Financial Results Summary

Standalone Financials (Audited FY26):

  • Turnover/Total Income: ₹547.89 million
  • Total Expenditure: ₹1,032.67 million
  • Net Loss: ₹(484.78) million
  • Earnings Per Share: ₹(4.81)
  • Total Assets: ₹13,530.14 million
  • Total Liabilities: ₹13,530.14 million
  • Net Worth: ₹13,530.14 million

Consolidated Financials (Audited FY26):

  • Revenue from Operations: ₹5,446.13 million
  • Other Income: ₹231.47 million
  • Total Income: ₹5,677.59 million
  • Total Expenses: ₹6,949.06 million
  • Net Loss: ₹(1,271.47) million
  • Earnings Per Share: ₹(12.20)
  • Total Assets: ₹19,204.32 million
  • Total Liabilities: ₹19,204.32 million
  • Net Worth: ₹19,204.32 million

Audit Qualifications - Standalone (Holding Company)

Qualification 1: Uninsured Fixed Assets

  • Fixed assets worth ₹1,174.435 crore (excluding land) carried without insurance cover
  • Assets exposed to risk of fire/burglary/earthquake/natural calamities
  • No direct accounting impact, but potential financial losses if risks materialize
  • Management evaluating insurance requirements considering financial position

Qualification 2: Trade Receivables Verification

  • Trade receivables of ₹116.98 crore as of March 31, 2026 (₹81.54 crore as of March 31, 2025)
  • Related party receivables: ₹11.16 crore (₹17.92 crore as of March 31, 2025)
  • ₹98.02 crore debtor from sale of stock by OMC
  • No provision made for non-moving debtors of ₹7.80 crore
  • No impairment testing performed for non-moving debtors
  • Balance confirmation and reconciliation not provided except for related parties
  • Impact not ascertainable; assets may be overstated

Qualification 3: Supreme Court Compensation Liability

  • Supreme Court judgment dated August 2, 2017 imposed compensation of ₹924.75 crore plus interest for excess iron ore production during 2000-01 to 2010-11
  • Payment due by December 31, 2017; mines closed from January 1, 2018 for non-payment
  • Curative petition filed March 28, 2018, still pending
  • No provision made in books
  • Management confirmed ₹415.79 crore deposited against order
  • Supreme Court order dated July 10, 2023 directed state government to takeover and sell iron ore
  • OMC recovered ₹53.86 crore (including GST) in FY 2024-25 and ₹44.17 crore (including GST) in Q1 FY 2025-26
  • Company booked income and recorded OMC as debtor for these amounts
  • Had provision been recognized, net worth would become negative, raising going concern doubts

Qualification 4: Customer Advances Classification

  • Advances from customers: ₹315.81 crore (related party advances: ₹2.15 crore)
  • No movement in major proportion for more than 365 days
  • Should be treated as deposits under Companies Act rule 2(c)(xii)(a) and disclosed in DPT-3
  • No direct accounting impact, but statutory compliance implications

Qualification 5: Unbilled Revenue Verification

  • Unbilled revenue of ₹2.62 crore booked from May 2025 to March 2026
  • No supporting documents provided for verification
  • Impact not ascertainable; revenue and assets may require adjustment

Qualification 6: Unsecured Loan Confirmation

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

Qualification 7: Fixed Deposit Verification

  • Physical copies of fixed deposits not provided
  • Fixed deposits in name of individuals recorded as company assets
  • Direct bank confirmations missing for:
  • UCO Bank (CA-RWA, A/c 20990210000038): ₹4,757.43
  • ICICI Bank (CA-BRBL, A/c 064005001275): ₹75,174.84 (bank statement only up to January 16, 2026)
  • Bank of Baroda (CA-MUM, A/c 70010200000987): ₹35,692.96
  • Impact unascertainable; genuineness of deposits cannot be verified

Audit Qualifications - Consolidated (Subsidiary De-Maithan Ispat Limited)

Qualification 1: Bank Confirmations

  • No direct bank confirmations for current/savings accounts and fixed deposits
  • Reliance on bank statements/confirmations from company
  • Impact not ascertainable

Qualification 2: Fixed Deposit Verification

  • Balance confirmations missing for fixed deposits totaling ₹2.36 crore:
  • Punjab National Bank (Fixed deposit-BG Aviation Department): ₹50,00,000 (last confirmation March 2023)
  • Punjab National Bank (Fixed deposit-BG-MCL Coal): ₹1,85,97,600 (last confirmation March 2022)
  • Asset value could not be independently verified

Qualification 3: ECB Forex Restatement

  • ECB of USD 61,000,000 (equivalent to ₹5,020,000,000 at time of borrowing) not restated as per Ind AS 21
  • If restated, ECB liability would increase by ₹73.31 crore with corresponding increase in loss
  • Repetitive qualification (also omitted in March 31, 2025)

Qualification 4: SBI Receivable Verification

  • ₹8.36 crore receivable from State Bank of India since March 2022 included under Other Financial Assets
  • No documentation or confirmation received
  • Value and recoverability remain unverified
  • Repetitive since March 2022

Qualification 5: Doubtful Debt Provision

  • Further provision of ₹18.24 crore needed for doubtful debts & advances against old non-moving balances
  • Current provision stands at only ₹2.55 crore
  • Assets overstated and losses understated by ₹18.24 crore
  • Repetitive from previous year

Qualification 6: Preference Shares Liability

  • 0.10% Cumulative redeemable preference shares (CRPS) liability of ₹127.63 crore shown under non-current liabilities
  • One Time Settlement (OTS) with consortium of banks led by SBI in November 2021
  • Modalities relating to CRPS yet to be completed with company and heirs of personal guarantors
  • Shares not revalued based on discounted cash flows, no further dividend liability provided
  • Financial liabilities may require re-measurement
  • Repetitive since November 2021

Qualification 7: Labour Codes Implementation

  • Four Labour Codes announced via notifications on November 21, 2025 and draft rules on December 31, 2025
  • Impact on post-employment benefits and leave encashment changes not assessed
  • Employee benefit liabilities may increase
  • First-time qualification

Qualification 8: Related Party Recovery

  • ₹0.20 crore recoverable from Pahardia Gold Mining Limited (related party) since 2021
  • No movement or transactions since then
  • Recovery doubtful; asset needs impairment
  • Assets overstated by ₹0.20 crore, losses understated
  • Repetitive since 2021

Qualification 9: Balance Confirmations

  • Balances of debtors, creditors, advances, and deposits (other than related parties) subject to confirmations and reconciliations
  • Financial impact cannot be determined

Additional Information from Financial Statements

Consolidated Balance Sheet (as at March 31, 2026):

  • Property, plant and equipment: ₹11,292.35 million
  • Capital work-in-progress: ₹558.92 million
  • Non-current investments: ₹120.10 million
  • Trade receivables: ₹1,115.56 million
  • Cash and cash equivalents: ₹185.14 million
  • Total equity: ₹3,146.20 million
  • Borrowings: ₹3,201.45 million
  • Trade payables: ₹1,169.80 million

Consolidated Cash Flow Statement (FY26):

  • Net cash used in operating activities: ₹(12.96) million
  • Net cash used in investing activities: ₹(31.60) million
  • Net cash from financing activities: ₹50.45 million

Supreme Court Matter Update

  • Curative petition dismissed during reporting quarter
  • Company deposited ₹157.5 crore including GST till March 2024
  • ₹98.025 crore including GST recovered by OMC till March 2026 under protest towards compensation
  • Arbitration award of ₹718 crore received in June 2019, appealed in High Court
  • Company confident of winning award, hence no provision made