Independent Auditor's Review Report on Standalone Unaudited and Condensed Interim Financial Results

Quantitative Financial Figures

Income Statement (₹ in Lakhs):

  • Q2 Sep-26: Net Sales ₹22,785.60; Other Income ₹3.32; Total Income ₹22,788.92; Total Expenses ₹24,397.41; Loss before tax ₹(1,608.49); Net Loss ₹(1,608.49)
  • H1 Sep-26: Net Sales ₹36,729.06; Other Income ₹10.14; Total Income ₹36,739.20; Total Expenses ₹41,432.65; Loss before tax ₹(4,693.45); Net Loss ₹(4,693.45)
  • EPS: Q2 Basic & Diluted (₹9.77); H1 Basic & Diluted (₹28.51)

Comparative Figures:

  • Q2 Sep-25: Net Loss ₹(592.85)
  • H1 Sep-25: Net Loss ₹(1,693.20)
  • FY Mar-26: Net Loss ₹(6,443.99)

Segment Revenue (H1 FY27):

  • Steel Division: ₹28,938.68 lakhs
  • Synthetic Division: ₹1,069.26 lakhs
  • Power: ₹5,496.76 lakhs

Segment Results (H1 FY27 Profit/Loss before tax and finance cost):

  • Steel Division: ₹(83.58) lakhs
  • Synthetic Division: ₹(45.89) lakhs
  • Power: ₹(364.03) lakhs

Balance Sheet (as at 30-Sep-2026):

  • Total Assets: ₹86,045.36 lakhs
  • Property, Plant & Equipment: ₹48,997.59 lakhs
  • Inventories: ₹8,719.80 lakhs
  • Trade Receivables: ₹14,889.87 lakhs
  • Cash & Cash Equivalents: ₹99.81 lakhs
  • Total Equity: ₹16,197.62 lakhs (Share Capital: ₹1,646.14 lakhs; Other Equity: ₹14,551.48 lakhs)
  • Borrowings: ₹41,097.58 lakhs (Non-current: ₹33,524.62 lakhs; Current: ₹7,572.96 lakhs)

Key Dates

  • Period Ended: 30th September 2026
  • Board Approval Date: 11th November 2026
  • Auditor's Report Date: 11th November 2026
  • NCD Moratorium Period: 1st April 2026 to 31st August 2026
  • Revised NCD Redemption Date: 30th September 2027
  • New Auditor Appointment: Effective 1st July 2026

Parties Involved

  • Auditor: S R B R & Associates LLP (Firm Registration No: 004997S/S200051)
  • Auditor Partner: M. Balaji (Membership No: 266246)
  • Managing Director: Sanjay Tulsyan (DIN: 00632802)
  • Fuel Supplier: Mahanadi Coalfields Limited (subsidiary of Coal India Limited)
  • Previous Subsidiary: Sapient Packing Private Limited (divested during quarter)

Material Developments

NCD Restructuring:

Note 3 discloses a revision in terms of Non-Convertible Debentures including:

  • Agreed moratorium for coupon payments from 1st April 2026 to 31st August 2026
  • Moratorium payments to be compensated by ramped-up coupon amounts subsequently on monthly basis
  • Final redemption date revised to 30th September 2027
  • Entire principal amount along with coupon and redemption premium to meet agreed Total IRR
  • Outstanding default/penal interest including other costs, charges, expenses as per debenture trust deed proposed to be paid at final redemption date

Fuel Supply Agreement:

The company entered into a fuel supply agreement dated 12 May 2026 with Mahanadi Coalfields Limited for purchase and supply of coal for power generation purposes, expected to ensure stable coal supply at comparatively lower cost than imported coal.

Subsidiary Divestment:

During the quarter, Tulsyan NEC Ltd divested its shareholding in Sapient Packing Private Limited, which consequently ceased to be a subsidiary.

Segment Reporting:

The company organized business into three segments: Steel Division, Synthetic Division, and Power. Inter-company sales of ₹317.26 lakhs were eliminated in consolidated financials.

Auditor's Emphasis of Matter and Qualifications

Emphasis of Matter:

Auditors drew attention to the NCD restructuring terms as described in Note 3 to the financial statements.

Basis for Qualified Conclusion:

Auditors issued a qualified conclusion due to absence of direct confirmations and sufficient alternative audit evidence regarding recoverability of outstanding balances of trade receivables pertaining to earlier periods. They are unable to determine whether any further adjustments are necessary to the carrying value of these receivables by way of additional provisioning, write-offs, or writebacks.

Other Matters:

  • New auditors appointed effective 1st July 2026, making this their first review
  • Previous quarter (Jun-26) reviewed by predecessor auditor who expressed unmodified conclusion
  • Review conducted in accordance with SRE 2410 issued by ICAI

Financial Impact Assessment

Explicitly Disclosed Impacts:

  • Significant net losses reported for both quarter and half-year periods
  • NCD restructuring defers coupon payments and extends redemption timeline
  • Trade receivables recoverability uncertainty may require additional provisioning
  • Fuel supply agreement expected to reduce power generation costs

Capital Structure Impact:

No change in share capital reported during period. Paid-up equity share capital remained at ₹1,646.14 lakhs with face value of ₹10.00 per share.

Cash Flow Implications:

H1 FY27 cash flow statement shows:

  • Net cash from operating activities: ₹1,543.64 lakhs
  • Net cash used in investing activities: ₹(19.96) lakhs
  • Net cash used in financing activities: ₹(1,559.44) lakhs
  • Net decrease in cash: ₹(35.76) lakhs
  • Cash and cash equivalents at end: ₹99.81 lakhs

Forward-Looking Information

No explicit forward-looking guidance or management commentary provided in the disclosed results.