We have audited the accompanying Standalone
Financial Statements of COROMANDEL
ENGINEERING COMPANY LIMITED ("the
Company"), which comprises the Balance Sheet
as at 31^st March 2025, 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 and a
summary of significant accounting policies and
other explanatory information.

In our opinion and to the best of our information
and according to the explanations given to us, the
aforesaid Standalone 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 of the
Company as at 31^st March 2025, the loss and 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 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
Companies Act, 2013 and the Rules there under, 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.

Emphasis of Matter

We draw attention to the outstanding statutory dues
to Government authorities. Delays were observed
in payment of Goods and Service Tax amounting
to '1,08,93,788 including interest thereon and in
payment of Tax Deducted at Source amounting to
'54,64,310, both of which were subsequently paid.
The amount of ' 3,70,277 towards Employees'
Provident Fund contributions including interest
remains unremitted by the company. Our opinion
is not modified in this regard.

MSME dues including interest amounting to
' 7,26,40,633 remain unpaid beyond the due dates.
Our opinion is not modified in this regard.

We draw attention to the outstanding long-term
loan from IDFC First Bank. During FY 2024-25,
the loan repayments were not made as per the
scheduled due dates and amounts specified in the
repayment schedule and paid subsequently. Our
opinion is not modified in this regard.

We draw attention to the revaluation of Plant &
Machinery carried out during the quarter ended
31.03.2025, resulting in an increase of '3,17,09,228
in the carrying value of assets and corresponding
impact on Other Equity. Our opinion is not modified
in this regard.

Due to the voluminous nature of transactions
undertaken by the entity, we have not conducted
comprehensive verification of the Goods and
Services Tax (GST) and Input Tax Credit (ITC) claims.
However, based on our review of the internal audit
report and related records, we noted instances
of mismatched credit, including cases where ITC
pertaining to the State of Tamil Nadu was claimed
under the GST registration of the State of Odisha.
Our opinion is not modified in this regard.

Key Audit Matters

Key audit matters are those matters that, in our
professional judgement, were of most significance
in our audit of the Standalone Financial Statements
of the current period. These matters were

addressed in the context of our audit of the Standalone 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 thematters

described helow to he the key audit matters to he communicated in our report

Information Other than the Standalone Financial
Statements and Auditors' Report Thereon

The Company's management and Board of
Directors are responsible for the other information.
The other information comprises the information
included in the Company's Annual Report but does
not include the financial statements and our report
thereon.

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 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.

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. We have nothing to report in this regard.

Management's Responsibility 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, total

comprehensive income, 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
the rule 3 of the 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 of the
assets of the Company and for preventing and
detecting frauds and other irregularities; selection
and application of appropriate implementation
and maintenance of accounting policies; making
judgements 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
Statement 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
Comny'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.

Those Board of Directors are 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 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 financial statements.

As part of an audit in accordance with SAs, we
exercise professional judgement 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 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 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 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.

Report on Other Legal and Regulatory
Requirements

1. As required by the Companies (Auditor's
Report) Order, 2016 ("the Order"), issued by
the Central Government of India in terms of
sub-section (11) of section 143 of the Act(here
in after referred to as the "Order") and on
the basis of such checks of the books and
records of the Company as we considered
appropriate and according to the information
and explanations given to us, 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 Companies
Act,2013, 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), Statement of Changes in the
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
IND AS specified 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 31^st
March, 2025 and taken on record by the
Board of Directors, none of the directors
is disqualified as on 31^st March, 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 the requirements of
section197(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.

(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 as referred to in Note
No. 30 to the Standalone Financial
Statements;

ii. The Company did not have any long¬

term contracts including derivative
contracts as at 31^st March, 2025;

iii. There were no amounts required to be

transferred to the Investor Education
and Protection Fund by the Company
for the year ended 31^st March, 2025.

(i) 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(is), 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.

(j) 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

(k) Based on the audit procedures adopted
by us, nothing has come to our notice
that has caused us to believe that the
representations made by the management

under sub clause (i) and (ii) above, contain
any material misstatement.

(l) The Company has not declared any Dividend
during the year

(m) Based on our examination which included
test checks, the Company, in respect of
financial year commencing on April 01,
2023, has used an accounting software
for maintaining its books of account which
has a feature of recording audit trail (edit
log) facility and the same has operated
throughout the year for all relevant
transactions recorded in the software.
Further, during the course of our audit, we
did not come across any instance of audit
trail feature being tampered with reporting
under Rule 11(g) of the Companies (Audit
and Auditors) Rule, 2014 on preservation
of audit trail as per statutory requirements
for record retention is applicable for the
Financial year ended March 31, 2025.
(Refer Note.53 to the Standalone Financial
Statements).

For CNGSN & ASSOCIATES LLP

Chartered Accountants
F.R.No.004915S

Sonali Khatod M

Place: Chennai Partner

Date: 20.05.2025 Membership No 254938

UDIN : 25254938BMOYTD3191