The Board of Directors of the Company is pleased to present this 39th (Thirty Ninth Annual Report), along with the financial statements
of India Homes Limited, for the financial year ended March 31,2026.

A brief summary of the Company's performance is given below:

1. FINANCIAL HIGHLIGHTS:

The summarized financial results of the Company for the financial year 2025-26 are given hereunder:

(Amount Rs. In Lacs)

2. OPERATIONS / COMPANY'S FINANCIAL PERFORMANCE:

The manufacturing activities of the Company, including job work operations, have remained non-operational for a considerable
period. Consequently, the Gross Revenue of the Company during the year under review stood at Rs.2450.30 Lakh (comprises
real estate activities Rs. 2435 Lakh & sale of steel scrap Rs .25.30 Lakh), as against Rs.0.75 Lakh in the previous financial year,
which primarily comprised of proceeds from the sale of steel scrap, representing an increase of Rs.2449.55 Lakh; profit before
exceptional items and tax stood at Rs.1865.54 lakh for the year under review as compared to Loss of Rs.1565.28 lakh for the
previous year representing an increase of Rs.3430.82Lakh; and the total comprehensive income stood at Rs.1863.48 lakh as
compared to Rs.1373.13 Lakh for the previous year representing an increase of Rs.3428.76 Lakh.

The Company's factory premises had been under the possession of Kotak Mahindra Bank Limited in exercise of its rights as a
secured lender. During the year, the Management successfully negotiated and concluded a One-Time Settlement (OTS) with
the Bank for settlement of its outstanding dues.

Dombivli Nagari Sahakari Bank Limited (DNSB), another secured lender of the Company, had assigned its secured debt to JC
Flowers Asset Reconstruction Private Limited. Following the settlement of dues owed to Kotak Mahindra Bank Limited, JC
Flowers Asset Reconstruction Private Limited became entitled to exercise the rights of a secured creditor, including possession-
related rights over the Company's factory premises.

Further, pursuant to the approval accorded by the members at the 36th Annual General Meeting, the Management is
undertaking the disposal of the Company's plant and machinery at the best realizable market value with a view to optimizing
value realization and supporting the Company's restructuring and revival initiatives.

During the year, the Company also initiated its strategic transition towards real estate development activities, which is expected
to form the core business of the Company going forward. This transition is aimed at reviving operations and creating long-term
value for stakeholders.

3. CHANGE IN THE NATURE OF BUSINESS:

The Company was previously engaged in the manufacturing and trading of steel products. However, the steel business had
remained non-operational for a considerable period.

During the year under review, the Company underwent a strategic change in its nature of business. In line with the
Management's efforts to revive the Company's operations and capitalize on emerging market opportunities, the Company has
transitioned its focus from the steel sector to real estate development activities. The Company is now engaged in the
development of residential and commercial real estate projects, reflecting its long-term growth strategy and alignment with
prevailing market dynamics.

To further this objective, the Board has entered into definitive agreements with Lloyds Realty Developers Limited and Smartquip
Properties Private Limited for the development and monetization of the Company's land situated at Village Vihari, Taluka
Khalapur, District Raigad. This initiative marks a significant step in the Company's business revival and is expected to create
sustainable value for stakeholders.

4. CHANGE IN NAME OF THE COMPANY

Pursuant to the requisite approvals and in alignment with the nature of its business, the name of the Company was changed from
India Steel Works Limited to India Homes Limited during FY 2025-26.

5. SUBSIDIARIES, ASSOCIATES, JOINT VENTURE COMPANIES:

The Company does not have any subsidiary as on the date of this Report.

During the year under review, the Company incorporated LLOYDS IHL LLP and became a Designated Partner therein. The total
capital contribution of the LLP is '1,00,000, of which the Company's contribution amounts to ' 36,400, representing a 36.40%
stake. The other Designated Partners are Lloyds Realty Developers Limited and Smartquip Properties Private Limited, holding
60.00% and 3.60% contributions, respectively.

LLOYDS IHL LLP has been formed for the development and monetization of the Company's land situated at Village Vihari,
Taluka Khalapur, District Raigad. This initiative constitutes an important step in the Company's revival strategy and is expected
to create long-term value for all stakeholders. The proposed project will be entirely financed by Lloyds Realty Developers
Limited.

Since LLOYDS IHL LLP was incorporated during the year and commercial operations have not yet commenced, there are no
financial statements or operational results to report for the LLP for the year under review.

6. TRANSFER TO RESERVES:

The Board does not propose to transfer any amount to reserves from the profits of the Company for the financial year 2025-26.

7. DIVIDEND:

In view of the accumulated losses, the Directors regret their inability to recommend any dividend on the Equity Shares of the
Company for the year under review.

However, the Directors recommend a dividend at the rate of 0.01% on the total paid-up Preference Share Capital of the
Company for the financial year ended 31st March, 2026. The dividend will be payable to those Preference Shareholders whose
names appear in the Register of Members as on the Book Closure Date. The total dividend amounts to Rs. 64,185/-, inclusive of
tax on distributed profits.

8. SHARE CAPITAL:

The Company’s Authorised Share Capital during the financial year ended March 31,2026, was increased from '107,00,00,000/-
to '120,50,00,000/- (Rupees One Hundred Twenty Crores Fifty Lakh only), comprising ' 56,00,00,000/- (Rupees Fifty-Six
Crores only) divided into Equity Shares of Re. 1/- (Rupee One only) each and ' 64,50,00,000/- (Rupees Sixty-Four Crores Fifty
Lakh only) divided into 6,45,00,000 (Six Crores Forty-Five Lakh) Preference Shares of Rs. 10/- (Rupees Ten only) each.

The Company’s paid-up equity share capital remain unchanged at Rs.3980.81 Lakh comprising Rs. 3980.81 Lakh equity shares
of Re.1/- (Rupee one) each whereas the paid-up preference share capital of the Company for the financial year ending March
31, 2026 was 6,418.59 Comprising 20,00,000 14% Cumulative Redeemable Preference shares, Rs. 5,36,71,310 0.01%

Cumulative Redeemable Preference shares of Rs. 10/- each without voting rights & of 85,14,574 0.01% Cumulative
Redeemable Preference shares (Option Series) of Rs.10/- each without voting rights.

The company is in the negotiations with the preference shareholders for revised terms of redemption.

8.1 EQUITY SHARES WITH DIFFERENTIAL RIGHTS:

The Company has not issued any equity shares with differential rights during the year under review and hence no information as
per provisions of Rule 4(4) of the Companies (Share Capital and Debenture) Rules, 2014 is furnished.

8.2 SWEAT EQUITY SHARES:

The Company has not issued any sweat equity shares during the year under review and hence no information as per provisions
of Rule 8(13) of the Companies (Share Capital and Debenture) Rules, 2014 is furnished.

8.3 EMPLOYEE STOCK OPTION SCHEME AND EMPLOYEE STOCK PURCHASE SCHEME:

The Company has not issued any equity shares under employee’s stock option / purchase scheme during the financial year.

9. DEPOSITS:

During the year under review, the Company has not accepted any deposits from the public or shareholders under the applicable
provisions of the Companies Act, 2013 and the rules made thereunder. Accordingly, no amount remains outstanding as of the
end of the financial year.

10. MATERIAL CHANGES AND COMMITMENTS:

Except as disclosed elsewhere in this report, no material changes and commitments which could affect the Company’s financial
position, have occurred between the end of the financial year of the Company and date of this report.

11. INTERNAL FINANCIAL CONTROLS:

Your Company has internal financial controls with reference to financial statements. Risk management and internal control
frameworks are designed and implemented to manage rather than completely eliminated the risk of failure to achieve business
objectives. During the year under review, observations has been received from the Statutory Auditors as mentioned in the
Statutory Auditors Audit Report.

During the financial year, the Company did not carry out any significant business operations and its activities were limited
primarily to maintaining its corporate status and complying with statutory and regulatory requirements. The transactions
undertaken during the year mainly comprised receipt of financial support from directors and promoter group entities and related
accounting and compliance activities.

Considering the limited scale and nature of the Company's activities during the year, there was limited scope for an extensive
internal audit function. Nevertheless, the Board recognizes the importance of a robust control environment and has taken steps
to strengthen the maintenance of accounting records, supporting documentation and monitoring controls. The Company has
also enhanced the review and oversight of related party transactions through more frequent review by the Audit Committee.

11.1 INTERNAL CONTROL SYSTEMS:

Adequate internal control systems commensurate with the nature of the Company’s business, size and complexity of its
operations are in place and have been operating satisfactorily. Internal control systems comprising of policies and procedures
are designed to ensure reliability of financial reporting, timely feedback on achievement of operational and strategic goals,
compliance with policies, procedure, applicable laws and regulations. Internal control systems are designed to ensure that all
assets and resources are acquired economically, used efficiently and adequately protected.

12. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS:

There are no significant and material orders passed by the Regulators/ Courts which would impact the going concern status of
the Company and its future operations except those mentioned, if any, herein after in the report/annexures forming part of this
report. The proceedings initiated/pending against the Company under the Insolvency and Bankruptcy Code, 2016 provided
elsewhere in this report.

13. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES:

All the transactions/ contracts/ arrangements of the nature as specified in Section 188(1) of the Companies Act, 2013 entered by
the Company during the year under review with related party(ies) are in ordinary course of business and on arm’s length. Kindly
refer the financial statements for the transactions with related parties entered during the year under review.

The Company has made Related Party Transactions, as approved by the non- interested shareholders at the 38th Annual
General meeting of the Company. Required disclosures are made in Form No. AOC-2. Annexure-3.

On the recommendation of the Audit Committee, the Board of Directors has a Policy on Materiality of Related Party Transaction
and dealing with Related Party Transactions which is also uploaded on the website of the Company www.indiahomesltd.com
under the head ‘Investor Relations’ and the web link is https://www.indiahomesltd.com/#governance/policies

The Policy envisages the procedure governing related party transactions required to be followed to ensure compliance with the
applicable laws and regulations as well as to ensure that the Related Party Transactions are managed and disclosed in
accordance with the legal and accounting requirements. All Related Party Transactions that were entered into during the
financial year were on arm's length basis, in the ordinary course of business and were in compliance with the applicable
provisions of the Act and the Listing Regulations.

All Related Party Transactions are placed before the Audit Committee for review and approval. Prior omnibus approval of the
Audit Committee is obtained on an annual basis for the transactions which are planned/ repetitive in nature and omnibus
approvals are taken as per the policy laid down for unforeseen transactions.

Related Party Transactions entered into pursuant to the omnibus approval so granted are placed before the Audit Committee for
its review on a quarterly basis, specifying the nature, value and terms and conditions of the transactions. All the Related Party
Transactions under IndAS-24 have been disclosed at the standalone financial statements forming part of this Annual Report.

14. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:

The company has not provided any loan or guarantee directly or indirectly to any person or body corporate, during the year under
review. The details of Investment, if any, covered under section 186 of the Companies Act, 2013 are provided in the Financial
Statements as at 31st March, 2026.

15. BOARD OF DIRECTORS & KEY MANAGERIAL PERSONNEL:

15.1 Re-appointment of Director liable to retire by rotation:

In accordance with the provisions of the Companies Act, 2013 read with the Articles of Association of the Company Mr. Varun S.
Gupta (02938137) retires from the office by Rotation, and being eligible, offers himself for reappointment. The Board
recommends the members his appointment as a Director of the Company liable to retire by rotation.

15.2 Appointment / resignation of independent Director:

Based on the recommendation of the Nomination and Remuneration Committee, Mr. Mohamed Ali Altaf Furniturewala (DIN:
02878231) was appointed as an Additional Director (Non-executive independent category) effective February 5, 2026. Further,
the shareholders of the Company, at the Extra Ordinary General Meeting held on Monday, February 23, 2026, approved his
appointment as an Independent Director of the Company for a period of five years, not liable to retire by rotation, with effect from
February 5, 2026.

However, Mr. Furniturewala resigned from the position of Independent Director due to personal reasons with effect from April 20,
2026.

15.3 Key Managerial Personnel (‘KMP’):

In terms of the provisions of Sections 2(51) and 203 of the Act, the following are the KMPs of the Company:

Mr. Sudhir H. Gupta, Executive Chairman.

Mr. Varun S. Gupta, Managing Director.

Mr. Siddharth S. Gupta, Jt. Managing Director
Mr. Nilesh Matkar, Chief Financial Officer.

Mr. Dilip Maharana, Company Secretary & Compliance officer.

16. DISCLOSURES RELATED TO THE BOARD, BOARD COMMITTEES & POLICIES:

16.1 Board Meetings:

The Board of Directors met eight (8) times during the financial year under review. The gap between two consecutive meetings
was within the period prescribed under the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015.

The Committees of the Board generally held their meetings on the same day as the Board meetings.

Details regarding the composition of the Board and its Committees, the number of meetings held during the year, and the
attendance of Directors at such meetings are provided in the Corporate Governance Report, which forms part of this Annual
Report.

16.2 Directors Responsibility Statement:

In terms of Section 134(5) of the Companies Act, 2013, in relation to the audited financial statements of the Company for the year
ended March 31,2026, the Board of Directors hereby confirms:

i. That in the preparation of the annual financial statements for the year ended March 31,2026, the applicable accounting
standards have been followed along with proper explanation relating to material departures, if any;

ii. That such accounting policies, as mentioned in the Financial Statements as ‘Significant Accounting Policies’ have been
selected and applied consistently and judgments and estimates have been made that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the company as at March 31,2026 and of the Loss of the Company for the
year ended on that date;

iii. That proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud
and other irregularities;

iv. That the annual financial statements have been prepared on a going concern basis;

v. That proper internal financial controls were in place and that the financial controls were adequate and were operating
effectively;

vi. That proper system to ensure compliance with the provisions of all applicable laws were in place and were adequate and
operating effectively.

16.3 Nomination and Remuneration Committee:

A Nomination and Remuneration Committee is in existence in accordance with the provisions of sub-section (1) of Section 178 of
the Companies Act, 2013. Kindly refer section on Corporate Governance for matters relating to constitution, meetings, functions
of the Committee; and the remuneration policy formulated by this Committee.

16.4 Audit Committee:

The Committee has adopted a Charter to govern its operations. In line with the recommendations of the Audit Committee and
pursuant to Section 177 of the Companies Act, 2013, the Board has formulated a policy for the selection, appointment, and
remuneration of both the Statutory Auditors and the Internal Auditor. More details of the same are given in the Corporate
Governance Report.

16.5 Corporate Social Responsibility Committee:

A committee to deal with the matters relating to Corporate Social Responsibility is in existence in accordance with the Section
135 of the Companies Act, 2013. The details of the composition, meetings, and functions of the Committee etc., are given in the
Corporate Governance Report. However, during the year under review, due to the financial constraints and the overall state of
affairs, the Company has not undertaken any CSR initiatives, in accordance with the provisions that exempt companies
incurring losses from mandatory CSR expenditure.

16.6 Vigil Mechanism for the Directors and Employees:

In compliance with the provisions of Section 177(9) of the Companies Act, 2013, the Board of Directors of the Company has
framed the “Whistle Blower Policy” as the vigil mechanism for Directors and employees of the Company.

This Policy covers misuse or abuse of authority, fraud or suspected fraud, violation of company rules, manipulations, negligence
causing danger to public health and safety, misappropriation of monies and other matters or activity on account of which the
interest of the Company is affected and formally reported by whistle blowers. The Whistle Blower Policy of the Company has
been uploaded and can be viewed on the Company's website, www.indiahomesltd.com at investors relations section. The web
link is: https://www.indiahomesltd.com/#governance/policies

16.7 Risk Management Policy:

The Company has a risk management policy to identify, mitigate elements of risk, if any, which in the opinion of the Board may
threaten the existence of the company. The Board of Directors and senior management team assess the operations and
operating environment to identify potential risks and take necessary mitigation actions.

16.8 Nomination & Remuneration Policy:

The Board of Directors have framed a Nomination, Remuneration Policy (‘Policy’) which lays down a framework for
Remuneration of Directors, Key Managerial Personnel and Senior Management of the Company. The Policy broadly lays down
the guiding principles, philosophy and the basis for payment of remuneration to Executive and Non-Executive Directors
(including Independent Directors) (by way of Sitting Fees and Commission), Key Managerial Personnel, Senior Management
and payment of remuneration to other employees. More details of the same are given in the Corporate Governance Report.

16.9 Annual performance Evaluation of Directors, Committees and the Board:

The Nomination and Remuneration Committee of the Board has formulated a Performance Evaluation Framework, under which
the Committee has identified criteria upon which every Director, every Committee, and the Board as a whole shall be evaluated.
During the year under review the said evaluation had been carried out. The manner in which the evaluation was carried out has
been explained in the Corporate Governance Report.

The Non-Executive Independent Directors of the Company met on 4th February, 2026, without the presence of Non-Executive
Non-Independent Directors and members of the management to review the Performance of Non-Executive Non-Independent
Directors and the Board of Directors as a whole; review the Performance of the Chairman and Managing Director of the
Company and to assess the quality, quantity and timeliness of flow of information between the management and the Board of
Directors. The Performance Evaluation of the Non-Executive Independent Directors was carried out by the entire Board.

17. Familiarization Programme for Directors:

Every new Director including Independent Director of the Board attends an orientation program. To familiarize the new Director/
Independent Director with the strategy, operations and functions of our Company, the Executive Directors/ Senior Managerial
Personnel make presentations to the new Director about the company's strategy, operations, product and service and markets,
organization structure, human resources, technology quality, facilities and risk management. More details of the same are given
in the Corporate Governance Report.

17.1 Particulars of Employees and Remuneration:

Disclosure with respect to the remuneration of Directors and employees as required under Section 197 of the Companies Act
and Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 has been provided in
Annexure-6 attached herewith and forms part of this report. The information required pursuant to Section 197 of the Companies
Act read with Rule 5(2) & (3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in
respect of employees of the Company is provided in a separate exhibit which is available on the website of the Company
https://www.indiahomesltd.com, under the section ‘Investor relations’, https://drive.google.com/file/d/1x-
os3Vka3ozVNTgKpQpv6PmFpunlGUCT/view?usp=drive link

18. OTHER DISCLOSURES:

Other disclosure as per provisions of Section 134 of the Companies Act, 2013 read with Companies (Accounts) Rules, 2014 are
furnished as under:

18.1 Annual Return:

Pursuant to the provisions of Section 134(3)(a) of the Companies Act, 2013, the Annual Return for the financial year ended

March 31, 2026 is available on the website of the Company at https://www.indiahomesltd.com, under the section ‘Investor
relations’. The weblink is https://www.indiahomesltd.com/#financials/annual-returns

18.2 Insolvency and Bankruptcy Code, 2016:

The Company has not made any application under Bankruptcy Code. There are transactions requiring disclosure or reporting in
respect of matters relating to pendency of any proceeding against the Company under the Insolvency and Bankruptcy Code,
2016 before National Company Law Tribunal (NCLT) Mumbai, are as follows:

18.3 Conservation of energy, technology absorption and foreign exchange earnings and outgo:

The particulars as required under the provisions of Section 134(3) (m) of the Companies Act, 2013 read with Rule 8 of the
Companies (Accounts) Rules, 2014 in respect of conservation of energy and technology absorption have not been furnished
considering the nature of activities undertaken by the Company during the year under review. The details of foreign exchange
earnings and outgo during the year under review is as under: Nil

18.4 Compliance with Secretarial Standards:

The Company is in compliance with the mandatory Secretarial Standards.

18.5 Unclaimed and Unpaid Dividends, and transfer of shares to IEPF:

Kindly refer section on Corporate Governance, under head ‘Unclaimed and Unpaid Dividends, and transfer to Shares of IEPF’
for the amounts of unclaimed and unpaid dividends lying with the Company.

19. AUDITORS:

19.1 Statutory Auditors & Audit Report:

M/s. Laxmikant Kabra & Co LLP, Chartered Accountants, having Firm Registration No.: 117183W / W100736 reappointed as the
Statutory Auditors of the Company for the second consecutive term of three years, from the conclusion of the 36th Annual
General Meeting till the conclusion of this 39th Annual General Meeting, to examine and audit the accounts of the Company.

Following the completion of tenure of existing Statutory Auditors, on the basis of recommendation of Audit Committee, the Board
at its meeting held on 15th May,2026 has approved and recommended the appointment of CGCA & Associates LLP, Chartered
Accountants (FRN: 123393W/W100755) as the Statutory Auditors of the Company for a term of 1 (One) year effective from the
conclusion of this (39th) Annual General Meeting to the conclusion of the 40th Annual General Meeting of the Company, subject
to the approval of the shareholders in the ensuing 39th Annual General Meeting of the Company.

The qualifications, reservations or adverse remarks or disclaimers made by the Statutory Auditor in the Statutory Audit Report
issued by him to the members of the Company, are as follows:

A. Details of Audit Qualifications/ Reservations or Adverse Remarks:

1. Disclaimer of Opinion:

We were engaged to audit the accompanying Annual Financial Results of INDIA HOMES LIMITED (“the Company”) for the
year ended March 31,2026 and the Balance Sheet and Statement of Cash Flows as at and for the year ended on that date,
attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 and Regulation 52 of
the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (“Listing Regulations”).
Because of the significance of the matters described in the section titled “Basis for Disclaimer of Opinion” and considering
the possible cumulative effects of such matters, we were unable to obtain sufficient and appropriate audit evidence to
provide a basis for an audit opinion on the accompanying financial statements. Accordingly, we do not express an opinion
on the accompanying financial statements of the Company for the year ended March 31,2026.

2. Basis for Disclaimer of Opinion:

a. The primary accounting software (SAP) and underlying accounting records maintained therein were not accessible
during the course of audit. The Company has prepared books of account using alternative software based on
opening balances derived from previously audited financial statements and backup records made available to us by
the management. In absence of complete access to original accounting records, system-generated audit trails, and
supporting electronic data maintained in the primary accounting system, we were unable to obtain sufficient and
appropriate audit evidence regarding the completeness, accuracy, authenticity, and integrity of the books of account
and related financial information. Consequently, we are unable to determine the consequential impact, if any, of the
aforesaid matter on the accompanying financial statements.

b. Inventories amounting to '13,696.20 Lakhs have not been valued at lower of cost and net realizable value, which is
not in compliance with the requirements of Ind AS 2 “Inventories” and the significant accounting policies followed by
the Company. Further, the Company has not carried out proper physical verification, identification of obsolete/non-
moving inventories, or assessment of realizable value of such inventories. Based on the information and records
made available to us, work-in-progress amounting to '10,608.94 Lakhs and raw materials amounting to '1,867.67
Lakhs appear recoverable substantially at scrap value. Further, in absence of quantitative records, valuation
workings, aging analysis and supporting documents relating to finished goods, stock-in-trade, stores and spares
amounting to '1,219.60 Lakhs, we were unable to determine the recoverable value and carrying value of such
inventories. Consequently, we are unable to determine the extent of adjustments required in respect of valuation of
inventories, cost of materials consumed, losses, and consequential impact on the accompanying financial
statements. Pending determination of the same, we are unable to determine the consequential impact, if any, on
inventories, losses, net worth and other elements of the accompanying financial statements.

c. During the year, the Company has taken over work-in-progress (WIP) amounting to '1.67 Crores from a Director of
the Company and has recognized the same under Current Assets in the financial statements. As informed to us and
based on records made available for our verification, the said WIP substantially comprises indirect expenditure and
administrative costs incurred over a period of time and does not represent any independently identifiable tangible
asset as at the balance sheet date. Further, payment/consideration has been made by the Company to the Director
against such takeover of WIP. The valuation of the said WIP is primarily supported by an architect’s certificate
furnished by the management. However, in absence of independently verifiable documentary evidence
demonstrating the nature, recoverability, realizability, future economic benefits and basis of capitalization of such
expenditure, we were unable to obtain sufficient and appropriate audit evidence regarding the appropriateness of
recognition and valuation of the aforesaid WIP as an asset of the Company. Accordingly, we are unable to determine
whether any adjustment is required to the carrying value of such WIP and the consequential effect thereof on current
assets, profit/loss for the year, related party disclosures and other elements of the accompanying financial
statements.

d. The Company has entered into various non-cash transactions with related parties during the year, including
transactions involving adjustment entries, transfers and settlement arrangements. Further, during the year, the
Company has recorded purchase transactions aggregating to ' 1.83 Crores from a related party through issuance of
credit notes in respect of goods which, as informed to us, had originally been sold by the Company to the same
related party in earlier years. Additionally, payments have also been made to and/or received from such related
parties against certain of the aforesaid non-cash transactions. In absence of adequate supporting agreements,
underlying documentary evidence and satisfactory explanation regarding the commercial rationale and business
substance of such transactions, we were unable to obtain sufficient and appropriate audit evidence to establish the
genuineness, nature, arm’s length basis and commercial substance of the aforesaid related party transactions. The
aforesaid circumstances indicate existence of significant risk relating to authenticity and substance of related party
transactions. Consequently, we are unable to determine whether any adjustments, reclassifications, reversals,
disclosures or other consequential effects are required in respect of the aforesaid transactions in the accompanying
financial statements.

e. The Company has shown insurance claim receivable amounting to '1,120.27 Lakhs under Non-Current Assets and
'1,672.79 Lakhs under Current Assets. The said claims have remained outstanding for a considerable period and as
informed to us, the same have not yet been approved/adjudicated by the concerned authorities’ / insurance
companies. In absence of sufficient appropriate evidence supporting the certainty of realization and recoverability of
such claims, we are unable to obtain sufficient and appropriate audit evidence regarding the carrying value of the
said receivables. Consequently, we are unable to determine recoverability and consequential impact, if any, on the
accompanying financial statements.

f. Balance confirmations in respect of trade receivables, trade payables, loans and advances, advances to suppliers
and advances from customers were not made available for our verification. In absence of sufficient alternate audit
evidence regarding the completeness, existence, accuracy and recoverability/payability of such balances, we were
unable to determine consequential adjustments, reconciliations or disclosures, if any, required in the accompanying
financial statements.

g. Sufficient and appropriate documentary evidence in respect of various claims, litigations, disputed statutory
liabilities, contingent liabilities and other legal matters was not made available to us. Further, the Company has not
carried out adequate assessment of obligations arising from such matters in accordance with the requirements of
Ind AS 37 “Provisions, Contingent Liabilities and Contingent Assets”. Accordingly, we were unable to determine
whether any provision, adjustment, impairment, disclosure, or reclassification is required in respect of such matters
and the consequential impact thereof on the accompanying financial statements.

h. The Company has not carried out assessment of impairment in respect of its tangible assets, investments, financial
assets and other non-financial assets in accordance with the requirements of Ind AS 36 “Impairment of Assets”.
Consequently, no impairment provision or diminution adjustment, wherever applicable, has been recognized by the
Company. In absence of such assessment and sufficient supporting evidence regarding recoverable amount of the
aforesaid assets, we are unable to comment upon the realizable value of such assets and consequential impact, if
any, on the accompanying financial statements.

i. In absence of financial information, valuation reports and other relevant information from the investee entities, we
were unable to determine the recoverable value of investments carried in the financial statements. Consequently,
the investments have continued to be carried at cost and no adjustment/provision for diminution in value, if any, has
been recognized by the Company. Accordingly, we are unable to determine the consequential impact of the
aforesaid matter on the accompanying financial statements.

j. The Company does not have an internal audit system commensurate with the size, nature and complexity of its
operations. Further, significant deficiencies and material weaknesses were observed in internal controls relating to
maintenance of accounting records, supporting documentation, inventory management, related party transactions
and monitoring controls. The aforesaid matters indicate existence of material weaknesses in the internal financial
controls over financial reporting of the Company, which could potentially result in material misstatement in the
financial statements.

k. We draw attention to Note of the accompanying financial results regarding the Company’s classification of its
freehold land located at as “Assets Held for Sale” under Ind AS 105. The Company has not determined the fair value
less costs to sell of the said land as of the reporting date, as negotiations with prospective buyers are ongoing, and
has therefore carried out the asset at its existing book value. Ind AS 105 requires assets held for sale to be measured
at the lower of carrying amount and fair value less costs to sell. In the absence of fair value determination, we are
unable to comment on the possible impact on the carrying value of the asset, profit/loss), and net assets for the
period. The matters described above are material and pervasive to the accompanying financial statements. Due to
the significance of the matters described above, we were unable to obtain sufficient and appropriate audit evidence
regarding several elements of the financial statements, including completeness, existence, valuation, recoverability,
presentation and disclosure of various balances and transactions recorded in the books of account.

The matters described above are material and pervasive to the accompanying financial statements. Due to the
significance of the matters described above, we were unable to obtain sufficient and appropriate audit evidence

regarding several elements of the financial statements, including completeness, existence, valuation, recoverability,
presentation and disclosure of various balances and transactions recorded in the books of account.

3. Going Concern:

The Company’s current liabilities exceeded its current assets as at the previous balance sheet date and the operations of
the Company have substantially ceased. Further, the Company has incurred significant losses and, based on information
made available to us, the Company is facing severe financial constraints affecting its ability to discharge liabilities in normal
course of business. These events and conditions indicate existence of a material uncertainty that may cast significant
doubt on the Company’s ability to continue as a going concern. In absence of sufficient and appropriate audit evidence
regarding management’s assessment of going concern assumptions and future viability of operations, we are unable to
comment upon the appropriateness of preparation of financial statements on going concern basis.

B. Managements Reply: -

1. Disclaimer of opinion:

The Financial Results have been prepared on the basis of accrual Accounting Policy & uniform accounting practices
adopted for all periods. The Balance Sheet, P&L Account gives a true and fair view.

2. Basis for Disclaimer of Opinion:

a. The primary accounting software (SAP) and underlying accounting records maintained therein were not
accessible during the course of audit:

The software used for book keeping up to 31/03/2023 was SAP. The balances shifted to different software namely
tally prime edit log in the year 2024. The tally prime edit log report as on 31/03/2026 was provided. The management
maintains the books of account using alternative accounting software, namely Tally Prime Edge with audit trail
feature enabled, based on available backup records, supporting documents, and opening balances derived from
previously audited financial statements, effective 2023. Management has exercised due care and undertaken
reasonable steps to ensure that the accompanying financial statements present a true and fair view of the affairs of
the Company based on the information and records presently available. The management is extending full
cooperation to the statutory auditors and remains committed to providing additional supporting records, data, and
clarifications, wherever available, to address the concerns raised in the audit report.

b. Inventories amounting to ' 13,696.20 Lakhs have not been valued at lower of cost and net realizable value,
which is not in compliance with the requirements of Ind AS 2 "Inventories” and the significant accounting
policies:

The Company is planning to put up a slag recovery plant. This will enable recover the metal from slag and hence the
value of stocks would not be eroded as pointed out by the auditors.

Raw Material amounting to '1,867.67: The major Raw Material of the Company is Steel Scrap and as such the same
has been valued at cost or market value w. e. is lower.

The factory premises of the Company are presently under possession of J C Flowers Asset Reconstruction Private
Limited, due to which the management was unable to conduct comprehensive physical verification of inventories
during the year. Further, operational and system-related challenges impacted maintenance of detailed inventory
records, quantitative reconciliations, and assessment of net realizable value of inventories.

c. During the year, the Company has taken over work-in-progress (WIP) amounting to ' 1.67 Crores from a
Director of the Company and has recognized the same under Current Assets in the financial statements.

The statutory auditor’s opinion in relation to the takeover and recognition of work-in-progress (WIP) amounting to
' 1.61 Crores from a Director of the Company. The said WIP was acquired by the Company based on management’s
assessment of the commercial and future business utility associated with the underlying project/development
activities.

The valuation of the WIP has been supported by a certified Valuer (Government Registered Valuer Consultant &
Chartered Engineer) certificate and other documents made available to the Company. The management believes
that the expenditure incurred represents project-related development costs having prospective economic benefits
for the Company.

d. The Company has entered into various non-cash transactions with related parties during the year, including
transactions involving adjustment entries, transfers and settlement arrangements.

Certain transactions involving issuance of credit notes in respect of goods sold in earlier years were accounted for
based on mutual settlement arrangements and commercial negotiations with the related party. Payments made
and/or received against such transactions have been appropriately recorded in the books of account based on
available records and management assessment.

e. The Company has shown insurance claim receivable amounting to ' 1,120.27 Lakhs under Non-Current
Assets and ' 1,672.79 Lakhs under Current Assets.

The Company has filed a consumer case for insurance claim before the NCDRC (National Consumer Dispute
Redressal Commission) in the year 2014. The case is pending for final hearing.

The MSEDCL claim was lodged by the Company before the Consumer Grievance Redressal Forum (CGRF), which
has been decided in favour of the Company. However, MSEDCL has filed an appeal before the Hon’ble High Court,
and the matter is currently sub judice. The management believes that the insurance claims and MSEDCL claims (as
per CGRF orders) are valid, maintainable, and recoverable based on the nature of losses incurred, supporting
documentation submitted, favourable orders received, and correspondence exchanged with the respective
authorities. The Company continues to actively pursue these matters and remains confident of a favourable
outcome based on the merits of the claims.

f. Balance confirmations in respect of trade receivables, trade payables, loans and advances, advances to
suppliers and advances from customers.

The Company has given balance confirmations from the parties having substantial claim.

g. Sufficient and appropriate documentary evidence in respect of various claims, litigations, disputed
statutory liabilities, contingent liabilities and other legal matters was not made available to us.

The Company is in process of getting documentary evidences with respect to contingent liabilities wherever
pending.

h. The Company has not carried out assessment of impairment in respect of its tangible assets, investments,
financial assets and other non-financial assets in accordance with the requirements of Ind AS 36
"Impairment of Assets”.

The company has not reviewed the impairment of its tangible assets and other financial and nonfinancial assets as of
March 31,2026. Hence, no provision in the books of account has been made by the Company. The management
believes that the Company will succeed to get Insurance Claims & MSEDCL claims as per the order of the apt
authorities.

i. In absence of financial information, valuation reports and other relevant information from the investee
entities, we were unable to determine the recoverable value of investments carried in the financial
statements.

The company has not assessed the Fair Value of various Assets and Liabilities as per the requirement of Ind AS 103
“Fair Value Measurement”.

j. The Company does not have an internal audit system commensurate with the size, nature and complexity of
its operations.

The Company has appointed internal auditor during the FY 2025-26.

k. We draw attention to Note of the accompanying financial results regarding the Company’s classification of
its freehold land located at as "Assets Held for Sale” under Ind AS 105.

The Company has entered in to development agreements for the development of the Land.

3. Going Concern Concept:

The Company’s current liabilities exceeded its current assets as at the previous balance sheet date and the operations of

the Company have substantially ceased.

The management believes that though the Current Liabilities of the Company exceeds Current Assets of the Company, the

Company, having positive net worth will be able to revive business including exploring new business opportunities.

19.2 Secretarial Auditor & Secretarial Audit Report:

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, the Company has appointed CS Mayur More, Mayur More & Associates, Practicing
Company Secretary M. No: A35249 COP: 13104, to undertake the Secretarial Audit of the Company.

The Report of the Secretarial Audit is annexed herewith as Annexure-4.

A. QUALIFICATIONS / OBSERVATIONS:

1. The factory premises are presently under the possession of the Secured Lenders. The Registered Office of the
Company, which is situated at the said premises, is also under the possession of the Secured Lenders. The
Company has not shifted or transferred its Registered Office to any other place.

2. The Books of Account of the Company are maintained and kept at a place other than the Registered Office of the
Company. However, the Company has not filed Form AOC-5 with the Registrar of Companies within the prescribed
period, as required under Section 128(1) of the Companies Act, 2013 read with Rule 2A of the Companies
(Accounts) Rules, 2014. Accordingly, the Company is required to take appropriate steps for regularisation of the said
non-compliance.”

3. The Company has failed to comply with the provisions of Section 12(4) of the Companies Act, 2013, as the Company
changed the situation of its Registered Office without filing the requisite notice of change and verification of the
Registered Office with the Registrar of Companies in Form INC-22 within the prescribed time. Accordingly, the
Company and the officers in default were in non-compliance with the provisions of Section 12 of the Companies Act,
2013.”

4. “The Company has not redeemed the Preference Shares which became due for redemption in the year 2019 in
accordance with the terms of their issue. Accordingly, the Company has failed to comply with the provisions of
Section 55 of the Companies Act, 2013 read with the applicable rules relating to redemption of preference shares.
The Company is required to take appropriate steps for redemption of the outstanding Preference Shares and
regularisation of the said non-compliance.”

5. “The Company was required to conduct the Cost Audit of its cost records for the financial year ended 31 March 2021
and furnish the Cost Audit Report to the Central Government in the prescribed manner. However, the Company has
neither conducted the Cost Audit nor filed the Cost Audit Report in Form CRA-4 for the said financial year.
Consequently, the Company has failed to comply with the provisions of Section 148 of the Companies Act, 2013 read
with the applicable provisions of the Companies (Cost Records and Audit) Rules, 2014. It is further noted that
proceedings in respect of the said non-compliance have been initiated by the Registrar of Companies before the
competent Criminal Court.”

6. “During the year under review, certain meetings of the Board of Directors/Committees of the Company were
convened at shorter notice for transacting urgent business. However, at least one Independent Director, wherever
applicable, was present at such meetings. Accordingly, the Company complied with the provisions of Section 173(3)
of the Companies Act, 2013 in respect of the meetings convened at shorter notice.”

7. Delay in Submission of Shareholding Pattern under Regulation 31 of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015.

8. Delay in Prior Intimation of Board Meeting to Consider Financial Results under Regulation 29(1)(a) read with
Regulation 29(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

9. Delay in Submission of Compliance Certificate under Regulation 74(5) of the SEBI (Depositories and Participants)
Regulations, 2018.

10. Delay in Submission of Reconciliation of Share Capital Audit Report under Regulation 76 of the SEBI (Depositories
and Participants) Regulations, 2018.

B. Managements Reply:

1. The factory premises are presently under the possession of the Secured Lenders.

The factory premises wherein the Registered Office of the Company is situated, are presently under the possession
of the Secured Lender. The Company has not shifted its Registered Office to any other location. The Registered
Office continues to remain at the same address as registered with the Registrar of Companies. The Management is
taking appropriate steps to address the matter and ensure compliance with the applicable provisions of the
Companies Act, 2013 and the rules made thereunder.

2. The Books of Account of the Company are maintained and kept at a place other than the Registered Office of
the Company & non filing of appropriate form with ROC.

The Company is in the process of taking appropriate corrective measures in accordance with the applicable
provisions of the Companies Act, 2013 and the rules made thereunder, including filing of Form AOC-5 with the
Registrar of Companies, as applicable. The Management shall ensure that the necessary statutory compliances are
undertaken and appropriate measures are implemented to avoid recurrence of such non-compliance in future.

3. The Company has failed to comply with the provisions of Section 12(4) of the Companies Act, 2013.

The factory premises of the Company, wherein the Registered Office is situated, are presently under the possession
of a Secured Lender. However, the Company has not transferred or shifted its Registered Office to any other place,
and the Registered Office shall continue to remain at the existing registered address. The Management is taking
appropriate steps to address the matter and shall ensure compliance with the applicable provisions of the
Companies Act, 2013, as may be required.

4. The Company has not redeemed the preference shares due for redemption in the year 2019.

The delay in redemption was primarily due to financial constraints and liquidity challenges faced by the Company
during the relevant period. The management is actively evaluating various options for complying with the applicable
provisions relating to redemption of preference shares and is taking necessary steps to regularize the matter at the
earliest possible time.

5. The Company has neither conducted nor submitted the Cost Audit Report for the financial year ended 31.
03. 2021, in respect of which the ROC has filed a case before the criminal court.

The management is taking necessary steps in consultation with legal and professional advisors to address and
resolve the matter appropriately. The Company remains committed to strengthening its compliance framework and
ensuring adherence to the applicable provisions of the Companies Act, 2013 and related rules in future.

6. Board Meetings / Committee Meetings during the year under review are held giving Shorter Notices.
However, the independent Directors as required are present in the said Board/Committee Meetings.

Some Board Meetings / Committee Meetings during the year under review are held giving Shorter Notices. However,
the requisite Independent Directors were present at such meetings and the Company had complied with the
applicable requirements relating to shorter notice meetings. The management shall continue to make efforts to
provide adequate notice period for meetings, wherever practicable.

7. Delay in submission of Shareholding pattern under Regulation 31 (Listing Obligations and Disclosure
Requirements) Regulation, 2015:

There was delay in submission of the Shareholding Pattern under Regulation 31 for the Quarters as mentioned in the
Secretarial Audit Report. The management is of the view that it was inadvertent & directs to submit the same in time
in future.

8. Delay in intimation of Board meeting to consider Financial Results under Regulation 29(2) / 29(3) of SEBI
(Listing Obligations and Disclosure Requirements) Regulation, 2015:

There was delay in giving board meeting intimation as mentioned in the Secretarial Audit Report. The management

is of the view that it was inadvertent & directs to submit the same in time in future.

9. Delay in submission of Compliances - Certificate under Reg. 74 (5) of SEBI (DP) Regulations, 2018 for:

There was delay in submission of Compliances-Certificate under Reg. 74 (5) of SEBI (DP) Regulations, 2018 as
mentioned in the Secretarial Audit Report. The management is of the view that it was inadvertent& directs to
consider& submit the same in time in future.

10. Delay in submission of Reconciliation of share capital audit report under Regulation 76 of SEBI (DP)
Regulations, 2018 for:

There was delay in submission of Reconciliation of share capital audit report under Reg. 76 of SEBI (DP)
Regulations, 2018 as mentioned in the Secretarial Audit Report. The management is of the view that it was
inadvertent& directs to consider& submit the same in time in future.

20. COST AUDIT & COST RECORDS:

According to the Companies Act 2013 and the Companies (Audit and Auditors) Rules of 2014, the Company need to appoint
Cost Auditor to conduct cost audit, if the overall annual turnover of the company from all its products / services during the
immediately preceding financial year exceeds prescribed limits. As the Company has not achieved turnover exceeding limit, the
Company is not required to appoint any cost Auditor to conduct cost audit in the Financial Year 2026-27.

21. INTERNAL AUDITORS:

The Board has appointed CA Mr. Rahul K. Dayama, Proprietor Rahul K. Dayama & Associates, Membership No.178110, as the
Internal Auditors of the Company for the Financial Year 2025-26.

22. REPORTING OF FRAUDS BY AUDITORS:

During the year under review, the Statutory Auditors or Secretarial Auditors have not reported any instances of frauds committed
in the Company by its Officers or Employees, to the Audit Committee under Section 143(12) of the Act, details of which needs to
be mentioned in this Report.

23. TRANSFER OF AMOUNTS TO INVESTOR EDUCATION AND PROTECTION FUND:

Your Company did not have any funds, being dividends lying unpaid or unclaimed fora period of seven years. Therefore, there
were no funds which were required to be transferred to Investor Education and Protection Fund (IEPF).

24. DISCLOSURE UNDER THE SEXUAL HARRASSMENT OF WOMAN AT WORK PLACE (PREVENTION, PROHIBITION
AND REDRESSAL) ACT, 2013:

The Company has in place an Anti-Sexual Harassment Policy in line with the requirements of the Sexual harassment of women
at workplace (Prevention, Prohibition and Redressal) Act, 2013. All employees (permanent, contractual, temporary, trainees)
are covered under this policy. There are no women employees in the Company during the year under review.

25. DIVIDEND DISTRIBUTION POLICY:

Pursuant to Regulation 43A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the requirement
to formulate and disclose a Dividend Distribution Policy is not applicable to the Company as it does not fall within the top 1,000
listed entities based on market capitalization.

26. SERVICE OF DOCUMENTS THROUGH ELECTRONIC MEANS:

Subject to the applicable provisions of the Companies Act, 2013, and applicable law, all documents, including the Notice and
Annual Report shall be sent through electronic transmission in respect of members whose email IDs are registered in their
demat account or are otherwise provided by the members. A member shall be entitled to request for physical copy of any such
documents.The Company shall sent a letter to shareholders, whose e-mail IDs are not registered with Company/RTA/DPs,
providing the weblink from where the Annual Report 2025-26 including the Notice of the 39th AGM of the Company can be
accessed.

27. INTERNAL COMPLAINT COMMITTEE:

The Company has complied with the provisions relating to the constitution of Internal Complaint Committee ("ICC’’) as required
under The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 [14 of 2013]. The

Company is strongly opposed to sexual harassment and employees are made aware about the consequences of such acts and
about the constitution of ICC.

28. MANAGERIAL REMUNERATION & PARTICULARS OF EMPLOYEES:

In accordance with Section 178 and other applicable provisions, if any, of the Companies Act, 2013 read with Rule 6 of the
Companies (Meetings of Board and its Powers) Rules, 2014 issued thereunder and Regulation 19 of the SEBI (LODR)
Regulations, 2015, the Board of Directors has formulated the Nomination and Remuneration Policy on the recommendations of
the Nomination and Remuneration Committee.

The salient aspects covered in the Nomination and Remuneration Policy, covering the policy on appointment and remuneration
of Directors and other matters have been outlined in the Corporate Governance Report which forms part of this Report. During
the year under review, the Company has not employed any individual whose remuneration falls within the purview of the limits
prescribed under the provisions of Section 197 of the Companies Act, 2013, read with Rule 5(2) of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014.

Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Companies Act, 2013 and
Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are annexed as Annexure
- 6.

In terms of the provisions of Section 197(12) of the Act read with Rules 5(2) and 5(3) of the Rules, a statement showing the
names and other particulars of employees drawing remuneration in excess of the limits set out in the said Rules forms part of this
Report. The Report and the Annual Accounts are being sent to the Members excluding the aforesaid statement. In terms of
Section 136 of the Act, the said statement will be open for inspection upon request by the Members. Any Member interested in
obtaining such particulars may write to the Company Secretary at cosec@indiasteel.in.

29. MANAGEMENT DISCUSSION AND ANALYSIS:

The Management Discussion and Analysis Report for the year under review, as stipulated under SEBI (Listing Obligations and
Disclosure Requirements) Regulations,2015, forms part of the Annual Report 2024-25. (Annexure- 1)

30. CORPORATE GOVERNANCE:

The Company has implemented the provisions of Chapter IV of SEBI (LODR), 2015 relating to the Corporate Governance
requirements. A Report on Corporate Governance, the Report of Auditors Certificates thereof is given as annexure to this report.
(Annexure- 2).

31. INDUSTRIAL RELATIONS:

During the year under review, industrial relations remain cordial and peaceful.

32. ACKNOWLEDGEMENTS:

The Directors express their appreciation for co-operation and encouragement received from all the Shareholders, Business
Associates, investors and bankers during the year. The Directors also place on record their appreciation of the contribution
made by the employees.

For and on behalf of the Board of Directors of
INDIA HOMES LIMITED

Sudhir H. Gupta

Executive Chairman
(DIN: 00010853)

Place: Mumbai
Date: 15th May, 2026