We have audited the accompanying financial statements of M/s. The Orissa Minerals

^Limi,ed rthe Campon?)which comprises the Balance Sheet as at March 31, 2024 and the Statement of Profit and Loss (including Other Comprehensive Income), statement of changes in Equity and statement of Cash Flows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, except for effects of the matters described in the Basis of Qualified opinion & Emphasis of Matter Paragraph of our report, 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 prescribed under section 133 of the Act read with the Companies [ Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024 and its profit, other comprehensive income, changes in equity and its cash flows for the year ended on that date,

Basis for Qualified Opinion

Wc conducted our audit of the standalone financial statements in accordance with the Standards on Auditin_G (SAs) specified under section 143(10) of the Companies Act 2013. 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 ("iCAl") together with the e ca requirements that are relevant to our audit of the Ind AS financial Statements under tile provisions of the Companies Act, 2013 and the Rules made there under 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

obtamed is sufficient and appropriate except for the matters stated below, to provide a basis for our qualified audit opinion.

1. Government of Odisha has renewed (February 2020) Beikhundi and Bhadrasahi mining leases of OMDC upto 15 August 2026 and 30 September 2030 respectively with a direction to execute supplementary lease deed within three months For execution of lease deed, OMDC is liable to pay Stamp Duty (five percent) and Registration charges (two per cent), to be assessed as per the Government of Odisha Gazette Notification of January 2012,

As per company's assessment. Rs. 7,427 Lacs was payable towards stamp dutv and registration charges ( Bhadrasahi: Rs. 3,559 Lacs and Belkundi: Rs 3,868 lacs), Non-prov.sion for stamp duty and registration charges payable to Government of Odisha towards execution of supplementary lease of two miring lease of OMDC has resulted in understatement of Current Liabilities by Rs 7 427 Lacs and understatement of Intangible Assets (net of amortisation expenses) by Rs. 1,980 Lacs. Further, considering the life of the respective lease, current year

amortisation expenses are understated by Rs. 371 lacs and Retained Earning [Loss) Rs. 5076 Lacs.

2. Government of Odisha has renewed (February 2020) the mining lease of OMDC namely Belkundi and Bhadrasahi upto 15 August 2026 and 30 September 2030 respectively with a direction to execute supplementary lease deed subject to

. availability of the requisite forest clearance. Subsequently, OMDC applied for

extensmni of forest clearance co-terminus with the extended mining lease period or the above mines. Government of Odisha demanded (October 20211 Rs 1974 Lacs and Rs. 5,125 Lacs towards Met Present Value as on the forest land included

in the lease out of which OMDC agreed for payment of Rs. 1,EQS Lacs and fts. 5,111 Lacs respectively and requested Government of Otlisha for revision in demand. The amounts had not yet been paid and have been disclosed under contingent liabilities of the company,

As per Para 4.2 of the Ind-As accounting policy of the Company, mining rights comprising of NRV and related payments to Government authorities for iron ore and manganese mines are amortised over the period of lease from the date of payment or the date of renewal of mining lease whichever is earlier, OMDC however in violation of its accounting policy had neither provided for the NPV due nor amortised it from the date of renewal of mining lease.

Thus this had resulted in understatement of Current Liabilities and 'Plant, property and Equipment by Rs, 6,919 lacs. Further considering the life of the respective lease, this has also resulted in understatement of Depreciation and Amortisation Expenses by Rs, 2,387 Lacs with consequent overstatement of profit for the year by the same amount. The contingent liabilities has also been overstated by Rs. 6,919 Lacs.

3. Other Current Assets includes Rs. 2,715,14 Lacs deposited by OMDC (Rs, 2,515.14 lac on 29.12.2017 and Rs. 200.00 Lacs on 16,11,2018} with Government of Gdisha towards compensation payable under section 21(5) of Mines and Minerals Development Regulations Act, 1957 on extraction of minerals without/ in excess of Environmental Clearance/ Forest Clearance in respect of lease in the name of Bharat Process and Mechanical Engineers Limited (BPMELj, being operated by OMDC in power of attorney basis. The deposit of Rs, 2,715.14 Lacs made by OMDC had been appropriated by Government of Odisha as part payment, In view of uncertainty in getting refund/ adjustment, OMDC should have made full provision against the amount so deposited with Government of Odisha.

Non-provision of the same has resulted in overstatement of Other Current Assets and overstatement of profit for the year by Rs, 2715.14 Lacs.

Emphasis of Matter We draw attention to:

4. We observed discrepancies between Closing balance of inventories as per Books of Accounts as on 31.03.2024, i3M$ report for the FY 2023-24 and physical verification report as on 31.03.2024,

in case of Bhadrasabi and Bagiaburu Mines book balance of iron ore is £9,002.96 Mt and 70,558.62 Mt respectively whereas the corresponding i3MS f Govt Portal) quantity Is 1,07,542,74 Mt and 9B612.47 MT respectively. The differential stock of 13,539.73 MT and 23,053.85 Mt was not considered in stock valuation. This resulted In under valuation of closing stock of inventory which leads to understatement of Current assets En the books of accounts.

Jrnn Orp /Quantity in MTl

Manganese Ore (Quantity In MTl

5. The company has outstanding dividend payables of Rs. 49.42 Lacs from 2012-13 to 2016-17 including Rs, 32,34 Lacs disputed dividends and Rs, 17.15 Lacs unpaid dividends, As per Section 124 of the Companies Act 2013, unclaimed dividends for

over seven years must be transferred to the Investor Education and Protection

in7Q i 11^* '^^en^’^ec* unclaimed dividends exceeding seven years (totaf Rs, Ý acs) have not been transferred to IEPF. This non-compliance may result in penalty of Rs. 5 lacs to Rs. 25 Lacs.

⁶" “ '!^atf^Hes ,0 the extent of Rs, 202.60 Lacs are long outstanding,

^{rci e 5mce} ^ 2010-11 and are recorded as "inoperative creditors" in

⁵ of accounts. The company should investigate the reason behind classifying

these payables as inoperative. Based on the investigation if the payables are

deemed not payable the same should be written off and if payable the same should be paid.

7. On verification of current assets revealed an overstatement of inventory by Rs. 47.41 Lacs. This discrepancy relates to the value of coal and dolomite (located at the closed Sponge Iron Plant since 2010) included at cost price. Management intends neither to revive the plant nor has it established a market price for the

^materials- ^{The lack} 0^f draper valuation before finalizing the ^23*24 accounts resulted in overstatement of inventory and profit by the same amount

8. Our review identified receivable of Rs. 4,439,48 Lacs from the Income Tax department. This amount relates to advance tax, self-assessment tax and TDS on FD reflecting as receivable since long time. This indicates its recoverability is uncertain, raising concerns about a potential understatement of retained earnings and overstatement of current assets in the financial statements. Some of the receivables are pending since 2006-07 which is almost 16 years old. if the amount

is not receivable, provision should be made to write it off from the books of accounts.

* During our review of Cash & Cash equivalents balance as on 31^H March 2024 it was found that out of Casing Balance of Rs.2Qll.S9 lakh, Rs,1977 lakh pertains to urging money in the form of fixed deposit taken by the company which were against the bank guarantee for a period of 6 years. However, the Company has shown it under the head Current Assets under the head "Bank Balance other than Cash & Cash equivalent" which Is not proper. Due to which Current assets are overstated & Non current assets are understated in the books of account,

lQ.During our review, we observed that the PCCF {wild fife} has demanded R* 91.80 , towards Site specific wildlife conservation plan on 18 10.2022 as demand letter from Divisional forest officer, However, The company has already paid Rs.4l.50 lakh on 05.02.2011, balance amount of Rs.50.30 lakh was not paid by the company as on date. No provision has been created for the differential amount. Hence, Non-creation of provision leads to understatement of Current liabilities by Rs.SQ.lOfekh in the books of accounts.

11,During the Course of audit, it came to our knowledge that Rs. 32.71 lakh was spent towards repairing & construction of Transit guest house and modification & renovation of director ibunglow during the period 2013-14 to 2018-19 The expenses are in the nature of revenue which ts included under the head Capital work ifl progress is incorrect. This results in understatement of loss by Rs.32.71 lakh £ overstatement of Capital Work-in Progress in the books of accounts.

Other Matters

1. We identified long-standing provisions for doubtful debts totalling Rs. 1,31,50,959.45/- since FY 2014-15. These provisions are continuing since more than 12 years. If the same are not receivable it should be written off. Due to this Receivable are overstated.

"s company -=e not obtained bs^srce confl motions as of March 31, 202i, frcm 3 s-_br!^^rt?3i r.u—ibe' of its surer,^r creditor sundry debtors arc otre^F i=:T'ea. Cdrs^jert'-i' the ba'a^css reported in the ststercerts are to

pct="t^:c ad.'jrtmects base:: on tbs cutcorres of c= acre canfirmatSor a^_d sycsequejit record -atkm processes. Hence, we canno: comment or! tbt ssrre,

3. As o=r the Secreter31 A-jdit Report arc !arier issued b, Hatfonal Stlock Exc~3r.ge t~e company has no: complied with the cam position of the board.

Key Audit Matters

<=> audh matters are those matters that in cur professional judgment, were of most s'grrrcscH in our audit of the standalone financial statements of the current period. These matters w ere ac dressed in the context or our audit of the stands lone fm="bsi statements as a whole, ard in forming our opinion thereon, end v,e do not provide a separate opinion on these matters.

We have determined that there are no key audit matters to communicate in cur report. Other Information

The Company's Board of Directors is responsible for the preparation of the other information. The other information comprises the Information included in the "Annual Report* (as defined in CAS 720), but does not Indude the standalone fingrdal stete merits and our a edit oris report thereon.

Our opinion cn the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

!n 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 ^consistent with the standalone financial statements or our knowledge ettaioed in the audit or otherwise appears to be materially misstated.

tf, based on the worfc we have performed, we conclude that there Is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibility of Management for the Standalone financial Statements

The Company's Board of Directors is responsible fcrthe matters stated in section 134(5} of the Companies Act, 2013 ("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, changes in equity and cash flows of the Company in accordance with the Ind AS and the other accounting principles generally accepted in India, including the accounting Standards specified under section 133 of the Act, 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 implementation and maintenance of 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 standalone financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, management is responsible for assessing the Company's a bility to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are also responsibie for overseeing the company's financial reporting process.

Auditor's Responsibility for the Audit of the Standalone Financial Statements

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 SAs 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 ftnancial statements.

As part of an audit in accordance with Standards on Auditing t'SAs'), we exercise

professional judgment and maintain professional scepticism 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 I43f3)jij of the Act we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system 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 management's 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.

* 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,

* Obtain sufficient appropriate audit evidence regarding the financial Information of the entitles within the Company to express an opinion on the standalone financial

* ³ em^^nt' ^{ar<? res}P°^ns^^ for the direction, supervision and performance of ^{e 5u ft} 0 ^^1e financial statements of such entities included in the standalone financial statements of which we are the independent auditors.

Materiality is the magnitude of misstatements in the standalone financial statements ' ⁱⁿ™\^UaltV °^r to aggregate, makes it probable that the economic decisions of a reasona y nowtedgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our au ^{J WOr an}d in evaluating the results of our work; and (il) to evaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance of the company and such other entities included in the standalone financial statements of which we are the m ependent auditors, 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.

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 he thought to bear on our independence, and where applicable, related safeguards.

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 faw 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 he expected to outweigh the public interest benefits of such communication.

Report cm Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2020 ("the Order") issued by the Central Government of fndia In terms of Section 143(H) of the Companies Act 2013, we give in Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

2. Wo have compiled wllli the Directions Bind Sub* Direction given by thf: Comptroller#.

flu lior General of India under section 143(5} of the Act while conducting the audit,

imd on the basis of Information and explanations given to us In this regard by the

ompany, we give In Annexure p \q this report, ;j statement on the matters specified

In such Directions and Sub-Direct ions.

3. As required by Section 143 (3) of the Act, we report that:

a) We have sought except for tbe matter described in the Basis for Qualified Opinion paragraph, obtained all the Information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

b} In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books except for the effects of the matter described in the Basis for Qualified Opinion paragraph above and for the matters stated.

c) The Balance Sheet, Statement of Profit and Loss including Statement of Other Comprehensive income, Statement of Change in Equity, and Statement of Cash F lows dealt with by this Report are fn agreement with the books of account.

d) Except for the effects of the matter described In the Basis for Qualified Opinion paragraph above, In our opinion, the aforesaid standalone lnd-A5 financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) The provisions of section 164(2) are not applicable to the Company as it Is a Government Company.

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, we refer to our separate report In Annexure C; 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, in our opinion and to the best of our Information and according to the explanations given to us:

a. The Company has disclosed the impact of pending litigations on Its financial position in its standalone financial statements - Refer Note 36 to the Standalone Ind AS financial statements.

b. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable Josses_r

F&rO. M. Kejriwal a Co.

Chartered Accountants FRN NC.3U144E

:jt:

(CA SwajMfejriwal)

Partner

Place: Bhubaneswar _M. _Na067fi9l

? ate: 24.09.2024 UDIN>