We have audited the accompanying Standalone Quarterly /Annual Ind AS Financial Statements
of BEML LAND ASSETS LTD ("the Company -BLAL"), which comprise the standalone Balance
Sheet as at March 31,2025, Statement of Profit and Loss and the Statement of Cash Flows for
the year then ended, and notes to the Indian Accounting Standards ("Ind AS") Financial
Statements, including a summary of significant accounting policies and other explanatory
information for the Quarter/year ended March 31 2025.

In our opinion and to the best of our information and according to the explanations given to
us, subject to the significance of the matter discussed in the Emphasis of Matter the aforesaid
Ind AS 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 Ind AS
prescribed under section 133 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 of the Company as at 31st March, 2025 and its Loss and its cash flows for the
year ended on that date.

Emphasis of Matter:

Fair Valuation of Investment Property

We draw attention to Land & Buildings where they have been carried as Investment property
as per Ind AS-40. Cost model has been adopted for valuation of Investment properties under
Ind AS-40. The fair value of the property is Rs. 2,32,537 Lakhs as per the report of a certified
valuer Dt 22 Oct 2022.

In line with the disclosure requirements under Ind AS-40 Standard and as per the Accounting
Policy no 2.2 requires all entities to measure the fair value of investment property for the
purpose of disclosure even though they are required to follow the cost model. However, as per
para 53 of Ind AS-40, in exceptional cases, if the fair value of the investment property is not
reliably measurable on a continuing basis, the entity shall make the disclosures required by
paragraph 79(e) that the reason why the fair value cannot be measured reliably.

The Company has not initiated valuation of assets on Fair Value basis for current period 2024¬
25. The Management has responded that the registration of various property is under progress
and after completion of the registration, the valuation process will be initiated.

We conducted our audit in accordance with the Standards on Auditing ("SAs") specified u/s 143
(10) of the Act. Our responsibilities under those Standards are further described in the Auditors'
Responsibilities for the Audit of the Ind AS 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 Ind AS Financial Statements under the provisions of the Act and the Rules there
under, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the ICAI's Code of Ethics. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key Audit Matters are those matters that, in our professional judgment, were of most
significance in our audit of the Standalone Ind AS financial statements for the financial year
ended March 31,2025. These matters were addressed in the context of our audit of the Ind AS
financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.

We have determined the matters described below to be the key audit matters to be
communicated in our report. We have fulfilled the responsibilities described in the Auditor's
responsibilities for the audit of the Ind AS financial statements section of our report, including
in relation to these matters.

Accordingly, our audit included the performance of procedures designed to respond to our
assessment of the risks of material misstatement of the Ind AS financial statements. The results
of our audit procedures, including the procedures performed to address the matters below,
provide the basis for our audit opinion on the accompanying Ind AS financial statements.

We draw attention to the following points:

Non-Recognition of Deferred Tax Asset

A deferred tax asset shall be recognised for the carry forward of unused tax losses and unused
tax credits to the extent that it is probable that future taxable profit will be available against
which the unused tax losses and unused tax credits can be utilised.

The existence of unused tax losses is strong evidence that future taxable profit may not be
available. Therefore, when an entity has a history of recent losses, the entity recognises a
deferred tax asset arising from unused tax losses or tax credits only to the extent that the entity
has sufficient taxable temporary differences or there is convincing other evidence that sufficient
taxable profit will be available against which the unused tax losses or unused tax credits can be
utilised by the entity.

Since there is no convincing evidence that sufficient future taxable profit will be available
Deferred Tax asset is not recognised in the Financial Statements.

Other Matters:

Non-Compliance with Provisions of the Companies Act, 2013 and SEBI (LODR), Regulations
2015:

1. As per 2nd proviso to Sec 149(1) of the Companies Act 2013 and Rule 3 of the Companies
(Appointment and Qualification of Directors) Rules 2014, the Company was required to appoint

One Woman Director. The Company being a Government Company, appointments of Women
or Independent Directors are made based on the Orders issued by the Government of India
through the Ministry of Defence. The Company has requested Government of India to issue
necessary order for appointment of Woman Independent Director and response from the
Government of India is awaited.

2. As per Sec 149 (4) of the Companies Act 2013 read with Regulations 17(1)(a) and 17(1 )(b)
of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, every Listed
Public Company, whose Chairperson is an executive Chairperson, shall consist of 50% of the
total strength of the Board as Independent Directors/Non-Executive Directors, the aforesaid
requirement has not been met by the Company during the financial year 2024-25.

3. During the Financial Year 2024-25, the Company has not constituted the Audit Committee,
Nomination and Remuneration Committee and Stakeholders Relationship Committee as per
Regulation 18, 19 & 20 of SEBI (Listing Obligation and Disclosure Requirements) Regulations
2015 and Sec 177 & 178 of the Companies Act, 2013. However, one independent director was
appointed on 17.04.2025and accordingly an Audit Committee, Nomination and Remuneration
Committee and Stakeholders Relationship Committee were constituted during the FY2025-26.
Requirement of two independent directors on the audit committee is not met as per the
Companies Act and SEBI listing regulations.

4. Penalty for Non-compliance: Stock Exchanges

The Company has been in non-compliance with certain provisions of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 during the financial years 2023¬
24 and 2024-25. For the financial year 2023-24, the Company was non-compliant with
Regulations 17 to 20 and 33, and for the financial year 2024-25, the Company continued to be
non-compliant with Regulations 17 to 20.

In respect of the above non-compliances, Stock Exchanges have imposed penalties amounting
to ' 95.77 lakhs (including GST) for FY 2023-24 and ' 95.70 lakhs (including GST) for FY 2024¬
25, aggregating to '191.47 lakhs as on March 31, 2025 (including an estimate for the fourth
quarter of FY 2024-25).

It has also been informed that the penalty is expected to continue for upcoming quarters until
three Independent Directors, including one Woman Director, are appointed by the Ministry on
the Board of BEML Land Assets Limited. In respect of penalty so imposed, the Company has
been submitting applications periodically to BSE & NSE seeking wavier of fines and reply is
awaited. Further, Company has written letters to Ministry of Defence to take necessary action
for the appointment of requisite number of Executive Directors and Independent Directors
including woman director on Board for ensuring compliance. Regulation 102 of SEBI (LODR)
provides for relaxation of penalty charges if SEBI is satisfied that the non-compliance is caused
due to factors affecting a class of entities but being beyond the control of these entities.

5.Rental Income is not recognised for properties utilized by BEML Ltd.

As a part of strategic disinvestment of BEML and the scheme of arrangement approved by
Ministry of Corporate Affairs, the identified surplus/ non-core assets of BEML have been
demerged from BEML to BEML Land Assets Limited (BEML LAND ASSETS LTD). The properties
have already been transferred in the Books from BEML to BEML LAND ASSETS LTD. However,
transfer of title of property is under process. The title transfer of the Bhopal property and Delhi
Property in favour of BLAL was completed on 21/03/2025 and on 08/04/2025 respectively.

BEML Limited has taken in-principle approval for utilizing the BEML LAND ASSETS LTD properties
by BEML in its 394th Board Meeting held on 23rd March 2023 which was approved by 17th
Board Meeting of BEML Land Assets Ltd. Presently, the above said properties are maintained
by BEML Ltd. It was proposed to continue utilization of the above properties by BEML Ltd
instead of keeping the properties vacant. The 'day to day expenses' viz., repairs and
maintenance, security charges, electricity, water charges etc. is borne by BEML Ltd. During the
tenure of usage, BEML will pay the property tax on behalf of BEML LAND ASSETS LTD and
account the same as a loan to BEML LAND ASSETS LTD.

6.Status of transfer of title of properties to BEML LAND ASSETS LTD from BEML Ltd

The transfer of title from BEML Ltd to BEML Land Assets Ltd is under progress. As per amended
Indian Stamp Act (Section 8G). Stamp duty charges are exempted. All State Governments have
granted exemption from stamp duty. However, Karnataka has granted 50% Stamp duty
exemption which is once again taken up with Government of Karnataka for 100% Stamp duty
exemption.

7.Land registration:

It has been reported that out of Land Parcels 401.356 acres at Mysuru as per schedule 1 of the
Scheme of arrangement identified for Demerger, the unused portion of the Township has been
taken back by KIADB and 302.284 acres have been transferred to BLAL. Further registration of
property with respect to Bhopal and Delhi is completed as on 21.3.2025 and 8.4.2025
respectively. Further other properties registration is under progress.

Company has not commenced its operations so Reporting on Financial risk management,
capital management & CSR are not applicable.

Information Other than the Standalone Ind AS 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 Board's Report including
Annexures to Board's Report, Management Discussion and Analysis, Business Responsibility
Report, Corporate Governance and Shareholder's Information, but does not include the
standalone Ind AS financial statements and our auditor's report thereon.

Our opinion on the standalone Ind AS 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 Ind AS financial statements, our responsibility
is to read the other information and, in doing so, consider whether the other information is
materially inconsistent with the standalone Ind AS financial statements or our knowledge
obtained during the course of our audit or otherwise appears to be materially misstated. If,
based on the work we have performed, we conclude that there is a material misstatement of
this other information, we are required to report that fact.

Responsibilities of Management and Those Charged with Governance for the Standalone Ind
AS 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 standalone Ind AS
financial statements that give a true and fair view of the financial position, financial
performance, changes in equity and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the Indian Accounting Standards
(Ind AS) specified under Section 133 of the Act, read with Companies (Indian Accounting
Standards) Rules, 2015 (as amended). This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding 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 Ind

AS 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 Ind AS financial statements the Board of Directors is responsible
for assessing the Company's ability to continue as a going concern, disclosure, as applicable,
matters relating to going concern and using the going concern basis of accounting unless the
Board of Directors either intends to liquidate the company or cease operations or has no realistic
alternative but to do so.

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

Auditor's Responsibilities for the Audit of the Standalone Ind AS Financial Statements Our
objectives are to obtain reasonable assurance about whether the standalone Ind AS 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
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 Ind AS
financial statements.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2020 ("the Order") issued by the
Central Government in terms of Section 143(11) of the Act, we give in "Annexure A" a
statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by Section143(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.

c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive
Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this
Report are in agreement with the books of account.

d) 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;

e) As per notification No.GSR 463(F) dated 5th June 2015 issued by MCA, Government of
India, provisions of section 164(2) of the Companies Act, 2013 relating to disqualification
of directors are applicable to the Company, being a Government Company.

f) 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
Reporting "Annexure B". Our report expresses an unmodified opinion on the adequacy
and operating effectiveness of the Company's internal financial controls over financial
reporting.

g) 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 following pending litigations with respect to the assets transferred
from BEML as confirmed by the Legal Team:

Impact on financial position- we do not have legal opinion to assess the impact on
financial position.

ii. The Company did not have any long-term contracts including derivative contracts for which
there were any materials for useable 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, no funds
(which are material either individually or in the aggregate) 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 (the
"Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the
Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in
any manner whatsoever by or on behalf of the Company (the "Ultimate Beneficiaries of funds
advanced, loaned or investment") or provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries of funds advanced, loaned or invested.

(b) The Management has represented, that, to the best of its knowledge and belief, no funds
(which are material either individually or in the aggregate) have been received by the Company
from any person(s) or entity (ies), including foreign entities (the "Funding Parties"), with the
understanding, whether recorded in writing or otherwise, that the Company shall, 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.

(c) Based on the audit procedures that has been considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that there
presentations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above,
contain any material misstatement.

v. The Company has not proposed, declared or paid any interim or final dividend during the
year.

For N.Tatia & Associates

Chartered Accountants

Firm Registration Number: 011067S

Sd/-

Nidhi Tatia

Partner

Membership No.: FCA 061355

Place: BENGALURU

UDIN No-25061355BMIXQP4810

Date: 30-04-2025
Place- Bengaluru