Auditor Report of The Orissa Minerals Development Company Ltd.

Mar 31, 2025

The Orissa Minerals Development Company LimitedReport on the Standalone Financial Statements Opinion

We have audited the accompanying financial statements of M/s. The Orissa Minerals Development Company Limited (âthe Companyâ) which comprises the Balance Sheet as at March 31, 2025 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, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (âthe Actâ) 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, (âInd ASâ) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2025 and its losses, other comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditorâs 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 Ind AS Financial Statements under the provisions of the Companies Act, 2013 and the Rules made 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 audit opinion on the Ind AS Financial statements.

Emphasis of Matter

We draw attention to the following notes on the financial statements being matters pertaining to M/s Orissa Minerals Development Company Limitedrequiring emphasis by us. Our opinion is not modified in respect to these matters.

1. Note 14.1 (d)

Physical verification of Iron Ore at Thakurani mines and Railway Siding-1 was conducted by an external verifier and found to be 122670.45Mt against book stock 122083.72 Mt with difference of 586.73ML Physical stock of Iron Ore at Railway siding-2 could not be verified as materials are lying scattered and buried under platform and tracks. The book balance of such material at Railway siding-2 was brought forward from earlier years at 16998.14ML The entire book stock of 139081.86Mt (Thakuranimines Railway Siding-1&2)was valued at Rs.1,39,081.86 (i.e. Re1/Mt). The difference in book stock of 139081.86Mt (Thakuranimines Railway Siding-1&2) against i3MS stock of 142828.62Mt by 3746.76Mt which was lost due to spillage and wastage at nonoperational mines since Dec''2009 and same was also not considered for valuation.

2. Note 14.3

Raw material stock (coal & dolomite) located at Sponge Iron Plant (closed since the year 2010) has been valued at cost amounting to 47.41 Lakhs. Quantity of coal & dolomite is 2764.768Mt and 8.790Mt respectively with corresponding value of Rs. 47.18 lakhs and Rs. 0.23 Lakhs. Physical verification of these raw material has been done by an independent verifier (both quality & quantity) and no difference was observed.

3. Note 19.1

Unpaid dividend includes Rs. 32.34 lakhs for disputed dividend as on March 31, 2025. The Unpaid Dividend pertains to 15-16 - Rs. 4.07 Lakhs & 16-17 - Rs. 3.07 Lakhs. Unpaid dividend of 7.14 Lakhs couldnât be transferred to IEPF due to frequent changes in signatories to the bank (effecting KYC formalities) where unclaimed dividend account is maintained. The process of transfer has been initiated with new signatories as per Board Resolution Dt. 22nd May''2025.

4. Note 36.1 (B)

Compensation for Excess Mining (BPMEL LEASES) Certificate Case 32/2018(Rs.1,92,938.00 Lacs)

Out of the total claim of Odisha Govt. towards demand for BPMEL Leases along with interest amounting Rs. 1929,38.00 Lakhs have been shown in Sl No (B) as the cases are pending in different courts of law.

Other Matters

1. The Company has obtained balance confirmations as of March 31, 2025, from certain sundry creditors, sundry debtors, and other parties. However, these confirmations have not been reconciled with the corresponding balances as per the books of accounts. Consequently, the accuracy and completeness of such balances as reported in the financial statements remain unverified and may be subject to adjustments upon completion of the reconciliation process. Accordingly, we are unable to comment on the correctness of these balances.

2. As per the Secretarial Audit Report and letter issued by National Stock Exchange the company has not complied with the composition of the board.

Key Audit Matters

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.

We have determined that there are no key audit matters to communicate in our report.

Other Information

The Companyâs Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the âAnnual Reportâ (as defined in CAS 720), but does not include the standalone financial statements and our auditorâs report thereon.

Our opinion on the standalone financial statements does not cover the other information and we do 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 standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work 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 Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (âthe Actâ) 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 Companyâs ability 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 responsible for overseeing the companyâs financial reporting process.

Auditorâs 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 auditorâs 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 financial statements.

As part of an audit in accordance with Standards on Auditing (''SAs''), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

â¢ 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.

â¢ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section i43(3)(i) 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.

â¢ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

â¢ 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.

â¢ 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.

â¢ Obtain sufficient appropriate audit evidence regarding the financial information of the entities within the Company to express an opinion on the standalone financial statement. We are responsible for the direction, supervision and performance of the audit of the 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 that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) 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 independent 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 be 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 auditorâs 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

1. As required by the Companies (Auditorâs Report) Order, 2020 (âthe Orderâ) issued by the Central Government of India in terms of Section 143(11) 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. We have complied with the Directions and Sub-Direction given by the Comptroller & Auditor General of India under section 143(5) of the Act while conducting the audit, and on the basis of information and explanations given to us in this regard by the Company, we give in Annexure B to this report, a statement on the matters specified in such Directions and Sub-Directions.

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

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 Balance Sheet, Statement of Profit and Loss including Statement of Other Comprehensive Income, Statement of Change in Equity, and Statement of Cash Flows dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid standalone Ind-AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015 as amended.

e) Being a Government Company pursuant to the Notification No. GSR 463(E) dated 5 June 2015 issued by the Ministry of Corporate Affairs, Government of India, provisions of sub-section (2) of Section 164 of the Act, are not applicable to the 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 Auditorâs 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 losses.

For SDR & Associates Chartered Accountants FRN: 326522E

Place: Bhubaneswar ^Sd/-

Date: 17/06/2025 ^(S.^S. ^SahoÂ° ^FCA)

Partner

Memb. No.314508

UDIN: 25314508BMLFQI6884

Mar 31, 2024

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

^Limi,edrthe 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 Â£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

Name of Mine*	Closing Balance as per Physical verification report	Closing balance as on 31.03.2024 as per Books of Accounts	As per i3MS Report
Bhadrasahi	83,787.514	89,002-96	107,542.74
Thakuranl (including K ini way Sidi ng)	122,080,979	122,083.88	142,823.70
Belkundi	55,252.651	55,253,46	21,989,60
Baglaburu	70,558.624	70,558.62	98,612.47
Thakur an! Rly Siding 2		16,998.14
Stock at SIP	3892.064	3,393.99
Total	3,40,571.332	3,57,791.05	370,973.51

Manganese Ore (Quantity In MTl

Name of Mines	Closing Balance as per Physical verification report	Closing balance as on 31,03.2024 as per Books of Accounts	As per 13MS Report
Bhacfrasai	3,33662	3,335.620	458.530
Thakurani	14,415.39	14,417.553	2,845.494
Belkundl	5,502.317	5,503.617	4,866.270
Total	73,254.833	23,256.790	6,170.294

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^â^ec* unclaimed dividends exceeding seven years (totaf Rs, Â¦ acs) have not been transferred to IEPF. This non-compliance may result in penalty of Rs. 5 lacs to Rs. 25 Lacs.

⁶" â ''!^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.

Particulars	Amount
Fbl Refundabfe{0G-C7}	149,281.00
Fbt Refundable!03-03)	444,587.00
Income Tan Refun da bEe{08-09}	70,407,269.00
Taejon Advar>ce{09-10)	24,301,068.00
Taxation AdvancefltMl}	58.557,510.30
Taxation Advance(lM2)	83,934,042,11
Taxation Advance! 12-131	11,742,899.00
Taxation Advanced 3-14)	29,503,666 00

⁷ nation Advance flfi-171	22,627,582,20
Taxation Advance (17-13)	55,548,245 56
i a* at ion Advance (J.9-20J	18,503,913.14
Taxation Advance f2Q-21)	7,047,512.64
Taxation Advance (21-22]	13,390,967.70
^Taxation Advance f23-2ai	4,411,358.10
Meiuntl Received ( Adjusted )	36,677,131.10
Total	443,947,908 43 \|

* 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 Â£ 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.uâibe'' 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:

* 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'' ^{arPÂ°^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 '' ⁱⁿâ¢\^UaltV Â°^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.

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>

Mar 31, 2023

The Orissa Minerals Development Company LimitedReport on the Standalone Financial Statements

Opinion

We have audited the accompanying financial statements of M/s. The Orissa Minerals Development Company Limited (âthe Companyâ) which comprises the Balance Sheet as at March 31, 2023 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, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (âthe Actâ) 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, (âInd ASâ) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, and the Loss, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditorâs 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 (ICAI) of India together with the independence requirements that are relevant to our audit of the standalone financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIâs Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Emphasis of Matter

i. Reference is invited to the Note No. 28 and note no. 5 of Segment Reporting wherein it has been stated that Pursuant to the Judgement of Hon''ble Supreme Court dated

02.08.2017, Dy. Director of Mines, Odisha had issued different demand notices dated

02.09.2017, 23.10.2017 & 13.12.2017 to OMDC for OMDC Leases and to BPMEL for BPMEL Leases towards compensation. The amount of Demand for OMDC Leases is Rs. 70218.46 Lacs and for BPMEL Leases is Rs. 86157.12 Lacs, totalling Rs. 156375.58 Lacs towards EC, FC and MP/CTO. OMDC had been operating BPMEL Leases backed by Power of Attorney to sign and execute all mining leases and other mineral concessions from time to time. OMDC has paid the compensation of OMDC Leases of Rs.87622.10 Lakhs towards OMDC Leases (Rs. 1479.68 Lakhs on 29.12.2017, Rs. 13093.47 Lakhs on

16.11.2018, Rs. 693.45 Lakhs on 30.01.2019, Rs. 40000.00 Lakhs on 01.03.2019, Rs. 100 Lakhs on 20.09.2019 and Rs. 32255.50 Lakhs on 03.10.2019) in 2017-18, 2018-19 and 2019-20 out of its own fund of Rs.56622.10 Lac and borrowed fund from Bank Rs.31000.00 Lac . OMDC has paid a sum of Rs. 2715.14 Lakhs (Rs. 2515.14 Lakhs on 29.12.2017 and Rs. 200.00 Lakhs on 16.11.2018) towards BPMEL Leases under protest. The remaining amount of compensation including interest upto 31.03.2023 against BPMEL Leases amounting Rs. 186061.84 Lac are shown under Contingent Liability.

ii. The mine stock has been assessed by a third party, Superintendence Co. of India (P) Ltd. for qualitative and quantitative verification as on 31.03.2023. The certificate of the said third party mentions in a note that for the old stack No.124 which is located at Thakurani Iron Ore Mines, was lying along the rail track at No.2 siding earlier and a platform along the rail track had been prepared by SE Railway by using the mixed iron ore of the same stack lying along the rail track. The stack could not be assessed as the iron ore has been mixed up with other waste within the platform. Assessment can be done after retrieving, screening and stacking of ore from the platform.

The total quantity in the same stake was 18744.124 MT as per physical verification report for 2015-16. The identified stock in 2022-23 by the third party is 1742.98 MT. Management has considered the stock lying under the platform for valuation. SE Railway has issued circular dated 27/10/17 by virtue of which the rights and powers to permit the use of the Railway Siding for the traffic of any person and to work such traffic over this siding has been withdrawn.

iii. Reference is invited to the Note 39 to the Standalone Financial Statements. Mining operation of the Company is continued to remain suspended due to non-renewal of the leases and non-receipt of requisite clearances from the Government of Odisha and the Central Government. These conditions indicate the existence of a material uncertainty to resume the mining operations. These standalone financial statements have been

prepared on a going concern basis mainly for the initiative taken by the Companyâs management for opening of the mines and resumption of mining operations.

Our opinion is not modified on account of above matters.

Key Audit Matters

We have determined that there are no key audit matters to communicate in our report.

Other Information

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

If, based on the work 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 Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (âthe Actâ) 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.

The Board of Directors are also responsible for overseeing the companyâs financial reporting process.

Auditorâs Responsibility for the Audit of the Standalone Financial Statements

As part of an audit in accordance with Standards on Auditing (''SAs''), we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

â¢ 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)Â® 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.

â¢ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

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.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditorâs Report) Order, 2020 (âthe Orderâ) issued by the Central Government of India in terms of Section 143(11) 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.

3. As required by Section 143 (3) of the Act, we report 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 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 it appears from our examination of those books.

c. The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement and statement of changes in equity dealt with by this Report are in agreement with the books of account.

d. In our opinion, the aforesaid standalone Ind-AS 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 Auditorâs 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:

â¢ 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.

â¢ The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

For O. M. Kejriwal & Co. Chartered Accountants

FRN No.314144E Sd/-

Place: Bhubaneswar (CA Swati Kejriwal)

Date: 07.07.2023 Partner

Mar 31, 2021

The Orissa Minerals Development Company Limited Report on the Standalone Financial Statements Opinion

We have audited the accompanying financial statements of M/s. The Orissa Minerals Development Company Limited ("the Company") which comprises the Balance Sheet as at March 31, 2021 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, 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, 2021, and the Loss, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (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 (ICAI) of India together with the independence requirements that are relevant to our audit of the standalone financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Emphasis of Matter

i) Reference is invited to the Note No. 28 and note no. 5 of Segment Reporting wherein it has been stated that Pursuant to the Judgement of Hon''ble Supreme Court dated 02.08.2017, Dy. Director of Mines, Odisha had issued different demand notices dated 02.09.2017, 23.10.2017 & 13.12.2017 to OMDC for OMDC Leases and to BPMEL for BPMEL Leases towards compensation. The amount of Demand for OMDC Leases is Rs. 70218.46 Lacs and for BPMEL Leases is Rs. 86157.12 Lacs, totalling Rs. 156375.58 Lacs towards EC, FC and MP/CTO. OMDC had been operating BPMEL Leases backed by Power of Attorney to sign and execute all mining leases and other mineral concessions from time to time. OMDC has paid the compensation of OMDC Leases of Rs.87622.10 Lakhs towards OMDC Leases (Rs. 1479.68 Lakhs on 29.12.2017, Rs. 13093.47 Lakhs on 16.11.2018, Rs. 693.45 Lakhs on 30.01.2019,

Rs. 40000.00 Lakhs on 01.03.2019, Rs. 100 Lakhs on 20.09.2019 and Rs. 32255.50 Lakhs on 03.10.2019) in 2017-18, 2018-19 and 2019-20 out of its own fund of Rs.56622.10 Lac and borrowed fund from Bank Rs.31000.00 Lac . OMDC has paid a sum of Rs. 2715.14 Lakhs (Rs. 2515.14 Lakhs on 29.12.2017 and Rs. 200.00 Lakhs on 16.11.2018) towards BPMEL Leases under protest. The remaining amount of compensation including interest upto 31.03.2021 against BPMEL Leases amounting Rs. 149565.45Lac are shown under Contingent Liability.

ii) The mine stock has been assessed by a third party, Superintendence Co. of India (P) Ltd. for qualitative and quantitative verification as on 31.03.2021. The certificate of the said third party mentions in a note that for the old stack No.124 which is located at Thakurani Iron Ore Mines, was lying along the rail track at No.2 siding earlier and a platform along the rail track had been prepared by SE Railway by using the mixed iron ore of the same stack lying along the rail track. The stack could not be assessed as the iron ore has been mixed up with other waste within the platform. Assessment can be done after retrieving, screening and stacking of ore from the platform.

The total quantity in the same stake was 18744.124 MT as per physical verification report for 2015-16. The identified stock in 2020-21 by the third party is 1745.205 MT. Management has considered the stock lying under the platform for valuation. SE Railway has issued circular dated 27/10/17 by virtue of which the rights and powers to permit the use of the Railway Siding for the traffic of any person and to work such traffic over this siding has been withdrawn.

iii) Reference is invited to the Note 39 to the Standalone Financial Statements. Mining operation of the Company is continued to remain suspended due to non-renewal of the leases and non-receipt of requisite clearances from the Government of Odisha and the Central Government. These conditions indicate the existence of a material uncertainty to resume the mining operations. These standalone financial statements have been prepared on a going concern basis mainly for the initiative taken by the Company''s management for opening of the mines and resumption of mining operations.

Our opinion is not modified on account of above matters.

Key Audit Matters

We have determined that there are no key audit matters to communicate in our 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 include the standalone financial statements and our auditor''s report thereon.

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

If, based on the work 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 for the 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 ability 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 responsible 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 financial statements.

As part of an audit in accordance with Standards on Auditing (''SAs''), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

â¢ 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 system in place and the operating effectiveness of such controls.

â¢ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates

and related disclosures made by management.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities within the Company to express an opinion on the standalone financial statement. We are responsible for the direction, supervision and performance of the audit of the financial statements of such entities included in the standalone financial statements of which we are the independent auditors.

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

1) As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of Section 143(11) 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) We have complied with the Directions and Sub-Direction given by the Comptroller & Auditor General of India under section 143(5) of the Act while conducting the audit, and on the basis of information and explanations given to us in this regard by the Company, we give in Annexure B to this report, a

statement on the matters specified in such Directions and Sub-Directions.

3) As required by Section 143 (3) of the Act, we report 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 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 it appears from our examination of those books.

c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement and statement of changes in equity dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid standalone Ind-AS 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.

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 losses.

For Nandy Halder & Ganguli Chartered Accountants

FRN No.302017E

Place: Kolkata (CA R. P. NANDY)

Date: 29-06-2021 Partner

M. No.51027

UDIN: 21051027AAAABA9915

Mar 31, 2018

INDEPENDENT AUDITORâS REPORT

TO THE MEMBERS OF

THE ORISSA MINERALS DEVELOPMENT COMPANY LIMITED Report on the Standalone Ind-AS Financial Statements

We have audited the accompanying standalone Ind-AS financial statements of The Orissa Minerals Development Company Limited ("the Company"), which comprise the Balance Sheet as at 31 st March, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended, signed by us under reference to this report and a summary of the significant accounting policies and other explanatory information.

Management''s Responsibility for the Standalone Financial Statements

The power of the Board of Directors of the Company is suspended in lieu of the ongoing Corporate Insolvency Resolution Process ("CIRP") application filed by an operational creditor of the Company and admitted by the court. Hence, the Company''s management including Interim Resolution Professional ("IRP") of the Company are responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone Ind-AS financial statements that give a true and fair view of the state of affairs (financial position), Profit or loss (financial performance including other comprehensive income) and cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind-AS) specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 standalone Ind-AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these standalone Ind-AS financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit of the standalone Ind-AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind-AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind-AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Standalone Ind-AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the standalone Ind-AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s management including IRP of the Company, as well as evaluating the overall presentation of the standalone Ind-AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind-AS financial statements.

Opinion

In our Opinion and to the best of our information and according to the explanations given to us, the aforesaid Financial Statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

i. In the case of the Balance Sheet, of the state of Affairs (financial position) of the company as at 31 st March, 2018;

ii. In the case of the Statement of Profit and Loss (financial performance including other comprehensive income), of the Loss for the year ended on that date; and

iii. In the case of the Cash Flow statement, of the cash flows for the year ended on that date.

Emphasis of Matter

i. Reference is invited to the Note No. 36.1 (a) wherein it has been disclosed that an amount of Rs. 1306.89 Lacs is shown under contingent liability in the case of M/s Orissa Stevedores Ltd. as per the order of NCLT under Insolvancy & Bankruptcy Code, 2016. Also in note 6 of Segment Reporting, it has been disclosed that the Hon''ble National Company Law Tribunal ("NCLT"), Kolkata Bench, admitted the Corporate Insolvency Resolution Process ("CIRP") application filed by an operational creditor, M/s Orissa Stevedores Ltd. of The Orissa Minerals Development Co. Ltd. ("the Company") and appointed an Interim Resolution Professional ("IRP"), in terms of the Insolvency and Bankruptcy Code, 2016 ("the code") to manage the affairs Of the company vide order dated 20th February, 2018 passed in C.P. NO.729/KB/2017.

No impact in the Financial Statements was given in the earlier Financial Years due to non-admission of the whole claim. Further no impact of same has been given in the Financial Statement for the Financial Year 2017-18 in view of pendency of the CIRP, and in view of suspension of the powers of Board of Directors, the Powers of adoption of this financial results vested with the IRP. Reference is drawn to Schedule of NCLT Admission in the financial statement.

ii. Reference is invited to the Note No. 28 and note no. 7 of Segment Reporting wherein it has been stated that pursuant to the Judgment of Hon''ble Supreme Court dated 02.08.2017, Dy. Director of

Mines, Odisha had issued different demand notices dated 02.09.2017, 23.10.2017 & 13.12.2017 to OMDC for OMDC Leases and to BPMEL for BPMEL Leases towards compensation against excess mining amounting Rs. 141856.07 lacs. The amount of Demand for OMDC Leases based on the recalculation made by OMDC is Rs. 23528 lacs after the payment made earlier and interest upto 31.03.2018 which has been provided on the books of accounts. Balance amount of OMDC Mines and total amount of BPMEL Leases are disclosed in Contingent Liability as the matter with BPMEL is subjudice.

iii. Reference is invited to the Note 39 to the Financial Statements, mining operation of the Company is continued to be remained suspended due to non-renewal of the leases and non-receipt of requisite clearances from the Government of Odisha and the Central Government. These conditions indicate the existence of a material uncertainty to resume the mining operations. These financial statements have been prepared on a going concern basis mainly for the initiative taken by the Company''s management for opening of the mines and resumption of mining operations.

iv. Reference is drawn to Note No.28 to the Financial Statements. Out of total demand by Odisha Government of Rs. 141856.07 lacs, an amount of Rs.1479.68 lacs, stands paid and further amounts of Rs.23528 lacs stands provided in these accounts as per the revised calculation towards mining leases. The balance amount including interest Rs.120999 lacs has been shown under contingent liabilities.

Our opinion is not modified on account of above matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of Section 143(11) of the Companies Act 2013, we give in Annexure, a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent appl icable.

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

a) We have sought and 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 it appears from our examination of those books.

c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement and statement of changes in equity dealt with by this Report are in agreement with the books of account.

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

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 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 losses.

c. There has been delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

Instance of Delay	(Rs. In lacs)	Date required to be transferred	Date of Transfer
Unpaid/ unclaimed Dividend for 2009.10	16.87	05.11.2017	13.02.2018

TO THE MEMBERS OF

THE ORISSA MINERALS DEVELOPMENT COMPANY LIMITED

[Referred to in paragraph 1 under head Report on Other Legal and Regulatory Requirements of the Auditors'' Report of even date]

1. (a) The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets.

(b) The fixed assets of the Company have been physically verified by the management during the year and discrepancies noticed during the course of physical verification have been duly adjusted in the accounts. In our opinion, the frequency of verification is reasonable.

(c) The title deeds of immovable properties including leasehold were made available for our examination, other than the registration of the building of HO located at AG-104, 2nd Floor, Sourav Abasan, Sector-I I, Salt Lake City, Kolkata-700 091 which is not yet completed.

2. (a) As per the information the management has conducted the physical verification of inventory at reasonable intervals.

(b) The discrepancies noticed on physical verification of inventory as compared to book records were not adjusted and have not been properly dealt with in the books of account. However, valuation of inventory has been done on the basis of physically verified inventory.

3. According to the information and explanations given to us the Company has not granted any loan, secured or unsecured to companies, firms, limited liability partnership or other parties covered in the register maintained under section 189 of the Companies Act 2013. Accordingly, the
provision of clauses 3(iii) (a), (b) and (c) of the order is not applicable to the companies and hence not commented upon.

4. In our opinion and according to information and explanations given to us, the Company has not granted any loan and given guarantee and security to any companies, as such the provision of section 185 and 186 of the Companies Act 2013 not applicable.

5. The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.

6. The Central Government of India has prescribed maintenance of cost records under sub-section (1) of Section 148 of the Act for the products of the company. However, as the turnover of such products is lower than the prescribed threshold limits, in our opinion, maintenance of cost records is not applicable.

7. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing the undisputed statutory dues including employees'' state insurance, income-tax, sales-tax, wealth tax, service tax, Goods and Service Tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities except provident fund.

The extent of the arrears of statutory dues outstanding as at 31 st March 2018, for a period of more than six months from the date they became payable, in respect of share of shortfall of distributable interest on Provident Fund areas follows-

(b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of dues of sales-tax, service tax, duty of excise and value added tax as at 31st March 2018 which have not been deposited on account of a dispute, areas follows-

Name of Statute	Nature of due	Amount (Rs in Lacs)	Period to which it relates	Due date of payment
Provident Fund Act, 1952	Share of shortfall of distributable interest	3.83	2012-13	Various
Provident Fund Act, 1952	Contribution to Fund	17.68	February 2014 -March 2018	15^th of Succeeding Month

Name of the statute	Nature of dues	Amount (Rs in Lacs)	Period to which the amount relates	Forum where the dispute is pending
The Central Sales Tax Act, 1956	Central Sales Tax	4.44	2003-04	Sales Tax Tribunal
Odisha Value Added Tax Act, 2004	VAT	21.34	2005-06	Odisha High Court
Odisha Entry Tax Act, 1999	Entry Tax	26.92	2005-06	Odisha High Court
Odisha Entry Tax Act, 1999	Entry Tax	2.31	2006-07	Commissioner of Commercial Taxes (Appeal)
Odisha Entry Tax Act, 1999	Entry Tax	0.88	2007-08	Sales Tax Tribunal
Odisha Value Added Tax Act, 2004	VAT	224.25	2006-07	Commissioner of Commercial Taxes (Appeal)
Finance Act, 1994	Service Tax	7.05	2012-13	Commissioner of Service Tax (Appeal)

8. The Company has not defaulted in repayment of loans and borrowings.

9. Based upon the audit procedures performed and the information and explanations given by the management, the Company has neither raised any money by public issues of shares or debentures.

10. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India and information and explanations given to us, we have not come across any instances of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor we have been informed of any such case by the management.

11. In our opinion and according to the information and explanations given to us the provisions of section 197 read with Schedule V to the Act are not appl icable to the Company.

12. As the Company is not a Nidhi Company, the Nidhi rules 2014 are not applicable to it. The provisions of clause 3 (xii) of the Order are not appl icable to the Company.

13. According to the information and explanations given to us and the records of the Company examined by us, the requirements of sections 177 and 188 of the Act is not applicable to this Company.

14. According to information and explanations given to us and on an overall examination of the Balance Sheet of the Company has not made a preferential allotment/ private placement of shares or fully or partly convertible debentures during the year under review, and hence, reporting requirements under clause 3(xiv) of the order are not applicable to the Company and not commented upon.

15. Based upon the audit procedures performed and the information and explanations given by the management, we have not come across any instances where the Company has entered into any noncash transactions with its directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company.

16. In our opinion, the Company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company.

For Nandy Haider & Ganguli

Chartered Accountants

FRN No.302017E

(CA Kushal Saha)

Partner M. No.065934

Place: Visakhapatnam

Date: 30th May, 2018

Mar 31, 2016

The Members Of

The Orissa Minerals Development Company Limited

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of The Orissa Minerals Development Company Limited ("the Company"), which comprise the Balance Sheet as at 31^stMarch, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, signed by us under reference to this report and a summary of the significant accounting policies and other explanatory information. These financial statements are the responsibility of the Company''s management. Our responsibility is to express an opinion on these financial statements based on our audit.

Management''s Responsibility for the Standalone Financial Statements

2. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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.

Auditor''s Responsibility

3. Our responsibility is to express an opinion on these standalone financial statements based on our audit.

4. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Basis for Qualified Opinion

8. The title deeds of immovable properties including leasehold were not made available for our examination.

8.1. There being restrictions on movement of the items of inventory, we are unable to ascertain whether these will fetch the value at which these are stated in the financial statements.

8.2. Current assets considered good include Rs. 119.63 lakhs (net of provision) receivable from Bisra Stone Lime & Company Ltd. Based on the available information we are unable to ascertain the timing and extent of ultimate realization of the said amount.

8.3. Current Liabilities include Rs.469.39 lakhs being aggregate amount of outstanding dues on account of legal charges Rs. 57.63 lakhs, Provision for Property Tax Rs. 60.84 lakhs, Dead Rent Rs. 288.68 lakhs and Surface Rent Rs. 62.24 lakhs for which supporting documents were not available for our inspection.

8.4. Balances in respect of Advances, Receivables and Payables are subject to confirmation. The effect of any adjustment, as may be required, on reconciliation with the parties'' confirmation is not currently ascertainable.

8.5. Diminution other than temporary, if any, in the carrying amount of the investment in unquoted shares amounting to Rs. 281 lakhs could not be ascertained due to non-availability of latest financial statements of the investee Company.

Qualified Opinion

9. In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion paragraph above, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31^st March, 2016, and its profit and its cash flows for the year ended on that date.

Emphasis of Matter

10. As indicated in the Note 35 to the Financial Statements mining operation of the Company is continued to be remained suspended due to non-renewal of the leases and non-receipt of requisite clearances from the Government of Odisha and the Central Government. These conditions indicate the existence of a material uncertainty to resume the mining operations. These financial statements have been prepared on a going concern basis mainly for the initiative taken by the Company''s management for opening of the mines and resumption of mining operations.

Report on Other Legal and Regulatory Requirements

11. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of Section 143 of the Act, we give in Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order.

12. In terms of the Directions and Sub-Direction under section 143(5) of the Act sent to us under cover of letter dated 10^th May 2016 of The Principal Director of Commercial Audit, Ranchi, we give in Annexure B, our report on the matters included in the Directions and Sub-Directions as aforesaid.

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

a) We have sought and obtained, except any report as might have made by the Vigilance department of the Company, all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

b) Except for the effects of the matter described in the Basis for Qualified Opinion paragraph above, 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 Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in 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 financial statements comply with the 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.

g) The matter described in the Basis for Qualified Opinion paragraph and the Emphasis of Matter paragraph above, in our opinion, may have an adverse effect on the functioning of the Company.

h) The qualification relating to the maintenance of accounts and other matters connected therewith are as stated in the Basis for Qualified Opinion paragraph above.

i) 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 financial statements - Refer Note 25to the financial statements.

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

c) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company

Other Matter

14. The Company has not prepared consolidated statements in accordance with the provisions of section 129 of the Companies Act, 2013.

14.1 This revised Report issued in compliance with Audit Memo No. Annual A/Cs/OMDC/Audit Memo No.1 dated 10.6.16 and Annual A/Cs/OMDC/Audit Memo No.17 dated 10.6.16 issued by the Office of the Principal Director of Commercial Audit, Ranchi supersedes our Audit Report dated 26^th May,2016 to the members of The Orissa Minerals Development Company Limited.

ANNEXURE A TOTHEINDEPENDENT AUDITORS'' REPORT

the Members of

The Orissa Minerals Development Company Limited

[Referred to in paragraph 10 of the Auditors'' Report of even date]

1. (a) The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets.

(b) The fixed assets of the Company have been physically verified by the management during the year and no material discrepancies between the book records and the physical inventory have been noticed. In our opinion, the frequency of verification is reasonable.

2. (a) The inventory has been physically verified by the management during the year. The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been properly dealt with in the books of account.

3. The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 189 of the Act.

4. According to the information and explanations given to us and the records of the Company examined by us, the Company has not made any investment, advanced any loan, given any guarantee or provided any securities to others.

5. The Company has not accepted any deposits within the meaning of Sections 73 or 76 of the Act and the rules framed there under.

7. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing the undisputed statutory dues including employees'' state insurance, income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities except provident fund.

The extent of the arrears of statutory dues outstanding as at 31st March 2016, for a period of more than six months from the date they became payable, in respect of share of shortfall of distributable interest on Provident Fund are as follows-

Name of Statute	Nature of due	Amount (Rs in Lacs)	Period to which it relates	Due date of payment
Provident Fund Act, 1952	Share of shortfall of distributable interest	3.83	2012-13	Various
Provident Fund Act, 1952	Contribution to Fund	4.67	February 2014 -August 2015	15th Marth 2014 to 15th September 2015

(b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of dues of sales-tax, service tax, duty of excise and value added tax as at 31st March 2016 which have not been deposited on account of a dispute, are as follows-

Name of the statute	Nature of dues	Amount (Rs in Lacs.)	Period to which the amount relates	Forum where the dispute is pending
Mines and Minerals Development Act, 1957	Cost of excess production	539539.24	2000-01 to 2009-10	Mines Tribunal
The Central Sales Tax Act,1956	Central Sales Tax	4.44	2003-04	Sales Tax Tribunal
Odisha Value Added Tax Act, 2004	VAT	21.34	2005-06	Odisha High Court
Odisha Entry Tax Act, 1999	Entry Tax	34.79	2005-06	Odisha High Court
Odisha Entry Tax Act, 1999	Entry Tax	2.31	2006-07	Commissioner of Commercial Taxes (Appeal )
Odisha Entry Tax Act, 1999	Entry Tax	0.88	2007-08	Sales Tax Tribunal
Odisha Value Added Tax Act, 2004	VAT	224.25	2006-07	Commissioner of Commercial Taxes (Appeal )
Finance Act, 1994	Service Tax	7.05	2012-13	Commissioner of Service Tax (Appeal)
Income Tax Act, 1961	Income Tax Interest	28357.89 14539.41	2008-09 to 2012-13	Commissioner of Income Tax (Appeals)

8. The Company has neither taken any loan from financial institution, bank or Government nor issued any debentures.

9. The Company has neither raised any money by public issues of shares or debentures nor obtained any term loans during the year.

10. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India and the books and papers made available to us, we have not come across any instance of fraud on or by the Company.

11. In our opinion, the provisions of section 197 read with Schedule V to the Act are not applicable to the Company.

12. The Company being not a Nidhi Company the related statutes are not applicable to the company.

13. According to the information and explanations given to us and the records of the Company examined by us, the requirements of sections 177 and 188 of the Act is not applicable to this Company.

14. The Company has not made any preferential allotment of shares or fully or partly convertible debentures during the year under audit.

15. According to the information and explanations given to us and the records of the Company examined by us, the Company has not entered into any non-cash transactions, with any director of the Company or persons connected with them, involving acquisition of assets by or from them for consideration other than cash.

16. In our opinion, and according to the information and explanations given to us, not being a non-banking financial company, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

ANNEXURE- B TOTHEINDEPENDENT AUDITORS''REPORT

To the Members of

The Orissa Minerals Development Company Limited

[Referred to in paragraph 11(h) of the Auditors'' Report of even date]

I. Directions

Sl.	Description	Auditor''s Response
1	Whether the Company has clear title/lease deeds for freehold and leasehold land respectively? If not please state the area of freehold and leasehold land for which title/lease deeds are not available.	The title deeds of the freehold land of 207.135 acres having a book value of Rs.28,020 and lease deeds for leasehold land of 56.372 acres having a book value of Rs.1,96,77,000 were not made available for our examination.
2	Whether there are any cases of waiver/ write off of debts/ loans/interest etc., if yes, the reasons there for and the amount involved.	No debts/ loans/ interest have been written off/ waived. Provisions have been created for long outstanding balances considered doubtful of recovery.
3	Whether proper records are maintained for inventories lying with third parties & assets received as gift/grant(s) from Govt. or other authorities.	Not applicable.

II. Sub Directions

Sl. Description Auditor''s Response
1 Examine the percentage escalation in salary assumed by 1. management for computation of actuarial liability against gratuity and other employee benefits and report whether the same was reasonable, and source data provided by the Company to the Actuaries for actuarial valuation were correct, complete and valid.	The salary escalation rates considered by the actuaries for computing liabilities towards employee benefit are as follows:
	Gratuity	6%
	Privilege Leave	5%
	Half-pay Leave	5%
	As the pay revision of the Company is pending before the Ministry of Steel, we are unable to comment on the adequacy of the rates considered for actuarial valuation of liabilities pertaining to employee benefits. Further, the Company has created a provision to cover the impact of such pay revision on the accrued liabilities towards employee benefits which, however is not based on actuarial valuation. 2. The source data provided for computation of gratuity liability was for only 511 employees out of total 512 employees of the company.

ANNEXURE- C TOTHEINDEPENDENT AUDITORS''REPORT

To the Members of

The Orissa Minerals Development Company Limited

[Referred to in paragraph 11(h) of the Auditors'' Report of even date]

Report on the Internal Financial Control under Clause (i) of Sub -sections 3 of Section 143 of the Companies Act, 2013("the Act")

1. We have audited the internal financial controls over financial reporting of The Orissa Minerals Development Company Limited("the Company") as of 31^st March, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Management''s Responsibility for Internal Financial Control

2. The Company''s management is responsible for establishing and maintaining internal financial control based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors'' Responsibility

3. Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the "Guidance Note" and the Standard on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintaining and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting includes obtaining an understanding of internal financial control over financial reporting, assessing the risk that a material Weakness exists, and testing and evaluating the design and operating effectiveness of internal controls based on the assessed risk. The procedure selected depends on the auditor''s judgment, including the assessment of the risk of material misstatement of the financial statement, whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.

Meaning of Internal Financial Control over Financial Reporting

6. A Company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statement for external purposes in accordance with generally accepted accounting principles. A Company''s internal financial control over financial reporting includes those policies and procedures that

1) pertain to the maintenance of the records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

2) provide reasonable assurance that the transactions are recorded as necessary to permit preparation of financial statement in accordance with generally accepted accounting principles, and that receipts and expenditure of the Company are being made only in accordance with authorization of management and directors of company; and

3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statement.

Inherent Limitations of Internal Financial Control over Financial Reporting

7. Because of inherent limitation of internal financial control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to errors or fraud may occur and not be detected. Also, projections of any evaluations of the internal financial control over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Disclaimer of Opinion

8. According to the information and explanation given to us, the Company is in the process of establishing its internal financial control over financial reporting on criteria considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

9. Because of this reason, we are unable to obtain sufficient appropriate audit evidence to provide a basis for our opinion whether the Company had adequate internal financial controls over financial reporting and whether such internal financial controls were operating effectively as at 31^st March, 2016.

10. We have considered the disclaimer reported above in determining the nature, timing, and extent of audit tests applied in our audit of the financial statements of the Company, and the disclaimer does not affect our opinion on the financial statements of the Company.

THE ORISSA MINERAL DEVELOPMENT COMPANY LIMITED_

In their Report, the auditors have made certain observations to which clarifications have been given by your Directors as below:

Sl. No.	Observations of the Auditor	Management Replies
01	The title deeds of immovable properties including leasehold were not made available for our examination	Records available with the Revenue Department of the State clearly indicate that the title is in the name of OMDC. Copy of the online records is available in OMDC Mines. OMDC is paying Land Tax to State Govt. based on such record. However steps have been initiated to obtain certified and stamped copies of Title Deeds from the Revenue Department, Government of Odisha.
02	There being restrictions on movement of the items of inventory, we are unable to ascertain whether these will fetch the value at which these are stated in the financial statements	Movement of mines stock inventory is not permitted by statutory authority. On resumption of mines and on obtaining approval from appropriate authority, the available inventory is expected to fetch the value as per the market rate prevailing at that point of time.
03	Current assets considered good include Rs. 119.63 lakhs (net of provision) receivable from Bisra Stone Lime Company Ltd. Based on the available information; we are unable to ascertain the timing and extent of ultimate realization of the said amount.	Continuous persuasion is being made for realization of the dues from BSLC.
04	Current Liabilities include Rs. 469.39 Lakhs being aggregate amount of outstanding dues on account of legal charges Rs. 57.63 lakhs, provision for property Tax Rs. 60.84 lakhs, Dead Rent Rs. 288.68 lakhs and Surface Rent Rs. 62.24 lakhs for which supporting documents were not available for our inspection.	Action has been initiated for logical conclusion for legal charges and surface rent. Action has been already taken for property tax and necessary effect has been given in accounts.
05	Balances in respect of Advance, Receivable and payables are subject to confirmation. The effect of any adjustment, as may be required, on reconciliation with the parties'' confirmation is not currently ascertainable.	Letters sent to the customers on quarterly basis for confirmation of their balances. Action has been initiated for balances not confirmed.
06	Diminution other than temporary, if any, in the carrying amount of the investment in unquoted shares amounting to Rs. 281 lakhs could not be ascertained due to non-availability of latest financial statements of the investee Company	As the case with M/s EIML is subjudice at Company Law Board, Kolkata the financial statements are not available with OMDC.

COMPTROLLER AND AUDITOR GENERAL OF INDIA_

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143 (6) (b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF THE ORISSA MINERALS DEVELOPMENT COMPANY LIMITED FOR THE YEAR ENDED 31 MARCH 2016.

The preparation of financial statements of The Orissa Minerals Development Company Limited for the year ended 31 March 2016 in accordance with the financial reporting framework prescribed under the Companies Act, 2013 (Act) is the responsibility of the management of the company. The statutory auditors appointed by the Comptroller and Auditor General of India under section 139(5) of the Act are responsible for expressing opinion on the financial statements under section 143 of the Act based on independent audit in accordance with the standards on auditing prescribed under section 143(10) of the Act. This is stated to have been done by them vide their revised Audit Report dated 20 June 2016 superseding their Audit Report dated 26 May 2016.

I, on the behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under section 143(6)(a) of the Act of the financial statements of The Orissa Minerals Development Company Limited for the year ended 31 March 2016. This supplementary audit has been carried out independently without access to the working papers of the statutory auditors and is limited primarily to inquiries of the statutory auditors and company personnel and a selective examination of some of the accounting records. On the basis of my audit noting significant has come to my knowledge which would give rise to any comments upon or supplement to statutory auditor''s report.

For and on the behalf of the Comptroller and Auditor General of India

(Sushil Kumar Jaiswal)

Principal Director of the Commercial Audit &

Ex- officio Member, Audit Board, Ranchi.

Place : Ranchi

Date : 22th July, 2016

Mar 31, 2015

1. We have audited the accompanying financial statements of The Orissa/Minerals Development Company Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, signed by us under reference to this report and a summary of the significant accounting policies and other explanatory information. These financial statements are the responsibility of the Company''s management. Our responsibility is to express an opinion on these financial statements based on our audit.

Management''s Responsibility for the Standalone Financial Statements

2. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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.

Auditor''s Responsibility

3. Our responsibility is to express an opinion on these financial statements based on our audit.

4. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2015, its profit and its cash flows for the year ended on that date.

Emphasis of Matters

9. As indicated in the Note 35 to the Financial Statements mining operation of the Company is continued to be remained suspended due to non-renewal of the leases and non-receipt of requisite clearances from the Government of Odisha and the Central Government. These conditions indicate the existence of a material uncertainty that may cast significant doubt about the Company''s ability to continue its operations pursuant to its main objective. These financial statements have been prepared on a going concern basis mainly for the initiative taken by the Company''s management for opening of the mines and resumption of mining operations.

Report on Other Legal and Regulatory Requirements

10. As required by the Companies (Auditor''s Report) Order, 2015 ("the Order") issued by the Central Government of India in terms of Section 143 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

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

(a) We have sought and obtained, except any report as might have made by the Vigilance department of the Company, 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 it appears from our examination of those books.

(c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

(d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

(e) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, there is no matter which may have an adverse effect on the functioning of the Company.

(f) On the basis of the written representations received from the directors other than Mr. T. Chattopadhyay and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2015 from being appointed as a director in terms of Section 164 (2) of the Act.

(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 financial statements - Refer Note 25 to the financial statements.

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

c. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

12. In terms of the Directions and Sub-Direction of the Comptroller & Auditor General of India under section 143(5) of the Act, we give in the ADDENDUM our report on the matters included in the Directions and Sub-Directions as aforesaid.

Other Matters

This revised report issued in compliance with the Audit Memo No. A. A/cs/OMDC/14-15/01 dated 18.06.2015 issued by the Office of the Principal Director of Commercial Audit, Ranchi supersedes our report dated 29th May 2015 to the members of The Orissa Minerals Development Company Limited.

ANNEXURE TO THE AUDITORS'' REPORT

To the members of The Orissa Minerals Development Company Limited

[Referred to in paragraph 10 of the Auditors'' Report of even date]

1. (a) The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets.

(b) The fixed assets of the Company have been physically verified by the management during the year and no material discrepancies between the book records and the physical inventory have been noticed. In our opinion, the frequency of verification is reasonable.

2. (a) The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable.

(b) In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) On the basis of our examination of the inventory records, in our opinion, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been properly dealt with in the books of account.

3. The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 189 of the Act.

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. Further, on the basis of our examination of the books and records of the Company, and according to the information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system.

5. The Company has not accepted any deposits within the meaning of Sections 73 or 76 of the Act and the rules framed there under.

6. We have broadly reviewed the books and records maintained by the company in respect of its products where maintenance of cost records has been specified by the Central Government under sub-section (I) of section 148 of the Companies Act and are of opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of these books and records to determine whether they are accurate or complete.

7. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing the undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities.

The extent of the arrears of statutory dues outstanding as at 31st March 2015, for a period of more than six months from the date they became payable, in respect of share of shortfall of distributable interest on Provident Fund are as follows-

Name of Statute Nature of due Amount Period to which it Due date of (Rs in Lacs) relates payment

Provident Fund Share of shortfall of 6.00 2012-13 - Act, 1952 distributable interest

(b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of dues of sales-tax, service tax, duty of excise and value added tax as at 31st March 2015 which have not been deposited on account of a dispute, are as follows-

Name of the statute Nature of dues Amount Period to which Forum where the the amount dispute is pending (Rs in Lacs.) relates

The Central Sales Tax Central Sales 4.44 2003-04 Appellate Tribunal Act,1956 Tax

Odisha Value Added VAT 21.34 2005-06 High Court of Orisse Tax Act, 2004

Odisha Entry Tax Act, Entry Tax 34.79 2005-06 High Court of Orissa 1999

Odisha Entry Tax Act, Entry Tax 2.31 2006-07 Commissioner 1999 Appeal

Odisha Entry Tax Act, Entry Tax 0.88 2007-08 Appellate Tribunal 1999

Odisha Value Added VAT 224.25 2006-07 Commissioner Tax Act, 2004 Appellate

Finance Act, 1994 Service Tax 7.05 2012-13 Commissioner Appeal

(c) According to the information and explanations given to us and the records of the Company examined by us, no amounts were required to be transferred to Investor Education and Protection Fund during the year in accordance with the provisions of section 205C of the Companies Act, 1956 and rules made there under and there were no dues in this regard outstanding as at 31st March 2015.

8. The company has no accumulated losses as at 31st March 2015 and it has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year.

9. The Company has neither borrowed funds from financial institutions nor issued any debentures.

10. According to the information and explanations given to us and the records of the Company examined by us, the Company has not given any guarantee for loans taken by others from banks or financial institutions during the year.

11. The company has not obtained any term loans.

12. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India and the books and papers made available to us, we have not come across any instance of fraud on or by the Company.

For LB. Jha & Co.,

Chartered Accountants

(Firm Registration number 301088E)

Kamal Kumer Bhanja

Partner

(Membership number 14722)

Kolkata, 3rd July, 2015

Mar 31, 2014

A. Report on the Financial Statements

We have audited the accompanying financial statement of The Orissa Minerals Development Company Limited, which comprise the Balance Sheet as at 31st March, 2014. the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

B. Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of the financial Statements that are free from material misstatement, whether due to fraud or error.

C. Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standard on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free form material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

D. Opinion

In our opinion and to the best of information and according to the explanations given to us, the financial statement give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;

(b) In the case of the Statement of Profit and Loss, of the profit for the year ended on that date;

(c) In the case of Cash Flow Statement, of the Cash Flows for the year ended on that date.

E. Emphasis of matter

1) Attention is drawn to the Mote 32 to the Financial Statements regarding non-availability of confirmation of balances from Trade Payables/Trade Receivables/Loans & Advances and the adjustment, if any, which may arise on receipt of confirmations is presently not quantifiable and accordingly their consequential impact on the year''s profit and year-end Assets & Liabilities is not ascertainable.

2) We also draw attention to Note 36 to the financial statements which states about preparation of the accounts on a going concern basis inspite of the fact that mining operations of the Company have been stopped for more than three years due to non-receipt of environment/fores''t/other clearances from the Government of Odisha as well as Central Government and the management is regularly following up with the Governments for opening and resumption of mining operations.

Our opinion is not qualified in respect of the above matters.

F. Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by Section 227(3) of the Act, we report that:

a. we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. In our opinion proper books of account as required by law have been kept by the Company so far as appeals.

c. The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account;

d. In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Act;

e. The provision of clause (g) of sub-section ( l ) of Section 274 of the Act is not applicable to the Company, vide notification GSR - 829 (Z) dated 21.10.2003 issued by the Department of Company Affairs, Govt. of India, New Delhi.

f. Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under Section 441A of the Act nor has it issued any Rules under the said Section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

ANNEXURE TO THE AUDITORS'' REPORT (Referred to in Paragraph F.l of our report of even date)

1. [a] The Company has maintained proper records to show full particulars including quantitative details and situation of the fixed assets.

[b] The Fixed Assets have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable having regard to the size of the Company and the nature of its fixed assets. The discrepancies noticed on such verification were not material and have been properly dealt with in the books of account.

[c] In our opinion, and according to the information and explanations given to us, the Company has not disposed off a substantial part of its fixed assets during the year.

2. [a] As explained to us, stock of stores have been physically verified during the year by the management. Stock of Finished Goods and Raw Materials has been physically verified by an outside agency on behalf of the Company. In our opinion, the frequency of verification is reasonable.

[b] In our opinion, the procedures of physical verification of inventory followed by the management were reasonable and adequate in relation to the size of the Company and the nature of its business.

[c] In our opinion, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material,

3. The Company has not granted/taken any loans secured unsecured to/from companies, firm or other parties covered in the register maintained under Section 301 of the act.

4. In our opinion and according to the information and explanations given to us and based on our review, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of services. There was no sale of goods made during the year. Further, on the basis of our examination on the books and records of the Company, and according to the information and explanations given to us, we have neither come across nor have we been informed of any instances of major weaknesses in the aforesaid internal control procedure and continuing failure on the part of the management to take corrective course of action in this regard.

5. In our opinion and according to the information and explanations given to us, during the year there were no transactions that were need to be entered into the register in pursuance of Section 301 of Act.

6. The Company has not accepted any deposits under the provisions of Sections 58A and 58AA of the Act and the rules framed there under.

7. In our opinion, and based on our review, the Company has an internal audit system which need to be strengthened to make it commensurate with the size and nature of its business.

8. We have made an overall review of the books of account maintained by the Company, pursuant to the rules made by the Central Government of India, for the maintenance of cost records has been prescribed under clause (d) of sub-section (1) of Section 209 of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate and complete.

9. [a] According to the information and explanations given to us and records of the Company

exammed by us. the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues as applicable to it.

There are no arrears of outstanding statutory dues other than share of shortfall of distributable interest on Provident Fund as at the last day of the financial year for a period of more than 6 months from the date they became payable:

Name of Statute Nature of due Amount Period to Due date of (Rs. in lacs) which it payment relate

P.F. Act. Share of short fall 3.00 (Estd.) 2012-13 * of distributable interest

*P.F A/cs. yet to be audited after which the dues would be deposited to the P.F Fund.

[b] According to the information and explanations given to us records of the Company examined by us, no undisputed amounts payable in respect of income tax, wealth tax, service tax, sales tax, customs duty, excise duty and cess as at March 31, 2014 which have not been deposited on account of disputed except as follows:-

Name of Nature of Period to which it Statute dues pertains

Sales Tax CST 2003-2004 Act

Orissa Entry Entry Tax 2005-2008 Tax Act

Sales Tax O-VAT 2005-06 Act

Sales Tax O-VAT 2006-07 Act

Name of Forum where dispute is Amount Statute pending (Rs. in Lac)

Sales Tax Tribunal 4.44 Act

Orissa Entry Additional 30.11 Tax Act Commissioner (Appeal)

Sales Tax High Court of Orissa 21.34 Act

Sales Tax Commissioner (Appeal) 224.26 Act 10. The Company does not have any accumulated losses. The Company has neither incurred cash losses during the financial year covered by our audit nor in the immediately preceding financial year.

11. According to the records of the Company as examined by us and the information and explanations given to us, the Company has not accepted any deposits/loans from any financial institutions/banks nor it has issued any debentures.

12. Based on our examination of documents and records and according to the information and explanations given by the management, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, and according to explanations received from the management, the provisions of any special statutes relating to a chit fund or a nidhi/mutual benefit fund/ societies are not applicable to the Company.

14. In our opinion and according to the information and explanations given to us, the Company is not dealing in or trading in shares, securities, debentures and other investments.

15. In our opinion and according to the information and explanations given to us, the Company has not given any guarantees for loans taken by others from banks or financial institutions during the year.

16. In our opinion, and according to the information given to us, the Company has not availed any Term loans.

17. On the basis of an overall examination of the balance sheet of the Company, in our opinion, and according to the information and explanations given to us, there are no funds raised on a short- term basis, which have been used for long-term investment:

18. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act during the year.

19. In our opinion and according to the information and explanations given to us, the Company has not issued any debentures during the year nor has any debentures outstanding as at 31st March.2014.

20. The Company has not raised any money by way of any public issue during the year.

21. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of any such case by the Management.

For L.B.JHA & Co. Chartered Accountants Firm Registration Number: 301088E

(A.K. Gandhi) Place: Kolkata Partner Date:30.05.2014 Membership No 16350

Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statement of The Orissa Minerals Development Company Limited , which comprise the Balance Sheet as at 31st March, 2013, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

B. Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of the financial Statements that are free from material misstatement, whether due to fraud or error.

C. Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standard on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion.

D. Basis for "Qualified Opinion"

Attention is drawn to the Note 30(2.3) to the Financial Statements regarding non availability of confirmation of balances from Trade Payables/Trade Receivables/Loans & Advances and the adjustment, if any, which may arise on receipt of confirmations with their consequential impact on the year''s profit and year-end Assets & Liabilities is not ascertainable.

E. Qualified Opinion

In our opinion and to the best of information and according to the explanations given to us, the financial statement give "except for the effects of the matter described in the Basis for Qualified Opinion paragraph" the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013;

(b) In the case of the Statement of Profit and Loss, of the profit for the year ended on that date;

(c) In the case of Cash Flow Statement, of the Cash Flows for the year ended on that date.

F. Emphasis of matter

We also draw attention to Note 30(8) to the financial statements which states about preparation of the accounts on a going concern basis inspite of the fact that mining operations of the Company have been stopped for more than two years due to non receipt of environment/forest/other clearances from the Government of Odisha as well as Central Government and the management is regularly following up with the Governments for opening and resumption of mining operations. Our opinion is not Qualified in respect of this matter.

G. Report on Other Legal and Regularly Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by Section 227(3) of the Act, we report that:

a. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose 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;

c. The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account;

d. In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Act;

e. The provision of clause (g) of sub-section (1) of Section 274 of the Act is not applicable to the Company vide notification GSR - 829 (Z) dated 21.10.2003 issued by the Department of Company Affairs, Govt, of India, New Delhi.

f. Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under Section 441 of the Act nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company

1. [a] The Company has maintained proper records to show full particulars including quantitative details and situation of the fixed assets.

[b] The Fixed Assets have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable having regard to the size of the Company and the nature of its fixed assets. The discrepancies noticed on such verification were not material and have been properly dealt with in the books of account.

[c] In our opinion, and according to the information and explanations given to us, the Company has not disposed off a substantial part of its fixed assets during the year.

2. [a] As explained to us, stock of stores have been physically verified during the year by the management. Stock of Finished Goods and Raw Materials has been physically verified by an outside agency on behalf of the Company. In our opinion, the frequency of verification is reasonable.

[b] In our opinion the procedures of physical verification of inventory followed by the management were reasonable and adequate in relation to the size of the Company and the nature of its business.

[c] In our opinion the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification between the physical stock and book records were not material and the same have been dealt with in the books of account.

3. The Company has not granted/taken any loans secured unsecured to/from companies, firm or other parties covered in the register maintained under section 301 of the act.

4. In our opinion and according to the information and explanations given to us and based on our review, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets, there was no sale of goods made during the year. Further, on the basis of our examination on the books and records of the Company, and according to the information and explanations given to us, we have neither come across nor have we been informed of any instances of major weakness in the aforesaid internal control procedure and continuing failure on the part of the management to take corrective course of action in this regard.

5. In our opinion and according to the information and explanations given to us, during the year there were no transactions that were need to be entered into the register in pursuance of Section 301 of Act.

6. The Company has not accepted any deposits under the provisions of Sections 58A and 58AA of the Act and the rules framed there under.

7. In our opinion, and based on our review, the Company has an internal audit system which need to be strengthened to make it commensurate with the size and nature of its business.

8. We have made an overall review of the books of account maintained by the Company, pursuant to the rules made by the Central Government of India, for the maintenance of cost records has been prescribed under clause (d) of sub-section (1) of Section 209 of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate and complete.

9. [a] According to the information and explanations given to us and records of the Company examined by us, the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues as applicable to it.

10. The Company does not have any accumulated losses. The Company has neither incurred cash losses during the financial year covered by our audit nor in the immediately preceeding financial year.

11. According to the records of the Company as examined by us and the information and explanations given to us, the Company has not accepted any deposits/loans from any financial institutions/banks nor it has issued any debentures.

12. Based on our examination of documents and records and according to the information and explanations given by the management, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, and according to explanations received from the management, the provisions of any special statutes relating to a chit fund or a nidhi/mutual benefit fund/ societies are not applicable to the Company.

14. In our opinion and according to the information and explanations given to us, the Company is not dealing in or trading in shares, securities, debentures and other investments.

15. In our opinion and according to the information and explanations given to us, the Company has not given any guarantees for loans taken by others from banks or financial institutions during the year.

16. In our opinion, and according to the information given to us, the Company has not availed any term loans.

17. On the basis of an overall examination of the balance sheet of the Company, in our opinion, and according to the information and explanations given to us, there are no funds raised on a short-term basis, which have been used for long-term investment.

18. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act during the year.

19. In our opinion and according to the information and explanations given to us, the Company has not issued any debentures during the year nor has any debentures outstanding as at 31s* March,2013.

20. The Company has not raised any money by way of any public issue during the year.

21. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, nor noticed or reported during the year, have we been informed of such a case by the management.

For L.B.JHA & Co.

Chartered Accountants

Firm Registration Number: 301088E

(A.K. Gandhi)

Place: Kolkata Partner

Date:24th May, 2013 Membership No 16350

Mar 31, 2012

1. We have audited the attached Balance Sheet of The Orissa Minerals Development Company Limited as at 31st March 2012 and also the Statement of Profit and Loss of the Company for the year ended on that date and Cash Flow Statement for the year ended on that date annexed thereto.

2. These financial statements are the responsibility of the Company's Management. Our responsibility is to express an opinion on these financial statements based on our audit.

3. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for expressing our opinion on financial statements of the company.

4. As required by the Companies (Auditor's report) Order, 2003 as amended by the Companies (Auditor's Report) (Amendment ) Order, issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956 and on the basis of such examination of the books and record of the company as we considered appropriate and according to the information and explanations given to us, we enclosed in "Annexure-A", a statement on the matters specified in paragraphs 4 and 5 of the said order:

5. Further to our comments in Annexure A, We report that;

i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit.

ii) 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.

iii) The Balance Sheet, Statement of Profit & Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account.

iv) In our opinion, the Balance Sheet, Statement of Profit & Loss and Cash Flow Statement dealt with by this report together with Notes on Accounts and Significant Accounting Policies of the Company comply with the Accounting Standards referred in sub-section (3C) of Section 211 of the Companies Act, 1956.

v) On the basis of written declaration received from the Directors which were taken on record by the Board of Directors, none of the Directors of the Company is disqualified from being appointed as a Director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts of the Company together with the Significant Accounting Policies read with Notes on Accounts (Part A & B) give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the Accounting Principles generally accepted in India :-

(a) in case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2012.

(b) in case of the Statement of Profit & Loss of the profit for the year ended on that date; and

(c) in the case of Cash Flow Statement, of the Cash Flows for the year ended on that date.

(i) (a) Whether the Company is maintaining proper records showings full particulars, including quantitative details and situation of fixed assets.

(b) Whether these fixed assets have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so, whether the same have been properly dealt with in the books of Accounts.

(c) If a substantial part of Fixed Assets have been disposed off during the year, whether it has affected the going concern.

(ii) (a) Whether physical verification of inventory has been conducted at reasonable intervals by the Management.

(b) Are the procedures of physical verification of inventory followed by the Management reasonable and adequate in relation to the size of the company and the nature of its businessRs. If not, the inadequacies in such procedures should be reported.

(c) Whether the company is maintaining proper records of Inventory and whether any material discrepancies were noticed on physical verification and if so, whether the same have been properly dealt with in the books of accounts.

(iii) (a) Has the company either granted or taken loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under section 301 of the Act Rs. If so, give the number of parties and amount involved in the transactions.

(b) Whether the rate of interest and other terms and conditions of loans given or taken by the company, secured or unsecured, are prima facie prejudicial to the interest of the company.

(c) Whether payment of the principal amount and interest are also regular.

(d) If overdue amount is more than one lakh, whether reasonable steps have been taken by the company for recovery/ payment of the principal and interest.

(iv) Is there an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods Rs. Whether there is a continuing failure to correct major weaknesses in internal control.

(v) (a) Whether transactions that need to be entered into a register in pursuance of Section 301 of the Act have been so entered.

(b) Whether each of these transactions have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time. (This information is required only in case of transactions exceeding the value of five lakh rupees in respect of any party and in any one of financial year)

(vi) In case the company has accepted deposits from the public, whether the directives issued by the Reserve Bank of India and the provisions of sections 58A and 58AA of the rules framed there under, where applicable, have been complied with, if not the nature of contravention should be stated, if an order has been passed by the Company Law Board whether the same has been complied with or not.

(vii) In the case of listed companies and / or other companies having a paid up capital and reserve exceeding Rs. 50 lakh as at the commencement of the financial year concerned, having an average annual turnover exceeding five crore rupees for the period of three consecutive financial year immediately preceding the internal audit system commensurate with its size and nature of its business.

(viii) Where maintenance of cost records has been prescribed by the Central Government under clause (d) of sub- section (1) of Section 209 of the Act, whether such accounts and records have been made and maintained.

(ix) (a) Is the company regular in depositing undisputed statutory dues including Provident Fund. Investor Education and Protection Fund, Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty Cess and any other statutory dues with the appropriate authorities and if not, the extent of the arrears of outstanding statutory dues as at the last day of the financial year concerned for a period more than six months from the date they became payable, shall be indicated by the auditor.

(b) In case dues of sales tax / income tax / custom tax/wealth tax/excise duty/cess have not been deposited on account of any dispute, then the amounts involved and the forum where dispute is pending may please be mentioned.

(A mere representation to the department shall not constitute the disputes.)

(x) Whether in case of a company which has been registered for a period not less than five years, its accumulated losses at the end of the financial year are not less than fifty percent of its net worth and whether it has incurred cash losses in such financial year and in the financial year immediately preceding such financial year also.

(xi) Whether the company has defaulted in repayment of dues to a financial institution or bank or debenture holders. If yes, the period and amount of default to be reported.

(xii) Whether adequate documents and records are maintained is cases where the company has granted loans and advances on the basis of security by way of pledge of shares, debenture and other securities, if not, the deficiencies to be pointed out.

(xiii) Whether the provisions of any special statute applicable to chit fund have been duly complied with. In respect of nidhi/ mutual benefit fund / societies :

(a) Whether the net owned funds to deposit liability ratio is more than 1.20 as on the date of Balance Sheet.

(b) Whether the company has complied with the prudential norms on income recognition and provisioning against sub- standard /default/loss assets.

(c) Whether the company has adequate procedures for appraisal of credit proposals / requests, assessment of credit need and repayment capacity of the borrowers.

(d) Whether the repayment schedule of various loans granted by nidhi is based on the repayment capacity of the borrower and would be conducive to recovery of the loan amount.

(xiv) If the company is dealing or trading in shares, securities, debentures and other investments, whether proper records have been maintained of the transactions and contracts and whether timely entries have been made therein; also whether the shares, securities, debentures and other securities have been held by the company in its own name except to be extent of the exemption if any, granted under Section 49 of the Act.

(xv) Whether the company has given any guarantee for loans taken by others from bank or financial institutions, the terms and conditions whereof any prejudicial to the interest of the company.

(xvi) Whether term loans were applied for the purpose for which the loans were obtained.

(xvii) Whether the funds raised on short term basis have been used for long term investment and vice-versa, if yes, the nature and amount is to be indicated.

(xviii) Whether the company has made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act and if so, whether the price at which shares have been issued is prejudicial to the interest of the company.

(xix) Whether securities have been created in respect of debenture issued.

(xx) Whether the management has disclosed on the end use of money raised by public issues and the same has been verified.

(xxi) Whether any fraud on or by the company has been noticed or reported during the year. If yes, the nature and the amount involved is to be indicated.

For N. C. Banerjee & Co.,

Chartered Accountants

FRN 302081E

(Arnob Paul)

Partner

Mem. No. 06490

Place : KOLKATA

Dated : 18 May 2012

Mar 31, 2011

1. We have audited the attached Balance Sheet of The Orissa Minerals Development Company Limited as at 31st March 2011 and also the Profit and Loss Account of the above company for the year ended on that date and annexed thereto and Cash Flow Statement for the period ended on that date. This report dated 26th July 2011 supersedes our earlier given on 27th May 2011.

2. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

3. We have conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform our audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for expressing our opinion on financial statements of the company.

4. As required by the Companies (Auditor's report) Order, 2003 called as CARO 2003, vide notification no. GSR 480(E) dated 12th June, 2003, issued by the Central Government of India in terms of sub- section (4A) of Section 227 of the Companies Act, 1956, we enclose in the annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

5. Further to our comments in the annexure referred to above, we report that :

i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit.

ii) 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.

iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account.

iv) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report together with Notes on Accounts {Schedule Ã 20(II)} and other notes appearing in various schedules and Significant Accounting Policies {Schedule Ã 20(I)} of the Company comply with the Accounting Standards referred in sub-section (3C) of Section 211 of the Companies Act.

v) On the basis of written declaration received from the Directors which were taken on record by the Board of Directors, none of the Directors of the Company is disqualified from being appointed as a Director in terms of clause (g) of sub-section (1) of Section 274 of the Act.

vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts of the Company together with the Significant Accounting Policies [Schedule Ã 20(I)] and read with Notes on Accounts [Schedule Ã 20(II)] particularly to the note No. 3 & 3b the accounts has been prepared on going concern basis as all mining lease are in various stages of approval, Note No. 18 regarding restructuring expenses of Rs. 6.52 lakhs is not related normal course of business of the company.

The company, the said accounts give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the Accounting Principles generally accepted in India :-

(a) in case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2011.

(b) in case of the Profit & Loss Account, of the Profit for the year ended on that date; and

(c) in the case of Cash Flow Statement, of the Cash Flows for the year ended on that date.

COMPANIES (AUDITORS' REPORT) ORDER, 2003 QUERIES COMMENTS

(i) (a) Whether the Company is maintaining proper records showings full particulars, including quantitative details and situation of fixed assets.

The Company has in this year prepared a fixed asset register with the help of our side agency which require further improvement and reconciliation. The register contain full particulars including quantitative details and situations of fixed assets.

(b) Whether these fixed assets have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so, whether the same have been properly dealt with in the books of Accounts.

The fixed Assets have been physically verified by the out-side agency with the help of the management. They have indicated obsolete fixed assets but no value has been indicated. The same could not be properly delt in books of account.

(c) If a substantial part of Fixed Assets have been disposed off during the year, whether it has affected the going concern.

No substantial parts of fixed assets have been disposed off during the year. The company is a mining company as on 31st March 2011 all mining lease has expired and at various stages of approval. The accounts has been prepared on going concern basis.

(ii) (a) Whether physical verification of inventory has been conducted at reasonable intervals by the Management.

Physical verification of spare parts has been done at reasonable intervals. Incase of Raw materials and finished goods verification is done by third party.

(b) Are the procedures of physical verification of inventory followed by the Management reasonable and adequate in relation to the size of the company and the nature of its business? If not, the inadequacies in such procedures should be reported.

The procedure of physical verification of spare parts has been done by the management. Third party verification is done by the management for raw materials and finished goods which required improvement.

(c) Whether the company is maintaining proper records of Inventory and whether any material discrepancies were noticed on physical verification and if so, whether the same have been properly dealt with in the books of accounts.

The Company maintains proper records of stores. In case Raw material and finished product physical verification has been done by third party there is a wide difference between book stock and physical stock which required management attention. Sub grade stock of finished product has been accounted for during the year.

(iii) (a) Has the company either granted or taken loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under section 301 of the Act? If so, give the number of parties and amount involved in the transactions.

Loan given to associate companies the Register has been maintained under Section 301 of the Companies Act. Scott and Saxby Rs. 104.42 lacs and KDCL Rs. 28.77 lacs.

(b) Whether the rate of interest and other terms and conditions of loans given or taken by the company, secured or unsecured, are prima facie prejudicial to the interest of the company.

Interest rate and other terms and condition of loan giver are not prejudicial to the interest of the company.

(c) Whether payment of the principal amount and interest are also regular.

No payment of Principal and Interest has been made during the year.

(d) If overdue amount is more than one lakh, whether reasonable steps have been taken by the company for recovery/ payment of the principal and interest.

Steps have been taken but no Recovery from Associate Companies Scott and Saxby and KDCL Both the sister concern are under liquidation.

(iv) Is there an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods? Whether there is a continuing failure to correct major weaknesses in internal control.

In our opinion and according to the information and explanation given to us there are adequate internal control procedures commensurate with the size of the company and the nature of the business for the purchase of inventory and fixed assets but there is scope of improvement.

(v) (a) Whether transactions that need to be entered into a register in pursuance of Section 301 of the Act have been so entered.

According the information and explanations given to us. we are of the opinion that the transactions that needed to be entered in to the register maintained under section 301 of the Companies Act. 1956 have been so entered.

(b) Whether each of these transactions have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time. (This information is required only in case of transactions exceeding the value of five lakh rupees in respect of any party and in any one of financial year).

According the information and explanations given to us, where each of such transaction exceeding Rupees five lacs in value have been made at the price which are prima facie reasonable having regard to the prevailing market price at the relevant time.

(vi) In case the company has accepted deposits from the public, whether the directives issued by the Reserve Bank of India and the provisions of sections 58A and 58AA of the rules framed there under, where applicable, have been complied with. If not the nature of contravention should be stated, if an order has been passed by the Company Law Board whether the same has been complied with or not.

The company has not accepted any deposits from the public within the meaning of Section 58A and 58AA of the Companies Act, 1956, read with the directives issued by the Reserve Bank of India.

(vii) In the case of listed companies and/or other A firm of Chartered Accountant has been appointed companies having a paid-up capital and reserve exceeding Rs. 50 lakh as at the commencement of the financial year concerned, having an average annual turnover exceeding five crore rupees for the period of three consecutive financial year immediately preceding the internal audit system commensurate with its size and nature of its business.

as Internal Auditors of the company. In our opinion there is scope for Improvement. Internal audit must take initiative in helping the management to take appropriate measures considering all aspects which are reported by them. Internal Audit system commensurate with the size and nature of its business.

(viii) Where maintenance of cost records has been prescribed by the Central Government under clause (d) of sub-section (1) of Section 209 of the Act, whether such accounts and records have been made and maintained.

Maintenance of cost records under Section 209(1) (d) of the Companies Act, 1956 is not applicable to this Company.

(ix) (a) Is the company regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees" State Insurance, income tax, sales tax, wealth tax, custom duty, excise duty cess and any other statutory dues with the appropriate authorities and if not, the extent of the arrears of outstanding statutory dues as at the last day of the financial year concerned for a period more than six months from the date they became payable, shall be indicated by the auditor.

According to the information and explanation made available to us. undisputed statutory dues including Provident Fund, Income Tax. Sales Tax. Royalty etc are deposited on regular basis to the appropriate authorities. As explained there is no undisputed amount payable in respect of the aforesaid dues as on 31st March 2011 outstanding for a period of more than six months from the date they had become payable.

(b) In case dues of sales tax/income tax/ custom tax/wealth tax / excise duty/ cess have not been deposited on account of any dispute, then the amounts involved and the forum where dispute is pending may please be mentioned.

(A mere representation to the department shall not constitute the disputes.)

According to the information and explanations made available to us, details of disputes dues as on 31.03.2011 are as follows :

Name of Nature of Forum Amount Statue Dues where dispute (Rs.) is pending

Orissa VA Sales Tax High court 26,67,117

Central Sales Tax Asstt. 10,43,975 Sales Tax Commissioner

Asstt. 7,72,68,197 Commissioner

Asstt. 50,20,858 Commissioner

Orissa Entry Tax Add. 34,79,287 Entry Tax Commissioner

Asstt. 22,68,182 Commissioner

(x) Whether in case of a company which has been registered for a period not less than five years, its accumulated losses at the end of the financial year are not less than fifty per cent of its net worth and whether it has incurred cash losses in such financial year and in the financial year immediately preceding such financial year also.

There is no accumulated loss.

(xi) Whether the company has defaulted in repayment of dues to a financial institution or bank or debenture holders. If yes, the period and amount of default to be reported.

The Company has not accepted any deposits/ loans from any other financial institutions or debenture holders.

(xii) Whether adequate documents and records are maintained is cases where the company has granted loans and advances on the basis of security by way of pledge of shares, debenture and other securities, if not, the deficiencies to be pointed out.

According to the information and explanations made available to us, no loans or advances have been granted by the Company on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) Whether the provisions of any special statute applicable to chit fund have been duly complied with. In respect of nidhi/mutual benefit fund/societies :

(a) Whether the net owned funds to deposit liability ratio is more than 1.20 as on the date of Balance Sheet.

(b) Whether the company has complied with the prudential norms on income recognition and provisioning against sub-standard / default / loss assets.

(c) Whether the company has adequate procedures for appraisal of credit proposals / requests, assessment of credit need and repayment capacity of the borrowers.

(d) Whether the repayment schedule of various loans granted by nidhi is based on the repayment capacity of the borrower and would be conducive to recovery of the loan amount.

Not Applicable

(xiv) If the company is dealing or trading in shares, securities, debentures and other investments, whether proper records have been maintained of the transactions and contracts and whether timely entries have been made therein; also whether the shares, securities, debentures and other securities have been held by the company in its own

Not Applicable

name except to be extent of the exemption if any, granted under Section 49 of the Act.

(xv) Whether the company has given any guarantee for loans taken by others from bank or financial institutions, the terms and conditions whereof and prejudicial to the interest of the company

No

(xvi) Whether term loans were applied for the purpose for which the loans were obtained.

NIL

(xvii) Whether the funds raised on short term basis have been used for long term investment and vice-versa. If yes, the nature and amount is to be indicated.

NIL

(xviii) Whether the company has made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act and if so, whether the price at which shares have been issued in prejudicial to the interest of the company.

No such allotment has been made.

(xix) Whether securities have been created in respect of debenture issued.

No debenture issued.

(xx) Whether the management has disclosed on the end use of money raised by public issues and the same has been verified.

Not Applicable

(xxi) Whether any fraud on or by the company has been noticed or reported during the year. If yes, the nature and the amount involved is to be indicated.

No fraud was reported by the Management and we have not come across any fraud case during our course of Audit during the year.

For SARMA & CO.

Chartered Accountants

Sd/-

(P. K. Ghosh)

Partner

Place : Kolkata (M. No. 002553)

(FRN. No. 302052E)

Date : 26th July 2011.

Mar 31, 2010

1. We have audited the attached Balance Sheet of The Orissa Minerals Development Company Limited as at 31st March 2010 and also the Profit and Loss Account of the above company for the year ended on that date and annexed thereto and Cash Flow Statement for the period ended on that date.

2. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

3. We have conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform our audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for expressing our opinion on financial statements of the company.

4. As required by the Companies (Auditors report) Order, 2003 called as CARO 2003, vide notification no. GSR 480(E) dated 12th June, 2003, issued by the Central Government of India in terms of sub- section (4A) of Section 227 of the Companies Act, 1956, we enclose in the annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

5. Further to our comments in the annexure referred to above, we report that :

i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit.

ii) 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.

iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account.

iv) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report together with Notes on Accounts (Schedule Ã 18B) and other notes appearing in various schedules and Significant Accounting Policies (Schedule Ã 18A) of the Company comply with the Accounting Standards referred in sub-section (3C) of Section 211 of the Companies Act.

v) On the basis of written declaration received from the Directors which were taken on record by the Board of Directors, none of the Directors of the Company is disqualified from being appointed as a Director in terms of clause (g) of sub-section (1) of Section 274 of the Act.

vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts of the Company together with the Significant Accounting Policies (Schedule Ã 18A) and read with Notes on Accounts (Schedule Ã 18B) particularly to the note No. 17 regarding restructuring expenses Rs.36.19 lacs is not related to normal course of business of the company, the said accounts give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the Accounting Principles generally accepted in India :- (a) in case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2010.

(b) in case of the Profit & Loss Account, of the Profit for the year ended on that date; and

(c) in the case of Cash Flow Statement, of the Cash Flows for the year ended on that date.

COMPANIES (AUDITORS REPORT) ORDER, 2003

QUERIES COMMENTS

(i) (a) Whether the Company is maintaining proper The Company has maintained proper record showing records showings full particulars, including full particulars including quantitative details and quantitative details and situation of fixed situations of fixed assets. assets.

(b) Whether these fixed assets have been The fixed Assets have not been physically verified physically verified by the management at by departmental Head and no discrepancies has been reasonable intervals; whether any material determined by the management. discrepancies were noticed on such verification and if so, whether the same have been properly dealt with in the books of Accounts.

(c) If a substantial part of Fixed Assets have No substantial parts of fixed assets have been been disposed off during the year, whether disposed off during the year. it has affected the going concern.

(ii) (a) Whether physical verification of inventory Physical verification of inventory has been made at has been conducted at reasonable intervals reasonable intervals. by the Management.

(b) Are the procedures of physical verification The procedure and interval of physical verification of of inventory followed by the Management inventory followed by the Management are reasonable and adequate in relation to the reasonable and adequate in relation to the size of size of the company and the nature of its the Company and nature of its business. business? If not, the inadequacies in such procedures should be reported.

(c) Whether the company is maintaining proper The Company maintains proper records of inventory. records of Inventory and whether any The discrepancies noticed on verification between material discrepancies were noticed on the physical stock and book record were not material physical verification and if so, whether the and it has been properly dealt with in the accounts. same have been properly dealt with in the books of accounts.

(iii) (a) Has the company either granted or taken Loan given to associate companies, the Register has loans, secured or unsecured to/from been maintained under Section 301 of the Companies companies, firms or other parties covered Act. Scott and Saxby Rs. 104.42 lacs and KDCL Rs. in the register maintained under section 301 28.77 lacs. of the Act? If so, give the number of partiesand amount involved in the transactions.

(b) Whether the rate of interest and other terms Interest rate and other terms and condition of loan and conditions ofloans given ortaken by are not prejudicial to the interest of the company. the company, secured or unsecured, are prima facie prejudicial to the interest of the company.

(c) Whether payment of the principle amount No payment of Principal and Interest has been made and interest are also regular. during the year.

(d) If overdue amount is more than one lakh, Steps has been taken but no recovery from Associate whether reasonable steps have been taken Companies Scott and Saxby and KDCL. by the company for recovery/ payment of the principal and interest.

(iv) Is there an adequate internal control In our opinion and according to the information and

procedure commensurate with the size of explanation given to us there are adequate internal

the company and the nature of its business, control procedures commensurate with the size of for the purchase of inventory and fixed the company and the nature of the business for the assets and for the sale of goods? Whether purchase of inventory and fixed assets but there is there is a continuing failure to correct major scope of improvement. weaknesses in internal control.

(v) (a) Whether transactions that need to be According to the information and explanations given entered into a register in pursuance of to us, weare of the opinion that the transactions that Section 301 of the Act have been so entered. needed to be entered in to the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) Whether each of these transactions have According to the information and explanations given

been made at prices which are reasonable to us, where each of such transaction exceeding

having regard to the prevailing market prices Rupees five lacs in value have been made at the at the relevant time. price which are prima facie reasonable having regard to the prevailing market price at the relevant time. (This information is required only in case of transactions exceeding the value of five lakh rupees in respect of any party and in any one of financial year).

(vi) In case the company has accepted deposits The company has not accepted any deposits from from the public, whether the directives issued the public withinthe meaning of Section 58A and by the Reserve Bank of India and the 58AA of the Companies Act, 1956, read with the provisions of sections 58A and 58AA of the directives issued by the Reserve Bank of India. rules framed there under, where applicable, have been complied with. If not the nature of contravention should be stated, if an order has been passed by the Company Law Board whether the same has been complied with or not.

(vii) In the case of listed companies and/or other A firm of Chartered Accountant has been appointed companies having a paid-up capital and as Internal Auditors of the company. In our opinion reserve exceeding Rs.50 lakh as at the there is scope for improvement. commencement of the financial year concerned, having an average annual turnover exceeding five crore rupees for the period of three consecutive financial year immediately preceding the internal audit system commensurate with its size and nature of its business.

(viii) Where maintenance of cost records has Maintenance of cost records under Section 209(1)

been prescribed by the Central Government (d) of the Companies Act, 1956 is not applicable to under clause (d) of sub-section (1) of Section this Company. 209 of the Act, whether such accounts and records have been made and maintained.

(ix) (a) Is the company regular in depositing According to the information and explanation made

undisputed statutory dues including available to us, undisputed statutory dues including Provident Fund, Investor Education and Provident Fund, Income Tax, Sales Tax, Royalty etc.

Protection Fund, Employees State are deposited on regular basis to the appropriate

Insurance, income tax, sales tax, wealth tax, authorities. As explained there is no undisputed

custom duty, excise duty cess and any other amount payable in respect of the aforesaid dues as

statutory dues with the appropriate on 31st March 2010 outstanding for a period of more

authorities and if not, the extent of the arrears than six months from the date they had become of outstanding statutory dues as at the last payable. day of the financial year concerned for a period more than six months from the date they became payable, shall be indicated by the auditor.

(b) In case dues of sales tax/income tax/ custom According to the information and explanations made

tax/ wealth tax / excise duty/ cess have not available to us, details of disputes dues as on

been deposited on account of any dispute, 31.03.2010 are as follows : then the amounts involved and the forum Name of Nature of Forum Amount where dispute is pending may please be Statue Dues where dispute (Rs.) mentioned. is pending

(A mere representation to the department Orissa VAT Sales Tax High court 26,67,117

shall not constitute the disputes.) Central Sales Tax Asstt. 10,43,975 Sales Tax Commissioner

Asstt. 7,72,68,197

Commissioner

Asstt. 50,20,858

Commissioner

Orissa Entry Tax Add. 34,79,287 Entry Tax Commissioner

Asstt. 22,68,182

Commissioner

(x) Whether in case of a company which has There is no accumulated loss. been registered for a period not less than five years, its accumulated losses at the end of the financial year are not less than fifty per cent of its net worth and whether it has incurred cash losses in such financial year and in the financial year immediately preceding such financial year also.

(xi) Whether the company has defaulted in The Company has not accepted any deposits/ loans

repayment of dues to a financial institution from banks or any other financial institutions or or bank or debenture holders. If yes, the debenture holders. The company had repaid the bank period and amount of default to be reported. loan.

(xii) Whether adequate documents and records According to the information and explanations made are maintained in cases where the company available to us, no loans or advances have been has granted loans and advances on the granted by the Company on the basis of security by basis of security by way of pledge of shares, way of pledge of shares, debentures and other debenture and other securities, if not, the securities. deficiencies to be pointed out.

(xiii) Whether the provisions of any special statute Not Applicable applicable to chit fund have been duly complied with. In respect of nidhi/mutual benefit fund/societies :

(a) Whether the net owned funds to deposit liability ratio is more than 1.20 as on the date of Balance Sheet.

(b) Whether the company has complied with the prudential norms on income recognition and provisioning against sub -standard / default / loss assets.

(c) Whether the company has adequate procedures for appraisal of credit proposals / requests, assessment of credit need and repayment capacity of the borrowers.

(d) Whether the repayment schedule of various loans granted by nidhi is based on the repayment capacity of the borrower and would be conducive to recovery of the loan amount.

(xiv) If the company is dealing or trading in shares, Not Applicable securities, debentures and other investments, whether proper records have been maintained of the transactions and contracts and whether timely entries have been made therein; also whether the shares, securities, debentures and other securities have been held by the company in its own name except to be extent of the exemption if any, granted under Section 49 of the Act.

(xv) Whether the company has given any guarantee No for loans taken by others from bank or financial institutions, the terms and conditions whereof and prejudicial to the interest of the company

(xvi) Whether term loans were applied for the NIL purpose for which the loans were obtained.

(xvii) Whether the funds raised on short term basis NIL have been used for long term investment and vice-versa. If yes, the nature and amount is to be indicated.

(xviii) Whether the company has made any No such allotment has been made. preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act and if so, whether the price at which shares have been issued in prejudicial to the interest of the company.

(xix) Whether securities have been created in No debenture issued. respect of debenture issued.

(xx) Whether the management has disclosed on Not Applicable the end use of money raised by public issues and the same has been verified.

(xxi) Whether any fraud on or by the company No fraud was reported by the Management and we

has been noticed or reported during the year. have not come across any fraud case during our If yes, the nature and the amount involved course of Audit during the year. is to be indicated.

For SARMA & CO. Chartered Accountants

Sd/-

(P. K. Ghosh)

Partner Place : Kolkata (M. No. 002553)

Date : 24th May 2010.

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