Independent Auditor's Report on Standalone Annual Financial Results

Document Type: Independent Auditor's Report

Period: Year ended 31 March 2026

Report Date: 30 June 2026

Auditor Firm: L N Malik & Co. (FRN: 015992N)

Signing Partner: Sameer Pavi (Membership No. 091816)

Nature of the Document

This is an Independent Auditor's Report on the standalone annual financial results of Coral Newsprints Limited for the year ended 31 March 2026, prepared pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended).

Auditor's Opinion

The auditors, L N Malik & Co., have issued an unmodified opinion stating that the Statement:

  • Presents financial results in accordance with the requirements of Regulation 33 of the SEBI Listing Regulations.
  • Gives a true and fair view in conformity with applicable Indian Accounting Standards (Ind AS) and other accounting principles generally accepted in India, of the standalone Net loss and other comprehensive income and other financial information for the year ended 31 March 2026.
  • The audit was conducted in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013.

Emphasis of Matter

The report contains an Emphasis of Matter paragraph highlighting a significant legal dispute:

  • Case Reference: DISPUTE WITH N P JALAN Case No (OMP, ENF, COMM) 103/2022.
  • Case History: The Hon'ble High Court of Delhi referred the dispute to a sole Arbitrator vide order dated 18/08/2005.
  • Settlement Award: A settlement award of Rs. 2.40 crore was issued.
  • Payments Made: The company has paid Rs. 1.47 crore till 31/03/2025.
  • Court Deposit: The company deposited Rs. 93 lakhs with the Registrar of the Hon'ble Delhi High Court as per order dated 28.04.2023.
  • Current Status: The matter is pending with the Hon'ble Delhi High Court Mediation and Conciliation Centre.
  • Share Escrow: The company has asked for shares held in an Escrow Account, alleging that Jalan Group has not complied with the consent award.
  • Hearing Dates and Directives:
  • 24.10.2024: Hearing took place; Hon'ble High Court required escrow agent Mr. S S Khetawat to appear personally in court with physical share certificates on the next date (24.01.2025).
  • 16.04.2025: Matter adjourned to 19.08.2025.
  • 29.10.2025: Hon'ble Delhi High Court directed respective parties to file calculations as the company desires to submit a bank guarantee for the interest amount.
  • 16.05.2026: Hon'ble Court directed Mr. S S Khetawat to present in Court with physical share certificates on 16.09.2026.

Going Concern Uncertainty

The report highlights a material uncertainty regarding the company's ability to continue as a going concern:

  • Accumulated losses have exceeded the net worth of the company for the last few years.
  • The company may not be able to pay unsecured lenders and creditors.
  • Despite this, the management has prepared the accounts on a going concern basis, as stated in Note no 33 of the financial statements.
  • The auditor's opinion is not modified in respect of this matter.

Responsibilities

  • The Statement was prepared based on the standalone annual audited financial statements and approved by the Company's Board of Directors.
  • The Board of Directors is responsible for the preparation, presentation, and maintenance of adequate accounting records.
  • The auditor's responsibility is to obtain reasonable assurance about whether the Statement is free from material misstatement.

Other Matter

The Statement includes the standalone annual financial results for the quarter ended 31 March 2026, which are balancing figures between the audited full-year figures and the published unaudited year-to-date figures up to the third quarter, which were subject to a limited review by the auditors.