Independent Auditor's Limited Review Report on Unaudited Financial Results

Corporate Insolvency Resolution Process Status

The Hon'ble National Company Law Tribunal (NCLT), Kolkata Bench admitted the Corporate Insolvency Resolution Process (CIRP) application filed by a Financial Creditor of Impex Ferro Tech Limited vide order dated 2nd May 2024. Mr. Rajiv Kumar Agarwala was appointed as Interim Resolution Professional (IRP). Subsequently, Mr. Ashok Kumar Sarawagi was appointed as Resolution Professional (RP) by the Committee of Creditors (COC) in its 2nd COC meeting held on 14th June 2024, approved by e-voting by COC members and further vide NCLT order dated 12th July 2024. The management of the company and powers of the Board of Directors are vested with the RP.

Qualified Opinion Basis

The auditors issued a qualified opinion based on several material concerns:

1. Non-provision of Cumulative Interest Expense: The company has not provided for cumulative interest expense of ₹63,020.22 lakhs on borrowings, which is not in accordance with IND AS 109. Had this been recognized, Other Equity as on 31.03.2026 would have been ₹103,977.61 lakhs instead of the reported amount of ₹(40,957.39 lakhs), and current financial liability would have been ₹63,092.38 lakhs instead of the reported ₹72.16 lakhs.

2. Expected Credit Loss Provisions: The company recognized provision towards Expected Credit Losses (ECL) aggregating to ₹804.52 lakhs (₹23.10 lakhs against Capital Advances, ₹411.00 lakhs against Trade Receivables, and ₹370.43 lakhs against Advances Recoverable in Cash or Kind). The auditors were unable to comment on the recoverability of these balances due to lack of corroborative evidence.

3. Unreconciled Payables: Balances of "Trade Payables", "Advances from Customer", "Other Payables" include amounts outstanding for a substantial period that are subject to confirmation/reconciliation. The financial impact remains unascertained.

4. Creditor Claims Reconciliation: Claims submitted by financial and operational creditors exceeded amounts appearing in the books of account. The list of creditors (published on 08.04.2025 & 20.09.2025) includes admitted claims and claims under verification. No accounting impact has been made for differences.

5. Confidential Information Restriction: Certain information including minutes of COC meetings and CIRP procedures could not be shared with auditors, limiting their ability to comment on possible financial impact.

Material Uncertainty Related to Going Concern

The company has incurred losses, its liabilities exceed total assets, and its net worth has been fully eroded as on 31.03.2026. The future of the company as a going concern is subject to the resolution plan submitted before COC and approval of Hon'ble Tribunal. The financial statements continue to be prepared on a going concern basis, but material uncertainty exists.

Emphasis of Matter

1. Undisputed Statutory Dues: Undisputed statutory dues amounting to ₹292 lakhs were in arrears as at 31st March 2026 for more than six months. Interest and penalty amounts remain unascertained and unaccounted for.

2. Manufacturing Operations Shutdown: The manufacturing operation at Kalyanesheri, West Bengal has been temporarily shut down since October 2022 due to disconnection of power supply by Damodar Valley Corporation (DVC). A security deposit of ₹950 lakhs in the form of bank guarantee has been invoked, and another deposit of ₹748 lakhs was adjusted during FY 2022-23.

Financial Results Summary

Balance Sheet as at 31 March 2026 (₹ lakhs):

  • Total Assets: 15,992.73 (Previous: 16,588.04)
  • Non-Current Assets: 15,233.75 (Property, Plant & Equipment: 15,214.11; Intangible Assets: 1.35; Other Financial Assets: 18.30)
  • Current Assets: 758.99 (Cash & Cash Equivalents: 52.19; Other Bank Balances: 103.00; Current Tax Assets: 306.31; Other Current Assets: 296.25)
  • Total Equity: (32,164.23) (Equity Share Capital: 8,793.16; Other Equity: (40,957.39))
  • Non-Current Liabilities: 26,935.28 (Borrowings: 26,759.99; Deferred Government Grant: 70.13; Provisions: 105.16)
  • Current Liabilities: 21,221.69 (Trade Payables: 16,788.98; Other Financial Liabilities: 72.16; Other Current Liabilities: 4,356.70; Provisions: 3.85)

Statement of Financial Results for Quarter Ended 31 March 2026 (₹ lakhs):

  • Total Income: 99.05
  • Total Expenses: 193.25
  • Loss before tax: (94.20)
  • Net Loss for period: (94.20)
  • Total Comprehensive Loss: (94.20)
  • EPS Basic & Diluted: (0.11)

Statement of Financial Results for Year Ended 31 March 2026 (₹ lakhs):

  • Total Income: 100.30
  • Total Expenses: 743.70
  • Loss before tax: (643.40)
  • Net Loss for year: (643.40)
  • Total Comprehensive Loss: (643.40)
  • EPS Basic & Diluted: (0.73)

Cash Flow Statement for Year Ended 31 March 2026 (₹ lakhs)

  • Net Cash from Operating Activities: 78.63
  • Net Cash used in Investing Activities: (68.09)
  • Net Cash from Financing Activities: (8.80)
  • Net Increase in Cash & Equivalents: 1.75
  • Cash & Equivalents at year-end: 52.19

Additional Notes to Financial Results

1. Claims Status: As part of CIRP, creditors submitted claims exceeding book amounts:

  • Secured Financial Creditors: Claims ₹91,068.97 lakhs, Admitted ₹91,068.97 lakhs
  • Unsecured Financial Creditors: Claims ₹6,153.88 lakhs, Admitted ₹6,153.88 lakhs
  • Operational Creditors (Employees): Claims ₹154 lakhs, Admitted ₹11.54 lakhs
  • Operational Creditors (Govt. Dues): Claims ₹3,971,242 lakhs, Admitted ₹3,022,867 lakhs, Under verification ₹48,376 lakhs
  • Operational Creditors (Other): Claims ₹306.07 lakhs, Admitted ₹305.39 lakhs, Under verification ₹0.69 lakhs

Updated claims as of 20th September 2025 show a new operational creditor claim of ₹75 lakhs, with ₹243 lakhs admitted and balance under verification.

2. Loss Position: Company incurred loss of ₹93.39 lakhs for Q4 FY26 and accumulated loss of ₹46,353.32 lakhs as on 31st March 2026, exceeding entire net worth.

3. Credit Facilities Assignment: Various credit facilities from United Bank of India, Bank of Baroda, and State Bank of India have been assigned to Rare Asset Reconstruction Ltd. Lenders submitted claim of ₹91,068.97 lakhs (principal ₹28,048.75 lakhs + cumulative interest ₹63,020.22 lakhs) against book principal of ₹26,124.99 lakhs.

4. Insurance Coverage: Insurance coverage of Fixed Assets and Plant & Machinery expired on 13/06/2023.

5. Segment Information: Company operates in single primary segment "Ferro Alloys".

Auditor Information

Auditor: V.K. Tulsyan & Co. LLP, Chartered Accountants

FR No: 326740E/E300015

Membership No: 061953

UDIN: 26061953YSHGPW8815

Place & Date: Kolkata, 29 May 2026

Resolution Professional Approval

The financial results have been signed and taken on record by Ashok Kumar Sarawagi, Resolution Professional, on 29.05.2026 at Kolkata.