Impex Ferro Tech Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

(h) Terms/Rfghts attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10 per share. Accordingly, alJ equity shares rank equally with regard to dividends and share in the Company''s residual assets. Each holder of equity shares is entitled to one vote per share. The equity shares are entitled to receive dividend as declared from time to time, Company declares and pays dividends in Indian Rupees. The dividend, if any proposed by the Board of Directors Is subject to the approval of the share holders in the ensuing Annual General Meeting. However, no dividend has been proposed hy the Board for the current year.

failure to pay any amount called up on shares lead to forfeiture of shares. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amount in proportion to the number of equity shares held.

(A) Details of Security

{i) Rupee Term Loans, Wording Capital Term loans, Funded Interest Term Loans and Working Capital Loan are pooled together and secured as under: .

a) First pari’passu charge on fixed assets by way of equitable mortgage of the land & building / shed along with all movable and immovable plant & machinery and other fixed assets thereon at Kalyaneshwari, pist: Burdwan, West Bengal

b) First parl-passu charge on the entire Current Assets of the Company comprised of stock of raw materials, semi finished and finished goods and book debts, outstanding moneys, receivables, both present and future pertaining to the Company''s manufacturing units/dfvfsions at Kalyaneshwari, Dist: Burdwan, West Bengal

e) Collateral Security of equitable mortgage on office space at 35, C, R, Avenue, Kolkata standing In the name of the Company on pari passu basis,

d) Additional Security of Equitable mortgage of Two Floors at the Corporate office of the group at $KP House, 132A, S.P. Mukherjee Road, Kolkata - 700 026 standing in the

name of Marble Arch Properties Rvt Ltd on pari passu basis.

e) Personal guarantee of Promoters / Director - Mr. Suresh Kumar Patni, Mr. Rohit Patni, & Mr. Ankit Patni,

f) Further, the restructured facilities has been secured by pledge of promoter & promoter group stake in Company (in Demat Form), representing69.10% (P.Y 66,71%) of paid up capital of Company. Out of that, 63,35 lac shares were Issued during the year ended 31st March, 2016 pursuant to CDR package have been pledged.

g) The overdraft entries are secured by Fixed Deposit of Rs, 10 lakhs which has been included In Cash and Cash Equivalents (Refer Note 8{iij)

(B) Various credit facilities availed from United Bank of India (UBI),Bank of Baroda (BOB) and State Bank of India (SBI) have been assigned in favour of Rare Asset Reconstruction Ltd, Pending finalization of the restructuring plan with Rare Asset Reconstruction Limited, the company has not provided accrued infer* shin its hnnks as the account has been declared NPA by the respective banks as outstanding balances shown under non current. The amount of interest has been recogised in the books of account to the extent the amount charged/realised by the banks only. (Refer Note 37).

NOTE 23 - CONTINGENT LIABILITIES & COMMITMENTS		(Rs./lakhs)
	As on March 2025	As on March 2024
Contingent Liabilities not provided for in the books of accounts in respect of claims against the Company not acknowledged as debts : (a) Government Claims
(i) Central Excise Act, 1944 ( deposits made under protest 31st March 2024: Rs. 12.69 lacs, 31st March, 2023 : Rs, 12.69 lacs)	1,819,99	1,819.99
(ii) income Tax Act, 1961 (deposits made under protest 31st March, 2024: Nil, 31st March, 2023: Nil) (iii) Central Sales Tax and Local Sales Tax Act (deposits made under protest 31st March, 2024: SS.43 lacs, 31$t March, 2023: Rs.	21,159.41	21,159.41
88.43 lacs)	1,696.12	1,696.12
(iv) W-8 Entry Tax Act	504,91	504,91
(V) DVC Arrear bills for FY 2017-18 to 2019*20 ( Refer note no 39)	968.54	968.54

Note: No actuarial valuation for gratuity has been carried out during the financial year ended 31st March 2025. Accordingly, the gratulty-related disclosures and amounts reported in the financial statements are based on the figures from the previous year, therefore current year financials are impacted because of this,

NOTE 30 - SEGMENT REPORTING

As the company''s business activity falls within a single significant primary segment i.e, "Ferro Alloys", no separate segment information is disclosed.

NOTE 33

Other Regulatary Information

1) The Company does not have any benami property.Futher there are no processlnp instated or are pending against the Company for holding any benami property under Prohibition of Benami Property Transaction Act, 19&S and rules made there under,

2) The Company does not have any charge or satisfaction which is yet to be registered with ROC beyond the statutory period .

3) The Company does not have any transactions with Companies struck off under section 248 of the Companies Act,2013 or Section S60 fo the Companies Act, 1956,

4) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year,

5) The Company has not advanced or loaned or invested funds to any other person(s) orentity(s) including foreign entities (intermediaries) with the understanding that the intermediaries shall: f. Directly or indirectly lend or invest in other persons or entities in any manner whatsoever by or on behalf of the CompanyfUtlimate beneficiaries); or

ji. Provided any guarantee,security or the iike to or on behalf of the ultimate beneficiaries.

The Company has not received any funds from any other person(s) or entity(s), including foreign entities (funding parties} with the understanding (whether recorded in writing or otherwise) that the Company will:

I, Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (Utlimate beneficiaries); or |l. Provided any guarantee,security or the like to or on behalf of the ultimate beneficiaries,

6) The Company has no such transaction which Is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961,

7) The Company has not been declared as a wilful defaulter by any Sank or Financial Institution or other lender.

8) The Company has complied with the number of layers prescribed under clause(87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers} Rules, 2017,

9) The Company has not fifed any scheme of arrangements in terms of section 230 to 237 of the Company''s Act, 2013 with any Competent Authority,

10} The Company has done an assessment to identify Core Investment Companies (CIC''sj in the group as per the relevant guidelines issued by Reserve bank of India read with Core Investment Companies (Reserve Bank} Directions, 2016. Based on the same, no company has been Identified as a CIC in the group,

NOTE 34

Hon''bie National Company Law Tribunal (NCLT), Kolkata Bench vide order dated 2nd May, 2024 has commenced Corporate insolvency Resolution Process (ClflP} against the Company under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), based on the application filed by one of its Operational Creditor of the Company. Mr. Rajiv Kumar Agarwala (IP Registration No.

IB8I/IPA-001/IP-P005 5 2/2017-18/10982) has been appointed as Interim Resolution Professional (IRP) with effect from 2nd May, 2024 under the provision of IBC. Subsequently Mr, Ashok Kumar Sarawagl (I8BI/IPA- 001/IP-P00171/2017-2018/10340) was appointed as Resolution Professional (RP) by the Committee of Creditors (CoC) vide its 2nd CoC meeting held on 14th June, 2024 as approved by virtue of e - voting by the CoC members and further vide order dated 12th July,2024 by the Honourable court of NCLT, Koikata, The above financial statements have been prepared in accordance with irtdlan Accounting standard (rnd as) notified under section 133 ot the companies Act 2U13 read together with the Companies (Indian Accounting Standards) Rules, 2015_r reviewed, and signed by Resolution Professional as the power of the boards are suspended due to commencement of the CJRP process.

NOTE 35

The CiRP is going on and the Resolution plan has already been submitted and one of the Resolution Applicants has been declared as HI bidder. The Company has incurred Joss of Rs, 706,59 lakhs for the year ended 31st March, 2025 and accumulated loss as on 31st March, 2025 is Rs,45709,9l lakhs which is in excess of the entire net worth of the company, The Company''s ability to meet its contractual and financial obligation which were admitted by RP is given in note 37, Currently the company''s Financial statements are being prepared on a going concern basis. The future prospects of the company to remain as a going concern shall be subject to resolution plan, submitted before Coc.

NOTE 36

The assets of the corporate debtors had been attached by Enforcement Directorate vide Provisional Attachment order no 07/2021 dated 31/03/2021 under sub-section 1 of Section 5 of the Prevention of Money Laundering Act, 2002 to the extent to the value of Rs,660,45 lakhs, The said

provisional Attachment Order got confirmed by Ld. Adjudicating Authority vide order dated 09,11.2021. An appeal was filed by the corporate debtoragainst the said order before Appellate Tribunal of PMLA on 23,12.2021 vide FPA-PMLA-4373/KOL/2021. The said appeal was dismissed on 03/10/23 for non-appearance.

NOTE 37

Various credit facilities availed from United Bank of India (UBl).Bank of Baroda (BOB) and State Bank of India (SB!) have been assigned in favour of Rare Asset Reconstruction Ltd under assignment agreements between banks and Rare Asset Reconstruction Ltd. In absence of information about the terms of assignments, the company is carrying the various credit facilities as appearing In the books as per the previous terms with the respective banks as shown under non current borrowings (note 12)

The lenders (RARE) have submitted their claim and as admitted by RP amounting to Rs.91068.97 lacs which Includes principal of Rs,2S048,75 lacs and cumulative interest of Rs. 63020,22 lacs. The principal amount lying In the books Is Rs.26124,99 lacs ,The cumulative Interest as mentioned above remain unprovided for jn the books. The same may have consequential Impact on the reported financial for the quarter and year ended 31st March, 2025 as well as earlier periods. Since the aforesaid known accounts had been declared NPA from the financial year 2014, the statement of stocks and book debts are not submitted to banks or financial Institution,

The party-wise recon el Nation of outstanding balances appearing in books of account vis-a-vis claims submitted and admission of claim by RP is under process. This is an ongoing process till the approval of the resolution plan and the balances are subject to updation and reconciliations. Hence consequential impact If any on the financials is not currently ascertainable and no accounting adjustment has been made in the books of accounts for differences.

NOTE 39

The manufacturing operation of the plant of the company situated at Kalyanesheri, West Bengal has been temporarily shut down since October, 2022 due to disconnection of power supply by the Damodar Vally Corporation (DVC) and the same has been intimated to the stock exchange pursuant to Regulations 30 the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2013, The security deposit with DVC in the form of bank guarantee amounting to R$. 950 lakhs has been invoked and other deposit of Rs. 748 lakhs lying with DVC also adjusted during the financial year

2022-23,

NOTE 40

Disclosure on Proceedings under the Prevention of Money Laundering Act, 2002 (PMLA)

The Company is subject to ongoing proceedings Initiated by the Directorate of Enforcement (ED) under the provisions of the Prevention of Money Laundering Act, 2002 (''''PMLA"), as detailed below:

a. Provisional Attachment by Enforcement Directorate:

The ED issued a Provisional Attachment Order (PAO No, 07/2021) dated 31st March 2021, attaching immovable properties of the Company located at Kadavita Dendua Road, PO Kalyaneshwari, PS Kulti, District Surd wan, West Bengal, valued at ^6,60 Croces. These include factory land, building, and machinery situated On approximately 9.2 acres, originally acquired during 1996-97,

b. Basis for Attachment:

The attachment arises from investigations conducted by the ED based on EClR No, KL20/03/2019, linked to a scheduled offence under Sections 120B (Criminal Conspiracy) and 420 (Cheating) of the Indian Penal Code, following complaints from Allahabad Bank against SPS Steel Rolling Mills Ltd. and others for an alleged fraud amounting to ^551,13 Crores.

c. Allegations and Proceedings:

The £D has alleged that the Company''s transactions with SPS Steel Rolling Mills Ltd. involved fictitious Letters of Credit (LC) and irregularities in vehicle documentation, claiming that these were part of a money laundering operation.The Company has refuted these allegations, asserting that the property under attachment was acquired prior to the alleged offence period, that transactions with SPS Steel Rolling Mills Ltd. were genuine, duly accounted for, and that all applicable taxes, including VAT, were paid.The State Bank of India f$Bi}, a secured creditor with mortgage rights over the said property, has raised objections to the attachment, citing protection under Section 26-E of the SARPAESI Act, 2002.

d. Status of Proceedings: A

Show Cause Notice under Section 8(1) of the PMLA was Issued to the Company on 8th June 2021-The Adjudicating Authority, vide order dated 9th November 2021, confirmed the Provisional Attachment, holding the property as "value equivalent" proceeds of crime Jhe Company has challenged the validity of the attachment, contending lack of judicial application of mind, procedural violations, and absence of concrete evidence linking the property to proceeds of crime. e. Financial Statement Impact:

The attached properties continue to be reflected in the financial statements under Property, Plant & Equipment. Given that the proceedings are ongoing and subject to Judicial determination, the outcome and consequential financial impact, if any, cannot be reliably estimated at this stage, f. Management Representation:

The management has provided representations confirming their continued cooperation with authorities and asserts that they will take appropriate legal recourse to safeguard the Company''s interests. Further disclosures, adjustments, or provisions will be made in the financial statements as and when required, based on the outcome of the proceedings or receipt of enforceable

NOTE 41

Insurance coverage Of Fixed Assets and Plant ^Machinery (Including stocks),has been expired on 13/06/2023 and the same is Under process of renewal,

NOTE 42

As the company''s business activity falls within a single significant primary segment i,e, "Ferro Alloys", no separate segment Information is disclosed,

NOTE 43

Based on evaluation and age wise analysis, It is observed that the credit risk on the aforesaid financial instrument has increased significantly and the management has decided to revise the expected credit loss policy and make 100% provision as a precautionary measures on trade receivable & advance to parties outstanding for a period exceeding one year. Accordingly, an amount of Rs, 707.13 lakhs has been provided during the financial year for Expected Credit Loss (ECL) and is shown in the statement of profit & loss in preceding FY 2023-24

The Company has carried out an evaluation of Its financial assets. Based on this assessment, the management has determined that there has been no significant Increase In credit risk during the year, and therefore, no provision for Expected Credit Loss (ECL) is considered necessary as at 31st March 2025.

NOTE 44

Advance from others (as per note 17B) Includes 315.70 lacs (P.Y. 315.70 lacs) being certain receipts lying under suspense account in absence of information as to the credits in the bank account. Addiionally, 10 lacs were also included in current year which pertains to an unrecorded FD (Refer Note B2(i)).

NOTE 45

The balance of "Trade Receivables", "Trade Payables", "Advances from Customers", "Advances Recoverable in cash or Kind" and Advance to Suppliers and Other Parties" includes balances remaining outstandingfor a substantial period. The balances are subject to confirmations and reconciliations. The Balance with revenue authorities are subject to final assesment order and/or submission of returns. The reported financials might have consequential impact once the confirmation are recieved and reconciliation if any is made. Refer Note, 37 for list of creditors for liabilities (Including statutory dues) which were admitted by RP dated 8.4,25,

NOTE 46

The company has not made any remittance in foreign currencies on account of dividend during the year and does not have information as to the extent to which remittance in foreign currencies on account of dividends have been made on behalf of non - resident shareholders.

47.2 Fair value measurement

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchange In a current transaction between willing parties, other than in forced or liquidation sale.

The Company has established the following fair value hierarchy that categories the value into 3 levels. The inputs to valuation techniques used to measure fair value of financial instruments are:

Level 1: The hierarchy uses quoted (adjusted) prices in active markets for identical assets or liabilities- The fair value of all bonds which are traded in the stock exchanges Is valued using the closing price or dealer quotations as at the reporting date.

Level 2: The fair value of financial instruments that are not traded in an active market (for example traded bonds, over the counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on company 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.

The management assessed that trade receivables, cash and cash equivalent, trade payable, cash credits and other financial assets and liabilities approximate their Carrying amounts largely due to the short term maturities of there instruments,

48 FinarHial rislt management

Risk management framework

The Company''s principal financial liabilities comprises of borrowings, and trade and other payables. The main purpose of these financial liabilities is to finance the Company operations. The Company''s principal financial assets include trade and other receivables, investments and cash and cash equivalents that derive directly from its operations.

The Company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company''s primary risk management focus is to minimise potential adverse effects of market risk on its financial performance. The Company uses derivative financial instruments to mitigate foreign exchange related risk exposures, The Company''s exposure to credit risk is influenced mainly by the Individual characteristic of each customer and the concentration of risk from the top few customers. The Company''s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monjtor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company''s activities.

This note presents information about the Company''s exposure to each of the above risks, the Company''s objectives, policies and processes for measuring and managing risk.

The Company has exposure to the following risks arising from financial instruments:

fi) Credit risk fii> Liquidity risk (iii) Market risk ‘

4i) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and loans. In addition, credit risk arises from finance guarantees. Company''s credit risk arises principally from the trade receivables and cash & cash equivalents. Customer credit risk is managed centrally by the company through credit approvals establishing credit limits and conti nously monitoring the credit worthiness of the customers to whom the credit is extended in the normal course of business,The concentration of credit risk is limited due the fact that the customer base is large and unrelated.The company estimates the Expected Credit Losses on the basis of its evaluation of each case.Provision is being made as per the Company''s expected credit loss policy in the manner mentioned belowr

Overdue for more than 1 year but not more than 2 years 5%

Overdue for more than 2 years but not more than 4 years 15%

Overdue for more then 4 year? 50%

Credit risk from balances with banks are managed in accordance with the company''s policy.

Trade receivables are primarily unsecured and are derived from revenue earned from customers. Credit risk is managed through credit approvals, establishing credit limits and by continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. As per simplified approach, the Company makes provision of expected credit loss on trade receivables using a provision matrix to mitigate the risk of default payments and makes appropriate provisions at each reporting date whenever is for longer period and involves higher risk.

{•i) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonabie price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The Company''s finance team is responsible for liquidity, funding as well as settlement management. In addition. Processes and policies related to such risks are overseen by senior management. Management monitors the Company''s liquidity position through rolling forecasts on the basis of expected cash flows, The Company''s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity, subject to its restructuring proposals, to meet its liabilities when due, under both normal and stressed conditions.

In the opinion of the management, the company''s cash flow from business, borrowing or financing would be sufficient to meet the cash requiments for its operation with support of its lenders as the company ability to meet its obligation and its financing is depnedent on the resolution or matter under CI8P,

Exposure to liquidity risk

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments subject tom resolution plan under CIRP

(iii) Market risk

Market risk is the risk of loss of future earnings, fair value or future cash flows that may result from a change Jn the price of a financial instrument - The value of a financial Instrument may change as a result of changes in the interest rates, foreign currency exchange rates, commodity prices, equity prices and other market changes that effect market risk sensitive instruments, Market risk Is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and borrowings. The goal of market risk management is optimization of profit and controlingthe exposure to market risk within acceptable limits,

fa) Currency risk

Foreign currency risk is the risk impact related to fair value or future cash flows of an exposure in foreign currency, which fluctuate due to changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the import of raw materials and spare parts, and exports of finished goods,

Sensitivity analysis

A reasonably possible strengthening (weakening) of the USD against Indian rupee at 31st March would have affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss by the amount shown below. This analysis assumes that all other variables,, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

(b) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company exposure to the risk of changes in market interest rates related primarily to the Company''s short term borrowing with floating interest rates. The Company constantly monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity profile and financing cost.

fc] Equity price risks

The Company is not exposed to equity risks arising from equity investments. Equity investments are held for stratergic rather than trading purposes. The Company does not actively (d) Hedge accounting

Currency risk-Transactfons fn foreign currency

The Company fs exposed to transactional foreign currency risk to the extent that there is a mismatch between the currencies In whJch sales and interest rate exposures are denominated. The currencies in which these transactions are primarily denominated are US dollars. The Company buys and sells derivatives,, and also Incursfinancial liabilities, in order to manage market risks. All such transactions are carried out as per the risk management policy of the Company.

The Company holds derivative financial instruments such as foreign currency forward to mitigate the risk of changes in exchange rates on foreign currency exposures. The Company''s risk management policy is to hedge its foreign currency exposure in respect of firm commitments and highly probable forecasted transcations and interest rate risks. The counterparty for these contracts is generally a bank ora financial institution.

The Company determines the existence of an economic relationship between the hedging instrument and hedged item based on the currency, amount and timing of their respective ^ cash flows, The Company assesses whether the derivative designated in each hedging relationship is expected to be and has been effective in offsetting changes in cash flows of the hedged item. In order to designate a derivative contract as an effective hedge, the management objectively evaluates and evidence with appropriate underlying documents of each contract whether the contract is effective in offsetting cash flow attributable to the hedged risk.

In these hedging relationships, the main sources of ineffectiveness are:

- the effect of the counterparty and the Company''s own credit risk on the fair value of the forward exchange contracts, which Is not refected in the change in the fair value of the hedged cash flows attributable to the change in exchange rates; and

- changes in the timing of the hedged transactions.

interest rate risk

The Company adopts a policy of hedging its certain interest rate risk exposure is at a fixed rate. This is achieved partly by entering Into fixed-rate instruments and partly by borrowing at a floating rate.

The Company determines the existence of an economic relationship between the hedging instrument and hedged Item based on the reference interest rates, tenors, reprising dates and maturities and the notional of hedging instruments or par amounts of hedged items.

49 Capital Management (Ind AS I)

The fundamental goals of capital management are to:

* safeguard their ability to continue as a going concern, subject to note no. 35 so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- ma i nta in a n optima I capital structu re to reduce the cost of capital,

The Board of Directors has the primary responsibility to maintain a strong capital base and reduce the cost of capital through prudent management of deployed funds and leveraging opportunities in domestic and International financial markets so as to maintain investor,creditorand market confidence and to sustain future development of the business.

For the purpose of Company''s capital management, capital includes Issued capital and all other equity reserves. The Company manages its capital structure in light of changes in the economic and regulatory environment and the requirements of the financial covenants. The Company applied the same capital risk management strategy that was applied in the previous period.

50 Chief Financial officer and company secretary of the company has resigned w.e.f 11/04/2024,

51 Sale of Manufactured goods, relates to Surplus inventory that had not been previously recorded, was identified and sold during the current year.

52 Bank balances other than cash and cash equivalents amounted to Rs. 34.68 lakhs includes the following :

(i) Fixed Deposit of Rs. 10 lakhs: This amount pertains to a fixed deposit against a Rupee Loan of Rs. 8.61 lakhs (as per Note 13). The source and detailed documentation relating to this deposit are currently under verification and have not yet been fully ascertained. Accordingly, the amount has been temporarily classified under advance from other (Note 17(b))

(ii) The remaining balance relates to two fixed deposits given against bank guarantees in favour of the West Bengal Pollution Control Board. However, the validity of the above guarantee has been expired on 19/06/2024,

53 An amount of 350,00,000 in the Company''s Axis Bank account (C.A. No. 923020032077997) was marked under lien due to a transaction (RTGS) made on 22/09/2023. The lien was placed following a NCRP complaint lodged at LB Nagar Law and Order Police Station, Telangana (Complaint Acknowledgement No. 237092300388331. The amount remains frozen and is not available for ooe rati on a I use.

54 The Company is under Corporate Insolvency Resolution Process (CIRP) as per the order dated 2nd May 2024 under the Insolvency and Bankruptcy Code (IBC), 2016. A transaction audit covering the period from 1st April 2022 to 2nd May 2024 was conducted by J Singh & Associates.

Key observations from the audit are as follows:

(a) No transactions were identified as Preferential, Undervalued, Extortionate Credit, or Fraudulent/Wrongful Trading under Sections 43,45,50, and 66 of the IBC

(b) However, observations outside the IBC scope include:

(i) Significant unpaid capital expenditure and repair expenses, with concerns over vendors having invalid/suspended GST registrations.

(ii) Service income linked to subcontracting with an individual lacking prior execution capability, with GST registration suspended.

(iii) Notices from the Income Tax Department for earlier years alleging transactions with shell entities and unexplained credit amounting to 3485 crores, which the company has legally contested and filed appeals against.

These matters, while not classified under avoidable transactions of the IBC, are disclosed for transparency and stakeholders'' information.

55 Previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever considered necessary to conform to this year''s classification. Accordingly, amounts and other disclosures for the preceding years are included as an integral part of the current year financial statements and are to be read in relation to amounts and other disclosures relating to the current year.

---

Mar 31, 2015

1 CORPORATE INFORMATION

Impex Ferro Tech Ltd., " the Company" is domiciled in India and was incorporated in June, 1995 under the provisions of the Companies Act, 1956. The Company has its registered office situated in Kolkata and manufacturing facility at Kalyaneshwari, Burdwan, West Bengal. The Company is primarly engaged in manufacture of Ferro Alloys (Ferro-Manganese/Silico Manganese), trading in iron & steel products. As a part of backward integration, the Company have a power plant.

(I) Terms/Rights attached to Equity Shares

The Company has only one class of equity shares having a par value of ' 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the share holders in the ensuing Annual General Meeting. However, no dividend has been proposed by the Board for the current year. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

(II) Working Capital Term Loan (WCTL) :

Upon implementaion of the CDR Package (Refer Note 27), the overdrawn portion of the Cash Credit Accounts of the Company has been carved out into separate Working Capital Term Loans (WCTL).

(III) Funded Interest Term Loan (FITL) :

Upon implementaion of the CDR Package (Refer Note 27), funding of interest has been provided for:

* Interest on existing term loans for a period of 24 months from the Cut-Off Date i.e from May 01, 2014 to April 30, 2016;

* Interest on WCTL for a period of 24 months from the Cut-Off Date i.e from May 01, 2014 to April 30, 2016.

(IV) Details of Security

(i) In terms of the CDR package, Rupee Term Loans , Working Capital Term Loans, Funded Interest Term Loans and Working Capital Loan (Refer Note 27) are pooled together and secured as under:

a) First pari-passu charge on fixed assets by way of equitable mortgage of the land & building/shed along with all movable and immovable plant & machinery and other fixed assets thereon at Kalyaneshwari, Dist.: Burdwan, West Bengal.

b) First pari-passu charge on the entire Current Assets of the Company comprised of stock of raw materials, semi finished and finished goods and book debts, outstanding moneys, receivables, both present and future pertaining to the Company's manufacturing units/divisions at Kalyaneshwari, Dist.: Burdwan, West Bengal.

c) Collateral Security of equitable mortgage on office space at 35, C. R. Avenue, Kolkata is standing in the name of the Company on pari passu basis.

d) Additional Security of Equitable mortgage of two floors at the Corporate office of the group at SKP House, 132A, S.P. Mukherjee Road, Kolkata - 700 026 standing in the name of Marble Arch Properties Pvt Ltd on pari passu basis.

e) Personal guarantee of Promoters/Director - Mr. Suresh Kumar Patni, Mr. Rohit Patni, & Mr. Ankit Patni.

f) Further, the restructured facilities has been secured by pledge of entire promoter & promoter group stake in Company (in Demat Form), representing 66.71% of paidup capital of Company.

2 Details of Security :

(a) Pari pasu 1st charge on all movable & immovable assets of the Company, both present & future which is pooled and charges thereon created to secure all the facilities of the Company which will rank pari pasu with the other lenders. All the aforesaid facilities will also be secured by personal guarantee of Mr. Suresh Kumar Patni, Mr. Rohit Patni and Mr. Ankit Patni.

(b) Working Capital facilities from banks carries interest of 11.75% p.a. (Linked to MI base rate), subject to reset of every year.

c) There are no Micro, Small and Medium Enterprises to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2015. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

d) The trade payble includes Rs. 2,774.06 Lacs (P.Y. Rs. 1,687.02) due to related parties (Refer Note No. 37)

e) Gross Block of Rs. 103.67 Lacs on account of assets whose useful life is already exhausted as at April 01, 2014 have been adjusted against the opening balance of profit & loss account pursuant to adoption of estimated useful life of fixed assets as stipulated by Schedule II to the Companies Act, 2013.

e) Depreciation for the year would have been lower by ' 322 Lacs, if the Company would have continued to charge depreciation as per previous method.

3 a) Term Deposits with Banks include :

* Interest accrued but not due amounting to Rs. NIL (P.Y. Rs. 185.39 Lacs)

b) Term Deposits amounting to Rs. 690 Lacs (P.Y. Rs. 2,548.66 Lacs) have been pledged as margin money against Letter of Credit and Bank guarantee facilities.

c) Consumption of Stores and Spares includes Rs. 531.75 Lacs towards cost of Electrode Carbon Paste which were previously classified under the head Consumption of Raw Materials.

4 CORPORATE DEBT RESTRUCTURING

As a part of its financial revival process, the lenders of the Company have already approved the Corporate Debt Restructuring of debts. CDR EG vide its letter dated 10th November, 2014 has approved the loan restructuring scheme for the Company. The CDR Package includes reliefs/measures such as reduction in interest rates, funding of interest, rearrangement of securities etc.

The salient features of which are as follows :

a) Cut off date for implementation: 30th April, 2014 and upon implementation, the financial effect thereof has duly been taken into accounts. The said accounts are subject to confirmation and reconciliation with the Lenders. The reported financials would have consequential impact once the reconciliation is completed, the quantum where of remains unascertained.

b) Waiver of liquidated damages/compounding interest/penal interest for the period from 30th April, 2014 till implementation of the CDR package.

c) Restructuring of existing loans into Restructured Term Loans, conversion of irregular portion of working capital facilities into Working Capital Term Loan (WCTL) of Rs. 12,324 Lacs and creation of Funded Interest Term Loan (FITL) of Rs. 3,328 Lacs from interest on Restructured Term Loan and Working Capital Term Loan for the period from 1st May, 2014 to 30th April, 2016.

d) Restructuring of existing fund based and non fund based financial facilities.

e) Rate of interest on Term Loans/WCTL/FITL would be reset after completion of 2 years and rate of interest on working capital would be reset every year.

f) The option of selling off the 30 MW CPP or part thereof may be explored and considered with prior approval of the lenders and the CDR EG to liquidate the bank's dues.

g) The CDR Package as well as the provisions of the Master Circular on Corporate Debt Restructuring issued by the Reserve Bank of India, gives a right to the CDR Lenders to get a recompense of their waivers and sacrifices made as part of the CDR Proposal. The recompense payable by the Company is contingent on various factors, the outcome of which currently is materially uncertain and hence the proportionate amount payable as recompense has been treated as a contingent liability. The aggregate present value of the outstanding sacrifice made/to be made by CDR Lenders as per the CDR package is approximately Rs. 15,117 Lacs.

h) Contribution of Rs. 1,267 Lacs in the Company by the promoters in lieu of bank sacrifices. The contribution is to be brought initially in the form of unsecured loan and the same is to be converted into equity.

5 CONTINGENT LIABILITIES AND COMMITMENTS

Contingent Liabilities not provided for in the books of accounts in respect of :

(a) Bills discounted with Banks outstanding as on 31st March, 2015 - Rs. 587.38 (Previous Year Rs. 881.72 Lacs ).

(b) Excise Demand of Rs. 36.67 Lacs (Previous Year Rs. 36.67 Lacs) for the financial year 2005-06, 2006-07 & 2007-08 disputed in appeal. The Company has paid a sum of Rs. 20.92 Lacs (Previous Year Rs. 18.62 Lacs) under protest.

(c) Sales Tax Demand disputed in appeal for the Financial year 2005-06, 2006-07, 2008-09 & 2009-10 aggregates to Rs. 1,743.67 Lacs (Previous Year Rs. 3,019.76 Lacs). The Company has paid a sum of Rs. 88.62 Lacs (Previous Year Rs. 88.62 Lacs) under protest.

(d) Several Parties including the Company have disputed the basis of levy of Fuel Surcharge in the electricity bills of Damodar Valley Corporation (DVC). Pending finalisation of the outcome of the matter, an amount of Rs. 2,964.20 Lacs (Previous Year Rs. 2,991.99 Lacs) (after considering waiver of electricity duty admitted by DVC) has not been provided for by the Company.

(e) The Company has challenged the constitutional validity of Entry Tax levied by the Government of West Bengal w.e.f 1st April, 2012. In view of the stay granted by the Hon'ble High Court of Calcutta, the Company has not provided for the same in the books of accounts amounting to Rs. 272.51 Lacs.

(f) Relating to Assessment year 2012-13, a demand of Rs. 1,606.46 Lacs was raised by Income Tax Department against which the Company has filed an application to respective department.

(g) Right to Recompense to CDR Lenders for the relief and sacrifice extended, subject to provisions of CDR Guidelines, amounting to Rs. 1,045 Lacs.

6 AMOUNTS RECEIVABLE / PAYABLE IN FOREIGN CURRENCY

(a) Forward contracts/hedging instruments outstanding as at the Balance Sheet date are Rs. Nil. (P.Y. Rs. NIL).

7 In the opinion of the management, current and non-current assets have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the accounts. Adequate provisions have been made for all known losses and liabilities.

8 Certain balances of Trade Payables, Trade Receivables and Advances are subject to confirmation and reconciliation.

9 EMPLOYEE BENEFITS

The disclosures of Employee Benefits as defined in Accounting Standard - 15 are given below :

Defined Benefit Plan :

The employees' gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on the actuarial valuation using the Projected Unit Credit Method as on 31st March, 2015, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market.

The discounting rate is considered based on market yield on government bonds having currency and terms consistent with the currency in terms of the post employment benefit obligations.

The above information is certified by an Actuary.

10 INTEREST IN JOINT VENTURE

The Company has the following investment, in a jointly controlled entity:

Name of the entity : SKP Mining Pvt. Ltd.

Country of Incorporation : India

Percentage of ownership interest : 50% as at 31st March, 2015 Percentage of ownership interest : NIL as at 31st March, 2014

The Company's interest in this Joint Venture is reported as Non-current Investment (Refer Note No. 12) and is stated at cost (net of provision for other than temporary diminution in value). The Company's share of each of the assets, liabilities, income, expenses, etc (each without elimination of the effect of transactions between the Company and the Joint Venture) related to its interest in this joint venture, based on the audited financial statements are :

11 SEGMENT REPORTING

Business Segments: The Company is mainly engaged in the business segment of manufacture & sale of Ferro Alloys, Trading in Iron & Steel and Generation of Power.

Geographical segments: The Company's secondary geographical segments have been identified based on the location of customers and are disclosed based on revenues within India and revenues outside India. Secondary segment assets are based on the location of such assets.

12 RELATED PARTY DISCLOSURE

(i) Name of the related parties where control exists irrespective of whether transactions have occurred or not

(a) Enterprise on which the Company : SKP Mining Pvt. Ltd. - Joint has control Venture

(b) Key Managerial Personnel (KMP) Mr. Suresh Kumar Patni, Managing Director Mr. Ankit Patni, Director Mr. Satish Kumar Singh, Executive Director Mr. Sanjeet Kr. Gupta, Chief Financial Officer Ms. Richa Agarwal, Company Secretary

(c) Relatives of Key Managerial Mr. Rohit Patni Personnel: Mrs. Sarita Patni

(d) Entities/Individuals owning directly or indrectly an interest in the voting power that gives them control :

Shubham Complex Pvt. Ltd.

Relybulls Derivatives & Commodities Pvt. Ltd.

SKP Power Ventures Ltd.

SKP Aviation Services Ltd.

A. B. Infratel Pvt. Ltd.

SBM Steels Pvt. Ltd.

Gajkarna Merchandise Pvt. Ltd.

Gajavakra Merchandise Pvt. Ltd.

Gannath Commerce Pvt. Ltd.

Mahabala Merchants Pvt. Ltd.

Marble Arch Properties Pvt. Ltd.

Narmada River Resources Pvt. Ltd.

(e) Enterprises owned or significantly influenced by the Key Managerial Personnel or their relatives:

Ankit Metal & Power Ltd.

Impex Metal & Ferro Alloys Ltd.

Rohit Ferro-Tech Ltd.

Suanvi Trading & Investment Co Pvt. Ltd.

Shreyansh Leafin Pvt. Ltd.

SKP Overseas Pte. Ltd.

Vasupujya Enterprises Pvt. Ltd.

Whitestone Suppliers Pvt. Ltd.

Astabhuja Properties Pvt. Ltd.

13 The operations of the Company are severely impacted by weak steel industry scenario and lack of demand for Company's finished product. The Company has incurred loss after tax of Rs. 6,143.65 Lacs and accumulated loss as on 31st March, 2015 is Rs. 6,349.26 Lacs which is in excess of 50% of the net worth of the Company.

As a part of its financial revival process, the lenders of the Company has already approved CDR package (as referred in note no. 27 above). The Company has continuous support from the promoters and has put in place measures for revival and cost reduction.

Considering the above initiative of the Company and given the overall position of steel industry in India, the financial statements have been prepared under Going Concern basis.

14 The Company has not made any remittance in foreign currencies on account of dividend during the year and does not have infor- mation as to the extent to which remittance in foreign currencies on account of dividends have been made on behalf of non-resi- dent shareholders.

15 Previous year's figures have been reworked, re-grouped, re-arranged and reclassified, wherever considered necessary. Accordingly amounts and other disclosures for the preceding year are included as an integral part of the current year financial Statements and are to be read in relation to the amounts and other disclosures relating to the current year.

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Mar 31, 2014

1. Notes:

1. The above Cash Flow Statement has been prepared under the "Indirect Method" as set out in the Accounting Standard- 3 on ''Cash Flow Statement'' notified by the Companies (Accounting Standards) Rules, 2006.

2. Cash and Cash equivalents include cash and cheques in hand and bank balances on current accounts [Refer Note No.15 to the Accounts].

3. Figures in brackets indicate cash outflows.

4. Previous year''s figures have been regrouped/rearranged, wherever considered necessary to conform to this year''s classification.

Notes to and forming part of the Financial Statements as at 31st March, 2014

NOTE 2 CONTINGENT LIABILITIES & COMMITMENTS

A) Contingent Liabilities not provided for in the books of accounts in respect of: -

(a) Bills discounted with Banks outstanding as on 31st March 2014 - Rs. 881.72 Lacs (P.Y. Rs. 4,725.11 Lacs)

(b) Excise Demand of Rs. 36.67 Lacs (P.Y. Rs. 36.67 Lacs) for the financial year 2005-06, 2006-07 & 2007-08 disputed in appeal. The Company has paid a sum of Rs. 18.62 Lacs (P.Y. Rs. 18.62 Lacs) under protest.

(c) Sales Tax Demand disputed in appeal for the year 2005-06, 2006-07, 2008-09 & 2009-10 aggregates to Rs. 3019.76 Lacs (P.Y. Rs. 3019.76 Lacs). The Company has paid a sum of Rs. 88.43 Lacs (P.Y. Rs. 88.43 Lacs) under protest.

(d) Several Parties including the Company have disputed the basis of levy of Fuel Surcharge in the electricity bills of Damodar Valley Corporation (DVC). Pending finalisation of the outcome of the matter, an amount of Rs. 3,356.29 Lacs (P.Y. Rs. 2,430.32 Lacs) (after considering waiver of electricity duty admitted by DVC) has not been provided for by the Company.

(e) The Company has challenged the constitutional validity of Entry Tax levied by the Government of West Bengal w.e.f 1st April, 2012. In view of the stay granted by the Hon''ble High Court of Calcutta, the Company has not provided for the same in the books of accounts amounting to Rs. 272.51 Lacs (P.Y. Rs. 146.99 Lacs).

B) Estimated amount of contracts remaining to be executed on Capital Account and not provided for - Rs. Nil (P.Y. Rs. 44.27 Lacs). Advances paid there against - Rs. Nil (P.Y. Rs. 82.49 Lacs).

NOTE 3

In the opinion of the management, current and non-current assets have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the accounts. Adequate provisions have been made for all known losses and liabilities.

NOTE 4

Certain balances of Trade Payables, Trade Receivables and Advances are subject to confirmation.

NOTE 5 EMPLOYEE BENEFITS

The disclosures of Employee Benefits as defined in Accounting Standard - 15 are given below

Defined Benefit Plan :

The employees'' gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on the actuarial valuation using the Projected Unit Credit Method as on 31st March 2014, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

Expected rate of return assumed by the Insurance Company is generally based on their investment pattern as stipulated by the Government of India.

The Company expects to contribute Rs. 21.38 Lacs (P.Y. Rs. 5.00 Lacs) to the Gratuity Fund managed by the SBI Life Insurance Company Limited during the financial year 2014-15.

The above information is certified by an Actuary.

NOTE 6 SEGMENT REPORTING

Business Segments: The Company is mainly engaged in the business segment of manufacture & sale of Ferro Alloys, Trading in Iron & steel and Generation of Power.

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Mar 31, 2013

NOTE 1 CONTINGENT LIABILITIES & COMMITMENTS

A) Contingent Liabilities not provided for in the books of accounts in respect of: -

(a) Bills discounted with Banks outstanding as on 31st March, 2013 - D 4,725.11 Lacs (P.Y. D 2,374.03 Lacs).

(b) Excise Demand of D 36.67 Lacs (P.Y. D 28.87 Lacs) for the Financial Year 2005-06, 2006-07 & 2007-08 disputed in appeal. The Company has paid a sum of D 18.62 Lacs (P.Y. D 5 Lacs) under protest.

(c) Sales Tax Demand disputed in appeal for the year 2005-06, 2006-07, 2008-09 & 2009-10 aggregates to D 3,019.76 Lacs (P.Y. D 2,400.29 Lacs). The Company has paid a sum of D 88.62 Lacs (P.Y. D 88.62 Lacs) under protest.

(d) Several Parties including the Company have disputed the basis of levy of Fuel Surcharge in the electricity bills of Damodar Valley Corporation (DVC). Pending fi nalisation of the outcome of the matter, an amount of D 2,430.32 Lacs (P.Y. D 2,681.56 Lacs) (after considering waiver of electricity duty admitted by DVC) has not been provided for by the Company.

(e) Claims not acknowledged as debts for commitment charges debited by the Bank - D Nil (P.Y. D 135.27 Lacs).

(f) The Company has challenged the constitutional validity of Entry Tax levied by the Government of West Bengal w.e.f. 1st April, 2012. In view of the stay granted by the Hon''ble High Court of Calcutta, the Company has not provided for the same in the books of accounts amounting to D 146.99 Lacs (P.Y. D Nil).

B) Estimated amount of contracts remaining to be executed on Capital Account and not provided for - D 44.27 Lacs (P.Y. D 150.58 Lacs). Advances paid there against - D 82.49 Lacs (P.Y. D 92.90 Lacs).

NOTE 2 AMOUNTS RECEIVABLE / PAYABLE IN FOREIGN CURRENCY)

Forward contracts/ hedging instruments outstanding as at the Balance Sheet date are Nil.

NOTE 3

In the opinion of the management, current and non-current assets have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the accounts. Adequate provisions have been made for all known losses and liabilities.

NOTE 4

Certain balances of Trade Payables, Trade Receivables and Advances are subject to confi rmation.

NOTE 5 EMPLOYEE BENEFITS

The disclosures of Employee Benefi ts as defi ned in Accounting Standard - 15 are given below

Defined Contribution Plan:

Contribution to Defi ned Contribution Plan, recognised as expense for the year is as under:

Defi ned Benefi t Plan:

The employees'' gratuity fund scheme managed by a Trust is a defi ned benefi t plan. The present value of obligation is determined based on the actuarial valuation using the Projected Unit Credit Method as on 31st March, 2013, which recognises each period of service as giving rise to additional unit of employee benefi t entitlement and measures each unit separately to build up the fi nal obligation.

Expected rate of return assumed by the Insurance Company is generally based on their investment pattern as stipulated by the Government of India.

The Company expects to contribute D 5.00 Lacs (P.Y. D 4.55 Lacs) to the Gratuity Fund managed by the SBI Life Insurance Company Limited during the fi nancial year 2013-14.

The above information is certifi ed by an Actuary.

NOTE 6 SEGMENT REPORTING

Business Segments: The Company is mainly engaged in the business segment of manufacture & sale of Ferro Alloys, Trading in Iron & steel and Generation of Power.

NOTE 7 RELATED PARTY DISCLOSURE

(i) Parties where control exists irrespective of whether transactions have occurred or not : None

(ii) Names of the other related parties with whom transactions have taken place during the year:

(a) Key Managerial Personnel (KMP) Mr. Suresh Kumar Patni, Managing Director

Mr. Satish Kumar Singh, Executive Director (w.e.f. 24.08.2012)

(b) Enterprises owned or signifi cantly infl uenced by the Key Managerial Personnel or their relatives:

Ankit Metal & Power Limited

Arthodock Vinimay Private Limited

Dhodwala Enterprises Limited

Gold Mohar Steel Limited

Hira Concast Limited

Impex Cements Limited

Impex Industries Limited

Impex Metal & Ferro Alloys Limited

Impex Steel Limited

Invesco Finance Private Limited

Maa Sherawali Ispat Private Limited

Mahabali Ispat Private Limited

Patni Metal & Ferro Alloys Limited

Poddar Mech Tech Services Private Limited

Rohit Ferro-Tech Limited

Suanvi Trading & Investment Co. Private Limited

Shreyansh Leafi n Private Limited

SKP Overseas Pte Ltd.

Vasupujya Enterprises Private Limited

VSN Agro Products Limited

Whitestone Suppliers Private Limited

NOTE 8

Previous year''s fi gures have been reworked, re-grouped, re-arranged and reclassifi ed, wherever considered necessary. Accordingly amounts and other disclosures for the preceding year are included as an integral part of the current year Financial Statements and are to be read in relation to the amounts and other disclosures relating to the current year.

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Mar 31, 2012

Note 1 SHARE CAPITAL

(a) Terms/Rights attached to Equity Shares

The Company has only one class of Equity Shares having a par value of Rs. 10/- per share. Each holder of Equity Shares is entitled to one vote per share. The Company declares and pays dividends 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. However, no dividend has been declared by the Company. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company after distribution of all preferential amount. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

(b) The Company has made preferential allotment of 17,500,000 Equity Shares of Rs. 10/- each at Rs. 20/- per Equity Share (including a premium of Rs. 10/-) in terms of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 on 21st February, 2012. The Company has utilised the proceeds of the issue towards the objects of the said issue, i.e., repayment of unsecured loans, long-term working capital requirements and other general corporate purposes.

Note 2 LONG-TERM BORROWINGS

(A) Details of Security

(a) Term loans from Banks are secured by first charge on all the immovable & movable plant and machinery and other fixed assets including equitable mortgage of factory land with shed & building and office premises and second charge on the current assets of the Company all ranking pari-passu jointly in favour of State Bank of India, Punjab National Bank and Bank of Baroda and personally guaranteed by the promoter Directors.

(b) Loans against Vehicles are secured by way of hypothecation of the underlying asset financed.

(B) Terms of Repayment

b) Unsecured Loan from Bodies Corporate amounting to Rs. 5,958.81 Lacs are interest free. Balance carry an average interest rate of 12%. The loans are repayable at the option of the Company and are stated by the management to be in the nature of long-term borrowings.

c) Loans against Vehicles are repayable by way of Equated Monthly Instalments subsequent to taking of such loan. The original period of such loans is between 3 and 5 years.

Note 3 SHORT-TERM BORROWINGS

(A) Details of security:

Working capital loans are secured by hypothecation of entire current assets including Stocks of Raw Materials, Stock-in-Process, Finished Goods, Stores and Spares, Receivables, both present & future ranking pari-passu jointly in favour of State Bank of Indi, Punjab National Bank, Bank of Baroda and United Bank of India and also secured by second charge on all the block assets and personally guaranteed by the promoter Directors.

(B) Bridge Loan from WBIDC was sanctioned against interest subsidy receivable by the Company under West Bengal Incentive Scheme, 2000. As per the stipulated repayment terms, the said Bridge Loan is overdue for repayment since September, 2011. The Company intends to link the repayment of the said bridge loan with the receipt of admitted subsidy amount.

Note 4 TRADE PAYABLES

a) There are no Micro, Small and Medium Enterprises to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2012. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

b) Trade Payables include Rs. 2,019.13 Lacs (PY - Rs. 3,392.44 Lacs) against pledge of stock of raw materials.

Note 5 CASH & BANK BALANCES

a) Balances in respect of certain inoperative bank accounts amounting to Rs. 2.10 Lacs (P.Y. - Rs. 4.10 Lacs) are subject to confirmation.

b) Term Deposits with Banks include:

- Interest accrued but not due amounting to Rs. 144.33 Lacs (P.Y. - Rs. 74.49 Lacs)

- Overdue deposits amounting to Rs. 47.18 Lacs (P.Y. - Rs. NIL)

c) Term Deposits amounting to Rs. 2,117.27 Lacs (P.Y. - Rs. 2,049.74 Lacs) have been pledged as margin money against letter of credit facilities.

Note 6 SHORT TERM LOANS & ADVANCES

a) VAT Credit Receivable/Refundable includes Rs. 8.24 Lacs (P.Y. - Rs. 8.24 Lacs) paid to Bureau of Investigation in course of enquiries relating to Sales Tax matters.

b) Income Tax Payments include Rs. 21.42 Lacs (P.Y. - Rs. 21.42 Lacs) seized pursuant to search and seizure operation conducted by the Income Tax authorities on 5th January, 2004.

c) The Company has made current tax provision for Minimum Alternate Tax (MAT) under Section 115JB of the Income Tax Act, 1961. As per the provisions of Section 115JAA, MAT Credit receivable for the amount in excess over tax liability as per normal computation has been recognised as an asset. The said asset is created by way of a credit to the Statement of Profit & Loss and shown as MAT Credit Entitlement.

Note 7 CONTINGENT LIABILITIES & COMMITMENTS

A) Contingent Liabilities not provided for in the books of accounts in respect of :-

(a) Bills discounted with Banks outstanding as on 31st March, 2012 - Rs. 2,374.03 Lacs (P.Y - Rs. 973.66 Lacs).

(b) Excise Demand of Rs. 28.87 Lacs (P.Y. - Rs. 36.12 Lacs) for the financial year 2005-06, 2006-07 & 2007-08 disputed in appeal (Rs. 5.00 Lacs is paid under protest).

(c) Sales Tax Demand disputed in appeal for the year 2005-06, 2006-07, 2008-09 & 2009-10 aggregates to Rs. 2,400.29 Lacs (P.Y. - Rs. 1,703.79 Lacs). The Company has paid a sum of Rs. 88.62 Lacs (P.Y. - Rs. 139.66 Lacs) under protest.

(d) Several parties including the Company have disputed the basis of levy of Fuel Surcharge in the electricity bills of Damodar Valley Corporation (DVC). During the year, the Company has recognised amount of Rs. 777.61 Lacs as expense being the adhoc payments made against the bills. An amount of Rs. 2,681.56 Lacs (P.Y. - Rs. 1,952.98 Lacs) (after considering waiver of electricity duty admitted by DVC) has not been provided for by the Company.

(e) Claims not acknowledged as debts for commitment charges debited by the Bank - Rs. 135.27 Lacs (P.Y. - Rs. 135.27 Lacs).

B) Estimated amount of contracts remaining to be executed on Capital Account and not provided for - Rs. 150.58 Lacs (P.Y. - Rs. 1,961.47 Lacs). Advances paid there against - Rs. 92.90 Lacs (P.Y. - Rs. 1,182.04 Lacs)

Note 8 EMPLOYEE BENEFITS

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market.

The discounting rate is considered based on market yield on government bonds having currency and terms consistent with the currency in terms of the post Employment Benefit Obligations.

Expected rate of return assumed by the insurance Company is generally based on their investment pattern as stipulated by the Government of India.

The Company expects to contribute Rs. 4.55 Lacs to the Gratuity Fund managed by the SBI Life Insurance Company Limited during the financial year 2012-13.

Note 9 RELATED PARTY DISCLOSURE

(i) Parties where control exists irrespective of whether transactions have occurred or not : None

(ii) Names of the other related parties with whom transactions have taken place during the year:

(a) Key Managerial Personnel (KMP) Mr. Suresh Kumar Patni, Managing Relative of KMP Director Mr. Virendra Kumar Jain

(b) Enterprises owned or significantly influenced by the Key Managerial Personnel or their relatives:

Ankit Metal & Power Ltd.

Arin Minerals Private Ltd.

Arthodock Vinimay Pvt.Ltd.

Brahmand Udyog Ltd.

Dhodwala Enterprises Ltd.

Gold Mohar Steel Ltd.

Hira Concast Ltd.

Impex Cements Ltd.

Impex Industries Ltd.

Impex Metal & Ferro Alloys Ltd.

Impex Steel Ltd.

Invesco Finance Pvt. Ltd.

Mahabali Ispat Pvt. Ltd.

Patni Metal & Ferro Alloys Ltd.

Poddar Mech Tech Services Pvt. Ltd.

Rohit Ferro-Tech Ltd.

Sahyogi Distributors Ltd.

Suanvi Tradings Investment Co. Pvt. Ltd.

Shreyansh Leaf in Pvt. Ltd. Unilever Enterprises Pvt. Ltd. Vasupujya Enterprises Pvt. Ltd. Vikash Metal & Power Ltd. Vikash Smelters & Alloys Ltd. VSN Agro Products Ltd. Whitestone Suppliers Pvt. Ltd.

Note 10 CHANGE IN ACCOUNTING POLICY

(a) During the year, the Company has changed its accounting policy relating to the accounting of share issue expenses from writing off 1/5th of the expenditure every year to adjusting the same against the balance available in Securities Premium Account in line with Section 78 of the Companies Act, 1 956. Had there been no change in the accounting policy, the profit for the year would have been lower by Rs. 25.61 Lacs.

(b) The Company has accounted for Interest Subsidy Receivable from the Government of West Bengal under West Bengal Incentive Scheme aggregating to Rs. 342.00 Lacs as the Company has complied with the conditions attached thereto and there is reasonable assurance that the grants will be received. Subsidies were hitherto recognised on receipt basis in earlier years. Had there been no change in the accounting policy, the profit for the year would have been lower by Rs. 342.00 Lacs.

Note 11

The Financial Statements for the year ended 31st March, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. The Financial Statements for the year ended 31st March, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of Financial Statements.

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Mar 31, 2011

I. Contingent Liabilities not provided for in the books of accounts in respect of :

a) Bank Guarantees-Rs.3,009,706 (P.Y.-Rs. Nil)

b) Letters of Credit opened in favour of suppliers, outstanding as at 31I st March, 2011 - Rs. 2,377,982 (P.Y. - Rs. 1,134,3 15).

c) Bills discounted with Banks outstanding as on 31 st March, 2011 - Rs. 97,366,332 (P.Y.- Rs.172,442,760).

d) Excise Demand of Rs. 3,612,074 (P.Y. - Rs. 3,601,293) for the financial year 2005-06, 2006-07 & 2007-08 disputed in appeal (Rs.500,000 is paid under protest).

e) Sales Tax Demand disputed in appeal for the year 2005-06, 2006-07, 2007-08 & 2009-10 aggregates to Rs. 170,379,312 (P.Y - Rs. 269,148,142). The Company has paid a sum of Rs. 13,965,734 (P.Y - Rs. 11,465,734) under protest.

f)Excise duty liabilities arising out of search operations by the Directorate General of Central Excise Intelligence and Commissioner of Central Excise, Bolpur. However, the Company has paid under protest a sum of Rs. 36.25 lacs (P.Y. - Rs. 32.10 lacs), pending issuance of any show cause notice.

g) Several parties including the Company have disputed the basis of levy of Fuel Surcharge in the electricity bills of Damodar Valley Corporation (DVC). Accordingly an amount of Rs. 1 95,297,820 (P.Y. - Rs. 1 62,544,658) (after considering waiver of electricity duty admitted by DVC) has not been provided for by the Company. Pending adjudication of final demand, the Company has made adhoc payments against the bills.

h) Claims not acknowledged as debts for commitment charges debited by the Bank - Rs.13,527,055 (P.Y. - Rs. 10,444,146).

2. Estimated amount of contracts remaining to be executed on Capital Account and not provided for - Rs. 196,146,838 (P.Y. - Rs. 541,476,405). Advances paid there against - Rs. 1 18,203,890 (P.Y - Rs. 428,330,458).

3. In the opinion of the management, the Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the accounts. Adequate provisions have been made for all known losses and liabilities.

4. Certain balances of Sundry Creditors, Sundry Debtors and Advances are subject to confirmation.

5. Balances in respect of certain inoperative bank accounts amounting to Rs. 410,279 (P.Y. -Rs. 100,752) are subject to confirmation.

6. There are no Micro, Small and Medium Enterprises to whom the Company owes dues, which are outstanding for more than 45 days as at 31 st March, 201I. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

7. Loans and Advances includes Rs. 2,141,890 (P.Y. - Rs. 2,141,890) seized pursuant to search and seizure operation conducted by the Income Tax authorities on 5th January, 2004 and Rs. 823,640 (P.Y. - Rs. 823,640) paid to Bureau of Investigation in course of enquiries relating to Sales Tax matters.

8. Sundry Debtors include Rs. 26,582,378 (P.Y - Rs. 5,146,502) covered by letters of credit in favour of the Company. Sundry Creditors include Rs. 1,238,833,309 (P.Y. - Rs. 1,226,151,843) against which letters of credit are outstanding at Balance Sheet date and Rs. 385,608,974 (P.Y. - Rs. 253,332,039) against pledge of stock of raw materials.

9. Managerial Remuneration

b) Liability for gratuity is provided for on actuarial basis for the Company as a whole. The amount pertaining to directors is not ascertainable and, therefore, not included above.

c) The computation of net profit for the purpose of directors' remuneration under Section 349 of the Companies Act, 1956 has not been enumerated since no commission has been paid to any director. Fixed managerial remuneration has been paid to the Managing Director and Whole-time Director within the limit as per Schedule XIII of the Companies Act, 1956.

10. Fixed Deposit includes interest accrued but not due amounting to Rs. 7,449,420 (P.Y - Rs. 2,464,790).

11. Capital work-in-progress includes Rs. 234,956,742 (P.Y. - Rs. I3 1,006,175) as preoperative expenses relating to project under implementation, pending allocation to Fixed Assets.

12. Employee Benefits

Defined Benefit Plan :

The employees' gratuity fund scheme managed by a trust is a defined benefit plan. The present value of obligation is determined based on the actuarial valuation using the Projected Unit Credit Method as on 31st March, 2011, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market.

The discounting rate is considered based on market yield on government bonds having currency and terms consistent with the currency in terms of the post employment benefit obligations.

Expected rate of return assumed by the insurance company is generally based on their investment pattern as stipulated by the Government of India.

The above information is certified by the actuary.

13. Segment Reporting

(a) Business segments : The Company is mainly engaged in the business segment of manufacture & sale of Ferro Alloys and trading in Iron & Steel.

(b) Geographical segments : The Company's secondary geographical segments have been identified based on the location of customers and are disclosed based on revenues within India and revenues outside India. Secondary segment assets are based on the location of such asset.

14. Related Party Disclosures

(i) Name of the related parties where control exists irrespective of whether transactions have occurred or not:

None.

(ii) Names of the other related parties with whom transactions have taken place during the year :

(a) Key Managerial Personnel Mr.Suresh Kumar Patni,Managing Director Mr.Virendra Kumar Jain, Whole Time Director (up to 28.03.2011)

(b) Enterprises owned or Ankit Metal & Power Ltd. significantly influenced Ann Minerals Pvt. Ltd. by the Key Managerial Brahmand Udyog Ltd. Personnel or their relatives DC Ispat Ltd. Dhodwala Enterprises Ltd. Gold Mohar Steel Ltd. Hira Concast Ltd. Impex Cements Ltd. Impex Industries Ltd. Impex Metal & Ferro Alloys Ltd. Impex Steel Ltd. Patni Metal & Ferro Alloys Ltd. Rohit Ferro-Tech Ltd. Sahyogi Distributors Ltd. Unilever Enterprises Pvt. Ltd. Vasupujya Enterprises Pvt.Ltd. Vikash Metal & Power Ltd. Vikash Smelters & Alloys Ltd. VSN Agro Products Ltd. Whitestone Suppliers Pvt.Ltd.

15. Additional information pursuant to the provisions of paragraphs 3 & 4 of Part II of Schedule VI to the Companies Act, 1956.

(a) Capacity, Production, Sales & Stock

Licensed Capacity : N.A.

Installed Capacity : Ferro-Alloys 59,025 MT Per Annum (P.Y. - 59,025 MT)

(Installed Capacity has been certified by the management and not verified by the auditors being a technical matter)

16. Previous year's figures have been reworked, regrouped, rearranged and reclassified wherever considered necessary. Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current year's financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

---

Mar 31, 2010

1. Contingent Liabilities not provided for in the books of accounts inrespect of:(a) Bank Guarantees - Rs. Nil (Previous year Rs. 8,500,000).

(b) Letters of Credit opened in favour of suppliers, outstanding as at 31st March 2010 - Rs.1,134,315 (Previous year Rs. 12,945,085).

(c) Bills discounted with Banks outstanding as on 31st March 2010, Rs. 172,442,760 (Previous year Rs. 122,257,324).

(d) Excise Demand of Rs. 3,601,293 (Previous year Rs. 3,088,751) forthefinancial year 2005-06,2006- 07 and 2007-08 disputed in appeal (Rs. 500,000 is paid under protest).

(e) Sales Tax Demand disputed in appeal for the year 2005-06, 2006-07 & 2009-2010 aggregates to Rs. 269,148,142. The company has paid a sum of Rs. 11,465,734 under protest. (f) Excise duty liabilities arising out of search operations by the Directorate General of Central Excise Intelligence and Commissioner of Central Excise, Bolpur. However, the Company has paid under protest a sum of Rs. 32.10 Lacs, pending issuance of any show cause notice.

(g) Several Parties including the Company have disputed the basis of levy of Fuel Surcharge in the electricity bills of Damodar Valley Corporation (DVC). Accordingly an amount of Rs. 162,544,658 (after considering waiver of electricity duty admitted by DVC) has not been provided for by the Company. Pending adjudication of final demand, the Company has made adhoc payments against the bills.

(h) Claims not acknowledged as debts for commitment charges debited by a Bank - Rs. 10,444,146 (Previous year- Rs. 5,839,282).

2. Estimated amount of contracts remaining to be executed on Capital Account and not provided for - Rs. 541,476,405 (Previous year Rs. 935,528,394). Advances paid there against - Rs. 428,330,458 (Previous year-Rs. 189,553,999).

3. In the opinion of the management, the Current Assets, Loans & advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the accounts. Adequate provisions have been made for all known losses and liabilities.

4. Certain balances of Sundry Creditors, Sundry Debtors and Advances are subject to confirmation.

5. Balances in respect of certain inoperative bank accounts amounting to Rs. 100,752 are subject to confirmation.

6. There are no Micro, Small and Medium Enterprises to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2010. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

7. The Company during the year issued 24,971,604 equity shares of Rs 10 each on right basis at a price of Rs 16 per share as per the basis of allotment finalised in consultation with the Bombay Stock Exchange Limited, aggregating to Rs. 399,545,664 which has been utilised for setting up of 5th Submerged Electric Arc Furnace of 7.5 MVA capacity, Installation of 30 MW Captive Power Plant and Issue Expenses.

8. In the year 2008-09, the Company had issued 6,000,000 Preferential Convertible Warrants (Exercise Price of Rs.22.25 each) on preferential basis to promoters & a non promoter. Each warrant carried a right to convert the same into one Equity Share of Rs.10 each at a premium of Rs.12.25 each (as per the formula prescribed under the SEBI (DIP Guidelines) over a period of 18 months from the date of allotment. Warrant holders having expressed their inability to pay the remaining amount, the Board of Directors forfeited the same and credited the amount of Rs. 13,380,000 received against those warrants to capital reserve.

9. Loans and Advances include Rs. 2,141,890 (Previous year - Rs. 2,141,890) seized pursuant to search and seizure operation conducted by the Income Tax authorities on 5th January, 2004 and Rs. 823,640 (Previous year - Rs. 823,640) paid to Bureau of Investigation in course of enquiries relating to Sales Tax matters.

10. Sundry Debtors include Rs. 5,146,502 (Previous year - Rs. 7,581,360) covered by letters of credit in favour of the Company. Sundry Creditors include Rs. 1,226,151,843 (Previous year - Rs. 573,028,915) against which letters of credit are outstanding at Balance Sheet date and Rs. 253,332,039 (Previous year - Rs. 160,543,716) against pledge of stock of raw materials.

(b) Liability for gratuity is provided for on actuarial basis for the Company as a whole. The amount pertaining to directors is not ascertainable and, therefore, not included above.

(c) The computation of net profit for the purpose of directors remuneration under Section 349 of the Companies Act, 1956 has not been enumerated since no commission has been paid to any director. Fixed managerial remuneration has been paid to the Managing Director and Whole-time Director within the limit as per Schedule XIII of the Companies Act, 1956.

12) Amount of excise duty on variation in Stocks shown in Schedule -17 represents differential excise duty on opening and closing stock of finished goods.

13) Forward contracts/hedging instruments outstanding as at the Balance Sheet date are Nil

14) Fixed Deposit includes interest accrued but not due amounting to Rs. 2,464,790 (Previous year Rs. 7,509,247).

15) Employee Benefits

The disclosures of Employee benefits as defined in Accounting Standard -15 are given below:

Defined Contribution Plan

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The discounting rate is considered based on market yield on government bonds having currency and terms consistent with the currency in terms of the post employment benefit obligations. Expected rate of return assumed by the insurance company is generally based on their investment pattern as stipulated by the Government of India.

The above information is certified by the actuary.

16 Related party disclosures

(i) Name of the related parties where control exists irrespective of whether transactions have occurred or not: None (ii) Names ofthe other related parties with whom transactions have taken place during the year:

(a) Key Managerial Personnel Mr. Suresh Kumar Patni, Managing Director

Mr. Virendra Kumar Jain, Whole Time Director

(b) Enterprises owned or significantly Influenced by the Key Managerial Personnel or their relatives.

Ankit Metal & Power Limited

Dhodwala Enterprises Limited

HiraConcast Limited

Impex Industries Limited

Impex Steel Limited

Patni Metal &Ferro Alloys Limited

Vasupujya Enterprises Private Limited

Vikash Smelters & Alloys Limited

BrahmandUdyog Limited

Gold Mohar Steel Limited

Impex Cements Limited

Impex Metal &Ferro Alloys Limited

DC Ispat Limited (Formerly known as Nikita Ispat Private Limited]

Sahyogi Distributors Limited

Vikash Metal & Power Limited

VSNAgro Products Limited

17 Additional information pursuant to the provisions of paragraphs 3 & 4 of Part II of Schedule VI to the Companies Act, 1956.

a) Capacity, Production, Sales & Stock

Licensed Capacity : N.A.

Installed Capacity : Ferro Alloys 59,02 M.T.Per Annum (Previous year - 59,025 M.T.)

(Installed Capacity has been certified by the management and not verified by the auditors being a technical matter).

18) Previous years figures have been reworked, regrouped, rearranged and reclassified wherever considered necessary, Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current years financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.