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Indian Metals & Ferro Alloys Ltd.

BSE: 533047 Sector: Metals & Mining
NSE: IMFA ISIN Code: INE919H01018
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OPEN 284.40
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VOLUME 11773
52-Week high 514.00
52-Week low 230.40
P/E 2.78
Mkt Cap.(Rs cr) 1,509
Buy Price 0.00
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Sell Price 0.00
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OPEN 284.40
CLOSE 281.90
VOLUME 11773
52-Week high 514.00
52-Week low 230.40
P/E 2.78
Mkt Cap.(Rs cr) 1,509
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Indian Metals & Ferro Alloys Ltd. (IMFA) - Auditors Report

Company auditors report

To The Members of

Indian Metals and Ferro Alloys Limited

Report on the Audit of the Standalone Ind AS Financial Statements

Opinion

We have audited the accompanying Standalone Ind AS Financial Statements of INDIANMETALS AND FERRO ALLOYS LIMITED ("the Company") which comprise the BalanceSheet as at 31st March 2022 the Statement of Profit and Loss (including the Statement ofOther Comprehensive Income)the Statement of Changes in Equity and Statement of Cash Flowsfor the year then ended and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information (together referred to as"Standalone Ind AS Financial Statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS Financial Statements give the informationrequired by the Companies Act 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India of the state of affairs of the Company as at 31st March 2022 and its profitincluding other comprehensive income changes in equity and its cash flows for the yearended on that date.

Basis for Opinion

We conducted our audit of the Standalone Ind AS Financial Statements in accordance withthe Standards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the 'Auditor'sResponsibilities for the Audit of the Standalone Ind AS Financial Statements' section ofour report. We are independent of the Company in accordance with the 'Code of Ethics'issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the Standalone Ind AS Financial Statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Standalone Ind AS Financial Statements.

Emphasis of Matter

We draw attention to the following matters in the Notes to the Standalone Ind ASFinancial Statements:

a) Note Nos. 43 and 44 to the Standalone Ind AS Financial Statements relating to theCompany's exposure in its subsidiary and non-recognition of income from interest onunsecured loan given to the subsidiary respectively. These matters have arisen out of thecancellation of allotment of the coal block being held by the subsidiary vide the Hon'bleSupreme Court of India's order dated 24th September 2014 and the subsequent events inconnection therewith.

b) Note No. 59 to the standalone Ind AS Financial Statements which describes theuncertainties and the impact of Covid-19 pandemic on the Company's operations carryingamounts of investments recoverability of receivables and other assets and management'sevaluation of the future performance of the Company. In view of the uncertain economicenvironment a definitive assessment of the impact on the subsequent periods is dependentupon circumstances as they evolve.

Our opinion is not modified in respect of these matters.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificant in our audit of the Standalone Ind AS Financial Statements of the currentperiod. These matters were addressed in the context of our audit of the Standalone Ind ASFinancial Statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

Key Audit Matter Description How the matter was addressed
A. Evaluation of uncertain tax Positions (as described in Note 37A (a) to the Standalone Ind AS Financial Statements) Our Procedures included but were not limited to the following:
The Company has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes. • We obtained details of completed tax assessments and demands till the year ended March 31 2022 from the management.
• We involved our internal experts to evaluate the management's underlying assumptions in estimating the tax provision and the possible outcome of the disputes.
• Our internal experts also considered legal precedence and other rulings in evaluating management's position on these uncertain tax positions.
• We discussed with the management's tax team to understand the status of all significant provisions and any changes to management's judgements in the year.
• We read correspondence with tax authorities and Company's external tax advisors/lawyers to evaluate our assessment of recorded estimates and evaluate the completeness of the provisions recorded and whether any change was required to management's position on these uncertainties.
B. Pending litigations including litigation for electricity duty and excess extraction of minerals (as described in Note 37A (b) 45 46 and 47 to the Standalone Ind AS Financial Statements) Our Procedures included but were not limited to the following:
The Company is subject to number of claims and litigations mainly related to excess extraction of minerals differential stamp duty & registration fee and electricity duty which is pending at different adjudication authorities and Courts. • Obtained an understanding from the management with respect to process and controls followed by the Company for identification and monitoring of significant developments in relation to the litigations including completeness thereof;
The assessment of the likelihood and quantum of any liability in respect of these matters can be judgmental due to the uncertainty about the outcome. • Obtained the list of litigations from the management and reviewed their assessment of the likelihood of outflow of economic resources being probable possible or remote in respect of the litigations. This involved assessing the probability of an unfavourable outcome of a given proceeding and the reliability of estimates of related amounts;
This area is significant to our audit since the amounts involved are material to the Standalone Ind AS Financial Statements and involves estimation of outcome. • Performed substantive procedures including tracing from underlying documents/communications from the respective authorities and recomputation of the amounts involved;
• Assessed management's conclusions through discussions held with their in-house experts and understanding precedents in similar cases;
• Obtained and evaluated the independent confirmations from the consultants representing the Company before the various authorities/courts; and
• Assessed and validated the adequacy and appropriateness of the disclosures made by the management in the Standalone Ind AS Financial Statements.

Information other than the Standalone Ind AS Financial Statements and Auditor's ReportThereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe Standalone Ind AS Financial Statements and our auditor's report thereon.

Our opinion on the Standalone Ind AS Financial Statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Ind AS Financial Statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Standalone Ind AS FinancialStatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated. If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Responsibilities of the Management and Those Charged with Governance for the StandaloneInd AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these Standalone Ind AS FinancialStatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Standalone Ind AS FinancialStatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the Standalone Ind AS Financial Statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Those Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's responsibility for the Audit of the Standalone Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalone Ind ASFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Ind AS Financial Statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Standalone Ind ASFinancial Statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign 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 Companyhas adequate internal financial controls system in place and the operating effectivenessof such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Standalone Ind AS Financial Statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the Standalone IndAS Financial Statements including the disclosures and whether the Standalone Ind ASFinancial Statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatement in the Standalone Ind AS FinancialStatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the Standalone Ind AS Financial Statementsmay 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 misstatement in the Standalone Ind AS FinancialStatements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Ind AS FinancialStatements of the current period and are therefore the key audit matters. We describethese matters in our auditors' report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on other legal and regulatory requirements

1. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in the "Annexure A" a statement on the matters specified inParagraphs 3 and 4 of the Order.

2. As required by Section 143 (3) of the Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss (including other Comprehensiveincome) the Statement of Changes in Equity and the Statement of Cash Flows dealt with bythis report are in agreement with the books of account.

(d) In our opinion the aforesaid Standalone Ind AS Financial Statements comply withthe Indian Accounting Standards specified under Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended.

(e) The matter described in the para (a) of Emphasis of Matter paragraph above in ouropinion may have an adverse effect on the functioning of the Company.

(f) On the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 from being appointed as a director in terms of Section164 (2) of the Act.

(g) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

(h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its Standalone Ind AS Financial Statements - Refer Note 37 45 46 and 47 tothe Standalone Ind AS Financial Statements.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long term contracts includingderivative contracts.

iii. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

iv. a) The Management has represented that to the best of its knowledge and belief asdisclosed in the notes to accounts 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 theCompany to or in any other person or entity including foreign entity("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediaries shall whether directly or indirectly lend or investin other persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries.

b) The Management has represented that to the best of its knowledge and belief asdisclosed in the notes to accounts no funds have been received by the Company from anyperson or entity including foreign entity ("Funding Parties") with theunderstanding whether recorded in writing or otherwise that the Company shall whetherdirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Funding Party ("UltimateBeneficiaries") or provide any guarantee security or the like on behalf of theUltimate Beneficiaries.

c) Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) of Rule 11(e) as provided under (a) and(b) above contain any material misstatement

v. The dividend declared and paid during the year by the Company is in compliance withSection 123 of the Act.

3. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the managerial remuneration for the year ended 31st March 2022 has beenpaid/provided by the Company to its directors in accordance with the provisions of section197 read with Schedule V to the Companies Act 2013.

For SCV & Co. LLP
Chartered Accountants
FIRM REGISTRATION No. 000235N/N500089
(Rajiv Puri)
PARTNER
Place: New Delhi MEMBERSHIP No. 084318
Dated: 24th May 2022 ICAI UDIN: 22084318AJMIYH6957

Annexure "A" to the Independent Auditors' Report

Annexure referred to in paragraph 1 under the heading "Report on other legal andregulatory requirements" of our Report of even date.

In terms of the information and explanations sought by us and given by the Company andthe books of account and records examined by us in the normal course of audit and to thebest of our knowledge and belief we state that:

i. (a) (A) The Company has maintained proper records showing full includingquantitative details and situation of Property Plant and Equipment.

(B) The Company has maintained proper records showing full particulars of intangibleassets.

(b) Physical Verification of Property Plant and Equipment has been conducted by themanagement during the year. All the Property Plant and Equipments of the Company have notbeen physically verified by the management during the year but there is a regular phasedprogramme of physical verification which in our opinion is reasonable having regard tothe size of the Company and nature of its Property Plant and Equipments. According to theinformation and explanations given to us no material discrepancies were noticed on suchverification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties(otherthan properties where the Company is the lessee and the lease agreements are duly executedin favour of the lessee) recorded as Property Plant and Equipment in the books ofaccounts of the Company are held in the name of the Company as at the balance sheet dateexcept as detailed herein below:

(d) The Company has not revalued any of its Property Plant and Equipment (includingright- of-use assets) and intangible assets during the year.

(e) Based on the information and explanations furnished to us no proceedings have beeninitiated during the year or are pending against the Company as at 31st March 2022 forholding any benami property under the Benami Transactions (Prohibition) Act 1988 (asamended in 2016) and Rules made thereunder.

ii. (a) Physical verification of inventory has been conducted by the Management atreasonable intervals during the year and in our opinion the coverage and procedure adoptedby the management for such verification is appropriate. As per the information andexplanations given to us and based on examination of records the no discrepancies werenoticed during the physical verification of inventory as compared to book records by themanagement which could aggregate 10% or more for each class of inventory.

(b) As disclosed in note 62(vi) to the Standalone Ind AS financial statements theCompany has been sanctioned working capital limits in excess of Rs.5 crores in aggregatefrom banks during the year on the basis of security of current assets of the Company. Thequarterly returns/statements filed by the Company with such banks are in agreement withthe books of accounts.

Description of property Gross carrying value (Rs. in Crore) Held in name of Whether promoter director or their relative or employee Period held - indicate range where appropriate Reason for not being held in name of company
Free Hold Land 0.02 Indian Metal Carbide Limited (IMCL) No Since 2018 The deed of conveyance is in the erstwhile name of subsidiary which had amalgamated with the company

iii. (a) During the year the Company has provided unsecured loans to one subsidiarycompany. The aggregate amount during the year and balance outstanding at the balancesheet date with respect to such loan to subsidiary and guarantee provided to a relatedparty in earlier year is as per table given below:

(Rs. in Crore)
Particulars Loans Guarantees
Aggregate amount granted/provided during the year
- Subsidiary 0.14
- Others (Related party - Trust) Nil
Balance outstanding as at balance sheet date in respect of above case
- Subsidiary 264.04
- Others (Related party - Trust) 10.56

(Also refer Note 14 to the Standalone Ind AS Financial Statements which includes aboveloan and refer Note 14.1 to the Standalone Ind AS Financial Statements which includesabove guarantees)

(b) The terms and conditions of the loan granted during the year are not prejudicial tothe Company's interest except that the loans and interest thereon are repayable/payable ondemand which may be prejudicial to the Company's interest as one of the borrowingCompany's ability to repay/pay such loan/ interest is contingent on the outcome of certainmatters as detailed in Note 43 and 44 to the Standalone Ind AS Financial Statements.

(c) The Company has granted loan during the year to a Company is repayable on demandand therefore the schedule of repayment of principal and payment of interest has not beenstipulated.

(d) As explained in clause 3(iii)(c) above the loan is repayable on demand and we havebeen informed that no demand for principal and interest have been made by the Company tilldate and accordingly there is no amount which is overdue.

(e) As explained in clause 3 (iii) (d) above there is no amount which is overdue.Accordingly the requirement to report on clause 3(iii)(e) of the order is not applicableto the Company.

(f) As disclosed in note 14 to the Standalone Ind AS Financial Statements during theyear the Company has granted loans to its subsidiary which is repayable on demand. Thefollowing are the details of the aggregate amount of loans granted to related parties asdefined in Clause 76 of Section 2 of the Companies Act 2013

Particulars Related Party
Aggregate amount of loans Repayable on Demand Rs.264.04 Crores
Percentage of loan to the total loans 100%

(Also refer Note 14 to the Standalone Ind AS Financial Statements which includes aboveloan)

iv. In our opinion and according to the information and explanations given to us theCompany has not made investments given security guarantee which is covered underprovisions of section 185 and 186 of the Companies Act 2013. In respect of loan givenduring the year the same in our opinion is in compliance of section 185 and 186 ofCompanies Act 2013.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits nor accepted any amounts which are deemed to bedeposits within the meaning of section 73 of the Companies Act 2013 and the rules madethereunder to the extent applicable. Accordingly the requirement to report on clause3(v) of the Order is not applicable to the Company.

vi. The maintenance of cost records has been specified by the Central Government undersection 148(1) of the Companies Act 2013 for manufacturing of High Carbon Ferro Chrome.We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies (Cost Records and Audit) Rules 2014 as amended prescribed by the CentralGovernment under sub-section (1) of Section 148 of the Act and are of the opinion thatprima facie the prescribed cost records have been made and maintained. We have nothowever made a detailed examination of the same.

vii. (a) According to the information and explanations given to us and on the basis ofour examination of the books of account the Company has been generally regular indepositing undisputed statutory dues including provident fund employees' state insuranceincome-tax goods and services tax duty of custom duty of excise value added tax salestax service tax cess and other material statutory dues applicable to it to theappropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income tax goods andservices tax duty of custom duty of excise value added tax sales tax service taxcess and other material statutory dues were outstanding as on 31st March 2022 for aperiod 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 ourexamination of the books of account the dues as at 31st March 2022 of income tax goodsand services tax duty of custom duty of excise value added tax and cess which have notbeen deposited on account of any dispute are as follows:

Name of the Statute Nature of dues Amount involved (Rs. in Crore) Amount unpaid (Rs. in Crore) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax 24.05 24.05 2016-17 Commissioner of Income-tax (Appeals)-I Bhubaneswar
Income Tax Act 1961 Income Tax 5.46 4.27 2017-18 Commissioner of Income-tax (Appeals)-I Bhubaneswar
Orissa Sales Tax Act 1947 Sales Tax 0.00* 0.00* 1990- 91 to 1991- 92 Orissa High Court
Orissa Sales Tax Act 1947 Sales Tax 0.07 0.04 1994-95 Odisha Sales Tax Tribunal
Finance Act 1994 Service Tax 0.50 0.48 2012-2017 Commissioner (Appeals) Central Excise Customs & Service Tax
Central Excise Act 1944 Excise Duty 0.39 0.19 1993-2002 Orissa High Court
Central Excise Act 1944 Cenvat Credit reversal 0.01 0.01 2011-2012 Deputy Commissioner of Central Excise Customs & Service Tax
Central Excise Act 1944 Cenvat Credit reversal 19.18 18.18 2009-2014 Customs Excise & Service Tax Appellate Tribunal
Central Excise Act 1944 Cenvat Credit reversal 5.47 5.26 April 2014 to September 2015 Customs Excise & Service Tax Appellate Tribunal
Central Excise Act 1944 Cenvat Credit reversal 9.07 8.73 October 2015 to June 2017 Customs Excise & Service Tax Appellate Tribunal
Odisha Value Added Tax Act 2004 Value Added Tax 9.29 6.91 October 2011 to March 2015 Odisha Sales Tax Tribunal
Goods and Services Tax Act 2017 CGST and SGST 2.86 2.65 October- November 2018 State Tax Officer CT and GST Rayagada

*Figures below rounding off norms (' 24880/-).

viii. In our opinion and according to the information and explanations given to us theCompany has not surrendered or disclosed any transaction previously unrecorded in thebooks of account in the tax assessments under the Income Tax Act 1961 (43 of 1961) asincome during the year. Accordingly the requirement to report on clause 3(viii) of theOrder is not applicable to the Company.

ix.(a) According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in repayment of loans or otherborrowings or in payment of interest to any lender during the year.

(b) According to the information and explanations given to us and on the basis of ouraudit procedures we report that the Company has not been declared willful defaulter byany bank or financial institution or government or any government authority.

(c) In our opinion and according to the information and explanations given to us theterm loans were applied for the purpose for which the loans were obtained.

(d) According to the information and explanations given to us and the proceduresperformed by us and on an overall examination of the Standalone Ind AS FinancialStatements of the Company we report that no funds raised on short-term basis have beenused for long-term purposes by the Company.

(e) According to the information and explanations given to us and on an overallexamination of the Standalone Ind AS Financial Statements of the Company we report thatthe Company has not taken any funds from any entity or person on account of or to meet theobligations of its subsidiaries associates or joint ventures.

(f) The Company has not raised loans during the year on the pledge of securities heldin its subsidiaries joint ventures or associate Companies. Accordingly the requirementto report on clause 3 (ix)(f) of the Order is not applicable to the Company.

x. (a) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments). Accordingly the requirement to report onclause 3 (x)(a) of the Order is not applicable to the Company.

(b) During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally).Accordingly the requirement to report on clause 3(x)(b) of the Order is not applicablethe Company.

xi. (a) According to the information and explanations given to us no fraud by theCompany or no material fraud on the Company has been noticed or reported during the year.

(b) No report under sub-section (12) of section 143 of the Companies Act 2013 wasrequired to be filed in Form ADT - 4 as prescribed under Rule 13 of Companies (Audit andAuditors) Rules 2014 with the Central Government during the year and up to the date ofthis report.

(c) As represented to us by the management no whistle blower complaints has beenreceived during the year by the Company.

xii. The Company is not a Nidhi company as per the provisions of the Companies Act2013. Accordingly the requirement to report on clause 3(xii)(a) to 3(xii) (c) of theOrder are not applicable to the Company.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company all the transactions with the related partiesare in compliance with the sections 177 and 188 of the Companies Act 2013 whereapplicable and details of such transactions have been disclosed in the Standalone Ind ASFinancial Statements as required by the applicable accounting standards.

xiv. (a) In our opinion and according to the information and explanations given to usthe Company has an internal audit system commensurate with the size and nature of itsbusiness.

(b) The internal audit reports of the Company issued till the date of the audit reportfor the period under audit have been considered by us.

xv. The Company has not entered into any non-cash transactions with its directors orpersons connected with its directors and hence the requirement to report on 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 ReserveBank of India Act 1934. Accordingly the requirement to report on clause 3(xvi)(a) of theOrder is not applicable to the Company.

(b) The Company has not conducted non- banking financial/housing finance activitiesduring the year. Accordingly the requirement to report on clause 3(xvi)(b) of the Orderis not applicable to the Company.

(c) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India. Accordingly the requirement to report on Clause3(xvi)(c) of the order is not applicable to the Company.

(d) Based on the information and explanations provided by the management of theCompany the Group has one Core Investment Company as a part of the Group. We have nothowever separately evaluated whether the information provided by the management isaccurate and complete. Accordingly the requirement to report on clause 3 (xvi)(d) of theOrder is not applicable to the Company.

xvii. The Company has not incurred cash losses during the financial year covered by ouraudit and the immediately preceding financial year.

xviii. There has been no resignation of the statutory auditors of the Company duringthe year and accordingly requirement to report on clause 3(xviii) of the Order is notapplicable to the Company.

xix. On the basis of the financial ratios disclosed in Note 53 to the Standalone Ind ASFinancial Statements ageing and expected dates of realization of financial assets andpayment of financial liabilities other information accompanying the Standalone Ind ASFinancial Statements our knowledge of the Board of Directors and management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report that Company is not capable of meeting its liabilities existingat the date of balance sheet as and when they fall due within a period of one year fromthe balance sheet date. We however state that this is not an assurance as to the futureviability of the Company. We further state that our reporting is based on the facts up tothe date of the audit report and we neither give any guarantee nor any assurance that allliabilities falling due within a period of one year from the balance sheet date will getdischarged by the Company as and when they fall due.

xx.(a) In respect of other than ongoing projects there are no unspent amounts that arerequired to be transferred to a fund specified in Schedule VII of the Act in compliancewith second proviso to sub section 5 of section 135 of the Act. This matter has beendisclosed in note 50 to the Standalone Ind AS Financial Statements.

(b) There are no unspent amounts in respect of ongoing projects that are required tobe transferred to a special account in compliance of provision of sub section (6) ofsection 135 of the Act. This matter has been disclosed in note 50 to the Standalone Ind ASFinancial Statements.

For SCV & Co. LLP
Chartered Accountants
FIRM REGISTRATION No. 000235N/N500089
(Rajiv Puri)
PARTNER
Place: New Delhi MEMBERSHIP No. 084318
Dated: 24th May 2022 ICAI UDIN: 22084318AJMIYH6957

Annexure "B" To the Independent Auditor's Report

Annexure referred to in paragraph 2(g) under the heading "Report on other legaland regulatory requirements" of our report of even date.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of INDIANMETALS AND FERRO ALLOYS LIMITED ("the Company") as of 31st March 2022 inconjunction with our audit of the Standalone Ind AS Financial Statements of the Companyfor the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to Company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by Institute ofChartered Accountants of India and deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the Standalone Ind AS Financial Statements whether due to fraudor error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting with reference to these Standalone Ind AS Financial Statements.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of Standalone Ind AS Financial Statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that:

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of Standalone Ind AS Financial Statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the Standalone Ind AS Financial Statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For SCV & Co. LLP
Chartered Accountants
FIRM REGISTRATION No. 000235N/N500089
(Rajiv Puri)
PARTNER
Place: New Delhi MEMBERSHIP No. 084318
Dated: 24th May 2022 ICAI UDIN: 22084318AJMIYH6957

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