We have audited the standalone Financial Statements of Kirloskar
Ferrous Industries Limited (“the Company”), which comprise the
Balance Sheet as at March 31, 2025, and 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 a summary
of Material 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 accounting principles generally
accepted in India, of the standalone state of affairs of the Company
as at March 31, 2025, and its standalone profit (including Other
Comprehensive Income), standalone changes in equity and its
standalone 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 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 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
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.

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 for financial year ended March 31, 2025.
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. For each matters below, our description of how our audit
addressed the matter provided in that context.

We have determined the matter described below to be the key
audit matter to be communicated in our report.

Other Information

The Company's Board of Directors is responsible for the other
information. The other information comprises the information
included in the Management Discussion and Analysis, Corporate
Governance and Board of Director's report, but does not include
the standalone Financial Statements and our auditor's report
thereon. This information 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 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 information as mentioned above, if we conclude
that there is a material misstatement therein, we will communicate
the matter to those charged with governance.

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 Act with respect to the preparation
of these standalone Financial Statements that give a true and fair
view of the standalone financial position, standalone financial
performance including other comprehensive income, standalone

changes in equity and standalone 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 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 standalone 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 Financial Statements, the 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.

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
standalone 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 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 control relevant to the
audit in order to design audit procedures that are appropriate
in the circumstances. Under section 143(3)0) of the Act 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.

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.

Other Matter

The standalone financial statements of the company for the
year ended March 31, 2024 were audited by one of the Joint
Statutory Auditors who expressed an unmodified opinion on those
standalone financial statements vide report dated August 09, 2024.
Accordingly, other Joint Statutory Auditors do not express any
opinion on the figures reported for the year ended March 31, 2024.

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 except
for the matters stated in the paragraph 2(i)(vi) below on
reporting under Rule 11(g).

c) The Balance Sheet, the Statement of Profit and Loss
including other comprehensive income, the Statement
of Changes in Equity and the Statement of Cash Flow
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 Indian Accounting
Standards specified under Section 133 of the Act, read
with the Companies (Indian Accounting Standards)
Rules, 2015, as amended.

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 reference to the maintenance of accounts and
other matters connected therewith, refer to our
comment in Paragraph 2(b) above and refer to our
comment in paragraph 2(i)(vi) below, on reporting
under rule 11 (g).

g) With respect to the adequacy of the internal financial
controls with reference to financial reporting of the
company and the operating effectiveness of such
controls, refer to our separate Report in “Annexure B”.

h) As required by section 197 (16) of the Act; in our opinion
and according to information and explanation provided
to us, the remuneration paid by the company to its
directors is in accordance with the provisions of section
197 of the Act and remuneration paid to directors is not
in excess of the limit laid down under this section.

i) 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 No. 49 to the
Financial Statements.

(ii) The Company did not have any material
foreseeable losses on long-term contracts
including derivative contracts.

(iii) There is one instance of delay in transferring
amounts, required to be transferred, to the Investor
Education and Protection Fund by the Company
amounting to f 0.65 crores during the year.

(iv) (a) The management has represented to us

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.

(b) The management has represented to
us, 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.

(c) Based on the information and explanation
given to us and audit procedures performed
as considered reasonable and appropriate
in the circumstances, nothing has come
to our notice that has caused us to believe
that the representations made by the
management and as mentioned under sub¬
clause (iv)(a) and (iv)(b) above contain any
material misstatement.

(v) The dividend declared and paid during the year
by the Company is in compliance with Section
123 of the Act.

(vi) Based on our examination which included
test checks, the company 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 and the audit trail has been
preserved by the Company as per the statutory
requirements for record retention.

For For

KIRTANE & PANDIT LLP P G BHAGWAT LLP

Chartered Accountants Chartered Accountants

Firm Registration No.105215W/W100057 Firm Registration No. 101118W/ W100682

Parag Pansare Nachiket Deo

Partner Partner

Membership No: 117309 Membership No: 117695

Date: May 09, 2025 Date: May 09, 2025

UDIN: 25117309BMJDHP5641 UDIN: 25117695BMJNLT6192

Pune Pune