We have audited the accompanying Standalone Financial
Statements of MAZAGON DOCK SHIPBUILDERS LTD.

(“the Company”), which comprise the Standalone Balance
Sheet as at 31^st March, 2025, the Standalone Statement of
Profit and Loss Account (including Other Comprehensive
Income), the Standalone Statement of Changes in Equity and
the Standalone Statement of Cash Flow for the year then
ended, and notes to the Standalone Financial Statements,
including a summary of the significant accounting policies
and other explanatory information (hereinafter referred to as
“The Standalone Financial Statement”).

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 as amended (“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 profit
(including other comprehensive income), changes in equity
and it’s cash flow 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
(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 (“the ICAI”) 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 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 by us is sufficient and appropriate
to provide a basis for our audit opinion on the Standalone
Financial Statements.

Emphasis of Matter

We draw attention to the following matters in the notes to
the standalone Ind AS financial Statements;

1. Registration formalities and renewals of certain

Leasehold deed in the name of Company is under
execution.

(Refer Note 2 Point No. v)

2. Balance of advances to vendors and balances

outstanding in sundry creditors are subject to

confirmation and reconciliation.

(Refer Note 37 Point No. 1)

3. Balance due to/from Indian Navy (Debtor) is subject to
confirmation and reconciliation.

(Refer Note 37 Point No. 2)

4. Reversal of provision of Liquidated Damages (LD)
amounted to 7 13,650 Lakhs.

(Refer Note 58)

5. Recognition of a provision for expected loss on

onerous contracts amounted to 7 52,138 Lakhs in
accordance with Ind AS 115, Revenue from Contracts
with Customers, and Ind AS 37, Provisions, Contingent
Liabilities and Contingent Assets.

(Refer Note 61)

Our opinion is not modified in respect of these matters.

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

Information other than the Standalone Financial Statements
and Auditor’s Report thereon

The Company’s Board of Directors are responsible for the
other information. The other information comprises the
information included in the Director’s report and Management
discussion and analysis but does not include the Standalone
Financial Statements and our Auditor’s 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 responsibilities 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.

Responsibilities of Management and Board of Directors for
the Standalone Financial Statements

The Company’s Management and 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

The Management and Board of Directors are also responsible
for overseeing the Company’s financial reporting process.

Auditor’s Responsibility for the Audit of the Standalone
Financial Statement

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 financial controls
relevant to the audit in order to design audit procedures
that are appropriate in the circumstances. Under
Section 143(3)(i) of the Act, we are also responsible
for expressing our opinion on whether the Company
has adequate internal financial controls system with
reference to Standalone Financial Statements 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 and Board
of Directors.

• Conclude on the appropriateness of Management’s
and Board of Director’s use of the going concern basis
of accounting in preparation of Standalone Financial
Statement 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 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,
2020 (“the Order”) issued by the Central Government
of India in terms of Section 143(11) of the Act, we give
in “Annexure I” a statement on the matters specified
in Paragraph 3 and 4 of the Order to the extent as
applicable.

2. As required by the directions issued by the office of the

Comptroller & Auditor General of India under Section

143(5) of the Act, we give in ''Annexure 11”, a statement

on the matters referred to in those directions.

3. As required by Section 143(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 Standalone Balance Sheet, the Standalone
Statement of Profit and Loss (including Other
Comprehensive Income), the Standalone
Statement of Changes in Equity and the
Standalone 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 Ind AS
specified under Section 133 of the Act, read with
Companies (Indian Accounting Standards) Rules,
2015, as amended;

e) In view of exemption given vide notification
no. G.S.R 463(E) dated June 05, 2015 issued
by Ministry of Corporate Affairs, the provision
of section 164(2) of the Act, regarding
disqualification of the directors are not applicable
to the Government Company;

f) With respect to the adequacy of the internal
financial controls with reference to Standalone
Financial Statements of the Company and
operating effectiveness of such controls, refer
to our separate Report in “Annexure MI”. Our
report expresses an unmodified opinion on the
adequacy and operating effectiveness of the
company’s internal financial control over financial
reporting with reference to Standalone Financial
Statements;

g) 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, the
exemption has been given for the said section
vide notification no. G.S.R 463(E) dated June 05,
2015 issued by Ministry of Corporate Affairs;

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;
(Refer of Note No.36.2 to the Standalone
Financial Statements)

ii. The Company has made provision,
as required under the applicable law
or accounting standards, for material
foreseeable losses, if any, on long term
contracts including derivative contracts.
(Refer Note No 40 to the Standalone
Financial Statements)

iii. There are no amounts which are required to
be transferred to the Investors’ Education
and Protection Fund during the year ended
31^st March, 2025;

iv. a. The Management has represented that,

to the best of its knowledge and belief,
other than as disclosed in the Note No. 52
to the Standalone Financial Statements,
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 entity(ies)
(“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, that,
to the best of its knowledge and belief,
as disclosed in the Note No. 52 to the
accounts, 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
entity(ies) (“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 audit procedures that have
been considered reasonable and appropriate
in the circumstances, and according to the
information and explanations provided to us
by the Management in this regard nothing
has come to our notice that has caused us
to believe that the representations under
sub-clause (iv) (a) and (iv) (b) contain any
material misstatement.

v. The dividend declared or 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
accounting software for maintaining

its books of accounts for the financial
year ended March 31^st, 2025, which has
the feature of recording audit trail (Edit
Log) facility and the same has operated
throughout the year for all the 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. Additionally,
the audit trail has been preserved by the
Company as per the statutory requirements
for record retention.

For C.R.Sagdeo & Co,

Chartered Accountants

F.R.N: 108959W

Sd/-

CA. Sachin V. Luthra

Partner

Date: 29^th May, 2025 Membership No.:109127

Dace: Mumbai UDIN: 25109127BMJLUW3094