Key Financial Figures - Standalone (₹ in Million)

Profit & Loss Statement

  • Revenue from Operations: Not quantified in disclosure
  • Total Expenses: ₹886.95 million for FY26 (comparative not clear)
  • Loss before tax: ₹(484.78) million for FY26
  • Net Loss after tax: ₹(484.78) million for FY26
  • Earnings per Share (Basic & Diluted): Not quantifiable from data

Balance Sheet Position as at 31 March 2026

  • Total Assets: ₹13,530.14 million
  • Property, Plant and Equipment: ₹7,429.61 million
  • Capital Work-in-Progress: ₹181.52 million
  • Trade Receivables: ₹1,169.76 million
  • Cash and Cash Equivalents: ₹144.09 million
  • Total Equity: ₹6,239.86 million
  • Equity Share Capital: ₹1,378.75 million
  • Retained Earnings: ₹2,540.80 million
  • Borrowings: ₹445.21 million
  • Other Financial Liabilities: ₹3,201.45 million

Cash Flow Statement

  • Net cash flow from operating activities: ₹11.72 million
  • Net cash flow from investing activities: ₹17.09 million
  • Net cash flow from financing activities: ₹(26.04) million
  • Net increase in cash: ₹2.76 million

Key Financial Figures - Consolidated (₹ in Million)

  • Revenue from Operations: ₹627.51 million
  • Total Income: ₹621.32 million
  • Total Expenses: ₹6,952.92 million
  • Loss before tax: ₹(1,309.27) million
  • Net Loss after tax: ₹(1,685.46) million
  • Total Comprehensive Loss: ₹(1,680.49) million
  • Earnings per Share: Not quantifiable

Legal and Regulatory Matters

Supreme Court Compensation Case

  • Honorable Supreme Court judgement dated 2 August 2017 in Writ Petition (Civil) No. 114 of 2014 (Common Cause v/s Union of India & Others)
  • Compensation imposed: ₹924.75 crores for excess iron ore production during 2000-01 to 2010-11
  • Payment deadline: 31 December 2017
  • Mining operations stopped from 1 January 2018 due to non-payment
  • Company filed Curative Petition in March 2018, dismissed during reporting quarter
  • Company has deposited ₹415.79 crores including GST till March 2024 under protest
  • OMC recovered ₹53.86 crores including GST in FY 2024-25 and ₹44.17 crores in Q1 FY 2025-26
  • No provision made in books; if provisioned, net worth would turn negative

Arbitration Award

  • Arbitration award received in June 2019 for ₹718 crores
  • Company has appealed the award; appeal admitted in High Court
  • No provision made in books as company expects to win the case

Audit Qualifications - Standalone (7 Qualifications)

Qualification 1: Uninsured Fixed Assets

  • Fixed assets worth ₹1,174.435 crore (other than land) without insurance cover
  • Assets exposed to fire/burglary/earthquake/natural calamities risk
  • Management evaluating insurance requirements

Qualification 2: Trade Receivables

  • Receivables of ₹116.98 crore as at 31 March 2026 (₹81.54 crore previous year)
  • Related party receivables: ₹11.16 crore (₹17.92 crore previous year)
  • ₹98.02 crore from OMC for stock sales
  • ₹7.80 crore non-moving debtors without provision or litigation
  • No impairment testing performed
  • Balance confirmations not provided except for related parties

Qualification 3: Supreme Court Compensation

  • As detailed in legal matters above
  • Auditors believe provision should be made as liability crystallized

Qualification 4: Customer Advances

  • Advances received from customers: ₹315.81 crore (₹2.15 crore from related parties)
  • No movement in major advances for >365 days
  • Should be treated as deposits under Companies Act Rule 2(c)(xii)(a)
  • DPT-3 disclosure required

Qualification 5: Unbilled Revenue

  • Unbilled revenue of ₹2.62 crore booked from May 2025 to March 2026
  • No supporting documents provided for verification

Qualification 6: Unsecured Loans

  • Unsecured loans from promoters and other parties: ₹44.52 crore
  • Balance confirmations not provided

Qualification 7: Fixed Deposits Verification

  • Physical copies of fixed deposits not provided
  • Some deposits in individual names but recorded as company assets
  • Bank confirmations missing for specific accounts:
  • UCO Bank CA-RWA A/c 20990210000038: ₹4,757.43
  • ICICI Bank CA-BRBL A/c 064005001275: ₹75,174.84 (statement only up to 16 January 2026)
  • Bank of Baroda CA-MUM- A/c 70010200000987: ₹35,692.96

Audit Qualifications - Subsidiary (De-Maithan Ispat Limited)

Qualification 1: Bank Confirmations

  • No direct bank confirmations received for current/savings accounts and fixed deposits

Qualification 2: Fixed Deposit Verification

  • Balance confirmations missing for fixed deposits totaling ₹2.36 crore:
  • Punjab National Bank FD-BG Aviation Department: ₹50,00,000 (last confirmation March 2023)
  • Punjab National Bank FD-BG MCL Coal: ₹18,597,600 (last confirmation March 2022)

Qualification 3: ECB Restatement

  • ECB of USD 61,000,000 (₹5,020,000,000 at time of borrowing) obtained in FY24
  • Not restated as per Ind AS 21 for foreign exchange changes
  • If restated, ECB liability would increase by ₹73.31 crore with corresponding loss increase

Qualification 4: SBI Receivable

  • ₹8.36 crore receivable from State Bank of India since March 2022
  • No documentation or confirmation provided

Qualification 5: Doubtful Debts Provision

  • Additional provision of ₹18.24 crore needed for doubtful debts and advances
  • Current provision only ₹2.55 crore

Qualification 6: CRPS Liability

  • 0.10% Cumulative redeemable preference shares liability: ₹127.63 crore
  • OTS done with consortium banks in November 2021, No Dues Certificate received
  • Liability not revalued or provided for additional dividends

Qualification 7: Labour Code Impact

  • Four Labour Codes implemented from November 2025
  • Impact on gratuity obligation and leave encashment not assessed
  • Potential increase in employee benefit liabilities

Qualification 8: Related Party Recovery

  • ₹0.20 crore receivable from Pahardia Gold Mining Limited (related party) since 2021
  • Recovery doubtful, impairment required

Qualification 9: Balance Confirmations

  • Debtors, creditors, advances, and deposits subject to confirmations and reconciliations

Emphasis of Matter

  • SREI Equipment Finance arbitration: Outstanding claim ₹4.40 crore, company liability ₹0.71 crore as at March 2026
  • Arbitration award of ₹718 crore plus interest under dispute in Bombay High Court
  • TDS deduction at 20% on fixed deposits due to non-submission of PAN
  • Balances with government authorities: ₹14.02 crore without supporting documents
  • MSME creditor details not available
  • Capital work in progress of ₹18.15 crore pending for >5 years
  • Related party receivables: ₹206.88 crore as at March 2026 without impairment assessment
  • Unpaid dividend of ₹2.5 crore for FY 2013-14 not transferred to IEPF
  • Tax & regulatory dues payable: ₹70.23 crore (₹70.18 crore disputed)
  • GST returns not filed since November 2020 for Odisha, ISD returns not filed since April 2022 for Delhi and West Bengal
  • Write back of ₹3.32 crore and write off of ₹2.07 crore based on management representation without confirmations

Dates and Signatories

  • Auditors: Ashok Shyam & Associates, Chartered Accountants (FRN: 011223N)
  • Auditor Signatory: Ashok Gupta, Partner (Membership No: 089838)