Aanchal Ispat Ltd Auditor Reports

The Companys Management is responsible for the preparation of the other information. The other
information comprises the information included in the Management Discussion and Analysis, Boards
Report including Annexure to Boards Report, Business Responsibility Report, Corporate Governance
and Shareholders Information, but does not include the Ind AS financial statements and our auditors
report thereon.

Our opinion on the Ind AS 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 Ind AS financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
Ind AS financial statements or our knowledge obtained during the course of our audit or otherwise
appears to be materially misstated.

We have not reviewed the other information and accordingly, we are not able to report in this regard.

Managements Responsibility and Those charged with Governance for the Financial Statement

The Management is responsible for the matters stated in Section 134(5) of the Act with respect to the
preparation and presentation of the Ind AS financial statements that give a true and fair view of the
financial position, financial performance including other comprehensive income, cash flows and
changes in equity of the Company in accordance with the accounting principles generally accepted in
India, including the Indian Accounting Standards prescribed under Section 133 of the Act read with
relevant rules issued there under. 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 Ind AS financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.

In preparing the IND AS financial statement, management is responsible for assessing the Companys
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 Management is responsible for overseeing the Companys financial reporting process.

Our objectives are to obtain reasonable assurance about whether the IND AS financial statement as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditors 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 IND AS financial statement.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the IND AS financial statement,
whether due to fraud or error, design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies
Act, 2013, 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 managements 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 Companys ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditors report to the related disclosures in the IND AS financial statement 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 auditors 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 IND AS financial statement,
including the disclosures, and whether the IND AS financial statement represent the underlying
transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned

scope and timing of the audit and significant audit findings, including any significant deficiencies

in internal control that we identify during our audit.

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 Ind AS
financial statements of the current period and are therefore the key audit matters.

From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the IND AS financial statement of the current period
and are therefore the key audit matters. We describe these matters in our auditors 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.

1. As required by the Companies (Auditors Report) Order, 2020 ("the Order") issued by the Central
Government of India in terms of sub-section (11) of section 143 of the Companies Act 2013 and
except for the effects, if any, of the matters described in the basis for opinion paragraph. We give
in the Annexure A on the matters specified in paragraph 3 and 4 of the order.

2. 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 appears from our examination of those books except for the possible effects of the matters
described in basis of opinion section above and the matters stated in the paragraph (j)(vi) below
on reporting under Rule11(g) of the Companies (Audit and Auditors) Rules, 2014.

c. The Balance Sheet and 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 possible effects of the matters described in basis of opinion section above, in our
opinion, the aforesaid financial statements comply with the Ind AS Specified under Section 133
of the Act.

e. On the basis of written representations received from the directors as on 31 March, 2025, taken
on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2025,
from being appointed as a director in terms of Section 164(2) of the Act. However, the Honble
National Company Law Tribunal (NCLT), Kolkata Bench, vide its order dated September 12,
2023, admitted the Company under the Corporate Insolvency Resolution Process (CIRP),
pursuant to which the existing Board of Directors was suspended, and the powers vested in
them were transferred to the Resolution Professional (RP) for managing the affairs of the
Company. The RP managed the affairs of the Company until March 27, 2025. A new Board
was duly constituted with effect from April 10, 2025, and thereafter took over the responsibility
of managing the Companys affairs.

f. The modifications relating to the maintenance of accounts and other matters connected
therewith are as stated in the paragraph 2(b) above on reporting under Section 143(3)(b) of the
Act and paragraph (j)(vi) below on reporting under Rule 11(g) of the Companies (Audit and
Auditors) Rules, 2014.

g. With respect to the adequacy of the internal financial controls over financial reporting of the
company and the operating effectiveness of such controls, refer to our separate Report in
"Annexure B".

h. With respect to the other matters to be included in the Auditors Report in accordance with the
requirements of section 197(16) of the Act, as amended. In our opinion and according to the
information and explanations given to us, no remuneration has been paid by the Company to its
directors during the year. Accordingly, the provisions of Section 197 of the Companies Act,
2013 are not applicable.

i. The matters described in the basis for opinion section above and material uncertainty related to
going concern section above, in our opinion, may have an adverse effect on the functioning of
the company.

j. With respect to the other matters to be included in the Auditors 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:

i. As The Resolution plan is approved by the Honble NCLT Kolkata Bench on 27.03.2025,
The Company does not have any pending litigation which would impact on its financial
position in its standalone financial statement.;

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

iii. There is no amount required to be transferred, to the Investor Education and Protection
Fund by the Company.

iv. a) The management has represented that, to the best of its knowledge and belief, no funds
(which are material either individually or in the aggregate) have been advanced or loaned
or invested (either from the borrowed funds or share premium or any other sources or
kind of funds) by the company to or in any other person or entity, including foreign entity
("Intermediaries"), with the understanding, whether recorded in writing or otherwise that
the Intermediary shall, whether, directly or indirectly lend or invest in other persons or
entities identified in any manners whatsoever by or on behalf of the Company ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries;

b) The management has represented, that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including foreign entity ("Funding Parties"),
with the understanding , whether recorded in writing or otherwise, that the company shall,
whether, directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Funding Party ("Ultimate beneficiaries") or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

c) Based on the audit procedures that have been considered reasonable and appropriate
in the circumstances, nothing has come to our notice that has caused us to believe that
the representations under sub-clause one (i) and (ii) of Rule 11(e), as provided under (a)
and (b) above, contain any material misstatement.

v. No dividend is declared or paid during the year.

vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of
account using accounting software which has a feature of recording audit trail (edit log)
facility is applicable to the Company with effect from April 1, 2023, and accordingly,
reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not
applicable for the financial year ended 31 March 2025.

The Annexure A referred to in paragraph 1 of the Our Report of even date to the members of
M/s AANCHAL ISPAT LIMITED on the accounts of the company for the year ended 31^st March,
2025.

On the basis of such checks as we considered appropriate and according to the information and
explanation given to us during the course of our audit, we report that:

1. (a) (i)The Company has maintained proper records showing full particulars including
quantitative details and situation of Property, Plant and Equipments and relevant details of
right of use assets.

(ii) The Company is not having any intangible assets. Therefore, the provision of Clause is
not Applicable to the company.

(b) According to the information and explanations given to us and based on the records
examined, the Company has a programme for the physical verification of Property, Plant and
Equipment, which in our opinion is reasonable having regard to the size of the Company and
the nature of its assets. As informed to us, the said physical verification was conducted by the
management during the year, and no material discrepancies were reported. We have not
physically verified the assets ourselves nor visited any of the locations. ?

(c) Based upon the audit procedure performed and according to the records of the company, the
title deeds of all the immovable properties (other than properties where the company is the
lessee, and the lease agreements are duly executed in favor of the lessee) are held in the old
name of the company. (Title Deed is in the Name of Vinita Projects (P) Ltd which is the old
name of Aanchal Ispat Ltd. CIN No-U27106WB1996PLC076866)

(d) According to the information and explanations given to us and based on the audit procedures
conducted by us, the company has not revalued its Property, Plant and Equipment during the
year.

(e) According to the information and explanation given to us, no proceedings have been initiated
during the year or are pending against the Company as at March 31, 2025 for holding any
benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made
thereunder.

We further report that, during the year, the Company has written off inventory amounting to
^442.05 lakhs pursuant to the resolution plan approved by the Honble National Company Law
Tribunal (NCLT) under the Insolvency and Bankruptcy Code, 2016. The write-off has been
made in accordance with the terms of the approved resolution plan and has been properly
accounted for in the books of account.

As informed by the management, a stock audit was conducted on May 27-28, 2025, by an
independent auditor appointed by the new management. The report yet to be finalized, however
draft report indicates that post-resolution inventory records as of that date are generally
consistent with the books of account after written of the inventory. However, this subsequent
development does not affect the accounting treatment already applied as of 31 March 2025.

(b) The Company had been sanctioned working capital limits aggregating to ^82.69 crores from
a bank, secured by current assets. However, pursuant to the resolution plan approved by the
Honble National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code,
2016, the sanctioned facility was modified and the liability towards the bank was reduced to
^47.25 crores.

Based on the information and explanations provided to us, the Company is no longer required
to submit quarterly returns or statements to the bank post-implementation of the resolution plan.

In view of the above, we are unable to comment on the agreement of quarterly
returns/statements with the books of account.

3. The company has not made investments in companies, firms, Limited Liability Partnerships
and not granted unsecured loans to other parties, during the year, in respect of which:

(a) The Company has not provided any loans or advances in the nature of loans or stood
guarantee, or provided security to any other entity during the year, and hence reporting
under clause 3(iii)(a) of the Order is not applicable.

(b) The company has not made any investments and hence reporting under clause 3(iii)(b)
of the Order is not applicable.

(c) The Company has not provided any loans or advances in the nature of loans hence
reporting with respect to repayment of principal and regular payment of interest is not
applicable.

(d) The Company has not provided any loans or advances in the nature of loans hence
reporting with respect to overdue amounts and steps taken by the company for the
recovery is not applicable.

(e) There were no loan granted by the Company which has fallen due during the year and
has been renewed or extended or fresh loans granted to settle the over dues of existing
loans given to the same parties.

(f) The Company has not granted any loans or advances in the nature of loans either
repayable on demand or without specifying any terms or period of repayment during
the year. Hence, reporting under clause 3(iii) (f) is not applicable.

4. The company has compiled with the provisions of Section 185 and 186 of the companies Act
2013 in respect of loans granted, investments made and guarantees and securities provided as
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. We have broadly reviewed the cost records maintained by the Company pursuant to the
Companies (Cost Records and Audit) Rules, 2014, as amended, prescribed by the Central
Government under Section 148(1) of the Companies Act, 2013, and are of the opinion that
prima facie, the prescribed cost records have been made and maintained. However, we have not
carried out a detailed examination of such cost records with a view to determine whether they
are accurate or complete.

As informed to us, the cost audit for the year is under progress, and the Cost Audit Report has
not been made available to us as on the date of this report.

7. a) According to the information and explanations given to us, the Company is generally regular
in depositing undisputed statutory dues, including provident fund, employees state insurance,
sales tax, income tax, wealth tax, service tax, duty of customs, duty of excise, value added tax,
cess and other statutory dues, as applicable, and no statutory dues which have remained

outstanding as at the last day of the financial year concerned for a period of more than six
months from the date they became payable with the appropriate authorities.

b) According to the information and explanations given to us and the records examined by us,
during the year, the Company was under the Corporate Insolvency Resolution Process (CIRP)
and the resolution plan was approved by the Honble National Company Law Tribunal (NCLT)
under the Insolvency and Bankruptcy Code, 2016. Pursuant to the terms of the approved
resolution plan, all the disputed statutory dues have been extinguished, and accordingly, there
are no longer disputed statutory dues by the Company as on the balance sheet date.

8. As explained and informed us there was no transactions unrecorded income that have been
surrendered or disclosed as income during the year in the tax assessment under the income Tax
Act, 1961 (43 of 1961).

9. a) According to the information and explanations given to us and based on our examination of
the records, the company had defaulted in repayment of loans and interest to banks and financial
institutions in the past. The total outstanding liability prior to the resolution process was ?84.11
crores. However, such defaults have been settled pursuant to a resolution plan approved by the
Honble National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code,
2016, pursuant to which the liability was settled at ^47.25 crores. As on the balance sheet date,
the company is in compliance with the revised terms of repayment as specified in the approved
resolution plan.

b) According to the information and explanations given to us, including management
representations, and based on our audit procedures, nothing has come to our attention that
causes us to believe that the Company has been declared a willful defaulter by any bank,
financial institution or any other lender during the year. However, we have not received
independent confirmation from banks or financial institutions in this regard.

c) In our opinion and according to the information and explanation given to us, no term loans
were taken/ raised by the company.

d) In our opinion and according to the information and explanation given to us, funds raised by
the company on short term basis have not been utilized for long term purpose.

e) According to the information and explanations given to us and on an overall examination of
the financial statements of the company, the Company has not taken any funds from any entity
or person on account of or to meet the obligation of its subsidiaries.

f) According to the information and explanations given to us, the company has not raised any
loans during the year on the pledge of securities held in the subsidiaries.

10. a) The company has not raised moneys by way of initial public offer or further public offer
(including debt instruments) during the year, Hence, reporting under clause 3(x)(a) of the order
is not applicable.

b) The company has not made any preferential allotment of share or fully or partial convertible
debentures during the year. Hence, reporting under clause 3(x)(b) of the order is not applicable

11. a) No fraud by the company and no material fraud on the company has been noticed or reported
during the year.

b) No report under sub-section (12) of section 143 of the Companies Act has been filed in
form ADT-4 as prescribed under rule 13 of the Companies Rules 2014 with the central
government, during the year and up to the date of this report.

c) As represented to us by the management, there are no whistle blower complaints received by
the company during the year.

12. In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 3 (xii)
of the Order are not applicable to the Company.

13. In our opinion, and according to the information and explanation given to us, all transactions
with the related parties are in compliance with section 177 and 188 of Companies Act, 2013
and the details have been disclosed in the Financial Statements as required by the applicable
accounting standards.

14. a) In our opinion and according to the information and explanations given to us, the Company
is required to have an internal audit system under Section 138 of the Companies Act, 2013. The
Company has represented to us that such an internal audit system exists and is commensurate
with the size and nature of its business.

b) As informed to us, the Company has an internal audit system, and internal audit was conducted
during the year. As per the internal audit report received, the internal auditors have given
emphasis on introducing systems and procedures to enable the company to carry on operations
in a smooth and effective way with better internal control systems.

15. According to the information and explanations given to us, the Company has entered into non-
cash transactions with a sister concern by way of book adjustments, which involve persons
connected with the directors of the Company. Based on the audit procedures performed and the
review of relevant documents, such transactions appear to be in compliance with the provisions
of Section 192 of the Companies Act, 2013.

16. a) 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 a), b) c) of the Order are not
applicable to the Company and hence not commented upon.

b) As informed to us there is no core Investment Company within the group, hence provisions
of the clause not applicable.

17. The company have incurred cash loss during the year and also in immediately preceding
financial year.

18. There have been no resignations of the statutory auditors of the company during the year.

19. On the basis of the financial ratios, ageing and expected dates of realization of financial assets
and payment of financial liabilities, other information accompanying the financial statements
and our knowledge of the Board of Directors and Management plans and based on our
examination of the evidence supporting the assumptions, we draw attention to the Ind As
financial statement which indicate that company had not been able to make the repayment of
borrowing availed from the bank and account has become NPA in the past financial years.
However, during the financial year, Honble NCLT approve the Resolution Plan submitted by
Resolution Applicant for settlement of various liabilities including Bank liabilities and revival
the company. Therefore, material uncertainty does not exist as on the date of audit report. We,
however, state that this is not an assurance as to the future viability of the Company. We further
state that our reporting is based on the facts up to the date of the audit report and we neither give
any guarantee nor any assurance that all remaining liabilities falling due within a period of one
year from the balance sheet date, will get discharged by the Company as and when they fall due.

20. The provisions of Section 135 towards corporate social responsibility are not applicable on the
company. Accordingly, the provisions of clause 3(xx) of the Order is not applicable.

21. The reporting under clause (xxi) is not applicable in respect of audit of standalone financial
statements of the Company. Accordingly, no comment has been included in respect of said

"Annexure B" to the Independent Auditors Report of even date on the Financial Statements of M/s
AANCHAL ISPAT LIMITED

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

We have audited the internal financial controls over financial reporting of AANCHAL ISPAT
LIMITED ("the Company") as of March 31, 2025 in conjunction with our audit of the Ind AS financial
statements of the Company for the year ended on that date.

The Companys management is responsible for establishing and maintaining internal financial controls
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 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 companys 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.

Our responsibility is to express an opinion on the Companys internal financial controls over financial
reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit
of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards 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 maintained and if such controls operated effectively in all
material respects.

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 included obtaining an understanding of internal financial
controls over financial reporting, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the assessed risk. The
procedures selected depend on the auditors judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error.

Because of the matters described in our main paragraphs and notes to the accounts, the Company
needs to further strengthen its internal financial controls system over financial reporting of the
Company

A companys 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
statements for external purposes in accordance with generally accepted accounting principles. A
companys internal financial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable assurance that

transactions are recorded as necessary to permit preparation of financial statements in accordance with
generally accepted accounting principles, and that receipts and expenditures of the company are being
made only in accordance with authorizations of management and directors of the company; and (3)
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use,
or disposition of the companys assets that could have a material effect on the financial statements.

Because of the inherent limitations of internal financial controls over financial reporting, including the
possibility of collusion or improper management override of controls, material misstatements due to
error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial
controls 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.

In our opinion, the Company has, in all material respects, an adequate internal financial controls system
over financial reporting and such internal financial controls over financial reporting were operating
effectively as at March 31, 2025, 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 issued by the Institute
of Chartered Accountants of India"

We bring to the attention of the users that the audit of the internal financial control system over financial
reporting and the operating effectiveness of such internal financial controls over financial reporting has
been performed remotely in the conditions more fully explained in the Emphasis of Matter Paragraph
of our Independent Audit Report on the audit of the Financial Statements.

Our opinion on the internal financial control system over financial reporting is not modified in respect
of the above.