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

Tax litigations - provisions and contingencies

See note 27 to the standalone financial statements

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)