Your Directors are pleased to present the 22^nd Annual Report of your company on the operations and performance along with the
Audited Financial Statements and the Auditor's Report thereon, for the year ended on 31^st March, 2025.

FINANCIAL HIGHLIGHTS

STATE OF COMPANY'S AFFAIRS /PERFORMANCE OVERVIEW

During the year under review Total Revenue from operation has decreased from ? 578.23 Crores to ? 544.98 Crores as compared to
previous year's turnover. Company has registered a net profit/(Loss) before tax of (? 3.15) Crores in comparison to net profit of ? 0.64
Crores during previous year.

DIVIDEND

As the Company has other pipelined projects for growth the Directors of your Company have not recommended dividend for the
financial year 2024-25.

BUSINESS ACTIVITY

The company is engaged in manufacture of Sponge Iron, Ferro Alloys and Power. Company is generating power on account of waste
heat recovery system resulting economic price. Company is having its power plant of 40 MW. Power generated is used for captive
consumption. There has been no change in the nature of business of the Company.

SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES

The company does not have holding or subsidiary companies during the year and no other company has become holding / subsidiary/
joint venture / associate. The Company is an Associate Company of M/s. Shah Alloys Limited as it is holding more than 20% of the Equity
Share Capital in the Company as a Promoter Company.

SHARE CAPITAL

During the financial year under review, Company has issued 48,00,000 Warrants Convertible into 48,00,000 Fully paid up Equity
Shares of ?10/- each at a price not less than ?25/-(Includes Premium of ?15/-) to the promoter allottee (SAL CARE Private Limited) on
a preferential basis as on 29^th June, 2024 approved by Special Resolution passed at Extra ordinary General Meeting was held through
Video Conference("VC") and /or other audio visual means("OAVM")(Hereinafter Referred to as "Electronic Mode") on Saturday, 08^th June,
2024. Except these there was no other change in the authorized and paid-up share capital of the Company.

DEPOSIT

The Company has not accepted any deposit during the year under review and no amount against the same was outstanding at
the end of the year falling within the ambit of Section 73 of the Companies Act, 2013 (the act) and the Companies (Acceptance of
Deposits) Rules, 2014.

DETAILS OF LOANS, GUARANTEES AND INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT, 2013

During the year under review the Company has not made any inter corporate loans, investments, given any corporate guarantee to any
other body corporate, subsidiary, associate or any other company.

LISTING OF SHARES

The equity shares of the Company are listed on the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE). The listing fee
for the year 2025-26 has been paid to the credit of both the Stock Exchanges.

DETAILS OF DIRECTORS OR KMPS APPOINTMENT OR RESIGNATION

The Board of Directors consists of Seven (07) members, of which four (04) are Independent Directors including Two Women
Independent Director.

DIRECTORS:

During the financial year 2024-25, the Board of Directors of the Company, based on the approval and recommendation of members
of Nomination and Remuneration Committee has appointed Shri Mrinal Sinha (DIN: 09482143), as Additional Director designated as
Whole-time Director w.e.f. November 12, 2024. Subsequently, he was appointed as Whole Time Director of the Company by way of
Ordinary Resolution passed by the members of the company through Postal Ballot on Friday 27^th December, 2024 through Remote
E-Voting commenced form 28^th November, 2024 at 09.00 AM (IST) and ended on Friday, 27^th December, 2024 at 05.00 PM (IST) for the
period of Five (05) consecutive years commencing from November 12, 2024 up to November 11, 2029 liable to retire by rotation.

During the financial year 2024-25, the Board of Directors of the Company, based on the approval and recommendation of members of
Nomination and Remuneration Committee has appointed Smt. Nipa Jairaj Shah (DIN:10833814), as Additional Director (Non-Executive,
Independent) subject to the approval and regularization of his appointment by the members of the company in the next general
meeting or within a time period of 3 Months from the date of appointment, whichever is earlier, as non-executive Independent Director
of the company to hold office for a term of 5(Five) consecutive years w.e.f. November 12, 2024. Subsequently, she was appointed as Non¬
executive Independent Director of the Company by way of Special Resolution passed by the members of the company through postal
ballot (meeting Sr. No. 01/PB/2024-25) on Friday, December 27, 2024 through remote e-voting commenced from November 28, 2024 at
09.00 AM (IST) and ended on December 27, 2024 at 05.00 Pm (IST).

During the financial year 2024-25, Mr. Ambalal C. Patel (DIN: 00037870), Non-executive Independent Director has resigned w.e.f Closure
of Business hours as on September 27, 2024 due to completion of his tenure as an Independent Director of the company.

During the financial year 2024-25, Mr. Shrikant Jhaveri (DIN: 02833725), Non-executive Independent Director has resigned w.e.f Closure
of Business hours as on September 27, 2024 due to completion of his tenure as an Independent Director of the company.

During the financial year 2023-24, Shri Piyush Chandarana (DIN: 08675864) has resigned from the post of Whole Time Director of the
company w.e.f. MAY 25, 2024 due to personal reasons.

During the Financial year 2024-25, Shri Sujalkumar Ashokkumar Shah (DIN: 01431407), has resigned from the post of Whole Time
Director of the company w.e.f. April 9, 2024 due to personal reasons.

Except above there were no other changes in respect of constitution of Board of Directors of the company during the
financial year 2024-25.

KEY MANAGERIAL PERSON:

During the year under review, Shri Vinay Kumar Mishra (M. No.: F11464), has resigned from the post of Company Secretary and
Compliance Officer (key Managerial Person) w.e.f. July 24, 2024 due to personal reasons and Smt. Radhika P. Soni (M. No.: A64410), was
appointed w.e.f. 18^th March, 2025 on the position of Company Secretary & Compliance Officer (Key Managerial Person) of the Company
in terms of Section 203 of Companies Act, 2013 and regulation 6(2) of Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements), Regulations 2015.

Except above there were no other changes in respect of appointment and resignation of Key managerial Persons of the company.

MEETINGS OF THE BOARD AND COMMITTEES

During the year under review, total Seven (07) meetings of Board of Directors were held on the following dates 11^th May, 2024, 30^th May,
2024, 29^th June, 2024, 09^th August, 2024, 12^th November, 2024, 12^th February, 2025 and 18^th March, 2025. Details of meetings are given
in the Corporate Governance Report annexed herewith as Annexure - 5 and forms part of this report. The intervening gap between
the Meetings was within the period prescribed under the Companies Act, 2013 and the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements), Regulations 2015.

DECLARATION BY INDEPENDENT DIRECTORS

The Company has received necessary declarations from each Independent Director of the Company confirming that he/she met with
the criteria of independence as laid out in sub-section (6) of Section 149 read with schedule IV of the Companies Act, 2013 and under
regulation 16(1)(b) and 25(8) of the Securities and Exchange Board ofIndia (Listing Obligations and Disclosure Requirements), Regulations
2015. In the opinion of the Board, the Independent Directors fulfill the criteria of independence as provided under the Act, Rules made
thereunder read with applicable provisions of the Listing Regulations, and they are independent of the management and also possess
requisite qualifications, experience, and expertise and hold highest standards of integrity. The report on Corporate Governance which is
forming part of the Annual Report contains the disclosure regarding the skills, expertise, competence and proficiency possessed by the
Directors. Further, there has been no change in the circumstances affecting their status as Independent Directors of the Company. The
Board has taken on record the declarations of the Independent Directors, after undertaking due assessment of the veracity of the same.

BOARD DIVERSITY

A diverse Board enables efficient functioning through differences in perspective and skill, and also fosters differentiated thought
processes at the back of varied industrial and management expertise, gender, knowledge and geographical background. The Company
follows diverse Board structure.

BOARD EVALUATION

As per the provisions of the Companies Act, 2013 and Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements), Regulations 2015, the formal annual evaluation was carried out for the Board's own performance, its committee &
Individual directors. The manner and detail in which evaluation was carried out is stated in the Corporate Governance Report which is
herewith as Annexure - 5 and forms a part of this report.

INTERNAL FINANCIAL CONTROL SYSTEM AND THEIR ADEQUACY

The details in respect of internal financial control and their adequacy are included in Management Discussion and Analysis Report,
which forms part of this report.

CORPORATE GOVERNANCE REPORT

The Company is committed to observe good corporate governance practices. The report on Corporate Governance for the financial year
ended 31^st March, 2025, as per regulation 34(3) read with Schedule V of the Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements), Regulations 2015 is enclosed herewith as Annexure - 5 and forms part of this Report.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

As required under Section 134 (3) (m) of the Companies Act, 2013 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 -1.

RISK MANAGEMENT

The Company had put in place an enterprise wide risk management framework. This holistic approach provides the assurance that, to
the best of its capabilities, the Company identifies, assesses and mitigates risks that could materially impact its performance in achieving
the stated objectives. The Audit committee ensures that the Company is taking appropriate measures to achieve prudent balance
between risk and reward in both ongoing and new business activities. The Committee reviews strategic decisions of the Company and
on regular basis, reviews the Company's portfolio of risks and considers it against the Company's Risk Appetite. The Committee also
recommends changes to the Risk Management Technique and / or associated frameworks, processes and practices of the Company.

WHISTLE BLOWER POLICY AND VIGIL MECHANISM

The Company has put in place a Whistle Blower Policy and has implemented a Vigil Mechanism, whereby employees, directors and
other stakeholders can report matters such as generic grievances, corruption, misconduct, fraud, misappropriation of assets and non¬
compliance of code of conduct to the Company. The policy safeguards the whistle blowers to report concerns or grievances and also
provides a 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 Audit Committee.

CORPORATE SOCIAL RESPONSIBILITY

As per the provisions of section 135 of the Companies Act, 2013 and rules made thereunder are not applicable to the company for the
financial year 2024-25 based on the Calculation of average net profit under Section 198 and rules made thereunder. Hence, no amount
required to be spent on CSR activities during the financial year 2024-25 and the details pursuant to Annual Report on CSR activities for
the Financial Year 2024-25 is not required to provide to this report for the financial year 2024-25. The composition and other details of
the CSR Committee is included in the Corporate Governance Report which form part of the Board's Report. The Board in its meeting
held on 30^th May, 2025, review/revised the existing CSR Policy of the company to harmonise with the amended carried out by the
Ministry of Corporate Affairs in the Companies (CSR Policy Rules), 2014.

DIRECTORS' RESPONSIBILITY STATEMENT

In Compliance with Sections 134(3) (c) and 134(5) of the Companies Act, 2013, the 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, 2025 as far as possible and to the extent, if any,
accounting standards mentioned by the auditors in their report as not complied with, all other applicable accounting standards
have been followed along with proper explanation relating to material departure;

b) The Directors had selected 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 at the end of the financial year and
profit and loss account of the Company for that period;

c) The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) The Directors had prepared the annual accounts on a going concern basis; and

e) The directors in the case of a listed 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) The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems
were adequate and operating effectively.

POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION

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

DISCLOSURE UNDER SECTION 22 OF THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION,
PROHIBITION AND REDRESSAL), ACT, 2013

In accordance with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013,
a committee has been established at the offices for this purpose. There were no complaints pending for the Redressal at the beginning
of the year and no complaints received during the financial year.

PARTICULARS OF THE EMPLOYEES

Information pursuant to rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed
to this report as Annexure-2. Further, particulars of employees remuneration, as prescribed under section 197(12) of the Companies
Act, 2013, read with Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are not
attached with this report since there was no employee who was in receipt of excess remuneration as prescribed.

RELATED PARTIES TRANSACTIONS

During the financial year, all transactions entered into with the Related Parties as defined under Companies Act, 2013 and Securities
and Exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations 2015, were in the ordinary course of
business and on an arm's length basis and as such did not attract provisions of section 188 (1) of Companies Act, 2013. The Company
has formulated policy on related party transactions. Particular of related party transactions in prescribed Form AOC-2 is attached at
Annexure-3. Approvals from the Audit Committee are obtained even for transactions which are in ordinary course of business and
repetitive in nature. Further, on quarterly basis, disclosures are made to the Audit Committee and to the Board. Details of related party
transactions are given in the notes to financial statements.

None of the Independent Directors have any pecuniary relationship with your Company.

DISCLOSURE OF ACCOUNTING TREATMENT

The financial statements have been prepared in accordance with Indian Accounting Standards (IND AS). The Company has prepared
these financial statements to comply in all material respects with the IND AS, notified under section 133 of the Companies Act, 2013
("the Act") read together with paragraph 7 of the Companies (Accounts) Rules 2014.

AUDITORS AND AUDIT REPORTS

a. Cost Auditors

Pursuant to the provisions of Section 148 of the Companies Act, 2013 and the Rules made there under M/s. Ashish Bhavsar &
Associates, Cost Accountants were appointed for auditing cost accounting records of the Company for the year ending 31^st March,
2025. Board has further appointed M/s. Ashish Bhavsar & Associates, Cost Accountants as Cost Auditors for the year ending 31^st
March, 2026 subject to approval of remuneration by the members of the Company in the Annual General Meeting.

Disclosure on maintenance of Cost Records

The Company made and maintained the Cost Records under Section 148 of the Companies Act, 2013 (18 of 2013) for the
Financial Year 2024-25

b. Internal Auditor

The Company has appointed an Independent firm of Chartered Accountants to act as an Internal Auditor as per suggestion of
auditors and recommendation of the Audit Committee in order to strengthen the internal control system for the Company.

c. Secretarial Auditor

Pursuant to the provisions of Section 204 of the Companies Act, 2013 read with rules made thereunder, the Board of Directors
has appointed M/s. Kamlesh Shah & Co., Practicing Company Secretaries, as Secretarial Auditor to conduct Secretarial Audit of
the Company for the term of Five (5) Financial Year Commencing from 2025-26 till Financial year 2029-30 subject to approval of
members in their Meeting will be held on September 26, 2025. The report submitted by the Secretarial Auditor in Form MR-3
for the financial year ended as on 31^st March, 2025 is attached to this report as Annexure-4. Remarks of secretarial auditor are
self-explanatory.

Annual Secretarial Compliance Report

Pursuant to regulation 24A of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements),
Regulations 2015, Secretarial Compliance Report for the financial year ended 31^st March, 2025 on compliance of all applicable
SEBI Regulations and circulars/ guidelines issued thereunder, was obtained from M/s. Kamlesh Shah & Co., Practicing Company
Secretaries, Secretarial Auditor.

Certificate on Corporate Governance

The Company is committed to observe good corporate governance practices. The report on Corporate Governance for the
financial year ended 31^st March, 2025, as per regulation 34 (3) read with Schedule V of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 forms part of this Annual Report. The requisite Certificate from the Practicing Company Secretary
of the Company confirming compliance with the conditions of Corporate Governance is annexed to this report as Annexure - 6.

Certificate of Non-Disqualification of Directors

As required by Clause 10 (i) of Part C under Schedule V of the SEBI Listing Regulations, the Company has received a certificate from
M/s. Kamlesh M. Shah & Co. (ACS: 8356, COP: 2072), Practicing Company Secretaries certifying that none of our Directors have been
debarred or disqualified from being appointed or continuing as Directors of the Company by Securities and Exchange Board of
India or Ministry of Corporate Affairs or such other statutory authority is annexed to this report as Annexure-7.

d. Statutory Auditors

Members have at their 19thAnnual General Meeting held on September 23, 2022, approved the re-appointment of M/s. Parikh &
Majmudar, Chartered Accountants, as statutory auditors of the for a terms of five years as per provisions of the Companies Act, 2013.

Statutory Auditors' Report

The observations of Statutory Auditor in its reports on standalone and consolidated financials are self-explanatory and therefore
do not call for any further comments.

Details in respect of frauds reported by auditors

There were no instances of fraud reported by the auditors. Further, there are no Qualifications, reservations or adverse remarks
contain in the Auditor's Report for the year under review.

MATERIAL CHANGES / INFORMATION

a. In respect of material changes or commitments during the financial year 2024-25, company has issued 48,00,000 Warrants
Convertible into 48,00,000 Fully paid up Equity Shares of ?10/- each at a price not less than ?25/-(Includes Premium of ?15/-) to
the promoter allottee (SAL CARE Private Limited) on a preferential basis as on 29^th June, 2024 approved by Special Resolution
passed at Extra ordinary General Meeting was held through Video Conference("VC") and /or other audio visual means("OAVM")
(Hereinafter Referred to as "Electronic Mode") on Saturday, 08^th June, 2024. Except these there have been no material changes or
commitments after the closure of the financial year up to the date of this report that may have substantial effect on the business
and financial of the Company.

b. No significant and material orders have been passed by any of the regulators or courts or tribunals impacting the going concern
status and companies operations in future.

ANNUAL RETURN

Annual Return in Form MGT-7 in compliance with section 92 of the Companies Act, 2013 read with applicable rules made thereunder is
available at the website of the Company i.e. www.salsteel.co.in.

GENERAL

Your Directors state that no disclosure or reporting is required in respect of the following matters as there were no transactions on
these matters during the year under review:

• Details relating to deposits covered under Chapter V of the Act.

• Issue of equity shares with differential rights as to dividend, voting or otherwise.

• Issue of shares (including sweat equity shares) to employees of the Company under any scheme save and except Employees' Stock
Options Schemes referred to in this Report.

• Neither the Managing Director nor the Whole-time Directors of the Company receive any remuneration or commission from any
of its subsidiaries.

• No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and
Company's operations in future.

• No fraud has been reported by the Auditors to the Audit Committee or the Board.

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

• There is no proceeding pending under the Insolvency and Bankruptcy Code, 2016 during the Financial Year 2024-25.

• There was no instance of onetime settlement with any Bank or Financial Institution during the Financial Year 2024-25.

APPRECIATION

Your Directors place on record their sincere appreciation for the valuable support and co-operation as received from government
authorities, Financial Institutions, Banks and ARCs during the year. Directors are also thankful for the support extended by Customers,
Suppliers and contribution made by the employees at all level. Directors would also like to acknowledge continued patronage extended
by Company's shareholders in its entire endeavor.

CAUTIONARY STATEMENT

Statement in the Board's Report and the Management Discussion and Analysis describing your Company's objectives, expectations or
forecasts may be forward-looking within the meaning of applicable securities laws and regulations. Actual results may differ materially
from those expressed in the statement. Important factors that could influence your Company's operations include global and
domestic demand and supply conditions affecting selling price of finished goods, input availability and prices, changes in government
regulations, tax laws, economic developments within the country and other factors such as litigation and industrial relations

By order of the Board of Directors
For SAL Steel Limited

Sd/-

Place : Santej, Gujarat Rajendrakumar Shah

Date : 14^th August, 2025 Chairman

DIN:00020904

Registered Office:

5/1 Shreeji House,

B/h M.J. Library, Ashram Road, Ahmedabad-380 006
CIN: L29199GJ2003PLC043148