Impex Ferro Tech Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2021

1. The above results for the quarter and nine months ended 31st December, 2021 have been prepared in accordance with Indian Accounting Standard (Ind AS) notified under Section 133 of the Companies Act, 2013 read together with the Companies (Indian Accounting Standards) Rules, 2015 and have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 14th February, 2022.

2. The COVID-19 pandemic has adversely impacted the economy and business. Supply Chain disruptions in India as a result of the outbreak started with restrictions on movement of goods, closure of borders etc., in several states followed by nationwide lockdowns from time to time, to curb the spread of COVID-19. Due to this, the manufacturing operations of of the Company along with supply and distribution got temporarily disrupted.

In light of these circumstances, the management has evaluated the impact on the carrying amounts and recoverability of its assets including financial assets, inventory, property plant and equipment, Intangibles etc. as at the balance sheet date, and has concluded that there are no material adjustments required in the financial statements. Management believes that it has taken into account all the possible impact of known events arising from COVID 19 pandemic in the preparation of the financial statements upto the date of approval of accounts. However, the impact assessment of COVID 19 is a continuing process given the uncertainties associated with its nature and duration. The Company will continue to monitor any material changes to future economic conditions.

3. 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 under assignment agreement between UBI and Rare Asset Reconstruction Ltd executed on 29th June, 2019, between BOB and Rare Asset Reconstruction Ltd vide letter dated 18th August, 2020 and between SBI and Rare Asset Reconstruction Ltd vide letter dated 8th September,2021.

In view of pending finalization of the restructuring plan with Rare Asset Reconstruction Limited, the Company has not provided accrued interest in its books as the account has been declared NPA by the respective banks. The amount of interest has been recogised in the books of account to the extent the amount charged/realised by the banks only. The amount of interest not so provided stands at Rs. 973.12 Lacs for the quarter ended 31st December, 2021 and penal interest and charges thereof (amount remaining unascertained) has not been provided for. The unprovided liability in respect of interest on long term and short term borrowings till 31st December, 2021, amounted to Rs. 20,222.67 Lacs. The same have consequential impact on the reported figures of this quarter as well as earlier periods.

State Bank of India and Punjab National Bank have filed an application with National Company Law Tribunal, Kolkata Bench (NCLT) for initiating Corporate Insolvency Resolution Process (CIRP) under Insolvency and Bankruptcy Code (IBC) and the matter is sub judice.

4. The Company has incurred profit of Rs. 375.38 Lacs and loss of Rs. 268.23 lacs for quarter and nine months ended 31st December, 2021 respectively. The accumulated loss as on 31st December, 2021 is Rs. 37,252.69 Lacs which is in excess of the entire net worth of the Company. With the substantial improvement in raw material availability, improvement in market scenario with notification of Minimum Import Price on steel, it is expected that the overall financial health would improve considerably. Considering the above developments and favourable impact thereof on the Company's operations and financials, the Company has prepared the financial results on the basis of Going Concern assumption.

5. A fire has occurred in the Captive Power Plant on 6th September, 2017 damaging turbine, alternator, etc. An amount of Rs. 424.53 Lacs has been received from the insurance comapny during the financial year 2020-21 as full and final settlement against amount of claim filed for Rs. 560.00 Lacs and the same is adjusted with the book value of related fixed assets . However the Company has demanded for balance amount of claim and necessary accounting adjustment of the same will be made once it is received.

6. 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 outstanding for 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 impoact once the confirmation are recieved and reconciliation if any is made.

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

8. Figures for the previous period/year have been regrouped and /or reclassified to confirm to the classification of current period/year wherever necessary.