We have audited the accompanying Standalone Financial
Statements of Cochin Shipyard Limited (referred to as the
"Company") which comprises the Balance Sheet as at March
31,2025, the Statement of Profit and Loss (including other
comprehensive income), Statement of Cash Flows and Statement
of Changes in Equity for the year then ended, and notes to the
standalone financial statements, including material accounting
policy information 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, 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 Companies Act 2013 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 March 31,2025, the Profit
including other comprehensive income, changes in equity and
its cashflows 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 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 on the financial statements.

1. Non-Factoring of Liquidated Damages for 2 Nos 1200
Passenger Ships:

Attention is drawn to Note No. 32.5 to the Standalone Financial
Statements, on shipbuilding contract for construction of 2
Nos 1200 Passenger Ships. The contractual delivery date
(as extended) for both the ships are already expired. At the
request of the customer for reallocation of the ships for other
prospective buyers, the delivery of ship has been abated
with minor progress. The Company has provided for the
liquidated damages for the delay upto 29th April,2023 and
30th Oct,2023 in respect of these ships. Since the Company
has a valid contract, it has not recognized further liquidated
damages in the financials beyond the dates mentioned above.

2. Research and Development Project-Hydrogen Fuel
Cell Electric Vessel & Autonomous Surface Vessel:

Attention is invited to Note No.40 (c) & (d) to the Standalone
Financial Statements, wherein, Ministry of Ports, Shipping and
Waterways (MoPSW) has sanctioned fund of H1,312.50 lakhs
& H 2,000.00 lakhs for Design, Development, Construction
and Demonstration of Fully Indigenous Hydrogen Fuel Cell
Electric Vessel & Autonomous Surface Vessel projects under
R&D (Shipping) Scheme.

As per the terms & conditions of the sanction to respective
projects, company is nominated as 'Implementing Agency'
for the development of said pilot projects and all the assets
acquired from the fund shall be the property of Govt. of India.

Further, the company is bound to comply with provisions
of General Financial Rules (GFR), 2017 as amended from
time to time, while spending the funds released.

As per the GFR 2017, in case of ongoing projects, the
company should not treat as its own assets in the books of
accounts but should disclose about its holding and using such
assets in the Notes to the Financial Statements. The decision
of return, sale or retain by the company will be decided by
the Ministry on completion of respective projects.

As on 31.03.2025, the Hydrogen Fuel Cell Electric Vessel
project is under demonstration phase & Autonomous
Surface Vessel project is under Development/
Construction Phase.

Accordingly, the company has charged of the balance
amount of H966.34 lakhs, incurred/spent by the company to
the Statement of Profit and Loss Account during the year.

Our opinion is not modified in respect of these matters.

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 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.

1. Recognition of Revenue- Ship Building and Ship Repair
activities:

(Refer Note No.3.10(a),32 and 43 to the Standalone
Financial Statements)

The Company enters into shipbuilding and ship repair
contracts with customers, where revenue is recognised
over time in accordance with the Output Method.

There are significant accounting judgements involved
in estimating contract revenue to be recognised on
shipbuilding and ship repair contracts with customers,
including determination of physical progress of completion
as on the reporting date.

The physical progress of completion is ascertained as per
the in-house procedures developed by the management.
The procedure and the assumptions therein are based
on certain judgements made by the management
based on inputs from the technical departments of the
company. Further, the ascertainment of the actual physical
completion of each sub-activity on reporting date also
involves management estimation.

Significant judgements are involved in determining the
expected losses, when such losses become probable
based on the expected total contract cost. Cost
contingencies are included in these estimates to take
into account specific risks of uncertainties or disputed
claims against the Company, arising within each contract.
These contingencies are reviewed by the Management

on a regular basis throughout the life of the contract and
adjusted where appropriate. The revenue on contracts may
also include variable consideration (variations and claims).
Variable consideration is recognised when the recovery of
such consideration is highly probable.

Due to the nature of the contracts, revenue recognition
involves usage of percentage of completion method (ie.,
physical progress of completion) which is determined
by survey of work performed , which involves technical
expertise, significant judgments, identification of contractual
obligations and the Company's rights to receive payments
for performance completed till date, changes in scope and
consequential revised contract price and recognition of the
liability for loss making contracts/onerous obligations.

Auditing management's measurement of revenue
recognised over time involves significant judgements and
estimations made in measuring the physical progress of
completion, we presumed there are inherent audit risks in
the recognition of revenue and therefore determined this
to be a key audit matter.

Our Audit approach and procedures included but were
not limited to:

• Obtained an understanding of the policies and
procedures that the company applies in recognising
revenue from contract with customers, using the
output method and the underlying assumptions and
estimates thereon.

• Evaluated the appropriateness of the Company's
revenue recognition policies, including those related
to variable considerations by comparing with the Ind
AS 115-Revenue from Contract with Customers.

• Tested the effectiveness of controls relating to
the evaluation of performance obligations and
identification of those that are distinct; estimation
of costs to complete each of the performance
obligations including the contingencies in respect
thereof, as work progresses and the impact thereon
as a consequence of change orders; the impact of
change orders on the transaction price of the related
contracts; and evaluation of the impact of variable
consideration on the transaction price.

• Selected of sample of contracts with customers and
performed the following procedures:

• Obtained and read contract documents for each
selection, change orders and other documents
that were part of the agreement/arrangement.

• Identified significant terms and deliverables in
the contract to assess management's conclusions
regarding the (i) identification of distinct
performance obligations; (ii) changes to costs to
complete as work progresses and as a consequence
of change orders; (iii) the impact of change orders
on the transaction price; and (iv) the evaluation of
the adjustment to the transaction price on account
of variable consideration.

• Compared costs incurred with Company's

estimates of costs incurred to date to identify
significant variations and evaluated whether
those variations have been considered

appropriately in estimating the remaining costs
to complete the contract.

• Tested the estimate for consistency with the
status of delivery of milestones and customer
acceptance to identify possible delays in
achieving milestones, which require changes
in estimated costs or efforts to complete the
remaining performance obligation.

• Performed analytical audit procedures for

reasonableness of revenues disclosed by type and
nature of service.

• Substantial reliance was placed on the technical and
activity-based assessment made by the management
in determination of percentage of physical progress
completion and assessed the reasonableness of
management's assumptions and estimates.

• Assessed appropriateness of the relevant disclosures
made by the company in accordance with Ind AS 115.

We concluded that based on the procedures performed
above, we did not find any material exceptions with
regards to compliance of Ind AS 115 and timing of
revenue recognition.

2. Capitalisation of Projects as Property, Plant and
Equipment (PPE)

(Refer Note No.3.1,3.5 & 4(m) to the Standalone
Financial Statements)

The Company has substantial ongoing infrastructure
and development projects which, upon completion
and readiness for intended use, are transferred from
Capital Work-in-Progress (CWIP) to Property, Plant and
Equipment (PPE).

During the year ended 31st March,2025, the Company
has capitalised projects amounting to H2,11,283.18 lakhs
on account of commercialisation/ operationalisation of
International Ship Repair Facility (ISRF) & New Dry Dock.

The process of capitalisation requires management to
exercise significant judgment in determining the date
when an asset is ready for its intended use, assessing
whether all directly attributable costs are appropriately
included, categorising the assets under appropriate
classes of PPE, determining the useful life and residual
value based on technical evaluation.

Given the magnitude of the capitalised amounts and
the management judgments involved, we considered
the capitalisation of projects from CWIP to PPE as a
Key Audit Matter.

Our audit procedures included, among others:

• Evaluated the Company's accounting policy for
capitalisation in line with Ind AS 16 - Property,
Plant and Equipment.

• Tested the design and implementation of key controls
over the capitalisation process.

• Reviewed the project completion certificates, internal

commissioning documents, and management

approvals to ascertain the readiness of assets
for intended use.

• Verified a sample of expenditures capitalised
to ensure they are directly attributable to the
construction or acquisition of the specific asset.

• Examined technical assessments by the engineering
team for the determination of useful life and residual
values of the assets.

• Assessed the categorisation of assets into
appropriate PPE classes.

• Reviewed subsequent costs to ensure they are not
incorrectly capitalised post commercialisation.

• Evaluated the appropriateness of disclosures in the
financial statements relating to capitalised projects.

Based on the above procedures, we found the
management's judgement relating to capitalisation to be
reasonable and the related disclosures to be adequate.

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 the Directors' Report and Management Discussion
and Analysis, but does not include the consolidated financial
statements, 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 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 during the course of our 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.

As on the date of this report, the other information was not
made available to us by the management. Accordingly, we are
unable to comment on this matter.

Responsibility of Management 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 including other comprehensive
income, cash flows and changes in equity of the Company in
accordance with the accounting principles generally accepted
in India, including the Indian Accounting Standards 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
implementation and maintenance of 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 misstatements, whether due to fraud or error.

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.

Those Board of Directors are also responsible for overseeing
the company's financial reporting process.

Auditor's Responsibility 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 misstatements, 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 scepticism
throughout the audit. We also:

a. Identify and assess the risks of material misstatements 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;

b. 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 company has
adequate internal financial controls system in place and
the operating effectiveness of such controls;

c. Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by management;

d. 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;

e. 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.

For the year ended 31st March,2025, the company has initiated
the obtaining of balance confirmations. We have received only
a few confirmations of balances from Trade receivables, Trade
Payables and Bank balances. Wherever confirmations not
received by us, we have performed alternative audit procedures
by verifying the contract documents, invoices raised and
communications made for follow up action etc.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory
Requirements:

1. As required under the directions and sub-directions issued
by the Comptroller and Auditor General of India in terms of
Sub-section (5) of Section 143 of the Companies Act 2013,
we are enclosing our report in "Annexure A”.

2. As required by the Companies (Auditor's Report) Order,
2020 ("the Order") as amended, 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 statement on the matters specified in paragraphs 3 and
4 of the Order, to the extent applicable our report thereon
is enclosed as "Annexure B”.

3. Non-Compliance of Composition of Board- Companies
Act,2013 & SEBI Listing Obligation and Disclosure
Requirements (LODR) Regulations, 2015:

During the year, all the 6 Non-Official (Independent)
Directors on the Board vacated their office, leading to non¬
existence all the committees of board as required.

As on the date, there were no Independent Directors on
the Board due to a casual vacancy. As a result, the Company
continues to be non-complaint with the constitution
of Audit Committee, Nomination and Remuneration
Committee, and other committees mandated as per the
provisions of the Companies Act, 2013 and SEBI (Listing
Obligations and Disclosure Requirements) Regulations,
2015, as amended from time to time.

It was informed that the Company being a CPSE, the power
to appoint the Directors vests with the Government of India
and appropriate requests for appointing sufficient number
of independent directors including a woman independent
director have been forwarded to the Government of India.

This Standalone Financial Statements for the year

ended 31st March,2025, were not reviewed by the Audit

Committee in accordance with the provisions of Sec.177

of the Companies Act,2013 and Regulation No.18(3) of the

SEBI (LODR) Regulations, 2015.

4. 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 and
proper adequate returns have been received from all
the regional offices of the company;

c. The Company's Balance Sheet, the Statement of
Profit and Loss (incl. Other Comprehensive income),
the Statement of Cash Flows and the Statement of
Changes in Equity dealt with by this report are in
agreement with the books of accounts;

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 thereon.

e. The provisions of Section 164(2) of the Act in respect
of disqualification of directors are not applicable
to the Company, being a Government Company in
terms of notification no. G.S.R.463 (E) dated 5th
June, 2015 issued by Ministry of Corporate Affairs,
Government of India;

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 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
Auditors' Report in accordance with the requirements
of section 197(16) of the Act, as amended:

The provisions of Section 197 read with Schedule V
of the Act, relating to managerial remuneration are
not applicable to the Company, being a Government
Company, in terms of Ministry of Corporate Affairs
Notification no. G.S.R. 463 (E) dated 5th June, 2015;

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, 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 Note
No.46 to the Standalone Financial Statements;

ii. The company has made provision, as required
under applicable law or accounting standards,
for material foreseeable losses, if any on long¬
term contracts including derivative contracts;

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

iv. a. The management has represented that,

to the best of it's 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(ies), including foreign entities
("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 ("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 it's 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,

• 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

c. Based on such audit procedures as
considered reasonable and appropriate
in these 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.

v. The dividend declared/paid by the Company
during the year is in compliance with section
123 of the Companies Act, 2013;

vi. Based on our examination carried out in
accordance with the Implementation Guidance
on Reporting on Audit Trail under Rule 11(g) of
the Companies (Audit and Auditors) Rules,2014

(Revised 2024 Edition) issued by the Institute of
Chartered Accountants of India, which included
test checks, except the instances mentioned
below, we report that the company has used
an accounting software ie.,SAP S/4HANA, for
maintaining its books of accounts, which has a
feature of security audit log and recording audit
trail (edit log) facility for all relevant transactions
recorded in the software:

a. The feature of recording audit trail (edit
log) facility were enabled for identified

For Anand and Ponnappan

Chartered Accountants
FRN000111S

C. Krishnan Menon

Place: Kochi Partner

Date: 15.05.2025 Membership No :074736

UDIN: 25074736BMIYNV9785