Terms/rights attached to Equity Shares

a. The Company has only one class of equity shares having a par value of Rs. 10 each. Each holder of one equity share is entitled to one vote per share.

b. In the event of liquidation the equity shareholders are eligible to receive the remaining assets of the Company after payment of all preferential amounts in proportion to their shareholding.

c. No Equity shares have been reserved for issue under options and contracts/commitments for the sale of shares / disinvestment as at the Balance Sheet date.

Retained Earnings: This Reserve represents the cumulative profits of the Company and effects of remeasurement of defined benefit obligations. This Reserve can be utilized in accordance with the provisions of the Companies Act, 2013.

Equity Instruments through Other Comprehensive Income: This Reserve represents the cumulative gains (net of losses) arising on revaluation of Equity Instruments measured at Fair Value through Other Comprehensive Income, net of amounts reclassified, if any, to Retained Earnings when those instruments are disposed of.

Note: Liability of Financial Creditor is booked as per the Order of Hon'ble NCLT dated 27.03.2025. Hence, Long term & Short term loans transfer as other financial liabilities.

The information above has been compiled to the best of knowledge and as per the information available with the management to the extent to which parties would be identified as Micro, Small and Medium Enterprises and relied upon by the auditors.

Disclosures required under Section 22 the Micro, Small and Medium Enterprises Development Act, 2006:

The Company is in the process of identifying the suppliers, who would be covered under the Micro, Small and Medium Enterprises Development Act, 2006. In this process the Company has given notice to its vendor/suppliers to inform about whether any of them are registered under the said Act. The Company has not yet received any information about such registration from the vendors. Since no information received from their side, we have considered all the outstanding supplier as non MSME.

33.2 There are no amounts that are due to be transferred to the Investor Education and Protection Fund in accordance with the relevant provisions in Companies Act 2013, and accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 made there under.

33.3 Details of Benami Property held:-The company does not any Benami Property upto the end of financial year ended 31.03.2025 and no proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

33.4 Company has not been traded or invested in Crypto currency or Virtual Currency during the financial year.

33.5 The company is having single reporting segment hence disclosure as require by the Ind-AS 108 is not applicable.

33.6 Disclosures of Loans or Advances in the nature of loans granted to promoters, directors, KMPs and the related parties (as defined under Companies Act 2013 is repayable on demand)

33.7 The company has not been declared as a wilful defaulter by any bank of financial institution or other lender till the Financial Year 2024-2025.

33.8 As per the information available with the management, the company has not entered into any transactions with the companies who have been struck off under section 248 of the Companies Act 2013 or section 560 of the Companies Act, 1956.

33.9 No Undisclosed Income has been recorded in the Books of Account for Financial Year 20242025.

33.10 The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on the number of Layers) Rules 2017.

Since the Hon’ble NCLT-approved resolution plan (vide order dated 27 March 2025), including fund infusion, operational restructuring, and cost control measures. Repayment of Dues from Bank required to be paid in accordance with Resolution Plan. Hence it’s considered to be n ot making any default in repayment.

Note 36: Registration of charges or satisfaction with registrar of companies

No charges or satisfaction yet to be registered with the Registrar of the Companies beyond the statutory period.

An application was filed against M/s AANCHAL ISPAT LIMITED under Section 9 of the Insolvency and Bankruptcy Code, 2016 read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 before the Hon'ble NCLT Kolkata with a prayer to commence the Corporate Insolvency Resolution Process (CIRP). The said application for initiation of CIRP was admitted by the Hon'ble National Company Law Tribunal (NCLT), Kolkata Bench, vide its order dated 12.09.2023, wherein Mr. Sriram Mittal was appointed as Interim Resolution Professional (IRP) of the Company.

The Committee of Creditors subsequently appointed Mr. Santanu Brahma as Resolution Professional (RP) of the Company in place of Mr. Sriram Mittal, which was also approved by the Hon'ble NCLT, Kolkata vide order dated 17.11.2023. Pursuant to the CIRP, the powers of the Board were suspended and vested with the RP. The NCLT order also imposed a moratorium with effect from 12.09.2023 until the completion of the CIRP or approval of the resolution plan under section 31(1), or passing of a liquidation order under section 33, whichever is earlier.

The Resolution Plan was approved by the Hon'ble NCLT on 27.03.2025, and the CIRP proceedings against the Company have since been completed. As per the order of the Hon'ble NCLT, the Resolution Professional handed over the management of the Company to the Successful Resolution Applicant (SRA), Shri Mukesh Goel, on 05.04.2025 with effect from 28.03.2025. As per the approved plan, the following major restructuring steps are to be implemented: Reduction in paid-up share capital; Infusion of funds by the resolution applicant; Settlement and payment to financial creditors (banks); Settlement and payment to operational creditors: Reconstitution of the Board of Directors.

As of the date of approval of these financial statements the board of directors has been formed, the implementation of the other measures is in progress. The financial statements have been drawn up based on the resolution plan approved by the NCLT and reflect transactions and restructuring measures to the extent implemented as on the balance sheet date. The remaining aspects of the plan will be appropriately accounted for upon completion and legal effectiveness of such actions in subsequent periods.

The Company’s net worth as at 31 March 2025 remains positive. However, over the past five financial years, the Company has experienced a continuous decline in net worth due to operational losses, rising input costs, and limited cash generation. The Board of Directors and Management acknowledge this financial trend and have undertaken strategic steps as part of the NCLT-approved resolution plan (vide order dated 27 March 2025), including fund infusion, operational restructuring, and cost control measures. The management believes that the implementation of the resolution plan will help improve the net worth position in future periods, and hence the financial statements have been prepared on a going concern basis.

Note 38:

Pursuant to the approval of the resolution plan by the Hon’ble NCLT, Kolkata Bench on 27 March 2025, under Section 31 of the IBC, the Company has recognized key financial impacts arising from the resolution plan.

Total claims have been settled at ^5450.00 lakhs, this includes:

Karur Vysya Bank: Settled at ^4725 lakhs

Operational Creditors (including Government Dues & Employees): Settled at ?100 lakhs

CIRP Costs: ?125 lakhs

Working Capital Funds: ?500 lakhs

The plan includes capital reduction and reconstitution of existing share capital and issuance of fresh equity to the SRA. As legal formalities are pending, no accounting adjustment has been made as of 31 March 2025.

The plan is effective from 27 March 2025, with implementation steps including capital restructuring to be completed within 180 days.

As part of the CIRP process, the Company received ?3.00 crore from Mr. Mukesh Goel, the successful Resolution Applicant, Such amount is separately held by the company in the form of Fixed deposit shown under "Bank Balance other than (ii) bank balance"

Upon approval of the resolution plan by the Hon’ble NCLT vide order dated 27 March 2025, this amount is to be adjusted against the implementation obligations under the approved resolution plan. As on 31 March 2025, the amount continues to be disclosed under "Other Financial Liabilities" pending formal allocation in line with the resolution plan execution.

Note 39:

During the period the position of whole time company secretary were vacant in the company and such vacancy was not yet filled by the company. Company is in the process of finding a Company Secretary & Compliance Officer of the company but due to ongoing CIRP process suitable candidates are not turning up and hence the process is getting delayed.

Note 40:

During the year, the Company has made 76.08 % of its purchases and 74.68% of its sales with its sister concern, Maina International Ltd., to ensure optimum utilization of production capacity at arm's length prices.

Note 41:

Exceptional items for the year include:

a) The net gain of ? 3938.29 lakhs from liability settlement has been presented as an exceptional item in the Statement of Profit and Loss.

b) Write-off of ? 5086.80 lakhs towards non-recoverable trade receivables, loan and advances.

c) CIRP Cost Rs. 106.87 Lakhs Note 42:

The Company has not recognised any Expected Credit Loss (ECL) on trade receivables under Ind AS 109 - Financial Instruments, as the management has assessed that:

Trade receivables outstanding as at the reporting date primarily comprise parties with a proven credit history and sound financial standing. All receivables considered doubtful or non-recoverable have already been fully written off during the year. The remaining receivables are considered to be recoverable in full and do not carry any significant credit risk.

Accordingly, based on the assessment carried out in accordance with the expected credit loss model prescribed under Ind AS 109, no provision for impairment is considered necessary as at the reporting date.

The Company’s leasing arrangements consist solely of short-term leases (i.e., leases with a lease term of 12 months or less), primarily for equipment.

In accordance with the recognition exemption under paragraph 5 of Ind AS 116 - Leases, the Company has elected not to recognize right-of-use assets and lease liabilities for these short-term leases.

Lease payments associated with short-term leases are recognized as an expense on a straight-line basis over the lease term.

The total lease expense recognized in the Statement of Profit and Loss for the year ended 31st March 2025 is ? 10.71 lakhs.

During the quarter under review, reclassification and remeasurement of a quoted investment has been done from amortised cost to fair value in accordance with Ind AS 109. As a result of which gain of Rs. 3.85 lakhs has been arise which has been shown under "other comprehensive income” in the Profit & Loss account.

Note 43:

Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the Current year’s classification / disclosures.