We have audited the accompanying standalone IND AS financial statements of S.A.L. STEEL LIMITED (the "Company"), which comprise
the Balance Sheet as at March 31, 2025, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of
Changes in Equity and the Statement of Cash Flows for the year ended on that date and a summary of material accounting policies and
other explanatory information (hereinafter referred to as the "standalone financial statements").

In our opinion and to the best of our information and according to the explanations given to us, except for the effect of the matter
described in the Basis for Qualified Opinion section of our report, the aforesaid standalone financial statements give the information
required by the Companies 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 state of affairs of the Company as at March 31,
2025 and its losses, total comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Qualified Opinion

1. For the Year ended on 31^st March, 2025, the company has not made provision for Electricity Duty in the books of accounts
had the company made the provision for Electricity Duty for the year ended on 31^st March, 2025, the Loss for the year
would have been higher by Rs 314.28 lakhs and current liabilities would have been higher to that extent. (Refer to Note
no. 41 of Standalone IND AS Financial Statements).

2. For the year ended on 31^st March, 2025, the company has not made Impairment of entire Capital Work in Progress. Had
the Company made Impairment of entire Capital Work in Progress for the year ended on 31^st March, 2025, the Loss for
the year would have been higher by Rs 100.94 lakhs and Capital Work in Progress would have been lower to that extent.
(Refer to Note No. 39 of Standalone IND AS Financial Statements).

We conducted our audit in accordance with the Standards on Auditing ("SA" s) 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
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 ("ICAI") together with the ethical requirements that are relevant to our audit of the standalone financial
statements 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 obtained by us is sufficient and
appropriate to provide a basis for our qualified opinion on the standalone IND AS financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone IND AS
financial statements of the current period. These matters were addressed in the context of our audit of the standalone IND AS financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key Audit Matters:

Emphasis of Matter

1. The Company has not complied with the disclosure requirements of segment reporting as per Indian Accounting
Standard - 108 'Operating Segments'. However, there is no impact on the financial results due to the said non-disclosure.
(Refer Note No.32 of notes forming part of Standalone Ind AS financial statement)

2. During the Year under review, the company has written back creditors amounting to Rs 44.71 lakhs, in view of the
management the same is not payable, accordingly they have been written back and credited to statement of Profit
and loss account as Other Income for the year ended on 31^st March, 2025. (Refer to Note No.42 of Standalone IND AS
Financial Statements).

3. We draw attention to the matter that company has not provided details w.r.t MSME Vendors as prescribed under MSME
Act, 2006 which states as specified Companies( Furnishing of information about payment to micro and small enterprise
suppliers) Order 2019.However, in the absence of the above mentioned details we are unable to comment on the non¬
recognition of any provisioning to be made on account of interest on balance outstanding to MSME vendors if any
,required at the balance sheet date 31.03.2025. (Refer to Note No. 40 of Standalone IND AS Financial Statements).

4. The balance confirmation from the suppliers, and customers have been called for, but the same are awaited till the date
of audit. Thus, the balances of receivables, advance from customers and trade payables have been taken as per the books
of accounts submitted by the company and are subject to confirmation from the respective parties. (Refer to Note No. 37
of Standalone IND AS Financial Statements).

5. In order to buy peace of mind and to put an end to the litigation, the Company has entered into a Settlement Agreement
with Shreenidhi Trading Company a creditor who had initiated legal proceedings against the Company. The Company has
agreed to pay a settlement amount of Rs 510.00 Lakhs, to the said alleged creditor against the principal outstanding of Rs
94.41 Lakhs. Thus, the balance amount of Rs. 415.59 Lakhs is shown as "Exceptional Item" in the statement of profit and
loss for the year ended on 31^st March 2025. (Refer Note No 46 of notes forming part of Standalone Financial Statements)

Our opinion is not modified on the above matter.

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 Annual Report, but does not include the standalone IND AS financial statements and our auditor's report thereon.

Our opinion on the standalone IND AS 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 standalone IND AS financial statements, 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. If, based on the work we have performed, we
conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report
in this regard.

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

The statement has been prepared on the basis of Standalone Ind AS annual financial statement.

The Board of Directors of the Company are responsible for the preparation and presentation of the Statement that gives a true and
fair view of the net profit and other comprehensive income of the Company and other financial information in accordance with
the applicable accounting standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other
accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. 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 standalone Ind AS financial statements that give a true and fair view and are free
from material misstatement, whether due. to fraud or error.

In preparing the standalone Ind AS financial statements, 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
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 Standalone IND AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone IND AS 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 standalone IND
AS financial statements.

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

• Identify and assess the risks of material misstatement of the standalone 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 detecting a 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 financial control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances. Under section 143(3)(i) of the Act, 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 the 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 standalone 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 standalone IND AS financial statements, including the disclosures,
and whether the standalone IND AS financial statements 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 standalone Ind AS financial statements 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 Other Legal and Regulatory Requirements

1. As required by section 197(16) of the Act as amended, in our Opinion and to the best 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 read with Schedule V of the Act.

2. As required by the Companies (Auditor's Report) Order, 2020 (the "Order") issued by the Central Government in terms of Section
143(11) of the Act, we give in "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order.

3. As required by Section 143(3) of the Act, based on our audit we report that:

a) We have sought and except for the matters described in the Basis for Qualified Opinion, obtained all the information and
explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

b) Except for the possible effects of the matters described in the Basis for Qualified opinion paragraph above and for the
matter stated in paragraph 3(i)(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014,
in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our
examination of those books.

c) The standalone Balance Sheet, the standalone Statement of Profit and Loss including Other Comprehensive Income,
standalone Statement of Changes in Equity and the standalone Statement of Cash Flows dealt with by this Report are in
agreement with the books of account.

d) Except for the possible effects of the matter described in Basis of Qualified opinion paragraph, in our opinion, the aforesaid
standalone IND AS Financial statements comply with the Indian Accounting Standards specified under section 133 of the Act.

e) The matters described in the paragraphs on Basis for Qualified Opinion and Emphasis of Matters, in our opinion it may have
an adverse effect on the functioning of the company.

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 with reference to standalone IND AS Financial Statements of
the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B". Our report
expresses an unmodified opinion on the adequacy and operating effectiveness of the Company's internal financial controls
with reference to standalone Financial Statements.

h) The Modification relating to the maintenance of accounts & other matters connected therewith, are stated in Basis of
Qualified Opinion paragraph and also stated in paragraph 3(b) above on reporting under section 143(3)(6) of the act, and
also stated at paragraph 3(i)(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.

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, as amended, 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 litigations on its financial position in the standalone Ind AS Financial
Statements (Refer Note No. 31-A to the Standalone Ind AS 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 were no amounts which were 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 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 manner 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 (i) and (ii)
of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.

(v) The company has not declared and paid any Interim divided nor has proposed any final dividend during the previous
year, and hence the question of Compliance and applicability of Section 123 of the Companies Act does not arise.

(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, the Company has used accounting software for maintaining its
books of account for the financial year ended March 31,2025 which has a feature of recording audit trail (edit log) facility
and the same operated throughout the year for all relevant transaction recorded in the software. Further, during the

course of our audit, we did not come across any instances of audit trail feature being tampered. The audit trail has been
preserved by the Company as per the statutory requirements for record retention.

However, in respect of Books of Accounts maintained at factory, the accounting software does not have the feature of
edit log under the year under review and the same was not operated throughout the year for all relevant transactions
recorded in the software, hence question of preservation of back up of audit trail does not arise.

For, Parikh & Majmudar

Chartered Accountants
FRN - 107525W

[CA SATWIK DURKAL]

PARTNER

Place : Ahmedabad Membership No. 107628

Date : 30-05-2025 UDIN: 25107628BMHGBN3520