We have audited the standalone financial statements of Nova Iron and Steel Limited {"the Company"),
which comprise the balance sheet as at March 31, 2025, and the statement of Profit and Loss,
statement of changes in equity and statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies and other explanatory
information.

In our opinion and to the best of our information and according to the explanations given to us, except
for the effects of the matter described in the Basis of Qualified Opinion section of our report, the
aforesaid standalone financial statements give the information required by the Companies Act, 2013
In the manner so required and give a true and fair view In conformity with the accounting principles
generally accepted In India, of the state of affairs of the Company as at March 31, 2025, and its profit,
changes in equity and Its cash flows for the year ended on that date.

Basis of Qualified Opinion

a) The Company has not facilitated us with direct balance confirmations from outstanding trade
receivables of Rs. 958.59 Lakhs, trade payables of Rs. 173.72 Lakhs, security deposits of Rs. 176.67
Lakhs, advances from customers of Rs. 374.96 Lakhs and advances to suppliers of Rs. 769.07 Lakhs
(including capital advances of Rs. 42.86 Lakhs) as a result of which reconciliation process and
consequential adjustments (if any) has not been carried out. Accordingly, we are unable to
comment on the carrying value of such items in the financial statements and their possible effects
on the financial position of the company. Further, with regards to the security deposits of the
company, the company In the absence of sufficient Information, were not able to comply with the
requirements of Ind AS 109 in measuring such deposits at amortised cost. Accordingly, we cannot
comment on the carrying amount of these balances and their consequential impact on financial
position of the company in the absence of sufficient information.

b) We draw your attention to the Note No, 17, referring to the unsecured borrowings of the company
from other parties aggregating to Rs. 7,521.27 Lakhs outstanding as at March 31, 2025 in respect
of which confirmations from the respective lenders have not been facilitated. Further, due to non¬
availability of loan agreements and other audit evidence for the borrowings of Rs. 7,521.27 Lakhs
outstanding as at March 31, 2025, we cannot comment on the adjustments, if any, that may be
required to carrying value of the aforesaid balances in the standalone financial statements along
with impact on finance costs, classification into current and non-current borrowings, secured and
unsecured borrowings and related disclosures as required under Schedule - III to the Companies
Act, 2013 and applicable Ind AS.

c) We draw your attention to the Note No. 7, referring to the investments held by the company
aggregating to Rs. 290.31 Lakhs as at balance sheet date, the company has not determined fair
value of such investments at balance sheet date resulting in non-compliance of Ind AS 109

d) The Company has not established an internal control system to identify suppliers registered under
the Micro, Small and Medium Enterprises Development Act, 2006 (M5MED Act). In the absence of
such a system, we are unable to comment on the amount of interest, if any, payable under the

provisions of the M5ME0 Act, 2006 end the appropriateness of disclosure requirements related to
suppliers registered under MSMED Act, 2006 in the standalone financial statements.

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section
143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described
in the Auditor's Responsibilities for the Audit of the 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 financial statements under the provisions of the Companies Act, 2013 and the Rules 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 opinion.

Emphasis of Matter

a) We draw attention to Note No. 34(b) of the standalone financial statements, which describes that
one of the financial creditors of the company has filed an application against the company under
the Insolvency and Bankruptcy Code, 2016, before the Hon'ble National Company Law Tribunal
(NCLT). The matter is currently sub-judice and the outcome of the proceedings is uncertain as at
the reporting date.

Our opinion is not modified in respect of aforesaid matter.

Material uncertainty relating to going concern

The Company's current liabilities exceed its current assets by Rs. 9,822.71 Lakhs as at the balance
sheet date. Further the Company's net worth as at March 31, 2025 Is (-) Rs. 1,130.00 lakhs.
Furthermore, the company has a pending application u/s 7 of the Insolvency and Bankruptcy Code,
2016. These Findings, put together, give rise to the apprehension of company's ability to continue as
going concern. Nevertheless, the company has prepared its standalone financial statements on going
concern basis for the reasons stated in Note No. 45 of the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, 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.

information Other than the Financial Statements and Auditor’s Report Thereon

The Company's Board of Directors is responsible for the other information. The other information
comprises the information included in the Directors' report but does not include the financial
statements and our auditor's report thereon.

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 financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with
the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially
misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, wc arc required to report that fact. We have nothing to report in this regard.

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

The Company's 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 standalone financial
statements that give a true and fair view of the financial position, financial performance, changes in
equity and cash flows of the Company in accordance with the accounting principles generally accepted
in India, including the Indian Accounting Standards specified under section 133 of the Act. 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.

In preparing the financial statements, the Board of Directors is responsible for assessing the
Company's ability to continue as a going concern, disclosing, as applicable, matters related to going

concern and using the going concern basis of accounting unless the Board of Directors either intends
to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the company's financial reporting
process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements 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 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 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
detectings material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.

- Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that arc 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 materia! uncertainty exists, we are required to draw
attention In our auditor's report to the related disclosures In the 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 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 financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions and
events in a mannerthat achieves fair presentation.

We communicate with those charged with governance regarding, among cither 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.

Report on Other Legal and Regulatory Requirements

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" statement on the matters specified in paragraphs 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 except that the company has not used
accounting software which has a feature of recording audit trail of each and every transactions.

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

d) In our opinion, the aforesaid Ind AS standalone financial statements comply with the Indian
Accounting Standards specified under Section 133 of the Act, read with Companies (Indian
Accounting Standards) Rules, 2015 as amended, except for the departure from certain Indian
Accounting Standard as disclosed under the aforesaid financial statements and related
qualification under Basis of Qualified Opinion section of our report.

e) The observations or comments on the financial transactions or matters which may have adverse
effect on the functioning of the company have been reported under Basis of Qualified Opinion
and Emphasis of Matter section of our report.

f) On the basis of the written representations received from the directors as on March 31, 2025
taken on record by the Board of Directors, none of the directors is disqualified as on March 31,
2025 from being appointed as a director in terms of Section 164(2) of the Act

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

h) In our opinion, the management remuneration for the year ended 31 March, 2025 has been paid
/ provided by the company to its director in accordance with the provisions of Section 197 read
with Schedule V to the Act.

i) 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 pending litigation under contingent liabilities under Note No. 34
of the aforesaid financial statements.

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

(lil)There has been no delay in transferring amounts, required to be transferred, to the Investor
Education and Protection Fund by the Company (if any).

(iv) (i) The management has represented that, to the best of its knowledge and belief, 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 persons or entities, including
foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or
entities Identified In any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the
company or provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries

(II) The management has represented, that, to the best of Its knowledge and belief, no funds
have been received by the company from any persons or entities, including foreign entities
("Funding Parties"}, with the understanding, whether recorded in writing or otherwise, that the
company shall, directly or indirectly, lend or Invest In other persons or entities identified in any
manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Party or provide
any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries; and.

(iii) Based on such audit procedures as 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 (iv) (i) and (iv) (ii) contain any material mis-statement.

(iv) Thc company has neither declared nor paid any dividend during the year.

(v) The company has not used accounting software for maintaining Its books of accounts which
has a feature of recording audit trail (edit log) facility during the year. Further, in the absence of
required accounting software, rest of the matters required under this rule has not been
commented upon.

For and on behalf of
MNRS & ASSOCIATES

Chartered Accountants
FRN:018340N

Neeraj Kumar Agarwal, FCA

Partner
M. No: 503441

UDIN: 25503441BMOBHC4742

Place: New Delhi
Date: 04 July 2025