Bharat Coking Coal Ltd Auditor Reports

FOR THE YEAR ENDED MARCH 31, 2026

TO THE MEMBERS OF

BHARAT COKING COAL LIMITED

To The Members of Bharat Coking Coal Limited

Report on the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone Financial Statements of BHARAT COKING COAL LIMITED ( the Company ),which comprise the Balance Sheet as at 31 st March 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 then ended on that date and a summary of the material accounting policy information and other explanatory information (hereinafter referred to as standalone financial statements ) in which are included the returns for the year ended on that date audited by the area /units auditors of the Company s 15 (fifteen) area /units comprising (1) Barora Area; (2) Block-II Area; (3) Govindpur Area; (4) Katras Area; (5) Sijua Area; (6) Kusunda Area (including Bhuli Township Area); (7) P B Area; (8) Bastacolla Area (including Mines Rescue Station); (9) Lodna Area (including Lodna Washery); (10) Eastern Jharia Area; (11) C V Area; (12) Dahibari Washery; (13) Western Jharia Area; (14) Washery Division; (15) Madhuban Coal Washery.

In our opinion and to the best of our information and according to the explanations given to us, The aforesaid financial statements give the information required by the 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(financial position) of the Company as at 31 st March, 2026, and its Profit(financial performance including other comprehensive income), changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical 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 Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

INDEPENDENT AUDITORS REPORT	MANAGEMENTS COMMENT
Emphasis of Matter
We draw attention to the following matter in the notes to the Standalone Financial Statements:
(a) The Company has revised its accounting treatment of Input GST on capital goods with effect from 2025-26. Earlier from FY 2020-21 to FY 2024-25 input GST on capital goods was capitalized instead of being recognized separately as current assets. With effect from 01.04.2025 the practice of capitalizing GST on capital expenditure has been discontinued. The company has now started availing Input Tax Credit (ITC) on eligible capital expenditure and recognising the same as current assets (Refer Note No. 6.2 of the Standalone Financial Statements).	(a) I \u2019 ursuant to Notification No. 09/2025 - Central Tax (Rate), the Goods and Services Tax (GST) rate on coal has been increased from 5% to 18% with effect from September 22, 2025. Consequently, the inverted duty structure no longer exists, and accumulated Input Tax Credit (ITC) is being utilized against output tax liability. Accordingly, with effect from April 01, 2025, the Company has revised its accounting treatment by commencing to avail eligible GST ITC on capital items and discontinuing the capitalization of such GST except on Laptops and Mobile Phones.
(b) During the year the company has taken steps to conduct a hundred percent physical verification of all store items of entire BCCL. Accordingly, the verification audit was conducted by several audit firms to ascertain the present status of the store items in various stores of the company for the financial year 2024-25. The company has not yet come up with the actual financial impact on the basis of such reports received till the date of this audit. Accordingly, no consequential financial impact, if any, is considered by the management in the standalone financial statements as on 31st March 2026 (Refer Note No. 5.1 of the Standalone Financial Statements).	b)The consequential financial implication, if any, shall be accounted for upon receipt of the reports of the physical verification.
(c) Certain debit/credit balances including trade receivables, other current and non-current assets, trade payables, other financial liabilities and other current and non-current liabilities as on the Balance Sheet date have been partially confirmed, and reconciliation with the respective ledger balances remains in progress. Hence the financial impact thereof, if any, on such pending reconciliation on the financial statement cannot be fully determined at this stage.	c) Reconciliation of Trade Receivables takes place continuously. Efforts have been taken to expedite the pending reconciliation. Moreover, confirmation in respect of some of the trade payables were obtained and efforts will be made to collect the same against all the trade payables
(d) Up to the previous year 2024-25, the company treated levies on coal production and sales imposed by Central, State and Local Authorities as amounts collected in an agency capacity. In the current year 2025-26, the company reassessed the accounting treatment of such levies based on their underlying nature, relevant accounting standards, legal provisions and opinions obtained from accounting experts. Based on this assessment, the company concluded that for certain levies it acts as a principal and accordingly, the Revenue from Operations as disclosed in Note 12.1 is inclusive of such levies on sales. In the state of West Bengal, cess on coal is computed based on average production of preceding years and notified prices, whereas recoveries from customers are based on actual dispatches, resulting in timing differences. Such differences were historically adjusted through an \u201c Equalization Fund \u201d as Liability in Balance Sheet, which in the current year has been assessed by the management to be no longer required and hence written back. The same has been disclosed in Note 16(6)(ac).	d)Historically, the company treated levies on coal production and sales imposed by Central, State and Local Authorities as amounts collected in an agency capacity. Pursuant to observations of the C&AG, the company reassessed the accounting treatment of such levies based on their underlying nature, relevant accounting standards, legal provisions and opinions obtained from accounting experts. Based on this assessment, the company concluded that for certain levies it acts as a principal. Accordingly, the Revenue from operations is disclosed in Note 12.1 is inclusive of such levies on sales.
INDEPENDENT AUDITORS REPORT	MANAGEMENTS COMMENT
	In the state of West Bengal, cess on coal is computed based on average production of preceding years and notified prices, whereas recoveries from customers are based on actual dispatches, resulting in timing differences. Such differences were historically adjusted through an \u201c Equalisation Fund \u201d as Liability in Balance Sheet, which is no longer required as per the above assessment
(e) With effect from 07.10.2024, the Government of Jharkhand started levying Jharkhand Mineral Bearing Land (JMBL) Cess. During the year, the company has decided to recover the JMBL cess on the coal dispatched by the Washeries amounting to Rs.168.67 crores and account for the same as revenue. Such amount has already been deposited by the company to the Government exchequer in respective periods.	e) JMBL Cess on the coal dispatched by the Washeries has been treated as revenue and corresponding trade receivables have been accounted for.
Our opinion is not modified in respect of the 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 year. These matters have been addressed in the context of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, we do not provide a separate opinion on these matters. Each matter below, description of how out audit addressed the matter is provided in that context. We have determined the matters described below to be the key audit matters in our report.

No 1 . Key Audit Matter	Auditors Response
1. Stripping Activity:	Our Audit Procedures:
In case of opencast mining, the mine waste materials ( \u201c overburden \u201d ) which consists of soil and rock on the top of coal seam is required to be removed to get access to the coal and its extraction. The process of removing overburden to access coal is referred to as stripping. Stripping is necessary to obtain access to coal and occurs throughout the life of an opencast mine. Stripping costs during development and production phases are classified in property, plant, and equipment. Stripping costs are accounted for separately for individual mines. The company accounts for stripping activities as follows:	We performed the following substantive procedures:
	\u2022 Obtained working data of Stripping Adjustment and test checked that the total expenses incurred during the year is allocated between coal production and overburden. Ensured about accuracy and completeness of expenses considered in calculation of cost of overburden.
	\u2022 Performed analytical procedures and test of details for reasonableness of expenses considered stripping activity adjustment calculation.

Key Audit Matter	Auditors Response
Stripping costs during the Development phase.
These are initial overburden removal costs incurred to obtain access to coal to be extracted. These costs are capitalised when it is probable that future economic benefits will flow to the company and costs can be measured reliably. Once the production phase begins, capitalised development stripping costs are amortised over the mine life.	\u2022 Checked the stripping ratio to be charged under amortisation for mine development expenditure for balance period of mines.
Stripping costs during the production phase:	\u2022 Checked that the accounting policy applied and managements judgments used for Stripping Activity Adjustment are appropriate.
These are overburden removal costs incurred after the mine has been brought to revenue as per the policy of the company. Stripping costs during the production phase can give rise to two benefits, the extraction of coal in the current period and improved access to coal which will be extracted in future periods. Stripping costs during the production phase are allocated between the inventory produced and the stripping activity asset using a standard strip ratio (overburden-to-coal). The standard strip ratio is the total volume of Overburden expected to be removed over the life of the mine against the total coal to be extracted over the life of the mine. When the actual volume of overburden removed is greater than the expected volume of overburden removal, the stripping cost for excess overburden removed over the expected overburden removal is capitalised to the stripping activity asset. The stripping activity asset is amortised over the expected useful life of the mine. Changes in geomining conditions may have an impact on the standard strip ratio. Changes to the ratio are accounted for prospectively. Stripping activity asset are included separately under Property, plant, and equipment.	\u2022 Reliance has been placed on the judgements, technical estimations of internal / external technical and other experts for the purpose of technical/ commercial evaluation of the stripping ratios, proved/ probable reserves in mines, current and expected volume of production, life of the mines etc. and submissions made to the authorities in this respect.
Stripping activity asset for stripping costs during the production phase is recognised in the mines with a rated capacity of one million tonnes per annum and above.	\u2022 Reviewed the requirements of Appendix B- Stripping Costs in the Production Phase of a surface mine of Ind AS- 16 \u201c Property, Plant and Equipment \u201d and assessed the compliances and appropriateness of the policy being followed, disclosures etc. made in the financial statements in this respect and those as required in terms of Ind AS.
The stripping activity accounting is not applied in Mine Developer and Operator (MDO) arrangements structured as a revenue-sharing arrangement.	Based on the procedures performed, we have satisfied ourselves regarding stripping activity accounting.
Stripping activity provision (Ratio Variance)
Stripping activity provision was recognized or reversed based on the current ratio of Overburden to Coal as compared to the average Stripping ratio (Standard ratio) of the mine as per the policy followed in earlier years since inception consistently by the company. This accounting method being substantiated and validated by a multitude of authoritative bodies and forums, including income tax authorities, the provision created in earlier years have been continued. The amount of the provision so carried forward is reversed periodically in systematic manner on extraction of actual volume of overburden being in excess of the expected volume in terms of the mine specific plan as approved on mine to mine basis and disclosed as reversal of stripping activity provision under other operating revenue. Such reversal is specific to the mines at the rate the said provision was originally recognised.
(Refer Note No. 2.19 & 2.23 to the Standalone Financial Statements.)
2. Ind AS 115 \u201c Revenue from Contracts with Customers \u201d :	Our Audit Procedures:
Revenue recognition and adjustments for coal quality variance involve critical estimates.	Our Audit procedures based on which we arrived at the conclusion regarding reasonableness of Revenue recognition includes the following:
The revenue recognized by the company in a particular contract is dependent on the sale agreement / allotment in e-auction for the respective customer.	\u2022 Assessment of the application of the provisions of Ind AS 115 in respect of the Company \u2019 s revenue recognition and appropriateness of the estimated adjustments in the process.
Revenue from sale of coal is recognized at declared grade of coal. Subsequent adjustments are made to the transaction price due to grade mismatch/slippage of the transferred coal. The variation in the contract price if not settled mutually between the parties to the contract is referred to third party testing and the Company estimates the adjustments required for revenue recognition pending settlement of such dispute. Such adjustments in revenue are made on estimated basis following historical trend.	\u2022 Obtained and evaluated trend of past results prepared based on the outcome of test from mutually agreed quality testing laboratory or Referee quality testing laboratory.
The revenue recognition being a significant matter involving material adjustment for Grade Slippage requiring judgements and estimates for past trend, etc., has been considered to be a key audit matter.	\u2022 Obtained and evaluated calculation and working of grade slippage provision.
(Refer Additional Note 16 (6)(n)-Other Matters to the Standalone Financial Statements.)	\u2022 Evaluated the controls in place for estimation, recognition and disclosure in the standalone financial statements.
	\u2022 Checking of selected transactions on sample basis and tested for identification of contracts involving disputes relating to grade mismatch/ slippage with respect to the terms of the contract, evaluation of the satisfaction of performance obligation checking the adjustment to the revenue due to variation in transaction price.
	\u2022 Reviewed the agreement with the customers and invoices raised considering the terms and conditions thereof.
	\u2022 We have performed tests to establish the basis of estimation of the consideration and whether such estimates are commensurate with the accounting policy of the Company.
	\u2022 Reviewed the Adequacy of the disclosure as per Ind AS 115.
	\u2022 Quality parameters and assessment require technical knowledge and therefore reliance have been placed on technical findings and reports in this respect.
	\u2022 Evaluated the design, the processes and internal controls relating to revenue accounting standard.
	\u2022 Evaluated the detailed analysis performed by management on revenue streams by selecting samples for the existing contracts with customers and considered revenue recognition policy in the current year in respect of those revenue streams.
	\u2022 Evaluated the appropriateness of the disclosures provided under the revenue standard and assessed the completeness and mathematical accuracy of the relevant disclosures.

NO. Key Audit Matter	Auditors Response
3. Evaluation of uncertain tax positions	Our audit procedures include the following:
The Company has material uncertain tax positions, including matters under dispute which involves significant judgment to determine the possible outcome of these disputes.	\u2022 Evaluated the design and implementation of controls in respect of provision for current tax and the recognition and recoverability of deferred tax assets.
(Refer Additional Note No. 16(1) to the Standalone Financial Statements.)	\u2022 Considered managements assessment of the validity and adequacy of provisions for uncertain tax positions, evaluating the basis of assessments and reviewing relevant correspondence and legal advice where available including any information regarding similar cases with the relevant tax authority.
	\u2022 Assessed the appropriateness of managements assumptions and estimates including the likelihood of generating sufficient future taxable income to support deferred tax assets.
	Based on the procedure performed above, we observed that the management estimates regarding current and deferred tax balances and provision for uncertain tax positions is sufficient.
4. Valuation of defined benefits obligation for employees:	Our audit procedures include the following:
Accounting for defined benefit plans is based on actuarial assumptions which require measuring the obligation, evaluating the plan assets and calculating the corresponding actuarial gain or loss, all future cash flows discounted to present value for arriving at the obligation.	\u2022 Evaluated the key assumptions applied (discount rates, inflation rate, mortality rate) as per the Guidance Note applicable.
Significant estimates including the discount rates, the inflation rates and expected escalation of salary, awards and revisions made from time to time, and the mortality rate are made in valuing the company \u2019 s defined benefits obligations.	\u2022 Assessed the competence, independence, and integrity of the Company \u2019 s actuarial expert.
The company engages external actuarial specialists to assist in selecting appropriate assumptions and calculate the obligations.	\u2022 The controls over the review and approval of actuarial assumptions, the completeness and accuracy of data provided to external actuary, and the reconciliation to data used in experts calculation were tested.
Valuation of the defined benefit obligations requires a high degree of estimation based on vital assumptions and as such adequate attention is required to be given in this respect during the audit.	\u2022 Discussed with the Management about the liability accrued due to defined benefit plan and to understand the business and assessed if there was any inconsistency in the assumptions.
Refer Additional Note No. 16(5) to the Standalone Financial Statements.	\u2022 Adequacy of the Company \u2019 s disclosure as per Ind AS 19 in the notes is verified.
	\u2022 Placing reliance on the actuarial assumptions including discount rates, the inflation rates, escalation of salary and the mortality rate, etc.
	Based on the audit procedures involved, we observed that the assumptions made by the management in relation to the valuation were supported by available evidences.
5. Evaluation of provisions and Contingent Liabilities:	Our Audit procedures based on which we arrived at the conclusion regarding reasonableness of disclosure of contingent liability and recognition of provisions includes the following
There are several litigations including direct and indirect taxes, various claims, etc. pending before various forums against the Company and the management \u2019 s judgement is required for estimating the amount to be provided and/or disclosed as contingent liability.	\u2022 We have obtained an understanding of the Company \u2019 s internal instructions and procedures in respect of estimation, assessment and disclosure of contingent liabilities.
We identified this as a key audit matter because the estimates and assessment with respect to these involve a significant degree of management \u2019 s judgement, interpretations, and may therefore require adequate attention to arrive at the required conclusion.	\u2022 Understood and tested the design and operating effectiveness of controls as established by the management for obtaining all relevant information for pending litigation cases.
(Refer Note 16.1 to the Standalone Financial Statements, read with the Material Accounting Policy Information No. 2.21)	\u2022 Discussed with the management regarding any material develop ments and status of matters pending as on 31.03.2026.
	\u2022 Read various correspondences and related documents pertaining to litigations involved and relevant external legal opinions obtained by the management and performed substantive procedures on estimation supporting the disclosure of contingent liabilities.
	\u2022 Examined management \u2019 s judgements and assessments with respect to the provisions if any required for any such matter.
	\u2022 Reviewed the management \u2019 s assessments of those matters which have not been provided for or disclosed as contingent liability since the probability of material outflow has been considered to be remote.
	\u2022 Reviewed the adequacy and completeness of disclosures.
	Based on the above procedures performed, the estimation of provision and disclosures for contingent liabilities have been considered to be adequate and reasonable.
Evaluation of accuracy of Inventory Movement and Valuation -Ind AS 2 - 6 Inventories : Inventories are assets :	We have conducted the following checks to verify the matter:
a . Held for sale in the ordinary course of business;	\u2022 We verified the movement of stock with reference to the Annual Coal Stock Measurement as reported in Form- H.
b. In the process of production for such sale;	\u2022 Raw coal has been measured at the lower of cost and net realizable value, in accordance with Ind AS 2.
c. In the form of materials or supplies to be consumed in the production process or in the rendering of services.	\u2022 The valuation of raw coal is performed on a weighted average cost basis, which we have verified.
Measurement of Inventories:
Inventories shall be measured at the lower of cost and net realizable value.	\u2022 The valuation of washed coal is valued at cost and net realisable value whichever lower and washed power coal and rejects being byproducts are valued at net realisable value basis.
Cost of inventories	\u2022 Hand-picked rejects has no realisable value.
The cost of inventories shall comprise all costs of purchase, cost of conversion, and other costs incurred in bringing the inventories to their present location and condition.	\u2022 We noted that difference between \u201c Saleable Book Stock \u201d and Measured Saleable Book Stock \u201d does not exceed +/- 5%; accordingly, no provision has been considered necessary.
	\u2022 We performed checks to ensure that no other costs have been included in inventory valuation that are required to be excluded under Ind AS 2.

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 Directors Report including Annexures to Directors Report, CSR Report, R&D and Report on Corporate Governance and Management Discussion and Analysis Report but does not include the financial statements and our auditors report thereon. The Directors Report including Annexures to Directors Report, CSR Report, R&D and Report on Corporate Governance and Management Discussion and Analysis Report, is not made available to us till the date of this report and is expected to be made available to us after the date of this Audit Report.

Our opinion on the 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 identified above when it becomes available 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.

When we are provided and we read the Directors Report including Annexures to Directors Report, CSR Report, R&D and Report on Corporate Governance and Management Discussion and Analysis Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and describe actions applicable in the applicable laws and regulations.

Responsibilities of the Management and Those Charged with Governance for the Standalone Financial Statements

The Companys Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 ( the Act ) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance, 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, including the Accounting Standards specified under section 133 of the Act read with relevant rules, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate 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, management is responsible for assessing the Company s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

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

Auditor s Responsibility for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 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 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 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 control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

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

Other Matters

We did not audit the standalone financial statements/information of 15 areas/ units included in the standalone financial statements of the Company whose financial statements / financial information reflect total assets of Rs. 11,376.25 crores as at 31st March 2026 and total income of Rs. 14,025.00 crores for the year ended on that date, as considered in the standalone financial statements. The standalone financial statements/ information of these area / unit has been audited by the area / unit auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these area / units, is based solely on the report of such area / unit auditors.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required under section 143(5) of the Companies Act, 2013, we give in the Annexure - I, a statement on the Directions and the Additional Directions issued by the Comptroller and Auditor General of India after complying with the suggested methodology of Audit, the action taken thereon and its impact on the accounts and Standalone financial statements of the Company. This statement has been prepared incorporating the comments of the Area/ Unit Auditors of the Company mentioned in their Auditors Reports.

2. As required by the Companies (Auditor s Report) Order, 2020 ( the Order ), as amended, issued by the Central Government of India in terms of subsection (11) of section 143 of the Companies Act, 2013, we give in the Annexure - II a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable for the year under audit.

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

(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from the area / units not visited by us.

(c) The reports on the accounts of the area / units of the Company audited under Section 143 (8) of the Act by area / unit auditors have been sent to us and have been properly dealt with by us in preparing this report.

(d) 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 and with the returns received from the area / units not visited by us.

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

(f) In pursuance to the Notification No. G.S.R. 463(E) dated 05-06-2015 issued by the Ministry of Corporate Affairs, Section 164(2) of the Act pertaining to disqualification of Directors, is not applicable to the Government Company.

(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 III . Our report expresses an unmodified 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 Auditor s 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 - Refer Note 16(1) to the standalone 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 were no amounts which were 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, other than as disclosed in the notes to the accounts, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (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) The management has represented, that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been received by the company from any person(s) or entity(ies), including foreign entities (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; and

(c) Based on such audit procedures we have considered reasonable and appropriate in the circumstances; nothing has come to our notice that has caused us to believe that the representations under subclause (a) and (b) contain any material misstatement.

(v) (a) Dividends declared or paid during the year by the Company are in compliance with section 123 of the Act.

(b) During the year, the Company s Shareholders in the Annual General meeting held on 25 th July 2025 have approved the remaining dividend of Rs.844.2175 crores of 5% Non-Convertible Cumulative Redeemable Preference Shares and accordingly the amount was paid on 28 th July 2025.

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

Annexure-I to the Independent Auditors Report of Bharat Coking Coal Limited, Dhanbad on Standalone

Financial Statements for the year ended 31 st March, 2026.

[Referred to in Paragraph 1 of Report on Other Legal and Regulatory requirements of our Audit Report on the Statement of Directions & Additional Directions under Section 143(5) of Companies Act, 2013 Issued by Comptroller & Auditor General of India for the year 2025-2026 as reported in the Auditors Report of the Company.]

Directions under section 143 (5) of the Companies Act 2013

Particulars	Auditors Observation	Action taken and Impact on Financial Statements
1) Assess the fair valuation of all the investments, both quoted and unquoted, made directly by the Company or through Trusts, for Post-retirement benefits of the employees. This includes verifying valuation methodologies, ensuring consistency with lnd AS and reviewing supporting documentation. The auditor shall provide a brief note on the valuation approach, its reasonability, and compliance with applicable regulations, reporting any material deviations or misstatements	As per explanation and information given to us, some of the investment for postretirement benefits of employees have been made directly or through trust which includes Gratuity Fund, Leave Encashment Fund, Medical facility etc.	The Company has been migrated to SAP with effect from 1 st August, 2021 in phases. Due care is taken to account for all transactions in SAP, and therefore there is no financial impact as ascertainable.
	Gratuity Fund is invested with LIC through trust and Leave Encashment Fund is invested with LIC directly, while fund for post-retirement medical facility is invested through trust managed by the holding company i.e. Coal India Limited.
	All such investments are interest bearing. The interest on the investments are recognized based on the interest rate declared and corresponding fund statements provided by LIC.
2) Whether the company has a system in place to process all the accounting transactions through IT systemRs. If yes, whether review of this system and controls that are significant to the Companies financial reporting process as well as cyber security has been done by Information Security Auditing Organizations empanelled by Cert-In at a minimum frequency of once in a year and material discrepancies found, if any, have been suitably reportedRs. The implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financial implications may also be reported.	As per explanation and information given to us, the company employs a comprehensive IT system in SAP with seven modules fully integrated with each other to process all accounting transactions. The financial transactions are recorded through SAP, except calculation of Performance Income, Compensation Income, Interest Income on delayed payment, Valuation of Stripping Activity Adjustments and Coal Quality Variance. Further, various ageing analysis which are required to be disclosed in the financial statements have also been prepared manually by the Management.	There is no financial impact other than disclosed in the Financial Statements.
	The company \u2019 s website is required to be have security audit once in a year by a Cert-In empaneled auditor. In this respect a work order has been issued to STPI (Software Technology Park of India, a Department under Ministry of Electronics and Information Technology) for security audit. The audit is yet to commence.
3) Whether funds (grants/subsidy etc.) received for specific schemes from Central/State Government or its agencies were properly accounted for as per the applicable accounting standards or norms and whether the received funds were utilized as per its terms and conditionsRs. Whether accounting of interest earned on grants received has been done as per terms and conditions of the Grant. List the cases of deviation.	During the year 2025-26 the company has not received funds for specific schemes from Central/State Government or agencies.	There is no impact on the Financial Statements.
4)Whether the Company has identified the key Risk areasRs. If yes, whether the Company has formulated any Risk Management Policy to mitigate these risksRs. If yes, (a) whether the Risk Management Policy has been formulated considering global best practicesRs. (b) whether the Company has identified its data assets and whether it has been valued appropriately?	As per explanation and information given to us, the Company has identified key risk areas and has formulated a Risk Management Policy to mitigate these risks. The Risk Management Policy has been formulated considering global best practices.
	SAP software has been identified as an Intangible Asset by the company and its value along with accumulated amortization has been disclosed in Note 3.4 of the financial statements.
5) Whether the Company is complying with the Securities and Exchange Board of India (SEBI) (Listing Obligation and Disclosure Requirements) Regulations, 2015, and other applicable rules and regulations of SEBI, Department of Investment and Public Asset Management, Ministry of Corporate Affairs, Department of Public Enterprises, Reserve Bank of India, Telecom Regulatory Authority of India, CERT-IN, Ministry of Electronics and Information Technology and National Payments Corporation of India wherever applicableRs. If not, the cases of deviation may be highlighted.	As required in terms of the provisions of section 149, 177 and 178 of the Companies Act 2013(the Act) and Regulations 17, 18 and 19 read with Schedule II of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 (SEBI Regulation), Company \u2019 s Board Directors and sub committees including Audit Committee and Remuneration Committee does not contain required number of Independent Directors and nor a woman director. Such non-compliance may result in penal action by SEBI and other Regulatory Authorities.

Additional Directions under section 143 (5) of the Companies Act 2013

Particulars	Auditors Observation	Action taken and Impact on Financial Statements
1) Whether coal stock measurement was done based on Yellow BookRs. Whether physical stock measurement reports are accompanied by contour maps in all casesRs. Whether approval of the Competent Authority was obtained for new heap, if any, created during the year.	As per explanation and information given to us, the coal stock measurement is being conducted as per the provision of New Yellow Book of CIL. The physical stock measurement reports are accompanied by contour maps. The competent approval is being obtained for new heaps created during the year.	There is no impact on the Financial Statements.
	For the washeries, the stocks of slurry, rejects, etc. were building up since inception of the washery, i.e. prior to takeover by BCCL. The heaps, particularly of reject, slurry, etc. are huge in shape and size. All these heaps do not have contour plans, as such being measured by conventional method.
2) Whether the company has conducted physical verification exercise of assets and properties at the time of merger / split / re-structure of an area. If so, whether the concerned subsidiary followed the requisite procedure.	As per explanations and information given to us, there is no case of merger / split / restructure of any Area of BCCL during the Financial Year 2025-26.	There is no impact on the Financial Statements.
3) Whether separate Escrow Accounts for each mine has been maintained in CIL and its subsidiary companies and the Escrow Agreements/Accounts were modified/ updated in compliance of guidelines issued by Ministry time to time. Also examine the utilization of the fund of the account.	\u201c Yes, separate Mine-wise Escrow account against each Mine \u201d Closure Plan is maintained with Bank of Baroda and Union Bank of India according to guidelines issued by Ministry of Coal.	There is no impact on the Financial Statements.
	In line with the revised guidelines for preparation of mining plan and mine closure plan for coal and lignite blocks 2025 issued on 31 st January 2025, the mining plans of the company have been revised during the year 2025-26.
	No amount has been withdrawn from the Escrow account during the financial year 2025-26. However, Rs. 13.25 crore has been released from escrow account as per order of Coal Controller Organization (CCO).
4) Whether the impact of penalty for illegal mining as imposed by the Honble Supreme Court/National Green Tribunal/ State Pollution Control Board has been duly considered and accounted for.	Demand notices amounting to Rs. 17,344.46 crore had been issued in respect of 47 Projects/Mines/ Collieries of the company by State Government (District Mining Officer) in pursuance of the judgement dated 02.08.2017 of Hon \u2019 ble Supreme Court of India vide W.P. (C) No. 114 of 2014 in Common Cause vs. Union of India & Others. These demands were later set aside.	There is no impact on the Financial Statements.
	In the financial year 2025-26, DMO Dhanbad issued demand notice(s) amounting to Rs.17644.33 Crore, to the Project Officers of concerned Collieries of BCCL for deposition of amount towards compensation in terms of the judgment passed by the Hon \u2019 ble Supreme Court of India on 02.08.2017 and the Project Officers of concerned collieries of BCCL have filed Revision Applications under Section 30 of MM(D&R)Act, 1957 before the Hon \u2019 ble Coal Tribunal, Ministry of Coal challenging these demand notice(s).
	The same has been disclosed in the Additional Notes to the Financial Statements (Note 16).
5) Whether any independent Assessment/ Certification in respect of migration process of data from Coal net portal to SAP has been done.	Independent assessment/ certification in respect of migration process of data from Coal-Net portal to SAP has been obtained by BCCL on 11.03.2025.	There is no impact on the Financial Statements.

Annexure -II to the Independent Auditors Report to the members of Bharat Coking Coal Limited, Dhanbad on the Standalone Financial Statements for the year ended 31 st March, 2026.

[Referred to in paragraph 1 of Report on Other Legal and Regulatory Requirements of our Independent Audit Report]

Auditors Report

(i) (a) (A) The Company is maintaining proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment.

(B) The Company is maintaining proper records showing full particulars of intangible assets.

(b) The Property, Plant and Equipment of the Company have been physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of our examination of 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 favour of the lessee) disclosed in the financial statements are held in the name of the Company except in the following cases: -

Description of property	Gross carrying value (Rs. \u2019 crore)	Held in name of	Whether promoter, director or their relative or employee	Period held - indicate range, where appropriate	Reason for not being held in name of company
Freehold Land	195.80	Only in case of directly purchased by the Company (1095.05 Ha)	Not Applicable	Different Dates	Out of 16396.67 Ha of the total land acquired for the company, diverted forest land is 334.39 Ha and freehold land is 16062.28 Ha which includes 9945.89 Ha of land is under the category of vested land through Coking Coal mines/ Coal Mines Nationalization Act 1972 & 1973; 1090.17 Ha of land related to Coal Mines Labour Welfare Organization including Central Hospital and four other Hospitals, Mines Rescue Stations of Govt. of India, four Washeries of SAIL, erstwhile Coal Board and Central Jharia Projects which have been transferred to the Company by the Govt. of India, and 5026.22 Ha of land is acquired under Land Acquisition Act, CBA(A&D) Act, Merger of NCDC, Government transferred land (out of which 1095.33 Ha land has been directly purchased and title deeds in these cases are held in the name of the company).
					Out of the total 16396.67 Ha of land held in the name of the company, Mutation of land is not required for 1381.86 Ha as they are Government land transferred, Forest Diverted Land and land acquired under CBA (A&D) Act, 1957. Out of the remaining 15014.81 Ha of land, 9966.74 Ha has been mutated in the
Other Land	53.22	Not Applicable	Not Applicable	Different dates

(d) The Company has not revalued its Property, Plant and Equipment (including Right of Use assets) or intangible assets or both during the year ended 31 st March, 2026.

(e) No proceedings have been initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(ii)(a) The company has physically verified inventory at reasonable intervals. No such discrepancies of 10% or more in the aggregate for each class of inventory were noticed.

(b) Unsecured working capital limits have been sanctioned during the year in excess of five crore rupees, in aggregate, from banks or financial institutions. The detail of such sanctions is provided in the below table:

Bank Name	Sanctioned limit (Working capital demand loan/ Working capital loan / Short term loan)	Outstanding as on 31.03.2026*
HDFC Bank Limited	Rs. 350.00 Crore	Nil
AXIS Bank Limited	Rs. 200.00 Crore	Nil
ICICI Bank Limited	Rs. 50.00 Crore	Nil
State Bank of India	Rs. 2,000.00 Crore	Rs. 2,000.00 Crore
Bank of Baroda	Rs. 200.00 Crore	Nil

Besides, the Company has obtained during the year the sanctions of working capital limits in excess of Rs. 5 crores, in the nature of Overdraft facility against Fixed Deposits from banks. The detail of such sanctions is provided in the below table:

Bank Name	Sanctioned limit as on 31.03.2026	Outstanding as on 31.03.2026*
Canara Bank - Overdraft	Rs. 7.85 Crore	Nil
Bank of Maharashtra - Overdraft	Rs. 232.75 Crore	Nil
Bank of Baroda - Overdraft	Rs. 100.00 Crore	Nil
Bank of Baroda - Overdraft	Rs. 228.00 Crore	Nil

* The Company has availed these working capital facilities during the year. Accordingly, the interest and charges have been accounted for. As on the reporting date, the outstanding balances are NIL.

(iii) During the year the Company has not made investments in, provided any guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any other parties.

(iv) According to the information and explanation given to us the Company has not granted any loans, or made investments, or given guarantees, or provided any security in connection with loan taken by other body corporate or persons as per the provisions of sections 185 and 186 of the Companies Act, 2013.

(v) In our opinion and according to the information and explanations given to us and based on our examinations of the books and records of the Company, the Company has not accepted any deposits or any amount deemed to be deposits from public covered under the directives issued by the Reserve Bank of India and provisions of sections 73 to 76 or any other relevant provisions of the Act and the rules framed thereunder.

(vi) The Central Government has specified maintenance of cost records under sub-section (1) of section 148 of the Act in respect of the products of the Company. We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

(vii) (a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees State Insurance, Income-tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Goods and Services Tax, Cess and other Statutory Dues with the appropriate authorities. According to the information and explanations given to us, there are no undisputed statutory dues outstanding for a period of more than six months from the date they became payable, as per books of accounts of the Company as at 31 st March, 2026.

(b) According to the information and explanations given to us, there are statutory dues which have not been deposited with the appropriate authorities on account of any dispute are detailed below and considered as Contingent Liabilities ( Refer Note No.16(1)):

Sr No Name of the Statute	Nature of Dues	Demand Amount (Rs. in Crore)	Period to which the amount relates	Forum where dispute is pending
1 Income Tax Act, 1961	Income Tax/ TDS/TCS	0.05	2017-18	ACIT, DHANBAD
		37.51	2014-15 to 2023-24	CIT DHANBAD
		29.70	2007-08 to 2019-20	CIT(A) DHANBAD
		25.06	2007-08 to 2016-17	CIT(A) TDS
		0.03	2010-15	JCIT TDS Dhanbad
2 JVAT ACT, 2005	Jharkhand VAT	2.49	2012-13	ACCT
		70.26	2006-07 to 2017-18	DCCT
		4.46	2006-07 to 2014-15	JCCT
		84.15	2014-15 to 2017-18	CCT/ Appellate
3 BST ACT, 1959	Bihar Sales Tax	2.97	2004-05 to 2006-07	DCCT
4 CST ACT, 1956	Central Sales Tax	1.73	2012-13	ACCT
		63.95	2002-03 to 2019-20	DCCT
		35.31	2005-06 to 2019-20	JCCT
		47.97	2006-07 to 2010-11	CCT/ Appellate
		0.50	2011-12	Tribunal Ranchi
5. WB PE Act, 1973 and WBREP Act, 1976	Rural Education & Primary Education Cess	8.25	1995-96 to 2009-10	WB Tribunal
		0.03	2010-11 to 2011-12	Special Commisssioner WB VAT Belghachia
6. MMDR ACT,1957	Royalty	27.99	1986-87 to 2014-15	Certificate Officer, Dhanbad
		4.47	2005-06	Ministry of Coal
		18.92	2000-01 to 2014-15	Jharkhand High Court
		1.10	1994-95	Supreme court
7. ED ACT,1948	Electricity Duty	2.19	2006-07 to 2018-19	ACCT
		2.12	2014-15 to 2015-16	DCCT
		18.86	2008-09 to 2015-16	JCCT Dhanbad
8. Finance Act, 1994	Service Tax	2.91	2015-16 to 2017-18	CESTAT KOLKATA
		1.90	2016-17 to 2017-18	Commissioner Appeals Ranchi
		0.64	July 2015 to March 2017	JC, Dhanbad
9 Central Excise Act, 1944	Excise Duty	6.36	2010-11 to 2017-18	The Commissioner of Central Excise (Appeals), Ranchi
		37.53	2010-11 to 2017-18	Tribunal
		2.64	2012-13 to 2014-15	Jharkhand High Court
10 SGST ACT, 2017	GST	100.45	2018-19 to 2021-22	Jharkhand High Court
		117.64	2017-18	Comm. Appeal
11 HOLDING TAX	Holding Tax	252.23	2015-16	Jharkhand High Court
TOTAL		1012.37

(viii) According to the information and explanations given to us, no transactions were related to the Company surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961) which have not been recorded in the books of accounts.

(ix) (a)The company has obtained working capital loan facilities from Bank during the year, against its fixed deposits and the same has been repaid during the financial year without any default.

(b) The company has not taken any term loans during the year nor there was any outstanding term loan at the beginning of the year.

(c) The company has not declared a wilful defaulter by any bank or financial institution or other lender during the year.

(d) The company has not raised any funds on short term basis during the year.

(e) 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 during the year.

(f) The company has not raised any loans during the year on the pledge of securities held in its subsidiaries, joint ventures or associate companies.

(x) (a)The issue of 46.57 crore shares i.e. 10 percent of the Paid-up Equity Share Capital of the company, during the financial year was under OFS (Offer for Sale) and the entire proceeds has been taken by the promoter Company of BCCL i.e. Coal India Limited. No money has been received by BCCL.

(b)The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.

(xi)(a)To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or no material fraud on the Company has been noticed or reported during the year, except the following cases of fraud on the Company by its employees vide letter dated 15.04.2026 received from vigilance Department.

Sl No	Case No	Brief of the case
Case-1	CB/15/2025 Registered on 25.06.2025	Alleged demand of Rs.25,000.00 as illegal gratification by Dhiraj Nishad, Clerk, Bastacolla Colliery from Shri Arbind Kumar Singh, S/O Shri Sheo Kumar Singh.
Case-2	CB/17/2025 Registered on 10.09.2025	Alleged Demand and acceptance of illegal gratification of Rs.20,000.00 from Shri Jagdish Saw, dumper operator under Lodna Area for issuing No-Due Certificate.

(b) No information has been received by us or come to our notice during the course of audit in relation to the report under sub-section (12) of section 143 of the Companies Act to be filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government during the year.

(c) According to the information and explanations given to us, including the representation made to us by the management of the Company, there is no whistle-blower complaint received by the Company during the year.

(xii) The Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.

(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Companies Act where applicable and details of such transactions have been disclosed in the standalone financial statements (Refer Note No. 16(2)) as required by the applicable Indian Accounting Standards (Ind AS-24), Related Party Disclosures specified under section 133 of the Act, read with Rule 7 of the Companies ( Accounts) Rules, 2024.

(xiv) (a) The Company has an internal audit system commensurate with the size and nature of its business.

(b) We have considered the reports of the Internal Auditors for the year under audit, issued to the company during the year, in determining the nature, timing and extent of our audit procedures. During the year it is noted that the Audit Committee of the company has directed the management to come up with all major observations raised by respective internal auditors of the areas and its head quarter along with their compliance status for the last three financial years i.e. from 2023-24 to 2025-26. Accordingly, the management has taken steps and they are in the process of determining the financial impact, if any, in the financial year 2025-26. The said process of ascertaining the financial impact has not yet been completed till the date of this audit.

(xv) The Company has not entered into any non-cash transactions with directors or persons connected with him, as covered under Section 192 of the Companies Act, 2013.

(xvi) (a) The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934).

(b) The company has not conducted any Non-Banking Financial or Housing Finance activities without a valid Certificate of Registration (CoR) from the Reserve Bank of India as per the Reserve Bank of India Act, 1934.

(c) The company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India.

(d) According to the information and explanations given to us by the management and as per our observation during the course of audit, we are in opinion that there is no core investment company within the group (as defined in the Core Investment Companies (RB) Directions 2016;

(xvii) The Company has not incurred cash losses in the financial year and in the immediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors during the year

(xix) On the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information accompanying the financial statements, the auditor s knowledge of the Board of Directors and management plans, in our opinion that no material uncertainty exists as on the date of the audit report that the Company is 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 liability of the Company. We further state that our reporting is based on the facts up to date of 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 has no projects other than ongoing projects. Therefore, compliance with the second proviso to sub-section (5) of section 135 of the said Act is not applicable to the Company.

(xxi) The Company is not required to prepare a consolidated financial statement, therefore. The provision of the Clause No. 3 (xxi) Order is not applicable to the Company

Annexure - III to the Independent Auditors Report to the members of the Bharat Coking Coal Limited, Dhanbad on the Standalone financial statements for the year ended 31 st March 2026.

[Referred to in Paragraph 3(g) of Report on Other Legal and Regulatory Requirements section of our Audit Report]

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

1. We have audited the internal financial controls over financial reporting of Bharat Coking Coal Limited ( the Company ) as of 31 st March 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

2. The Board of Directors of the Company 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

3. Our responsibility is to express an opinion on the Company s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note 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.

4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting 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 auditor s judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error.

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

Meaning of Internal Financial Controls over Financial Reporting

6. A Company s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial 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 Unit are being made only in accordance with authorizations of management of the Company; and

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

Inherent Limitations of Internal Financial Controls Over Financial Reporting

7. Because of the inherent limitations of internal financial controls with reference to the Standalone Financial Statements, 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.

Opinion

8. In our opinion, to the best of our information and according to the explanations given to us, 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, 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

For Nag & Associates	For Bharat Coking Coal Ltd
Chartered Accountants
Firm Regn. No: 312063E	Rajesh Kumar
(Madan Mohan Prasad)	Director (Finance) & CFO
Partner	DIN 11537673
Membership No. 074568
UDIN: 26074568SZIGIR6906
Date: 22.04.2026	Date: 22.04.2026
Place: Dhanbad	Place: Dhanbad