nature and not in normal course of business.
l Making of loans and investments of surplus funds.
l Quarterly details of foreign exchange exposures and the steps taken by management to limit the risks of
adverse exchange rate movement, if material.
l Non-compliance of any regulatory, statutory or listing requirements and shareholders service such as
non-payment of dividend, delay in share transfer etc.
l General Notices of interest by Directors, declaration of Independent Directors at the time of appointment /
annual declaration.
l Formation / Reconstitution of Committees of the Board.
l Dividend declaration.
l Appointment and fixing remuneration, of the Auditors as recommended by the Audit Committee.
l Annual Financial Results of the Company, Auditors’ Report and the Report of the Board of Directors.
l Compliance certificates for all the laws as applicable to the Company.
l CSR activities carried out by the Company and expenditure made thereon.
The Board of Directors of the Company is presented with detailed notes, along with the agenda papers, well in
advance of each Board and Committee Meeting. All material information is incorporated in the agenda for facilitating
focused and meaningful discussions at the meeting. In special and exceptional circumstances, additional items
on the agenda are permitted with the consent of all the Independent Directors.
CEO AND CFO CERTIFICATION
The Managing Director and the Chief Financial Officer of the Company provide Annual Certification on financial
reporting and internal controls to the Board in terms of Regulation 17(8) of the Listing Regulations. The Managing
Director and the Chief Financial Officer also provide quarterly certification on financial results, while placing the
financial results before the Board in terms of Regulation 33(2)(a) of the Listing Regulations.
CODE OF CONDUCT
The Company has adopted a Code of Conduct for Directors and Senior Management of the Company. The Code
has been circulated to all the members of the Board and Senior Management and the same is available on the
Company’s website. (Web-link : http://www.kalyanisteels.com/profile/policies/)
The Board members and the senior management have affirmed the compliance with the Code. A declaration to
that effect signed by the Managing Director of the Company is contained in this Annual Report.
46
COMMITTEES OF THE BOARD

As on March 31, 2023, the Company has Audit Committee, Stakeholders Relationship Committee, Nomination
and Remuneration Committee, Corporate Social Responsibility Committee, Risk Management Committee, Finance
Committee and Share Transfer Committee. The Board Committees are set up and reconstituted, as and when
necessary, under the formal approval of the Board to carry out clearly defined roles which are considered to be
performed by the members of the respective Board Committees. The Company’s guidelines relating to Board
Meetings are applicable to the Committee Meetings, as far as may be practicable. Minutes of the proceedings
of the Committee Meetings are placed before the Board Meeting for consideration and noting. The Company
Secretary acts as the Secretary of all Committees.
AUDIT COMMITTEE
As on March 31, 2023, the Audit Committee comprised of four members viz. Mr.S.K. Adivarekar, Chairman and
Mr.B.N. Kalyani, Mr.B.B. Hattarki and Mrs.Shruti A. Shah as other members of the Committee. All the members
have accounting and finance management expertise.
The Annual General Meeting of the Company held on August 1, 2022 was attended by the Chairman of the
Audit Committee, Mr.S.K. Adivarekar, to answer the shareholders’ queries.
The representatives of the Statutory Auditors, Internal Auditors and remaining Board Members are permanent
invitees to the Audit Committee Meetings.
During the year 2022-23, Audit Committee met four times on May 12, 2022, August 8, 2022, October 21,
2022 and January 27, 2023 and there were no instances where the Board had not accepted any of the
recommendations of the Audit Committee. Particulars relating to the attendance at the Audit Committee
meetings held during the year are given below :
Name of the Director Category Number of Meetings held Number of Meetings attended
Mr.S.K. Adivarekar Independent 4 4
Chairman
Mr.B.N. Kalyani Promoter Non-Executive 4 3
Mr.B.B. Hattarki Independent 4 4
Mrs.Shruti A. Shah Independent 4 4
Role / Terms of reference of the Audit Committee

l Oversight of the Company’s financial reporting process and the disclosure of its financial information to ensure
that the financial statement is correct, sufficient and credible.
l Recommendation for appointment, remuneration and terms of appointment of Auditors of the Company.
l Approval of payment to Statutory Auditors for any other services rendered by the Statutory Auditors.
l Reviewing, with the management, the annual financial statements and auditor’s report thereon before
submission to the Board for approval, with particular reference to :
Ø Matters required to be included in the Director’s Responsibility Statement to be included in the Board’s
Report in terms of clause (c) of sub-section 3 of Section 134 of the Companies Act, 2013.
Ø Changes, if any, in accounting policies and practices and reasons for the same.
Ø Major accounting entries involving estimates based on the exercise of judgment by management.
Ø Significant adjustments made in the financial statements arising out of audit findings.
Ø Compliance with listing and other legal requirements relating to financial statements.
Ø Disclosure of any related party transactions.
Ø Modified opinion(s) in the dra audit report, if any.
l Reviewing, with the management, the quarterly financial statements before submission to the Board for
approval.
l Reviewing, with the management, the statement of uses / application of funds raised through an issue
(public issue, rights issue, preferential issue etc.), the statement of funds utilized for the purposes other than
those stated in the offer document / prospectus / notice and the report submitted by the monitoring agency
monitoring the utilization of proceeds of a public or rights issue or preferential issue or qualified institution
placement and making appropriate recommendations to the Board to take up steps in this matter.
l Reviewing and monitoring the auditor’s independence and performance and effectiveness of audit process.
47
l Approval or any subsequent modification of transactions of the Company with related parties.
l Scrutiny of inter-corporate loans and investments.
l Valuation of undertakings or assets of the Company, wherever it is necessary.
l Evaluation of internal financial controls and risk management systems.
l Reviewing, with the management, performance of statutory and internal auditors, adequacy of the internal
control systems.
l Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit
department, staffing and seniority of the official heading the department, reporting structure coverage and
frequency of internal audit.
l Discussions with internal auditors on any significant findings and follow up thereon.
l Reviewing the findings of any internal investigations by the internal auditors into matters where there is
suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the
matter to the Board.
l Discussions with statutory auditors before audit commences, about the nature and scope of audit as well as
post-audit discussion to ascertain any area of concern, if any.
l To look into the reasons for substantial defaults in the payment to the depositors, debenture holders,
shareholders (in case of non-payment of declared dividends) and creditors.
l To review the functioning of the whistle blower mechanism.
l Approval of appointment of Chief Financial Officer aer assessing the qualifications, experience and background
etc. of the candidate.
l Reviewing the utilization of loans and / or advances from / investment by the Company in the subsidiary
exceeding ` 100 crore or 10% of the asset size of the subsidiary, whichever is lower including existing
loans / advances / investments.
l Consider and comment on rationale, cost-benefits and impact of schemes involving merger, demerger,
amalgamation etc., on the Company and its shareholders.
l Carrying out any other function as is mentioned in the terms of reference of the Audit Committee.
Review of Information by the Audit Committee :
l Management discussion and analysis of financial condition and results of operations.
l Management letters / letters of internal control weaknesses issued by the statutory auditors.
l Internal audit reports relating to internal control weaknesses.
l The appointment, removal and terms of remuneration of the chief internal auditors.
Powers of Audit Committee :
l To investigate any activity within its terms of reference.
l To seek information from any employee.
l To obtain outside legal or other professional advice.
l To secure attendance of outsiders with relevant expertise, if it considers necessary.
STAKEHOLDERS RELATIONSHIP COMMITTEE
As on March 31, 2023, Stakeholders Relationship Committee comprised of four members viz. Mr.S.M. Kheny,
Chairman, Mrs.Sunita B. Kalyani and Mr.B.B. Hattarki, Directors and Mr.R.K. Goyal, Managing Director.
The Annual General Meeting of the Company held by way of personal attendance, on August 1, 2022 was not
attended by Mr.S.M. Kheny, Chairman of the Stakeholders Relationship Committee, as he had tested COVID positive.
Mr.R.K. Goyal, Managing Director responded to the Stakeholders queries.
48
During the year 2022-23, the Stakeholders Relationship Committee met four times on May 11, 2022,
August 1, 2022, October 20, 2022 and January 25, 2023. Particulars relating to the attendance at the Stakeholders
Relationship Committee meetings held during the year are given below :
Mr.S.M. Kheny, Chairman Non-Executive 4 3
Mrs.Sunita B. Kalyani Non-Executive 4 4
Mr.R.K. Goyal Executive 4 4
Role of the Stakeholders Relationship Committee :

l Resolving the grievances of the security holders of the Company including complaints related to transfer /
transmission of shares, non-receipt of annual report, non-receipt of declared dividends, issue of new / duplicate
certificates, general meetings etc.
l Review of measures taken for effective exercise of voting rights by shareholders.
l Review of adherence to the service standards adopted by the Company in respect of various services being
rendered by the Registrar & Transfer Agent.
l Review of the various measures and initiatives taken by the Company for reducing the quantum of unclaimed
dividends and ensuring timely receipt of dividend warrants / annual reports / statutory notices by the
shareholders of the Company.
Compliance Officer
Mrs.Deepti R. Puranik, Company Secretary is the Compliance Officer.
Status of Investors’ Complaints
The number and nature of complaints received and redressed during the Financial Year 2022-23 are as follows :
Nature of Complaint No. of Complaints No. of Complaints No. of Complaints pending
received redressed as on March 31, 2023
Dematerialization of Shares 3 3 —
Non-receipt of Corporate Benefits 2 2 —
The status of complaints is also reported to the Board of Directors, as an agenda item.
Designated Exclusive E-Mail ID
The Company has also provided separate E-mail ID : investor@kalyanisteels.com exclusively for investor services.
NOMINATION AND REMUNERATION COMMITTEE
As on March 31, 2023, Nomination and Remuneration Committee comprised of three members viz.
Mr.S.K. Adivarekar, Chairman, Mr.Amit B. Kalyani and Mr.B.B. Hattarki.
During the year 2022-23, the Nomination and Remuneration Committee met four times on May 11, 2022,
August 5, 2022, October 14, 2022 and January 25, 2023. Particulars relating to the attendance at the Nomination
and Remuneration Committee meetings held during the year are given below :
Mr.S.K. Adivarekar, Chairman Independent 4 4
Mr.Amit B. Kalyani Non-Executive 4 4
Role of Nomination and Remuneration Committee :
l Formulation of the criteria for determining qualifications, positive attributes and independence of Directors
and recommend to the Board a policy, relating to the remuneration of the Directors, key managerial personnel
and other employees.
l For every appointment of an independent director on the Board, evaluate the balance of skills, knowledge and
experience on the Board and on the basis of such evaluation, prepare a description of the role and capabilities
required of an independent director. The person recommended to the Board for appointment as an independent
director shall have the necessary capabilities identified in such description.
49
l Formulation of criteria for evaluation of performance of Independent Directors and the Board.
l Devising a policy on Board diversity.
l Identifying the persons who are qualified to become Directors and who may be appointed in senior management
in accordance with the criteria laid down and recommend to the Board their appointment and removal.
l Whether to extend or continue the term of appointment of the independent director, on the basis of the report
of performance evaluation of independent directors.
l Recommend to the Board, all remuneration, in whatever form, payable to Senior Management.
Performance Evaluation Criteria for Directors

The Nomination and Remuneration Committee has devised criteria for performance evaluation of Directors including
independent Directors. The said criteria provide for certain parameters like seniority / experience, number of years
on the Board, Board / Committee meetings attended, Director’s position on the Company’s Board Committees,
other relevant factors and performance of the Company.
Directors with materially pecuniary or business relationship with the Company

There have been no materially relevant pecuniary transactions or relationship between the Company and its
Non-Executive and / or Independent Directors during the Financial Year 2022-23.
Policy on Board Diversity and Nomination and Remuneration Policy

The Board on recommendation of the Nomination and Remuneration Committee, has approved Policy on Board
Diversity and Nomination and Remuneration Policy and the same are available on the Company’s website.
(Web-link : http://www.kalyanisteels.com/profile/policies/). These Policies provides for criteria for determining
qualifications, positive attributes & independence of director as well as remuneration policy for directors, key
managerial personnel and other employees, with an objective to retain, motivate and promote talent and to
ensure long term sustainability of talented managerial persons and create competitive advantage.
Skills / Expertise / Competencies for the Board of Directors

The following is the list of core Skills / Expertise / Competencies identified by the Board of Directors for the Board
members, in the context of the Company’s business and that the said skills are available with the Board members :
Name of the Director Industry Technology Strategy Sales Financial Legal and Corporate
Knowledge / and and and Skills Regulatory Governance
experience Innovations Planning Marketing knowledge and Risk
Management
Mr.B.N. Kalyani, Chairman “ü ü ü ü ü ü ü

Mrs.Sunita B. Kalyani “ü ü ü ü
Mr.Amit B. Kalyani ü ü ü “ü ü ü ü
Mr.S.M. Kheny “ü ü ü ü
Mr.B.B. Hattarki “ü ü ü ü
Mr.M.U. Takale “ü ü ü ü
Mr.Arun P. Pawar “ü ü ü ü ü“
Mr.Sachin K. Mandlik ü“ ü “ ü ü ü
Mr.S.K. Adivarekar ü“ ü “ “ü ü ü
Mrs.Shruti A. Shah ü“ ü “ “ü ü ü
Amb.Ahmad Javed ü “ ü “ “ü ü ü
Mr.R.K. Goyal, ü ü ü ü ü ü ü
Managing Director “ “ “ “ “ “ “
50
Remuneration to Non-Executive Directors

The Non-executive Directors are paid sitting fees for attending each meeting of the Board and of the Committees
thereof as specified by the Board. Each of the Non-executive Directors is paid sitting fee of ` 2,000/- per meeting
attended by him. The Non-Executive Directors also draw remuneration in the form of commission, upto an
aggregate amount not exceeding 1% of the net profits of the Company for the year, as may be decided by the
Board of Directors from time to time.
Payments to Non-Executive Directors are decided based on multiple criteria of seniority / experience, number
of years on the Board, Board / Committee meetings attended, Director’s position on the Company’s Board
Committees, other relevant factors and performance of the Company.
Remuneration to Managing Director, Key Managerial Personnel and other Employees
The Remuneration to Managing Director shall take into account the Company’s overall performance, Managing
Director’s contribution for the same & trends in the industry in general, in a manner which will ensure and support
a high-performance culture.
The Managing Director is paid remuneration as per the terms approved by the Nomination and Remuneration
Committee and the Board and confirmed by the Shareholders of the Company. The remuneration of the Managing
Director comprises of Salary, Commission and Perquisites besides contributions to provident fund, gratuity and
leave encashment facility. The Company does not have any stock option scheme. The tenure of the office of the
Managing Director is 5 (Five) years. The Board has discretion to decide notice period of the Managing Director.
There is no separate provision for payment of severance fees.
Remuneration to Key Managerial Personnel and Senior Management involves a balance between fixed and incentive
pay reflecting short and long term performance objectives, appropriate to the working of the Company and its
goals. The Remuneration will be such, so as to ensure that the relationship of remuneration to performance is
clear and meets appropriate performance benchmarks.
Table 3 : The details of the remuneration package of Directors during the year 2022-23, their shareholding in
the Company and relationship with other directors, if any :
(` in Million)
Name of the Director Relationship Sitting fees Salaries and Commission Total No. of Shares
with other # perquisites ## held
Directors
Mr.B.N. Kalyani * 0.03 — 7.00 7.03 1,118

Mrs.Sunita B. Kalyani ** 0.02 — 5.00 5.02 54,650
Mr.Amit B. Kalyani *** 0.01 — 6.00 6.01 31,644
Mr.S.M. Kheny **** 0.01 — 0.60 0.61 14
Mr.B.B. Hattarki None 0.07 — 0.80 0.87 —
Mr.M.U. Takale None 0.01 — 0.60 0.61 2,500
Mr.Arun P. Pawar None 0.01 — 0.60 0.61 —
Mr.Sachin K. Mandlik None 0.01 — 0.80 0.81 —
Mr.S.K. Adivarekar None 0.03 — 0.80 0.83 —
Mrs.Shruti A. Shah None 0.02 — 0.80 0.82 —
Amb.Ahmad Javed None 0.01 — 0.80 0.81 —
Mr.R.K. Goyal None N.A. 71.47 45.00 116.47 —
# Sitting fees include payment of fees for attending Board and Committee Meetings.
## Commission proposed and payable aer approval of accounts by members of the Company in the ensuing Annual General
Meeting (AGM)
* Husband of Mrs.Sunita B. Kalyani and Father of Mr.Amit B. Kalyani
** Wife of Mr.B.N. Kalyani and Mother of Mr.Amit B. Kalyani
*** Son of Mr.B.N. Kalyani and Mrs.Sunita B. Kalyani
**** Brother of Mrs.Sunita B. Kalyani
None of the employees are related to any of the Directors of the Company.
51
CORPORATE SOCIAL RESPONSIBILITY COMMITTEE

As on March 31, 2023, Corporate Social Responsibility (CSR) Committee comprises of four members viz.
Mr.B.B. Hattarki, Chairman, Mrs.Sunita B. Kalyani, Mr.M.U. Takale and Mr.R.K. Goyal, Managing Director as members.
During the year 2022-23, the Corporate Social Responsibility Committee met twice on May 11, 2022 and
January 25, 2023. Particulars relating to the attendance at the CSR Committee meetings held during the year
are given below :
Mr.B.B. Hattarki, Chairman Independent 2 2
Mrs.Sunita B. Kalyani Non-Executive 2 2
Mr.M.U. Takale Non-Executive 2 2
Terms of Reference :
l Formulation and recommendation to the Board, CSR Policy, which shall indicate the activities to be undertaken
by the Company, in the areas or subject, as specified in Schedule VII of the Companies Act, 2013.
l Recommend the amount of expenditure to be incurred on the CSR activities.
l Formulate and recommend to the Board, an Annual Action Plan in pursuance of CSR Policy, which shall include :
Ø List of CSR Projects / programmes to be undertaken in the areas or subject specified in Schedule VII of the
Companies Act, 2013.
Ø Manner of execution of such Projects / programmes.
Ø Modalities of utilization of funds and implementation schedules of such Projects / programmes.
Ø Monitoring and reporting mechanism for such Projects / programmes.
Ø Details of need and impact assessment, if any, for the projects undertaken by the Company.
l Monitor CSR Policy of the Company from time to time.
The Committee’s core responsibility is to assist the Board in discharging its social responsibility by formulating and
monitoring implementation of the framework of the CSR Policy along with an Annual Action Plan. The CSR Policy
of the Company is available on the Company’s website. (Web-link : http://www.kalyanisteels.com/profile/policies/)
RISK MANAGEMENT COMMITTEE
The Risk Management Policy of the Company, which is approved by the Risk Management Committee (‘RMC’) and the
Board of Directors, provides the framework for identification of internal and external risks along with prioritization of
risks based on the scanning of the external environment and continuous monitoring of internal risk factors. The said
framework identifies, evaluates, manages and reports risks arising from the Company’s operations and exogenous
factors.
As on March 31, 2023, Risk Management Committee comprised of three members viz. Mr.B.B. Hattarki, Chairman,
Mr.S.K. Adivarekar, Director and Mr.R.K. Goyal, Managing Director as other members of the Committee.
During the year 2022-23, the Risk Management Committee met twice on August 30, 2022, and February 13, 2023.
Particulars relating to the attendance at the Risk Management Committee meetings held during the year are given
below :
Mr.B.B. Hattarki, Chairman Independent 2 2
Mr.S.K. Adivarekar Independent 2 2
Role of the Risk Management Committee :
l To formulate a detailed Risk Management Policy which shall include :
Ø A framework for identification of internal and external risks specifically faced by the Company, in particular
including financial, operational, sectoral, sustainability (particularly Environmental, Social and Governance
(ESG) related risks), information, cyber security risks or any other risks as may be determined by the
Committee.
Ø Measures for risk mitigation including systems and processes for internal control of identified risks.
Ø Business continuity plan.
52
l To ensure that appropriate methodology, processes and systems are in place to monitor and evaluate risks
associated with the business of the Company.
l To monitor and oversee implementation of the risk management policy, including evaluating the adequacy of
risk management systems.
l To periodically review the risk management policy, at least once in two years, by considering the changing
industry dynamics and evolving complexity.
l To keep the Board of Directors informed about the nature and content of its discussions, recommendations
and actions to be taken.
l The appointment, removal and terms of remuneration of the Chief Risk Officer (if any).
l To coordinate its activities with other committees, in instances where, there is any overlap with activities of
such committees, as per the framework laid down by the Board of Directors.
FINANCE COMMITTEE
As on March 31, 2023, Finance Committee comprises of three Directors viz. Mr.B.N. Kalyani, Chairman,
Mr.B.B. Hattarki, Director and Mr.R.K. Goyal, Managing Director.
During the year 2022-23, the Finance Committee met nine times on May 27, 2022, June 27, 2022, July 19,
2022, August 26, 2022, September 16, 2022, September 29, 2022, November 14, 2022, February 3, 2023 and
March 20, 2023.
Particulars relating to the attendance at the Finance Committee meetings held during the year are given below :
Mr.B.N. Kalyani, Chairman Promoter Non-Executive 9 5
Terms of Reference :
l To avail credit facilities from banks / financial institutions, place deposits with banks upto the limits specified
by the Board.
l To open and close Bank Accounts of the Company and to authorize employees for operation of bank accounts
of the Company.
l Authorization to employees to execute / sign returns, submissions, documents etc. on behalf of the Company
and to appear before various statutory authorities.
l Such other matters as may be delegated by the Board from time to time.
SHARE TRANSFER COMMITTEE

The Company has constituted the Share Transfer Committee, to approve requests for share transmissions,
transposition, correction / deletion of name and issue of duplicate certificates etc. As on March 31, 2023, the
Committee comprises of Mr.B.N. Kalyani, Chairman, Mr.B.B. Hattarki, Director and Mr.R.K. Goyal, Managing Director.
During the year 2022-23, the Share Transfer Committee met eight times on April 21, 2022, May 17, 2022,
June 17, 2022, July 19, 2022, October 12, 2022, October 31, 2022, December 7, 2022 and March 24, 2023. The
particulars relating to the attendance at the Share Transfer Committee meetings held during the year are given
below :
Mr.B.N. Kalyani, Chairman Promoter Non-Executive 8 5
53
INDEPENDENT DIRECTORS’ MEETING

During the year under review, the Independent Directors met on January 25, 2023, inter alia to discuss :
l Evaluation of the performance of Non-Independent Directors and Board of Directors, as a whole.
l Evaluation of the performance of the Chairperson of the Company, taking into account the views of Executive
Directors and Non-Executive Directors.
l Evaluation of the quality, quantity and timeliness of flow of information between the Company Management
and the Board of Directors, that is necessary for the Board of Directors to effectively and reasonably perform
their duties.
All the Independent Directors except Mr.Sachin K. Mandlik were present at the meeting. The Directors expressed
their satisfaction with the evaluation process.
2. MANAGEMENT
MANAGEMENT DISCUSSION AND ANALYSIS
This Annual Report has a detailed chapter on Management Discussion and Analysis.
DISCLOSURES
RELATED PARTY TRANSACTIONS
All transactions entered into with related parties during the year were in ordinary course of business and have
been approved by the Audit Committee. The Board has approved a policy for related party transactions which
has been uploaded on the Company’s website at the link : http://www.kalyanisteels.com/profile/policies/
None of the transactions with any of the related parties were in conflict with the interest of the Company. Attention
of the members is drawn to the disclosure set out in Note 38 to Financial Statements forming part of the Annual
Report.
DISCLOSURES BY MANAGEMENT TO THE BOARD
All disclosures relating to financial and commercial transactions where Directors may have a potential interest
are provided to the Board and the interested Directors do not participate in the discussions nor do they vote on
such matters.
During the year 2022-23, no Loans or Advances have been advanced by the Company, to the firms / companies
in which Directors of the Company are interested.
WHISTLE BLOWER POLICY
The Company promotes ethical behavior in all its business activities and has put in place a mechanism for reporting
illegal / unethical behavior. The Company has adopted Whistle Blower Policy and has established necessary vigil
mechanism for employees / directors, wherein they can report the instances of unethical behavior, actual or
suspected fraud or any violation of the Code of Conduct and / or laws applicable to the Company, report the
instances of leakage of unpublished price sensitive information and seek redressal. This mechanism provides
for direct access to the Chairperson of the Audit Committee and appropriate protection to the genuine Whistle
Blower, who avails of the mechanism. The Whistle Blower Policy / Vigil Mechanism has been disclosed on the
website of the Company. (Web-link : http://www.kalyanisteels.com/profile/policies/)
DIVIDEND DISTRIBUTION POLICY
Pursuant to Regulation 43A of the Listing Regulations, the Company had adopted the Dividend Distribution Policy
which is available on the Company’s website. (Web-link : https://www.kalyanisteels.com/profile/policies/ )
SUBSIDIARY COMPANY
As on March 31, 2023, the Company does not have any subsidiary company. However, the Company has policy for
determining material subsidiary which is available on the Company’s website. (Web-link : http://www.kalyanisteels.
com/profile/policies/)
INDEPENDENT DIRECTORS’ TRAINING AND INDUCTION
The Independent Directors are provided with necessary documents / brochures and reports to enable them
to familiarize with the Company’s business, procedures and practices. Along with role, function, duties and
responsibilities expected from Director, the Director is also explained in detail the compliances required from
him under the Companies Act, 2013, the Listing Regulations and other relevant regulations and his affirmation
is taken with respect to the same.
Further, with a view to familiarize Director with the Company’s operations, plant visit is scheduled and the
Managing Director also has one-to-one discussion with the newly appointed Director. Regular Updates regarding
the operations of the Company are also provided to them from time to time.
These initiatives help the Director to understand the Company, its business and the regulatory framework in which
the Company operates and equips him to effectively fulfill his role as a Director of the Company. The details of
this familiarization programme are available on the website of the Company. (Web-link : http://www.kalyanisteels.
com/profile/policies/)
54
DISCLOSURE IN RELATION TO THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION,

PROHIBITION AND REDRESSAL) ACT, 2013
In terms of provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal)
Act, 2013 (“the Act”), the Company has formulated a Policy for prevention, prohibition and redressal of Sexual
Harassment of Women at Workplace. All women employees (permanent, temporary, contractual and trainees),
as well as any women visiting the Company’s office premises are covered under the Policy. During the year under
review, no complaint was filed pursuant to the said Act.
3. SHAREHOLDERS
DISCLOSURES REGARDING APPOINTMENT OR RE-APPOINTMENT OF DIRECTORS
Mrs.Sunita B. Kalyani and Mr.Amit B. Kalyani, Directors of the Company are retiring by rotation at the ensuing
Annual General Meeting and being eligible, offer themselves for re-appointment.
Details of Directors to be re-appointed, are given below :
l Mrs.Sunita B. Kalyani, born on April 18, 1951, was the Chairperson of Kalyani Thermal Systems Limited (now
named as Kalyani Technoforge Limited), a Kalyani Group Company, engaged in the manufacture of forgings and
machined components, sub-assemblies and assemblies. She is also actively involved in all the CSR Activities
and Charitable Foundations of the Kalyani Group. Mrs.Sunita B. Kalyani holds 54,650 Equity Shares of ` 5/-
each of the Company as on March 31, 2023.
l Mr.Amit B. Kalyani, born on July 26, 1975, aer having his initial education in Pune, graduated in Mechanical
Engineering from Bucknell University, Pennsylvania, U.S.A. He initially worked with Kalyani Steels Limited,
followed by other companies within the group. He then joined Bharat Forge Limited in 1999 as Vice President
and Chief Technology Officer. He was also instrumental in strategizing and execution of the several acquisitions
that the Kalyani group had in Germany.
Mr.Amit B. Kalyani is currently a Deputy Managing Director of Bharat Forge Limited. He also takes care of the
overall group strategy and is responsible for the expansion of steel business and driving the infrastructure
foray of the group. Mr.Amit B. Kalyani holds 31,644 Equity Shares of ` 5/- each of the Company as on
March 31, 2023.
The details of Directorships and Committee Memberships held in other Public Limited Companies are as
follows :
Other Directorships Committee Memberships
Name of the Company Name of the Company & Committee
1. Bharat Forge Limited 1. Bharat Forge Limited
2. Hikal Limited Corporate Social Responsibility Committee - Member
3. BF Utilities Limited Risk Management Committee - Member
4. Kalyani Investment Company Limited ESG Committee - Chairman
5. BF Investment Limited 2. BF Utilities Limited
6. Schaeffler India Limited Audit Committee- Member
7. BF-NTPC Energy Systems Limited Nomination and Remuneration Committee - Member
Corporate Social Responsibility Committee - Member
Risk Management Committee - Member
3. Kalyani Investment Company Limited
Nomination and Remuneration Committee - Member
4. BF Investment Limited
Risk Management Committee - Member
5. Schaeffler India Limited
Audit Committee - Member
COMMUNICATION TO SHAREHOLDERS
Kalyani Steels puts all the vital information about the Company and its performance, including quarterly results,
official announcements and communication to the investors and analysts on its website www.kalyanisteels.com
regularly for the benefit of the public at large.
During the year, quarterly, half yearly, annual financial results are published in leading newspapers such as
Business Standard (All Editions) and Loksatta (Pune).
1. Website
The Company’s website contains a separate dedicated section titled “Investors”. The basic information about
the Company, as called for in terms of Regulation 46 of the Listing Regulations, is provided on the Company’s
website www.kalyanisteels.com and the same is updated from time-to-time.
55
2. Filing with Stock Exchanges

Financial Results / other information to Stock Exchanges is filed electronically on BSE Listing Centre for BSE
and on NSE Electronic Application Processing System (NEAPS) for NSE.
3. Annual Report
Annual Report containing, inter alia, Audited Financial Statements, Directors’ Report, Independent Auditor’s
Report and other important information, is circulated to members and others entitled thereto in electronic
/ physical form. The Management Discussion and Analysis (MDA) Report and Business Responsibility and
Sustainability Report (BRSR) forms part of the Annual Report and the same is also displayed on the Company’s
website www.kalyanisteels.com
Letters received from shareholders are acted upon and replied promptly.
CREDIT RATING FROM CARE RATINGS LIMITED
Care Ratings Limited have assigned following rating to the Company’s bank facilities :
Facilities Rating
Long Term Bank Facilities CARE AA Stable (Reaffirmed)
(Double A; Outlook : Stable)
Short Term Bank Facilities CARE A1+ (Reaffirmed)
(A One Plus)
Commercial Paper CARE A1+ (Reaffirmed)
(A One Plus)
FEES PAID TO STATUTORY AUDITORS
The Company has paid the fees of ` 4.53 Million to Kirtane and Pandit LLP, Chartered Accounts, Pune (Firm
Registration No.105215W / W100057) during the year 2022-23.
DETAILS OF NON-COMPLIANCE
Kalyani Steels has complied with all the requirements of regulatory authorities. No penalties were imposed on
the Company by Stock Exchanges or SEBI or any statutory authority on any matter relating to the capital market
during the period under report.
GENERAL BODY MEETINGS
Annual General Meeting(s) :
The date, time and venue for the last 3 (Three) Annual General Meetings are given below :
Date Time Venue Special Resolutions Passed

August 1, 2022 11.00 a.m. Registered Office 1. Re-Appointment of Mr.B.N. Kalyani as
of the Company at Director of the Company.
Mundhwa, Pune – 2. Re-Appointment of Mr.S.M. Kheny as
411 036 Director of the Company.
3. Re-Appointment of Mr.Sachin K. Mandlik as
an Independent Director of the Company.
4. Re-Appointment of Mr.Shrikrishna K.
Adivarekar as an Independent Director of
the Company.
5. Re-Appointment of Amb.Ahmad Javed as an
Independent Director of the Company.
September 3, 2021 11.00 a.m. Held through Video —
Conferencing (VC) /
Other Audio Visual
Means (OAVM)
September 25, 2020 11.00 a.m. Held through Video —
Conferencing (VC) /
Other Audio Visual
Means (OAVM)
56
POSTAL BALLOT
No resolution was put through postal ballot during the year 2022-23.
None of the businesses proposed to be transacted in the ensuing Annual General Meeting require passing of
special resolution conducted through postal ballot.
COMPLIANCE WITH MANDATORY AND DISCRETIONARY REQUIREMENTS

The Company is fully compliant with the applicable mandatory requirements of Listing Regulations. The Company
has adopted the following non-mandatory requirements of Listing Regulations.
1) Unmodified Opinion(s) in Audit Report
The Company is in the regime of financial statements with unqualified / unmodified Audit Opinion.
2) Reporting of Internal Auditors
The Internal Auditors of the Company report to the Audit Committee periodically to ensure independence of
the Internal Audit function.
SHAREHOLDER INFORMATION
COMPANY REGISTRATION DETAILS

The Company is registered in the State of Maharashtra, India. The Corporate Identity Number (CIN) allotted to
the Company by the Ministry of Corporate Affairs is L27104MH1973PLC016350.
ANNUAL GENERAL MEETING
Day, Date and Time : Friday, August 18, 2023 at 11.00 a.m.
Mode of Meeting : Through Video Conferencing (“VC”) / Other Audio Visual Means (“OAVM”)
FINANCIAL CALENDAR
1st April to 31st March
BOOK CLOSURE
The Books will be closed from Saturday, August 12, 2023 to Friday, August 18, 2023 (both days inclusive)
DIVIDEND PAYMENT DATE
Dividend of ` 10 /- per Equity Share of ` 5/- each (i.e. 200%) for FY 2022-23, recommended by the Board, if
approved by the members, shall be paid on or before Wednesday, August 30, 2023.
EQUITY SHARES IN SUSPENSE ACCOUNT
In compliance with Regulation 39(4) of the Listing Regulations, the Company has transferred all the unclaimed
21,753 Equity Shares in respect of 267 shareholders into Unclaimed Suspense Account. The voting rights on the
said shares shall remain frozen till the rightful owners of such shares claim the shares.
During the year, based on the valid claims made by 5 (Five) shareholders / their legal heirs, the Company transferred
695 Equity Shares from the Unclaimed Suspense Account to the respective shareholders / their legal heirs.
LISTING
The Equity Shares of the Company are listed on :
1) National Stock Exchange of India Limited (NSE), Exchange Plaza, Bandra Kurla Complex, Bandra (E),
Mumbai – 400 051
2) BSE Limited (BSE), Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai – 400 001
All annual listing fees due during the year have been paid.
STOCK CODES
NSE : KSL
BSE : 500235
Equity ISIN : INE907A01026
57
STOCK DATA
Table below gives the monthly high and low prices and volumes of trading of Equity Shares of the Company at
National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) for the year 2022-23 :
NSE BSE
Month & Year High (`) Low (`) Volume (No. of High (`) Low (`) Volume (No. of
Shares Traded) Shares Traded)
April, 2022 339.90 297.05 833,435 339.70 301.85 100,476
May, 2022 314.10 273.20 757,969 314.95 269.80 100,583
June, 2022 318.00 263.10 342,864 319.80 263.70 51,968
July, 2022 314.90 275.55 339,123 312.60 275.75 46,393
August, 2022 324.35 281.15 902,706 324.00 278.25 103,362
September, 2022 342.85 296.15 881,776 341.95 296.60 81,078
October, 2022 307.95 283.70 432,840 308.80 286.95 39,108
November, 2022 334.25 294.00 709,108 334.95 293.25 83,957
December, 2022 392.00 322.20 3,070,026 390.00 323.60 300,063
January, 2023 387.65 323.00 1,192,451 387.85 320.40 98,833
February, 2023 340.35 301.05 516,805 339.75 301.85 69,847
March, 2023 323.50 281.00 645,971 324.00 281.10 55,580
STOCK PERFORMANCE
Chart ‘A’ plots the movement Kalyani Steels Equity Shares adjusted closing prices compared to the BSE Sensex.
Chart ‘A’ : Kalyani Steels Share Performance Vs. BSE Sensex
Note : Share prices of Kalyani Steels and BSE Sensex have been indexed to 100 as on first working day of Financial
Year 2022-23 i.e. April 1, 2022.
58
REGISTRAR AND TRANSFER AGENTS AND SHARE TRANSFER SYSTEM

M/s. Link Intime India Private Limited, having Registered Office address at C-101, 1st Floor, 247 Park, Lal Bahadur
Shastri Marg, Vikhroli (West), Mumbai – 400 083 and Pune Branch Office at Block No.202, Akshay Complex, 2nd
Floor, Off Dhole Patil Road, Near Ganesh Mandir, Pune – 411 001 are the Registrar and Transfer Agents of the
Company and carry out the share transfer work on behalf of the Company. The Equity Shares of the Company
are traded on the Stock Exchanges compulsorily in demat mode.
PATTERN OF SHAREHOLDING BY OWNERSHIP AS ON MARCH 31, 2023
Category of the Shareholder No. of Equity Shares held Shareholding %
Promoters 28,244,202 64.70
Mutual Funds 3,753,285 8.60
Financial Institutions / Banks 267 —
Foreign Portfolio Investors 1,259,544 2.89
Bodies Corporate 646,475 1.48
NRIs 252,448 0.58
Indian Public 9,496,839 21.75
TOTAL 43,653,060 100.00
PATTERN OF SHAREHOLDING BY SHARE CLASS AS ON MARCH 31, 2023

Category (Shares) No. of Shareholders No. of Equity Shares held Shareholding %
Up to 5,000 42,211 6,497,346 14.88
5,001 to 10,000 86 766,886 1.76
10,001 to 20,000 37 521,120 1.19
20,001 to 30,000 11 277,723 0.64
30,001 to 40,000 12 406,405 0.93
40,001 to 50,000 7 300,179 0.69
50,001 to 100,000 9 665,440 1.52
100,001 and above 17 34,217,961 78.39
TOTAL 42,390 43,653,060 100.00
DEMATERIALIZATION
The Company’s Equity Shares are under compulsory Demat Trading. As on March 31, 2023, dematerialized shares
accounted for 99.47% of the total Equity.
SITE LOCATION
The integrated steel plant of the Company is located at Village Ginigera, Taluka and District Koppal, in the State
of Karnataka.
INVESTORS CORRESPONDENCE ADDRESS
1) Link Intime India Private Limited 2) Kalyani Steels Limited
Registrar & Transfer Agent Secretarial Department
Block No.202, Akshay Complex, 2nd Floor, Mundhwa, Pune - 411 036
Off Dhole Patil Road, Near Ganesh Mandir, Phone No. : +91-020-66215000
Pune - 411 001 Fax No. : 020 - 26821124
Phone No. : 020 - 26161629 / 26160084 E-mail : investor@kalyanisteels.com
Telefax : 020 - 26163503
E-Mail : pune@linkintime.co.in
DECLARATION ON COMPLIANCE WITH THE CODE OF CONDUCT
I, R.K. Goyal, Managing Director of the Company do hereby declare that all the Board Members and Senior
Management Personnel have affirmed for the year ended March 31, 2023, compliance with the Code of Conduct
of the Company laid down for them.
Place : Pune R.K. Goyal
Date : April 28, 2023 Managing Director
59
Annexure A
CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS
(Pursuant to Regulation 34(3) and Schedule V Para C Clause (10)(i) of the
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)
To,
The Members
Kalyani Steels Limited
Mundhwa, Pune – 411 036
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of
Kalyani Steels Limited CIN L27104MH1973PLC016350 (hereinaer referred to as “the Company”) and having
registered office at Mundhwa, Pune - 411036, produced before us by the Company for the purpose of issuing this
Certificate, in accordance with Regulation 34(3) read with Schedule V Para C Clause 10(i) of Securities and Exchange
Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
In our opinion and to the best of our information and according to the verifications (including Directors Identification
Number (DIN) status at the portal (www.mca.gov.in) as considered necessary) and explanations furnished to us by
the Company and its officers, we hereby certify that none of the Directors on the Board of the Company as stated
below for the Financial Year ended on March 31, 2023 have been debarred or disqualified from being appointed
or continuing as Directors of companies by the Securities and Exchange Board of India and Ministry of Corporate
Affairs or any such other Statutory Authority.
Sr. No. Name of Director DIN Original Date of appointment

1. Mr.Babasaheb Neelkanth Kalyani 00089380 15/02/1984
2. Mr.Amit Babasaheb Kalyani 00089430 22/05/2004
3. Mrs.Sunita Babasaheb Kalyani 00089496 30/03/2015
4. Mr.Bhalachandra Basappa Hattarki 00145710 29/06/1992
5. Mr.Madan Umakant Takale 01291287 27/06/2006
6. Mr.Shivakumar Kheny 01487360 15/02/1984
7. Mr.Ravindra Kumar Goyal 03050193 17/01/2011
8. Mr.Arun Pandurang Pawar 03628719 25/10/2011
9. Mr.Shrikrishna Kiran Adivarekar 06928271 18/05/2018
10. Mr.Sachin Krishna Mandlik 07980384 09/11/2017
11. Mrs.Shruti Anup Shah 08337714 29/01/2020
12. Amb.Javed Ahmad 08668304 26/06/2020
Ensuring the eligibility for the appointment / continuity of every Director on the Board is the responsibility of the
management of the Company. Our responsibility is to express an opinion on these based on our verification. This
certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness
with which the management has conducted the affairs of the Company.
For SVD & Associates

Company Secretaries
Meenakshi R. Deshmukh
Partner
FCS No. : 7364
C P No. : 7893
Peer Review No : P2013MH075200
UDIN : F007364E000181406
Place : Pune
Date : April 28, 2023
60
CERTIFICATE FROM PRACTICING COMPANY SECRETARY

ON CORPORATE GOVERNANCE
To the Members of Kalyani Steels Limited

We have examined the compliance of conditions of corporate governance by Kalyani Steels Limited
CIN L27104MH1973PLC016350 (hereinaer referred “the Company”), for the year ended on March 31, 2023 as
stipulated in relevant provisions of Securities and Exchange Board of India (Listing Obligations and Disclosures
Requirements) Regulations, 2015 (“Listing Regulations”).
The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination
was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of
the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial
statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, we certify that
the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned
Listing Regulations, as applicable.
We further state this certificate is neither an assurance as to the future viability of the Company nor efficiency or
effectiveness with which the management has conducted the affairs of the Company.

Company Secretaries
Partner
FCS No. : 7364
C P No. : 7893
Peer Review No. : P2013MH075200
UDIN : F007364E000181461
Place : Pune
Date : April 28, 2023
61
DIRECTORS’ REPORT
To,
The Members,
The Directors have pleasure in presenting the Fiieth Annual Report on the business and operations of the Company
together with the Audited Financial Statements for the Financial Year ended March 31, 2023.
1. Financial Highlights
( ` in Million)
2022-23 2021-22
Total Income : 19,557.58 17,523.86
Total Expenditure : 16,537.00 13,674.65
Finance Cost : 280.96 132.09
Depreciation & amortization expenses : 489.02 458.76
Profit before Exceptional Item and Tax : 2,250.60 3,258.36
Exceptional Item : — —
Profit before Tax : 2,250.60 3,258.36
Tax Expenses :
- Current Tax : 632.50 886.00
- Deferred Tax : (52.42) (56.79)
- Taxation in respect of earlier years 0.25 —
Profit aer Tax : 1,670.27 2,429.15
2. Dividend
Based on the Company’s performance, the Directors are pleased to recommend a dividend of ` 10/- per Equity
Share of ` 5/- each (i.e. 200%), for the financial year ended March 31, 2023, for approval of the members.
The Board has recommended dividend based on the parameters laid down in the Dividend Distribution
Policy, adopted by the Company pursuant to Regulation 43A of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015.
The dividend on Equity Shares, if approved by the members would involve cash outflow of ` 436.53 Million
and shall be subject to deduction of income tax at source.
3. Reserves
During the year under review, the Company does not propose to transfer any amount to the General Reserve.
An amount of ` 14,177 Million is proposed to be retained as Retained Earnings.
4. Performance of the Company
The steel industry faced numerous challenges in FY 2022-23 caused by external negative global headwinds
such as volatility in raw material & commodity prices, inflationary pressures, rising interest rates, supply chain
related issues due to Russia-Ukraine war, depreciating rupee etc.
One of the key commodities for alloy steel industry, Ferro Moly exhibited a steep & sudden increase of more
than 100% from April, 2022 at $ 48/Kg to $ 99.3/Kg in February, 2023 before coming down to $ 78/Kg in March,
2023. Such price volatility in commodity prices puts negative pressure on the profitability of the Company.
Despite such a volatile & complex business environment, the Company has delivered extremely well results
during FY 2022-23. The Company achieved Revenue from Operations of ` 18,994 Million against ` 17,060
Million in FY 2021-22. The Profit before tax is ` 2,251 Million against ` 3,258 Million in FY 2021-22.
The automotive sector is a key contributor to the Company’s business portfolio. FY 2022-23 has seen
remarkable growth in passenger vehicles (PV) sales at 4.5 Million vehicles at a growth of 29% over
62
FY 2021-22. With 4.5 Million vehicles sales, PV has crossed the pre-pandemic levels. Further, the growth
momentum is expected to continue even in FY 2023-24. Commercial Vehicles, Two Wheelers & Three Wheelers
are yet to catch up with the pre-pandemic numbers but have exhibited growth. Increased auto sales would
further improve the business performance of the Company in FY 2023-24.
The alloy steel sector would also observe rising demand from sunrise sectors such as Renewable Energy,
Hydrogen electrolyzer & storage solutions, H2 fuel cells, sustainable heating solutions etc. where specialty
alloys steel products would be used. The Company is continuously investing in R&D to develop new steel
grades suitable for a variety of applications catering to these segments. This would also help the Company
to increase its profitability in the near future.
5. Commissioning of Coke Making Facility and partial commissioning of Waste Heat Recovery (WHR) based
Captive Power Plant
The members are aware that the Company had planned to set up a 200,000 TPA Non-recovery / Heat recovery,
stamp charged Coke Oven with Modified wet Quenching of hot coke and 17-18 MW captive power plant to be
operated utilizing waste heat energy of flue gas generated from Coke Oven. The electrical power so produced
shall be used for captive consumption and the surplus, if any, will be sold to external agencies. The Broad
Specifications were as follows :
l Coke Oven
Ø Annual capacity (Dry coke) – 0.2 MT
Ø No. of Ovens – 72 (Divided in two batteries of 36 ovens each)
l Heat Recovery Captive Power Plant
Ø Power generation capacity – 17-18 MW
Ø Generation voltage – 11KV
Respecting its commitment to the Atmanirbhar Bharat campaign, the process technology adopted was
indigenous coke-making technology with all latest innovations incorporated for a high degree of technological
performance and product quality.
It is a pleasure to inform you that the Company has commissioned the Coke oven plant with all its auxiliaries
and utility systems and started its commercial production from March 31, 2023. The production has already
attained the designed capacity and the product quality is amongst the best in the industry.
The power plant with the turbine - generator with all the balance of plant (BOPs) with one of the two boilers has
also been commissioned, while the second boiler to be added to the steam circuit is going to be commissioned
shortly.
6. State of Company’s Affairs
Discussion on the state of Company’s affairs has been covered as part of the Management Discussion and
Analysis (MD&A). MD&A for the year under review, as stipulated under Regulation 34 of SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015, is presented in a separate section forming part of the Annual
Report.
7. Corporate Governance
The Company aspires to reach highest standards of Corporate Governance and adhere to the Corporate
Governance Requirements set out by SEBI.
The Report on Corporate Governance as stipulated under SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, is presented in a separate section forming part of the Annual Report.
The requisite certificate from Secretarial Auditors of the Company viz. M/s. SVD & Associates, Company
Secretaries, Pune certifying compliance of the conditions of Corporate Governance is attached to Report on
Corporate Governance.
8. Deposits
During the year under review, the Company has not accepted any deposit under Chapter V of the Companies Act,
2013.
63
9. Directors
In terms of the provisions of the Companies Act, 2013 and the Articles of Association of the Company,
Mrs.Sunita B. Kalyani and Mr.Amit B. Kalyani, Directors of the Company, are retiring by rotation at the ensuing
Annual General Meeting and being eligible, have offered themselves for re-appointment.
These re-appointments form part of the Notice of the Annual General Meeting and the Resolutions are
recommended for your approval. Profiles of these Directors, are given in the Report on Corporate Governance
for reference of the members.
The Company has received declarations from all Independent Directors that they meet the criteria of
independence as prescribed under Section 149(6) of the Companies Act, 2013 and Regulation 16(1)(b) of
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
9.1 Board Evaluation
The Nomination and Remuneration Policy of the Company empowers the Nomination and Remuneration
Committee to formulate a process for effective evaluation of the performance of individual Directors,
Committees of the Board and the Board as a whole, in accordance with the provisions of the Companies
Act, 2013 Act and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The Board formally assesses its own performance based on parameters which, inter alia, include
performance of the Board on deciding long term strategy planning, structure, composition and role
clarity of the Board and Committees, discharging of governance and fiduciary duties, handling critical
issues etc.
The performance of the committees was evaluated by the Board aer seeking inputs from the committee
members on the basis of criteria such as composition of the committee, effectiveness of the committee
meetings, information and functioning.
The parameters for the performance evaluation of the Directors include contribution made at the Board
/ Committee meetings, attendance, instances of sharing best practices, domain knowledge, vision,
strategy, engagement with senior management etc.
In a separate meeting of independent directors, the performance of Non-Independent Directors and
the Board as a whole was evaluated. Additionally, they also reviewed performance of the Chairman of
the Board, taking into account the views of Executive and Non-executive Directors. They also assessed
the quality, quantity and timeliness of flow of information between the Company management and the
Board that is necessary for the Board to effectively and reasonably perform their duties. The above
evaluations were then discussed in the Board meeting and performance evaluation of Independent
Directors was done by the entire Board, excluding the Independent Director being evaluated.
9.2 Nomination & Remuneration Policy
The Nomination and Remuneration Policy of the Company, inter alia, provides that the Nomination
and Remuneration Committee shall formulate the criteria for appointment of Directors on the Board
of the Company and persons holding Senior Management positions in the Company, including their
remuneration and other matters as provided under Section 178 of the Companies Act, 2013 and SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015. The Policy is available on the
website of the Company. (Web-link : http://www.kalyanisteels.com/profile/policies/).
9.3 Meetings of the Board
During the Financial Year 2022-23, four Board Meetings were convened and held. Also a separate
meeting of Independent Directors as prescribed under Schedule IV of the Companies Act, 2013 was
held. The details of meetings of Board of Directors are provided in the Report on Corporate Governance
that forms part of this Annual Report.
10. Directors’ Responsibility Statement
Pursuant to the requirements under Section 134(5) of the Companies Act, 2013, with respect to Directors’
Responsibility Statement, it is hereby confirmed that :
i) in the preparation of the annual accounts for the year ended March 31, 2023, the applicable accounting
standards have been followed and that there are no material departures;
64
ii) the Directors have selected such accounting policies and applied them consistently and made judgments
and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs
of the Company as at March 31, 2023 and of the profit of the Company for that period;
iii) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records
in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the
Company and for preventing and detecting fraud and other irregularities;
iv) the Directors have prepared the annual accounts for the year ended March 31, 2023, on a going concern
basis;
v) the Directors have laid down internal financial controls to be followed by the Company and that such
internal financial controls are adequate and were operating effectively; and
vi) the Directors have devised proper systems to ensure compliance with the provisions of all applicable
laws and that such systems are adequate and operating effectively.
11. Conservation of Energy, Technology Absorption and Foreign Exchange Earnings & Outgo
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo,
as required to be disclosed under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the
Companies (Accounts) Rules, 2014 is annexed herewith as Annexure “A”.
12. Corporate Social Responsibility
The Company has been carrying out various Corporate Social Responsibility (CSR) activities in the areas of
education, health, water, sanitation etc. These activities are carried out in terms of Section 135 read with
Schedule VII of the Companies Act, 2013 and Companies (Corporate Social Responsibility Policy) Rules, 2014.
The Annual Report on CSR Activities undertaken by the Company is annexed herewith as Annexure “B”. The
CSR Policy is available on the Company’s website. (Web-link : http://www.kalyanisteels.com/profile/policies/)
13. Related Party Transactions
All transactions with related parties were reviewed and approved by the Audit Committee and were in
accordance with the Policy on dealing with and materiality of related party transactions and the related party
framework, formulated and adopted by the Company.
All contracts or arrangements entered into by the Company with Related Parties during the financial year
were on an arm’s length basis and in the ordinary course of business.
Pursuant to Section 134 of the Companies Act, 2013 read with Rule 8(2) of the Companies (Accounts) Rules,
2014, the particulars of transactions with related parties, are provided in Form AOC-2, which is annexed
herewith as Annexure “C”. Related party disclosures as per Ind AS have been provided in Note 38 to the
Financial Statements.
The policy on Related Party Transactions in line with the requirements of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 and as approved by the Board is uploaded on the Company’s
website. (Web-link : http://www.kalyanisteels.com/profile/policies/)
14. Risk Management
Risk management, which aims at managing the impact of uncertainties, is an Integral part of the Company’s
strategy setting and decision making process. The Company regularly identifies uncertainties and aer
assessing them, devises short-term and long-term plans to mitigate any risk which could materially impact
on the Company’s goals. This process of identifying and assessing the risks is a two-way process with inputs
being taken from employees across the organization.
The Risk Management Committee of the Company is entrusted by the Board to frame, implement and monitor
the risk management plan for the Company. The committee is responsible for reviewing the risk management
plan and ensuring its effectiveness. The Audit Committee has additional oversight in the area of financial risks
and controls. The major risks identified by the businesses and functions are systematically addressed through
mitigating actions on a continuing basis.
65
The policy on Risk Management as approved by the Board is uploaded on the Company’s website.
(Web-link : http://www.kalyanisteels.com/profile/policies/)
15. Audit Committee
As on March 31, 2023, the Audit Committee comprises of Mr.S.K. Adivarekar, Chairman of the Committee
and Independent Director, Mr.B.N. Kalyani, Promoter Non-Executive Director, Mr.B.B. Hattarki and
Mrs.Shruti A. Shah, Independent Directors.
All the recommendations made by the Audit Committee were deliberated and accepted by the Board during
the Financial Year 2022-23.
16. Auditors and Auditor’s Report
M/s. Kirtane & Pandit LLP, Chartered Accountants, Pune (Firm Registration No.105215W / W100057), are the
Auditors of the Company and they hold office till the conclusion of the Fiy-Fourth Annual General Meeting
to be held in the year 2027.
The Notes on Financial Statements referred to in the Auditor’s Report are self-explanatory and hence do not
call for any further comments. The Auditor’s Report does not contain any qualification, reservation, adverse
remark or disclaimer.
During the year under review, the Auditors of the Company have not reported any fraud as specified under
Section 143(12) of the Companies Act, 2013 to the Audit Committee.
17. Cost Auditors
The Board of Directors, on the recommendation of the Audit Committee, has appointed M/s S.R. Bhargave &
Co., Cost Accountants, Pune for conducting the cost audit of the Company for Financial Year 2023-24.
As required under the Companies Act, 2013, the remuneration payable to the Cost Auditors is required to be
ratified by the members of the Company. Accordingly, resolution seeking members’ ratification for remuneration
to be paid to Cost Auditors is included at Item No.7 of the Notice convening Annual General Meeting.
18. Secretarial Audit and Secretarial Standards
Pursuant to provisions of Section 204 of the Companies Act, 2013, the Board had appointed M/s. SVD &
Associates, Company Secretaries, Pune, to undertake Secretarial Audit of the Company for the Financial Year
2022-23. The Secretarial Audit Report for the Financial Year ended March 31, 2023, is annexed herewith as
Annexure “D”. The Secretarial Audit Report does not contain any qualification, reservation, adverse remark
or disclaimer.
The Company is compliant with the Secretarial Standards issued by the Institute of Company Secretaries of
India and approved by Central Government under Section 118(10) of the Companies Act, 2013.
19. Information pursuant to Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014
The information required pursuant to Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of
the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, has been provided in
Annexure “E”.
In terms of Section 136 of the Companies Act, 2013, the Report and Accounts are being sent to the shareholders
excluding the information required under Rule 5(2) and (3) of the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014. Any shareholder interested in obtaining the same may write to the
Company Secretary at investor@kalyanisteels.com.
20. Annual Return
In accordance with Section 92(3) read with Section 134(3)(a) of the Companies Act, 2013, the Annual Return
of the Company as on March 31, 2022, filed with Registrar of Companies, is available on the Website of the
Company at www.kalyanisteels.com
66
21. Whistle Blower Policy

The Company promotes ethical behaviour in all its business activities, in line with the best governance practices.
The Company has a robust vigil mechanism through its Whistle Blower Policy, approved and adopted by the
Board of Directors of the Company in compliance with the provisions of the Companies Act, 2013 and the
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Whistle Blower Policy is available
on the Company’s website. (Web-link : http://www.kalyanisteels.com/profile/policies/)
The Policy provides a formal channel whereby the employees / directors can report the instances of unethical
behavior, actual or suspected fraud or any violation of the Code of Conduct and / or laws applicable to the
Company, report the instances of leakage of unpublished price sensitive information and seek redressal. This
mechanism provides appropriate protection to the genuine Whistle Blower, who avail of the mechanism.
During the year under review, the Company has not received any complaint under the said mechanism.
22. Particulars of Loans, Guarantees or Investments
Particulars of Loans, Guarantees and Investments covered under Section 186 of the Companies Act, 2013,
forms part of the notes to the Financial Statements provided in this Annual Report.
23. Internal Financial Controls
The Company’s internal financial control systems are commensurate with the nature of its business, the size
and complexity of its operations and such controls with reference to the Financial Statements are adequate.
The Internal Financial Control Systems over financial reporting ensures that all transactions are authorized,
recorded and reported correctly in a timely manner. The Company has laid down Standard Operating
Procedures, Policies and Authority to guide the operations of the business. Functional heads are responsible
to ensure compliance with all laws and regulations and also with the policies and procedures laid down by the
management.
24. Material Changes and Commitments, if any, affecting Financial Position of the Company
There are no adverse material changes or commitments that occurred aer March 31, 2023, which may affect
the financial position of the Company or may require disclosure.
25. Significant and Material Orders
There are no significant and material orders passed by the regulators or courts or tribunals impacting the
going concern status and Company’s operations in future.
26. Familiarization Programme
Detailed presentations are made to the entire Board including independent Directors from time to time on
various matters such as the Company’s operations and business plans, strategic plans, plant operations,
regulatory updates etc. The Functional heads are invited from time to time to present before the Board, key
matters pertaining to their area of expertise.
Apart from the above, the Directors are regularly briefed and updated on the Company’s policies and procedures,
business model, the industry and operating environment that the Company operates in. For newly appointed
directors detailed induction program involving the briefing on the Company’s philosophy on Governance, Ethics
and Compliance coupled with the Company’s policies and interactions with the leadership team is in place.
The details of programmes for familiarization of Independent Directors with the Company are put up on
Website of the Company. (Web-link : http://www.kalyanisteels.com/profile/policies/)
27. Subsidiaries, Joint Ventures or Associate Companies
As on March 31, 2023, the Company has one associate and one joint venture company. A statement containing
the salient features of the financial statement of the associate and joint venture in the prescribed format
AOC–1 is annexed hereto as Annexure “F”.
The Policy for determining ‘Material’ subsidiaries has been displayed on the Company’s website. (Web-link :
http://www.kalyanisteels.com/profile/policies/)
67
Lord Ganesha Minerals Private Limited (LGMPL), subsidiary of the Company, had made voluntary application
on February 9, 2022, to the Registrar of Companies (ROC), Pune (Maharashtra), for striking off its name from
the Register of Companies, pursuant to the provisions of Section 248 of the Companies Act, 2013. The final
order of the ROC approving striking off the name was passed on April 26, 2022.
28. Business Responsibility and Sustainability Report
The Securities and Exchange Board of India (‘SEBI’), in May, 2021, introduced new sustainability related
reporting requirements to be reported in the specific format of Business Responsibility and Sustainability
Report (‘BRSR’). BRSR is a notable departure from the existing Business Responsibility Report (‘BRR’) and
a significant step towards giving platform to the companies to report the initiatives taken by them in areas
of environment, social and governance. Further, SEBI has mandated top 1,000 listed companies, based on
market capitalization, submission of BRSR from FY 2022-23 onwards.
In accordance with the aforesaid SEBI requirement, Business Responsibility and Sustainability Report is
provided as a part of this Annual Report, as Annexure “G”.
29. Transfer to Investor Education and Protection Fund (IEPF)
Pursuant to provisions of the Companies Act, 2013, read with the Investor Education and Protection Fund
Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (IEPF Rules) the declared dividends, which
are unpaid or unclaimed for a period of seven (7) years and the shares thereof, shall be transferred by the
Company to the Investor Education and Protection Fund (IEPF) established by the Central Government. The
shareholders have an option to claim the amount of the dividend transferred and / or shares from IEPF. No
claim shall be entertained against the Company for the dividend amounts and shares so transferred.
During the year, no unpaid or unclaimed dividend and the shares thereof, were liable to be transferred to IEPF.
30. Obligation of Company under The Sexual Harassment of Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013
The Company has zero tolerance for sexual harassment of women at workplace and has adopted a Policy for
prevention, prohibition and redressal of sexual harassment at workplace, in terms of provisions of the Sexual
Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act) and the
rules framed thereunder. All women employees (permanent, temporary, contractual and trainees), as well as
any women visiting the Company’s office premises are covered under the Policy.
The Company has constituted an Internal Complaints Committee under the POSH Act. During the year under
review, no complaints were received by the Committee.
31. Acknowledgement
The Directors would like to express their sincere appreciation of the co-operation received from the Central
Government, the Government of Maharashtra, the Government of Karnataka, Karnataka Industrial Area
Development Board, Financial Institutions and the Bankers. The Directors also wish to place on record their
appreciation for the commitment displayed by all employees at all levels, resulting in the successful performance
of the Company during the year.
The Directors also take this opportunity to express their deep gratitude for the continued co-operation and
support received from its valued shareholders.
The Directors express their special thanks to Mr.B.N. Kalyani, Chairman of the Company, for his relentless
actions for the progress of the Company.
for and on behalf of the Board of Directors
Place : Pune B.N. Kalyani

Date : April 28, 2023 Chairman
68
ANNEXURE - A TO DIRECTORS’ REPORT

INFORMATION ON CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
AND OUTGO
A. CONSERVATION OF ENERGY :
I. The steps taken or impact on conservation of energy :
a) Energy efficient pump introduced for mould and spray cooling in caster for power saving.
b) Energy saving by installing VFD in Sinter cooler motor, for adjusting speed with sinter discharge temperature.
c) Sinter plant 2 main ID fan drive installed with the cost of ` 52 lakhs resulted in energy saving of
3000 kwh/day.
d) Energy saving by installing third drive in Sinter cooler.
l 132KW Drive installed in Sinter plant 1 PMD for saving in energy consumption.
l 132KW Drive installed in Sinter plant 2 PMD for saving in energy consumption.
l 280KW Crusher replaced with energy efficient crusher with 110KW VFD system which eliminated
perennial mechanical issues and reduced power consumption.
l VFD drives installed in the following systems resulting in energy saving and better control :
v 75KW drive in dry fog system.
v 75KW drive in RMS 1 combustion air blower.
v 220KW drive in RMS 1 descaler.
v 37KW drive in roller table in RMS 1.
II. The steps taken by the Company for utilizing alternate sources of energy :
a) Renewable power to the extent of 5.74 crore units were used to replace KPTCL grid power resulting in a
saving of ~ ` 7.43 Cr.
b) As a part of replacement of conventional power 5.74 crore of renewable power has been consumed to
replace conventional power from KPTCL grid and thus reduce CO2 /tcs.
c) Post commissioning of WHR Power plant using waste flue gas from coke oven in March 2023, drawl of
power from state grid has been reduced by 2,236,000 kwh. The WHR power generation is on the rise which
will ensure further reduction in drawl of grid power.
III. The capital investment on energy conservation equipment : N.A.
B. TECHNOLOGY ABSORPTION :
I. The efforts made towards technology absorption :
a) Development of process to replace double rolling by single rolling, resulting in substantial increase in
productivity and reduction of energy and mill operation cost.
b) Process innovation to produce improved bar quality suitable for direct forging without peeling for cold
forging application of constant velocity (CV) joints.
c) Development of customized variants of 5120H, 28Cr S4, SCM420H grades for IB5 Gear and Sha
applications.
d) Modification of Shot blasting machine turbine drive arrangement resulting in substantial increase in machine
availability and increased MTBF (Mean Time Between Failures).
e) Augmentation of Condition Monitoring System by introducing following additional monitoring activities
to facilitate Condition Based Maintenance (CBM) of critical equipment as follows :
l Partial discharge test for HT Motors
- Partial discharges (PD) Testing and Monitoring solutions can provide critical information on the quality
of insulation and its impact on overall equipment health.
l Current signature analysis on HT motors
- Motor Current Signature Analysis (MCSA) is a condition monitoring technique used to diagnose
problems in motors.
l Sweep frequency response analysis on Main Transformers
- Sweep frequency response analysis (SFRA) is a method to evaluate the mechanical integrity of core,
windings and clamping structures within power transformers.
v This PD, MCSA and SFRA being practised on regular basis.
69
l For MBF 1 and 3, ‘ISOTHERM SOFTWARE PROGRAM’ for hearth refractory wear monitoring was set up
for improved monitoring of hearth condition.
l Digitization process started in Steel Melting shop for better monitoring and control of process for
efficient operation and improved productivity.
l Online condition monitoring of MBF blower / motor started.
l Midstack pressure measurement system for MBF 1 and MBF 3 for better control of furnace.
l Rolling Mill 1 PLC upgradation.
l Electrode regulation system of LRF 2 upgraded.
l Electrode regulation system both electronics and hydraulics of LRF 1 upgraded.
l Gas analyzer installed in MBF 1 and MBF 3 BF gas line to have better control on fuel consumption,
better utilization of BF gas due accurate CV and easy detection of water leakage if any.
l 2 strand and 4 strand wire feeding machine PLC upgraded and hooked up with SAP.
l 220KV incoming breaker upgraded for smooth and reliable operation.
l As a part to reduce GHG SF6 breaker being replaced with VCB in phased manner. This year 10 numbers
replaced.
II. The benefits derived like product improvement, cost reduction, product development or import
substitution :
The Company has developed various new products such as :
a) Development of 38MnSiVs6 with stringent Carbon Equivalent (CE) requirement for LASER welding for
output sha applications.
b) Developed EN 353 with Titanium for cold forging applications.
c) Developed 17NiCrMo6-4 special steel for Yoke sha application.
III. In case of imported technology (imported during the last three years reckoned from the beginning of
the financial year) :
a) Hydraulic Stamping Machine for Coke Oven :
(1) Year of Implementation : 2022-23
(2) Whether technology been fully absorbed : Yes
(3) If not, areas where absorption has not taken place with reasons : N.A.
IV. The expenditure incurred on Research and Development : Nil
C. FOREIGN EXCHANGE EARNING AND OUTGO :
I. The Foreign Exchange earned in terms of actual inflows during the year and the Foreign Exchange outgo
during the year in terms of actual outflows :
a) Total foreign exchange used and earned :
Used : ` 5,850.83 Million Earned : ` 196.77 Million

70
ANNEXURE - B TO DIRECTORS’ REPORT

ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES
[Pursuant to Section 135 of the Companies Act, 2013 read with
the Companies (Corporate Social Responsibility Policy) Rules, 2014]
1. A brief outline on CSR Policy of the Company :
Corporate Social Responsibility (CSR) Policy of the Company emphasize initiatives in specific areas of social
development that would include primary, secondary education, skills development, vocational training, health and
hygiene, preventive health care and sanitation, women empowerment, environment and ecological protection,
character building by providing training opportunities in sports and cultural activities etc. The CSR Policy is
available on the website of the Company. (Web-link : https://www.kalyanisteels.com/profile/policies/)
2. The composition of the CSR Committee :
Sl. Name of Director Designation / Nature of Number of meetings of Number of meetings of
No. Directorship CSR Committee held CSR Committee attended
during the year during the year
1 Mr.B.B. Hattarki, Chairman Independent 2 2
2 Mrs.Sunita B. Kalyani Non-Executive 2 2
3 Mr.M.U. Takale Non-Executive 2 2
4 Mr.R.K. Goyal, Managing Director Executive 2 2
3. Provide the web-link(s) where Composition of CSR Committee, CSR Policy and CSR Projects approved by the Board
are disclosed on the website of the Company :
Web-link : https ://www.kalyanisteels.com/about-us/director/
https ://www.kalyanisteels.com/profile/policies/
4. Provide the executive summary alongwith web-link(s) of Impact assessment of CSR Projects carried out in
pursuance of sub-rule (3) of Rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014, if
applicable :
Not Applicable
5. a) Average Net Profit of the Company as per sub-section 5 of Section 135 : ` 2,510.83 Million
b) Two percent of Average Net Profit of the Company as per sub-section 5 of Section 135 : ` 50.22 Million
c) Surplus arising out of the CSR Projects or programmes or activities of the previous financial years : Not Applicable
d) Amount required to be set off for the financial year, if any : ` 11.69 Million
e) Total CSR obligation for the financial year (5b+5c-5d) : ` 38.53 Million
6. a) Amount spent of CSR Projects (including amount available for set off from FY 2021-22) (Both Ongoing Project
and other than Ongoing Project) : ` 50.35 Million
b) Amount spent in Administrative Overheads : Not Applicable
c) Amount spent on Impact Assessment, if applicable : Not Applicable
d) Total amount spent for the Financial Year (6a+6b+6c) : ` 50.35 Million
e) CSR amount spent or unspent for the financial year :
Total Amount Amount Unspent ( ` in Million)

Spent for the Total Amount transferred to Amount transferred to any fund specified under
Financial Year Unspent CSR Account as per Schedule VII as per second proviso to sub-section 5
( ` in Million) sub-section 6 of Section 135 of Section 135
Amount Date of transfer Name of the Fund Amount Date of transfer
50.35 — — — — —
71
f) Excess amount for set off, if any

Sl. Particulars Amount
No. ( ` in Million)
i) Two percent of average net profit of the Company as per sub-section 5 of Section 135 50.22
ii) Total amount spent for the Financial Year (including amount available for set off from FY 2021-22) 50.35
iii) Excess amount spent for the financial year [(ii)-(i)] 0.13
iv) Surplus arising out of the CSR Projects or programmes or activities of the previous financial years, if any —
v) Amount available for set off in succeeding financial years [(iii)-(iv)] 0.13
7. Details of Unspent CSR amount for the preceding three financial years :
Sl. Preceding Amount Balance Amount Amount transferred to a Amount Deficiency,

No. Financial transferred to amount in Spent in the Fund as specified under remaining to if any
Year(s) Unspent CSR unspent CSR Financial Schedule VII as per be spent in
Account under Account under Year second proviso to succeeding
sub-section 6 sub-section 6 ( ` in Million) sub-section 5 of Financial
of Section 135 of Section 135 Section 135, if any Years
( ` in Million) ( ` in Million) (` in Million)
Amount Date of
( ` in Million) Transfer
1 FY 2019-20 — — — — — — —
2 FY 2020-21 — — — — — — —
3 FY 2021-22 — — — — — — —
8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent
in the Financial Year : No
9. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per
sub-section 5 of Section 135 : Not Applicable
The Responsibility Statement of the CSR Committee of the Board of Directors :

The implementation and monitoring of Corporate Social Responsibility (CSR) Policy, is in compliance with CSR objectives
and Policy of the Company.
Place : Pune R.K. Goyal B.B. Hattarki

Date : April 28, 2023 Managing Director Chairman, CSR Committee
72
ANNEXURE - C TO DIRECTORS’ REPORT
FORM AOC-2
[Pursuant to clause (h) of sub-section (3) of Section 134 of the Companies Act, 2013 and Rule 8(2) of the Companies
(Accounts) Rules, 2014]
Form for disclosure of particulars of contracts / arrangements entered into by the Company with related parties referred
to in sub-section (1) of Section 188 of the Companies Act, 2013 including certain arm’s length transactions under third
proviso thereto -
1. Details of contracts / arrangements or transactions not at arm’s length basis :
There are no contracts or arrangements or transactions entered into by the Company during the year ended
March 31, 2023, which are not at arm’s length basis.
2. Details of material contracts / arrangements or transactions at arm’s length basis :
a) Name(s) of the related : Bharat Forge Limited, Kalyani Technoforge Limited,

party and nature of Company under Common Control Company under Common Control
relationship
b) Nature of contracts : Sale / supply of goods or materials - Sale / supply of goods or materials -
/ arrangements / Steel, Purchase of mill scale Steel
transactions
c) Duration of contracts : On on-going basis On on-going basis
/ arrangements /
transactions
d) Salient terms of the : In tune with market parameters. In tune with market parameters.
contracts / arrangements Transaction Value not exceeding Transaction Value not exceeding
/ transactions including ` 20,000 Million for each of the ` 5,000 Million for each of the
the value, if any Financial Year Financial Year
e) Date(s) of approval by the : January 27, 2022 January 27, 2022
Board
f) Amount paid as advance, : Trade Advance of ` 470 Million N.A.
if any received from Bharat Forge Limited
On behalf of the Board of Directors
Place : Pune Mrs.D.R. Puranik B.M. Maheshwari R.K. Goyal B.N. Kalyani
Date : April 28, 2023 Company Secretary Chief Financial Officer Managing Director Chairman
73
ANNEXURE - D TO DIRECTORS’ REPORT

Form No. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED MARCH 31, 2023
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 and
Pursuant to Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015]
To,
The Members
Mundhwa,
Pune - 411 036
We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to
good corporate practices by Kalyani Steels Limited CIN L27104MH1973PLC016350 (hereinaer called “the Company”).
Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate
conducts / statutory compliances and expressing our opinion thereon.
Based on our verification of the Company’s books, papers, minute books, forms and returns filed and other records
maintained by the Company and also the information provided by the Company, its officers, agents and authorized
representatives during the conduct of secretarial audit, we hereby report that in our opinion, the Company has,
during the audit period covering the financial year ended on March 31, 2023 complied with the statutory provisions
listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in place to the
extent, in the manner and subject to the reporting made hereinaer :
We have examined the books, papers, minute books, forms and returns filed and other records maintained by the
Company for the financial year ended on March 31, 2023 according to the provisions of :
(i) The Companies Act, 2013, as amended from time to time (the Act) and the rules made thereunder;
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign
Direct Investment, Overseas Direct Investment and External Commercial Borrowings, wherever applicable;
(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992
(‘SEBI Act’) :
a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations,
2011;
b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements), Regulations, 2018
(not applicable to the Company during the audit period);
d) The Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations,
2021 (not applicable to the Company during the audit period);
e) The Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations,
2021 (not applicable to the Company during the audit period);
f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations,
1993 regarding the Companies Act and dealing with client (not applicable to the Company during the audit
period);
74
g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021, (not applicable
to the Company during the audit period); and
h) The Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 (not applicable to the
Company during the audit period).
(vi) We further report that having regards to the compliance system prevailing in the Company and on examination
of the relevant documents and records in pursuance thereof, no other law was applicable specifically to the
Company.
We have also examined compliance with the applicable clauses and regulations of the following :
(i) Secretarial Standards issued by The Institute of Company Secretaries of India.
(ii) The Listing Agreement entered into by the Company with Stock Exchanges pursuant to The Securities and
Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 including any
amendments thereto.
During the period under review the Company has complied with the provisions of the Act, Rules, Regulations,
Guidelines, Standards, etc. mentioned above.
We further report that,
The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive
Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during
the period under review were carried out in compliance with the provisions of the Act.
Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were
generally sent at least seven days in advance and a system exists for seeking and obtaining further information and
clarifications on the agenda items before the meeting and for meaningful participation at the meeting.
All decisions at Board Meetings and Committee Meetings have been carried out unanimously as recorded in the
minutes of the meetings of the Board of Directors or Committees of the Board, as the case may be.
We further report that there are adequate systems and processes in the Company commensurate with the size and
operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.
We further report that during the audit period, there were no specific events / actions having a major bearing on the
Company’s affairs in pursuance of the above referred laws, rules, regulations, guidelines, standards, etc.
We further report that during the audit period, Lord Ganesha Minerals Private Limited (LGMPL), a Subsidiary of the
Company, which was non operative and having no major bearing on the affairs of the Company was struck off from
the Register maintained by Registrar of Companies, Pune with effect from April 26, 2022, pursuant to provisions of
Section 248 of the Companies Act, 2013.
Company Secretaries
Partner
FCS No. : 7364
C P No. : 7893
Place : Pune Peer Review No. : P2013MH075200
Date : April 28, 2023 UDIN : F007364E000181340
Note : This report is to be read with letter of even date by the Secretarial Auditors, which is annexed as Annexure A
and forms an integral part of this report.
75
ANNEXURE ‘A’
To,
The Members
Mundhwa,
Pune - 411 036
Our Secretarial Audit Report of even date is to be read along with this letter.
Management’s Responsibility
1. It is the responsibility of the management of the Company to maintain secretarial records, devise proper systems
to ensure compliance with the provisions of all applicable laws and regulations and to ensure that the systems
are adequate and operate effectively.
Auditor’s Responsibility
2. Our responsibility is to express an opinion on these secretarial records, standards and procedures followed by
the Company with respect to secretarial compliances.
3. We believe that audit evidence and information obtained from the Company’s management is adequate and
appropriate for us to provide a basis for our opinion.
4. We have physically verified the documents and evidences and also relied on data provided through electronic
mode to us.
5. Wherever required, we have obtained the management’s representation about the compliance of laws, rules and
regulations and happening of events, etc.
Disclaimer
6. The Secretarial Audit Report is neither an assurance as to the future viability of the Company nor of the efficacy
or effectiveness with which the management has conducted the affairs of the Company.
7. We have not verified the correctness and appropriateness of financial records and books of accounts of the
Company.
Company Secretaries
Partner
FCS No. : 7364
C P No. : 7893
Place : Pune Peer Review No. : P2013MH075200
Date : April 28, 2023 UDIN : F007364E000181340
76
ANNEXURE - E TO DIRECTORS’ REPORT

[Information pursuant to Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
a) The ratio of remuneration of each Director to the median remuneration of the employees of the Company for
the financial year :
Sr. No. Name of the Director Ratio
1 Mr.B.N. Kalyani 4.33
2 Mrs.Sunita B. Kalyani 3.09
3 Mr.Amit B. Kalyani 3.70
4 Mr.S.M. Kheny 0.38
5 Mr.B.B. Hattarki 0.54
6 Mr.M.U. Takale 0.38
7 Mr.Arun P. Pawar 0.37
8 Mr.Sachin K. Mandlik 0.50
9 Mr.S.K. Adivarekar 0.51
10 Mrs.Shruti A. Shah 0.50
11 Amb.Ahmad Javed 0.50
12 Mr.R.K. Goyal 71.71
b) The percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer, Company
Secretary or Manager, if any, in the financial year :
(` in Million)
Sr. No. Name of the Director Remuneration % increase / (decrease)
2022-23 2021-22
1 Mr.B.N. Kalyani 7.03 9.35 (24.82)
2 Mrs.Sunita B. Kalyani 5.02 8.02 (37.39)
3 Mr.Amit B. Kalyani 6.01 8.02 (25.00)
4 Mr.S.M. Kheny 0.61 0.92 (32.97)
5 Mr.B.B. Hattarki 0.87 1.27 (31.40)
6 Mr.M.U. Takale 0.61 0.93 (33.91)
7 Mr.Arun P. Pawar 0.61 0.81 (24.75)
8 Mr.Sachin K. Mandlik 0.81 0.91 (10.82)
9 Mr.S.K. Adivarekar 0.83 1.22 (32.24)
10 Mrs.Shruti A. Shah 0.82 0.91 (10.33)
11 Amb.Ahmad Javed 0.81 0.91 (11.01)
12 Mr.R.K. Goyal 116.47 108.79 7.05
Percentage increase in remuneration of Mr.B.M. Maheshwari, Chief Financial Officer is 7.88% and of
Mrs.D.R. Puranik, Company Secretary is 5.53%.
c) The percentage increase in the median remuneration of employee(s) in the financial year : (3.30%)
d) The number of permanent employees on the role of the Company : 70 Employees as on March 31, 2023
e) Average percentile increase already made in the salaries of employees other than the managerial personnel in the
last financial year and its comparison with the percentile increase in the managerial remuneration and justification
thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration :
Percentage increment at 50th Percentile for Salaries of Non-Managerial Personnel is 5.90%.
Percentage increment at 50th Percentile for Salaries of Managerial Personnel is 7.20%.
77
The increase in remuneration is not solely based on Company performance but also includes various other factors
like individual performance, experience, skill sets, academic background, industry trends, economic situation and
future growth prospects etc. besides Company performance. There are no exceptional circumstances for increase
in managerial remuneration.
f) The remuneration paid to the Directors is as per the Remuneration Policy of the Company.

78
ANNEXURE - F TO DIRECTORS’ REPORT

FORM AOC-1
Pursuant to first proviso to sub-section (3) of Section 129 read with
Rule 5 of Companies (Accounts) Rules, 2014
Statement containing salient features of the Financial Statement of Subsidiaries / Associate Companies / Joint Ventures
Part “A” : Subsidiaries
The Company do not have any subsidiaries.

Part “B” : Associates and Joint Ventures
Statement pursuant to Section 129(3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures
(` in Million)
Name of Associate / Joint Venture Hospet Steels Limited Kalyani Mukand Limited
(Joint Venture) (Associate)
1. Latest Audited Balance Sheet Date 31-03-2023 31-03-2023
2. Date on which the Associate or Joint Venture was associated
or acquired March 27, 1999 January 18, 2000
3. Shares of Associate / Joint Venture held by
the Company on the year end
No. 124,997 1,000,000
Amount of Investment in Associates / Joint Venture ` 1.249 ` 10.05 (Refer Note 5 (a) of
Financial Statements)
Extend of Holding % 49.99% 50.00%
4. Description of how there is significant influence Note - A Note - A
5. Reason why the associate / joint venture is not consolidated Consolidated Not Consolidated Note - B
6. Networth attributable to Shareholding as per latest
Audited Balance Sheet (2.62) —
7. Profit / (Loss) for the year
Considered in Consolidation — —
Not Considered in Consolidation — —
Notes :
A. There is Significant Influence due to percentage (%) of Share Capital.
B. Based on materiality or where control is intended to be temporary.
On behalf of the Board of Directors
Place : Pune Mrs.D.R. Puranik B.M. Maheshwari R.K. Goyal B.N. Kalyani
Date : April 28, 2023 Company Secretary Chief Financial Officer Managing Director Chairman
79
ANNEXURE - G TO DIRECTORS’ REPORT

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
[Pursuant to Regulation 34 (2) (f) of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015]
SECTION A : GENERAL DISCLOSURES

I. Details of the Listed Entity
1. Corporate Identity Number (CIN) of the Listed

L27104MH1973PLC016350
Entity
2. Name of the Listed Entity Kalyani Steels Limited
3. Year of incorporation 1973
4. Registered office address Mundhwa, Pune - 411036, Maharashtra, India
5. Corporate address Mundhwa, Pune - 411036, Maharashtra, India
6. E-mail investor@kalyanisteels.com
7. Telephone +91-020-66215000
8. Website www.kalyanisteels.com
9. Financial year for which reporting is being done FY 2022-23
10 Name of the Stock Exchange(s) where shares National Stock Exchange of India Limited (NSE)
are listed BSE Limited (BSE)
11. Paid Up Capital ` 218.64 Million
12. Name and contact details (telephone, email Mrs.D.R. Puranik, Company Secretary
address) of the person who may be contacted Contact No : +91-020-66215000
in case of any queries on the BRSR report Email ID : investor@kalyanisteels.com
13. Reporting boundary - Are the disclosures under The disclosures under this report are made on a
this report made on a standalone basis (i.e. only standalone basis.
for the entity) or on a consolidated basis (i.e.
for the entity and all the entities which form a
part of its consolidated financial statements,
taken together)
II. Products / services

14. Details of business activities (accounting for 90% of the turnover)
S. No. Description of Main Activity Description of Business Activity % of Turnover of the entity
1. Manufacturing Manufacturing of forging and
engineering quality carbon and 97.76%
alloy steel
15. Products / Services sold by the entity (accounting for 90% of the entity’s Turnover)
S. No. Product / Service NIC Code % of total Turnover Contributed

1. Rolled Products 24105
Blooms and Rounds 24103 97.76%
Pig Iron 24101
III. Operations
16. Number of locations where plants and / or operations / offices of the entity are situated
Location Number of plants Number of offices Total

National 1 4 5
International 0 0 0
80
17. Markets served by the entity

a. Number of locations
Locations Number
National (No. of States and Union Territories) 36
International (No. of Countries) 3
b. What is the contribution of exports as a percentage
1.04 %
of the total turnover of the entity?
c. A brief on types of customers The forging industry in India is the primary market
for the Company’s products. Indian and International
component manufacturers for commercial vehicles, two
wheelers, diesel engines, bearings, tractors, turbines
and rail form the significant part of the Company’s
clientele. Additionally, the Company has earned the
status of preferred steel supplier for engineering,
seamless tube and aluminum-smelting industry.
IV. Employees
The Company’s Integrated Steel Manufacturing Facility at Ginigera is under a strategic alliance with Mukand
Limited (ML). Under this alliance, the Company and ML share the production in the ratio of 41.38% by the Company
and 58.62% by ML.
The said Manufacturing Facility is managed and operated by Hospet Steels Limited (HSL), which is a joint venture
between the Company and ML. All employees and workers engaged in Manufacturing Facility are on the roll of HSL.
HSL has 1,020 employees on roll and 1,400 workers on contract basis. The expenses incurred by HSL are shared
by the Company and ML in the production sharing ratio as above. As a result, these employees and workers do not
form part of the Company’s Business Responsibility and Sustainability Report.
As on March 31, 2023, the Company has 71 employees on roll and 200 workers on contract basis. These employees
and workers form part of the Company’s Business Responsibility and Sustainability Report.
18. Details as at the end of Financial Year
a. Employees and workers (including differently abled) :
S. No. Particulars Total (A) Male Female

No. (B) % (B/A) No. (C) % (C/A)
EMPLOYEES
1. Permanent (D) 70 66 94.29 4 5.71
2. Other than Permanent (E) 1 1 100 0 0
3. Total employees (D + E) 71 67 94.37 4 5.63
WORKERS
4. Permanent (F) 0 0 0 0 0
5. Other than Permanent (G) 214 214 100 0 0
6. Total Workers (F + G) 214 214 100 0 0
81
b. Differently abled Employees and workers :
S. No. Particulars Total (A) Male Female
No. (B) % (B/A) No. (C) % (C/A)
DIFFERENTLY ABLED EMPLOYEES
1. Permanent (D) 0 0 0 0 0
2. Other than Permanent (E) 0 0 0 0 0
3. Total differently abled employees

0 0 0 0 0
(D + E)
DIFFERENTLY ABLED WORKERS
4. Permanent (F) 0 0 0 0 0
5. Other than Permanent (G) 0 0 0 0 0
6. Total differently abled workers

0 0 0 0 0
(F + G)
19. Participation / Inclusion / Representation of Women
Total (A) Number and Percentage of Females
No. (B) % (B/A)
Board of Directors 12 2 16.67%
Key Management Personnel* 7 1 14.29%
*Key Management Personnel includes Vice President and above

20. Turnover rate* for permanent employees and workers
FY 2022-23 FY 2021-22 FY 2020-21
Male Female Total Male Female Total Male Female Total
Permanent
26.23% 20.00% 25.75% 19.64% 0 18.03% 10.20% 0 9.25%
Employees
Permanent
0 0 0 0 0 0 0 0 0
Workers
*includes employees who le voluntarily or due to retirement, dismissal or death.
V. Holding, Subsidiary and Associate Companies (including Joint Ventures)

21. (a) Names of holding / subsidiary / associate companies / joint ventures
Please refer to Form AOC-1 (Annexure F to the Directors’ Report) for the above information. The Company’s
Associate Company and Joint Venture Company do not participate in its Business Responsibility initiatives.
VI. CSR Details

22. i) Whether CSR is applicable as per Section 135 of Companies Act, 2013 : Yes
ii) Turnover ( in ` ) : ` 18,994 Million
iii) Net Worth ( in ` ) : ` 14,894.78 Million
82
VII. Transparency and Disclosures Compliances

23. Complaints / grievances on any of the principles (Principles 1 to 9) under the National Guidelines on
Responsible Business Conduct (NGRBC)
Stakeholder Grievance FY 2022-23 FY 2021-22
group from Redressal Number of Number of Remarks Number of Number of Remarks
whom Mechanisms in complaints complaints complaints complaints
complaint is Place (Yes / No) filed pending filed pending
received (If yes, then during resolution during resolution
provide web-link the year at close the year at close
for grievance of the year of the year
redressal policy)
Communities Yes. https ://

www.
0 0 — 0 0 —
kalyanisteels.
com/contact-us/
Investors
(other than NA 0 0 — 0 0 —
Shareholders)
Shareholders Yes. As per SEBI
Listing 5 0 — 2 0 —
Regulations
Employees
Yes 0 0 — 0 0 —
and Workers
Customers Yes. https ://
www.
39 0 — 40 0 —
kalyanisteels.
com/contact-us/
Value Chain Yes. https ://
Partners www.
0 0 — 0 0 —
kalyanisteels.com
/contact-us/
24. Overview of the entity’s material responsible business conduct issues : Please indicate material
responsible business conduct and sustainability issues pertaining to environmental and social matters
that present a risk or an opportunity to your business, rationale for identifying the same, approach to
adapt or mitigate the risk along with its financial implications, as per the following format
S. Material Indicate Rationale for identifying the In case of risk, approach to Financial implication of
No. issue whether risk / opportunity adapt or mitigate the risk or opportunity
identified risk or (indicate
opportunity Positive / negative
(R / O) implications)
1 Disaster Risk Business operations may be Adequate protection against Interruption in business
recovery affected due to natural calamities through operations may have
calamities like earthquakes, appropriate insurance. negative financial
cyclones, floods, etc. impact.
2 Health and Risk Failure to ensure health and Training all employees and Interruption in business
safety safety of employees and workers on health and safety. operations may have
workers could result in high Medical check-up at regular negative financial
rate of absenteeism and intervals. Corrective and impact.
can affect operations of the Preventive actions on
Company. identified unsafe working
practices and unsafe working
conditions.
3 Training and Opportunity The highly trained employees Providing a need-based Positive impact due to
education and workers perform their training courses. improvement in
tasks more efficiently and in productivity, quality and
safe manner. Customer Service etc.
83
SECTION B: MANAGEMENT AND PROCESS DISCLOSURES

This section is aimed at helping businesses demonstrate the structures, policies and processes put in place towards
adopting the NGRBC Principles and Core Elements.
The National Guidelines for Responsible Business Conduct (NGRBC) as prescribed by the Ministry of Corporate
Affairs advocates Nine Principles referred to as P1-P9, as given below :
P1 Businesses should conduct and govern themselves with integrity and in a manner that is ethical,
transparent and accountable.
P2 Businesses should provide goods and services in a manner that is sustainable and safe.
P3 Businesses should respect and promote the well-being of all employees, including those in their value
chains.
P4 Businesses should respect the interests of and be responsive towards all its stakeholders.
P5 Businesses should respect and promote human rights.
P6 Businesses should respect, protect and make efforts to restore the environment.
P7 Businesses when engaging in influencing public and regulatory policy, should do so in a manner that is
responsible and transparent.
P8 Businesses should promote inclusive growth and equitable development.
P9 Businesses should engage with and provide value to their consumers in a responsible manner.
Disclosure Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
Policy and management processes
1. a. Whether your entity’s policy / policies cover each principle Y Y Y Y Y Y Y Y Y
and its core elements of the NGRBCs. (Yes / No)
b. Has the policy been approved by the Board? (Yes / No) N N N N N N N N N
c. Web Link of the Policies, if available Policies on CSR, Prohibition of Insider Trading, RPTs, Whistle
Blower are available on the link :
https://www.kalyanisteels.com/profile/policies/
2. Whether the entity has translated the policy into procedures. Y Y Y Y Y Y Y Y Y
(Yes / No)
3. Do the enlisted policies extend to your value chain partners? Y Y Y Y Y Y Y Y Y
(Yes / No)
4. Name of the national and international codes certifications KSL Code of Conduct, National and International Codes /
/ labels / standards adopted by your entity and mapped to Certifications / Lables / Standards are listed below.
each principle.
1. ISO 9001 : 2015 (Quality Management Certification for Manufacturing of Plain Carbon and Alloy Steel Rolled Products)
2. IATF 16949 First Edition (Automotive Quality Management System Certification for Manufacturing of Plain Carbon and Alloy
Steel Rolled Products)
3. ISO 14001 : 2015 (Environment Management System Certification)
4. ISO 45001 : 2018 (Health & Safety Management System Certification)
5. IBR Certificate (Well known Steel Maker Certificate from Central Boilers Board)
84
5. Specific commitments, goals and targets set by the entity The Company is in the process of setting up specific goals
with defined timelines, if any. and targets with defined timelines.
6. Performance of the entity against the specific N.A.

commitments, goals and targets alongwith reasons in case
the same are not met.
Governance, leadership and oversight
7. Statement by Director responsible for the business responsibility report, highlighting ESG related challenges, targets and
achievements
The Company is committed to integrating Environmental, Social and Governance (ESG) Principles into its business
which is central to improving the life of the communities it serves. The Company is also committed to reduce Carbon
Footprint and exploring promising ways for green power and securing supply of carbon credits.
8. Details of the highest authority responsible for Managing Director

implementation and oversight of the Business
Responsibility policy(ies).
9. Does the entity have a specified Committee of the Board / No.

Director responsible for decision making on sustainability
related issues? (Yes / No). If yes, provide details.
10. Details of Review of NGRBCs by the Company

Subject for Review Indicate whether review was Frequency (Annually / Half
undertaken by Director / Yearly / Quarterly / Any other –
Committee of the Board / Any other please specify)
Committee
P1 to P9 P1 to P9
Performance against
above policies and follow Yes Annually
up action
Compliance with Statutory

requirements of relevance to the
Yes Annually
principles and rectification of any
non-compliances
11. Has the entity carried out independent assessment / evaluation of the working of its policies by an
external agency? (Yes/No). If yes, provide the name of the agency.
No
12. If answer to question (1) above is “No” i.e., not all Principles are covered by a policy, reasons to be stated
Not applicable
85
SECTION C : PRINCIPLE-WISE PERFORMANCE DISCLOSURE
Principle 1 : Businesses should conduct and govern themselves with integrity and in a manner that is Ethical,
Transparent and Accountable
ESSENTIAL INDICATORS
1. Percentage coverage by training and awareness programs on any of the Principles during the financial year :
Segment Total number of Topics / Principles covered under % of persons in

training and the training and its impact respective category
awareness covered by the
programmes awareness
held programmes
Board of Directors & Key Nil Nil Nil

Managerial Personnel
(KMP) (includes VPs and
above)
Employees other than 4 Technical Capability Development 60%

BoD and KMPs
Communication skills, Ways to live 100%
Healthy Life, Combating Stress
through Yoga, POSH.
Workers 4 Health and Safety Training, 100%

On the job Technical Training
2. Details of fines / penalties / punishment / award / compounding fees / settlement amount paid in
proceedings (by the entity or by Directors / KMPs) with regulators / law enforcement agencies / judicial
institutions, in the financial year, in the following format. (Note : the entity shall make disclosures
on the basis of materiality as specified in Regulation 30 of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 and as disclosed on the entity’s website).
No Fines / Penalties / Punishment / Award / Compounding Fees / Settlement amount were paid in any
proceedings (by the entity or by Directors / KMPs) with any regulators / law enforcement agencies / judicial
institutions, in the financial year.
3. Of the instances disclosed in Question 2 above, details of the Appeal / Revision preferred in cases where
monetary or non-monetary action has been appealed.
Not Applicable
4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if
available, provide a web-link to the policy.
The Company has zero tolerance for any form of corruption or bribery and has an Anti-Corruption and
Anti-Bribery Policy. The said Policy commands strict actions against anyone caught engaging in such
unethical behaviour. The copy of the said Policy is accessible through the intranet of the Company.
5. Number of Directors / KMPs / Employees / Workers against whom disciplinary action was taken by any
law enforcement agency for the charges of bribery.
No disciplinary action was taken by any law enforcement agency against any of the Company’s Directors,
KMPs, Employees or Workers for the charges of bribery or corruption in current as well as previous financial
year.
86
6. Details of complaints regarding conflict of interest.

No complaints are reported with regard to conflict of interest of Directors as well as KMPs in current as well
as previous financial year.
7. Provide details of any corrective action taken or underway on issues related to fines / penalties / action
taken by regulators / law enforcement agencies / judicial institutions, on cases of corruption and conflicts
of interest.
Not Applicable
Principle 2 : Businesses should provide goods and services in a manner that is sustainable and safe
1. Percentage of R&D and capital expenditure (Capex) investments in specific technologies to improve the
environmental and social impacts of product and processes to total R&D and capex investments made
by the entity, respectively.
FY 2022-23 FY 2021-22 Details of Improvements in environmental and social impacts
R&D — — —
Capex 0.30 % 7.32 % a) Wind Breaker Sheets along the periphery of RM Yard.
b) Canon Mist Fogger.
c) Revamping of Air Pollution Control Equipment
d) Concreting of Coke yard.
2. a. Does the entity have procedures in place for sustainable sourcing?

No. Steel is fih largest carbon emitting industry in the world. Globally, research and development is
underway to de-carbonize the steel making process. However, the development of such technology is yet
to be matured for a large commercial scale operations. Considering this, sustainable sourcing of input raw
materials (major carbon emitting materials) is a significant challenge. Nonetheless, the Company is trying
to develop suppliers to have sustainable sourcing and plans to introduce such procedures.
b. If yes, what percentage of inputs were sourced sustainably?
Not Applicable
3. Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at
the end of life for (a) Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other waste.
Steel has a very long service life before it needs to be recycled. End-of-life steel or scrap steel is not considered
as waste product by the Company, instead used as input product by remelting. The Company is committed
to circularity and reuses scrap generated during the production process. Further the steel slag generated
during the production is sold to cement manufacturers which helps in reducing the emmission intensity of
cement production.
4. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes / No). If
yes, whether the waste collection plan is in line with the Extended Producer Responsibility (EPR) plan
submitted to Pollution Control Boards? If not, provide steps taken to address the same.
Not Applicable
87
Principle 3 : Businesses should respect and promote the well-being of all employees, including those in their
value chains
1 a. Details of measures for well-being of employees :

Category % of employees covered by
Total Health Accident Maternity Paternity Day Care
(A) Insurance insurance Benefits Benefits Facilities
Number % Number % Number % Number % Number %
(B) (B / A) (C) (C / A) (D) (D / A) (E) (E / A) (F) (F / A)
Permanent employees
Male 66 66 100 66 100 0 0 0 0 0 0
Female 4 4 100 4 100 4 100 0 0 0 0
Total 70 70 100 70 100 4 5.71 0 0 0 0
Other than Permanent employees
Male 1 1 100 1 100 0 0 0 0 0 0
Female 0 0 0 0 0 0 0 0 0 0 0
Total 1 1 100 1 100 0 0 0 0 0 0
b. Details of measures for the well-being of workers :

Category % of workers covered by
Total Health Accident Maternity Paternity Day Care
(A) Insurance insurance Benefits Benefits Facilities
Number % Number % Number % Number % Number %
(B) (B / A) (C) (C / A) (D) (D / A) (E) (E / A) (F) (F / A)
Permanent workers
Male 0 0 0 0 0 0 0 0 0 0 0
Female 0 0 0 0 0 0 0 0 0 0 0
Total 0 0 0 0 0 0 0 0 0 0 0
Other than Permanent workers
Male 214 214 100 214 100 0 0 0 0 0 0
Female 0 0 0 0 0 0 0 0 0 0 0
Total 214 214 100 214 100 0 0 0 0 0 0
2 Details of retirement benefits, for Current and Previous Financial Year :
Benefits FY 2022-23 FY 2021-22
No. of No. of Deducted No. of No. of Deducted

employees workers and employees workers and
covered as covered as a deposited covered as covered as a deposited
a% % of total with the a% % of total with the
of total workers authority of total workers authority
employees (Y/N/N.A.) employees (Y/N/N.A.)
PF 100 100 Y 100 0 Y
Gratuity 100 100 Y 100 0 Y
ESI 0 100 Y 0 0 N.A.
88
3. Accessibility of workplaces
Are the premises / offices of the entity accessible to differently abled employees and workers, as per the
requirements of the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being
taken by the entity in this regard.
The Company’s various locations, including the offices / premises have been equipped with lis and handrails
for stairwells to facilitate the movement of differently abled individuals. Thus, Company’s premises has been
made access friendly.
4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act,
2016? If so, provide a web-link to the policy.
The Company provides equal employment opportunities, without any discrimination on the grounds of age,
colour, disability, marital status, nationality, race, religion, sex, sexual orientation. The Company strives to
maintain a work environment that is free from any harassment based on above considerations. This Equal
Opportunities Policy is subject to applicable regulations, qualifications and merit of the individual and the
same is available on the intranet of the Company.
5. Return to work and Retention rates of permanent employees and workers that took parental leave :
Gender Permanent employees Permanent workers
Return to work Retention rate Return to work Retention rate

rate rate
Male 0 0 0 0
Female 0 0 0 0
Total 0 0 0 0
6. Is there a mechanism available to receive and redress grievances for the following categories of
employees and worker? If yes, give details of the mechanism in brief.
Yes / No (If yes, give details of the mechanism)
Permanent Workers Kalyani Steels does not have any Permanent Workers.
Other than Permanent Workers Yes - HR Department has established a grievance handling mechanism.
Permanent Employees Yes - HR Department has established a grievance handling mechanism.
Other than Permanent Employees Yes - HR Department has established a grievance handling mechanism.
89
7. Membership of employees and worker in association(s) or Unions recognized by the listed entity :
Category FY 2022-23 FY 2021-22
Total No. of employees / % Total No. of employees / %

employees workers in (B / employees workers in (D /
/ workers in respective A) / workers in respective C)
respective category, who respective category, who
category are part of category are part of
(A) association(s) or (C) association(s) or
Union (B) Union (D)
Total Permanent
70 0 0 66 0 0
Employees
Male 66 0 0 61 0 0
Female 4 0 0 5 0 0
Total Permanent
0 0 0 0 0 0
Workers
Male 0 0 0 0 0 0
Female 0 0 0 0 0 0
8. Details of training given to employees and workers :

Total (A) On Health and On Skill upgradation Total (D) On Health and On Skill upgradation
safety measures safety measures
No. (B) % No. (C) % No. (E) % No. (F) %
(B / A) (C / A) (E / D) (F / D)
Employees
Male 67 67 100 25 37.31 61 61 100 20 32.79
Female 4 4 100 0 0 5 5 100 1 20.00
Total 71 71 100 25 35.21 66 66 100 21 31.82
Workers
Male 214 214 100 214 100 0 0 0 0 0
Female 0 0 0 0 0 0 0 0 0 0
Total 214 214 100 214 100 0 0 0 0 0
9. Details of performance and career development reviews of employees and workers :

Total (A) No. (B) % (B / A) Total (C) No. (D) % (D / C)
Employees
Male 67 67 100 61 61 100
Female 4 4 100 5 5 100
Total 71 71 100 66 66 100
Workers
Male 0 0 0 0 0 0
Female 0 0 0 0 0 0
Total 0 0 0 0 0 0
90
10. Health and safety management system :

a. Whether an occupational health and safety management system has been implemented by the
entity? (Yes/ No). If yes, the coverage of such system.
The health and safety management systems covers activities across all locations and ensures maintaining
and improving employees’ health and safety.
b. What are the processes used to identify work-related hazards and assess risks on a routine and
non-routine basis by the entity?
The Company follows following steps to identify work-related hazards and risk assessment :
a. Safety visits, which involve regular inspections of the workplace to identify potential hazards and
unsafe practices.
b. Elimination of Commonly Accepted Unsafe Practices.
c. Third Party Safety Audits.
c. Whether you have processes for workers to report the work-related hazards and to remove
themselves from such risks ? (Y/N)
Yes. The Company has put in place Safety Observation and Near Miss Reporting System.
d. Do the employees / workers of the entity have access to non-occupational medical and healthcare
services? (Yes/ No)
All the employees are offered a variety of health and wellness benefits, including medical insurance and
accident insurance. Regular medical consultation is provided on weekly basis.
11. Details of safety related incidents, in the following format :
Safety Incident / Number Category FY 2022-23 FY 2021-22
Lost Time Injury Frequency Rate (LTIFR) Employees 0 0

(per one million person hours worked)
Workers 0 0
Total recordable work related injuries Employees 0 0
Workers 0 0
No. of fatalities Employees 0 0
Workers 0 0
High consequence work-related injury or Employees 0 0

ill-health (excluding fatalities)
Workers 0 0
12. Describe the measures taken by the entity to ensure a safe and healthy work place.
The Company considers employees as its most valued asset and hence prioritizes their health and safety. The
Company has created extensive compliant measures at all touch points to safeguard everyone’s safety in the
work place and ensure safe working environment. The Company has taken the following measures to ensure
a safe and healthy work place :
a. The Company has taken measures which are compliant with all statutory preventive healthcare and
occupational health and safety requirements.
b. The Company provides training on health and safety measures to all employees on a periodic basis.
13. Number of Complaints on the working conditions, health and safety made by employees and workers :
No complaints were made by any employee or worker, on the working conditions and / or health and safety
practices of the Company.
91
14. Assessments for the year :
% of your plants and offices that were assessed

(by entity or statutory authorities or third parties)
Health and safety practices 100 %
Working Conditions 100 %
15. Provide details of any corrective action taken or underway to address safety related incidents (if any)
and on significant risks / concerns arising from assessments of health & safety practices and working
conditions.
Safety related incidences, if any, are studied in detail by internal / external audits. Corrective and preventive
action plans are implemented to avoid re-occurrence of similar incidents.
Principle 4 : Businesses should respect the interests of and be responsive to all its stakeholders
1. Describe the processes for identifying key stakeholder groups of the entity.
Internal and External group of stakeholders have been identified. Presently the said stakeholders’ group have
the immediate impact on the working and operations of the Company which includes employees, investors,
suppliers and service providers, customers and community.
2. List stakeholder groups identified as key for your entity and the frequency of engagement with each
stakeholder group.
Stakeholder Whether Channels of Frequency of Purpose and scope of

Group identified as communication engagement engagement including key
Vulnerable (Email, SMS, (Annually / Half topics and concerns raised
and Newspaper, yearly / Quarterly during such
Marginalized Pamphlets, / others – please engagement
Group Advertisement, specify)
(Yes / No) Community
Meetings, Notice Board,
Website), Other
Employees No Online portals, Ongoing • Help the employees to
Conferences, Open House expand their knowledge in
briefing, the industry.
workshops • Inform about important
advances of the Company.
• Getting employee feedback
and resolving their issues.
Investors No Annual Report, Annually, Investors prefer to invest in the

Company’s Website, Quarterly, organizations that are
Quarterly & Annual Results, Periodically as compliant with applicable laws.
Annual General Meeting applicable
Suppliers No Supplier and Vendor meets Periodically Supply of materials and

and Workshops & Trainings services
Service Code of Conduct
providers
Customers No Personal visits, Plant visits, Periodically Sale of materials and services,
Emails, product quality and availability,
Conferences and events responsible manufacturing.
Community No Personal meetings / Periodically CSR obligations

training / workshops
92
Principle 5 : Businesses should respect and promote human rights.
1. Employees and workers who have been provided training on human rights issues and policy(ies) of the
entity, in the following format :

Total (A) No of employees / % Total No of employees %
workers (B / A) (C) / workers (D / C)
covered (B) covered (D)
EMPLOYEES
Permanent 70 70 100 66 66 100
Other than permanent 1 1 100 0 0 0
Total Employees 71 71 100 66 66 100
WORKERS
Permanent 0 0 0 0 0 0
Other than permanent 214 214 100 0 0 0
Total Workers 214 214 100 0 0 0
2. Details of minimum wages paid to employees and workers, in the following format :

Total (A) Equal to Minimum More than Total (D) Equal to Minimum More than
Wage Minimum Wage Wage Minimum Wage
No. % No. % No. % No. %
(B) (B/A) (C) (C /A) (E) (E/D) (F) (F/D)
EMPLOYEES
Permanent
Male 66 0 0 66 100 61 0 0 61 100
Female 4 0 0 4 100 5 0 0 5 100
Other than Permanent
Male 1 0 0 1 100 0 0 0 0 0
Female 0 0 0 0 0 0 0 0 0 0
WORKERS
Permanent
Male 0 0 0 0 0 0 0 0 0 0
Female 0 0 0 0 0 0 0 0 0 0
Other than Permanent
Male 214 62 28.97 152 71.03 0 0 0 0 0
Female 0 0 0 0 0 0 0 0 0 0
93
3. Details of remuneration / salary / wages, in the following format :

Male Female
Number Median remuneration / Number Median remuneration
salary / wages of / salary / wages of
respective category respective category
( ` in Million) ( ` in Million)
Board of Directors (BoD)
1 116.47 0 0
(Only Executive Directors)
Key Managerial Personnel
6 9.27 1 7.05
(includes VPs and above)
Employees other than BoD and KMP 60 1.50 3 1.14
Workers (Permanent) 0 0 0 0
4. Do you have a focal point (Individual / Committee) responsible for addressing human rights impacts or
issues caused or contributed to by the business? (Yes/No)
The Company has formulated a Human Rights Policy which states that the employees can address their
complaints or grievances to the Human Resource Department. There shall be no retaliation taken against any
employee who raises concern in accordance with the policy. Human Resource Department is responsible to
investigate the reported issues and ensure that they are addressed and rectified.
5. Describe the internal mechanisms in place to redress grievances related to human rights issues.
The Company is actively involved in the protection and enhancement of human rights and is fully committed
in promoting inclusivity and equality and prohibiting any discrimination. The Company has formulated Human
Rights Policy which works in combination with the Grievance Policy to ensure that grievances are addressed
promptly and effectively.
6. Number of Complaints on the following made by employees and workers :
FY 2022-23 FY 2021-22
Filed Pending Remarks Filed Pending Remarks
during the resolution at during the resolution at
year the end of year the end of
year year
Sexual Harassment 0 0 — 0 0 —
Discrimination at workplace 0 0 — 0 0 —
Child Labour 0 0 — 0 0 —
Forced Labour /
0 0 — 0 0 —
Involuntary Labour
Wages 0 0 — 0 0 —
Other Human Rights related
0 0 — 0 0 —
issues
7. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment
cases.
The Company has put in place a robust grievance redressal process for investigation of employee concern and
has instituted a code of conduct and employee service rules, that clearly describes employee responsibility
and acceptable employee conduct. The details of complainant, if any, are kept confidential and the complainant
is protected from any discrimination / harassment till the issue is resolved.
8. Do human rights requirements form part of your business agreements and contracts? (Yes / No)
Yes, human rights requirements form part of Supplier Code of Conduct, whereby suppliers are insisted to
respect human rights standards and work towards them in all business activities.
94
9. Assessments for the year :

% of your plants and offices that were assessed
(by entity or statutory authorities or third parties)
Child labour
Forced / involuntary labour
Sexual harassment 100
Discrimination at workplace
Wages
10. Provide details of any corrective actions taken or underway to address significant risks / concerns
arising from the assessments at Question 9 above
The Plant and Offices of the Company were found to be having no negative impacts and as a result, no
corrective actions were required on the criteria stated above.
Principle 6 : Businesses should respect and make efforts to protect and restore the environment
1. Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format :
Parameter Unit FY 2022-23 FY 2021-22
Total electricity consumption (A) GJ 359,869 386,752
Total fuel consumption (B) GJ 4,748,538 4,506,566
Energy consumption through other sources (C) GJ 0 0
Total energy consumption (A+B+C) GJ 5,108,407 4,893,318
Energy intensity per rupee of turnover
GJ / ` in Million 0.00026 0.00028
(Total energy consumption / turnover in rupees)
Note : Indicate if any independent assessment / evaluation / assurance has been carried out by an external agency?
(Y/N) If yes, name of the external agency.
No
2. Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance,
Achieve and Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under
the PAT scheme have been achieved. In case targets have not been achieved, provide the remedial action
taken, if any.
No
3. Provide details of the following disclosures related to water, in the following format :
Parameter FY 2022-23 FY 2021-22
Water withdrawal by the source in Kilolitres (KLs)
i) Surface Water 1,101,531 1,385,024
ii) Ground water 0 0
iii) Third party water 0 0
iv) Sea water / Desalinated water 0 0
v) Other 0 0
Total volume of water withdrawal

1,101,531 1,385,024
(in Kilolitres) (i + ii + iii + iv + v)
Total volume of water consumption

709,489 804,831
(in Kilolitres)
Water intensity per rupee of turnover

0.000037 0.000047
(Water consumed / turnover)
95
4. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage
and implementation.
Yes, the Company acknowledges the importance of effective water resource management both inside and outside
of its operational sites. The Company is committed to improving water use efficiency while ensuring that water is
available to all stakeholders. The Company, at its plant at Hospet, operates a Wastewater Treatment System since
it is a Zero Liquid Discharge (ZLD) plant. The said system treats 100% of waste water into re-usable water. The
treated wastewater is then used to reduce the consumption of freshwater and also used in various areas of the
Plant like recreational garden.
5. Please provide details of air emissions (other than GHG emissions) by the entity, in the following format :
NOx µgm/m3 16.67 13.47

3
SOx µgm/m 16.53 13.75
Particulate matter (PM) µgm/m3 43.64 39.55
Persistent organic pollutants (POP) — — —
Volatile organic compounds (VOC) — — —
Hazardous Air Pollutants (HAP) — — —
Note : Indicate if any independent assessment / evaluation / assurance has been carried out by an external
agency? (Y/N) If yes, name of the external agency.
No.
6. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) and its intensity, in the
following format :

Total Scope 1 emissions (Break-up of the GHG into Metric tonnes of
592,624 568,654
CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if available) CO2 equivalent
Total Scope 2 emissions (Break-up of the GHG into Metric tonnes of
21,876 39,665
CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if available) CO2 equivalent
Total Scope 1 and Scope 2 emissions per rupee of Metric tonnes of
turnover CO2 equivalent / 0.000032 0.000035
rupee turnover
Yes. Deutsch Quality Systems (India) Private Limited.
7. Does the entity have any project related to reducing Green House Gas emission? If yes, then provide details.
The Company is dedicated to taking action to address climate change and to make a positive contribution to the
environment and communities in which it operates. The Company used 5.736 Cr units of renewable energy to
replace equivalent amount of units from Karnataka Power Transmission Corporation Limited (KPTCL) Grid Power.
Various other initiatives include introduction of Energy Efficient Pump for mould and spray cooling in caster that
saves power. Energy saving is also achieved by installing VFD in Sinter cooler motor, for adjusting speed with sinter
discharge temperature.
96
8. Provide details related to waste management by the entity, in the following format :
Parameter FY 2022-23 FY 2021-22

Total Waste Generated (in metric tonnes)
Plastic waste (A) 0 0
E-waste (B) 10.25 8.90
Bio-medical waste (C) 0.005 0.005
Construction and Demolition Waste (D) 0 0
Battery waste (E) 178 60
Radioactive waste (F) 0 0
Other Hazardous waste (Used Oil / Waste Oil) (G) 0.264 KL 4.55 KL
Other Non-hazardous waste generated (H)
442,401 442,949
Please specify, if any. (Break-up by composition i.e. by
materials relevant to the sector)
i) Granulated Slag 237,868 246,344

ii) MBF Slag 1,651 3,375
iii) Skull Powder 1,157 1,313
iv) Pig Iron Scrap 12,600 15,808
v) GCP Dust 11,635 13,395
vi) RMS Mill Scale 4,129 4,837
vii) RMS Cut ends 9,034 8,992
viii) Thickener Sludge 1,422 4,497
ix) Iron Ore Fines 134,266 118,595
x) Coke Fines 28,639 25,793
Total (A+B + C + D + E + F + G + H) 442,589 MTs and 0.264 KL 443,018 MTs and 4.55 KL
For each category of waste generated, total waste recovered through recycling, re-using or other recovery operations (in
metric tonnes)
Category of Waste
(i) Recycled 0 0
(ii) Re-used 181,213 158,697
(iii) Other recovery operations 0 0
Total 181,213 158,697
For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)
Category of Waste
(i) Incineration 0 0
(ii) Landfilling 0 0
(iii) Other disposal operations 237,625 245,854
Total 237,625 245,854
No
9. Briefly describe the waste management practices adopted in your establishments. Describe the strategy
adopted by your company to reduce usage of hazardous and toxic chemicals in your products and processes
and the practices adopted to manage such wastes.
Hazardous wastes and other wastes that include e-waste, are stored in a designated place and they are safely
disposed as per the norms laid by Karnataka State Pollution Control Board (KSPCB).
97
10. If the entity has operations / offices in / around ecologically sensitive areas (such as national parks, wildlife
sanctuaries, biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.)
where environmental approvals / clearances are required, please specify details in the following format :
Not Applicable.
11. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws,
in the current financial year :
Not Applicable
12. Is the entity compliant with the applicable environmental law / regulations / guidelines in India; such as the
Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment
Protection Act and rules thereunder (Y/N). If not, provide details of all such non-compliances, in the following
format :
The Company is in compliance with all applicable environmental laws.
PRINCIPLE 7 : Businesses, when engaging in influencing public and regulatory policy, should do so in a manner
that is responsible and transparent.
1. a. Number of affiliations with trade and industry chambers / associations :
The Company is a member of 8 Trade Associations.
b. List the top 10 trade and industry chambers / associations (determined based on the total members of such
body) the entity is a member of / affiliated to
Sr. Name of the trade and industry chambers / Reach of trade and industry chambers /
No. associations associations (State / National)
1. Confederation of Indian Industry National
2. The Alloy Steel Producers Association of India National
3. Associated Chamber of Commerce & Industries of India National
4. Indian Stainless Steel Development Association National
5. Steel Furnace Association of India National
6. Engineering Export Promotion Council National
7. Federation of Indian Export Association National
8. Thane Belapur Industrial Association State
2. Provide details of corrective action taken or underway on any issues related to anti-competitive conduct
by the entity, based on adverse orders from regulatory authorities.
There were no incidents of anti-competitive behaviour, abuse of dominant position or unfair trade practices
involving the Company during the reporting period i.e. FY 2022-23.
PRINCIPLE 8 : Businesses should promote inclusive growth and equitable development.
1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable
laws, in the current financial year.
Not Applicable
2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being
undertaken by your entity, in the following format :
Not Applicable
98
3. Describe the mechanisms to receive and redress grievances of the community.

The Company has regular engagement with key community institutions and representatives from key
neighbourhood areas. The Company has provided e-mail ID and drop box system for grievance redressal, to
enable the stakeholders to easily communicate their concerns and suggestions.
4. Percentage of input material (Inputs to total inputs by value) sourced from suppliers :
FY 2022-23 FY 2021-22
Directly sourced from MSMEs / small producers 2.72% 0.71%
Sourced directly from within the district and neighbouring district 29.86% 27.04%
PRINCIPLE 9 : Businesses should promote inclusive growth and equitable development
1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback.
Customer complaints are captured through e-mails and personal meetings and the same are addressed as
per documented procedure.
2. Turnover of products and / services as a percentage of turnover from all products / service that carry
information about Environmental and social parameters relevant to the product, Safe and responsible
usage, Recycling and / or safe disposal :
Not Applicable
3. Number of consumer complaints in respect of the following :
FY 2022-23 FY 2021-22
Received Pending Remarks Received Pending Remarks
during the resolution at during the resolution at
year end of year year end of year
Data Privacy 0 0 — 0 0 —
Advertising 0 0 — 0 0 —
Cyber Security 0 0 — 0 0 —
Delivery of essential services 0 0 — 0 0 —
Restrictive Trade Practices 0 0 — 0 0 —
Unfair Trade Practices 0 0 — 0 0 —
4. Details of instances of product recalls on account of safety issues :
Not Applicable
5. Does the entity have a framework / policy on cyber security and risks related to data privacy? (Yes/No)
If available, provide a web-link of the policy.
The Company has a formal policy on Data Protection and Privacy and a copy of the same is available on the
Intranet of the Company.
6. Provide details of any corrective actions taken or underway on issues relating to advertising and delivery
of essential services; cyber security and data privacy of customers; re-occurrence of instances of product
recalls; penalty / action taken by regulatory authorities on safety of products / services.
Not Applicable
99
INDEPENDENT AUDITOR’S REPORT

on the Audit of the Ind AS Financial Statements
To the Members of Kalyani Steels Limited
Opinion
We have audited the accompanying financial statements of Kalyani Steels Limited (“the Company”), which comprise
the Balance Sheet as at March 31, 2023, the Statement of Profit and Loss (including Other Comprehensive Income),
the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date, and notes
to the Financial Statements including summary of the significant accounting policies and other explanatory
information. These financial statements include the Company’s proportionate share of a Joint Operation.
In our opinion and to the best of our information and according to the explanations given to us and based on the
consideration of report of the other auditor on financial statements of the Joint Operation, the aforesaid financial
statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and
give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of
the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (“Ind AS”) and other
accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, its
profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the Ind AS financial statements in accordance with the Standards on Auditing (SAs)
specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in
the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent
of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India
(ICAI) together with the ethical requirements that are relevant to our audit of the financial statements under the
provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence obtained by
us along with the consideration of the report of the other auditor referred to in the “Other Matters” paragraph is
sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
financial statements of the current period. These matters were addressed in the context of our audit of the financial
statements as a whole and in forming our opinion thereon, we do not provide a separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated in our report.
Sr. No. Key Audit Matter How our audit addressed the Key Audit Matter
1. Accounting of joint operation
As explained in Note 2.A.3, the Company’s As part of our audit procedures :
composite steel manufacturing facility l We have obtained the said strategic alliance
at Ginigera is under a strategic alliance agreement and read the terms and conditions
arrangement with a joint venture partner. The mentioned therein.
l Assessed the management’s judgement of
facility is managed by Hospet Steels Limited.
The alliance confers Kalyani Steels Limited (KSL) concluding the arrangement as joint operation as
per the principles laid down under Ind AS 111.
and Mukand Limited (ML) with rights to assets,
l We have tested the controls and procedures
obligations for liabilities, sharing of expenses
established by the management relating to
/ profit / loss in the proportion of product accounting of joint venture.
sharing ratio (viz. 41.38% by KSL and 58.62% l Read report of the auditors of the joint operation.
by ML). Thus, KSL and ML have right to the Further, obtained confirmation from auditors
assets and obligations for the liabilities of this of the joint operation on specific procedures
arrangement. performed and outcome thereof in respect of
The strategic alliance is a joint arrangement in significant accounting matters, significant events
the nature of joint operation and accordingly, and unusual transactions.
the Company has recognized its share of The accounting for joint operation requires the
revenue and expenses and assets and liabilities Company to recognize only its share of expenses
from joint operation in its separate financial from the joint operation, therefore we have verified
statements. Due to the nature and complexities if the amount charged to ML (joint venture partner)
involved in accounting of strategic alliance are as per the terms and conditions of strategic
arrangement as joint operation, this is a key alliance arrangement and have been offset against
audit matter. the respective expense line items. Similarly, the
expenses incurred by the ML (joint venture partner)
and charged to the Company have been reclassified
to the respective expense line items based on the
nature of such expense.
100
Sr. No. Key Audit Matters How our audit addressed the Key Audit Matter
2. Valuation of inventory
As on March 31, 2023, the Company has inventory As a part of our audit procedures over valuation
of INR 3,239.01 Million as disclosed in Note 9. of inventory we have performed the following
The inventory is valued at cost or net realizable value procedures :
whichever is lower. Costs include direct materials l assessed the design and performed tests of the
and labour and a proportion of manufacturing
design and operating effectiveness of the key
overheads based on normal operating capacity
but does not include borrowing costs. Cost of controls over inventory valuation.
work-in-progress and finished goods are l obtained understanding of production process at
determined on a weighted average basis. each stage.
The Company’s composite steel manufacturing l obtained and tested on sample basis the process
involves processes such as Mini Blast Furnace cost of each production process.
(MBF), Steel Melting Shop (SMS) and Rolling Mill l verified the calculations, accounting of joint and
Shop (RMS). Production is carried out continuously, by-product and allocation basis of overhead as
by way of the simultaneous, standardized, and per costing principles.
sequential process. The output of a process is the l tested the assumptions such as allocation
input of another. The production from the last
process is transferred to finished stock. Both direct percentages of fixed and variable overheads and
and indirect costs are charged to the processes. yield rate at each production stage with source
Production results in joint and by-products. data.
Losses, both normal and abnormal losses, occur l Further, we have tested on sample basis, net
at different stages of production, which are also realizable value of finished goods based on
taken into consideration while calculating the unit subsequent sale value.
cost. l We have also checked the aging report for
Considering the calculation of process cost at each identification of non-moving / slow moving
stage, accounting of joint product and by-product, finished goods on a sample basis.
normal / abnormal losses and allocation of
l Analytical review of production quantity and cost
overheads, the valuation of inventory is regarded
as a key audit matter. of finished goods.
Information Other than the Financial Statements and Auditor’s Report Thereon
The Company’s Board of Directors is responsible for the preparation of the other information. The other information
comprises the information included in the Management Discussion and Analysis, Board’s Report including Annexures
to Board’s Report, Corporate Governance and Shareholder’s Information and other information included in the
Company’s annual report but does not include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial statements, or our
knowledge obtained during our audit or otherwise appears to be materially misstated. If, based on the work we have
performed, and based on the work done / audit report of the other auditor, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management’s and Board of Directors’ for the Financial Statements
The Company’s Management and Board of Directors are responsible for the matters stated in Section 134(5) of
the Act with respect to the preparation of these financial statements that give a true and fair view of the financial
position, financial performance, total comprehensive income, changes in equity and cash flows in accordance with
the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified
under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and
detecting frauds and other irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and presentation of the financial statements that give a true
and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the ability of each Company to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
The respective Board of Directors of the Company and its joint operation are also responsible for overseeing the
financial reporting process of each company.
101
Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also :
l Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
l Obtain an understanding of internal financial controls relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also
responsible for expressing our opinion on whether the Company has an adequate internal financial controls
system in place and the operating effectiveness of such controls.
l Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
l Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Company or its Joint Operation to cease to continue as a going
concern.
l Evaluate the overall presentation, structure, and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
l Obtain sufficient appropriate audit evidence regarding the financial information of the Company and
its Joint Operation to express an opinion on the Financial Statements. For the joint operation included
in the Financial Statements, which have been audited by the other auditor, such other auditor remains
responsible for the direction, supervision and performance of the audits carried out by them. We remain
solely responsible for our audit opinion. Our responsibilities in this regard are further described in the
section titled “Other Matters” in this audit report.
Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes
it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be
influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work
and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the
financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in
our report because the adverse consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
102
Other Matters
1. The financial statements of the Company for the year ended March 31, 2022 were audited by another firm
of Chartered Accountants under the Companies Act, 2013 who expressed an unmodified opinion, vide their
separate reports on financial statements dated May 12, 2022.
2. We did not audit the financial information of joint operation included in the financial statements on proportionate
basis whose financial statements reflect total revenue of ` Nil, total comprehensive income / loss of ` Nil for the
year ended March 31, 2023 and Company’s share of expenditure of ` 881.32 Million. The joint operation has
total assets of ` 292.02 Million as on March 31, 2023 and net cash (Inflow) of ` 21.78 Million for the year ended
March 31, 2023.
The financial statements of this joint operation has been audited by the other auditor whose report has been
furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of this
joint operation, is based solely on the report of such other auditor.
3. Lord Ganesha Minerals Private Limited (LGMPL), sole subsidiary of the Company, had made voluntary application
on February 9, 2022, to the Registrar of Companies (ROC), Pune (Maharashtra), for striking off its name from the
Register of Companies, pursuant to the provisions of Section 248 of the Companies Act, 2013. The final order
of the ROC approving the application for strike-off of the name was passed on April 26, 2022. Consequently,
preparation of consolidated financial results is not applicable for the year ended March 31, 2023.
Our opinion is not modified in respect of the above matters.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit and on the consideration of report of the
other auditor on financial statements of a joint operation that was audited by the other auditor, as noted
in the “Other Matters” paragraph, we report that :
a) We have sought and obtained all the information and explanations which to the best of our knowledge
and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company and its Joint
Operation so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement
of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with
the relevant books of account.
d) In our opinion, the aforesaid financial statements comply with the Indian Accounting Standards
specified under Section 133 of the Act.
e) On the basis of the written representations received from the Directors as on March 31, 2023 taken
on record by the Board of Directors and the report of other auditor of the Joint Operation, none of the
Directors is disqualified as on March 31, 2023 from being appointed as a Director in terms of Section
164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company
and its Joint Operation and the operating effectiveness of such controls, refer to our separate
Report in “Annexure A”. Our report expresses an unmodified opinion on the adequacy and operating
effectiveness of the Company’s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11
of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of
our information and according to the explanations given to us and based on the consideration of the
report of the other auditor on financial statements of a joint operation, as noted in the “Other Matters”
paragraph :
i. The Company has disclosed the impact of pending litigations on its financial position in its financial
statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there
were any material foreseeable losses.
iii. There has been no delay in transferring the amounts required to be transferred to the Investor
Education and Protection Fund by the Company.
103
iv. With respect to clause (e) of Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as
amended :
a. The Management has represented that, to the best of its knowledge and belief, no funds have
been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the company to or in any other person(s) or entity(ies),
including foreign entities (“Intermediaries”), with the understanding, whether recorded
in writing or otherwise, that the Intermediary shall, whether, 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 on behalf of
the Ultimate Beneficiaries.
b. Management has represented, that, to the best of its knowledge and belief, no funds have been
received by the company from any persons or entities, including foreign entities (“Funding
Parties”), with the understanding, whether recorded in writing or otherwise, that the company
shall, whether, 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 provide
any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
c. Based on the audit procedures that have been considered reasonable and appropriate in
the circumstances, nothing has come to our attention that has caused us to believe that
the representations under sub-clause (i) and (ii) of Rule 11 (e) as provided under (a) and (b)
above, contain any material misstatement.
v. Dividend declared and paid during the year by the company is in compliance with Section 123 of
the Companies Act, 2013.
h) As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”) issued by the Central
Government in terms of Section 143(11) of the Act, we give in “Annexure B” a statement on the
matters specified in paragraphs 3 and 4 of the Order.
2. With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements
of Section 197(16) of the Act, as amended :
in our opinion and according to information and explanation provided to us, the remuneration paid by the
Company to its Directors is in accordance with the provisions of Section 197 of the Act and remuneration
paid to Directors is not in excess of the limit laid down under this Section. As per the report of the auditor
of the Joint Operation, the remuneration paid / provided by the Company to its Directors during the year
is in accordance with the provisions of Section 197 of the act.
For Kirtane & Pandit LLP
Chartered Accountants
Firm Registration No.105215W/W100057
Anand Jog
Partner
Pune,
Membership No.108177
April 28, 2023
UDIN : 23108177BGWNJZ4612
104
ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ Section of our report to
the Members of Kalyani Steels Limited of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub- Section 3 of Section 143
of the Companies Act, 2013 (“the Act”)
Opinion
We have audited the internal financial controls over financial reporting of Kalyani Steels Limited (“the Company”)
as of March 31, 2023 in conjunction with our audit of the Financial Statements of the Company for the year ended
on that date which includes internal financial controls with reference to financial statements of the Company’s joint
operation which is a company incorporated in India.
In our opinion, the Company and its joint operation which is a company incorporated in India has, in all material
respects, an adequate internal financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2023, based on the internal control over financial
reporting criteria established by the Company considering the essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India (the “Guidance Note”).
Management’s Responsibility for Internal Financial Controls
The Company’s Management and the Board of Directors are responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities
include the design, implementation and maintenance of adequate internal financial controls that were operating
effectively for ensuring the orderly and efficient conduct of its business, including adherence to respective
company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy
and completeness of the accounting records, and the timely preparation of reliable financial information, as required
under the Companies Act, 2013.
Auditor’s Responsibility
Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Company
based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting (the “Guidance Note”) issued by the Institute of Chartered Accountants of India
and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate
internal financial controls over financial reporting was established and maintained and if such controls operated
effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial
controls system with reference to the Financial Statements and their operating effectiveness. Our audit of internal
financial controls over financial reporting included obtaining an understanding of internal financial controls over
financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and
operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the
auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements,
whether due to fraud or error.
We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our audit
opinion on the internal financial controls system over financial reporting of the Company.
Meaning of Internal Financial Controls Over Financial Reporting
A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes
in accordance with generally accepted accounting principles. A company’s internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and expenditures of the company are
being made only in accordance with authorizations of management and Directors of the company; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of
the company’s assets that could have a material effect on the financial statements.
105
Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility
of collusion or improper management override of controls, material misstatements due to error or fraud may occur
and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting
to future periods are subject to the risk that the internal financial control over financial reporting may become
inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may
deteriorate.
Other Matter
Our aforesaid reports under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal
financial controls with reference to financial statements insofar as it relates to a Joint Operation, is based on the
corresponding report of the auditor of such Company. Our opinion is not modified in respect of this matter.

Anand Jog
Partner
Pune, Membership No.108177
April 28, 2023 UDIN : 23108177BGWNJZ4612
106
ANNEXURE “B” TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 1(h) under ‘Report on Other Legal and Regulatory Requirements’ section of our report to
the Members of Kalyani Steels Limited of even date)
(i) In respect of the Company’s fixed assets (Property, Plant and Equipment) :
(a) i) The Company has maintained proper records showing full particulars, including quantitative details
and situation of Property, Plant and Equipment.
ii) The Company has maintained proper records showing full particulars of intangible assets.
(b) The Property, Plant and Equipment are physically verified by the management according to a phased
programme designed to cover all the items over a period of four years which, in our opinion, is reasonable
having regards to size of the Company and the nature of its assets. Pursuant to the programme, a portion
of the fixed assets have been physically verified by the management during the year and no material
discrepancies have been noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the
records of the Company, the title deeds of immovable properties as disclosed in the Financial Statements
are held in the name of the Company.
(d) According to the information and explanation given to us, the Company has not revalued its Property,
Plant and Equipment or intangible assets or both during the year. Accordingly, the reporting under clause
3(i)(d) of the Order is not applicable to the Company.
(e) Based on the information and explanations furnished to us, no proceedings have been initiated on or are
pending against the Company for holding benami property under the Prohibition of Benami Property
Transactions Act, 1988 (as amended in 2016) and Rules made thereunder. Accordingly, the reporting
under clause 3(i)(e) of the Order is not applicable to the Company.
(ii) (a) The inventory, other than stocks lying with third parties, has been physically verified by the management
during the year. In our opinion, the frequency, coverage and procedure of such verification is reasonable
and appropriate. In respect of inventory lying with third parties at the year end, written confirmations
have been obtained. The discrepancies noticed on physical verification of inventory as compared to book
records were not 10% or more in aggregate for each class of inventory.
(b) During the year, the Company has been sanctioned working capital limits in excess of ` 5 crores, in
aggregate, from banks on the basis of security of current assets. The Company has filed monthly returns
or statements with such banks, which are in agreement with the books of accounts.
(iii) (a) According to the information and explanations provided to us, the Company has not provided any
guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured, to
companies, firms, Limited Liability Partnerships or any other parties during the year. The Company has
made investment in seven mutual fund schemes during the year.
(b) In respect of the aforesaid investments, the terms and conditions under which such investments were
made are not prejudicial to the Company’s interest, based on the information and explanations provided
to us.
(c) According to the information and explanation given to us and on the basis of our examination of the
records of the Company, the Company has not granted any loans or advances in the nature of loan to
Companies, Firms, Limited Liability Partnerships or other parties. Accordingly, the reporting under clause
3(iii)(c) of the Order is not applicable to the Company.
(d) According to the information and explanation given to us and on the basis of our examination of the
records of the Company, the company has not granted any loans or advances in the nature of loan to
3(iii)(d) of the Order is not applicable to the Company.
(e) According to the information and explanation given to us and on the basis of our examination of the
3(iii)(e) of the Order is not applicable to the Company.
(f) According to the information and explanation given to us and on the basis of our examination of the
3(iii)(f) of the Order is not applicable to the Company.
(iv) According to the information and explanations given to us and on the basis of our examination of the records,
the Company has not given any loans, or provided any guarantee or security as specified under Section 185
of the Companies Act, 2013 and the Company has not provided any guarantee or security as specified under
Section 186 of the Companies Act, 2013. Further, the Company has complied with the provisions of Section
186 of the Companies Act, 2013 in relation to loans given and investments made.
(v) According to the information and explanations given to us, the Company has not accepted any deposits or
amounts which are deemed to be deposits within the meaning of Sections 73, 74, 75 and 76 of the Act and the
107
Rules framed there under to the extent notified. No order has been passed by Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal for contravention of these
sections or any other relevant provision(s) of the Act and the relevant rules.
(vi) Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost
records as specified under Section 148(1) of the Act in respect of its products. We have broadly reviewed
the same and are of the opinion that, prima facie, the prescribed accounts and records have been made and
maintained. We have not, however, made a detailed examination of the records with a view to determining
whether they are accurate or complete.
(vii) (a) The Company does not have liability in respect of Service tax, Duty of excise, Sales tax and Value added tax
during the year since effective July 1, 2017, these statutory dues has been subsumed into GST.
According to the information and explanations given to us and on the basis of our examination of the
records of the Company, amounts deducted / accrued in the books of account in respect of undisputed
statutory dues including Goods and Services Tax, Provident Fund, Employees State Insurance, Income Tax,
and any other material statutory dues have been regularly deposited during the year by the Company with
the appropriate authorities, except Employee State Insurance dues for the month of March 2023 which was
delayed by two days.
According to the information and explanations given to us and on the basis of our examination of records
of the company, no undisputed amounts payable in respect of these statutory dues were outstanding as
at March 31, 2023, for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us and on the basis of our examination of the
records of the Company, statutory dues relating to Goods and Service Tax, Provident Fund, Employees
State Insurance, Income Tax, Duty of Customs or Cess or other statutory dues which have not been
deposited on account of any dispute are as follows :
Name of the statute Nature of dues Amount Period for which Forum where the
( ` in Million) the amount relates dispute is pending
Central Excise Act, 1944 Excise Duty 20.39 FY 2012-13 to 2014-15 CESTAT Bangalore
Service Tax Act, 1994 Service Tax 9.43 FY 2008-09 to 2010-11 CESTAT Bangalore
Income Tax Act, 1961 Income Tax 3.95 AY 2017-18 CIT Appeals
(viii) According to the information and explanations given to us and on the basis of our examination of the records
of the Company, the Company has not surrendered or disclosed any transactions, previously unrecorded as
income in the books of account, in the tax assessments under the Income Tax Act, 1961 as income during the
year. Accordingly, the requirement to report on clause 3 (viii) of the Order is not applicable to the Company.
(ix) (a) According to the information and explanations given to us and on the basis of our examination of the
records of the Company, the Company has not defaulted in the repayment of loans or other borrowings or
in the payment of interest to any lender.
(b) According to the information and explanations given to us and on the basis of our audit procedures, we
report that the Company has not been declared willful defaulter by any bank or financial institution or
government or government authority.
(c) In our opinion, and according to the information and explanations given to us, the term loans have been
applied, on an overall basis, for the purposes for which they were obtained.
(d) On an overall examination of the Financial Statements of the Company, no funds raised on short-term
basis have been used for long-term purposes by the Company.
(e) According to the information and explanations given to us and based on our audit procedures, the
Company has not taken any funds from any entity or person on account of or to meet the obligations of
its Joint Operation (as defined under the Act). Accordingly, clause 3(ix)(e) of the Order is not applicable.
(f) According to the information and explanations given to us and based on our audit procedures, the
Company has not raised loans during the year on the pledge of securities held in Joint Operation (as
defined under the Act). Accordingly, clause 3(ix)(f) of the Order is not applicable.
(x) (a) In our opinion and according to the information and explanations given to us, the Company had not raised
money by way of initial public offer or further public offer (including debt instruments) during the current
financial year. Accordingly, clause 3(x)(a) of the Order is not applicable.
(b) According to the information and explanation given to us and on the basis of our examination of records
of the Company, the Company has not made any preferential allotment or private placement of shares or
convertible debentures (fully, partially or optionally convertible) during the year. Accordingly, reporting on
clause 3(x)(b) of the Order is not applicable.
(xi) (a) During the course of our examination of the books and records of the Company, carried out in accordance
with the generally accepted auditing practices in India, and according to the information and explanations
108
given to us, we have neither come across any instance of material fraud by the Company or on the Company,
noticed or reported during the year, nor have we been informed of any such case by the Management.
(b) During the course of our examination of the books and records of the Company, carried out in accordance
given to us, a report under Section 143(12) of the Act in Form ADT-4, as prescribed under Rule 13 of
Companies (Audit and Auditors) Rules, 2014 was not required to be filed with the Central Government.
Accordingly, the reporting under clause 3(xi)(b) of the Order is not applicable to the Company.
(c) During the course of our examination of the books and records of the Company carried out in accordance
given to us, the Company has not received any whistle-blower complaints during the year.
(xii) As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the reporting under
clause 3(xii) of the Order is not applicable to the Company.
(xiii) The Company has entered into transactions with related parties in compliance with the provisions of Sections
177 and 188 of the Act. The details of such related party transactions have been disclosed in the Financial
Statements as required under Indian Accounting Standard 24 “Related Party Disclosures” specified under
Section 133 of the Act.
(xiv) (a) In our opinion and according to the information and explanation given to us, the Company has an internal
audit system commensurate with the size and nature of its business.
(b) The reports of the Internal Auditor for the period under audit have been considered by us.
(xv) The Company has not entered into any non-cash transactions with its Directors or persons connected with
him. Accordingly, the reporting on compliance with the provisions of Section 192 of the Act under clause 3(xv)
of the Order is not applicable to the Company.
(xvi) (a) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Accordingly, clause 3(xvi)(a) of the Order is not applicable to the company.
(b) The Company has not conducted non-banking financial / housing finance activities during the year.
Accordingly, the reporting under clause 3(xvi)(b) of the Order is not applicable to the Company.
(c) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve
Bank of India. Accordingly, clause 3(xvi)(c) of the Order is not applicable to the company.
(d) According to the information and explanations given to us, there are two Core Investment Companies
within the Group.
(xvii) The Company has not incurred cash losses in the current and in the immediately preceding financial year.
(xviii)There has been no resignation of the statutory auditors during the year and accordingly the reporting under
clause 3(xviii) of the Order is not applicable to the Company.
(xix) According to the information and explanations given to us and on the basis of the financial ratios, ageing
and expected dates of realization of financial assets and payment of financial liabilities, other information
accompanying the financial statements, our knowledge of the Board of Directors and management plans and
based on our examination of the evidence supporting the assumptions, nothing has come to our attention,
which causes us to believe that any material uncertainty exists as on the date of the audit report that the
Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due
within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to
the future viability of the Company. We further state that our reporting is based on the facts up to the date
of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a
period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.
(xx) In our opinion and according to the information and explanations given to us, there is no unspent amount
under sub-section (5) of Section 135 of the Act pursuant to any project. Accordingly, clauses 3(xx)(a) and 3(xx)
(b) of the Order are not applicable.
(xxi) In our opinion and according to the information and explanations given to us, the auditor of joint operation
company incorporated in India and included in the Financial Statements, in their report under the Companies
(Auditor’s Report) Order, 2020 (CARO) have not given any unfavourable remarks, qualifications or adverse
remarks.
Anand Jog
Partner
Pune,
Membership No.108177
April 28, 2023
UDIN : 23108177BGWNJZ4612
109
BALANCE SHEET AS AT MARCH 31, 2023

( ` in Million)
As at As at
March 31, 2023 March 31, 2022
Notes
ASSETS
Non-current assets
(a) Property, plant and equipment 3 5,991.24 3,580.03
(b) Capital work-in-progress 3 178.68 1,543.26
(c) Intangible assets 4 3.18 4.22
(d) Financial assets
(i) Equity Investment held in subsidiary and associate 5.a — —
(ii) Investments 5.b 1,461.26 1,474.60
(iii) Other financial assets 6.a 143.43 142.36
(e) Income Tax assets (net) 7 8.62 4.76
(f) Other non-current assets 8.a 16.42 250.51
Total 7,802.83 6,999.74
Current assets
(a) Inventories 9 3,239.01 2,176.11
(b) Financial assets
(i) Trade receivables 10 4,047.04 4,164.43
(ii) Cash and cash equivalents 11 105.07 221.48
(iii) Bank balances other than (ii) above 12 7,389.74 9,520.73
(iv) Other financial assets 6.b 292.78 231.49
(c) Other current assets 8.b 628.93 248.34
Total 15,702.57 16,562.58
Total Assets 23,505.40 23,562.32
EQUITY AND LIABILITIES
Equity
(a) Equity share capital 13 218.64 218.64
(b) Other equity 14
(i) Reserves and surplus 14,596.53 13,361.07
(ii) Other reserves 79.61 94.91
Total Equity 14,894.78 13,674.62
Liabilities
Non-current liabilities
(a) Financial liabilities
(i) Borrowings 15 1,849.88 1,895.18
(b) Provisions 17.a 50.59 48.82
(c) Deferred tax liabilities (net) 18 162.60 214.44
(d) Other non-current liabilities 19 38.41 63.43
Total 2,101.48 2,221.87
Carried Over 2,101.48 2,221.87

Carried Over 14,894.78 13,674.62
110
BALANCE SHEET AS AT MARCH 31, 2023

( ` in Million)
As at As at
March 31, 2023 March 31, 2022
Notes
Carried Over 14,894.78 13,674.62
Carried Over 2,101.48 2,221.87
Current liabilities
(a) Financial liabilities
(i) Borrowings 20 3,213.56 2,487.15
(ii) Trade payables 21
- total outstanding dues of micro
enterprises and small enterprises 101.02 120.87
- total outstanding dues of creditors other
than micro enterprises and small enterprises 2,516.66 4,434.34
(iii) Other financial liabilities 16 412.88 387.76
(b) Provisions 17.b 18.60 20.86
(c) Other current liabilities 22 211.12 180.52
(d) Current tax liabilities (net) 23 35.30 34.33
Total 6,509.14 7,665.83
Total liabilities 8,610.62 9,887.70
Total Equity and Liabilities 23,505.40 23,562.32
Significant Accounting Policies 1

Significant accounting judgements, estimates
and assumptions 2
The notes referred to above form an integral part of these financial statements
As per our attached Report of even date

For KIRTANE & PANDIT LLP On behalf of the Board of Directors
Anand Jog Mrs.D.R. Puranik B.M. Maheshwari R.K. Goyal B.N. Kalyani
Partner Company Chief Financial Managing Chairman
Membership No.108177 Secretary Officer Director
Membership Membership DIN : 03050193 DIN : 00089380

Number : ACS7475 Number : 047903
Pune Pune
Date : April 28, 2023 Date : April 28, 2023
111
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2023
( ` in Million)
Year ended Year ended
March 31, 2023 March 31, 2022
Notes
Income
Revenue from operations 24 18,993.54 17,060.30
Other Income 25 564.04 463.56
Total Income 19,557.58 17,523.86
Expenses
Cost of raw materials consumed 26 11,732.39 9,689.15
Purchase of traded goods 27 142.46 278.59
Manufacturing Expenses 32.a 2,863.96 2,672.66
Changes in inventories of finished goods,
work-in-progress and stock-in-trade 28 (25.17) (295.07)
Employee benefits expense 29 649.76 595.59
Finance costs 30 280.96 132.09
Depreciation and amortization expense 31 489.02 458.76
Other expenses 32.b 1,173.60 733.73
Total expenses 17,306.98 14,265.50
Profit before exceptional items and tax 2,250.60 3,258.36
Exceptional items — —
Profit before tax 2,250.60 3,258.36
Tax expense
Current tax 632.50 886.00
Deferred tax (52.42) (56.79)
Taxation in respect of earlier years 0.25 —
Total tax expense 34 580.33 829.21
Profit for the year 1,670.27 2,429.15
Other comprehensive income
Items that will not be reclassified to profit or
loss in subsequent year
(a) Re-measurement of post employment benefit plans 2.30 0.93
Tax on above (0.58) (0.87)
1.72 0.06
(b) Changes in fair value of equity instruments
(compulsorily convertible debentures) (15.30) 30.67
Total other comprehensive income for the year (net) (13.58) 30.73
Total comprehensive income for the year 1,656.69 2,459.88
Earnings per share (of ` 5/- each) 35
Basic and Diluted 38.26 55.65
Significant accounting judgements, estimates and assumptions 2
Membership No.108177 Secretary Officer Director

Pune Pune
112
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31, 2023
A. Equity Share Capital
( ` in Million)
Particulars Notes No. of shares Amount
As at March 31, 2021 43,653,060 218.64
Changes in equity share capital 13 — —
As at March 31, 2022 43,653,060 218.64
Changes in equity share capital 13 — —
As at March 31, 2023 43,653,060 218.64
B. Other Equity
( ` in Million)
Particulars Notes Reserves and Surplus Other reserve
Retained General FVTOCI Other
Earnings reserve Equity Equity
Balance As at April 1, 2021 10,840.00 419.27 64.24 11,323.51
Profit for the year 2,429.15 — — 2,429.15
Other Comprehensive Income :
Remeasurements of post-employment benefit plans
(net of tax) 0.06 — — 0.06
Changes in fair value of equity instruments
(compulsorily convertible debentures) — — 30.67 30.67
Equity Dividend for the year ended March 31, 2021 14 (327.41) — — (327.41)
Total Comprehensive Income for the year 2,101.80 — 30.67 2,132.47
Balance As at March 31, 2022 12,941.80 419.27 94.91 13,455.98
Balance As at April 1, 2022 12,941.80 419.27 94.91 13,455.98
Profit for the year 1,670.27 — — 1,670.27
Other Comprehensive Income :
Remeasurements of post-employment benefit plans
(net of tax) 1.72 — — 1.72
Changes in fair value of equity instruments
(compulsorily convertible debentures) — — (15.30) (15.30)
Equity Dividend for the year ended March 31, 2022 14 (436.53) — — (436.53)
Total Comprehensive Income for the year 1,235.46 — (15.30) 1,220.16
Balance As at March 31, 2023 14,177.26 419.27 79.61 14,676.14


Pune Pune
113
STATEMENT OF CASH FLOW FOR THE YEAR ENDED MARCH 31, 2023
( ` in Million)
March 31, 2023 March 31, 2022
A. Cash Flows from Operating Activities :
Profit before income tax 2,250.60 3,258.36

Adjustments to reconcile profit before tax to net cash flows
Depreciation and amortization 489.02 458.76
Unrealized foreign exchange loss / (gain) / etc, net 179.14 11.27
Interest expense 280.96 132.09
Profit on sale of property, plant and equipment (0.33) —
Profit on sale of Investment (4.04) (1.37)
Interest from deposits and loans (551.37) (458.55)
Provision written back (11.59) (92.50)
Fair value Loss / (Gain) on investments measured at FVTPL (1.97) (1.79)
Cash Generated from Operations before working capital changes 2,630.42 3,306.27
Adjustments for changes in working capital
(Increase) / Decrease in inventories (1,062.90) (986.66)
(Increase) / Decrease in trade receivables 117.39 (1,673.47)
(Increase) / Decrease in other assets / other financial assets (400.74) (102.25)
(Increase) / Decrease in loans — 700.00
Increase / (Decrease) in provisions 1.81 12.20
Increase / (Decrease) in trade payables (1,944.84) 2,303.02
Increase / (Decrease) in other financial liabilities 31.60 (6.57)
Increase / (Decrease) in other current liabilities 30.60 (28.94)
Increase / (Decrease) in other non-current liabilities (25.02) (10.51)
Cash generated from Operations (621.68) 3,513.09
Income taxes paid (net of refunds) (635.63) (883.28)
Net Cash Flow from Operating Activities (1,257.31) 2,629.81
B. Cash Flows from Investing Activities
Purchase of property, plant and equipment (1,114.23) (1,707.01)
Sale of assets property, plant and equipment 0.33 —
Proceeds / (Investments) in deposits (net) 2,131.47 (3,374.92)
Proceeds from sale of Investment in Mutual Fund 8,266.21 4,916.12
Purchase of Investment in Mutual Fund (8,262.17) (4,914.75)
Interest received 509.77 381.27
Net Cash Flows from Investing Activities 1,531.38 (4,699.29)
114
STATEMENT OF CASH FLOW FOR THE YEAR ENDED MARCH 31, 2023
( ` in Million)
March 31, 2023 March 31, 2022
C. Cash Flows from Financing Activities
Proceeds from borrowings including Bill Discounting 11,434.63 10,149.61
Repayment of borrowings including Bill Discounting (10,913.79) (7,472.54)
Interest paid (474.79) (172.05)
Dividend paid (436.53) (327.41)
Net Cash Flows from Financing Activities (390.48) 2,177.61
Net increase / (decrease) in cash and cash equivalents (A + B + C) (116.41) 108.13
Cash and cash equivalents at the beginning of the year (refer Note 11) 221.48 113.35
Cash and cash equivalents at the end of the year (refer Note 11) 105.07 221.48
Cash and Cash equivalents for the purpose of Cash Flow Statement
March 31, 2023 March 31, 2022
Balances with Banks (refer Note 11)
In cash credit and current accounts 105.07 221.48
Cash on Hand — —
Total 105.07 221.48
Note : The above Statement of Cash Flows has been prepared under the ‘Indirect Method’ as set out in Ind AS 7,
‘Statement of Cash Flows’.
Significant accounting policies 1

Membership No.108177 Secretary Officer Director

Pune Pune
115
NOTES FORMING PART OF FINANCIAL STATEMENTS

(All amounts are in Rupees Million, except per share data and unless stated otherwise)
Background
Kalyani Steels Limited (“the Company”) is a public limited company domiciled in India and incorporated in February,
1973 under the provisions of Companies Act, 1956. The equity shares of the Company are listed on two recognized
stock exchanges in India i.e. BSE Limited (BSE) and National Stock Exchange of India Limited (NSE). The Company
is primarily engaged in the business of manufacture and sale of Iron and Steel Products. The Company is an
integrated manufacturer of diverse range of steel products with its manufacturing facility located at Hospet Works
in Karnataka. The Registered Office of the Company is located at Mundhwa, Pune - 411 036. The CIN of the Company
is L27104MH1973PLC016350.
These financial statements for the year ended March 31, 2023 were approved by the Board of Directors and
authorized for issue on April 28, 2023.
1 Significant Accounting Policies
This note provides a list of the significant accounting policies adopted in the preparation of these financial
statements. These policies have been consistently applied to all the years presented, unless otherwise stated.
(a) Basis of preparation
(i) Compliance with Ind AS
These financial statements of the Company have been prepared in accordance with Indian Accounting
Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended
from time to time. In addition, guidance notes / announcements issued by ICAI and guidelines issued by SEBI
are also applied.
Joint operations
Certain of the Company’s activities, are conducted through joint operations, which are joint arrangements
whereby the parties that have joint control of the arrangement have rights to the assets and obligations for
the liabilities, relating to the arrangement. As per Ind AS 111 - Joint arrangements, in its financial statements,
the Company being a joint operator has recognized its share of the assets, liabilities, income and expenses of
these joint operations incurred jointly with the other partners, along with its share of income from the sale
of the output and any assets, liabilities and expenses that it has incurred in relation to the joint operation.
(ii) Historical cost convention
The financial statements have been prepared on a historical cost basis, except for the following :
Certain financial assets and liabilities (including derivative instruments) that are measured at fair value.
Defined benefit plans - plan assets measured at fair value.
(iii) Current versus non-current classification
The Company presents assets and liabilities in the Balance Sheet based on current / non-current classification.
An asset is treated as current when it is :
Expected to be realized or intended to be sold or consumed in normal operating cycle.
Held primarily for the purpose of trading.
Expected to be realized within twelve months aer the reporting period or
Cash or cash equivalents unless restricted from being exchanged or used to settle a liability for at least
twelve months aer the reporting period.
All other assets are classified as non-current.
A liability is current when :
It is expected to be settled in normal operating cycle.
It is held primarily for the purpose of trading.
It is due to be settled within twelve months aer the reporting period or
116
NOTES FORMING PART OF FINANCIAL STATEMENTS (Continued) :

There is no unconditional right to defer the settlement of the liability for at least twelve months aer the
reporting period.
The Company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities respectively.
The operating cycle is the time between the acquisition of assets for processing and their realization in cash
and cash equivalents. The Company has identified twelve months as its operating cycle.
(b) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision maker, who is responsible for allocating resources and
assessing performance of the operating segments, has been identified as the Board of Directors that makes
strategic decisions for the Company. Refer Note 44 for segment information presented.
(c) Foreign currency transactions
Functional and presentation currency
Items included in the financial statements of the Company are measured using the currency of the primary
economic environment in which the entity operates (`the functional currency’). The financial statements are
presented in Indian Rupee (INR), which is the Company’s functional and presentation currency.
Initial Recognition
Foreign currency transactions are recorded in Indian currency, by applying the exchange rate between the Indian
currency and the foreign currency at the date of transaction.
Conversion
Monetary items, designated in foreign currencies are revalued at the rate prevailing on the date of Balance
Sheet.
Exchange Differences
Exchange differences arising on the settlement and conversion of foreign currency transactions are recognized
as income or as expenses in the year in which they arise, except in cases where they relate to the acquisition
of qualifying assets, in which cases they were adjusted in the cost of the corresponding asset. On transition to
Ind AS, the Company has elected to continue the accounting policy adopted in its previous GAAP with respect
to foreign exchange differences arising on long-term foreign currency monetary items related to a depreciable
asset, existing as on March 31, 2017. Such exchange differences are adjusted to the cost of depreciable asset
and depreciated over the balance life of the asset.
(d) Revenue from Contract with Customers
Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net
of variable consideration) allocated to that performance obligation. The transaction price of goods sold and
services rendered is net of variable consideration on account of returns, trade allowances, rebates, value added
taxes & goods and services tax offered by the Company as part of the contract.
Sale of goods and rendering of services
The Company manufactures and sells a range of steel and iron product in the market. Sales are recognized
when control of the products has transferred at a point of time, being when the products are delivered to
the customer, the customer has full discretion over the channel and price to sell the products and there is no
unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the
products have been shipped to the specific location, the risks of obsolescence and loss have been transferred
to the customer and either the customer has accepted the products in accordance with the sales contract, the
acceptance provisions have lapsed or the Company has objective evidence that all criteria for acceptance have
been satisfied. The Company considers whether there are other promises in the contract that are separate
performance obligations to which a portion of the transaction price needs to be allocated.
A receivable is recognized when the goods are delivered as this is the point in time that the consideration is
unconditional because only the passage of time is required before the payment is due.
Revenue from services is recognized as the related services are performed.
117

(e) Other Income
Export Incentives
Revenue from export incentives are accounted for on export of goods if the entitlements can be estimated with
reasonable assurance and conditions precedent to claim are fulfilled.
Interest Income
Interest income from debt instruments is recognized when it is probable that the economic benefits will flow to
the Company and the amount of income can be measured reliably. Interest income is accrued on a timely basis,
by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that
exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s
net carrying amount on initial recognition.
Dividends
Dividends are recognized in profit or loss only when the right to receive payment is established, it is probable that
the economic benefits associated with the dividend will flow to the Company and the amount of the dividend
can be measured reliably.
(f) Government grants
Grants from the government are recognized at their fair value where there is a reasonable assurance that the
grant will be received and the Company will comply with all attached conditions.
Government grants relating to income are deferred and recognized in the profit or loss over the period necessary
to match them with the costs that they are intended to compensate and presented within other income.
Government grants relating to the purchase of property, plant and equipment are included in non-current
liabilities as deferred income and are credited to profit or loss on a straight-line basis over the expected lives of
the related assets and presented within other income.
(g) Taxes
Current income tax
Current tax is the amount of tax payable based on the taxable profit for the year as determined in accordance
with the applicable tax rates (i.e. enacted or substantially enacted) and the provisions of the Income Tax Act,
1961. The management periodically evaluates positions taken in returns with respect to situations in which
applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of
amounts expected to be paid to tax authorities.
Current income tax relating to items recognized in other comprehensive income is recognized in other
comprehensive income and not in statement of Profit and Loss. Management periodically evaluates positions
taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation
and establishes provisions where appropriate.
Deferred Tax
Deferred tax is provided using the Balance Sheet approach on temporary differences between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are recognized for all taxable temporary differences, except :
When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss.
In respect of taxable temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, when the timing of the reversal of the temporary differences can be controlled
and it is probable that the temporary differences will not reverse in the foreseeable future.
Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax
credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences and the carry forward of
118

unused tax credits and unused tax losses can be utilized, except :
When the deferred tax asset relating to the deductible temporary differences arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and at the time of the
transaction, affects neither the accounting profit nor taxable profit or loss.
In respect of deductible temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, deferred tax assets are recognized only to the extent that it is probable that the
temporary differences will reverse in the foreseeable future and taxable profit will be available against which
the temporary differences can be utilized.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to
be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the
extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when
the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.
Current and deferred taxes are recognized in the statement of profit and loss, except to the extent that it relates
to items recognized in other comprehensive income or directly in equity.
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 and the deferred taxes relate to the same taxable entity and the same
taxation authority.
Indirect taxes paid on acquisition of assets or on incurring expenses
Expenses and assets are recognized net of the amount of indirect taxes paid, except :
When the tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in
which case, the tax paid is recognized as part of the cost of acquisition of the asset or as part of the expense
item, as applicable.
When receivables and payables are stated with the amount of tax included, the net amount of tax recoverable
from, or payable to, the taxation authority is included as part of receivables or payables in the Balance Sheet.
(h) Leases
The determination of whether a contract is (or contains) a lease is based on the substance of the contract at the
inception of the lease. The contract is, or contains, a lease if the contract conveys the right to control the use of
an identified asset for a period of time in exchange for consideration.
Company as a lessee
At the commencement date, a lessee shall recognize a right-of-use asset and a lease liability. A lessee shall
measure the lease liability at the present value of the lease payments that are not paid at that date. The lease
payments shall be discounted using the interest rate implicit in the lease, if that rate can be readily determined.
If that rate cannot be readily determined, the lessee shall use the lessee’s incremental borrowing rate.
The Company uses the practical expedient to apply the requirements of Ind AS 116 to a portfolio of leases
with similar characteristics if the effects on the financial statements of applying to the portfolio does not differ
materially from applying the requirement to the individual leases within that portfolio.
However, when the lessee and the lessor each have the right to terminate the lease without permission from
the other party with no more than an insignificant penalty the Company considers that lease to be no longer
enforceable. Also according to Ind AS 116, for leases with a lease term of 12 months or less (short-term leases)
and for leases for which the underlying asset is of low value, the lessee is not required to recognize right-of-use
asset and a lease liability. The Company applies both recognition exemptions.
Right of use asset
Right-of-use assets, which are included under property, plant and equipment, are measured at cost less any
accumulated depreciation and if necessary, any accumulated impairment. The cost of a right-of-use asset
comprises the present value of the outstanding lease payments plus any lease payments made at or before the
commencement date less any lease incentives received, any initial direct costs and an estimate of costs to be
119

incurred in dismantling or removing the underlying asset. In this context, the Company also applies the practical
expedient that the payments for non-lease components are generally recognized as lease payments.
If the lease transfers ownership of the underlying asset to the lessee at the end of the lease term or if the
cost of the right-of-use asset reflects that the lessee will exercise a purchase option, the right-of-use asset is
depreciated to the end of the useful life of the underlying asset. Otherwise, the right-of-use asset is depreciated
to the end of the lease term.
Lease liability
Lease liabilities, which are assigned to financing liabilities, are measured initially at the present value of the lease
payments. Subsequent measurement of a lease liability includes the increase of the carrying amount to reflect
interest on the lease liability and reducing the carrying amount to reflect the lease payments made.
Lease modification
For a lease modification that is not accounted for as a separate lease, the Company accounts for the
re-measurement of the lease liability by making a corresponding adjustment to the right-of-use asset.
Company as Lessor
A lessor shall classify each of its leases as either an operating lease or a finance lease. A lease is classified as a
finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset.
A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental
to ownership of an underlying asset.
Amounts due from lessees under finance leases are recorded as receivables at the Company’s net investment in
the leases. Finance lease income is allocated to accounting periods to reflect a constant periodic rate of return
on the net investment outstanding in respect of the lease.
Where the Company is a lessor under an operating lease, the asset is capitalized within property, plant and
equipment and depreciated over its useful economic life. However, if there is no reasonable certainty that the
Company will obtain possession of the asset upon end of the lease term, the asset is depreciated over the
shorter of the estimated useful life of the asset and the lease term.
Rental income from operating lease is recognized on a straight-line basis over the term of the relevant lease
unless the payments to the lessor are structured to increase in line with expected general inflation to compensate
for the lessor’s expected inflationary cost increases or another systematic basis is available. Initial direct costs
incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset
and recognized over the lease term on the same basis as rental income. Contingent rents are recognized as
revenue in the period in which they are earned.
Effective April 1, 2019, the Company adopted Ind AS 116 “Leases” for the first time, using the modified
retrospective transition method, applied to lease contracts that are ongoing as at April 1, 2019.
(i) Cash and cash equivalents
Cash and cash equivalents in the Balance Sheet comprise cash at banks and on hand and short-term deposits
with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consists of cash and short-term
deposits, as defined above, net of outstanding bank overdras and cash credit facilities as they are considered
an integral part of the Company’s cash management.
(j) Trade receivables
Financial assets in the form of trade receivables, are initially measured at their transaction price as those do not
contain a significant financing component determined in accordance with Ind AS 115.
(k) Inventories
Cost of inventories include all costs of purchases, cost of conversion and other costs incurred in bringing the
inventories to their present location and condition.
Raw materials and components, stores and spares are valued at cost or net realizable value whichever is lower.
However, materials and other items held for use in the production of inventories are not written down below
cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Costs
are determined on weighted average basis.
120

Work-in-progress and finished goods are valued at cost or net realizable value whichever is lower. Costs includes
direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity
but does not include borrowing costs. Cost of work-in-progress and finished goods are determined on a weighted
average basis.
Materials-in-transit and materials in bonded warehouse are valued at actual cost incurred up to the date of
balance sheet.
Scrap is valued at net realizable value.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of
completion and estimated costs necessary to make the sale.
(l) Investment in subsidiary and associate
Investment in subsidiary and associate are accounted at cost less accumulated impairment.
(m) Fair value measurement
The Company measures financial instruments at fair value on initial recognition.
Fair value is the price 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 fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability takes place either :
In the principal market for the asset or liability or
In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use
when pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant
that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of
unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized
within the fair value hierarchy, described as follows, based on the lowest level inputs that is significant to the fair
value measurement as a whole :
Level 1 – Quoted (unadjusted) market prices in active markets for identical assets and liabilities.
Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable.
Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value
measurement is un-observable.
For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization at
the end of each reporting period.
External valuers are involved for valuation of significant assets, such as unquoted financial assets. Involvement
of external valuers is decided upon annually by the management. Selection criteria include market knowledge,
reputation, independence and whether professional standards are maintained. The management decides, aer
discussions with the Company’s external valuers, which valuation techniques and inputs to use for each case.
At each reporting date, the management analyses the movements in the values of assets and liabilities which
are required to be re-measured or re-assessed as per the Company’s accounting policies. For this analysis,
the management verifies the major inputs applied in the latest valuation by agreeing the information in the
valuation computation to contracts and other relevant documents.
The management also compares the change in the fair value of each asset and liability with relevant external
sources to determine whether the change is reasonable.
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For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as
explained above.
(n) Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.
(o) Financial assets
Initial recognition and measurement
All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair
value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.
However, trade receivables that do not contain a significant financing component are measured at transaction
price.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in three categories :
Financial assets at amortized cost
Financial assets at fair value through other comprehensive income (FVTOCI)
Financial assets at fair value through profit or loss (FVTPL)
Financial assets at amortized cost
A financial asset is measured at amortized cost if both following conditions are met :
The financial asset is held within a business model whose objective is to hold financial assets in order to
collect contractual cash flows and
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.
Aer initial measurement, such financial assets are subsequently measured at amortized cost using the effective
interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in other income
in the statement of profit and loss. The losses arising from impairment are recognized in the statement of profit
and loss.
Financial assets at fair value through other comprehensive income
A financial asset is measured at fair value through other comprehensive income, if both of the following criteria are
met :
The financial asset is held within a business model whose objective is achieved by both collecting contractual
cash flows and selling the financial assets and
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.
Aer initial measurement, such financial assets, until they are de-recognized or re-classified, are subsequently
measured at fair value and recognized in other comprehensive income except for interest income, gain / loss on
impairment, gain / loss on foreign exchange which is recognized in the statement of profit and loss.
Financial assets at fair value through profit or loss
A financial asset is measured at fair value through profit or loss unless it is measured at amortized cost or at fair
value through other comprehensive income.
In addition, the Company may elect to classify a financial asset, which otherwise meets amortized cost or
fair value through other comprehensive income criteria, as at fair value through profit or loss. However, such
election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred
to as ‘accounting mismatch’). The Company has not designated any financial asset as at fair value through profit
or loss.
Aer initial measurement, such financial assets are subsequently measured at fair value in the statement of
profit and loss.
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Equity Instrument
Investment in equity instrument issued by other than subsidiaries are classified as at FVTPL, unless the related
instruments are not held for trading and the Company irrevocably elects on initial recognition to present
subsequent changes in fair value in other comprehensive income.
De-recognition of financial assets
A financial asset is de-recognized when :
The contractual rights to receive cash flows from the financial asset have expired or
The Company has transferred its contractual rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a pass-through
arrangement and either :
(a) The Company has transferred substantially all the risks and rewards of the asset or
(b) The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but
has transferred control of the asset.
Impairment of financial assets
In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and
recognition of impairment loss on the following financial assets and credit risk exposure :
Financial assets that are debt instruments and are measured at amortized cost e.g. loans, debt-securities,
deposits, trade receivables and bank balance
Financial assets that are debt instruments and are measured as at FVTOCI
Lease receivables
The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivables.
The application of simplified approach does not require the Company to track changes in credit risk. Rather,
it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial
recognition.
For recognition of impairment loss on other financial assets and risk exposure, the Company determines that
whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not
increased significantly, 12 month ECL is used to provide for impairment loss. However, if credit risk has increased
significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such
that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to
recognizing impairment loss allowance based on 12 month ECL.
Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a
financial instrument. The 12 month ECL is a portion of the lifetime ECL which results from default events on a
financial instrument that are possible within 12 months aer the reporting date.
ECL is the difference between all contractual cash flows that are due to the Company in accordance with the
contract and all the cash flows that the Company expects to receive (i.e. all cash shortfalls), discounted at the
original EIR. When estimating the cash flows, an entity is required to consider :
All contractual terms of the financial instrument (including prepayment, extension, call and similar options)
over the expected life of the financial instrument. However, in rare cases when the expected life of the
financial instrument cannot be estimated reliably, then the Company is required to use the remaining
contractual term of the financial instrument.
Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual
terms.
ECL impairment loss allowance (or reversal) recognized during the period is recognized as income / expense in
the statement of profit and loss. This amount is reflected under the head “Other Expenses” in the statement of
profit and loss.
The Balance sheet presentation for various financial instruments is described below :
Financial assets measured as at amortized cost.
ECL is presented as an allowance, i.e. as an integral part of the measurement of those assets in the balance
sheet. The allowance reduces the net carrying amount. Until the asset meets write-offs criteria, the Company
does not de-recognize impairment allowance from the gross carrying amount.
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The Company does not have any purchased or originated credit-impaired (POCI) financial assets, i.e. financial
assets which are credit impaired on purchase / origination.
(p) Financial Liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss,
loans and borrowings, payables or as derivatives designated as hedging instruments in an effective hedge, as
appropriate.
All financial liabilities are recognized initially at fair value and in the case of loans and borrowings and payables,
net of directly attributable transaction costs.
The Company’s financial liabilities include trade and other payables, loans and borrowings including bank
overdras and derivative financial instruments.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below :
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities designated upon initial recognition
as at fair value through profit or loss. This category also includes derivative financial instruments entered into by
the Company that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109.
Standalone embedded derivatives are also classified as held for trading unless they are designated as effective
hedging instruments. Gains or losses on liabilities held for trading are recognized in the statement of profit and
loss.
De-recognition of financial liabilities
A financial liability (or a part of a financial liability) is de-recognized from its balance sheet when and only when,
it is extinguished i.e. when the obligation specified in the contract is discharged or cancelled or expired.
When an existing financial liability is replaced by another from the same lender on substantially different terms
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as
the de-recognition of the original liability and the recognition of an new liability. The difference in the respective
carrying amounts is recognized in the statement of profit and loss.
(q) Loans and Borrowings at amortized Cost
Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently
measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption
amount is recognized in profit or loss over the period of the borrowings using the effective interest method.
Fees paid on the establishment of loan facilities are recognized as transaction case, the fee is deferred until the
draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be
drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the period of the
facility to which it relates.
(r) Borrowing costs
General and specific borrowing costs that are directly attributable to the acquisition, construction or production
of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset
for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to
get ready for their intended use or sale. Investment income earned on the temporary investment of specific
borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for
capitalization. Other borrowing costs are expensed in the period in which they are incurred.
(s) Derivatives
The Company enters into certain derivative contracts to hedge risks which are not designated as hedges.
Such contracts are accounted for at fair value through profit or loss and are included in other income / other
expenses.
(t) Offsetting of financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a
legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or
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realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on
future events and must be enforceable in the normal course of business and in the event of default, insolvency
or bankruptcy of the Company or the counterparty.
(u) Property, plant and equipment
Property, plant and equipment are stated at cost of acquisition or construction net of accumulated depreciation
and impairment loss (if any). All significant costs relating to the acquisition and installation of property,
plant and equipment are capitalized. Such cost includes the cost of replacing part of the property, plant and
equipment and borrowings costs for long term construction projects if the recognition criteria are met. When
significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them
separately based on their specific useful lives. Likewise, when a major inspection / relining is performed, its cost
is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria
are satisfied. All other repair and maintenance costs are recognized in statement of profit and loss during the
reporting period in which they are incurred.
Subsequent costs are included in the asset’s carrying amount as recognized as a standalone asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the
Company and the cost of the item can be measured reliably. The carrying amount of any component accounted
for a standalone asset is de-recognized when replaced.
The identified components are depreciated over their useful lives, the remaining asset is depreciated over the
life of the principal asset.
Depreciation on additions is provided from the beginning of the month in which the asset is put to use.
Depreciation on assets sold, discarded or demolished during the year is being provided at their respective rates
on pro-rata basis up to the end of the month prior to the month in which such assets are sold, discarded or
demolished.
The useful lives has been determined based on technical evaluation done by the management’s expert which
are higher than those specified by Schedule II to the Companies Act, 2013, in order to reflect the actual usage
of the assets.
Depreciation is charged on the basis of useful life of assets on straight line method.
Useful life of following asset category is considered as per Schedule II of Companies Act, 2013 except MBF
Relining.
For MBF Relining, useful life is considered based on past history of usage, supported by technical evaluation.
Asset Category Life In Years
Factory Buildings 30
Office Building 60
Plant and Equipment - Continuous Process 20
Plant and Equipment - other than continuous process 13
Plant and Equipment – Power Plant 40
MBF Relining 4
Electrical Installations 10
Computers 3
Servers 6
Furniture and Fixtures 10
Office Equipment 5
Vehicles 8
Freehold land is carried at historical cost.
An item of property, plant and equipment and any significant part initially recognized is de-recognized
upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or
loss arising on de-recognition of the asset is included in the statement of profit and loss when the asset is
de-recognized.
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The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at
each financial year.
Transition to Ind AS
On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant
and equipment recognized as at April 1, 2016 measured as per the previous GAAP and use that carrying value
as the deemed cost of the property, plant and equipment.
Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition,
intangible assets are carried at cost less any accumulated amortization. Internally generated intangibles,
excluding capitalized development costs, are not capitalized and the related expenditure is reflected in statement
of profit and loss in the period in which the expenditure is incurred.
Intangible assets of computer soware is amortized over the useful economic life of six years and assessed for
impairment whenever there is an indication that the intangible asset may be impaired. The amortization period
and the amortization method for an intangible asset with a finite useful life are reviewed at each reporting
period.
Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the
net disposal proceeds and the net carrying amount of the asset and are recognized in the statement of profit
and loss when the asset is de-recognized.
Transition to Ind AS
On transition to Ind AS, the Company has elected to continue with the carrying value of all of its intangible
assets recognized as at April 1, 2016 measured as per the previous GAAP and use that carrying value as the
deemed cost of the intangible assets.
(v) Impairment of non-financial assets
The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired.
If any indication exists, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount
is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs of disposal and its value in use.
Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that
are largely independent of those from other assets or group of assets. When the carrying amount of an asset
or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable
amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no
such transactions can be identified, an appropriate valuation model is used.
Impairment losses including impairment on inventories are recognized in the statement of profit and loss.
Previously recognized impairment loss is reversed only if there has been a change in the assumptions used to
determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal is limited
so that the carrying amount of asset does not exceed its recoverable amount. Such reversal is recognized in
statement of profit and loss.
(w) Trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of financial
year which are unpaid. Trade and other payables are unsecured and are presented as current liabilities unless
payment is not due within operating cycle determined by the Company aer the reporting period.
(x) Provisions and contingent liabilities
Provisions are recognized when the Company has a present, legal or constructive obligation as a result of a
past event and it is probable that an outflow of resources will be required to settle the obligation and a reliable
estimate of the amount of the obligation can be made. Provisions are determined based on the best estimate
required to settle the obligation at the Balance Sheet date. Provisions are reviewed at each Balance Sheet date
and adjusted to reflect current best estimates.
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Provisions are measured at the present value of management’s best estimate of the expenditure required
to settle the present obligation at the end of the reporting period. The discount rate used to determine the
present value is a pre-tax rate that reflects current market assessments of the time value of money and the
risks specific to the liability. The increase in the provision due to the passage of time is recognized as interest
expense.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by
the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company
or a present obligation that is not recognized because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a
liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a
contingent liability but discloses its existence in the financial statements. A disclosure for a contingent liability
is made where there is a possible obligation arising out of past events, the existence of which will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control
of the Company or a present obligation arising out of a past event where it is either not probable that an
outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
(y) Employee Benefits
(i) Short-term Employee Benefits
The distinction between short term and long term employee benefits is based on expected timing of
settlement rather than the employee’s entitlement benefits. All employee benefits payable within twelve
months of rendering the service are classified as short term benefits. Such benefits include salaries, wages,
bonus, short term compensated absences, awards, ex-gratia, performance pay etc. and are recognized in
the period in which the employee renders the related service.
(ii) Post-Employment benefits
1. Defined Contribution plan
The Company makes payment to approved superannuation schemes, state government provident fund
scheme and employee state insurance scheme which are defined contribution plans. The contribution
paid / payable under the schemes is recognized in the statement of profit and loss during the period in
which the employee renders the related service. The Company has no further obligations under these
schemes beyond its periodic contributions.
2. Defined Benefit plan
The employees’ gratuity fund scheme is Company’s defined benefit plan. The present value of the
obligation under such defined benefit plan is determined based on the actuarial valuation using the
Projected Unit Credit Method as at the date of the Balance sheet. In case of funded plans, the fair value of
plan asset is reduced from the gross obligation under the defined benefit plan, to recognize the obligation
on a net basis.
(iii) Long term Employment benefits
The employee’s long term compensated absences are Company’s other long term benefit plans. The present
value of the obligation is determined based on the actuarial valuation using the Projected Unit Credit Method
as at the date of Balance sheet. In case of funded plans, the fair value of plan asset is reduced from the gross
obligation, to recognize the obligation on a net basis.
In regard to other long term employment benefits, the Company recognizes the net total of service costs,
net interest on the net defined benefit liability (asset) and re-measurements of the net defined benefit
liability (asset) in the statement of profit and loss.
Gratuity
The Company provides for gratuity, a defined benefit plan (the “Gratuity Plan”) covering eligible employees
in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to
vested employees at retirement, death or termination of employment, of an amount based on the respective
employee’s salary and the tenure of employment.
The liability or asset recognized in the balance sheet in respect of defined benefit gratuity plans is the
present value of the defined benefit obligation at the end of the reporting period less the fair value of plan
assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit
method.
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The present value of the defined benefit obligation is determined by discounting the estimated future cash
outflows by reference to market yields at the end of the reporting period on government bonds that have
terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost is included in employee benefit expense in the Statement
of Profit and Loss.
Remeasurements gains and losses arising from experience adjustments and changes in actuarial assumptions
are recognized in the period in which they occur, directly in other comprehensive income. They are included
in retained earnings in the statement of changes in equity and in the balance sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or
curtailments are recognized immediately in profit or loss as past service cost.
Provident Fund
The Company operates plan for its employees to provide employee benefits in the nature of provident fund.
The Company pays provident fund contributions to publicly administered provident funds as per regulations.
The Company has no further payment obligations once the contributions have been paid. The contributions
are accounted for as defined contribution plans and the contributions are recognized as employee benefit
expense when they are due.
Eligible employees receive benefits from a provident fund, which is a defined benefit plan. Both the employee
and the Company make monthly contributions to the provident fund plan equal to a specified percentage of
the covered employee’s salary.
Superannuation
Retirement benefit in the form of superannuation plan is a defined contribution plan. Defined contributions
to insurance Company for employees covered under Superannuation scheme are accounted at the rate of
15% of such employees’ basic salary, restricted to ` 150,000/- p.a. The Company recognizes expense toward
the contribution paid / payable to the defined contribution plan as and when an employee renders the
relevant service. The Company has no obligation, other than the contribution payable to the superannuation
fund.
iv) Termination benefits
Termination benefits are payable when employment is terminated by the Company before the normal
retirement date or when an employee accepts voluntary redundancy in exchange for these benefits. The
Company recognizes termination benefits at the earlier of the following dates : (a) when the Company can no
longer withdraw the offer of those benefits; and (b) when the entity recognizes costs for a restructuring that
is within the scope of Ind AS 37 and involves the payment of terminations benefits. In the case of an offer
made to encourage voluntary redundancy, the termination benefits are measured based on the number
of employees expected to accept the offer. Benefits falling due more than 12 months aer the end of the
reporting period are discounted to present value.
(z) Paid up equity
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction,
net of tax, from the proceeds.
(aa) Cash Flow Statement
Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of
transactions of a non cash nature and deferral or accruals of past or future cash receipts or payments. The cash
flows from regular operating, investing and financing activities of the Company are segregated.
(bb) Dividends
The Company recognizes a liability to make cash or non-cash distributions to equity holders of the Company
when distribution is authorized and the distribution is no longer at the discretion of the Company. As per the
corporate laws in India, a distribution is authorized when it is approved by the shareholders. A corresponding
amount is recognized directly in equity.
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(cc) Earnings per share
(i) Basic Earnings per Share
Basic earnings per share is calculated by dividing the net profit for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the financial year.
Earnings considered in ascertaining the Company’s earnings per share is the net profit for the period aer
deducting any attributable tax thereto for the period. The weighted average number of equity shares
outstanding during the period and for all periods presented is adjusted for events, such as bonus shares,
other than the conversion of potential equity shares that have changed the number of equity shares
outstanding, without a corresponding change in resources.
(ii) Diluted Earnings per Share
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable
to equity shareholders and the weighted average number of shares outstanding during the period is
adjusted for the effects of all dilutive potential equity shares.
(dd) Rounding of amounts
All amounts disclosed in these financial statements and notes have been rounded off to the nearest Million as
per the requirement of Schedule III, unless otherwise stated.
(ee) Standards issued but not effective
The Ministry of Corporate Affairs (MCA) amended the Companies (Indian Accounting Standards) Rules on
March 31, 2023 whereby certain changes to Accounting Standards apply from April 1, 2023 as below :
Ind AS 1 – Presentation of Financial Statements
The amendment requires disclosure of material accounting policies rather than significant accounting policies.
Further, the amendment provides guidance on determining material policies.
Ind AS 8 – Accounting policies, changes in accounting estimates and errors
Ind AS 8 has been amended to distinguish between changes in accounting policies and accounting estimates.
Further, the amendment defines estimates and provides examples of estimates and the relationship between
accounting policies and accounting estimates.
Ind AS 12 – Deferred taxes
Ind AS 12 has been amended to limit the scope of initial recognition exemption on recognition of deferred tax
assets and liabilities to exclude transactions that upon initial recognition result in equal taxable and deductible
temporary differences.
No significant impact on financial statements of the Company are expected as a result of these amendments.
2. Significant accounting judgements, estimates and assumptions
The preparation of the Company’s financial statements requires management to make judgments, estimates
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the
accompanying disclosures and the disclosure of contingent liabilities. This note provides an overview of the areas
that involve a higher degree of judgments or complexities and of items which are more likely to be materially
adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed
information about each of these judgments, estimates and assumptions is mentioned below.
Judgments, estimates and assumptions are continually evaluated. They are based on historical experience and
other factors, including expectations of future events that may have a financial impact on the Company and that
are believed to be reasonable under the circumstances.
A. Judgements
In the process of applying the Company’s accounting policies, management has made the following judgements,
which have the most significant effect on the amounts recognized in the financial statements :
1. Legal Contingencies
The Company has received various orders and notices from tax authorities in respect of direct and indirect
taxes. The outcome of these matters may have a material effect on the financial position, results of
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operations or cash flows. Management regularly analyzes current information about these matters and
makes judgments for providing provisions for probable contingent losses including the estimate of legal
expense to resolve the matters. In making the decision regarding the need for loss provisions, management
considers the degree of probability of an unfavorable outcome and the ability to make a sufficiently reliable
estimate of the amount of loss. The filing of a suit or formal assertion of a claim against the Company or the
disclosure of any such suit or assertions, does not automatically indicate that a provision of a loss may be
appropriate.
2. Segment Reporting
Ind AS 108 Operating Segments requires Management to determine the reportable segments for the purpose
of disclosure in financial statements based on the internal reporting reviewed by Chief Operating Decision
Maker (CODM) to assess performance and allocate resources. The standard also requires Management to
make judgments with respect to aggregation of certain operating segments into one or more reportable
segment.
The Company has determined that the Chief Operating Decision Maker (CODM) is the Board of Directors
(BoD), based on its internal reporting structure and functions of the BoD. Operating segments used to
present segment information are identified based on the internal reports used and reviewed by the BoD to
assess performance and allocate resources.
3. Joint operation
The Company’s composite Steel manufacturing facility at Ginigera is under a strategic alliance arrangement
with a joint venture partner. The facility is managed by Hospet Steels Limited. The alliance confers Kalyani
Steels Limited (KSL) and Mukand Limited (ML) with rights to assets, obligations for liabilities, sharing of
expenses / profit / loss in the proportion of product sharing ratio (viz. 41.38% by KSL and 58.62% by ML).
Thus, KSL and ML have right to the assets and obligations for the liabilities of this arrangement. Thus, the
strategic alliance is a joint arrangement in the nature of joint operation.
4. Investment in convertible debentures
The Company has invested in fully convertible debentures (FCDs) of DGM Realties Private Limited of face
value of ` 1,319.60 Million. These FCDs shall be compulsorily converted into equity shares of DGM Realties
in various tranches starting from March 29, 2024. The existing rights associated with these FCDs do not
give the Company the current ability to direct control over relevant activities of DGM Realties. Hence, these
investments are considered as investment in equity instruments and classified as fair value through OCI.
Refer Note 5(b) for further disclosures.
B. Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described below. The Company based its assumptions and estimates
on parameters available when the financial statements were prepared. Existing circumstances and assumptions
about future developments, however, may change due to market changes or circumstances arising that are
beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
1. Defined benefit plans
The cost of the defined benefit plan and other post-employment benefits and the present value of such
obligation are determined using actuarial valuations. An actuarial valuation involves making various
assumptions that may differ from actual developments in the future. These include the determination of the
discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation
and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions.
All assumptions are reviewed at each reporting date. The parameter most subject to change is the discount
rate. In determining the appropriate discount rate for plans operated in India, the management considers
the interest rates of government bonds in currencies consistent with the currencies of the post-employment
benefit obligation. The mortality rate is based on Indian Assured Lives Mortality (2012-14) Ultimate. Those
mortality tables tend to change only at interval in response to demographic changes. Future salary increases
and benefit increases are based on expected future inflation rates. Further details about employee benefit
obligations are given in Note 37.
130

2. Fair value measurement of unquoted financial instruments
When the fair values of financial assets and financial liabilities recorded in the balance sheet 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 judgement is required in establishing fair values. Judgments
and estimates include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in
assumptions about these factors could affect the reported fair value of financial instruments. See Note 39
for further disclosures.
3. Impairment of Financial Assets
The impairment provisions for financial assets are based on assumptions about risk of default and expected
loss rates. The Company uses judgement in making these assumptions and estimates the inputs to the
impairment calculation, based on the Company’s past history, existing market conditions as well as forward
looking estimates at the end of each reporting period.
4. Deferred Tax
At each balance sheet date, the Company assesses whether the realization of future tax benefits is sufficiently
probable to recognize deferred tax assets. This assessment requires the use of significant estimates with
respect to assessment of future taxable income. The recorded amount of total deferred tax asset could
change if estimates of projected future taxable income or if changes in current tax regulations are enacted.
131
Note 3 : Property, plant and equipment
( ` in Million)
132
Particulars Freehold Buildings Plant and Office Furniture Vehicles Total Capital work in
Land Machinery Equipment and Fixtures progress
Gross Block as at March 31, 2021 1,035.66 1,042.38 6,992.68 136.61 30.61 48.61 9,286.55 106.72
Additions — 8.15 178.32 17.82 0.28 13.97 218.54 1,452.69
Borrowing Cost Capitalized — — — — — — — 40.24
Transfers — — — — — — — (56.39)
Disposals / Adjustments — — — (1.25) — — (1.25) —
Gross Block as at March 31, 2022 1,035.66 1,050.53 7,171.00 153.18 30.89 62.58 9,503.84 1,543.26
Additions — 374.59 2,244.78 17.67 6.94 14.37 2,658.35 99.71
Borrowing Cost Capitalized — — 240.84 — — — 240.84 (40.24)
Transfers — — — — — — — (1,424.05)
Disposals / Adjustments — — — — — (2.75) (2.75) —
Gross Block as at March 31, 2023 1,035.66 1,425.12 9,656.62 170.85 37.83 74.20 12,400.28 178.68
( ` in Million)
Particulars Freehold Buildings Plant and Office Furniture Vehicles Total
Land Machinery Equipment and Fixtures
Accumulated Depreciation :
As at March 31, 2021 — 405.44 4,915.27 96.96 21.37 31.10 5,470.14
For the year — 39.78 397.19 9.19 2.32 6.44 454.92
Disposals / Adjustments — — — (1.25) — — (1.25)
As at March 31, 2022 — 445.22 5,312.46 104.90 23.69 37.54 5,923.81
For the year — 45.15 419.35 14.93 2.62 5.93 487.98
Disposals / Adjustments — — — — — (2.75) (2.75)
As at March 31, 2023 — 490.37 5,731.81 119.83 26.31 40.72 6,409.04
( ` in Million)
Particulars Freehold Buildings Plant and Office Furniture Vehicles Total
Land Machinery Equipment and Fixtures
Net Block
As at March 31, 2022 1,035.66 605.31 1,858.54 48.28 7.20 25.04 3,580.03
As at March 31, 2023 1,035.66 934.75 3,924.81 51.02 11.52 33.48 5,991.24
i) For Depreciation and amortization refer accounting policy (refer Note 1).
ii) The Company had adopted deemed cost exemption under Ind AS 101, on transition date April 1, 2015. The information of Gross Block and
accumulated depreciation as on April 1, 2015 is carried forward for disclosures.
iii) Capital work-in-progress as on March 31, 2023 mainly comprises construction of Heat Recovery Power Plant Auxiliary.
iv) Contractual obligations - Refer Note 36-B for disclosure of contractual commitments for the acquisition of Property, plant and equipment.
v) Property, plant and equipment pledged as security, refer Note 46.
vi) Title Deeds of Immovable properties are held in the name of the Company.
vii) The Company has not revalued any Property, plant and equipment during the year.
Note 3 : Property, plant and equipment (Contd...)
viii) Ageing Schedule for Assets under development as on March 31, 2023 :
( ` in Million)
Name of Project Less than 1 year 1-2 years 2-3 years More than 3 years Total
Heat Recovery Power Plant Auxiliary 142.78 — — — 142.78
Others 35.90 — — — 35.90
Total 178.68 — — — 178.68
ix) Completion Schedule for Projects Overdue or Exceeded Cost Estimate as on March 31, 2023 :
( ` in Million)
Heat Recovery Power Plant Auxiliary 142.78 — — — 142.78
Total 142.78 — — — 142.78
x) Ageing Schedule for Assets under development as on March 31, 2022 :

( ` in Million)
Coke Oven 1,423.71 40.58 — — 1,464.29
Sub-way Construction 54.72 9.80 — — 64.52
Others 14.45 — — — 14.45
Total 1,492.88 50.38 — — 1,543.26
133

Note 4 : Intangible assets
( ` in Million)
Particulars Computer soware
Gross block as at March 31, 2021 61.53
Additions 0.07
Disposals / Adjustments —
Additions —
( ` in Million)
Particulars Computer soware
Accumulated Amortization :
For the year 3.84
For the year 1.04
( ` in Million)
Net Block
As at March 31, 2022 4.22
As at March 31, 2023 3.18
i) Intangible Assets are amortized on Straight Line method.

ii) For Depreciation and amortization refer accounting policy (Note 1).
iii) The Company had adopted deemed cost exemption under Ind AS 101, on transition date April 1, 2015. The
information of Gross Block and accumulated depreciation as on April 1, 2015 is carried forward for disclosures.
iv) The Company has not revalued its intangible assets during the year.
Note 5 (a) : Investment in Subsidiary and Associate

( ` in Million)
Face Number of shares Amount
Particulars value As at As at As at As at
per unit March 31, March 31, March 31, March 31,
in ` 2023 2022 2023 2022
Investment in Equity Shares (Unquoted) :
Equity Shares in Associate at cost (Unquoted)
Kalyani Mukand Limited 10 1,000,000 1,000,000 10.05 10.05
10.05 10.05
Aggregate provision for impairment in value of investments 10.05 10.05
Total — —
Aggregate amount of quoted investments — —
Aggregate amount of unquoted investments 10.05 10.05
Aggregate amount of impairment in the value of investments 10. 05 10.05
134

Note 5 (b) : Non-current investments
( ` in Million)
Face Number of shares / Amount

value debentures
Particulars per unit As at As at As at As at
in ` March 31, March 31, March 31, March 31,
2023 2022 2023 2022
Investments in Preference Shares (Unquoted) :
Investments at fair value through profit or loss
10% Non-Cumulative Redeemable in Baramati Speciality Steels Limited 10 5,926,000 5,926,000 21.65 19.69
Total 21.65 19.69
Investment in Debentures (Unquoted) (fully paid up) :
Investment at fair value through other comprehensive income
0% Fully Convertible Debentures in DGM Realties Private Limited 100 13,196,000 13,196,000 1,439.61 1,454.91
Total 1,439.61 1,454.91
Total Non-current investments 1,461.26 1,474.60
Aggregate amount of quoted investments — —
Aggregate amount of unquoted investments 1,461.26 1,474.60
Aggregate amount of impairment in the value of investments — —
Note 6 : Other financial assets

a. Non-current
( ` in Million)
Particulars As at As at
March 31, 2023 March 31, 2022
Security deposits
Unsecured, considered good 125.60 125.50
Unsecured, considered doubtful 2.09 2.09
Less : Allowance for credit losses (2.09) (2.09)
Bank deposits with maturity more than twelve months under lien against
Bank Guarantee 17.83 16.86
Total 143.43 142.36
b. Current
( ` in Million)
March 31, 2023 March 31, 2022
Interest accrued on fixed deposits 268.58 221.38
Other Receivables 24.20 10.11
Total 292.78 231.49
Note 7 : Non-Current Income tax assets (net)

( ` in Million)
March 31, 2023 March 31, 2022
Tax paid in advance (net of provisions) 8.62 4.76
Total 8.62 4.76
135

Note 8 : Other assets
a. Non-current
( ` in Million)
March 31, 2023 March 31, 2022
Capital advances
Considered good 3.37 236.40
Balances with government authorities
Considered doubtful — 3.34
Less : Allowance for losses — (3.34)
Prepaid expenses 12.01 11.31
Total 16.42 250.51
No advances are due from Directors or other Officers of the Company, firms in which Director is a partner or Private
Companies in which Director is a Director or member either severally or jointly with any other person except as
disclosed in Note 38.
b. Current
( ` in Million)
March 31, 2023 March 31, 2022
Prepaid expenses 16.41 30.40
Advance to suppliers
Considered doubtful 5.15 2.52
Less : Allowance for losses (5.15) (2.52)
Balances with government authorities 64.79 92.71
Other advances (includes share of surplus funds in Joint Operation) (refer Note 37) 1.61 2.62
Total 628.93 248.34
Note 9 : Inventories
( ` in Million)
March 31, 2023 March 31, 2022
(at lower of cost or net realizable value)
Raw materials 2,241.49 1,224.97
Work-in-progress (includes items lying with third parties) 217.41 150.30
Finished goods (includes items lying with third parties) 365.44 479.55
Finished goods (in transit) 234.49 164.63
599.93 644.18
Scrap at estimated realizable value 5.49 3.18

Stores, spares etc. 174.69 153.48
Total 3,239.01 2,176.11
The value of inventories above is stated aer write down of ` 12.89 Million (March 31, 2022 : ` 9.54 Million) to net
realizable value and provision for slow moving and obsolete items.
136

a) Details of raw material inventory
( ` in Million)
As at March 31, 2023 MTs Amount
Coke / Coal / Coke Fines 66,291 1,855.92
Iron Ore / Iron Ore Fines / Mill Scale 27,624 129.82
Ferro Alloys 198.88
Others 56.87
Total 2,241.49
( ` in Million)
Coke / Coal / Coke Fines 21,589 943.56
Iron Ore / Iron Ore Fines / Mill Scale 16,928 83.73
Ferro Alloys 143.08
Others 54.60
Total 1,224.97
b) Details of work-in-progress
( ` in Million)
Blooms & Rounds 3,027 152.62
Others 64.79
Total 217.41
( ` in Million)
Blooms & Rounds 2,044 96.58
Others 53.72
Total 150.30
c) Details of finished goods

( ` in Million)
Rolled Products 11,154 599.93
Others (Scrap) 5.49
Total 605.42
( ` in Million)
Others (Scrap) 3.18
Total 647.36
137

Note 10 : Trade receivables
( ` in Million)
March 31, 2023 March 31, 2022
Trade Receivable 1,717.10 2,489.23
Receivables from related parties (refer Note 38) 2,355.43 1,700.69
Less : Allowance for doubtful debts (25.49) (25.49)
4,047.04 4,164.43
Break up of security details
Secured, considered good — —
Unsecured, considered good 4,047.04 4,164.43
Doubtful 25.49 25.49
Total 4,072.53 4,189.92
Allowance for doubtful debts (25.49) (25.49)
Total 4,047.04 4,164.43
Trade receivables which have significant increase in credit risk — —
Trade receivables - credit impaired — —
1. Trade receivable are non-interest bearing and are generally on terms of 30-90 days upon delivery.
2. The amount receivable from related parties is disclosed net of advance of ` 470 Million (March 31, 2022 : ` 470
Million) as the Company has a legally enforceable right to set off the said advance against the receivable and the
Company intends to do so.
3. For details of debts due from companies in which any director is a partner, a director or a member, refer Note 38
of related party transactions.
4. Reconciliation of Loss Allowance Provision - Trade Receivables :
( ` in Million)
Particulars
Loss Allowance as on March 31, 2021 25.49
Change in Loss Allowance —
Change in Loss Allowance —
Trade receivable ageing schedule as at March 31, 2023

( ` in Million)
Particulars Outstanding for following period from Due Date of Payment
Not Due Less than 6 6 Months 1-2 2 - 3 Years More Total
Months - 1 Year Years than 3
Years
(i) Undisputed Trade Receivables - 3,307.25 687.76 50.36 1.56 0.09 0.01 4,047.03
Considered Good
(ii) Undisputed Trade Receivables -
which have significant increase in
Credit Risk — — — — — — —
(iii) Undisputed Trade Receivables -
Credit Impaired — — — — — — —
(iv) Disputed Trade Receivables -
Considered Not Good — — — — — 25.50 25.50
(v) Disputed Trade Receivables -
(vi) Disputed Trade Receivables -
Total 3,307.25 687.76 50.36 1.56 0.09 25.51 4,072.53
Loss Allowance (25.49)
Net Trade Receivables 4,047.04
138

Trade receivable ageing schedule for the year ended March 31, 2022
( ` in Million)
Particulars Outstanding for following period from Due Date of Payment
Not Due Less than 6 6 Months 1-2 2-3 More than Total
Months - 1 Year Years Years 3 Years
(i) Undisputed Trade Receivables - 3,459.88 523.56 16.38 0.04 3.57 — 4,003.43
Considered Good
(ii) Undisputed Trade Receivables -
(iii) Undisputed Trade Receivables -
(iv) Disputed Trade Receivables -
Considered Not Good — — — — 21.89 — 21.89
(v) Disputed Trade Receivables -
(vi) Disputed Trade Receivables -
Total 3,459.88 523.56 16.38 0.04 25.46 — 4,025.32
Unbilled 164.60
Loss Allowance (25.49)
Net Trade Receivables 4,164.43
Note 11 : Cash and cash equivalents

( ` in Million)
March 31, 2023 March 31, 2022
Cash on hand — —
Balances with Banks
In current and cash credit accounts 105.07 221.48
Total 105.07 221.48
Note 12 : Bank balances other than cash and cash equivalents

( ` in Million)
March 31, 2023 March 31, 2022
Earmarked balances (unclaimed dividend accounts) 10.22 8.78
Deposits with original maturity of more than three months
but less than twelve months 7,379.52 9,511.95
Total 7,389.74 9,520.73
Note 13 : Share capital

(a) Authorised share capital
Particulars Equity Cumulative Unclassified
shares redeemable shares
preference shares
As at March 31, 2022 :
Number of shares 95,000,000 3,010,000 2,400,000
Face value per share ` 5/- ` 100/- ` 10/-
Amount ( ` in Million) 475.00 301.00 24.00
As at March 31, 2023 :

Number of shares 95,000,000 3,010,000 2,400,000
Face value per share ` 5/- ` 100/- ` 10/-
Amount ( ` in Million) 475.00 301.00 24.00
139

(b) Terms / rights attached to equity shares
The Company has only one class of issued equity shares having a par value of ` 5/- per share. Each holder
of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees.
The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing
Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled
to receive remaining assets of the Company, aer distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the shareholders.
(c) Issued and subscribed equity share capital
( ` in Million)
Particulars Number Amount
of shares
As at March 31, 2021 43,759,380 218.80
Changes in equity share capital — —
As at March 31, 2022 43,759,380 218.80
Changes in equity share capital — —
As at March 31, 2023 43,759,380 218.80
(d) Subscribed and fully paid up equity share capital
( ` in Million)
March 31, 2023 March 31, 2022
Equity Shares of ` 5/- each fully paid 218.27 218.27
Add : Forfeited Equity Shares (amount paid up) 0.37 0.37
Subscribed and paid up equity share capital 218.64 218.64
Number of Equity Shares of ` 5/- each fully paid 43,653,060 43,653,060
Add : Forfeited Equity Shares 106,320 106,320
Number of shares 43,759,380 43,759,380
(e) Details of shareholders holding more than 5% shares in the Company
Particulars Ajinkya Sundaram BF DSP Small
Investment & Trading & Investment Investment Capital
Trading Company Private Limited Limited Fund
As at March 31, 2022
% of holding 7.47% 17.79% 39.06% 8.60%
Number of shares 3,261,822 7,766,758 17,052,421 3,753,185
As at March 31, 2023
% of holding 7.47% 17.79% 39.06% 8.60%
Number of shares 3,261,822 7,766,758 17,052,421 3,753,185
(f) Details of Equity Shares held by Promoter and Promoter Group
Name of Promoter As at March 31, 2023 As at March 31, 2022 % Change
during the
No. of Shares % of total No. of Shares % of total year
shares shares
Mr.B.N. Kalyani 1,118 — 1,118 — —
Mrs.Sunita B. Kalyani 54,650 0.13 54,650 0.13 —
Mr.Amit B. Kalyani 31,644 0.07 31,644 0.07 —
Mrs.Deeksha A. Kalyani 50 — 50 — —
Mrs.Sugandha Hiremath — — 6,785 0.02 (0.02)
Mrs.Sugandha Hiremath & Mr. Jai Hiremath 3,179 0.01 1,015 — 0.01
Ajinkya Investment & Trading Company 3,261,822 7.47 3,261,822 7.47 —
Sundaram Trading & Investment Private Limited 7,766,758 17.79 7,766,758 17.79 —
Ajinkyatara Trading Company Limited 2,560 0.01 2,560 0.01 —
Lohgaon Trading Company Private Limited 70,000 0.16 70,000 0.16 —
BF Investment Limited 17,052,421 39.06 17,052,421 39.06 —
Babasaheb Kalyani Family Trust — — — — —
Total 28,244,202 64.70 28,248,823 64.71 (0.01)
140

Note 14 : Other equity
( ` in Million)
March 31, 2023 March 31, 2022
A) Reserves and Surplus
i) Retained earnings
Balance at the beginning of the year 12,941.80 10,840.00
Add : Profit for the year 1,670.27 2,429.15
Add : Other Comprehensive Income being remeasurements of
post-employment benefit plans (net of tax) 1.72 0.06
Total 1,671.99 2,429.21
Less :
Final equity dividend of previous year 436.53 327.41
Total 436.53 327.41
Balance at the end of the year 14,177.26 12,941.80
ii) General reserve
Balance at the beginning and end of the year 419.27 419.27
B) Other reserve :
FVTOCI Equity investment reserve
Balance at the beginning of the year 94.91 64.24
Fair value changes for the year (15.30) 30.67
Balance at the end of the year 79.61 94.91
Total 14,676.14 13,455.98
Nature and purpose of reserves :
i) General reserve :
Under the erstwhile Companies Act, 1956, a general reserve was created through an annual transfer of net
profit at a specified percentage in accordance with applicable regulations. Consequent to the introduction of
the Companies Act, 2013, the requirement to mandatory transfer a specified percentage of net profit to general
reserve has been withdrawn. There is no movement in general reserve during the current and previous year.
ii) FVTOCI Equity investment reserve :
The Company has elected to recognize changes in the fair value of investment in compulsorily convertible
debentures in other comprehensive income being in substance equity instruments. These changes are
accumulated within the FVTOCI investment reserve within equity. The Company will transfer amounts from
the said reserve to retained earnings when the relevant debentures are de-recognized.
iii) Dividend distribution made and proposed :
( ` in Million)
Particulars 2022-23 2021-22
Cash Dividend on Equity shares declared and paid
Final Dividend :
For the year ended March 31, 2022 : ` 10/- per equity share 436.53 327.41
(March 31, 2021 : ` 7.50/- per equity share)
Proposed dividends on Equity Shares
Final Dividend :
For the year ended March 31, 2023 : ` 10/- per equity share 436.53 436.53
(March 31, 2022 : ` 10/- per equity share)
Proposed dividend on equity shares is subject to approval of the shareholders of the Company at the Annual
General Meeting and is not recognized as a liability as at year end.
The Company has complied with the provisions of Section 123 of the Companies Act, 2013 related to dividend
declared and paid.
141

Note 15 : Non-current borrowings
( ` in Million)
March 31, 2023 March 31, 2022
Secured :
Foreign currency term loans from bank :
MUFG Bank, Ltd. Singapore (refer Note (i) below) 2,055.42 1,895.18
Total non-current borrowings 2,055.42 1,895.18
Less : amount disclosed as current maturities of non current borrowings
(refer Note 20)
MUFG Bank, Ltd. Singapore (refer Note (i) below) 205.54 —
Total current maturities of non-current borrowings 205.54 —
Total 1,849.88 1,895.18
Foreign currency term loans :

i) From MUFG Bank, Ltd. Singapore
External Commercial Borrowing (ECB) Term Loan balance outstanding, USD 25,000,000/-. The loan repayable in
ten equal quarterly instalments, repayment commencing from December 29, 2023, carrying interest at three
months USD LIBOR plus 90 bps p.a. payable quarterly.
ii) The Company has utilized the borrowings for the purpose for which they are obtained.
Details of security
Above Foreign Currency Term Loan is secured by First Pari-passu Charge on the Movable Fixed Assets of the
Company i.e. hypothecation of the entire Plant and Machineries, machinery spares, tools and accessories, furniture
and fixtures and other movable accessories both present and future, ranking pari-passu with charges created and /
or to be created in favour of Banks / Financial Institutions for their term / foreign currency loans. The Company has
registered all required charges with Registrar of Companies.
Note 16 : Other Current financial liabilities

( ` in Million)
March 31, 2023 March 31, 2022
Interest accrued but not due 16.72 9.97
Unclaimed dividend payable 10.22 8.78
Creditors for capital goods 276.45 289.67
Employee benefits payable 109.49 79.34
Total 412.88 387.76
Note 17 : Provisions
a. Non-current
( ` in Million)
March 31, 2023 March 31, 2022
Provision for employee benefits (refer Note 37)
Provision for compensated absences 50.59 48.82
Total 50.59 48.82
b. Current
( ` in Million)
March 31, 2023 March 31, 2022
Provision for employee benefits (refer Note 37)
Provision for gratuity 7.50 11.02
Provision for compensated absences 11.10 9.84
Total 18.60 20.86
142

Note 18 : Deferred tax liabilities (net)
( ` in Million)
March 31, 2023 March 31, 2022
Deferred tax liabilities
Depreciation and amortization 189.57 242.20
Total deferred tax liabilities 189.57 242.20
Deferred tax assets

Disallowance u/s 43B of the Income Tax Act 11.67 11.61
Provision for doubtful debts 6.42 6.42
Other Comprehensive income (0.58) (0.23)
Fair valuation of investment 9.46 9.96
Total deferred tax assets 26.97 27.76
Total 162.60 214.44
Changes in Deferred Tax Assets / (Liabilities) in Statement of Profit and Loss [charged / (credited) during the year]
( ` in Million)
March 31, 2023 March 31, 2022
Deferred tax liabilities
Depreciation and amortization (52.63) (49.90)
Deferred tax assets
Disallowance u/s 43B of the Income Tax Act (0.06) (2.38)
Provision for doubtful debts — (4.96)
Fair valuation of investment 0.50 0.45
Total (52.19) (56.79)
Changes in Deferred Tax Assets / (Liabilities) in Other Comprehensive income [charged / (credited) during the year]
( ` in Million)
March 31, 2023 March 31, 2022
Remeasurements of post-employment benefit plans 0.35 0.87
Total 0.35 0.87
Note 19 : Other Liabilities Non-current
( ` in Million)
March 31, 2023 March 31, 2022
Advance received as a part of strategic alliance 38.41 63.43
Total 38.41 63.43
Note 20 : Current borrowings
( ` in Million)
March 31, 2023 March 31, 2022
Unsecured borrowing from bank*
ICICI Bank Limited — 510.00
HDFC Bank Limited — 990.00
Bill Discounting with banks*** 968.26 987.15
Secured borrowing from bank*
Overdra against Bank FDs** 2,039.76 —
Current maturity of term loans from Bank 205.54 —
Total 3,213.56 2,487.15
* Borrowing carries interest rate ranges between 5.6% to 5.8% p.a.
The statement of current assets including Inventory filed by the company with banks are in agreement of books of account.
** Overdra against Fixed Deposits : The Company has availed overdra facility against Fixed Deposits (FDs) kept with various
nationalized / private sector banks. The applicable rate of interest is between 5.65% to 6.5% p.a. The overdra facility is
secured by charge on the Fixed Deposit Certificates and all charges are registered with the Registrar of Companies.
*** Bill Discounting : The Company has availed unsecured Bill Discounting facilities from various banks, which are repayable within
90 days. The applicable average interest rate is 5.5% p.a. (Previous Year 4.2% p.a.)
143

Note 21 : Trade payables
( ` in Million)
March 31, 2023 March 31, 2022
Total outstanding dues of micro enterprises and small enterprises 101.02 120.87
Total outstanding dues of creditors other than micro enterprises and small enterprises
i) Acceptances (see note (i) below) 1,202.24 2,895.02
ii) Related Parties (refer Note 38) 92.22 259.62
iii) Others 1,222.20 1,279.70
Total 2,617.68 4,555.21
i) Acceptances include credit availed by the Company from banks for payment to suppliers for raw materials
purchased by the Company. The arrangements are interest-bearing and are payable within one year.
ii) Trade payables are non interest bearing and generally settled within 90 days.
iii) The Company has compiled this information based on the current information in its possession as at March 31, 2023.
Disclosures required under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) are
given as follows :
( ` in Million)
Dues to Micro, Small and Medium Enterprises ( MSMEs) As at As at
March 31, 2023 March 31, 2022
Total amount due to MSMEs as on Balance Sheet date
- Principal amount due to MSMEs 101.02 120.87
- Interest on principal amount due to MSMEs 0.11 0.11
Total delayed payments to MSMEs during the year
- Principal amount — —
- Interest on Principal amount — —
Total amount of interest paid to MSMEs during the year — —
Total interest accrued and remaining unpaid at the end of the year under MSMED Act 0.11 0.11
The amount of further interest remaining due and payable even in the succeeding
years, until such date when the interest dues as above are actually paid to the small
enterprise, for the purpose of disallowance as a deductible expenditure under
Section 23 0.11 0.11
Trade payables ageing schedule as at March 31, 2023
( ` in Million)
Particulars Outstanding for following periods from due date of payment Total
Not Due Less than 1 year 1-2 years 2-3 years More than 3 years
(i) MSME — 101.02 — — — 101.02
(ii) Others 130.03 1,980.60 7.04 9.26 — 2,126.93
(iii) Disputed Dues - MSME — — — — — —
(iv) Disputed Dues - Others — — — — — —
Total 130.03 2,081.62 7.04 9.26 — 2,227.95
(v) Unbilled Dues* — — — — — 389.73
Total 2,617.68
* Unbilled represent accruals for expenses.
Trade payables ageing schedule as at March 31, 2022
( ` in Million)
Particulars Outstanding for following periods from due date of payment Total
Not Due Less than 1 year 1-2 years 2-3 years More than 3 years
(i) MSME — 120.87 — — — 120.87
(ii) Others 25.89 4,040.85 2.29 0.72 — 4,069.75
(iii) Disputed Dues - MSME — — — — — —
(iv) Disputed Dues - Others — — — — — —
Total 25.89 4,161.72 2.29 0.72 — 4,190.62
(v) Unbilled Dues* — — — — — 364.59
Total 4,555.21
* Unbilled represent accruals for expenses.
144

Note 22 : Other current liabilities
( ` in Million)
March 31, 2023 March 31, 2022
Statutory dues payable* 170.51 108.72
Advances from customers 15.59 12.19
Advance received as a part of strategic alliance 25.02 59.61
Total 211.12 180.52
*Statutory dues payable includes Goods and Services Tax, Tax Deducted at Source etc.
Note 23 : Current tax liabilities (net)
( ` in Million)
March 31, 2023 March 31, 2022
Provision for income tax (net of advance tax) 35.30 34.33
Total 35.30 34.33
Note 24 : Revenue from operations
( ` in Million)
Particulars Year ended Year ended
March 31, 2023 March 31, 2022
Revenue from contracts with customers
Sale of Products
Finished Goods 18,568.24 16,442.21
Traded Goods 173.43 315.38
Other Operating Revenue
Scrap Sales 228.00 202.30
Export incentives 7.20 7.17
Processing charges for job work 5.08 0.74
Provisions written back 11.59 92.50
Total 18,993.54 17,060.30
Details of finished goods sold
( ` in Million)
Year ended March 31, 2023 Quantity in MTs Amount
Pig Iron 6,126 250.74
Blooms and Rounds 11,103 888.35
Rolled Products 234,261 17,429.15
Total 18,568.24
( ` in Million)
Pig Iron 6,480 259.83
Blooms and Rounds 21,237 1,431.37
Rolled Products 207,341 14,751.01
Total 16,442.21
Details of traded goods sold
( ` in Million)
Total 173.43
( ` in Million)
Total 315.38
145

Note 25 : Other income
( ` in Million)
March 31, 2023 March 31, 2022
Interest from deposits and loans, being financial assets carried at amortized cost 551.37 458.55
Profit on sale of Investments measured at FVTPL 4.04 1.37
Profit on sale of property, plant and equipment 0.33 —
Net gain / (loss) on investments measured at FVTPL 1.97 1.79
Miscellaneous receipts* 6.33 1.85
Total 564.04 463.56
*Miscellaneous receipts includes VAT refund, rent received etc.
Note 26 : Cost of raw materials consumed
( ` in Million)
March 31, 2023 March 31, 2022
Raw material at the beginning of the year 1,224.97 595.95
Add : Purchases 12,759.95 10,320.91
Less : Sale of Raw Material 11.04 2.74
Less : Raw material at the end of the year 2,241.49 1,224.97
Total 11,732.39 9,689.15
Details of raw materials consumed

( ` in Million)
Iron Ore / Iron Ore Fines / Mill Scale 401,074 2,044.98
Ferro Alloys 1,927.67
Others 639.08
Total 11,732.39
( ` in Million)
Iron Ore / Iron Ore Fines / Mill Scale 380,396 2,677.27
Ferro Alloys 1,665.39
Others 514.14
Total 9,689.15
Note 27 : Purchases of traded goods

( ` in Million)
March 31, 2023 March 31, 2022
Rolled Products 142.46 278.59
Total 142.46 278.59
146

Note 28 : Changes in inventories of finished goods (including stock-in-trade) and work-in-progress
( ` in Million)
March 31, 2023 March 31, 2022
Inventories at the end of the year
Work in Progress 217.41 150.30
Finished Goods 599.93 644.18
Finished Goods - Traded — —
822.83 797.66
Inventories at the beginning of the year
Work in Progress 150.30 112.12
Finished Goods 644.18 387.96
Finished Goods - Traded — —
797.66 502.59
Total (25.17) (295.07)
Note 29 : Employee benefits expense
( ` in Million)
March 31, 2023 March 31, 2022
Salaries, wages and bonus 567.37 522.63
Gratuity (refer Note 37) 13.06 11.51
Contribution to provident fund and other funds* 39.75 36.66
Workmen and staff welfare expenses 29.58 24.79
Total 649.76 595.59
*Other funds includes contribution towards employee state insurance scheme and profession tax.
Note 30 : Finance costs
( ` in Million)
March 31, 2023 March 31, 2022
Interest expenses 272.69 109.87
Other borrowing costs* 8.27 22.22
Total 280.96 132.09
* Other borrowing costs includes L/C charges, Bank processing charges etc.
Note 31 : Depreciation and amortization expense

( ` in Million)
March 31, 2023 March 31, 2022
Depreciation on Property, Plant and Equipment (refer Note 3) 487.98 454.92
Amortization of intangible assets (refer Note 4) 1.04 3.84
Total 489.02 458.76
147

Note 32 : Other expenses
( ` in Million)
March 31, 2023 March 31, 2022
a) Manufacturing expenses :
Stores and spares consumed 1,351.43 1,161.02
Job work and manufacturing charges 513.77 472.15
Power and fuel 831.52 888.12
Building and road repairs 19.50 17.08
Machinery repairs 89.66 76.21
Facility charges under strategic alliance 58.08 58.08
Total (a) 2,863.96 2,672.66
b) Other expenses :
Rent (short term or low value) 0.88 2.57
Rates and taxes 2.52 2.03
Insurance 21.35 18.18
Legal and Professional charges 32.69 27.77
Travelling and conveyance 23.26 13.19
Security Services 14.11 13.52
Branding Fees 64.54 44.90
CSR expenditure (refer Note 43) 50.35 32.36
Donations 1.27 25.61
Freight outward 519.01 444.19
Brokerage and commission — 9.67
Payment to auditor (refer Note 33) 4.53 5.12
Directors’ fees and travelling expenses 2.32 1.23
Directors’ commission - provision 23.80 33.00
Loss on Foreign Exchange Fluctuation (net) 339.92 0.28
Miscellaneous expenses* 73.05 60.11
Total (b) 1,173.60 733.73
Total ( a + b ) 4,037.56 3,406.39
* Miscellaneous expenses includes printing, stationery, postage, telephone etc.
Note 33 : Payment to auditors

( ` in Million)
March 31, 2023 March 31, 2022
Statutory audit 1.50 3.68
Tax audit 0.73 0.73
Limited reviews 1.80 0.45
Certifications 0.21 0.20
Out of pocket expenses reimbursed 0.29 0.06
Total 4.53 5.12
Note 34 : Income tax expense

( ` in Million)
March 31, 2023 March 31, 2022
Current tax expense 632.50 886.00
Deferred tax expense (52.42) (56.79)
Total 580.33 829.21
148

Reconciliation of tax expense and accounting profit multiplied by statutory tax rate
( ` in Million)
March 31, 2023 March 31, 2022
Profit before tax 2,250.60 3,258.36
Applicable Statutory tax rate 25.168% 25.168%
Computed tax expense 566.43 820.06
Tax effect of amounts which are not deductible (taxable) in calculating taxable income
CSR Expenses 12.66 14.59
Interest on Income Tax 0.51 —
Others 0.48 (5.44)
Income tax expense 580.33 829.21
Note 35 : Earnings per Share

March 31, 2023 March 31, 2022
Net profit aer tax ( ` in Million) 1,670.27 2,429.15
Weighted average number of equity shares 43,653,060 43,653,060
Basic and diluted earning per share of nominal value of ` 5/- each 38.26 55.65
The Company does not have any potential equity share that would have a dilutive effect on the Earnings Per Share.
Note 36 : Contingencies and commitments
A Contingent liabilities
( ` in Million)
March 31, 2023 March 31, 2022
i) Claims against the Company not acknowledged as debts 83.47 83.47
ii) Customs duty, excise duty and service tax - matter under appeal 29.82 32.57
iii) Income tax matters under appeal 40.20 15.78
iv) Iron ore supplier - rate difference claim - disputed 255.20 255.20
v) Reimbursement for Forest Development Tax on Iron Ore claimed by supplier 33.49 33.49
vi) Forest Development Tax / Fees* 711.06 550.42
vii) Others — 1.53
Total 1,153.24 972.46
* In response to a petition filed by the iron ore mine owners and purchasers (including the Company) contesting the
levy of Forest Development Tax (FDT) on iron ore on the ground that the State does not have jurisdiction to legislate
in the field of major minerals which is a central subject, the Honourable High Court of Karnataka vide its judgement
dated December 3, 2015 directed refund of the entire amount of FDT collected by Karnataka State Government
on sale of iron ore by private lease operators and National Mineral Development Corporation Limited (NMDC). The
Karnataka State Government has filed an appeal before the Supreme Court of India (“SCI”). SCI has not granted stay
on the judgement but stayed refund of FDT. The matter is yet to be heard by SCI. Based on merits of the case and
supported by a legal opinion, the Company has not recognized provision for FDT of ` 711.06 Million as at March 31,
2023 (` 550.42 Million as at March 31, 2022) and treated it as a contingent liability.
B Capital and other commitments
( ` in Million)
March 31, 2023 March 31, 2022
1 Estimated amount of Contracts remaining to be executed on Capital Account
and not provided for (net of advances) 87.14 914.35
2 Other Commitments on account of :
a) Purchase of Raw Material through E-Auction — 23.07
b) Supply of Gases - Minimum Take over Price 261.34 319.42
Total 348.48 1,256.84
149

Note 37 : Provision for Employee benefits
( ` in Million)
March 31, 2.023 March 31, 2022
Compensated absences (refer Note A)
Non-current 50.59 48.82
Current 11.10 9.84
Gratuity (refer Note B)
Current 7.50 11.02
A) Compensated absences
The compensated absences cover the Company’s liability for privilege leave.
I) Significant assumptions
The significant actuarial assumptions were as follows :
Particulars March 31, 2023 March 31, 2022
Discount rate 7.40% 6.80%
Salary escalation rate 8.00% 8.00%
Retirement age VP and above - 60 years VP and above - 60 years
Wholetime Director - Wholetime Director -
68 years 68 years
Others - 55 years Others - 55 years
Mortality rate Indian Assured Lives Indian Assured Lives
Mortality (2012-14) Mortality (2012-14)
Ultimate Ultimate
Attrition rate 7.00% 7.00%
Hospet Steels Limited (Joint Operation)

Salary escalation rate 8.00% 8.00%
Retirement age Staff - 58 years Staff - 58 years
Workers - 60 years Workers - 60 years
Ultimate Ultimate
Attrition rate 1.00-3.00% 1.00-3.00%
B) Gratuity
The Company has formed “Kalyani Steels Limited Employees’ Group Gratuity cum Life Assurance Scheme”
to manage the gratuity obligations. The joint operation at Hospet Steels Limited has formed “Hospet Steels
Employees Gratuity Trust” to manage its gratuity obligations. The money contributed by the Company to the
fund to finance the liabilities of the plan has to be invested. The trustees of the plan have outsourced the
investment management of the fund to an insurance company - Life Insurance Corporation of India. Every
permanent employee is entitled to a benefit as per policy of the Company of the last drawn salary for each
completed year of service in line with the Payment of Gratuity Act, 1972. The same is payable at the time of
separation from the Company or retirement, whichever is earlier. The benefits vest aer five years of continuous
service. There is no compulsion on the part of the Company to fully pre fund the liability of the Plan. The
Company’s philosophy is to fund the benefits based on its own liquidity as well as level of under funding of the
plan.
150

I) The amounts recognized in balance sheet and movements in the net benefit obligation over the year are as follows :
( ` in Million)
Particulars Present value Fair value of Net
of obligation plan assets amount
April 1, 2021 134.27 (125.94) 8.33
Current service cost 11.19 — 11.19
Interest expense / (income) 8.65 (8.33) 0.32
Total amount recognized in Statement of Profit and Loss 19.84 (8.33) 11.51
Experience gain / loss 0.02 (0.95) (0.93)
Total amount recognized in Other Comprehensive Income 0.02 (0.95) (0.93)
Benefits paid (4.39) 4.39 —
Contribution — (9.17) (9.17)
Mortality — 0.66 0.66
March 31, 2022 149.74 (139.34) 10.40
Share of Surplus fund in Joint Operation refer Note 8(b) (0.62)
Provision for Gratuity refer Note 17(b) 11.02
( ` in Million)
Particulars Present value Fair value of Net
of obligation plan assets amount
April 1, 2022 149.74 (139.34) 10.40
Current service cost 12.85 — 12.85
Interest expense / (income) 10.17 (9.96) 0.21
Total amount recognized in Statement of Profit and Loss 23.02 (9.96) 13.06
Experience gain / loss (3.24) 0.94 (2.30)
Total amount recognized in Other Comprehensive Income (3.24) 0.94 (2.30)
Benefits paid (8.09) 7.50 (0.59)
Contribution — (13.40) (13.40)
Mortality — 0.33 0.33
March 31, 2023 161.43 (153.93) 7.50
Share of Surplus fund in Joint Operation refer Note 8(b) —
Provisions for Gratuity refer Note 17(b) 7.50
II) The net liability disclosed above relates to funded plans (including Joint Operations) are as follows :
( ` in Million)
Present value of funded obligation 161.43 149.74
Fair value of plan assets (153.93) (139.34)
Deficit of funded plan 7.50 10.40
III) Significant estimates :
The significant actuarial assumptions were as follows :
Salary growth rate 8.00% 8.00%
Attrition rate 7.00% 7.00%
Retirement age M1 category - 60 years M1 category - 60 years
Wholetime Director - Wholetime Director -
68 years 68 years
Others - 55 years Others - 55 years
Ultimate Ultimate
151

Hospet Steels Limited (Joint operation)
Salary growth rate 8.00% 8.00%
Attrition rate 1.00-3.00% 1.00-3.00%
Retirement age Staff - 58 years Staff - 58 years
Workers - 60 years Workers - 60 years
Ultimate Ultimate
IV) Sensitivity analysis :

The sensitivity of defined obligation to changes in the weighted principal assumptions (including Joint
Operations) is :
( ` in Million)
Assumption Impact on defined benefit obligation
March 31, 2023 March 31, 2022
Discount rate
1% decrease 9.82 10.34
1% increase (8.73) (9.13)
Future salary increase
1% decrease (7.46) (7.90)
1% increase 8.22 8.76
Attrition rate
1% decrease 0.30 0.56
1% increase (0.27) (0.51)
The above sensitivity analysis is based on a change in 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 (present
value of defined benefit obligation calculated with the Projected Unit Credit Method at the end of the reporting
period) has been applied as and when calculating the defined benefit liability recognized in the balance sheet.
The method and types of assumptions used in preparing the sensitivity analysis did not change compared to the
prior period.
The following payments are expected future benefit payments (including Joint Operations) :
( ` in Million)
Less than a year 24.13 18.80
Between 1 - 2 years 24.27 13.78
Between 2 - 5 years 74.84 76.22
Over 5 years 92.40 78.71
Total 215.64 187.51
The weighted duration of the defined obligation is 8.85 years (March 31, 2022 - 8.29 years)
V) The major categories of plan assets are as follows :

Unquoted - Insurer managed funds* 100.00% 100.00%
* The Company maintains gratuity fund, which is being administered by LIC. Fund value confirmed by LIC as at
March 31, 2023 is considered to be the fair value.
VI) The Company expects to contribute ` 7.50 Million to the gratuity fund in the next year.
152

C) Superannuation plan
The Company and its Joint Operation has formed “Kalyani Steels Limited Officers’ Superannuation Scheme” and
“Hospet Steels Limited Employees Superannuation Trust” respectively to manage its superannuation scheme
through Life Insurance Corporation of India. Contributions are made at 15% of basic salary for employees covered
under the superannuation scheme. The obligation of the Company is limited to the amount contributed and it
has no further contractual nor any constructive obligation. The expense recognized during the period towards
defined contribution plan is ` 10.96 Million (March 31, 2022 - ` 10.96 Million).
D) Risk Exposure
Through its defined benefit plan, the Company is exposed to a number of risks, the most significant of which are
detailed below :
Asset Volatility : All plan assets for gratuity and superannuation are maintained in a trust managed by a public
sector insurer viz. LIC of India. LIC has a sovereign guarantee and has been providing consistent and competitive
returns over the years. The company has opted for a traditional fund wherein all assets are invested primarily in
risk averse markets. The company has no control over the management of funds but this option provides a high
level of safety for the total corpus. A single account is maintained for both the investment and claim settlement
and hence 100% liquidity is ensured. Also interest rate and inflation risk are taken care of.
Asset volatility risk for provident fund : The plan liabilities are calculated using a discount rate set with reference
to bond yields; if plan assets underperform this yield, this will create a deficit. Most of the plan asset investments
is in fixed income fund, manages interest rate risk with derivatives to minimize risk to an acceptable level. A
portion of the funds are invested in equity securities and in alternative investments which have low correlation
with equity securities. The equity securities are expected to earn a return in excess of the discount rate and
contribute to the plan deficit. The Company has a risk management strategy where the aggregate amount of
risk exposure on a portfolio level is maintained at a fixed range. Any deviations from the range are corrected by
rebalancing the portfolio. The Company intends to maintain the above investment mix in the continuing years.
Changes in bond yields : A decrease in bond yields will increase plan liabilities, although this will be partially
offset by an increase in the value of plans’ bond holdings
Life expectancy : This is particularly significant where inflationary increases result in higher sensitivity to
changes in life expectancy.
Future salary increase and inflation risk : Since price inflation and salary growth are linked economically, they
are combined for disclosure purposes. Rising salaries will oen result in higher future defined benefit payments
resulting in a higher present value of liabilities especially unexpected salary increases provided at management’s
discretion may lead to uncertainties in estimating this increasing risk.
Asset-Liability mismatch risk : Risk arises if there is a mismatch in the duration of the assets relative to the
liabilities. By matching duration with the defined benefit liabilities, the Company is successfully able to neutralize
valuation swings caused by interest rate movements. The Company ensures that the investment positions are
managed within an asset-liability matching (ALM) framework that has been developed to achieve long-term
investments that are in line with the obligations under the employee benefit plans.
Note 38 : Related party transactions
A) Name of the related parties and nature of relationship

(i) Where control exists
Ownership interest held by the Company
Subsidiary March 31, 2023 March 31, 2022
Lord Ganesha Minerals Private Limited (see note below) — 77.50%
The principal place of business of the subsidiary is India and the Company has accounted for its investment in
subsidiary at cost.
Lord Ganesha Minerals Private Limited (LGMPL), subsidiary of the Company, had made voluntary application on
February 9,2022 to the Registrar of Companies (ROC), Pune (Maharashtra), for striking off its name from the
Register of Companies, pursuant to the provisions of Section 248 of the Companies Act, 2013. The final order
of the ROC approving the application for strike-off of the name was approved on April 26, 2022.
153

Joint operation Ownership interest held by the Company
March 31, 2023 March 31, 2022
Hospet Steels Limited 49.99% 49.99%
The principal place of business of the joint operation is India. The principal business is to act as a management
company for strategic alliance arrangement between Kalyani Steels Limited and Mukand Limited.
Other related parties
a) Structured entities
i) Kalyani Steels Limited Non Bargainable Staff Provident Fund
ii) Kalyani Steels Limited Officers Superannuation Scheme
iii) Kalyani Steels Limited Employees Group Gratuity cum Life Assurance Scheme
iv) Hospet Steels Employees Gratuity Trust
v) Hospet Steels Limited Employees Superannuation Trust
b) Enterprise wherein the Company is an Associate
BF Investment Limited
c) Associate Ownership interest held by the Company

March 31, 2023 March 31, 2022
Kalyani Mukand Limited 50.00% 50.00%
The principal place of business of the associate is India and the Company has accounted for its investment in
associate at cost.
B) Other related parties with whom transactions have taken place during the year
Entities under common control
i) Bharat Forge Limited
ii) Kalyani Technoforge Limited
iii) Kalyani Transmission Technologies Private Limited
iv) Saarloha Advanced Materials Private Limited
v) Baramati Speciality Steels Limited
vi) Kalyani Investment Company Limited
C) Promoter / Promoter Group having 10% or more shareholding
i) Sundaram Trading & Investment Private Limited
ii) BF Investment Limited
Key Management Personnel
i) Mr.B.N. Kalyani, Chairman, Promoter Non-Executive Director
ii) Mrs.Sunita B. Kalyani, Non-Executive Director
iii) Mr.Amit B. Kalyani, Non-Executive Director
iv) Mr.S.M. Kheny, Non-Executive Director
v) Mr.B.B. Hattarki, Independent Director
vi) Mr.M.U. Takale, Non-Executive Director
vii) Mr.Arun P. Pawar, Independent Director
viii) Mr.Sachin K. Mandlik, Independent Director
ix) Mr.S.K. Adivarekar, Independent Director
x) Mrs.Shruti A. Shah, Independent Director
xi) Amb.Ahmad Javed, Independent Director
xii) Mr.R.K. Goyal, Managing Director
xiii) Mr.Bal Mukand Maheshwari, Chief Financial Officer
xiv) Mrs.Deepti R. Puranik, Company Secretary
Entities in which KMPs have significant influence
i) Kalyani Strategic Management Services Private Limited
ii) Kalyani Centre for Precision Technology Limited
154

( ` in Million)
I Key management personnel compensation March 31, 2023 March 31, 2022
i) Mr.B.N. Kalyani, Chairman, Promoter Non-Executive Director 7.03 9.35
ii) Mrs.Sunita B. Kalyani, Non-Executive Director 5.02 8.02
iii) Mr.Amit B. Kalyani, Non-Executive Director 6.01 8.02
iv) Mr.S.M. Kheny, Non-Executive Director 0.61 0.92
v) Mr.B.B. Hattarki, Independent Director 0.87 1.27
vi) Mr.M.U. Takale, Non-Executive Director 0.61 0.93
vii) Mr.Arun P. Pawar, Independent Director 0.61 0.81
viii) Mr. Sachin K. Mandlik, Independent Director 0.81 0.91
ix) Mr.S.K. Adivarekar, Independent Director 0.83 1.22
x) Mrs.Shruti A. Shah, Independent Director 0.82 0.91
xi) Amb.Ahmad Javed, Independent Director 0.81 0.91
xii) Mr.R.K. Goyal, Managing Director 116.47 108.79
xiii) Mr.Bal Mukand Maheshwari, Chief Financial Officer 11.18 10.37
xiv) Mrs.Deepti R. Puranik, Company Secretary 7.05 6.72
Total 158.73 159.15
( ` in Million)
II Dividend Paid March 31, 2023 March 31, 2022
i) Sundaram Trading & Investment Private Limited 77.67 58.25
ii) BF Investment Limited 170.52 127.89
iii) Mr.B.N. Kalyani, Chairman, Promoter Non-Executive Director 0.01 0.01
iv) Mrs.Sunita B. Kalyani, Non-Executive Director 0.55 0.41
v) Mr.Amit B. Kalyani, Non-Executive Director 0.32 0.24
Total 249.10 186.82
( ` in Million)
III Transactions with related parties March 31, 2023 March 31, 2022
A Sale of goods
i) Bharat Forge Limited 5,934.43 5,359.93
ii) Kalyani Technoforge Limited 3,253.13 3,135.28
iii) Kalyani Transmission Technologies Private Limited 1,329.04 856.51
iv) Saarloha Advanced Materials Private Limited 361.01 455.24
v) Baramati Speciality Steels Limited 63.98 97.59
B Purchase of goods
i) Bharat Forge Limited 12.84 9.84
ii) Saarloha Advanced Materials Private Limited 241.90 370.43
iii) Baramati Speciality Steels Limited — 4.22
iv) Kalyani Centre for Precision Technology Limited 0.11 0.07
C Reimbursement of expenses received
i) Kalyani Investment Company Limited 4.69 9.22
iii) Lord Ganesha Minerals Private Limited — 0.78
D Conversion charges paid
i) Saarloha Advanced Materials Private Limited 167.82 127.64
ii) Baramati Speciality Steels Limited 89.49 82.01
E Reimbursement of expenses paid
ii) Kalyani Mukand Limited — 0.03
iii) Saarloha Advanced Materials Private Limited 2.54 0.01
F Interest income
i) Kalyani Transmission Technologies Private Limited — 49.25
G Branding Fees paid
i) Kalyani Strategic Management Services Private Limited 64.55 44.90
H Computer hardware purchase
i) Kalyani Strategic Management Services Private Limited 1.56 7.04
I Employee benefit expense
i) Kalyani Steels Limited Officers Superannuation Scheme 2.47 2.58
ii) Kalyani Steels Limited Employees Group Gratuity cum Life Assurance Scheme 9.85 7.57
iii) Hospet Steels Employees Gratuity Trust 3.61 1.60
iv) Hospet Steels Limited Employees Superannuation Trust 6.79 6.49
155

( ` in Million)
IV Outstanding balances from sale / purchases of goods As at As at
March 31, 2023 March 31, 2022
A Trade Payables
iii) Baramati Speciality Steels Limited 23.18 16.81
iv) Kalyani Strategic Management Services Private Limited 22.14 37.16
v) Kalyani Centre for Precision Technology Limited 0.04 —
Total trade payables from related parties (Note 21) 92.22 259.62
B Trade Receivables
ii) Kalyani Technoforge Limited 913.56 523.70
iii) Kalyani Transmission Technologies Private Limited 423.32 303.82
iv) Saarloha Advanced Materials Private Limited 31.16 18.52
v) Baramati Speciality Steels Limited 0.55 15.78
vi) Kalyani Investment Company Limited 0.68 0.39
Total trade receivables from related parties (Note 10) 2,355.43 1,700.69
C Outstanding balances Key management personnel compensation payable

i) Mr.B.N. Kalyani, Chairman, Promoter Non-Executive Director 7.00 9.30
ii) Mrs.Sunita B. Kalyani, Non-Executive Director 5.00 8.00
iii) Mr.Amit B. Kalyani, Non-Executive Director 6.00 8.00
iv) Mr.S.M. Kheny, Non-Executive Director 0.60 0.90
v) Mr.B.B. Hattarki, Independent Director 0.80 1.20
vii) Mr.Arun P. Pawar, Independent Director 0.60 0.80
viii) Mr.Sachin K. Mandlik, Independent Director 0.80 0.90
ix) Mr.S.K. Adivarekar, Independent Director 0.80 1.20
x) Mrs.Shruti A. Shah, Independent Director 0.80 0.90
xi) Amb.Ahmad Javed, Independent Director 0.80 0.90
xii) Mr.R.K. Goyal, Managing Director 49.74 43.85
xiii) Mr.Bal Mukand Maheshwari, Chief Financial Officer 0.68 0.60
xiv) Mrs.Deepti R. Puranik, Company Secretary 0.34 0.31
Total 74.56 77.76
There is no allowance for bad and doubtful debts recognized in respect of receivables due from related parties.
( ` in Million)
V Compensation to key management personnel Year Ended Year Ended
March 31, 2023 March 31, 2022
Nature of transaction
Short-term employee benefits 129.99 121.51
Post-employment benefits 4.71 4.37
As the future liability for gratuity is provided on an actuarial basis for the Company as whole, the amount pertaining
to individual is not ascertainable and therefore not included above.
VI Terms and conditions for outstanding balances
Transactions relating to dividends were on the same terms and conditions that applied to other shareholders.
The sale and purchase transactions were on the normal commercial terms and at market rates. The outstanding
balances as on year end are unsecured and will be settled in monetary terms.
156

Note 39 : Fair value measurements
Financial assets and liabilities at amortized cost
( ` in Million)
March 31, 2023 March 31, 2022
Financial assets
Security deposits 125.60 125.50
Trade receivables 4,047.04 4,164.43
Cash and cash equivalents 105.07 221.48
Other Bank Balances 7,389.74 9,520.73
Interest accrued and others 292.78 231.49
Bank deposits with maturity more than twelve months 17.83 16.86
Total financial assets 11,978.06 14,280.49
Financial liabilities
Borrowings 5,063.44 4,382.33
Trade payables 2,617.68 4,555.21
Other financial liabilities 412.88 387.76
Total financial liabilities 8,094.00 9,325.30
Financial assets and liabilities classified as FVTPL
( ` in Million)
March 31, 2023 March 31, 2022
Investment in 10% Non-Cumulative Redeemable Preference shares 21.65 19.69
Investments in Mutual Funds — —
Investments in Equity Shares — —
Financial assets and liabilities classified as FVTOCI
( ` in Million)
March 31, 2023 March 31, 2022
Investment in 0% Compulsorily Convertible Debentures 1,439.61 1,454.91
i) Fair value hierarchy :

This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for
which fair values are disclosed in the financial statements. To provide an indication about the reliability of the
inputs used in determining fair value, the Company has classified its financial instruments into three levels
prescribed under the accounting standard. An explanation of each level follows underneath the table.
( ` in Million)
Financial assets and liabilities measured at fair value - Level 1 Level 2 Level 3
recurring fair value measurements
Investment in Preference shares
March 31, 2023 — — 21.65
March 31, 2022 — — 19.69
Investment in Debentures
March 31, 2023 — — 1,439.61
March 31, 2022 — — 1,454.91
Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices.
Level 2 : The fair value of financial instruments that are not traded in an active market is determined using
valuation techniques which maximize the use of observable market data and rely as little as possible
on entity-specific estimates. If all significant inputs required to fair value an instrument are observable,
the instrument is included in Level 2.
Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in
Level 3.
157

ii) Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include :
- The use of quoted market prices or dealer quotes for similar instruments.
- The fair value for preference shares is determined using discounted cash flow analysis (Baramati Speciality
Steels Limited).
- The fair value for compulsorily convertible debentures is determined using asset approach (replacement
value method).
iii) Valuation process :
The finance department of the Company includes a team that performs the valuations of assets and liabilities
required for financial reporting purposes. This team appoints external valuation experts whenever the need
arises for Level 3 fair valuation. This team reports directly to the Chief Financial Officer (CFO). Discussions of
valuation processes and results are held between the CFO and the valuation team at least once every year, in
line with the Company’s annual reporting period.
iv) Fair value of financial assets and liabilities measured at amortised cost
The carrying amounts of such financial assets and liabilities are a reasonable approximation of their fair values.
v) Fair value measurements using significant unobservable inputs (Level 3)
The following table presents the changes in level 3 items :
( ` in Million)
Particulars Preference shares Debentures Total
As at April 1, 2022 19.69 1,454.91 1,474.60
Gains / (losses) recognized in profit or loss 1.96 — 1.96
Gains / (losses) recognized in other comprehensive income — (15.30) (15.30)
As at March 31, 2023 21.65 1,439.61 1,461.26
vi) Valuation inputs and relationships to fair value
The following table summarizes the quantitative information about the significant unobservable inputs used in
Level 3 fair value :
Particulars Significant unobservable input
March 31, 2023 March 31, 2022
1) Preference shares
i) Discount rate 10.00% 10.00%
2) Compulsory convertible debentures
i) Discount rate 7.22% 7.25%
ii) Inflation rate 6.05% 5.59%
The change by 100 bps in interest rate does not have any material impact on value of investments in preference
shares and compulsory convertible debentures.
Note 40 : Financial risk management
The Company is exposed to risks such as changes in foreign currency exchange rates and interest rates.
Presented below is a description of the risks (market risk, credit risk and liquidity risk) together with a sensitivity
analysis, performed annually, of each of these risks based on selected changes in market rates and prices. These
analyses reflect management’s view of changes which are reasonably possible to occur over a one-year period.
I) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in the market prices. The Company is exposed in the ordinary course of business to risks related to changes
in foreign currency exchanges rates, commodity prices and interest rates.
A) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because
of changes in foreign exchange rates. The Company is engaged in international trade and thereby exposed
to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD. Foreign
exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a
currency that is not the Company’s functional currency (INR).
158

i) Foreign currency risk exposure
The Company’s exposure to foreign currency risk (in USD) at the end of reporting period in INR (Million), is as follows :
( ` in Million)
March 31, 2023 March 31, 2022
Financial assets
Trade receivables — 46.22
Net exposure to foreign currency risk (assets) — 46.22
Financial liabilities
Borrowings 2,055.42 1,895.18
Trade payables 1,237.51 2,912.75
Interest accrued 10.31 6.27
Net exposure to foreign currency risk (liabilities) 3,303.24 4,814.20
The sensitivity of pre tax profit or loss and pre tax equity to changes in foreign exchange rates with respect to
year end payable / receivable balances in INR (Million) is as follows :
Particulars Impact on pre tax profit or loss
and pre tax equity
March 31, 2023 March 31, 2022
USD
Increase by 1%* (33.03) (47.68)
Decrease by 1%* 33.03 47.68
*Holding all other variables constant
ii) Commodity Price risk :
The Company’s revenue is exposed to the market risk of price fluctuations related to the sale of its steel
products. Market forces generally determine prices for the steel products sold by the Company. These prices
may be influenced by factors such as supply and demand, production costs (including the cost of raw material
inputs) and global and regional economic conditions and growth. Adverse changes in any of these factors
may reduce the revenue that the Company earns from the sale of its steel products. The Company is also
subject to fluctuations in prices for the purchase of iron ore, metallurgical coke, ferro alloys, scrap and other
raw material inputs.
Commodity Price Sensitivity :
Company has a back to back pass through arrangements for volatility in raw material prices for most of
the customers. The selling prices of steel and the prices of input raw material moves in the same direction.
However in few cases there may be a lag effect in case of such pass through arrangements and might have
some effect on the Company’s profit and equity.
B) Interest risk
The Company has borrowings at variable interest rate. Profit or loss and equity are sensitive to higher / lower
interest expense from borrowings as a result of change in the interest rates. The following sensitivity analysis
has been performed for non-current and current borrowings.
( ` in Million)
March 31, 2023 March 31, 2022
Total borrowings at variable interest rate 2,055.42 1,895.18
Interest rate swaps — —
Net exposure to interest rate risk 2,055.42 1,895.18
Particulars Impact on pre tax profit or loss
and pre tax equity
March 31, 2023 March 31, 2022
Increase of Interest Rate by 0.5%* (0.99) (0.52)
Decrease of Interest Rate by 0.5%* 0.99 0.52
*Holding all other variables constant
II) Liquidity Risk
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an
adequate amount of committed credit facilities to meet obligations when due and to close out market positions.
Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by
maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company’s
liquidity position and cash and cash equivalents on the basis of expected cash flows. In addition, the Company’s
liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to
meet these debt financing plans.
159

i) Maturities of financial liabilities
The tables below analyze the Company’s financial liabilities into relevant maturity groupings based on their
contractual maturities :
( ` in Million)
March 31, 2023 Less than 1 year More than 1 year
Non-derivative
Borrowings 3,213.56 1,849.88
Trade payables 2,617.68 —
Other financial liabilities 412.88 —
( ` in Million)
March 31, 2022 Less than 1 year More than 1 year
Non-derivative
Borrowings 2,487.15 1,895.18
Trade payables 4,555.21 —
Other financial liabilities 387.76 —
III) Credit risk
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.
The balances with banks, loans given to employees and associated company, security deposits are subject to
low credit risk since the counter-party has strong capacity to meet the obligations and where the risk of default
is negligible or nil. Hence, no provision has been created for expected credit loss for credit risk arising from these
financial assets.
A Trade receivables
Senior management is responsible for managing and analyzing the credit risk for each of their new clients before
standard payment, delivery terms and conditions are offered. The Company assesses the credit quality of the
customer, taking into account its financial position, past experience and other factors. Individual risk limits are set
based on internal or external assessment. The utilization of credit limits is regularly monitored.
An impairment analysis is performed at each reporting date on an individual basis for all customers. The maximum
exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 10.
i) Expected credit loss for trade receivables under simplified approach :
( ` in Million)
March 31, 2023 March 31, 2022
Gross carrying amount 4,072.53 4,189.92
Expected loss rate 0.63% 0.61%
Expected credit losses (loss allowance provision)* 25.49 25.49
Carrying amount of trade receivables (net of impairment) 4,047.04 4,164.43
*Expected Credit Losses based on an analysis of Historical Ageing Trends is negligible as significant portion of receivable
are from related parties where management does not expect credit losses as well as past trends. The loss allowance
provisions represents provision against specific customer.
ii) Reconciliation of loss allowance provision - trade receivables
( ` in Million)
Loss allowance as on March 31, 2021 25.49
Changes in loss allowance —
Changes in loss allowance —
Note 41 : Capital management
The Company’s objective when managing capital is to
l safeguard its ability to continue as a going concern, so that the Company can continue to provide returns for
shareholders and benefits for other stakeholders, and
l maintain an optimal capital structure to reduce the cost of capital.
The Company determines the amount of capital required on the basis of annual operating plans and long-term product
and other strategic investment plans. The funding requirements are met through equity, long term and short term
borrowings. The Company’s policy is aimed at combination of short-term and long-term borrowings. The Company
monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio
of the Company. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends
paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
Total debt includes all long and short-term debts as disclosed in Note 15 and Note 20 to the financial statements.
The capital structure of the Company is as follows : ( ` in Million)
March 31, 2023 March 31, 2022
Borrowings 5,063.44 4,382.33
Equity 14,894.78 13,674.62
Debt equity ratio 0.34 0.32
160

i) 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.
ii) There have been no breaches in the financial covenants of any interest bearing loans and borrowings in the
current period.
Note 42 : Ratios
The following are analytical ratios for the year ended March 31, 2023 and March 31, 2022
Sr. Particulars Numerator Denominator March 31, March 31, Variance
No. 2023 2022
1 Current Ratio (in times) Current Assets Current Liabilities 2.41 2.16 12%
2 Debt-Equity Ratio (in times) Debt Equity 0.34 0.32 6%
3 Debt Service Coverage Ratio Earnings for Debt Service** 10.75 29.14 (63%)
(in times) 1 Debt Service *
4 Return on equity (in %) 2 Net Profit Aer Average 11.69% 19.27% (39%)
Tax Shareholders' Equity
5 Inventory Turnover Ratio (in Cost of goods Average Inventory 4.37 5.71 (24%)
times) sold
6 Trade Receivable Turnover Net Sales Average Accounts 4.56 4.41 4%
Ratio (in times) Receivable
7 Trade Payable Turnover Net Purchases Average Accounts 4.72 4.05 16%
Ratio (in times) Payable
8 Net Capital Turnover Ratio Net Sales Working Capital 2.04 1.88 8%
(in times)
9 Net Profit Ratio (in %) 2 Net Profit Net Sales 8.91% 14.50% (39%)
10 Return on Capital Employed Earning Before Capital Employed 12.58% 18.56% (32%)
(in %) 3 Interest & Tax
11 Return on Investment Income Earned Time Weighted 5.98% 3.51% 70%
(Quoted) (in %) 4 from Investment average Investment
12 Return on Investment Income Earned Time Weighted (0.91%) 2.25% 140%
(Un-Quoted) (in %) 5 from Investment average Investment
* Earnings for Debt Service : Net Profit aer taxes + Non-cash operating expenses like depreciation and other amortizations +
Interest + other adjustments like loss on sale of Fixed assets etc.
** Debt Service : Interest on borrowings and other finance charges
1 During the year utilization of bill discounting facility and average short term borrowings have been increased.
2 Decrease in profits during the year due to higher cost of consumption, finance charges and increase in foreign exchange
fluctuation losses.
3 Decrease in profits during the year due to higher cost of consumption and increase in foreign exchange fluctuation losses.
4 Increase in income from sales of Mutual Funds.
5 Decrease in fair valuation of investment.
Note 43 : Corporate social responsibility (CSR)
( ` in Million)
Sr. Particulars Year ended Year ended
No. March 31, 2023 March 31, 2022
i) Amount required to be spent by the company during the year 50.22 40.03
ii) Amount of expenditure incurred (including set off availed) 50.35 51.72
iii) Shortfall / (Excess) at the end of the year (0.13) (11.69)
iv) Total of previous years shortfall / (excess) (11.69) (7.67)
v) Nature of shortfall NA NA
vi) Nature of CSR activities Health and Education Health and Education
vii) Details of related party transactions, e.g. contribution to a trust NA NA
controlled by the company in relation to CSR expenditure as per
relevant Accounting Standard
viii) Where a provision is made with respect to a liability incurred by NA NA
entering into a contractual obligation, the movements in the
provision during the year
161

Note 44 : Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker. The Board of Directors has been identified as the chief operating decision maker.
The Company has organized its operating segments based on product groupings. These operating segments have
been aggregated into one reportable business segment : ‘Forging and Engineering quality carbon and alloy steels’
Following are major customers, which contribute more than 10% to the Revenues of the Company. The details are as
under :
( ` in Million)
Name of Customer 2022-23 2021-22
Bharat Forge Limited 5,934.43 5,359.93
Kalyani Technoforge Limited and its subsidiary 4,582.17 3,991.79
Total revenues from sales to customers outside India for the year ended March 31, 2023 and March 31, 2022 was
` 196.77 Million and ` 411.96 Million respectively.
All assets are in India.
Note 45 : (Net Debt) / Surplus reconciliation

( ` in Million)
March 31, 2023 March 31, 2022
Cash and cash equivalents 105.07 221.48
Current borrowings (3,213.56) (2,487.15)
Non-current borrowings (1,849.88) (1,895.18)
(Net Debt) / Surplus (4,958.37) (4,160.85)
Note 46 : Assets hypothecated as security

( ` in Million)
March 31, 2023 March 31, 2022
First charge
Property, plant and equipment (Machineries) 3,924.81 1,858.54
Note 47 : The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and
post-employment received Indian Parliament approval and Presidential assent in September, 2020. The Code has
been published in the Gazette of India and subsequently on November 13, 2020 dra rules were published and
invited for stakeholders suggestions. However, the date on which the Code will come into effect has not notified.
The company will assess the impact of the Code when it comes into effect and will record any related impact in the
period of the Code becomes effective.
Note 48 : There is no proceeding initiated or pending against the Company for holding any Benami property under
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
Note 49 : During the year ended March 31, 2023, the Company was not party to any approved scheme which needs
approval from competent authority in terms of Sections 230 to 237 of the Companies Act, 2013.
Note 50 : As per the information available with the company, no transactions have been entered with any company
struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the year.
162

Note 51 : The Company have not traded or invested in Crypto Currency or Virtual Currency during the financial
year.
Note 52 : Previous year figures have been regrouped / reclassified wherever necessary to conform with current
year’s classification / disclosure.


Pune Pune
163
NOTES
164

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KALYANI STEELS LIMITED | 50th ANNUAL REPORT 2022-2023

MANAGEMENT DISCUSSION AND ANALYSIS

1.0 Economic Overview

Lost growth momentum on account of conﬂict, trade tensions & inﬂation

Economic activities regained the strong momentum

EMERGING MARKETS & DEVELOPING ECONOMIES

The China economic activities deteriorated sharply in

Outlook : A fragile recovery is underway

Inﬂation remaining above target could likely force

1.2 Indian Economy

Resilient performance : A shining economy amid decelerating global demand

Gross value added (GVA) at basic prices is estimated to

At the same time, merchandise imports increased

Even aer signiﬁcant growth in exports, primarily led

Output of Eight Core Industries has grown

Overall, the output of 8 core industries have grown

Y-o-Y Growth Rates

Electricity 8.0 8.2 9.9

Higher inﬂation levels in FY 2022-23

Indian economy faced very high inﬂationary pressures

Steel Industry Overview

Contraction in steel demand aer recovery momentum post pandemic shock

2.1.1 Input Prices

During the start of the year 2022, geopolitical tension

In Mid of Dec 2022, China made a U turn in its Zero

Particulars Demand Growth (%)

World 1,781.5 1,822.3 1,854.0 -3.2 2.3 1.7

China 920.9 939.3 939.3 -3.5 2.0 —

EU and UK 151.8 151.3 159.8 -7.9 -0.4 5.6

India 114.9 123.3 130.9 8.2 7.3 6.2

US 94.5 95.8 98.2 -2.6 1.3 2.5

Japan 55.0 57.2 57.9 -4.2 4.0 1.2

South Korea 51.2 52.7 53.8 -8.6 2.9 2.0

Source : World Steel Association, Short Range Outlook, Apr 2023

2.2 Indian Steel Industry Overview

Strong growth in steel production amid global uncertainty

2.2.1 Major Drivers of Growth

In FY 2023, Passenger Vehicles (PV) sales stood at

The robust performance & demand of Automotive

Construction & Infrastructure

Government of India, in its budget for FY 2023-24

Increasing spending clearly signals government's

Several key projects like PM GatiShakti for

2.2.2 Decarbonization of Steel Industry - Need of the Hour!

Indian Steel industry's growth story has just begun!

Internal Control & Human Resources

Internal control systems are an integral part of any

The company has well established and eﬀective system

As on March 31, 2023, the Company has 71

REPORT ON CORPORATE GOVERNANCE

Name of the Director Category Particulars of Attendance

COMMITTEES OF THE BOARD

Role / Terms of reference of the Audit Committee

Role of the Stakeholders Relationship Committee :

Performance Evaluation Criteria for Directors

Directors with materially pecuniary or business relationship with the Company

Policy on Board Diversity and Nomination and Remuneration Policy

Skills / Expertise / Competencies for the Board of Directors

Mr.B.N. Kalyani, Chairman “ü ü ü ü ü ü ü

Remuneration to Non-Executive Directors