1. We have audited the accompanying standalone financial
statements of Indian Metals And Ferro Alloys Limited ('the
Company'), which comprise the Standalone Balance Sheet
as at 31 March 2026, the Standalone Statement of Profit
and Loss (including Other Comprehensive Income), the
Standalone Statement of Cash Flow and the Standalone
Statement of Changes in Equity for the year then ended,
and notes to the standalone financial statements,
including material accounting policy information and other
explanatory information.
2. In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
standalone financial statements give the information
required by the Companies Act, 2013 ('the Act') in the manner
so required and give a true and fair view in conformity with
the Indian Accounting Standards ('Ind AS') specified under
section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015 and other accounting
principles generally accepted in India, of the state of
affairs of the Company as at 31 March 2026, and its profit
(including other comprehensive income), its cash flows and
the changes in equity for the year ended on that date.
Basis for Opinion
3. We conducted our audit in accordance with the Standards
on Auditing specified under section 143(10) of the Act.
Our responsibilities under those standards are further
described in the Auditor's Responsibilities for the Audit of
the Standalone Financial Statements section of our report.
We are independent of the Company in accordance with
the Code of Ethics issued by the Institute of Chartered
Accountants of India ('ICAI') together with the ethical
requirements that are relevant to our audit of the standalone
financial statements under the provisions of the Act and
the rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and
the Code of Ethics. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a
basis for our opinion.
Key Audit Matters
4. Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
standalone financial statements of the current period.
These matters were addressed in the context of our audit
of the standalone financial statements as a whole, and
in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
5. We have determined the matters described below to be the
key audit matters to be communicated in our report.
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Key audit matters
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How our audit addressed the key audit matters
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Existence of inventories
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Our audit procedures with respect to existence of inventory
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Refer note 2 to the accompanying standalone financial
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included, but were not limited to the following:
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statements for material accounting policy information on
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• Obtained an understanding of process and controls
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inventories and note 10 to the accompanying standalone
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implemented by Company for physical count of inventories.
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financial statements for details of carrying value of inventories
along with classification into raw materials, work-in-progress,
finished goods and stores and packing material of inventory
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• Evaluated the design and implementation and tested the
operating effectiveness of such controls.
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as of 31 March 2026. As at 31 March 2026, the Company has
inventory of ? 815.34 crore which represents 18.93 % of the
total assets of the Company. The inventory primarily comprises
of raw material, work-in-progress, finished goods, stores and
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• Evaluated the competence and objectivity of
management and auditors' experts involved in physical
verification exercise.
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packing material. Raw material includes Chrome Ore, Coal, met
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• Tested and agreed the inventory as per physical
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coke and other materials and Finished goods for the Company
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verification with the book records and performed cut-off
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is Ferro Chrome.
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and roll-forward procedures on a sample basis.
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Such inventories are located at different locations such as
mines, yards and ports. Determination of physical quantities
of inventories is done based on volumetric measurements and
involves special consideration with respect to measurement of
the surface area, density of material and moisture content, etc.
The physical verification of such inventory is performed by the
management with help of management experts across various
locations.
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Key audit matters
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How our audit addressed the key audit matters
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Considering the materiality of amounts involved and complexity
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Evaluated the appropriateness and adequacy of
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involved in determining physical quantities of inventories,
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disclosures made in the financial statements in
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physical verification of inventories has been considered as a
key audit matter.
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accordance with applicable accounting standards.
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Capital work in progress (CWIP)
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Our audit procedures with respect to CWIP included, but
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Refer Notes 2 and Note 3 to the accompanying standalone
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were not limited to, the following:
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financial statement for material accounting policy information
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•
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Obtained an understanding of the business process
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and related presentation and disclosures respectively for CWIP
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and assessed the appropriateness of the accounting
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carried as at 31 March 2026.
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policy adopted by the Company with respect to CWIP in
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The Company has incurred significant capital expenditure
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accordance with Ind AS 16;
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towards ongoing development of underground mines over the
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•
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Evaluated the design and tested the operating
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past few years and construction of new plants for expansion
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effectiveness of the internal financial controls over the
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of its business operations. These activities have resulted in
a substantial increase in capital work in progress balance
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capitalisation process;
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outstanding as at the year-end.
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•
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Tested the additions made to capital work-in progress
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Such capital expenditure includes purchase costs and directly
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during the year, on a sample basis, by inspecting underlying
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attributable costs to bring the assets to the location and
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supporting documents such as contracts, agreements,
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condition necessary for it to be capable of operating in the
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invoices, shipping documents, management approvals,
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manner intended by the management that includes salary costs
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etc., to ensure such items meet the Ind AS 16 recognition
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and borrowing costs.
The determination of costs eligible for capitalisation involves
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criteria, and are recorded accurately in the correct period,
in accordance with the requirements of Ind AS 16;
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significant management judgement to assess whether the
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Evaluated the reasonableness and appropriateness
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expenditure meets the recognition criteria for capitalisation
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of allocation of directly attributable project costs
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under Ind AS 16, Property, Plant and Equipment or whether
it should be expensed to the Statement of Profit and Loss.
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capitalised to CWIP;
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Further, management judgement is required in identification
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Recomputed and validated the capitalisation working
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and allocation of directly attributable costs to the ongoing
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of borrowing costs, on a sample basis, prepared by the
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construction projects, including borrowing costs eligible for
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management in accordance with Ind AS 23, considering
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capitalisation in accordance with Ind AS 23, Borrowing Costs,
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the actual borrowing costs incurred and the construction
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and evaluating the appropriate timing of commencement and
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timelines and project progress of qualifying assets.
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cessation of capitalisation.
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Evaluated the appropriateness and adequacy of
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Given the significance of capital expenditure during the year,
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the disclosures made in the financial statements in
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the nature and volume of transactions, and the complexity
and level of judgement involved in determining eligibility and
classification of costs, and timing of capitalisation, this matter
was considered to be a key audit matter.
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accordance with the applicable accounting standards.
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Asset acquisition
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Our audit procedures with respect to the asset acquisition
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Refer Note 2 and Note 45(vi) to the accompanying standalone
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included, but were not limited to the following:
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financial statement for material accounting policy information
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Obtained an understanding of management's process
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and related presentation and disclosures respectively, for the
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for accounting of acquisitions and evaluated the design
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'Acquired Interests' relating to a ferro chrome plant previously
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and tested the operating effectiveness of key controls
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owned and operated by Tata Steel Limited, acquired by the
Company during the year, for a 'base purchase consideration'
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over such process;
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of H 610 crores along with net working capital of H 25.03 crores,
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Assessed the appropriateness of the accounting policy
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in accordance with the Asset Transfer Agreement' dated 4
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adopted by the Company with respect to acquisitions in
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November 2025 entered between the parties.
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accordance with applicable accounting standards;
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Performed physical verification of the assets acquired, on a
sample basis, to corroborate their existence and condition;
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Key audit matters
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How our audit addressed the key audit matters
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Pursuant to the said agreement, the parties have allocated the
aforesaid base purchase consideration to the 'Acquired Interests'
basis their relative fair values at the date of acquisition, as
determined mutually with the help of an independent valuation
expert.
The management has assessed whether the aforesaid 'Acquired
Interests' constitute a business combination as defined under
Ind AS 103 'Business Combinations', and concluded that the
acquired set of assets, contracts, license and permits, and
employees and contractors (collectively 'Acquired Interests'),
do not include a substantive process and therefore, do not
constitute a 'business' as defined under Ind AS 103. Accordingly,
the transaction has been given accounting effect as an 'asset
acquisition' in the standalone financial statements of the
Company.
Given the materiality of the transaction and the significant
judgement involved to assess appropriate accounting treatment,
basis evaluation of a 'business' under Ind AS 103, this matter
was considered to be a Key Audit Matter.
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• Obtained and reviewed the transaction documents,
including the 'Asset Transfer Agreement' and invoices
raised by Tata Steel Limited, to understand the nature and
scope of the assets acquired.
• Assessed the appropriateness of accounting treatment
for the transaction as an asset acquisition, based on our
understanding of the assets and processes acquired.
This included, inter alia, understanding of the functions
and criticality of the processes performed by the
employees taken over.
• Evaluated the appropriateness and adequacy of the
disclosures made in the financial statements in relation
to the transaction in accordance with applicable
accounting standards.
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Information other than the Standalone Financial Statements
and Auditor's Report thereon
6. The Company's Board of Directors are responsible for
the other information. The other information comprises
the information included in the Annual Report, but does
not include the standalone financial statements and our
auditor's report thereon. The Annual Report is expected to be
made available to us after the date of this Auditor's Report.
Our opinion on the standalone financial statements does
not cover the other information and we will not express any
form of assurance conclusion thereon.
In connection with our audit of the standalone financial
statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our
knowledge obtained in the audit or otherwise appears to be
materially misstated.
When we read the Annual Report, if we conclude that there
is a material misstatement therein, we are required to
communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with
Governance for the Standalone Financial Statements
7. The accompanying standalone financial statements have
been approved by the Company's Board of Directors. The
Company's Board of Directors are responsible for the
matters stated in section 134(5) of the Act with respect
to the preparation and presentation of these standalone
financial statements that give a true and fair view of the
financial position, financial performance including other
comprehensive income, changes in equity and cash flows
of the Company in accordance with the Ind AS specified
under section 133 of the Act and other accounting principles
generally accepted in India. This responsibility also includes
maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding of the assets
of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant to
the preparation and presentation of the financial statements
that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
8. In preparing the standalone financial statements, the Board
of Directors is responsible for assessing the Company's
ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using
the going concern basis of accounting unless the Board
of Directors either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.
9. The Board of Directors is also responsible for overseeing the
Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone
Financial Statements
10. Our objectives are to obtain reasonable assurance about
whether the standalone financial statements as a whole
are free from material misstatement, whether due to fraud
or error, and to issue an auditor's report that includes our
opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance
with Standards on Auditing will always detect a material
misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the
basis of these standalone financial statements.
11. As part of an audit in accordance with Standards on
Auditing, specified under section 143(10) of the Act we
exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement
of the standalone financial statements, whether due
to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or
the override of internal control;
• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)
(i) of the Act we are also responsible for expressing
our opinion on whether the Company has adequate
internal financial controls with reference to financial
statements in place and the operating effectiveness
of such controls;
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management;
• Conclude on the appropriateness of Board of Directors'
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether
a material uncertainty exists related to events or
conditions that may cast significant doubt on the
Company's ability to continue as a going concern. If
we conclude that a material uncertainty exists, we
are required to draw attention in our auditor's report
to the related disclosures in the standalone financial
statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our
auditor's report. However, future events or conditions
may cause the Company to cease to continue as a
going concern; and
• Evaluate the overall presentation, structure and content
of the standalone financial statements, including the
disclosures, and whether the standalone financial
statements represent the underlying transactions and
events in a manner that achieves fair presentation.
12. We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we
identify during our audit.
13. We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards.
14. From the matters communicated with those charged with
governance, we determine those matters that were of
most significance in the audit of the standalone financial
statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor's
report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated
in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public
interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
15. As required by section 197(16) of the Act, based on our
audit, we report that the Company has paid remuneration
to its directors during the year in accordance with the
provisions of and limits laid down under section 197 read
with Schedule V to the Act.
16. As required by the Companies (Auditor's Report) Order, 2020
('the Order') issued by the Central Government of India in
terms of section 143(11) of the Act we give in the Annexure A
a statement on the matters specified in paragraphs 3 and 4
of the Order, to the extent applicable.
17. Further to our comments in Annexure A, as required by
section 143(3) of the Act based on our audit, we report, to
the extent applicable, that:
a) We have sought and obtained all the information and
explanations which to the best of our knowledge and
belief were necessary for the purpose of our audit of
the accompanying standalone financial statements;
b) In our opinion, proper books of account as required
by law have been kept by the Company so far as it
appears from our examination of those books;
c) The standalone financial statements dealt with by this
report are in agreement with the books of account;
d) In our opinion, the aforesaid standalone financial
statements comply with Ind AS specified under
section 133 of the Act;
e) On the basis of the written representations received
from the directors and taken on record by the Board
of Directors, none of the directors is disqualified as on
31 March 2026 from being appointed as a director in
terms of section 164(2) of the Act;
f) With respect to the adequacy of the internal financial
controls with reference to financial statements of the
Company as on 31 March 2026 and the operating
effectiveness of such controls, refer to our separate
report in Annexure B wherein we have expressed an
unmodified opinion; and
g) With respect to the other matters to be included
in the Auditor's Report in accordance with rule
11 of the Companies (Audit and Auditors) Rules,
2014 (as amended), in our opinion and to the
best of our information and according to the
explanations given to us:
i. The Company, as detailed in note 39 to the
standalone financial statements, has disclosed
the impact of pending litigations on its financial
position as at 31 March 2026;
ii. The Company did not have any long-term
contracts including derivative contracts for which
there were any material foreseeable losses as
at 31 March 2026;
iii. There has been no delay in transferring amounts,
required to be transferred, to the Investor
Education and Protection Fund by the Company
during the year ended 31 March 2026;
iv. a. The management has represented that,
to the best of its knowledge and belief, as
disclosed in note 52(v) to the standalone
financial statements, no funds have been
advanced or loaned or invested (either from
borrowed funds or securities premium
or any other sources or kind of funds)
by the Company to or in any person(s) or
entity(ies), including foreign entities ('the
intermediaries'), with the understanding,
whether recorded in writing or otherwise,
that the intermediary shall, whether,
directly or indirectly lend or invest in other
persons or entities identified in any manner
whatsoever by or on behalf of the Company
('the Ultimate Beneficiaries') or provide any
guarantee, security or the like on behalf the
Ultimate Beneficiaries;
b. The management has represented that,
to the best of its knowledge and belief, as
disclosed in note 52(vi) to the standalone
financial statements, no funds have
been received by the Company from any
person(s) or entity(ies), including foreign
entities ('the Funding Parties'), with the
understanding, whether recorded in writing
or otherwise, that the Company shall,
whether directly or indirectly, lend or invest
in other persons or entities identified in any
manner whatsoever by or on behalf of the
Funding Party ('Ultimate Beneficiaries') or
provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries; and
c. Based on such audit procedures performed
as considered reasonable and appropriate
in the circumstances, nothing has come to
our notice that has caused us to believe that
the management representations under
sub-clauses (a) and (b) above contain any
material misstatement.
v. The interim dividend declared and paid
by the Company during the year ended
31 March 2026 and until the date of this audit
report is in compliance with section 123 of the Act.
The final dividend paid by the Company during
the year ended 31 March 2026 in respect of
such dividend declared for the previous year is
in accordance with section 123 of the Act to the
extent it applies to payment of dividend.
As stated in note 51 to the accompanying
standalone financial statements, the Board of
Directors of the Company have proposed final
dividend for the year ended 31 March 2026
which is subject to the approval of the members
at the ensuing Annual General Meeting. The
dividend declared is in accordance with
section 123 of the Act to the extent it applies to
declaration of dividend.
vi. As stated in note 53 to the standalone financial
statements and based on our examination
which included test checks, the Company, in
respect of financial year commencing on or after
1 April 2025, has used an accounting software
for maintaining its books of account which has
a feature of recording audit trail (edit log) facility
and the same has been operated throughout the
year for all relevant transactions recorded in the
software. Further, during the course of our audit
we did not come across any instance of audit
trail feature being tampered with. Furthermore,
the audit trail has been preserved by the
Company as per the statutory requirements for
record retention.
For Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013
Rajni Mundra
Partner
Place: Bhubaneswar Membership No.: 058644
Date: 27 May 2026 UDIN: 26058644ILMYMN9699
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