ಅಡಿಟರ್ಸ್ ರಿಪೋರ್ಟ್Bharat Coking Coal Ltd.

Mar 31, 2026

We have audited the accompanying Standalone Financial Statements of BHARAT
COKING COAL LIMITED (“the Company”),which comprise the Balance Sheet as
at 31^st March 2026, 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 then ended on that date and a summary of the material accounting policy
information and other explanatory information (hereinafter referred to as “standalone
financial statements”) in which are included the returns for the year ended on that date
audited by the area /units auditors of the Company’s 15 (fifteen) area /units comprising
(1) Barora Area; (2) Block-II Area; (3) Govindpur Area; (4) Katras Area; (5) Sijua
Area; (6) Kusunda Area (including Bhuli Township Area); (7) P B Area; (8) Bastacolla
Area (including Mines Rescue Station); (9) Lodna Area (including Lodna Washery);
(10) Eastern Jharia Area; (11) C V Area; (12) Dahibari Washery; (13) Western Jharia
Area; (14) Washery Division; (15) Madhuban Coal Washery.

In our opinion and to the best of our information and according to the explanations
given to us, The aforesaid 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(financial position) of the Company as at 31^st March, 2026, and its
Profit(financial performance including other comprehensive income), changes in equity
and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with the
Standards on Auditing (SAs) specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the Auditor’s Responsib¬
ilities 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 together with the ethical 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 Code of Ethics. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion on the financial statements.

Emphasis of Matter We draw attention to the following matter in the notes to the Standalone Financial Statements:
(a)	The Company has revised its accounting treatment of Input GST on capital goods with effect from 2025-26. Earlier from FY 2020-21 to FY 2024-25 input GST on capital goods was capitalized instead of being recognized separately as current assets. With effect from 01.04.2025 the practice of capitalizing GST on capital expenditure has been discontinued. The company has now started availing Input Tax Credit (ITC) on eligible capital expenditure and recognising the same as current assets (Refer Note No. 6.2 of the Standalone Financial Statements).	(a) I’ursuant to Notification No. 09/2025 - Central Tax (Rate), the Goods and Services Tax (GST) rate on coal has been increased from 5% to 18% with effect from September 22, 2025. Consequently, the inverted duty structure no longer exists, and accumulated Input Tax Credit (ITC) is being utilized against output tax liability. Accordingly, with effect from April 01, 2025, the Company has revised its accounting treatment by commencing to avail eligible GST ITC on capital items and discontinuing the capitalization of such GST except on Laptops and Mobile Phones.
(b)	During the year the company has taken steps to conduct a hundred percent physical verification of all store items of entire BCCL. Accordingly, the verification audit was conducted by several audit firms to ascertain the present status of the store items in various stores of the company for the financial year 2024-25. The company has not yet come up with the actual financial impact on the basis of such reports received till the date of this audit. Accordingly, no consequential financial impact, if any, is considered by the management in the standalone financial statements as on 31st March 2026 (Refer Note No. 5.1 of the Standalone Financial Statements).	b)The consequential financial implication, if any, shall be accounted for upon receipt of the reports of the physical verification.
(c)	Certain debit/credit balances including trade receivables, other current and non-current assets, trade payables, other financial liabilities and other current and non-current liabilities as on the Balance Sheet date have been partially confirmed, and reconciliation with the respective ledger balances remains in progress. Hence the financial impact thereof, if any, on such pending reconciliation on the financial statement cannot be fully determined at this stage.	c) Reconciliation of Trade Receivables takes place continuously. Efforts have been taken to expedite the pending reconciliation. Moreover, confirmation in respect of some of the trade payables were obtained and efforts will be made to collect the same against all the trade payables
(d)	Up to the previous year 2024-25, the company treated levies on coal production and sales imposed by Central, State and Local Authorities as amounts collected in an agency capacity. In the current year 2025-26, the company reassessed the accounting treatment of such levies based on their underlying nature, relevant accounting standards, legal provisions and opinions obtained from accounting experts. Based on this assessment, the company concluded that for certain levies it acts as a principal and accordingly, the Revenue from Operations as disclosed in Note 12.1 is inclusive of such levies on sales. In the state of West Bengal, cess on coal is computed based on average production of preceding years and notified prices, whereas recoveries from customers are based on actual dispatches, resulting in timing differences. Such differences were historically adjusted through an “Equalization Fund” as	d)Historically, the company treated levies on coal production and sales imposed by Central, State and Local Authorities as amounts collected in an agency capacity. Pursuant to observations of the C&AG, the company reassessed the accounting treatment of such levies based on their underlying nature, relevant accounting standards, legal provisions and opinions obtained from accounting experts. Based on this assessment, the company concluded that for certain levies it acts as a

	Liability in Balance Sheet, which in the current year has been assessed by the management to be no longer required and hence written back. The same has been disclosed in Note 16(6)(ac). (e) With effect from 07.10.2024, the Government of Jharkhand started levying Jharkhand Mineral Bearing Land (JMBL) Cess. During the year, the company has decided to recover the JMBL cess on the coal dispatched by the Washeries amounting to ?168.67 crores and account for the same as revenue. Such amount has already been deposited by the company to the Government exchequer in respective periods. Our opinion is not modified in respect of the above matters.		principal. Accordingly, the Revenue from operations is disclosed in Note 12.1 is inclusive of such levies on sales. In the state of West Bengal, cess on coal is computed based on average production of preceding years and notified prices, whereas recoveries from customers are based on actual dispatches, resulting in timing differences. Such differences were historically adjusted through an “Equalisation Fund” as Liability in Balance Sheet, which is no longer required as per the above assessment e) JMBL Cess on the coal dispatched by the Washeries has been treated as revenue and corresponding trade receivables have been accounted for.
	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 year. These matters have been addressed in the context of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, we do not provide a separate opinion on these matters. Each matter below, description of how out audit addressed the matter is provided in that context. We have determined the matters described below to be the key audit matters in our report.
Srl No.	Key Audit Matter	Auditor''s Response
1.	Stripping Activity: In case of opencast mining, the mine waste materials (“overburden”) which consists of soil and rock on the top of coal seam is required to be removed to get access to the coal and its extraction. The process of removing overburden to access coal is referred to as stripping. Stripping is necessary to obtain access to coal and occurs throughout the life of an opencast mine. Stripping costs during development and production phases are classified in property, plant, and equipment. Stripping costs are accounted for separately for individual mines. The company accounts for stripping activities as follows:	Our Audit Procedures: We performed the following substantive procedures: • Obtained working data of Stripping Adjustment and test checked that the total expenses incurred during the year is allocated between coal production and overburden. Ensured about accuracy and completeness of expenses considered in calculation of cost of overburden. • Performed analytical procedures and test of details for reasonableness of expenses considered stripping activity adjustment calculation.

Srl No.	Key Audit Matter	Auditor''s Response
	Stripping costs during the Development	• Checked the stripping ratio to be
	phase.	charged under amortisation for mine
	These are initial overburden removal	development expenditure for balance
	costs incurred to obtain access to coal to	period of mines.
	be extracted. These costs are capitalised when it is probable that future economic	• Checked that the accounting policy
	benefits will flow to the company and	applied and management''s judgments
	costs can be measured reliably. Once the	used for Stripping Activity Adjustment
	production phase begins, capitalised	are appropriate.
	development stripping costs are amortised over the mine life.	• Reliance has been placed on the
		judgements, technical estimations of
	Stripping costs during the production	internal / external technical and other
	phase:	experts for the purpose of technical/
	These are overburden removal costs	commercial evaluation of the
	incurred after the mine has been brought	stripping ratios, proved/ probable
	to revenue as per the policy of the	reserves in mines, current and
	company. Stripping costs during the	expected volume of production, life
	production phase can give rise to two	of the mines etc. and submissions
	benefits, the extraction of coal in the	made to the authorities in this respect.
	current period and improved access to	• Reviewed the requirements of
	coal which will be extracted in future	Appendix B- Stripping Costs in the
	periods. Stripping costs during the	Production Phase of a surface mine
	production phase are allocated between the inventory produced and the stripping activity asset using a standard strip ratio (overburden-to-coal). The standard strip	of Ind AS- 16 “Property, Plant and Equipment” and assessed the compliances and appropriateness of
	ratio is the total volume of Overburden	the policy being followed, disclosures
	expected to be removed over the life of	etc. made in the financial statements
	the mine against the total coal to be	in this respect and those as required
	extracted over the life of the mine. When	in terms of Ind AS.
	the actual volume of overburden	Based on the procedures performed,
	removed is greater than the expected volume of overburden removal, the	we have satisfied ourselves regarding
	stripping cost for excess overburden removed over the expected overburden removal is capitalised to the stripping activity asset. The stripping activity asset is amortised over the expected useful life of the mine. Changes in geo¬ mining conditions may have an impact on the standard strip ratio. Changes to the ratio are accounted for prospectively. Stripping activity asset are included separately under Property, plant, and equipment. Stripping activity asset for stripping costs during the production phase is recognised in the mines with a rated capacity of one million tonnes per annum and above.	stripping activity accounting.

Srl No.	Key Audit Matter	Auditor''s Response
	The stripping activity accounting is not applied in Mine Developer and Operator (MDO) arrangements structured as a revenue-sharing arrangement. Stripping activity provision (Ratio Variance) Stripping activity provision was recognized or reversed based on the current ratio of Overburden to Coal as compared to the average Stripping ratio (Standard ratio) of the mine as per the policy followed in earlier years since inception consistently by the company. This accounting method being substantiated and validated by a multitude of authoritative bodies and forums, including income tax authorities, the provision created in earlier years have been continued. The amount of the provision so carried forward is reversed periodically in systematic manner on extraction of actual volume of overburden being in excess of the expected volume in terms of the mine specific plan as approved on mine to mine basis and disclosed as reversal of stripping activity provision under other operating revenue. Such reversal is specific to the mines at the rate the said provision was originally recognised. (Refer Note No. 2.19 & 2.23 to the Standalone Financial Statements.)
2.	Ind AS 115 “Revenue from Contracts with Customers”: Revenue recognition and adjustments for coal quality variance involve critical estimates. The revenue recognized by the company in a particular contract is dependent on the sale agreement / allotment in e-auction for the respective customer. Revenue from sale of coal is recognized at declared grade of coal. Subsequent adjustments are made to the transaction price due to grade mismatch/slippage of the transferred coal. The variation in the contract price if not settled mutually	Our Audit Procedures: Our Audit procedures based on which we arrived at the conclusion regarding reasonableness of Revenue recognition includes the following: • Assessment of the application of the provisions of Ind AS 115 in respect of the Company’s revenue recognition and appropriateness of the estimated adjustments in the process. • Obtained and evaluated trend of past results prepared based on the outcome of test from mutually agreed quality testing laboratory or Referee quality testing laboratory.

Srl No.	Key Audit Matter	Auditor''s Response
	between the parties to the contract is referred to third party testing and the Company estimates the adjustments required for revenue recognition pending settlement of such dispute. Such adjustments in revenue are made on estimated basis following historical trend. The revenue recognition being a significant matter involving material adjustment for Grade Slippage requiring judgements and estimates for past trend, etc., has been considered to be a key audit matter. (Refer Additional Note 16 (6)(n)-Other Matters to the Standalone Financial Statements.)	• Obtained and evaluated calculation and working of grade slippage provision. • Evaluated the controls in place for estimation, recognition and disclosure in the standalone financial statements. • Checking of selected transactions on sample basis and tested for identification of contracts involving disputes relating to grade mismatch/ slippage with respect to the terms of the contract, evaluation of the satisfaction of performance obligation checking the adjustment to the revenue due to variation in transaction price. • Reviewed the agreement with the customers and invoices raised considering the terms and conditions thereof. • We have performed tests to establish the basis of estimation of the consideration and whether such estimates are commensurate with the accounting policy of the Company. • Reviewed the Adequacy of the dis¬ closure as per Ind AS 115. • Quality parameters and assessment require technical knowledge and therefore reliance have been placed on technical findings and reports in this respect. • Evaluated the design, the processes and internal controls relating to revenue accounting standard. • Evaluated the detailed analysis performed by management on revenue streams by selecting samples for the existing contracts with customers and considered revenue recognition policy in the current year in respect of those revenue streams.

Srl No.	Key Audit Matter	Auditor''s Response
		• Evaluated the appropriateness of the disclosures provided under the revenue standard and assessed the completeness and mathematical accuracy of the relevant disclosures.
3.	Evaluation of uncertain tax positions The Company has material uncertain tax positions, including matters under dispute which involves significant judgment to determine the possible outcome of these disputes. (Refer Additional Note No. 16(1) to the Standalone Financial Statements.)	Our audit procedures include the following: • Evaluated the design and implement¬ ation of controls in respect of provision for current tax and the recognition and recoverability of deferred tax assets. • Considered management''s assessment of the validity and adequacy of provisions for uncertain tax positions, evaluating the basis of assessments and reviewing relevant correspond¬ ence and legal advice where available including any information regarding similar cases with the relevant tax authority. • Assessed the appropriateness of management''s assumptions and estimates including the likelihood of generating sufficient future taxable income to support deferred tax assets. Based on the procedure performed above, we observed that the manage¬ ment estimates regarding current and deferred tax balances and provision for uncertain tax positions is sufficient.
4.	Valuation of defined benefits obligation for employees: Accounting for defined benefit plans is based on actuarial assumptions which require measuring the obligation, evaluating the plan assets and calculating the corresponding actuarial gain or loss, all future cash flows discounted to present value for arriving at the obligation.	Our audit procedures include the following: • Evaluated the key assumptions applied (discount rates, inflation rate, mortality rate) as per the Guidance Note applicable. • Assessed the competence, indepe¬ ndence, and integrity of the Company’s actuarial expert.

Srl No.	Key Audit Matter	Auditor''s Response
	Significant estimates including the discount rates, the inflation rates and expected escalation of salary, awards and revisions made from time to time, and the mortality rate are made in valuing the company’s defined benefits obligations. The company engages external actuarial specialists to assist in selecting appropriate assumptions and calculate the obligations. Valuation of the defined benefit obliga¬ tions requires a high degree of estimation based on vital assumptions and as such adequate attention is required to be given in this respect during the audit. Refer Additional Note No. 16(5) to the Standalone Financial Statements.	• The controls over the review and approval of actuarial assumptions, the completeness and accuracy of data provided to external actuary, and the reconciliation to data used in expert''s calculation were tested. • Discussed with the Management about the liability accrued due to defined benefit plan and to under¬ stand the business and assessed if there was any inconsistency in the assumptions. • Adequacy of the Company’s disclosure as per Ind AS 19 in the notes is verified. • Placing reliance on the actuarial assumptions including discount rates, the inflation rates, escalation of salary and the mortality rate, etc. Based on the audit procedures involved, we observed that the assumptions made by the manage¬ ment in relation to the valuation were supported by available evidences.
5.	Evaluation of provisions and Contingent Liabilities: There are several litigations including direct and indirect taxes, various claims, etc. pending before various forums against the Company and the management’s judgement is required for estimating the amount to be provided and/or disclosed as contingent liability. We identified this as a key audit matter because the estimates and assessment with respect to these involve a significant degree of management’s judgement, interpretations, and may therefore require adequate attention to arrive at the required conclusion. (Refer Note 16.1 to the Standalone Financial Statements, read with the Material Accounting Policy Information No. 2.21)	Our Audit procedures based on which we arrived at the conclusion regarding reasonableness of disclosure of contingent liability and recognition of provisions includes the following • We have obtained an understanding of the Company’s internal instructions and procedures in respect of estimation, assessment and disclosure of contingent liabilities. • Understood and tested the design and operating effectiveness of controls as established by the management for obtaining all relevant information for pending litigation cases. • Discussed with the management regarding any material develop ments and status of matters pending as on 31.03.2026.

Srl No.	Key Audit Matter	Auditor''s Response
		• Read various correspondences and related documents pertaining to litigations involved and relevant external legal opinions obtained by the management and performed substantive procedures on estimation supporting the disclosure of contingent liabilities. • Examined management’s judge¬ ments and assessments with respect to the provisions if any required for any such matter. • Reviewed the management’s assessments of those matters which have not been provided for or disclosed as contingent liability since the probability of material outflow has been considered to be remote. • Reviewed the adequacy and completeness of disclosures. Based on the above procedures performed, the estimation of provision and disclosures for contingent liabilities have been considered to be adequate and reasonable.
	Evaluation of accuracy of Inventory	We have conducted the following
6.	Movement and Valuation -Ind AS 2 -	checks to verify the matter:
	Inventories : Inventories are assets :	• We verified the movement of stock with reference to the Annual
	a. Held for sale in the ordinary	Coal Stock Measurement as
	course of business;	reported in Form- H.
	b. In the process of production for	• Raw coal has been measured at
	such sale;	the lower of cost and net realizable
	c. In the form of materials or	value, in accordance with Ind
	supplies to be consumed in the	AS 2.
	production process or in the	• The valuation of raw coal is
	rendering of services.	performed on a weighted average
	Measurement of Inventories: Inventories shall be measured at the lower of cost and net realizable value.	cost basis, which we have verified. • The valuation of washed coal is valued at cost and net realisable
	Cost of inventories	value whichever lower and washed
	The cost of inventories shall	power coal and rejects being by-
	comprise all costs of purchase, cost	products are valued at net
	of conversion, and other costs	realisable value basis.

	incurred in bringing the inventories	• Hand-picked rejects has no realisable
	to their present location and condition.	value. • We noted that difference between “Saleable Book Stock” and Measured Saleable Book Stock” does not exceed /- 5%; accordingly, no provision has been considered necessary. • We performed checks to ensure that no other costs have been included in inventory valuation that are required to be excluded under Ind AS 2.

Information Other than the 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 Director''s Report including Annexures to Director''s
Report, CSR Report, R&D and Report on Corporate Governance and
Management Discussion and Analysis Report but does not include the
financial statements and our auditor''s report thereon. The Director''s
Report including Annexures to Director''s Report, CSR Report, R&D
and Report on Corporate Governance and Management Discussion and
Analysis Report, is not made available to us till the date of this report
and is expected to be made available to us after the date of this Audit
Report.

Our opinion on the financial statements 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 identified above when it
becomes available 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.

When we are provided and we read the Director''s Report including
Annexures to Director''s Report, CSR Report, R&D and Report on
Corporate Governance and Management Discussion and Analysis
Report, if we conclude that there is a material misstatement therein, we
are required to communicate the matter to those charged with governance
and describe actions applicable in the applicable laws and regulations.

Responsibilities of the Management and Those Charged with Governance
for the Standalone Financial Statements

The Company''s Board of Directors is responsible for the matters stated in
section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the
preparation of these financial statements that give a true and fair view of
the financial position, financial performance, total comprehensive income,
changes in equity and cash flows of the Company in accordance with the
Ind AS and other accounting principles generally accepted in India,
including the Accounting Standards specified under section 133 of the
Act read with relevant rules, as amended. 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 design, implementation
and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
standalone financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.

In preparing the Standalone Financial Statements, management is
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 management either
intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.

The Board of Directors are also responsible for overseeing the company''s
financial reporting process.

Auditor’s Responsibility for the Audit of the Standalone Financial
Statements

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

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
financial statements, 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 financial controls 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 on whether the Company has
adequate internal financial controls system 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 made
by management.

• Conclude on the appropriateness of management''s 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 Company''s ability 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 financial statements 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
financial statements, including the disclosures, and whether the standalone
financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial
statements that, individually or in aggregate makes it probable that the
economic decisions of a reasonably knowledgeable user of the standalone
financial statements 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 financial statements.

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.

From the matters communicated with those charged with governance, we
determine those matters that were of most significance in the audit of the
standalone financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor''s report unless
law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of
such communication.

Other Matters

We did not audit the standalone financial statements/information of 15
areas/ units included in the standalone financial statements of the Company
whose financial statements / financial information reflect total assets of
? 11,376.25 crores as at 31st March 2026 and total income of ? 14,025.00
crores for the year ended on that date, as considered in the standalone
financial statements. The standalone financial statements/ information of
these area / unit has been audited by the area / unit auditors whose reports
have been furnished to us, and our opinion in so far as it relates to the
amounts and disclosures included in respect of these area / units, is based
solely on the report of such area / unit auditors.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required under section 143(5) of the Companies Act, 2013, we give
in the Annexure - I, a statement on the Directions and the Additional
Directions issued by the Comptroller and Auditor General of India after
complying with the suggested methodology of Audit, the action taken
thereon and its impact on the accounts and Standalone financial
statements of the Company. This statement has been prepared
incorporating the comments of the Area/ Unit Auditors of the Company
mentioned in their Auditors’ Reports.

2. As required by the Companies (Auditor’s Report) Order, 2020 (“the
Order”), as amended, issued by the Central Government of India in
terms of subsection (11) of section 143 of the Companies Act, 2013, we
give in the Annexure - II a statement on the matters specified in
paragraphs 3 and 4 of the Order to the extent applicable for the year
under audit.

3. As required by Section 143 (3) of the Act, based on our audit 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 and proper returns adequate for the purposes of our audit have
been received from the area / units not visited by us.

(c) The reports on the accounts of the area / units of the Company audited
under Section 143 (8) of the Act by area / unit auditors have been sent
to us and have been properly dealt with by us in preparing this report.

(d) The Balance Sheet, the Statement of Profit and Loss including Other
Comprehensive Income, Statement of Changes in Equity and the

Statement of Cash Flow dealt with by this Report are in agreement with
the relevant books of account and with the returns received from the
area / units not visited by us.

(e) In our opinion, the aforesaid financial statements comply with the
Indian Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.

(f) In pursuance to the Notification No. G.S.R. 463(E) dated 05-06-2015
issued by the Ministry of Corporate Affairs, Section 164(2) of the Act
pertaining to disqualification of Directors, is not applicable to the
Government Company.

(g) With respect to the adequacy of the internal financial controls over
financial reporting of the Company and the operating effectiveness of
such controls, refer to our separate Report in “Annexure III”. Our report
expresses an unmodified opinion on the adequacy and operating
effectiveness of the Company’s internal financial controls over financial
reporting.

(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) Rules,
2014, as amended, in our opinion and to the best of our information and
according to the explanations given to us:

(i) The Company has disclosed the impact of pending litigations on its
financial position in its standalone financial statements - Refer Note
16(1) to the standalone financial statements.

(ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.

(iii) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.

(iv) (a) The management has represented that, to the best of its knowledge

and belief, other than as disclosed in the notes to the accounts, 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 person(s) or entity(ies),
including foreign entities ("Intermediaries"), with the
understanding , whether recorded in writing or otherwise, that
the Intermediary 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.

(b) The management has represented, that, to the best of its knowledge
and belief, other than as disclosed in the notes to the accounts, no
funds have been received by the company from any person(s) or
entity(ies), 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; and

(c) Based on such audit procedures we have considered reasonable and
appropriate in the circumstances; nothing has come to our notice
that has caused us to believe that the representations under sub¬
clause (a) and (b) contain any material misstatement.

(v) (a) Dividends declared or paid during the year by the Company are in

compliance with section 123 of the Act.

(b) During the year, the Company’s Shareholders in the Annual General
meeting held on 25^th July 2025 have approved the remaining
dividend of ?844.2175 crores of 5% Non-Convertible Cumulative
Redeemable Preference Shares and accordingly the amount was
paid on 28^th July 2025.

(vi) Based on examination which includes test checks, the company has
used an accounting software for maintaining its books of account for the
financial year ended 31^st March 2026, which has a feature of recording
audit trail (edit log) and the same has operated throughout the year for
all the relevant transactions recorded in the software. Further during the
course of our audit we did not come across any instances of audit trail
feature being tempered with and the audit trail has been preserved by
the company as per statutory requirements for record retention.

For Nag & Associates For Bharat Coking Coal Ltd

Chartered Accountants
Firm Regn. No: 312063E

Rajesh Kumar

^{(Madan Mohan Prasad)} Director (Finance) & CFO

Partner

Membership No. 074568 ^{DIN 11537673}

UDIN: 26074568SZIGIR6906

Date: 22.04.2026 ^{Date: 22}.⁰⁴.²⁰²⁶

Place: Dhanbad Place: Dhanbad