Balasore Alloys Ltd Auditor Reports

TO THE MEMBERS OF BALASORE ALLOYS LIMITED

Report on the Audit of the Standalone Financial Statements

Qualified Opinion

We have audited the accompanying standalone financial statements of Balasore Alloys Limited ( the Company ), which comprise the Balance Sheet as at March 31, 2026, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date, and a summary of the 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 the possible effects of the matters described in the Basis for Qualified Opinion section 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, 2026, the loss including other comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Qualified Opinion

Refer Note No. 46 of the standalone financial statements, wherein during the financial year 2022-23, the Company received funds amounting to USD 64.58 million (equivalent to 52,831.41 lacs) from its promoters under the External Commercial Borrowing ( ECB ) route. The Company had applied to the Reserve Bank of India (RBI), through its Authorised Dealer Bank, State Bank of India, for requisite regulatory approvals under the ECB framework as prescribed by the RBI Guidelines for ECB. As at the date of this report, the RBI approval remains under process. Pursuant, to the restructuring arrangement, the interest rate on the ECB facility was revised. Pending receipt of RBI approval, the company has not provided interest on the ECB up to March 31, 2026 amounting to 8961.77 lacs. Hence, Net Profit and Reserve & Surplus, are overstated to that extent.

We conducted our audit of the standalone financial statements 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 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 independence requirements that are relevant to our audit of the standalone financial statements 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 ICAI s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion on the standalone financial statements.

Emphasis of Matter

a) Refer Note No.42 of the standalone financial statements, which describes advances aggregating to 15,041.22 Lacs (Previous Year: 15,579.28 Lacs) paid to vendors in connection with the Companys underground mining project at Sukinda for procurement of machineries, equipment, and related services. These advances have remained outstanding for an extended period due to the suspension/shutdown of mining operations arising from various factors as described in said note, as well as environmental and regulatory challenges, which have prevented the commencement of the underground mining project as originally planned. As stated in the said Note, the management has formulated a Revised Underground Mining Plan envisaging commencement of a decline at +45mRL, which is proposed to be funded through internal accruals, equity/quasi-equity from the promoter group, and other financial arrangements. The vendors have confirmed their balances and provided assurances regarding timely supply of materials and/or adjustability of the advances against future supplies. Based on these factors and as per information made available to us, the management is confident of the recoverability/adjustability of the said advances and has not considered any provision for doubtful advances necessary at this stage.

b) Refer Note No. 47 of the standalone financial statement, which explains that the trading in the Company s securities was suspended with effect from March 15, 2021. As stated, the Company has complied with the requirements prescribed under the Bombay Stock Exchange (BSE) Order dated November 21, 2023.

Subsequently, BSE has compulsorily delisted the Company s securities with effect from January 25,

2024.The Company has filed an appeal before the Securities Appellate Tribunal (SAT) on February 5, 2024 seeking regularization of the listing status. Since the matter is currently under appeal, the potential impact, if any, on the standalone financial statements cannot be determined at this stage.

c) the Company is carrying WIP inventory of processed low-grade ore of 11,451.60 lakhs as at March 31, 2026 ( 13,602.52 lakhs as at March 31, 2025). The said stock is lying since long. however, as explained to us the management is working out a plan to utilize the inventory of low-grade ore lying at captive mines, accumulated over the years as a by-product of the Chrome Ore Beneficiation (COB) process. Considering the same, no provision or impairment of stock has been made in the books, and material impact if any cannot be ascertained. Our opinion 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 matters to be communicated in our report.

Sr. Key Audit Matter (KAM)	Auditors \u2019 Response
No.
Contingent Liabilities:
1. (refer Note no 37 to 40 of the Standalone Financial Statements) There are number of legal, regulatory and tax cases against the Company. High level of judgement is required in estimating the level of provisioning required. There is an inherent risk that all legal exposures are not identified and considered for disclosures a n d p r o v i s i o n i n g f o r financial reporting purpose on a timely basis making it a significant matter for our audit.	Our audit procedures in relation to management \u2019 s identification/judgements/estimation of contingent liabilities includes the following: Obtaining an understanding of and assessing the design, implementation and operating effectiveness of company \u2019 s key controls around the recording and assessment of contingent liabilities;

Meting company \u2019 s legal team to understand the ongoing and potential legal/tax matters impacting the company. Read the Board minutes for an update on the status of significant legal cases and assess whether any constructive obligation had arisen in individual cases based on available records. Understanding relevant historical judgment set in the similar cases as well as reading legal opinions from external lawyers/experts, when obtained by the management; Performed the substantive procedures on the underlying calculations for the provisions recorded for completeness and accuracy. Reviewing the accounting and disclosure of legal exposures. Our testing as described above showed that management \u2019 s judgment/estimation/assessment in relation to the contingent liabilities are reasonable and does not require additional provisioning. The disclosure made with respect to the contingent liabilities are adequate.

Revenue Recognition (Refer Note No.20 and Para 1B(m) Of the significant accounting policies of Standalone 2. Financial Statements). Revenue is recognized when the control of the underlying products has been transferred to customer along with the satisfaction of the company \u2019 s performance obligation under a contract with customer. The company focuses on revenue as a key performance measure which could create an incentive for revenue to be recognized before completion of the performance obligation. There is a significant risk related to inappropriate recognition of the revenue and hence was determined to be a key audit matter.

Our audit procedures to assess the appropriateness of revenue recognized included the following; Our audit procedures, considering the significant risk of misstatement related to revenue recognition, included amongst other; Obtaining an understanding of an assessing the design, implementation and operating effectiveness of the Company \u2019 s key internal controls over the revenue recognition process. Examination of significant contracts entered into close to year end to ensure revenue recognition is made in correct period. Testing a sample contracts from various revenue streams by agreeing information back to contracts and proof of delivery as appropriate and ensure revenue recognition policy is in accordance with principles of Ind AS 115. Assessing the adequacy of Company \u2019 s disclosure in accordance with requirement of Ind AS 115. Our testing as described above showed that revenue has been recorded in accordance with terms of underlying contracts and accounting policy in this area. The disclosures made relating to revenues are in agreement with Ind AS 115.

Information Other than the Standalone Financial Statements and Auditors Report Thereon

The Company s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Board s Report including annexures to Board s Report, Corporate Governance and Shareholder s Information, but does not include the standalone financial statements and our Auditors 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 during the course of our 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.

Responsibilities of Management and Those Charged With Governance for the Standalone Financial Statement

The Company s Board of Directors is responsible for the matters stated in section 134(5) of 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, total comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 financial statements 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, Board of Directors is responsible for assessing the Company s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless 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 responsible for overseeing the Company s financial reporting process.

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

Obtain an understanding of internal financial controls 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.

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 auditors 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 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 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.

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 Standalone 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 Standalone Financial Statements. 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 financial controls 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 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 Section 143(3) of the Act, based on our audit we report that: a. Except for the matter described in the Basis for Qualified Opinion section above, 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. Except for the matter described in the Basis for Qualified Opinion section 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. Except for the matter described in the Basis for Qualified Opinion section above, the Balance Sheet, the

Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account.

d. Except for the matter described in the Basis for Qualified Opinion, in our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

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

f. On the basis of the written representations received from the directors as on March 31, 2026 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2026 from being appointed as a director in terms of Section 164 (2) of the Act.

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 A . Our report expresses a modified opinion on the adequacy and operating effectiveness of the Company s internal financial controls over financial reporting.

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. 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, as amended, 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 litigations on its financial position in its standalone financial statements as referred to in Note no.37 to 40 to the Standalone Financial Statement.

ii. The Company has made provision, as required under the applicable law or accounting standards, for the material foreseeable losses, if any, on long-term contracts including derivative contracts.

iii. The Company has delayed, which were required to be transferred, to the Investor Education and Protection

Fund by the Company as per details given below:

Instance of Delay	In Lakhs	Due Date for Transfer	Actual Date of Transfer	Delay Days
Unpaid/unclaimed	29.99	25-11-2024	14-08-2025	263
dividend for 2016-17
Unpaid/unclaimed	23.94	25-11-2025	12-03-2026	108
dividend for 2017-18

iv) (a) We have received representation from the Management 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 during the year (either from 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 manner whatsoever by or on behalf of the Company ( Ultimate Beneficiaries ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. Hence on the basis of representation received from the management we opine that no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested during the year (either from 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 manner 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) We have received representation from the Management 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 during the year, 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. Hence on the basis of representation received from the management we opine that no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity during the year, 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 (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.

v) The Company has not declared or paid any dividend during the year, therefore compliance of the provision under section 123 of the Companies Act, 2013 is not applicable.

vi) Based on our examination, which included test checks, the Company has used accounting software systems for maintaining its books of account for the financial year ended March 31, 2026 which have the feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software systems. Further, during the course of our audit we did not come across any instance of the audit trail feature being tampered with and the audit trail has been preserved by the Company as per the statutory requirements for record retention.

2.As required by the Companies (Auditors Report) Order, 2020 ( the Order ) issued by the Central Government in terms of Section 143(11) of the Act, we give in Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order.

	For B Nath & Co
	Chartered Accountants
	(Firm \u2019 s Registration No.307057E)
	Gaurav More
	Partner
	(Membership No.306466) UDIN-
	26306466VRNORC4057
Place: Kolkata
Date: May 27, 2026

Annexure - A to the Auditors Report

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 Balasore Alloys Limited ( the Company ) as of March 31, 2026 in conjunction with our audit of the Standalone financial statements of the

Company for the year ended on that date.

Management s Responsibility for Internal Financial Controls

The Company s 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 ( ICAI ). 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

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 standalone 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 Company s internal financial controls system over financial reporting. 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 authorisations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised 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.

Qualified Opinion on adequacy (and therefore operating effectiveness) of Internal Financial Reporting

According to the information and explanations given to us and based on our audit, the following material weaknesses have been identified as at March 31, 2026: a) The Company did not have an appropriate internal control system for obtaining periodic balance, confirmations of trade receivables, trade payables and advances to suppliers and advances from customers which could potentially impact the financial position and operating statement. b) Absence of Written documented policy for ECL (Expected Credit Loss)/Write-off of Receivables.

A material weakness is a deficiency, or a combination of deficiencies, in internal financial control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company s annual or interim financial statements will not be prevented or detected on a timely basis.

In our opinion, except for the possible effects of the material weakness described above on the achievement of the objectives of the control criteria , the Company has maintained, in all material respects, adequate internal financial controls over financial reporting and such internal financial controls over financial reporting where operating effectively as of March 31, 2026, 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 have considered the material weaknesses identified and reported above in determining the nature, timing, and extent of audit tests applied in our audit of the March, 2026 financial statements of the Company, and these material weaknesses do not affect our opinion on the financial statements of the Company.

Qualified Opinion on operating effectiveness of Internal Financial Controls Over Financial Reporting and unmodified opinion on adequacy of such controls

According to the information and explanations given to us and based on our audit, the following material weaknesses have been identified in the operating effectiveness of the Company s internal controls over financial reporting as at March 31, 2026:

a. The Company s internal financial controls over effective monitoring of action points and internal controls as less effective.

A material weakness is a deficiency, or a combination of deficiencies, in internal financial control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company s annual or interim financial statements will not be prevented or detected on a timely basis.

In our opinion, the Company has, in all material respects, maintained adequate internal financial controls over financial reporting as of March 31, 2026, based on, for example, 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, and except for the possible of the material weaknesses described above on the achievement of the objectives of the control criteria, the company s internal financial controls over financial reporting were operating effectively as of March 31, 2026.

We have considered the material weaknesses identified and reported above in determining the nature, timing, and extent of audit tests applied in our audit of the March 31, 2026 financial statements of the Company, and these material weaknesses have affected our opinion on the standalone financial statements of the Company and we have issued a qualified opinion on the standalone financial statements.

	For B Nath & Co.
	Chartered Accountants
Place: Kolkata Date: May 27, 2026
	(Firm \u2019 s Registration No307057E)
	Gaurav More
	Partner (Membership No. 306466)
	UDIN- 26306466VRNORC405

Annexure - B to the Auditors Report

The Annexure referred to in Independent Auditors Report to the members of the Company on the standalone financial statements for the period ended March 31, 2026, we report that:

(i) (a)(A) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment. (B) The Company has maintained proper records showing full particulars of intangible assets. (b) The Property, Plant and Equipment have not been physically verified by the Management during the year under audit. The Company does not have a regular programme of physical verification of its Property, Plant and Equipment which, in our opinion, is required considering the size of the Company and the nature of its assets, so as to cover all the assets at reasonable intervals. Consequently, we are unable to comment on whether any material discrepancies were noticed on such verification and, if so, whether the same have been properly dealt with in the books of account. (c) According to the information and explanation given to us, and the records examined by us, and based on the examination if the registered sale deeds provided to us, title deeds comprising all the immovable properties of lands which are freehold, are held in the name of the Company as at the balance sheet date except certain portion of the land. In respect of immovable properties of land that have been taken on lease and disclosed as fixed asset in the financial statements, the lease agreements for the said lands and building thereof are in the name of the Company, except certain land which is pending for title clearance. As per available data, the details are as hereunder:

Description of property	Gross carrying value as at March 31, 2026 ( in	Held in the name of	Whether promoter, director or their relative or employee	Period held indicate range, where appropriate	Reason for not being held in the name of the Company*
	lakhs)
		Rani Bala Das	NO	26.11.2007	Not available
	10.01
		Suresh Gain	No	07.12.2007	Not available
		Suresh Gain	No	07.12.2007	Not available
Freehold land		Ispat Chrome Ltd
5 (five) cases
				February \u2019 94 &
	4.80	(Presently known	No		Not available
				March \u2019 94
		as Shakti Chrome
		Ltd.)
		Ispat Minerals
		Ltd.
	2.89		No	22.02.1994	Not available
		(Presently known
		as Olifantt
		Resources Ltd.)

(d) The company has not revalued its Property, Plant and Equipment or intangible assets or both during the year.

(e)As per information and explanation given to us, no proceedings have been initiated during the year or are pending against the Company as at March 31, 2026 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder. (ii) a) The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification by the management is reasonable and the coverage and procedure for such verification is appropriate. Inventories lying with third parties have substantially been confirmed by them as at year end. No discrepancies of 10% or more in aggregate for each class of inventory (including inventories lying with third parties) were noticed. b) According to the information and explanations given to us, the Company has not been sanctioned working capital limits in excess of 5 crores, in aggregate, at any point of time during the year, from banks or financial institutions on the basis of security of current assets. Hence, reporting on the quarterly returns or statements filed by the Company with such banks or financial institutions is not applicable.

(iii) a) During the year, the Company has not granted loans, provided advances in the nature of loans, stood guarantee or provided security to companies, firms, Limited Liability Partnerships or any other parties other than what has been paid or provided in earlier years. The details of loans and guarantees to other parties

	Guarantees	Loans
Aggregate amount granted/ provided during the year
- Others	-	-
Balance outstanding as at balance sheet date in respect of above cases
- Others	253.57	1,746.68*

b) According to the information and explanations given to us and based on the audit procedures performed by us, in our opinion the guarantee given by the Company (guarantee given during the year: Nil; balance guarantee outstanding at the balance sheet date: 253.57 lakhs) is prejudicial to the Companys interest, as the guarantee has been given without charging any guarantee commission. c) In respect of loans granted to one company, the schedule of repayment of principal and payment of interest has not been stipulated in the agreement. In the absence of a stipulated repayment schedule, we are unable to comment on the regularity of repayment of principal and payment of interest. d) The Company has made a provision during the year in respect of the aforesaid loan, on account of continuing default by the said party in repayment of dues. Accordingly, [the entire outstanding amount of 1746.68 lakhs] is considered doubtful of recovery, and no further steps for recovery, other than making the provision, have been taken by the management as at the date of this report. e) The Company has not renewed any loan or granted any fresh loans to settle the overdue amount of

1,746.68 lakhs due from the aforesaid party. No fresh loans have been granted to any other party to settle overdue amounts during the year. f) As disclosed in note 4 to the Standalone Financial Statements, the Company has granted loan in earlier years (100% provision for doubtful advances has been made against this loan), either repayable on demand or without specifying any terms or period of repayment to a body corporate. Out of these, no loan has been granted to a promoters or related parties as defined in clause (76) of Section 2 of the Companies Act, 2013.

(iv) In In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of sections 185 and 186 of the Companies Act, 2013 to the extent applicable. (v) The Company has not accepted any deposit from the public covered under Section 73 to 76 of the Companies Act, 2013. Therefore, the provisions of paragraph 3(v) of the Order is not applicable to the Company.

(vi) According to the information and explanations given to us, in our opinion, the Company have, prima facie, made and maintained the prescribed cost records pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended, prescribed by the Central Government under subsection (1) of Section 148 of the Companies Act, 2013. We have, however, not made a detailed examination of the cost records with a view to determining whether they are accurate or complete.

(vii) a) According to the records of the Company, undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax and Service Tax, Goods and Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and any other statutory dues have not been regularly deposited with appropriate authorities. According to the information and explanation given to us, undisputed amount in respect of statutory dues referred above outstanding as at March 31, 2026 for a period more than six months from the date they become payable are as under:

Nature of Statue	Nature of Dues	Amount ( in Lakhs)	Period to which the amount relates	Remarks, if any
The Income Tax Act, 1961(including interest)	Income Tax	3,695.05 4,856.58	AY 2015-16 AY 2017-18	Not Yet Paid
		3,915.99	AY 2018-19
The Income Tax Act, 1961	Tax Deducted at Source and Tax Collected at Source	639.09	Till September 2024	Not Yet Paid

Employees
Provident Fund & Miscellaneous Provisions Act,1952& Employees State Insurance Act, 1948 Central Sales	Provident Fund Including Contractor PF	232.9	Till September 2024	Not Yet paid
Tax Act, 1956 and Orissa Sales Tax Act	Sales Tax/VAT (including interest and penalty)	70.56	FY 1997-98	Not Yet paid

b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of sales tax, service tax, and entry tax as at 31 March 2026 which have not been deposited with statutory authorities on account of a dispute pending are given as below:

Sr No.	Name of the Statute			Nature of dues		the amount	( in	Amount Period to which Lakhs)	dispute is			Forum where pending
1.	Chapter Finance Act, 1994	V	of of Cenvat credit	Wrong		availment	98.49	2004-2012	Service	Tax	Central Excise &	Appellate Tribunal
2.	The Central Excise Act, 1944	Wrong		availment of Cenvat credit	337.69	April,	2005	to	CESTAT, March 2011		Kolkata	Commissioner Appeals
3.	State Service 2017	Goods Tax	& Act,	Demand raised Audit Interest on delay payment, and input difference 9 reversal of ITC	on Assessment, 183.97 Interest penalty in GSTR and	March18), on mismatch, 9C,	2017-18 (July17 2018-19, non	2019- 20, 2021-22	to 2020-21,	Additional Commissioner
4.	Income 1961	Tax	Act	Income Tax		17,268.51	AY 2013-14,		CIT(A) AY 2014-15, AY 2016-17, AY 2019-20, AY 2020-21 and AY 2024-25		Appeals, Bhubaneshwar and ITAT
5.	Employees Provident Miscellaneous Provisions 1952	Fund	Default in payment & Act,	350.48 of dues/damages	May	1998 August 2023	to	CGIT/EPF Appellate			Tribunal Court

(viii) As per information and explanation given to us, we have not come across any such any transactions which was not recorded in the books of account have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).

(ix) a) According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in repayment of loans or other borrowings or in the payment of interest to any lender during the year.

b) According to the information and explanations given to us and on the basis of our audit procedures, we report that the Company has not been declared Wilful Defaulter by any bank or financial institution or government or any government authority.

c) In our opinion, and according to the information and explanations given to us, the company has not taken any term loan during the year under audit.

d) According to the information and explanations given to us, and the procedures performed by us, and on an overall examination of the standalone financial statements of the Company, we report that the Company has not used funds raised on short-term basis for long-term purposes. e) According to the information and explanations given to us and on an overall examination of the standalone financial statements of the Company, we report that the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries, associates or joint ventures.

f) According to the information and explanations given to us and procedures performed by us, we report that the Company has not raised loans during the year on the pledge of securities held in its subsidiaries, joint ventures or associate companies.

(x) a) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) during the year and hence reporting under clause 3(x)(a) of the Order is not applicable.

b)During the year, the Company has not made any preferential allotment or private placement of shares or convertible debentures (fully or partly or optionally) and hence reporting under clause 3(x)(b) of the Order is not applicable.

(xi) a) Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees 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 Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and upto the date of this report.

c) As per information and explanation given to us, the Company has not received any whistle-blower complaints during the year, hence reporting under this clause is not applicable.

(xii) In our opinion and according to the information and explanation given to us, the Company is not a Nidhi Company and hence the paragraph 3(xii) is not applicable;

(xiii) In our opinion, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013 with respect to applicable transactions with the related parties and the details of related party transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.

(xiv) a) In our opinion the Company has an adequate internal audit system commensurate with the size and the nature of its business. b) We have considered, the internal audit reports for the year under audit, issued to the Company during the year and till date, in determining the nature, timing and extent of our audit procedures.

(xv) 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. (xvi) a) In our opinion, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Hence, reporting under clause 3(xvi)(a), (b) and (c) of the Order is not applicable. b) In our opinion, there is no core investment company within the Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016) and accordingly reporting under clause 3(xvi)(d) of the Order is not applicable.

(xvii) The Company has not incurred cash losses during the financial year under audit, and also had not incurred any cash losses in the immediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors during the year and accordingly requirement to report on Clause 3(xviii) of the Order is not applicable to the Company.

(xix) 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 standalone financial statements and our knowledge of the Board of Directors and Management plans and based on our examination of the evidence supporting the assumptions, except the possible impact of points mention in paragraphs Basis of Qualified Opinion and Emphasis of Matter , nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report indicating that Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. 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.

(xx) The Company does not fall into the limits prescribed under section 135 of the Companies Act, 2013 for the applicability of Corporate Social Responsibility expenditure during the year, and hence paragraph 3(xx) is not applicable.

(xxi) 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 B Nath & Co
	Chartered Accountants
	(Firm \u2019 s Registration No307057E)
	Gaurav More
	Partner
	(Membership No306466) UDIN-
	26306466VRNORC4057
Place: Kolkata Date:
May 27, 2026