Impex Ferro Tech Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2022

Notes:



1. The above results for the quarter and year ended 31st March, 2022 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 30th May, 2022.



2. The COVID-19 pandemic has adversely impacted the economy and business. Following relaxation in COVID pandemic related restrictions from time to time improved overall performance for the financial year ended on 31st March, 2022 and improvement in overall operating performance is likely to continue. Considering the current internal and external factors, the Company has made detailed assessment of its liquidity positions/ cash flows for the next one year and carrying amounts/ values of property, plant and equipment, intangible assets, trade receivables, inventories and other assets as at 31st March, 2022 and have concluded that there are no material adjustments required in financial results.



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. 1,248.37 Lacs and Rs. 4,910.44 Lacs for the quarter and year ended 31st March, 2022 and penal interest and charges thereof (amount remaining unascertained) has not been provided for. The unprovided liability in respect of interest till 31st March, 2022, amounted to Rs. 22,004.74 Lacs. The same have consequential impact on the reported figures of this quarter and year as well as earlier periods.



Pursuant to One Time Settlement (OTS) with respect of borrowings taken from Punjab National Bank (Bank), the company has to pay 1,500 lakhs against outstanding dues. The company has paid Rs. 1,247.63 lakhs till 31st March 2022 and balance of Rs. 252.37 lakhs has been paid post balance sheet date by 4th May, 2022. Delayed period interest charges (DPIC) may arise in line with OTS sanction letter which is uncertain and consequent effect of same may arise in profit & Loss account and other current liability.



4. The company has incurred loss of Rs. 1,407.98 Lacs and loss of Rs. 1,676.21 lacs for quarter and year ended 31st March, 2022 respectively. The accumulated loss as on 31st March, 2022 is Rs. 38,660.68 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. As per High Court Order dated 8th October, 2021 by the Honourable High Court, Kolkata, an amount of Rs. 5,161.21 lakhs is payable to Damodar Valley Corporation (DVC) towards non payment of electricity charges  for the period prior to February, 2016. However, the company was provided liability of Rs.2,895.95 lakhs for the aforesaid period and accordingly differential liability of Rs. 2,265.26 lakhs has been provided for as expenses and the same has been disclosed as Exceptional Items during the current financial year 2021-22.



6. A fire has occurred in the Captive Power Plant on 6th September,2017 damaging turbine,alternator, etc. An amount of Rs. 424.53 lakhs has been received from the insurance company during the financial year 2020-21 as full and final settlement against amount of claim filed for Rs 560.00 lakhs 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.



7. 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.



8. Other Expenses includes Sundry balances written off amounting to Rs. 279.40 Lakhs.



9. The figures of the last quarter for the current and previous year are the balancing figures between the audited figures for full financial year and the published year to date figures upto December'21 of the respective year.



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



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