We have audited the accompanying standalone ind
AS financial statements of HBL Engineering Limited
(formerly known as HBL Power Systems Limited)
Hyderabad, ("the Company") which comprise the
Balance Sheet as at March 31, 2025, the Statement
of Profit and Loss (including Other Comprehensive
income), Statement of Changes in Equity and
Statement of Cash Flows for the year then ended
and notes to the financial statements including
material accounting policies and other explanatory
information. (hereinafter referred to as "the financial
statements").

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 req uired and give a true and fair
view in conformity with the accounting principles
generally accepted in india, of the state of affairs of
the Company as at March 31,2025 and its profit, total
comprehensive income, changes in equity and its
cash flows for the year ended on that date.

Basis for opinion

We conducted our audit in accordance with the
Standards on Auditing (SAs) specified under
section 143 (10) of the Companies Act, 2013. Our
responsibilities under those Standards are further
described in the Auditor's Responsibilities for the
Audit of the 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 financial statements under the provisions of the
Companies Act, 2013 and the Rules 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 opinion on the standalone financial
statements.

Key audit matters

Key audit matters are those matters that in our
professional judgment were of most significant in
our audit of the financial statements of the current
period. These matters were addressed in the context
of our audit of the 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 that there are no key audit matters to
communicate in our report.

Information other than the standalone financial
statements and auditor's report thereon

The Company's Board of Directors is responsible
for the other information. The other information
comprises the information included in Annual Report
but does not include the financial statements and
our auditor's report thereon. The annual report is
expected to be made available to us after the date of
this auditor's report.

Our opinion on the standalone 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 in the audit, or otherwise appears to be
materially misstated.

When we read the annual report, if we conclude
that there is a material misstatement therein, we
are required to communicate the matter to those
charged with governance and take necessary actions,
as applicable under the relevant laws and regulations.

Responsibilities of 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 standalone 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 Accounting Standards (Ind AS} specified under
Section 133 of the Act.

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 financial statements that
give a true and fair view and are free from material
misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of
Directors 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
the Board of Directors either intends to liquidate the
Company or to cease operations, or has no realistic
alternative but to do so.

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

Auditor's responsibilities for the audit of the
standalone financial statements

Our objectives are to obtain reasonable assurance
about whether the 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 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 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 control
relevant to the audit in order to design
audit procedures that are appropriate in the
circumstances. Under section 143(3}(i} of the

Companies Act, 2013, 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 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 financial statements, including the
disclosures, and whether the 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)
evaluating the effect of any identified misstatements
in the standalone 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 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.

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 of India in terms of sub-section (11)
of section 143 of the Act, we give in the "Annexure
A" a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent
applicable.

(2) As required by Section 143 (3) of the Act, 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, Statement of Changes in Equity
and the Cash Flow Statement dealt with by
this Report are in agreement with the books
of account.

(d) in our opinion, the aforesaid standalone
financial statements comply with the
Accounting Standards prescribed under
Section 133 of the Act, read with rule 7 of the
Companies (Accounts) Rules, 2014.

(e) On the basis of the written representations
received from the Directors as on March
31, 2025, taken on record by the Board of
Directors, none of the Directors is disqualified
as on March 31, 2025 from being appointed
as a Director in terms of Section 164(2) of
the Act.

(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 Report
in "Annexure B".

(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, 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 financial statements
- Refer Note 42.2 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 has been no delay in transferring
amounts, required to be transferred, to
the investor Education and Protection
Fund by the company.

(iv) (a) The respective Managements of

the Company and its subsidiaries
which are companies incorporated
in india, whose financial statements
have been audited under the Act,

have represented to us that, to the
best of their knowledge and belief,
other than as disclosed in the notes
to accounts, 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 or any
of such subsidiaries to or in any
other person or entity, including
foreign entity ("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 or any
of such subsidiaries ("Ultimate
Beneficiaries") or provide any
guarantee, security or the like on
behalf of the Ultimate Beneficiaries.

(b) The respective Managements of
the Company and its subsidiaries
which are companies incorporated
in india, whose financial statements
have been audited under the Act,
have represented to us that, to the
best of their knowledge and belief,
no funds (which are material either
individually or in the aggregate)
have been received by the Company
or any of such subsidiaries from any
person or entity, including foreign
entity ("Funding Parties"), with the
understanding, whether recorded
in writing or otherwise, that the
Company or any of such subsidiaries
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 have been considered
reasonable and appropriate in the
circumstances performed by us on
the Company and its subsidiaries
which are companies incorporated
in India whose financial statements
have been audited under the Act,
nothing has come to our notice that
has caused us to believe that the
representations under sub-clause
(i) and (ii) of Rule 11(e), as provided
under (a) and (b) above, contain any
material misstatement,

(v) (a) The dividend declared and paid by
the Company during the year is in
accordance with Section 123 of the
Act, as applicable,

(b) As stated in Note 42,3 to the
standalone financial statements, the
Board of Directors of the Company
have proposed dividend for the year
which is subject to the approval of
the members at the ensuing Annual
General Meeting, The amount of
dividend proposed is in accordance

with section 123 of the Act, as
applicable,

(vi) Based on our examination, which
included test checks, we observed that
the company has used accounting
software for maintaining its books of
account which has a feature of recording
an audit trail (edit log) facility and the
same has operated throughout the year
for all relevant transactions recorded in
the software except that the process of
binding the MAC address for the user's
login is currently pending, Further,
during the course of our audit, we did
not come across any instances where
the audit trail feature was tampered with
and the audit trail has been preserved
by the Company as per the statutory
requirements for record retention,

(h) With respect to the other matters to be
included in the Auditor's Report in accordance
with the requirements of section 197(16) of
the Act, as amended, in our opinion and to the
best of our information and according to the
explanations given to us, the remuneration
paid by the Company to its directors during
the year is in accordance with the provisions
of section 197 of the Act,

For L N R Associates

Chartered Accountants
FRN 05381S

Raghuram Vedula Place: Hyderabad

Partner Date: May 24, 2025

M,No, 242883

UDIN: 25242883BMIRNE3619