Nova Iron & Steel Ltd has appointed Palak Jindal as an Additional Director in the category of Non-Executive Independent Director (Woman), effective August 8, 2026. The appointment was approved by the Board of Directors during a meeting held on the same day and is subject to shareholder approval at the next general meeting. This governance update coincides with a disclosure regarding significant delays in the submission of the company’s statutory financial results for the fiscal year ended March 31, 2026.

The Board confirmed that Palak Jindal has not been debarred from holding the office of Director by virtue of any SEBI Order or other authority, in compliance with SEBI Letter dated June 14, 2018, and BSE Circular LIST/COMP/14/2018-19 dated June 20, 2018. Her term is set for five years. The Company Secretary, Dheeraj Kumar, signed the disclosure submitted to the Bombay Stock Exchange Limited.

Director Appointment Details

Palak Jindal joins the Board pending shareholder ratification. Her appointment aligns with regulatory requirements for independent director representation. Key details of her profile are outlined below:

Regulatory Compliance and Status

In compliance with Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Master Circular HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, the company disclosed the brief profile of the new director. The Board confirmed that there are no relationships between the directors that would affect independence.

The Board noted that the company was required to submit its Audited Financial Results, along with the Auditor's Report, for the quarter and financial year ended March 31, 2026, on or before May 30, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Nova Iron & Steel had previously intimated the stock exchanges on May 30, 2026, regarding the anticipated delay. The management attributed this lag to the consequential impact of delays in submitting Unaudited Financial Results for the quarter and half-year ended September 30, 2025, and the quarter and nine months ended December 31, 2025.

What the Numbers Show

While no financial metrics were disclosed in this specific filing, the pattern of delayed submissions highlights operational bottlenecks in the company’s financial reporting cycle. The delay in the final audited results for FY26 is directly linked to earlier failures to meet deadlines for interim unaudited reports in Q1FY26 and Q2FY26. This suggests a systemic issue in the finalization process rather than an isolated incident, potentially impacting investor confidence and regulatory standing until the filings are completed. The company stated it is taking all necessary steps to submit the Audited Financial Results at the earliest.

The Directorate of Enforcement (ED) has provisionally attached 33,31,000 shares of nova iron & steel , representing a 9.21% stake, held by Aromatic Steel Private Limited. Valued at ₹4,19,37,290 based on the share price as on August 07, 2026, the attachment is part of an ongoing investigation into alleged money laundering linked to the diversion of funds from Bhushan Power & Steel Limited (BPSL). This action follows earlier provisional attachment orders received by the company on June 26, 2026, and July 09, 2026.

The attachment was executed under Provisional Attachment Order No. 21/2026, issued by Mayank Prakash, Deputy Director of the ED’s Delhi Zonal Office-I, on August 07, 2026. The order invokes Section 5(1) of the Prevention of Money Laundering Act (PMLA), 2002, alleging that the shares represent proceeds of crime or value equivalent to such proceeds. The ED notified the Bombay Stock Exchange on August 08, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Investigation Background

The ED’s probe centers on an unsecured loan agreement dated July 20, 2011, between BPSL and Nova Iron & Steel Limited (NISL). Under this agreement, BPSL disbursed a total of ₹153,57,19,529 to NISL between FY2011-12 and FY2015-16 for the installation of a 12 MW Waste Heat Recovery Based Power Plant and induction furnace. The ED alleges that these funds were diverted from bank loans sanctioned to BPSL by a consortium of 33 banks, led by Punjab National Bank, and subsequently misappropriated by the erstwhile promoters of BPSL.

According to the ED’s findings, NISL repaid only ₹27,85,15,681 towards principal and paid ₹92,33,35,238 in interest. Consequently, a sum of ₹201,20,89,467 remains pending. The ED contends that this outstanding amount constitutes proceeds of crime, as it originated from fraudulently diverted bank funds involving criminal conspiracy, cheating, and forgery by BPSL’s former management.

Shareholding and Beneficial Ownership

Aromatic Steel Private Limited holds 67,49,000 shares (18.67%) of Nova Iron & Steel Limited. Of this holding, 34,18,000 shares (9.46%) were previously attached under PAO No. 15/2026 dated June 25, 2026. The current order attaches the remaining 33,31,000 shares (9.21%).

The ED asserts that Aromatic Steel Private Limited is beneficially owned and controlled by Sanjay Singal, the erstwhile promoter of BPSL. This conclusion is drawn from bank records showing Singal as an authorized signatory and beneficial owner of Aromatic Steel’s accounts, as well as statements from former BPSL executives. The ED further notes that Sanjay Singal admitted in his statement dated November 17, 2025, that he controls Aromatic Steel Private Limited and other group entities.

Company Response

Nova Iron & Steel Limited stated that it is examining the contents of the order and will take appropriate legal steps to safeguard its interests. The company maintains that the provisional attachment order does not have a material impact on its day-to-day operations. Dheeraj Kumar, Company Secretary, signed the disclosure filed with the exchange.