1. We have audited the accompanying standalone financial statements of M/s Mideast Integrated Steel (“ the
Company”) which comprises the Balance Sheet as at March 31, 2024, 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 the summary of the significant accounting policies and other
explanatory information (hereinafter referred to as “the standalone financial statements”).

2. 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 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, 2024, and total comprehensive loss (comprising of the loss and
other comprehensive loss), changes in equity and its cash flows for the year ended on that date.

Basis for Qualified Opinion

3. We conducted our audit of the standalone financial statements in accordance with the Standards on
Auditing specified under section 143(10) of the Act (SAs). 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 independence 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 ICAl's Code of Ethics. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our qualified audit opinion on the standalone financial
statements.

Qualifications in the Audit Report

1) The Company have Property, Plant and Equipment (PPE) amounting to Rs. 594.38 crores as on 31st March
2024. We have not verified the assets physically. Company has provided Physical Verification report of
Orissa Zone only and not for other Locations. Further, Quantity mentioned in Physical Verification report
provided for Orissa zone does not align with Fixed Asset Register shared with us.

Further, the Plant is not in operation for more than 4 years due to which the recoverable amount may be
less than the carrying amount of PPE and also company has not performed the impairment testing as per

Ind AS-36. Hence, we are not able to ascertain the carrying value of PPE and depreciation charged for the
year.

2) Company has inventory amounting to Rs. 47.98 crores as on 31stMarch 2024 which includes inventory of
Raw Materials, Finished Goods and Stores and Spares Stock. Due to non-availability of sufficient
information regarding value of inventory we are unable to comment upon the correctness of reported value
of inventory. However, the company has provided the certificate ofphysical verification of inventory by the
third party which includes the Quantity of Raw Materials and Finished Goods only and not of Stores and
Spares as on 31.03.2024 which is approx 12% of the value of Inventory.

Moreover, as the plant is not in operation for more than 04 year due to which the recoverable amount may
be less than the carrying amount, company has not valued the Inventory as per IND AS 2.

3) Company has total receivable of Rs 44.98 Crores (RP Receivable Rs. 30.21 Crores (Maithan), out of which
major receivables has no movement. However, the company has neither made any provision for non- moving
debtor nor initiating any litigation. Also, the impairment testing has not been performed, hence we cannot
comment upon the actual recoverability from the reported trade receivable. Further, the balance
confirmation of related party has been received and other than related party is not received.

4) Physical copies of deposits have not been provided to us by the company. Hence, we cannot comment upon
the genuineness of the deposits. We have found that few Fixed deposits are in the name of Individuals but
the same are recorded in the assets of the company. Balance confirmation from bank received from
company.

5) As per the Balance confirmation of ICICI Bank A/c No 059205002008 Effective Available amount showing
Debit balance by Rs. 115.43 Cr.

6) There is an unpaid dividend amount of Rs 2.5 crores which pertains to financial year 2013-14. The same
should have been transferred into Investor Education and Protection Fund, however, has not been done by
the Company. This amount is yet kept in the Unpaid Dividend account with the bank.

7) Balances of Debtors, Creditors, advances received from customers & advances given to supplier and
deposits received & given are subject to confirmations and reconciliations. We could not verify the reported
numbers due to non-availability of sufficient information and records. Hence, we cannot comment upon the
correctness of the reported numbers.

8) The company has Unsecured loan from promoters amounting to Rs. 38.54 crores as on 31st March
2024, out of which Rs.27.97 crores are outstanding since long and no any details or information has
been provided for our review and verification. The terms and condition of the loan, repayment terms
and loan agreement has not been provided to us.

9) MISL has advances received from customers amounting to Rs. 333.16 Crores (RP Advances Rs. 15.89
Crores) as on 31st March, 2024. Out of which no movement in the major proportion of advances for more
than 365 days. Since, the advances has not been appropriated against supply of goods or provision of
services within a period of three hundred and sixty-five days (365 days) from the date of acceptance of such
advance. Hence, the same will be treated as deposit as per the As per the rule 2 (c) (xii) (a) of companies
Act.

However, company has neither complied with the provision of deposits u/s 73 to 76 of Companies Act, 2013
nor met the disclosure of deposit in the form DPT-3, which needs to be file before ROC.

10) The company has Tax & Regulatory due payable amounting to Rs. 72.46 crores as on 31st March, 2024.Out
of total dues Rs. 72.39 Cr is disputed Dues as per the Management Representation letter given by the
Company. Disputed dues are in respect of Central Excise, Service Tax, Sales Tax, VAT, Welfare Cess, Work
Contract Tax, Income Tax, Entry Tax, Professional Tax, TDS, TCS District Mineral Fund, National Mineral
Fund Employee State Insurance, Provident Fund, Royalty, Exgratia, User Fee & GST have not been
deposited with appropriate authorities.

Further The Goods & Service Tax (GST) returns have not been filed by the Company since November 2020
and GST of Delhi (ISD Return) and Odissa also got suspended during the year by the department. OKAY

11) In pursuance to the judgement dated 2nd August, 2017 of Honorable Supreme Court of India, in the matter
of Writ Petition (Civil) No. 114 of 2014 between Common Cause v/s Union of India & Others, there is a
compensation imposed of Rs 924.75 crores along with interest on the company for excess production of Iron
Ore during 2000-01 to 2010-11. The Company was supposed to make the payment of this compensation
along with the interest on or before 31st December 2017, failing which the mines of the Company are closed
down w. e. f 1st January 2018. The Company has filed a 'Curative petition' (Civil) on 28th March 2018,
before the Honorable Supreme Court of India challenging the Judgement and which we have been informed
is still pending. Hence, the company has not made provision for the same in the books of accounts. However,
in our opinion since this compensation has been crystalized and accordingly, a provision for this liability
should have been made in the books. Management has confirmed over mail that Rs. 415.79 crores have been
deposited against the order.

Further, based on the financials company is not having any business activity to generate the revenue in
future and also after considering the provision for the above liability the net worth of the company would
be negative, considering the same company may not be a going concern.

12) Company has written Back Rs. 115.57 Cr which includes Sundry Creditor, Employee Liability, Advance
from customer, Security deposit and Written off Rs. 10.85 Cr which includes Sundry Debtor, Employee
advance and other amounts which are now not payable and receivable from companies ’ point of view.
Company has not provided balance-confirmation from these parties.

13) Company has booked accrued Income ofRs. 4.99 Cr during the current year which relates to F.Y. 2022-23
and F.Y. 2023-24 no supporting documents for the same has been provided to us for our verification. GST
invoice has also not raisedfor the Income booked.

Emphasis of Matter

1) An application under Section 9 of the Arbitration and Conciliation Act, 1996 (as amended) has been filed
by SREIEquipment Finance Limited, in August 2021, in relation to a Loan-Cum- Hypothecation Agreement
dated 8 September 2016, whereby the Company had taken a loan for purchase of a Metso Crusher 600 TPH
Engine amounting to Rs.7.92 crores. The petitioner has claimed an outstanding sum ofRs.4.40 crores in the
said application. The Company’s books of accounttsBshow a liability of Rs 3.60 crores as at 31^st March,

2023. The matter was pending before Sole Arbitrator and by an order dated 11^th August, 2023 the Learned
National Company Law Tribunal (Kolkata Bench) has allow a Resolution Plan filed by one NARCL
(National Asset Reconstruction Company Limited). The matter is to beard in the next hearing and the date
of next hearing has not been received.

2) We draw attention to Note 30 of the financials, which describe Rs 718 crores plus interest, due to a party in
respect of unreconciled amounts as per an arbitration award. The Company is disputing most of such claims
and has filed an appeal against the arbitration award before the Bombay High Court. The same has been
admitted by the High Court in December 2019. The matter is subjudice.

3) We have relied on the list of legal cases and the contingent liability, as given to us by the management. We
are not aware of, nor have been informed of any other matter filed against the company. Further, company
has provided guarantee in respect of obligations of a subsidiary company amounting to Rs. 782.95 crores
against which actual financial position of the subsidiary has not been provided. Company has conveyed
that, One Time Settlement (OTS) has been done with the consortium of Banks led by State Bank of India
relating to the loan /facility that was availed by Maithan.

4) Bank has deducted TDS on Fixed -Deposit @ 20% because of non-submission of PAN in Central Bank of
India resultant Company is unable to claim TDS of the same.

5) As on 31st March, 2024 the company has Balances with government authorities amounting to Rs. 14.02
crores on account of deposit under Excise Act, VAT and Service Tax. In this regard, we have not been
provided supporting document. Hence, we cannot comment on the deposits and its recoverability.

6) Company has not provided the details of Creditors registered under MSME. Hence, we are unable to
comment upon whether company is following the provision of MSME Act

7) There are fixed assets shown under capital work in progress in the books of the Company Rs. 24.46 Cr,
since more than 4 years. In our opinion, the Company needs to ascertain the completion date of the same
and accordingly capitalize the assets where applicable.

8) During the financial year the company has had transactions with its related parties, and has a net inter¬
company receivables being loans and advances given amounting to Rs.222.34 Crores as at 31st March

2024. The management has not carried out the impairment assessment as required by Ind AS 36.

Hence, we cannot comment on the carrying value of these receivables, along with the related impairment,
if any, and consequential impact thereof on the profit/loss for the year, had the Company performed such
impairment assessment.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the standalone financial statements of the current period. These matters were addressed in the context of
our audit of the standalone financial statements, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. There are no matters determined to be the key audit matters to be
communicated in our report.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the other information. The other
information comprises the information included in the Management Discussion and Analysis, Board's
Report including Annexures to Board's Report. Business Responsibility Report, Corporate Governance and
Shareholder's Information, but does not include m standalone financial statements and our auditor's report
thereon. Our opinion on the standalone financial statement does not cover the other information and we do
not express any form of assurance conclusion thereon.

In connection with our audit of the standalone 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.

Since we have not been provided with the other information, we will not be able to report on the same.

Responsibility of Management and Board of Director for the standalone annual financial results

These standalone annual financial results have been prepared on the basis of the standalone Ind AS financial
statements.

The Company's Management and the Board of Directors are responsible for the preparation and presentation
of these standalone annual financial results that give a true and fair view of the net profit/(loss) and other
comprehensive income and other financial information in accordance with the recognition and measurement
principles laid down in Indian Accounting Standards prescribed under Section 133 of the Act 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 the design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy
and completeness of the accounting records, relevant to the preparation and presentation of the standalone
annual financial results that give a true and fair view and are free from material misstatement, whether due
to fraud or error.

In preparing the standalone annual financial results, the Management and the Board of Directors are
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.

The Board of Directors is responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Annual Financial Results

Our objectives are to obtain reasonable assurance about whether the standalone annual financial results 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 annual financial results.

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 standalone annual financial results, 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 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 whether the Company has adequate internal financial controls with reference to
standalone annual Ind AS financial statements 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 in the standalone annual financial results made by the Management and Board of
Directors.

• Conclude on the appropriateness of the Management and Board of Directors 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 ability of the Company 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 annual financial results 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 annual financial results, including
the disclosures, and whether the standalone annual financial results represent the underlying transactions
and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone annual financial results that, individually or
in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the
standalone annual financial results may be influenced. We consider quantitative materiality and qualitative
factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to
evaluate the effect of any identified misstatements in the standalone annual financial results.

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.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”) issued by Central Government
of India in term of sub-section (11) of Section 143 of the Companies Act, 2013, we enclose in “Annexure
A” a statement on the matter specified in paragraphs 3 and 4 of the order.

2. As required by Section 143(3) of the Act, based on our audit, subject to the qualified opinion give above,
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.

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

d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under
section 133 of the Act, read with Rule 7 of the Company (Accounts) Rule, 2014.

e) On the basis of written representations received from the directors as on 31 March, 2023 taken on record
by the Board of Directors, none of the directors is disqualified as on 31 March, 2023, from being appointed
as a director in terms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls over financial reporting of the company
and operating effectiveness of such controls, refer to our separate report in “Annexure B”.

g) With respect to the other matters to be included in the Auditor’s Report in accordance with the
requirements of section 197(16) of the Act, as amended: -

In our opinion and to the best of our information and according to the explanations given to us, we report as
under with respect to other matters to be included in the Auditor’s Report in accordance with the provision
of section 197 of the Act.

h) 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) Rule, 2014, as amended in our opinion and to the best of our
information and according to the explanations given to us, subject to the qualified opinion given above: -

i. The Company has disclosed the impact of pending litigations on its financial position in the standalone
financial statement.

ii. The Company has made provision, as requiredunder the applicable law or accounting standards, for

material foreseeable losses, if any, on long-term contracts including derivative contracts.

iii. There has been a delay in transferring amounts to the Investor Education and Protection Fund by the
Company, of Rs. 2.50 crores pertaining to the unpaid dividends for the financial year 2013-14.

iv. a. The management has represented that, to the best of it's knowledge and belief, to the standalone
financial statements, 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 Intermediaries 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; and

b. The management has represented, that, to the best of it's knowledge and belief, other than as disclosed in
the notes to the accounts, 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, 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 such audit procedures, we have considered reasonable and appropriate in the circumstances,
nothing has come to their notice that has caused them to believe that the representations under sub-clause
(i) and (ii) contain any material mis-statement.

v. The Company has not declared and paid any dividend during the year. Therefore, reporting in this regard
is not applicable to the Company.

For, ASHOKSHYAM & ASSOCIATES
Chartered Accountants
FRN: - 011223N

(Ashok B Gupta)

Partner

Membership No.089858
UDIN: - 24089858BKBIXF3863
Place: -New Delhi
Date: 30/07/2024