Aanchal Ispat Ltd Auditor Reports

To the Members of

AANCHAL ISPAT LIMITED

Report on the Audit of the Standalone Financial Statements

We have audited the accompanying standalone financial statement of AANCHAL ISPAT LIMITED ("The Company"), which comprises the Balance Sheet as at March 31, 2024, and the Statement of Profit and Loss and the statement of cash flows for the year ended on that date, and a summary of significant accounting policies and other explanatory information.

Opinion

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 Company 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 of the state of affairs of the Company as at March 31, 2024; and of the loss, its cash flows for the year ended on that date;

Basis for opinion

We conducted our audit in accordance with the standards on auditing (SAs) specified under section 143 (10) of the Act. Our responsibilities under those Standards are further described in the auditors responsibilities for the audit of the Standalone financial statement 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 together with the ethical requirements that are relevant to our audit of the Standalone financial statement under the provisions of the Act and the rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs code of ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements except below:

Basis for Qualified opinion

In the Financial Statements where in management has considered outstanding trade receivables and advance to suppliers of Rs. 5649.32 lakhs and Rs 265.45 lakhs as at the balance sheet date. Out of them Rs 3967.54 Lakhs and Rs 121.00 respectively for period more than two year. Due to confirmations being not available and pending reconciliation adjustments we are unable to comment on their recoverability of these receivable advance and its consequential effect on these financial statements. This Matter was also qualified in report on the financial statements for the year ended March 2021, March 2022 and March 2023.However management are trying their best to recover such outstanding.

Emphasis of Matter

a) We draw attention to Note No. 35 of the accompanying standalone result, where CA Santanu Brahma (IP Registration No: IBBI/IPA-01/IP-P01482/2018-19/12251) is appointed as a Resolution Professional ("RP") of the company in place of Mr. Sriram Mittal and the same has been also approved by Honble NCLT Kolkata its vide order dated 17 th Nov 2023. Presently, the powers of the Board of Directors of the Company, has been stands suspended and such powers are now vested with the RP in order to manage the affairs of the company.

b) As per Ind AS-1 "Presentation of Financial statements" wherein it has been explained by the management the financial statement have been prepared on going concern basis. The company has substantial amount of accumulated loss of past year and huge outstanding of statuary liability and 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 which raises significant concern over going concern ability of the company.

c) We draw attention to Note No. 33^th of the accompanying standalone results, the company had defaulted in repayment of principal and interest payments to Karur Vysa Bank in respect of its borrowings as on 1^st October 2022 and the default continues as on 31^st march 2024.

Further since the company is under CIRP, provision for interest have not been made from 12.09.2023 i.e. date of CIRP.

d) We draw attention to Note No. 36^th of the statement wherein three Prospective Resolution Applicants(PRAs) has shown their interest for acquiring the company and deposited the EMD for the same and their submitted Resolution Plans are pending before the Committee of Creditors(CoC) for its approvals.

e) We draw attention to Note No. 37^th of the statement wherein the position of whole time company secretary were vacant in the company and such vacancy was not yet filled by the company. It has also been informed that CFO of the company resign with effect from 15/11/2023.The same is considered in 3^rd CoC meeting. This matter is still pending for approval by CoC.

f) Based upon the audit procedure performed and according to the information and explanation given to us, that during CIRP, whole of the long term borrowings as on 31^st march 2024 has been classified as current borrowings.

g) We draw attention to Note No. 38^th of the statement wherein the company has made substantial purchase and sale with its sister concern Aanchal International Limited at arms length price.

h) We draw attention that during CIRP. The impact of all the claims admitted by the Resolution Professional and the effect of the same has not been given in the Financial Statements of corporate debtor.

i) It has been informed that the there is a difference in amount of class wise inventories since it is adjusted as per the instructions of stores manager.

Our conclusion is not modified in respect of above matters.

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 the matter described below to be the key audit matter to be communicated in our report.

Related party transactions

See note 26 to the standalone financial statements

The key audit matter	How the matter was addressed in our audit
We identified the accuracy and completeness of disclosure of related party transactions as set out in respective notes to the standalone Ind AS financial statements as a key audit matter due to:	Our procedures in relation to the disclosure of related party transactions included:
The significance of transactions with related parties during the year ended March 31, 2024.	1. Obtaining an understanding of the Companys policies and procedures in respect of the capturing of related party transactions and how management ensures all transactions and balances with related parties have been disclosed in the standalone Ind AS financial statements.
	2. Obtaining an understanding of the Companys policies and procedures in respect of evaluating arms-length pricing and approval process by the audit committee and the board of directors.
	3. Agreeing the amounts disclosed to underlying documentation and reading relevant agreements, evaluation of arms –length, on as sample basis, as part of our evaluation of the disclosure.

Tax litigations – provisions and contingencies

See note 27 to the standalone financial statements

The key audit matter	How the matter was addressed in our audit
The Company is involved in several ongoing direct and indirect tax litigations	We have applied the following audit procedures in this area, among others to obtain sufficient appropriate audit evidence:
A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation that may probably not require an outflow of resources. When there is a possible or a present obligation where the likelihood of outflow of resources is remote, no provision or disclosure is made.	1. We tested the effectiveness of key controls around the recording and assessment of tax provisions and contingent liabilities.
We have identified tax litigations, provisions and contingencies as a key audit matter because it requires the management to make judgements and estimates in relation to the exposure arising out of litigations. The key judgement lies in the estimation of provisions where they may differ from the future obligations. The Company operates under several tax laws and some of these have a significant impact on the financial statements of the Company.	2. We assessed the value of the provisions and contingent liabilities in light of the nature of the exposures, applicable regulations and related correspondences with the authorities.
	3. We assessed the relevant historical and recent judgments passed by the court authorities.
	4. Obtained Managements assessment of the open cases and compared to assess the reasonableness of the provision or contingency.

Information other than the financial statements and auditors report thereon

The Companys board of directors is responsible for the preparation of the other information. The other information comprises the information included in the Boards Report including Annexures to Boards Report, Business Responsibility Report but does not include the IND AS financial statements and our auditors report thereon. Our opinion on the IND AS financial statement 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 statement, 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 during the course of our audit or otherwise appears to be materially misstated.

Managements Responsibility and Those charged with Governance for the Financial Statement

The Companys Board of Directors is responsible for the matters 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 Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 internal financial control, 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.

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 board of directors are also responsible for overseeing the Companys financial reporting process.

Auditors Responsibility for the Audit of the Financial Statements

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 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.

Report on the other Legal and regulatory Requirements

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, We give in the Annexure A on the matters specified in paragraph 3 & 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, 2024, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2024, from being appointed as a director in terms of Section 164(2) of the Act.

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 to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.

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. The company has disclosed the impact of pending litigation on its financial position in its standalone financial statement.(Refer Note No 27 to the financial statements )

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

iii. There are 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. The reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is applicable from

1 April 2023. Based on our examination which included test checks, except for the instances mentioned below ,the Company has used accounting softwares for maintaining its books of account, which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the respective software:

The feature of recording audit trail (edit log) facility was not enabled at the application layer of the accounting softwares relating to revenue, trade receivables and general ledger for the period 1 April 2023 to 10 August 2023.Further, for the periods where audit trail (edit log) facility was enabled and operated throughout the year for the respective accounting software, we did not come across any instance of the audit trail feature being tampered with.

	For Rajesh Jalan & Associates
	Chartered Accountants
	(Firm Registration No. : 326370E)
	SD/-
	(Rajesh Jalan)
Place : Kolkata	Partner
Date : 30/05/2024	(ICAI UDIN: 24065792BKEXZD7899)

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, 2024.

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, property, plant and equipments have been physically verified by the management in a phased periodical manner which in our opinion is reasonable having regards to the size of the company and nature of its assets. No material discrepancies were noticed on such verification.

(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) The Company has not revalued any of its Property, Plant and Equipment (including right-of-use assets) and intangible assets 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, 2024 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

2) (a) The management has conducted physical verification of inventory at reasonable intervals during the year, except for inventory lying with third parties. In our opinion, the coverage and procedure of such verification by the management is appropriate and no discrepancies of 10% or more in the aggregate for each class of inventory were noticed. In respect of inventory lying with third parties, these have substantially been confirmed by the third parties.

(b) The company had sanctioned working capital limits of Rs 82.69 crores, in aggregate, from bank on the basis of security of current assets. According to the information and explanation given to us, the Company has defaulted in repayment of principal and interest payments from October 2022 and the company has not filled any quarterly statement with the bank. So, we are unable to comment on that.

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 relating to its products pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under Section 148(1) of the Act, and are of the opinion that prima facie the prescribed Cost Records have been made and maintained. We have, however, not made a detailed examination of the cost record with a view to determine whether they are accurate or complete.

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 except as below:

Nature of payment	Amount	Month of Payment	Due date	Remarks
PF	62156.00	April 2023	15/05/2023	Paid on April 2024
PF	61498.00	May 2023	15/06/2023	Paid on April 2024
PF	60318.00	June 2023	15/07/2023	Paid on April 2024
PF	67149.00	July 2023	15/08/2023	Paid on April 2024
PF	63493.00	August 2023	15/09/2023	Paid on April 2024
PF	122590.00	September 2023	15/10/2023	Paid on April 2024
ESI	23707.00	April 2023	15/05/2023	Paid on April 2024
ESI	23432.00	May 2023	15/06/2023	Paid on April 2024
ESI	22834.00	June 2023	15/07/2023	Paid on April 2024
ESI	26080.00	July 2023	15/08/2023	Paid on April 2024
ESI	24263.00	August 2023	15/09/2023	Paid on April 2024
ESI	26718.00	October 2023	15/10/2023	Paid on April 2024
TDS	42028.21	March 2017	07/04/2018	Pending
TDS	32000.00	November 2018	07/12/2018	Pending
TDS	32000.00	December 2018	07/01/2019	Pending
TDS	99000.00	March 2019	07/04/2020	Pending
TDS	126000.00	March 2018	07/04/2018	Pending
TDS	8486.50	August 2018	07/09/2018	Pending
TDS	12200.00	September 2018	07/10/2018	Pending
TDS	20768.00	October 2018	07/11/2018	Pending
TDS	5468.00	November 2018	07/12/2018	Pending
TDS	10000.00	December 2018	07/01/2019	Pending
TDS	25000.00	October 2018	07/11/2018	Pending
TDS	25000.00	November 2018	07/12/2018	Pending
TDS	50000.00	December 2018	07/01/2019	Pending
TDS	52000.00	January 2019	07/02/2019	Pending
TDS	2000.00	February 2019	07/03/2019	Pending
TDS	45230.00	March 2019	07/04/2019	Pending

b) The particulars of dues of sales tax, income tax, wealth tax, service tax, duty of customs, duty of excise, value added tax and cess as applicable as at 31st March 2024 which have not been deposited on account of a dispute are as follows –

Name of the Statute	Nature of Dues	Amount Involved (Rs. In Lakhs)	Period to which the amount relates	Forum where Dispute is Pending
The Central Excise Act, 1944	Excise Duty	Rs. 164.81 Lakhs	FY 2007 - 08	Customs & Central Excise, Service Tax Tribunal
Income Tax Act, 1961	Income Tax	Rs. 601.90 lakhs	FY 2010 - 11	CIT (A)- 1, Kolkata
Income Tax Act, 1961	Income Tax	Rs.173.42 Lakhs	FY 2011 - 12	CIT (A)- 1, Kolkata
Income Tax Act, 1961	Income Tax	Rs. 74.86 Lakhs	FY 2012 - 13	CIT(A)-1, Kolkata
Income Tax Act, 1961	Income Tax	Rs. 18.10 Lakhs	FY 2013 - 14	CIT (A)- 1, Kolkata
Income Tax Act, 1961	Income Tax	Rs. 43.83 Lakhs	FY 2014 - 15	CIT (A)- 1, Kolkata
Income Tax Act, 1961	Income Tax	Rs.12.25 Lakhs	FY 2015 - 16	CIT (A)- 1, Kolkata
Income Tax Act, 1961	Income Tax	Rs. 1.79 Lakhs	FY 2016 - 17	CIT (A)- 1, Kolkata
Income Tax Act, 1961	Income Tax	Rs.72.84 Lakhs	FY 2017 - 18	CIT(A)-1, Kolkata
West Bengal Value Added Tax Act, 2003(Transfer to SOD Scheme)	VAT	Rs. 252.57 Lakhs	FY 2012 - 13	Sr Joint Commissioner, Howrah Circle

NOTE: It is important to note that the company is currently under Corporate Insolvency Resolution Process (CIRP).

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 (43of 1961).

9. a) According to the information and explanations given to us, the company has defaulted in repayment of its loan and interest payments to the bank as below:

Name of Lender	Principle	Interest	Period of Continuing Default Start Month
Karur Vysya Bank	339.11	246.51	Oct 2022

b) According to the information and explanations given to us including representations received from the management of the company, and on the basis of our audit procedures, we report that the company has not declared a willful defaulter by any bank or financial or other lender.

c) In our opinion and according to the information and explanation given to us, the term loan taken by the company have been applied for the purpose for which they were raised

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 has an internal audit system as required under section 138 of the Act which is Commensurate with the size and nature of its business.

b) We have considered the reports issued by the internal auditors of the company till date for the period under audit.

15. In our opinion during the year the Company has not entered into any non-cash transactions with its Directors or persons connected with its directors and hence provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.

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 has 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 has not been able to make the repayment of borrowing availed from the bank and account has become NPA. Further as on 12.09.2023 Company have moved to NCLT by its one of the creditors and still under CIRP as on the date of this audit report. Therefore, material uncertainty may exists as on the date of audit report which raises significant concern over going concern ability of the company. However the Resolution Professional as on date is undertaking and will endeavor to take all the possible steps to run the company as a going concern. 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 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 clause under this report.

	For Rajesh Jalan & Associates
	Chartered Accountants
	(Firm Registration No. : 326370E)
	SD/-
	(Rajesh Jalan)
Place : Kolkata	Partner
Date : 30/05/2024	(ICAI UDIN: 24065792BKEXZD7899)

"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, 2024 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

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.

Auditors Responsibility

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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys internal financial controls system over financial reporting except note given in Audit Report in opinion paragraph for Sundry debtors and advance.

Meaning of Internal Financial Controls over Financial Reporting

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.

Inherent Limitations of Internal Financial Controls over Financial Reporting

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.

Basis for Opinion

According to information and explanation given to us and based on our audit, the following weakness have been identified in the effectiveness of the Companys internal financial controls over financing reporting as at March 31, 2024: a) Refer to Note 5 and 9 of the financial statements, in respect of long outstanding overdue trade receivables and advance, whereby evidences of control over monitoring / assessing recoverability of such over dues, including assessment of provision for doubtful trade receivables and advances were not operation effectively. This could potentially result in the company not recognizing a provision for doubtful / old overdue trade receivables. b) The Companys internal controls over updating the customers/ vendors master data with present addresses were not operating effectively in past but now it will be updated as and when new vendor added. 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, 2024, 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"

	For Rajesh Jalan & Associates
	Chartered Accountants
	(Firm Registration No. : 326370E)
	SD/-
	(Rajesh Jalan)
Place : Kolkata	Partner
Date : 30/05/2024	(ICAI UDIN: 24065792BKEXZD7899)