Year End :2024-03

The Hon’ble National Company Law Tribunal, Kolkata Bench (“NCLT”) had vide its order dated 12th September,
2023 admitted the application for the initiation of the Corporate Insolvency Resolution Process (“CIRP”) of the
company in terms of the Insolvency and Bankruptcy Code (IBC), 2016 read with the rules and regulations framed
thereunder as amended from time to time (“Code”). Accordingly pursuant to the provisions of Section 17 of the IBC
the powers of the Board of Directors of the Corporate Debtor stands suspended and such powers shall be vested with
Mr. Sriram Mittal appointed as the Insolvency Resolution Professional (the IRP). Further the committee of
creditors(CoC) of the company pursuant to the meeting held on 11th October, 2023 and in terms of Section 22 (2) of
the Code resolved with 100% voting share to replace the existing Interim Resolution Professional with CA Santanu
Brahma as the resolution professional (RP) for the company. Accordingly the NCLT has in its hearing dated 17th
November, 2023 through video conferencing pronounced the approval for the appointment of CA. Santanu Brahma as
the RP (“Resolution Professional”) of the Company.

As per Notification no. SEBI/LAD-NRO/GN/2018/21 dated May 31 2018 regulations 17,18, 19, 20 and 21 of the
Securities & Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 related to
Board of Directors, Audit Committee, Nomination and Remuneration Committee and Stakeholders Relationship
Committee respectively shall not be applicable during the insolvency resolution process period in respect of a listed
entity which is undergoing CIRP under the Code provided that the role and responsibilities of the Board of Directors
as specified under regulation 17 shall be fulfilled by the interim resolution professional or resolution professional in
accordance with sections 17 and 23 of the Insolvency and Bankruptcy Code. Hence the status of the Board of Directors
and Committees provided in this Report is as on the date of commencement of CIRP i.e. 12th September, 2023.

We hereby presents the 29^th Annual Report of Aanchal Ispat Limited (the Company) along with the audited financial
statements for the financial year ended March 31, 2024.

1. FINANCIAL RESULTS

The Company’s financial performance for the year ended 31^st March, 2024 is summarised below:

PARTICULARS	2023-2024	2022-2023
Sales and other operating Income	10,939.05	19,453.67
Earnings before Interest, Tax, Depreciation & amortization (EBITDA)	(339.76)	(2218.29)
Finance costs	351.46	765.15
Depreciation and amortization expenses	62.99	63.81
Profit/ (loss) before tax	(754.21)	(3047.25)
a) Current Tax	-	-
b) Current Tax Expense relating to Prior Year's	-	-
c) Deferred Tax	(129.40)	(701.55)
Profit/(loss) for the period	(624.81)	(2345.71)

2. RESULTS OF OPERATIONS AND STATE OF THE COMPANY’S AFFAIRS:

The Company’s revenue in FY 2023-24 was Rs. 10,939.05 lakhs compare to Rs. 19,453.67 lakhs in the previous
financial year. EBIDTA stood at Rs. (339.76) lakhs in FY 2023-24 compared to Rs. (2218.29) lakhs in the previous
financial year. The Company reported a post-tax loss of Rs. 624.81 lakhs in FY 2023-24 compared to a post-tax loss
of Rs. 2345.71 lakhs in the previous financial year.

3. TRANSFER TO RESERVES

The Company has not transferred any amount to the Reserves for the year ended 31 st March, 2024.

4. DIVIDEND

The company has not recommend the payment of any dividend on equity shares for the year ended 31st March, 2024.

5. CHANGE IN THE NATURE OF BUSINESS

The company is engaged in manufacturing of a wide range of TMT Bars, MS Rounds & Angles, besides Trading of
Steel Products etc. There has been no change in the nature of business of the Company.

6. SHARE CAPITAL

The paid up Equity Share Capital as at March 31, 2024 stood at '20.85 cores. During the year under review, the Company
has not issued shares or convertible securities or shares with differential voting rights nor has granted any stock options
or sweat equity or warrants. As on March 31, 2024, none of the Directors of the Company hold instruments convertible
into Equity Shares of the Company.

7. ANNUAL RETURN

In terms of provisions of Section 92(3) of the Companies Act, 2013 and Rule 12 of the Companies (Management &
Administration) Rules, 2014, a copy of the Annual Return as prescribed under Section 92 of the Companies Act, 2013
forms a part of this report and is annexed as Annexure - “A” and the same can also be assessed at the website of the
Company at www. aan ch alispat. com.

8. DEPOSITS

The Company has not accepted any public deposit during the year under review and no amount against the same was
outstanding at the end of the year.

9. SUBSIDIARIES. JOINT VENTURES AND ASSOCIATE COMPANIES

The company is not having a holding or subsidiary company during the year and no other company has become a
holding/subsidiary/ joint venture.

10. SECRETARIAL STANDARDS OF ICSI

The Ministry of Corporate Affairs has mandated SS-1 and SS-2 with respect to board/committee meetings and general
meetings respectively. The company is under CIRP w.e.f 12^th September, 2024, therefore the company has ensured
compliance with the Secretarial Standards to the extent possible.

11. REGULATORY STATEMENT

In conformity with the provision of regulation 34(2) (c) of SEBI (LODR), Regulations 2015, the Cash Flow Statement
for the year ended 31.03.2024 is annexed hereto. The equity shares of the Company are listed on the BSE Ltd.

12. ENERGY CONSERVATION. TECHNOLOGY ABSORPTION. FOREIGN EXCHANGE EARNINGS.
AND OUTGO

As required under Section 134 (3) (m) ofthe Act read with Rule 8 of The Companies (Accounts) Rules, 2014, particulars
relating to conservation of Energy, R & D, Technology absorption, and foreign exchange earnings/outgo are separately
provided in the annexure to this report as Annexure - “B”.

13. MANAGEMENT’S DISCUSSION AND ANALYSIS REPORT

As per the terms of Regulation 34(2) read with Schedule V of SEBI Listing Regulations, Management’s Discussion and
Analysis Report for the year under review is presented in a separate section forming part of the Annual Report.

14. DIRECTORS AND KEY MANAGERIAL PERSONNEL

Since the Company is undergoing Corporate Insolvency Resolution Process (CIRP) w.e.f 12th September, 2023, the
powers of the Directors have been suspended and such powers are vested in CA. Santanu Brahma, in the capacity of
Resolution Professional.

There were no changes in the composition of the Board of Directors.

None of the Directors of the Company is disqualified for being appointed as Director, as specified under section 164(2)
of the Companies Act, 2013 and Rule 14(1) of the Companies (Appointment and Qualification of Directors) Rules,
2014.

Ms. Puja Kaul, Company Secretary resigned from her post w.e.f 12^th September, 2023.

Mr. Mukesh Kumar Agarwal, Chief Financial Officer (CFO) of the company resigned from his post w.e.f 15^th
November, 2023 but it is not yet approved by the Committee of Creditors (CoC).

15. RETIREMENT BY ROTATION AND SUBSEQUENT RE-APPOINTMENT

In accordance with the provisions of Section 152 and other applicable provisions, if any, of the Act (including any
statutory modification(s) or re-enactment(s) thereof for the time being in force) and the Articles of Association of the
Company, Mr. Manoj Goel, Director, is liable to retire by rotation at the ensuing AGM and being eligible have offered
himself for re-appointment. A resolution seeking shareholders’ approval for his re-appointment along with other
required details forms part of the Notice.

The Managing Director & CEO and Independent Directors of the Company are not liable to retire by rotation.

*His appointment on the Board is being part of compliance with section 152(6) of the Companies Act, 2013. However,
the Board shall continue to remain suspended during the continuance of Corporate Insolvency Resolution Process.

16. DECLARATION BY INDEPENDENT DIRECTORS

Since the Company is undergoing Corporate Insolvency Resolution Process (CIRP) w.e.f 12^th September, 2023, the
powers of the Directors have been suspended and such powers are vested in CA. Santanu Brahma, in the capacity of
Resolution Professional.

Hence, the provisions of Section 149 of the Act, is not applicable on the company.

17. NUMBER OF MEETINGS OF THE BOARD

09 (Nine) meetings of the Board of Directors were held during the financial year 2023-2024. The maximum gap between
any two meetings was less than 120 days, as stipulated under SEBI’s Listing Requirements, 2015. The details of the
meetings of the Board of Directors of the Company convened and attended by the Directors during the financial year
2023-2024 are given in the Corporate Governance Report which forms part of this Annual Report.

18. NOMINATION AND REMUNERATION POLICY

The salient features of the Nomination and Remuneration Policy of the Company are set out in the Corporate
Governance Report which forms part of this Annual Report. The said Policy of the Company, inter alia, provides that
the Nomination and Remuneration Committee shall formulate the criteria for appointment & re-appointment of
Directors on the Board of the Company and persons holding Senior Management positions in the Company, including
their remuneration and other matters as provided under Section 178 of the Act and Listing Regulation.

19. BOARD EVALUATION

The Board of Directors of the company are suspended pursuant to the Pursuant to Hon’ble NCLT, Kolkata bench order
for admission of Corporate Insolvency Resolution Process (CIRP) under the Insolvency Bankruptcy Code, 2016 w.e.f
September 12, 2023.

Though the Company is under CIRP, the Company has over the years developed a robust familiarization process for
the newly appointed directors with respect to their roles and responsibilities, way ahead of the prescription of the
regulatory provisions. The process has been aligned with the requirements under the Act and other related Regulations.
This process inter-alia includes providing an overview of the Company’s business model, the risks and opportunities
etc. Details of the Familiarization Programme are also available on the Company’s website at
https://www.ushdev.com/pdf/familiarisation-Program.pdf

COMMITTEES

As on 31st March, 2024, the Board stands suspended due to the CIRP. During the year the company has three
committees: Audit Committee, Nomination and Remuneration Committee and Stakeholders Relationship Committee.

During the year, all recommendations made by the committees were approved by the Board. A detailed note on the
composition of the Board and its committees is provided in the corporate governance report.

0 AUDIT COMMITTEE

Under Corporate Insolvency Resolution Process, the Power/role of Audit Committee is exercisable by the
RP. Although the terms of reference for each Committee in the absence of CIRP are mentioned hereunder

The Audit Committee comprised of 3 non-executive directors and all three are independent. During the year,
the Audit Committee met (Five) times to deliberate on various matters on 30.05.2023, 01.06.2023,
09.06.2023, 20.06.2023, 14.08.2023.

The Composition of the Audit Committee and the attendance of each member at these meetings are as
follows:-

Name	Position Held	Number of Meetings during the Financial Year 2023-24
		Entitled	Attended
Ms. Nilu Nigania	Chairperson	5	5
Mr. Mukesh Agarwal	Member	5	5
Ms. Shikha Jaiswal	Member	0	0

The Audit Committee ensures an effective internal control system.

0 NOMINATION AND REMUNERATION COMMITTEE

The Nomination and Remuneration Committee comprises 4 non-executive directors, out of which three are
independent. During the year, the Nomination and Remuneration Committee met once to deliberate on
various matters on 12.09.2023.

The Composition of the Nomination and Remuneration Committee and the attendance of each member at
these meetings are as follows:-

Name	Position Held	Number of Meeting during the Financial Year 2023-24
		Entitled	Attended
Mr. Mukesh Agarwal	Chairman	1	1
Ms. Nilu Nigania	Member	1	1
Ms. Shikha Jaiswal	Member	0	0

0 STAKEHOLDER’S RELATIONSHIP COMMITTEE

The Stakeholders Relationship Committee comprises 3 non-executive directors and all three are
independent. During the year, the Committee did not meet due to the ongoing Corporate Insolvency
Resolution Process (CIRP).

The Composition of the Nomination and Remuneration Committee and the attendance of each member at
these meetings are as follows:-

Name	Position Held	Number of Meeting during the Financial Year 2023-24
		Entitled	Attended
Mr. Mukesh Agarwal	Chairman	1	1
Ms. Nilu Nigania	Member	1	1
Ms. Shikha Jaiswal	Member	0	0

20. SEPARATE MEETING OF INDEPENDENT DIRECTORS

Due to the ongoing Corporate Insolvency Resolution Process (CIRP) there could not be any separate
meeting of the Independent Directors during the FY 2023-2024.

21. FAMILIARIZATION PROGRAM FOR INDEPENDENT DIRECTORS

All independent directors inducted into the Board are familiarized with the operations and functioning of the
Company. The details of the training and familiarization program are provided in the Corporate Governance
report.

22. DIRECTORS RESPONSIBILITY STATEMENT

In compliance with the provisions of Section 134(5) of the Companies Act, 2013 the suspended Board of
Directors to the best of their knowledge and hereby confirm the following:

a) in the preparation of the annual accounts for the financial year ended 31^st March 2024, the applicable
accounting standards had been followed along with proper explanation relating to material departures;

b) Selection of such accounting policies and applied them consistently and made judgments and estimates that
are reasonable and prudent so as to give a true and fair view of the state of affairs of the company as at 31^st
March, 2024 and profit and loss account of the Company for that period;

c) Taken proper and sufficient care 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;

d) The annual accounts are prepared on a going concern basis; and

e) The company had laid down internal financial controls to be followed by the company and that such internal
financial controls are adequate and were operating effectively.

f) Devised proper systems to ensure compliance with the provisions of all applicable laws and that such
systems were adequate and operating effectively.

23. AUDITORS & AUDITORS’ REPORT

Statutory Auditors

M/s Rajesh Jalan & Associates, Chartered Accountants, Kolkata (FRN 326370E) were appointed as Statutory
Auditors of the Company for the term of five years at the 25'™ Annual General Meeting held on 15^th
December, 2020 as per the provisions of the Companies Act, 2013.

The Auditors have issued a modified opinion on the Financial Statements for the financial year ended 31^st
March, 2024. The Auditors’ Report for the financial year ended 31st March, 2024 on the financial statements
of the Company is a part of this Annual Report.

Pursuant to Section 148 of the Act, read with the Companies (Cost Records and Audit) Rules, 2014 and
amendments thereof, the Company is required to maintain cost accounting records in respect of certain
specified products, and accordingly, such accounts and records are made and maintained in the prescribed
manner. The cost accounting records maintained by the Company are required to be audited and, accordingly,
M/s. Rana Ghosh & Co were appointed Cost Auditors for FY 2023-24.

The Resolution Professional has re-appointed M/s. Rana Ghosh & Co Cost Accountant, as Cost Auditors for
auditing the cost records of the Company for the financial year 2024-25. The Act mandates that the
remuneration payable to the Cost Auditor is ratified by the shareholders. Accordingly, a resolution seeking
ratification of the shareholders for the remuneration payable to the Cost Auditors for the financial year 2024¬
25 is included in the Notice convening the 29^th Annual General Meeting.

Internal A uditor

The Company appointed M/s Sailesh Agarwal & Associates LLP (FRN: E300263 ) for the FY 2023-24 an
Independent firm of Chartered Accountants to act as an Internal Auditor as per the suggestion of auditors and
the recommendation of the Audit Committee in the Board Meeting held on 9^th June, 2023 in order to
strengthen the internal control system for the Company.

Secretarial Auditor

Pursuant to the provisions of Section 204 of the Companies Act, 2013 read with the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014, the Company appointed M/s Manisha Saraf &
Associates, Practicing Company Secretaries, as its secretarial auditor to undertake the Secretarial Audit for
FY 2023-24. The Company has received consent from M/s. Manisha Saraf & Associates to act as the auditor
for conducting an audit of the secretarial records for the financial year ending 31st March, 2024. The
secretarial audit report certified by the secretarial auditors, in the specified form MR-3 is annexed herewith
and forms part of this report (Annexure “C”). The secretarial audit report does not contain any qualifications,
reservations, or adverse remarks.

24. CODE OF CONDUCT

The Code of Conduct of Directors, KMP‘s and Senior executive of the Company is already in force and
the same has been placed on the Company’s website www.aanchalispat.com and the declaration for the
affirmation with the same forms a part of this report.

25. CORPORATE GOVERNANCE

Your Company has practice sound Corporate Governance and taken necessary actions at appropriate times
for enhancing and meeting stakeholders’ expectations while continuing to comply with mandatory provisions
of Corporate Governance. Your Company has complied with the requirements of all applicable regulations
read with Schedule-V of SEBI Listing regulations as issued by SEBI and amended from time to time.

A report on Corporate Governance along with certificate from M/s Rajesh Jalan & Associates, Chartered
Accountants, regarding the compliance of conditions is presented in a separate section forming part of the
Annual Report.

26. POLICY RELATING TO DIRECTOR’S APPOINTMENT, PAYMENT OF
REMUNERATION AND DISCHARGE OF THEIR DUTIES

The policy of the Company on Director’s appointment and remuneration, including criteria for determining
qualifications, independence, and other matters is as provided under subsection(3) of Section 178 of the
Companies Act, 2013 is available on the company’s website at www.aanchalispat.com.

27. PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES

The particulars of employees as required under Section 197 (12) of the Act read with Rule 5 (1)of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, (as amended) are given
in separate annexure attached hereto as Annexure-“D” and forms a part of this report.

Further stating there were no such employees drawing remuneration in excess of the limits set out in Section
197 (12) of the Companies Act, 2013 read with Rule 5(2) & 5 (3) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014.

28. DETAILS OF RELATED PARTIES TRANSACTIONS PURSUANT TO SECTION 188(1) OF
THE COMPANIES ACT, 2013

During the financial year, all transactions entered into with the Related Parties as defined under the
Companies Act, 2013, were in the ordinary course of business on arm’s length basis and as such did not
attract provisions of Section 188 (1) of Companies Act, 2013. The company has formulated a policy on related
party transactions. Particulars of related party transactions pursuant to Section 134(3) (h) of the Act read with
Rule 8(2) of the Companies (Accounts) Rules, 2014 in Form AOC-2 is attached at Annexure - “E”.
Approvals from the Audit Committee are obtained even for transactions which are in the ordinary course of
business and repetitive in nature. Further, on a quarterly basis, disclosures are made to the Audit Committee
and to the Board in its meetings. Details of related party transactions are given in the notes to financial
statements.

29. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION
186 OF THE COMPANIES ACT, 2013

Details of loans, guarantees, and investments under the provisions of Section 186 of the Act read with the
Companies (Meetings of Board and its Powers) Rules, 2014, as on 31st March, 2024, are set out in Note 8 to
the Financial Statements of the Company.

30. RISK MANAGEMENT POLICY

The risk management strategy of your Company is based on a clear understanding of various risks, and
adherence to well-laid-out risk policies and procedures that are benchmarked with industry best practices.
The Company has developed robust systems and embraced adequate practices for identifying, measuring,
and mitigating various risks - business, strategic, operational, market, credit, liquidity, reputational and
process risks - and ensuring that they are maintained within pre-defined risk appetite levels.

31. DETAILS OF POLICY DEVELOPED AND IMPLEMENTED BY THE COMPANY ON ITS
CORPORATE SOCIAL RESPONSIBILITY INITIATIVES

The Company has not developed and implemented any Corporate Social Responsibility initiatives as the
provisions of section 135 of the Companies Act, 2013 along with Companies (Corporate Social
Responsibility Policy) Rules, 2014 as they are not applicable.

32. WHISTLE BLOWER POLICY

The Company has established an effective Whistle blower policy (Vigil mechanism) and procedures for its
Directors and employees whereby employees, directors and other stakeholders can report matters such as
generic grievances, corruption, misconduct, fraud, misappropriation of assets, and non-compliance with code
of conduct to the Company. The policy safeguards the whistle blowers to report concerns or grievances and
also provides direct access to the Chairman of the Audit Committee. During the year under review, none of
the personnel has been denied access to the Chairman of the Audit Committee. This policy is available on
Company’s website www.aanchalispat. com.

33. CODE OF CONDUCT FOR PREVENTION OF INSIDER TRADING

The Company has also adopted the Code of Practice and Procedures for Fair Disclosure of Unpublished Price
Sensitive Information (“the Code”) in line with the SEBI PIT Regulations.

34. INTERNAL FINANCIAL CONTROLS

The Company has adopted policies and procedures for ensuring the orderly and efficient conduct of its
business, including adherence to the Company’s Policies, the safeguarding of its assets, the prevention and
detection of frauds and errors, the accuracy and completeness of accounting records, and the timely
preparation of financial disclosures.

The Company has an Internal Control System commensurate with the size, scale and complexity of its
operations. These are routinely tested and certified by Statutory as well as Internal Auditor. Significant audit
observations and corrective action are reported to the Audit Committee.

The concerned executives monitors and evaluates the efficacy and adequacy of internal control system in the
Company, its compliance with operating systems, accounting procedures and policies at all locations of the
Company. Based on the report of internal audit function, process owners undertake corrective action in their
respective areas and thereby strengthen the controls. Significant audit observations and corrective actions
thereon are presented to the Audit Committee.

35. INSURANCE

The Company has taken appropriate insurance for all assets against foreseeable perils.

36. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE
(PREVENTION. PROHIBITION. AND REDRESSAL) ACT, 2013

There were no complaints pending for the redresses at the beginning of the year and no complaints received
during the financial year.

37. COURT/TRIBUNAL ORDERS

There were no instances of any significant and material orders passed by the regulators or courts or tribunals
impacting the going concern status and the Company’s operations in the future.

38. MATERIAL CHANGES AFFECTING THE COMPANY

There are no material changes and commitments affecting the financial position of the Company between the
end of the financial year and the date of this report.

There has been no change in the nature of business of the Company.

39. APPRECIATION

The management thank the shareholders for their continued support and they would like to place on record
their appreciation for the dedicated services rendered by the Employees at all levels.

We thank our customers, vendors, dealers, investors, business associates and bankers for their continued support
during the year.

We place on record our appreciation of the contribution made by the employees at all levels. Our resilience to meet
challenges was made possible by their hard work, solidarity, co-operation and support.

On b eh alf of the su spended Board of Directors of Aanchal Ispat

Limited

(Authorised by the Resolution Professional)

Sd/-

Mukesh Goel

Place: Howrah (Managing Director)

Date: 30.05.2024 DIN:00555061