Auditor Report of Aanchal Ispat Ltd.

Mar 31, 2024

We have audited the accompanying standalone financial statement of AANCHAL ISPAT LIMITED

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

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
standalone financial statements, give the information required by the Company Act 2013 ("the Act") in the manner so
required and give a true and fair view in conformity with the Indian accounting Standards prescribed under section
133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other
accounting principles generally accepted in India of the of the state of affairs of the Company as at March 31, 2024;
and of the loss, its cash flows for the year ended on that date;

Basis for opinion

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

Basis for Qualified opinion

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

Emphasis of Matter

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

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

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

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

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

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

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

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

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

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

Our conclusion is not modified in respect of above matters.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
Standalone financial statements of the current period. These matters were addressed in the context of our audit of
the Standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters. We have determined the matter described below to be the key audit matter to be
communicated in our report.

Related party transactions

See note 26 to the standalone financial statements

The key audit matter

How the matter was addressed in our audit

We identified the accuracy and completeness of disclosure of related party transactions as set out in respective notes to the standalone Ind AS financial statements as a key audit matter due to: The significance of transactions with related parties during the year ended March 31, 2024.

Our procedures in relation to the disclosure of related party transactions included: 1. Obtaining an understanding of the Company''s policies and procedures in respect of the capturing of related party transactions and how management ensures all transactions and balances with related parties have been disclosed in the standalone Ind AS financial statements. 2. Obtaining an understanding of the Company''s policies and procedures in respect of evaluating arms-length pricing and approval process by the audit committee and the board of directors. 3. Agreeing the amounts disclosed to underlying documentation and reading relevant agreements, evaluation of arms -length, on as sample basis, as part of our evaluation of the disclosure.

Tax litigations - provisions and contingencies

See note 27 to the standalone financial statements

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

The Company''s board of directors is responsible for the preparation of the other information. The other information
comprises the information included in the Board''s Report including Annexures to Board''s Report, Business
Responsibility Report but does not include the IND AS financial statements and our auditor''s report thereon.

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

In connection with our audit of the IND AS financial statement, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the standalone financial statements
or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

Management''s Responsibility and Those charged with Governance for the Financial Statement

The Company''s Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 ("the
Act") with respect to the preparation of these financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in accordance with the accounting principles generally
accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. This
responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the
Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities;
selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of internal financial control, that were operating effectively
for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation
of the financial statements that give a true and fair view and are free from material misstatement, whether due to
fraud or error.

In preparing the IND AS financial statement, management is responsible for assessing the Company''s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.

The board of directors are also responsible for overseeing the Company''s financial reporting process.

Auditor''s Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the IND AS financial statement as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these IND AS financial statement.

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

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

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for
expressing our opinion on whether the company has adequate internal financial controls system in place and the
operating effectiveness of such controls.

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

• Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the IND
AS financial statement or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may
cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the IND AS financial statement, including the
disclosures, and whether the IND AS financial statement represent the underlying transactions and events in a
manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.

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

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

1) As required by the Companies (Auditor''s Report) Order, 2020 ("the Order") issued by the Central Government of
India in terms of sub-section (11) of section 143 of the Companies Act 2013, We give in the Annexure A on the
matters specified in paragraph 3 & 4 of the order.

2) As required by section 143(3) of the Act, we report that:

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

b) In our opinion proper books of account as required by law have been kept by the Company so far as
appears from our examination of those books except for the possible effects of the matters described in
basis of opinion section above and the matters stated in the paragraph (j)(vi) below on reporting under
Rule11(g) of the Companies (Audit and Auditors) Rules, 2014.

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

d) Except for the possible effects of the matters described in basis of opinion section above, in our opinion,
the aforesaid financial statements comply with the Ind AS Specified under Section 133 of the Act.

e) On the basis of written representations received from the directors as on 31 March, 2024, taken on
record by the Board of Directors, none of the directors is disqualified as on 31 March, 2024, from being
appointed as a director in terms of Section 164(2) of the Act.

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

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

h) With respect to the other matters to be included in the Auditor''s Report in accordance with the
requirements of section 197(16) of the Act, as amended, in our opinion and to the best of our information
and according to the explanations given to us, the remuneration paid by the Company to its directors
during the year is in accordance with the provisions of section 197 of the Act.

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

j) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our Information and
according to the explanations given to us:

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

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

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

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

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

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

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

vi. The reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is applicable from
1 April 2023. Based on our examination which included test checks, except for the instances
mentioned below ,the Company has used accounting softwares for maintaining its books of account,
which have a feature of recording audit trail (edit log) facility and the same has operated throughout
the year for all relevant transactions recorded in the respective software:

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

For Rajesh Jalan & Associates
Chartered Accountants

(Firm Registration No. : 326370E)

SD/-

(Rajesh Jalan)

Place : Kolkata Partner

Date : 30/05/2024 (ICAI UDIN: 24065792BKEXZD7899)

---

Mar 31, 2018

Report on the Financial Statement

We have audited the accompanying Ind AS financial statements of AANCHAL ISPAT LIMITED ("the company"), which comprises the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Standalone Ind AS Financial Statement

The Company''s Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

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

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

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Ind AS financial statements. 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. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the Ind AS financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company''s Directors, as well as evaluating the overall presentation of the Ind AS financial statements.

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

Opinion

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

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2018;

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

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

Report on the other Legal and regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act 2013, We give in the Annexure ''A'' statement on the matters specified in paragraph 3 & 4 of the order.

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

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

b) In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.

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

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

e) On the basis of written representations received from the directors as on 31 March, 2018, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2018, from being appointed as a director in terms of Section 164(2) of the Act.

f) With respect to adequacy of internal financial controls over financial reporting of the company and the operating effectiveness of such controls refer to our separate report in annexure ''B''

g) With respect to the other matters included in the Auditor''s Report and to our best of our information and according to the explanations given to us:

i) The Company does not have any pending litigations which would impact its financial position.

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

iii) No amount is required to be transferred to the Investor Education and Protection Fund by the Company as on 31 March, 2018.

The Annexure A referred to in paragraph 1 of the Our Report of even date to the members of

AANCHAL ISPAT LIMITED on the accounts of the company for the year ended 31st March, 2018.

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

1) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of information available.

(b) As explained to us, fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us, no substantial part of fixed asset has been disposed off during the year and therefore does not affect the going concern assumption.

2) (a) As explained to us, the stock is regularly verified by the management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us, the procedure for verification of stock followed by the management is reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion and on the basis of our examination of the records, the Company is generally maintaining proper records of its stocks. No discrepancies have been noticed on verification of stocks statement as compared to book records.

3) The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability partnerships or other parties covered in the Register maintained under section 189 of the Act. Accordingly, the provisions of clause 3 (iii) (a) to (c) of the Order are not applicable to the Company and hence not commented upon.

4) According to the information and explanations given to us, the company has not advanced any loans, including any loan represented by a book debt, to any of its directors or to any other person in whom the director is interested or given any guarantee or provided any security in connection with any loan taken by him or such other person. The company has not made any investments during the year. Therefore provisions of Clause 3(iv) of the Companies (Auditor''s Report) Order 2016 are not applicable. The company has not granted any loans or provided any guarantees or security to the parties covered under section 185 of Companies Act 2013.

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

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

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

b) The particulars of dues of sales tax, income tax, wealth tax, service tax, duty of customs, duty of excise, value added tax and cess as applicable as at 31st March 2018 which have not been deposited on account of a dispute are as follows -

Name of the Statute	Nature of Dues	Amount Involved	Period to which the amount relates	Forum where Dispute is Pending
The Central Excise Act, 1944	Excise Duty	Rs. 7,986,754/-	FY 2007 - 08	Customs & Central Excise, Service Tax Tribunal
Income Tax Act, 1961	Income Tax	Rs.19,278,200/-	FY 2011 - 12	CIT (A) - 1, Kolkata
Income Tax Act, 1961	Income Tax	Rs.3,233,690/-	FY 2012-13	CIT(A)-1, Kolkata
West Bengal Value Added Tax Act, 2003	VAT	Rs.2,52,57,225/-	FY 2012 - 13	Senior Joint Commissioner, Howrah Circle

8) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks & financial institutions. The Company has not taken any loan either from the government and has not issued any debentures.

9) Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer during the year under review. The company had utilized the money raised by way of term loan during the year for the purpose for which they were raised.

10) 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.

11) Based upon the audit procedures performed and the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act;

12) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.

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

14) Based upon the audit procedures performed and the information and explanations given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company and hence not commented upon.

15) Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.

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

“Annexure B" to the Independent Auditor''s Report of even date on the Financial Statements of AANCHAL ISPAT LIMITED

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

We have audited the internal financial controls over financial reporting of AANCHAL ISPAT LIMITED ("the Company") as of March 31, 2018 in conjunction with our audit of the Ind AS 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". 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 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.

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 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 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 company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s 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.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, 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 Raj Chandra & Assosiates

Chartered Accountants

Sd/-

(R. K. Agarwala)

Date: 30th May, 2018 Partner

Place: Kolkata (Firm Registration No. 326312E)

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Mar 31, 2015

We have audited the accompanying financial statements of Aartchal Ispat limited, which comprise the Balance Sheet as at 31st March 2015, the Statement of Profit and Loss, for the year then ended, and a summary of the significant accounting policies and other explanatory' information

MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Company's Board of Directors is responsible far the matters stated in Section 134(5) of the Companies Act, 2013 with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Ac-counts) Rules, 2014. 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(101 of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

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

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

OPINION

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid finan-cial statements give the information required bv the Act in the manner so required and give a due and fair view in. conformity with the accounting principles generallv accepted in India, of the state of affairs of the Company as at 31 March 2015, and its Profit and its C ash flows for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

I. As Required by the Companies (Auditor's Report) Order, 2015 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, We give in the Annexure a statement on the matters specified in the Paragraph 3 and 4 of the Order, to the extent applicable.

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

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

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

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

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

(e) On the basis of the written representations received from the directors as on 31/03/2015 taken on record by the Board of Directors, none of the directors is disqualified as 31/03/2015 from being appointed as a director in terms of Section 154 (2) of the Act.

(f) With respect to the other matters to be included in the Auditor' s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

t. The Company does not have any pending litigations which would impact its financial positions;

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

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

Reports under the Companies (Auditor's Report) Order, 2015 (CARO 2015)

The Annexure referred to in our Independent Auditors' Report to the members of the Company on the financial statements for the year ended 31 March 2015, we report that

i. In respect of its assets:

a. The Company has maintained proper records showing full particulars, including quantitative details and situation of lived assets.

b. The Company"s fixed assets have been physically verified by the management at regular intervals, having regard to the size of the company and the nature of its assets. The management has confirmed that no discrepancies have been found.

ii. In respect of its inventories:

a. The company has also conducted physical verification of inventory at reasonable intervals during the year.

b. In our opinion and according to explanation given to- us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

c. The company is also maintaining proper records of inventory and there have been no material discrepancies.

iii. The company has granted loans, unsecured to companies, firms or other parties covered in the register main- tained under section 189 of the companies Act, 2013 ("The Act").

a. In respect of loans granted, repayment of the principal amount is as stipulated and the payment of interest have been regular.

b. There is no overdue amount of any loans, secured or unsecured to companies, firms or other parties, covered in the registered maintained under section 189 of the Companies Act.

iv. In. our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the Company and the nature of its business with regard to

purchase of fixed assets, purchase of inventory and for the sale of goods. We have not observed any major weakness in the internal control system during the course of the audit.

v. In our opinion and according to the information and explanations given to us the Company has not accepted any deposits from the public.

vi. The Centra] Government has not prescribed the maintenance of cost records under Section 148(1) of the Act, for any of the services rendered by the company-

vii. In respect of statutory dues:

a. Undisputed statutory dues including Provident Fund, , Employees State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, duty of customs, duty of excise, value added tax or cess and any other statutory dues with the appropriate authorities though there has been a slight delay in a few cases.

b. According to the records of the company, there are no dues of employees state insurance, sales tax, wealth tax, duty of customs, duty of excise, value added tax or cess and any other statutory dues with the appropriate authorities that have not been deposited on amount of any dispute except following.

Related to Authority When Case is Pending Financial Year

Excise- Commission of Central Excise,Haldia 2007 2008 Duty Commissonerate

Income Income Tax Officer, Ward 1(4), Kolkzla 2010-2011 Tax

Income Commissioner of income lax, Kolkata - 1 2008-2009 Tax

April 2003 Provident Assistant Provident fund Commissioner, to Febru- Fund Howrah ary 2013

Income DCIT, Circle 3(1), Koikata 2011-2012 lax

Related to Disputed Remarks Amount

Excise- 10,486,754.00 Appeal filed by the company Duty on 13-07-2012 before Customs Exrise Service Tax Tribunal

Income 10,618,810.00 Appeal filed by the company on Tax 29-04-2014 before

Income 1,142344.00 Appeal filed by the company on Tax 26-05-2014 before Commissioner or Income lax (Appeals) - 1, Kolkata

Appeal filed by the Company on 07-07-2014 before Provident 259,486.00 Employees Provident fund Fund Appellate Tribunal, Ministy Labour & Employment Government of India, New Delhi

Income 19,273,200.00 Appeal filed by the company on lax 16-04-2015 before the Commissioner of Income Tax (Appeal$-1 -1, Kolkata

c. According to the records of the company there are no amounts that are due to be transferred to Investors Education and Protection Fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made thereunder.

viii. The Company does not have any accumulated losses at the end of the financial year and has not incurred any cash losses in the financial year and in the immediately preceding financial year.

ix. Based on our audit procedures and according to the information and explanations given, to us, we are of the opinion that the company has not defaulted in repayment of dues to financial institutions, banks, and debenture holders.

x. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from bank or financial institution. Therefore the para 3(x) of the order is not applicable to the company.

xi. According to the information and explanations given to us, in our opinion, the terms loans were applied for the purpose of which they were obtained.

xii. Eased upon the audit procedures performed for the purpose of reporting the true and fair nature of the financial statements and as per the information and explanations given by the management, we report that no fraud on or by the company has been noticed or reported during the course of audit.

R MODI & CO. (Chartered Accountants) Firm Reg. No.: 327727E

RANJIT KUMAR MODI (Partner) Kolkata Membership No.: 062254 Date: 30/05/2015