We have audited the accompanying Standalone Financial
Statements of DREDGING CORPORATION OF INDIA LIMITED

(hereinafter referred to as the "Company") which comprise the
balance sheet as at 31st March 2025, the statement of Profit
and Loss, including Other comprehensive income, statement
of changes in equity and the statement of cash flows for the
year then ended, and notes to the Financial Statements and
including a summary of material accounting policies (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 accompanying 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 31st March 2025, of its loss, other
comprehensive income, Statement of changes in equity and
its Statement of 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 of India ("ICAI") 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 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 notes in the Standalone
Financial Statements:

A. Note No. 1 relating to management's assessment that no
impairment of Property, Plant, and Equipment is required
as their recoverable value exceeds the carrying amount
as at the reporting date.

B. Note No. 29(11) relating to outstanding trade receivables
and payables which are subject to confirmation and
reconciliation.

C. Note No. 29(12) relating to restatement of comparative
figures due to prior period items adjusted in
the current 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 significant in our audit of the
financial statements of the current period. These matters
were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon. We
do not provide a separate opinion on these matters. We have
identified no key audit matters to communicate in our report.

Information Other than the 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 Management Discussion and Analysis,
Board's Report including Annexures to Board's Report,
Business Responsibility Report, Corporate Governance and
Shareholder's Information, but the same is expected to be
made available to us after the date of our 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
during the course of our audit or otherwise appears to be
materially misstated.

If, based on the work we have performed on the other
information that we obtained prior to the date of this auditor's
report, 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.

Responsibility of Management for 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,
Statement of changes in equity and Statement of cash flows
of the Company in accordance with the accounting principles
generally accepted in India, including the 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 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, Board of
Directors 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 Board of Directors either intends
to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.

The Board of Directors is 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 this 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
sec 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 the Board of Directors.

• Conclude on the appropriateness of the Board of
Directors' 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 ability of the
Company 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 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 Standalone Financial Statements of the
Company to express an opinion on the Standalone
Financial Statements.

Materiality is the magnitude of misstatements in the 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 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.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order,
2020 ("the Order"), issued by the 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 Balance Sheet, the Statement of Profit and
Loss, the Statement of Changes in Equity and the
Statement of Cash Flows 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 Rule 7 of the Companies
(Accounts) Rules, 2014.

e. In our opinion, our observations or comments on
financial transactions or matters does not have
material effect on the functioning of the company.

f. 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 from being appointed as a
Director in terms of Section 164(2) of the Act.

g. No qualification, reservation or adverse remark
relating to the maintenance of accounts and other
matters connected therewith.

h. With respect to the adequacy of the internal
financial controls of the Company and the operating
effectiveness of such controls, refer to our separate
Report in "Annexure B". Our report expresses a
qualified opinion on the adequacy and operating
effectiveness of the Company's internal financial
controls over financial reporting.

i. 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, as
amended, in our opinion, 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.

j. 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 IND AS Standalone Financial Statements -
Refer Note 29(1) to the Financial Statements;

ii) The Company did not have any long¬
term contracts including derivative
contracts for which there were any material
foreseeable losses.

iii) There has been no delay in transferring
amounts, required to be transferred, to the
Investor Education and Protection Fund by the
Company- refer to Note no. 6 to the standalone
financial statements.

iv) a) The Management has represented that,

to the best of its knowledge and belief,
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 or entity, including
foreign entity ("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, no funds (which are material
either individually or in the aggregate)
have been received by the Company
from any person or entity, including
foreign entity ("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, nothing
has come to our notice that has caused
us to believe that the representations
under sub-clause (i) and (ii) of Rule 11(e),
as provided under (a) and (b) above,
contain any material misstatement.

d) Based on our examination which included
test checks, the Company has used an
accounting software for maintaining
its books of a ccount which has a
feature of recording audit trail (edit log)
facility except that the audit trail was
not enabled at the database level for
accounting software to log any direct
data changes. For accounting software
for which audit trail feature is enabled,
the audit trail facility has been operating
throughout the year for all relevant
transactions recorded in the software
and we did not come across any instance

of audit trail feature being tampered with
during the course of our audit. The Audit
trail has been preserved as per statutory
requirements for record retention.

v) The Company has not declared any dividend
hence reporting on compliance of section 123
of the Act is not applicable.

3. As required by the Sec 143(5) of Companies Act, 2013,
we give in "Annexure C" a statement on the matters
specified by the Comptroller and Auditor General of India
for the Company.

For Grandhy &Co.,

Chartered Accountants

Firm Registration Number: 001007S

CA. Naresh Chandra Gelli

Partner

Membership No: 201754 Place: Visakhapatnam

UDIN: 25201754BMHWNH8166 Date: 20.05.2025