We have audited the accompanying standalone financial
statements of Mishra Dhatu Nigam Limited (“the Company”),
which comprise 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 notes to the financial
statements, including a summary of significant accounting
policies and other explanatory information (hereinafter referred
to as the “standalone financial statements”).

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, and its profit, total comprehensive income, changes
of 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 (“SA”s) specified
under section 143 (10) of the Act. 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
(“ICAI”) 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 ICAI’s code of ethics. We believe that
the audit evidence obtained is sufficient and appropriate to provide
a basis for our audit opinion on the standalone financial statements.

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 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. The key audit matters that we have identified in
the current year are as follows:

Emphasis of Matter

We draw attention to the following matters in the notes to the
standalone financial statements:

1. Note No. 9 (Other Non-Current Assets), Note No.11
(Current Financial Assets Trade - Receivables), Note
No. 14 (Current Financial Assets - Others), Note No. 15
(Other Current Assets), Note No. 22 (Other Non-current
Liabilities), Note No. 24 (Current Financial Liabilities -
Trade Payables), Note No. 25 (Current Financial Liabilities
- Others) and Note No. 26 (Other Current Liabilities) to the
standalone financial statements are subject to receipt of
confirmation of balances/reconciliation.

Our opinion on the standalone financial statements is not
modified in respect of the above matters.

Information other than the standalone financial
statements and auditors’ report thereon

The Company’s board of directors are responsible for the preparation
of the other information. The other information comprises the
information included in the Directors’ Report including Annual
Report on CSR Activities, Management Discussion & Analysis
Report, Business Responsibility Report, Report on Conservation
of Energy, Technology Absorption and Foreign Exchange Earnings
and outgo, Report on Corporate Governance annexed thereto,
Shareholder Information and other information contained in Annual
Report but does not include the standalone financial statements
and our report thereon. These reports are 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 during the course of our audit or otherwise appears to
be materially misstated.

When we read the other information, if we conclude that there is
material misstatement therein, we are required to communicate
the matter to those charged with governance.

Management’s responsibility for the standalone
financial statements

The Company’s board of directors are responsible for the
matters stated in section 134 (5) of 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
including cash flows, other comprehensive income, changes
in equity of the Company in accordance with the accounting
principles generally accepted in India, including the accounting
standards specified under section 133 of the Act read with
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 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 statement
that give a true and fair view and are free from material
misstatement, whether due to fraud or error, which have been
used for the purpose of preparation of the standalone financial
statements by the Directors of the Company, as aforesaid.

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 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 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 Standards on Auditing,
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 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 based on our audit.

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.

Obtain sufficient appropriate audit evidence regarding
the financial information of the business activities of
the Company to express an opinion on the standalone
financial statements. We are responsible for the direction,
supervision and performance of the audit of the standalone
financial statements of such entity included in.

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 of the
Company 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 of the Company
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 of the Company, 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
Companies Act, 2013, 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 standalone balance sheet, the standalone
statement of profit and loss including other
comprehensive income, standalone statement of
changes in equity and the standalone of cash flows
dealt with by this report are in agreement with the
books of account maintained for the purpose of
preparation of the standalone financial statements;

d) In our opinion, the aforesaid standalone financial
statements comply with the IND AS specified under
section 133 of the Act, read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended;

e) As per Section 164(2) of the Act regarding
disqualification of directors is not applicable to the
Company by virtue of Notification No. G.S.R. No.463
(E) dated 05.06.2015, Government companies are
exempt from the applicability of the provisions of
section 164(2) of the Act. Hence no comments offered;

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 C”. 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, in
our opinion and to the best of our information and
according to the explanations given to us;

a. The Company has disclosed the impact of
pending litigations on its financial position in
its financial statements - Refer Note 41 to the
financial statements;

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

c. There were no amounts which were required
to be transferred to the Investor Education and
Protection Fund by the Company;

d. (i) The management has represented that,

to the best of its knowledge and belief,
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;

(ii) The management has represented, that,
to the best of its knowledge and belief, 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

(iii) Based on such audit procedures as were
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 (i)
and (ii) contain any material mis-statement.

h) Based on our examination, the company has used
accounting software for maintaining its books of
account which has a feature of recording audit trail
(edit log) and the same has operated throughout the
year. Further, during the course of our audit we did
not come across any instance of audit trail feature
being tampered with.

3. As required by Section 143(5) of the Act, we give in
Annexure “D”, a statement on the matters contained in
directions issued by the Comptroller & Auditor General
of India, the action taken thereon and its impact on the
accounts and standalone financial statements of the
company in terms of aforesaid section;

For Anjaneyulu & Co
Chartered Accountants

FRN - 000180S

K. Narayna Murthy

Partner

Date: 28^th May, 2025 Mem No. 026012

Place: Hyderabad UDIN: 25026012BMICME3134