We have audited the Standalone Financial Statements of
MOIL LIMITED ("the Company”), which comprises the
Balance Sheet as at 31st March 2026, and the statement of
the Profit and Loss (including Other Comprehensive Income),
the statement of Changes in Equity and the statement of
Cash Flow for the year then ended, and notes to the Financial
Statements, including a summary of significant accounting
policies and other explanatory information (herein after
referred to as "Standalone Financial Statements”).
In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
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 March 31, 2026, the
profit and total comprehensive income, the changes in
equity and its cash flows for the year ended on that date.
Basis for opinion
We conducted our audit of standalone Financial
Statements 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 (ICAI) 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 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 we have obtained is sufficient
and appropriate to provide a basis for our opinion on the
financial statements.
Emphasis of Matter -
Without qualifying our opinion, we draw attention to the
following matters:
1. Point No. 1.2.15 of accounting policy & Note No. 2.27
for recognition of revenue. The revenue includes
Royalty, District Mineral Fund (DMF) and National
Minerals Exploration Trust contribution (NMET)
collected on behalf of third party on actual basis as
per contract. This has been done by the Company
as per industry practice and based on expert
opinion obtained.
2. Note No. 2.5 (Investment) & Note 3.12 with regard
to classification of expenditure of capital nature for
exploration (MOIL Share) for proposed Joint Venture
with GMDC, amounting to H 765.28 Lakhs. This is
disclosed under Investments in the name and style
of "MOIL-GMDC JV, yet to be incorporated”. This
amount should have been classified under Other
Non- Current Assets.
3. Note No. 2.4 (Intangible asset under development)
& Note No. 3.13 with regard to classification of
expenditure of capital nature for exploration for
a proposed Joint Venture with MPSMCL. This
expenditure amounting to H1694.75 Lakhs is being
recognized and accounted for as Intangible asset
under development in the financial statements.
This MoU has been signed to explore the options
of manganese ore mining in different districts of the
state of Madhya Pradesh. This amount should have
been classified under Other Non- Current Assets.
4. Note No 2.4 (Intangible asset under development)
& Note No. 3.14 with regard to classification of
expenditure of capital nature for exploration for
proposed Joint Venture with Chhattisgarh Mineral
Development Corporation (CMDC). This expenditure
amounting to H115.76 Lakhs is being recognized and
accounted for as Intangible assets under development
in the financial statements. This MoU has been signed
to explore the options of mining for manganese and
associated minerals in different districts of the state
of Chhattisgarh. This amount should have been
classified under Other Non- Current Assets.
5. Note No. 3.15 (i) (b) and 3.16 regarding Land in Bobbili.
The land at Bobbili was purchased by MOIL from
APIIC for the setting up of Ferro / Silico Manganese
plant. A Joint Venture Company was formed with
RINL. Techno economic feasibility report (TEFR) was
prepared by MECON in 2000. It was determined that
the project was not viable in view of the power tariff
increase and the reduction in market prices of the
Ferro / Silico Manganese. The land at Bobbili, which
is valued at H898.92 lakhs and WDV of Building H8.03
lakhs has been considered as contingent liability by
the Company. This amount should not be treated as
a contingent liability as there is no expected financial
outlay against the same. The land is fully paid for, and
the Company does not have any further liabilities
against the same.
6. Point No. 1.2.3 of accounting policy & Note No. 2.90
for Inventory. A significant portion of Low-Grade
inventory (LGHS) of the opening stock, remains
unsold during the year. The determination of NRV for
such inventories involves management judgement,
particularly in respect of future saleability, pricing
and utilisation of such stock. Accordingly, we find that
the valuation of such inventory is dependent upon the
outcomes of these assessments.
7. We draw attention to Note No. 2.23 to the standalone
financial statements regarding the process adopted
by the Company for identification of vendors covered
under the Micro, Small and Medium Enterprises
Development Act, 2006 ("MSMED Act").
Udyam Registration details of vendors have not
been integrated into the SAP vendor master and
identification of MSME vendors is being carried out
through manual processes based on information and
documents obtained from vendors. Consequently, the
identification and monitoring of MSME vendors are
not fully integrated with the Company's ERP system
and continue to be supported through manual controls
and procedures established by the management.
8. We draw attention to Note No. 3.10 to the
standalone financial statements regarding Related
Party Transactions.
The Company's Related Party Transaction Policy,
originally approved by the Board and reviewed
periodically in accordance with applicable regulatory
requirements, was revised during the year and
approved by the Board in its 368th Meeting held on
19th March 2026 to incorporate provisions relating
to proposed subsidiary/joint venture arrangements.
Further, the financial statements do not contain a
separate accounting policy specifically addressing
Related Party Transactions under Ind AS 24. The
identification, approval and disclosure of related
party transactions continue to be governed by the
revised policy and applicable regulatory framework.
Our opinion is not modified in respect of the
above matters.Other Matter:
Without qualifying our opinion, we draw attention to the
following matters:
1. A penalty was imposed by the Collector, Balaghat
amounting to H 1,677.09 lakhs, along with an additional
demand of H54.54 lakhs towards economic benefits,
in respect of environmental clearance (EC) capacity
expansion violations at Tirodi Mine as per order dated
30/01/2025. The Company has disclosed the entire
demand of H 1,731.63 lakhs as a contingent liability.
Pursuant to an interim order of the Supreme Court of
India, the matter was stayed, which was subsequently
recalled on 18th November 2025. In our view, upon
recall of the stay, the obligation towards the penalty
stands reinstated. Considering that the Company has
suo-moto accepted the violation and assessed the
minimum payable amount at H 465.06 lakhs, a provision
of H 519.60 lakhs (including H 54.54 lakhs towards
economic benefits) is required to be recognised in
accordance with the applicable Accounting Standards,
with the balance amount of H 1,212.03 lakhs to be
disclosed as a contingent liability.
A complaint has been filed against the Company for
exceeding Environmental Clearance limits at Tirodi
Mines during 2006-09. The potential penalty is not
quantifiable, and no provision or disclosure has been
made in the financial statements.
2. The Company has not carried out an assessment of
any potential financial and operational impact arising
from the implementation of the new Labour Codes
effective from 21st November 2025. Consequently,
no provision or liability has been recognised in the
financial statements in respect of any obligations
that may arise upon their applicability. Further,
no disclosures have been made in the financial
statements regarding the possible impact, status of
implementation, or the expected implications of the
new Labour Codes on the Company’s operations,
employee benefits, and related costs. In the opinion
of management, the impact will not be material.
3. Pursuant to the completion of tenure of the
Independent Directors on the Board of the Company,
the Company’s Board does not have the requisite
number of Independent Directors, as required by the
provision of SEBI Listing Regulations, Companies Act
2013 and Department of Public Enterprise Guidelines,
so as to comply with the quorum as required under
Regulation for Audit Committee Meeting under SEBI
(LODR) Regulations.
The Annual Accounts for Financial Year ended on
31st March 2026 have therefore been approved
by the Board of Directors of the Company on the
recommendation of the Audit Committee of the
Company being constituted without having requisite
number of independent directors as required in terms
of the Companies Act 2013 and SEBI Regulation.
Our opinion is not modified in respect of the
above matters.
Key Audit Matters -
Key audit matters are those matters that, in our
professional judgement, were of most significance in our
audit of the financial statements of the year. These matters
were addressed in the context of our audit of the financial
statement 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.
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S.
No.
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Key Audit Matter
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Auditor’s Response
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1
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Revenue from Contract with Customer : Refer Note no.
2.27 and Note No 1.2.15
Revenue is considered as a key audit matter because
revenue is a key financial performance measure which could
create an incentive to be recognised prematurely.
The revenue recognized by the Company in a particular
contract is dependent on the sale agreement for the
respective customer. Revenue from sale of manganese
is recognized in financial statements at declared grade
of manganese. Relevant areas for revenue recognition
perspective are accuracy of the recognized amounts and
timing of revenue recognition.
The timing of such revenue recognition in case of sale of
goods is when the control over the same is transferred to
the customer, which is mainly upon delivery.
Revenue includes amounts in respect of royalty, district
mineral fund and national mineral exploration trust
contributions but excludes GST and any other taxes/cess.
Sales are reduced to the extent of the amount of price
discount. The Company acts as a principal to its customers,
and all the performance obligation stands on the Company,
therefore revenue is accounted on Gross basis.
Manganese ore fines, hutch, dust and HIMS rejects
generated during operations are recognised as production
as and when they are sold and corresponding sales is treated
as revenue from mining products.
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Principal Audit Procedures:
Our Audit Procedure comprises of assessing the
application of the provisions of Ind AS 115 in
respect of the Company’s revenue recognition and
appropriateness of the estimated adjustments in the
process.
Our audit procedures include:
• Evaluating the design, the processes and internal
controls relating to revenue accounting standard.
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• Evaluating the detailed analysis performed by
management on revenue streams by selecting
samples for the existing contracts with customers
and considering revenue recognition policy in the
current year in respect of those revenue streams.
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• Evaluating the appropriateness of the disclosures
provided under the revenue standard and
assessing the completeness and mathematical
accuracy of the relevant disclosures.
• Ensuring the basis of all estimates are
commensurate with the accounting policy.
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The system of revenue recognition is found to be
appropriate.
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2
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Inventory Valuation:
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Principal Audit Procedures:
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Refer Note No. 2.9 and 1.2.3
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Ourauditapproach involved the following combination
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Verification and valuation of Inventories and related write
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of test of control design, implementations, operating
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down, if any, is a significant area requiring Management’s
judgment of estimates and application of accounting policies
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effectiveness and substantive testing in respect of
verification and valuation of inventories:
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that have significant effect on the amounts recognized in
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• We evaluated the system of inventory
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the Standalone Ind AS Financial Statements. Accordingly,
we consider this as a Key Audit Matter.
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monitoring and control.
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S.
No.
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Key Audit Matter
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Auditor’s Response
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Valuation is done on the following basis:
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•
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It was observed that inventory has been physically
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(a) Finished Goods-Manganese Ore of all grades (except
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verified by the Management during the year.
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Manganese Ore Fines, Hutch Dust and HIMS rejects) -
Valued At cost at mines including depreciation on mine
assets or net realizable value, whichever is less. Similar
items are grouped and actual sales realisation per tonne
is considered for estimating weighted average cost and
net realisable value
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•
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Production and inventory of manganese ore as
well as bulk raw materials and ferro manganese
was determined as per weight volume ratio by the
production / technical department and the same
are accounted for accordingly.
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(b) Manganese Ore Fines, Hutch Dust and HIMS rejects
- Valued At cost per tonne on jigging / processing,
transportation etc. allocated on technical estimates or
net realizable value, whichever is less.
(c) Manganese Ore at port - At landed cost at the port
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•
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We have also tested the values considered in
respect of Net realizable value, cost of products
and have verified these on a sample basis with
the inventory valuation and accounting entries
posted in this regard.
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or net realizable value, whichever is less. Landed cost
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•
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We have obtained a copy of inventory verification
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includes freight, unloading charges, sampling charges
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report, cost sheet and price lists that have been
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etc.
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taken into consideration while arriving at the final
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(d) Electrolytic manganese di-oxide [EMD] (including stock
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closing value of inventory.
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as on 31st March at different stages of production,
ascertained by technical estimation as a percentage of
completed units of EMD) -
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The system of inventory valuation and recording of
stock level is generally found to be appropriate.
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At current year’s cost of production including plant’s
depreciation or net realizable value, whichever is less.
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(e) Ferro manganese/silico manganese including stock in
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cake form as on 31st March, determined by technical
assessment - At current year’s cost of production
including plant’s depreciation (less realizable value of
slag) or net realizable price, whichever is less.
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(f) Stock in process - The quantity of Ferro Manganese/
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Silico Manganese in process cannot be weighed, seen or
assessed and hence, no value is assigned.
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(g) Stock of slag - Slag is a molten mass of impurities
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generated during manufacture of Ferro Manganese,
which is treated as scrap and, accordingly, valued at net
realizable price.
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3
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Deferred tax:
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Principal Audit Procedures:
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As disclosed in Note 3.8, the Company has recognised
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Our audit procedures included the following:
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deferred tax assets in respect of certain deductions on
account of provision for Leave Encashment, provision for
Post-Retirement Medical Benefit, provision for Doubtful
Debts and provision for Bonus to the extent that it is
probable that they will get tax benefits in future. This
requires management judgement in estimating future
taxable income and is accordingly a key audit matter.
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•
•
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Obtaining an understanding of the management’s
process for estimating the recoverability of the
deferred tax assets and identifying key controls
in the process.
Obtaining and analysing the future projections
of taxable profits estimated by management,
assessing the key assumptions used, including the
analysis of the consistency of the actual results
obtained by the various segments with those
projected in the previous year.
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S.
No.
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Key Audit Matter
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Auditor’s Response
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4
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Valuation of Defined Benefit Plan Obligations:
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We have reviewed the assumptions made by
management for uncertain current and deferred tax
positions to assess whether appropriate current and
deferred tax provisions have been recognized and
are based on the most probable outcome.
We found the disclosures relating to the income tax
and deferred tax balances to be appropriate.
Principal Audit Procedures:
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5
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The valuation of the Company’s defined benefit obligations
involves significant judgment and estimation. It is based
on actuarial assumptions such as discount rates, inflation,
salary escalation, and mortality rates. These obligations are
determined by discounting future cash flows to present
value.
The Company has recognized long-term employee
benefit liabilities and post-employment benefits, and has
engaged external actuarial experts to assist in determining
appropriate assumptions and valuations.
Given the complexity of the calculations and the high
degree of estimation involved, this was considered as a key
audit matter.
Provision for Post-Retirement medical benefit:
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Our audit procedures focused on assessing the
reasonableness of key actuarial assumptions such
as discount rate, inflation, and mortality. We tested
internal controls over the review and approval of
these assumptions, as well as the completeness and
accuracy of data provided to the external actuary,
including reconciliation with actuarial reports.
We also discussed the valuation with management to
identify any inconsistencies and verified the adequacy
of disclosures in compliance with Ind AS 19.
Based on the procedures performed, the assumptions
used by management in valuing the defined benefit
obligations were found to be reasonable and
supported by available evidence.
Principal Audit Procedures:
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6
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The valuation provision of the PRMB requires assumptions
which are based upon market conditions, discount rate,
life expectancy of employees and other dependants to be
considered for setting aside fund for medical benefit.
The setting of these assumptions is complex and requires
the exercise of significant management judgement with the
support of external actuary.
Property, Plant & Equipment and Intangible Assets
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In testing the valuation, we have examined the
reports of external actuarial specialist to review
the key actuarial assumptions used, both financial
and demographic, and considered the methodology
utilized to derive these assumptions.
Furthermore, we have examined the sensitivity analysis
adopted by the external party viz. actuarial on the key
assumptions in valuing the defined benefit obligations.
We state that the methodology and assumptions
applied in relation to determination of liability is
acceptable.
Principal Audit Procedures:
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As disclosed in Note 2.1, 2.2, 2.3 & 2.4; during the year
the Company has incurred capital expenditure on various
Property, Plant and Equipment including the capitalisation
of work in progress based on its readiness for intended use
as determined by the management. The estimates of useful
lives and residual value of Property, Plant and Equipment is
a significant area which involves management judgement,
technical assessment, consideration of historical experience,
anticipated technical changes etc.
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Our audit procedure included but was not limited to
the following:
• Assessing the nature of additions made to PPE
and capitalization of capital work in progress on
a test check basis to test whether they meet the
recognition criteria as per Ind-AS 16 -Property,
Plant and Equipment, including its readiness for
intended use as determined by the management.
• Understanding, evaluating and testing the design
and operating effectiveness of key controls
relating to capitalization of various cost incurred.
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S.
No.
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Key Audit Matter
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Auditor’s Response
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7
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Considering the materiality in the context of the Balance
Sheet of the Company and the level of management
judgement and estimates required, the above matter has
been determined as a key audit matter
Export sales in the Capacity of State Trading Enterprise /
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• Reviewing the judgement and assessment of the
management including the nature of underlying
cost capitalized, determination of realizable value
of the assets, appropriateness of assets lives
applied in the calculation of depreciation.
• We have test checked the depreciation calculation
• We observe that the management has regularly
reviewed the judgements and estimation.
• We have also assessed the adequacy and
appropriateness of the disclosures in the
standalone financial statements.
Based on the audit procedures involved, we observe
that the assumptions made by the management were
acceptable.
Principal Audit Procedures:
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Canalizing Agent
Export sales where the Company has been appointed
as a canalizing agent represent transactions wherein the
Company facilitates the export of goods without assuming
significant risks and rewards of ownership. In such
arrangements, the Company earns a fixed 3% as commission
or service fee for its role as an intermediary rather than
recognizing the gross value of exports as revenue.
Accordingly, such transactions require careful evaluation of
the underlying contractual terms to determine whether the
Company is acting as a principal or an agent in accordance
with Ind AS 115. The accounting treatment should
reflect the substance of the arrangement, with only the
commission income being recognized as revenue where the
Company acts as an agent. Proper disclosure of the nature
of such arrangements and the basis of revenue recognition
is also required to be made. Given the judgment involved
in evaluating the nature of the arrangement and ensuring
appropriate revenue recognition and disclosures, this area
was considered a key audit matter.
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Our audit procedures focused on reviewing
contractual arrangements to understand the
Company’s role as a canalizing agent and assessing
whether it acts as a principal or agent in accordance
with Ind AS 115.
We tested export transactions by verifying
supporting documents, calculations, fund flows, and
reconciliation with shipping records.
These procedures enabled us to conclude that
revenue recognition and disclosures for such export
arrangements are appropriate.
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Information other than the Standalone Financial
Statements and Auditor’s Report thereon
The Company’s Management and Board of Directors is
responsible for the preparation of the other information.
The other information comprises the information included
in the Management Discussion and Analysis, Board’s
Annual Report including Annexures to Board’s Report,
Business Responsibility Report, Corporate Governance
Report and Shareholder’s Information, Corporate
Social Responsibility but does not include the Financial
Statements and our Audit 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 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
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 communicate
the matter to those charged with governance, as
applicable under relevant laws and regulations.
• We have nothing to report in this regard.
Responsibilities of Management and Those
Charged with Governance for the 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 and presentation
of these Standalone Financial Statement that give a true
and fair view of the financial position, financial performance
including other comprehensive income, statement of
changes in equity and cash flow of the Company in
accordance with the accounting principles generally
accepted in India, including the Indian Accounting Standard
(Ind AS) specified under section 133 of the Act, read with
Rule 7 issued thereunder. This responsibility also includes
maintenance of adequate accounting records in accordance
with the provision of the Act for safeguarding the assets of
the Company and for preventing and detecting fraud 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 Standalone Financial
Statements 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, 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 Company’s Board of Directors is also responsible for
overseeing the Company’s financial reporting process.
Auditor’s Responsibility for the Audit of
Standalone Financial Statements
Our responsibility is to express an opinion on these
standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the
accounting and auditing standards and matters which
are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards
on Auditing specified under Section 143(10) of the Act.
Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit
evidence about the amounts and the disclosures in the
financial statements. The procedures selected depend
on the auditor’s judgment, including the assessment
of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal
financial control relevant to the Company’s preparation
of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate
in the circumstances. An audit also includes evaluating
the appropriateness of the accounting policies used and
the reasonableness of the accounting estimates made by
the Company’s Directors, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion on the standalone financial statements.
Our objectives are to obtain reasonable assurance about
whether the 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 based on these Financial Statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional
scepticism throughout the audit. We also:
i. Identify and assess the risks of material misstatement
of the 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.
ii. 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
the entity has adequate internal financial controls
system in place and the operating effectiveness
of such controls.
iii. Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.
iv. Conclude on the appropriateness of management’s
and Board of Director’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 auditors’ 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 auditors’ report. However, future
events or conditions may cause the Company to cease
to continue as a going concern.
v. 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.
Report on otherLegal and regulatory requirements:
1. 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
purpose 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 including Other Comprehensive Income
and Statement of Cash Flow and the Statement
of Changes in Equity 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 (Ind AS) specified under
Section 133 of the Act, subject to Emphasis of
Matter stated above.
e. In terms of Notification no. G.S.R. 463 (E)
dated 05th June 2015 issued by the Ministry
of Corporate Affairs, provisions of Section
164(2) of the Act regarding disqualifications
of the Directors, are not applicable as it is a
Government Company.
f. With respect to the adequacy of the internal
financial controls with reference to Standalone
Financial Statements of the Company and the
operating effectiveness of such controls, refer
to our separate Report in "Annexure A”. Our
report expresses an unmodified opinion on
the adequacy and operating effectiveness of
the Company’s internal financial controls with
reference to Standalone Financial Statement.
g. Based on our audit, we report that the provisions
of section 197 read with Schedule V to the Act
are not applicable to the Company since the
Company is a Government company as defined
under section 2(45) of the Act. Accordingly,
reporting under section 197(16) is not applicable.
h. As per notification number G.S.R. 463 (E) dated
5th June 2015 issued by the Ministry of Corporate
Affairs, section 197 of the Act as regards
managerial remuneration is not applicable to the
Company, since it is a Government Company
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 as at March 31, 2026,
on its financial position in its standalone
financial statements- Refer Note 3.15 (i) (a)
& (b) to the Standalone Financial Statements.
ii. There are no long-term contracts including
derivative contracts for which provision for
material foreseeable losses is required.
iii. There has been no delay in transferring
amounts, 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 its knowledge and
belief, as disclosed in the notes to the
accounts, no funds (which are material
either individually or in 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 persons or entities, 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 in behalf
of the Ultimate Beneficiaries.
b) The Management has represented,
that, to the best of its knowledge
and belief, as disclosed in the notes
to accounts, no funds (which are
material either individually or in the
aggregate) have been received by the
Company from any persons or entities,
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.
c) Based on the audit procedures
performed 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) of the
Companies (Audit and Auditors) Rules,
2014, as provided under (a) & (b) above
contain any material misstatement.
2. The dividend declared or paid during the year by the
Company is in compliance with Section 123 of the Act.
3. Based on our examination which includes test checks,
it appears that the Company has used an accounting
software (SAP) for maintaining its books of accounts
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 or disabled. The requirement
to preserve the audit trail as per Section 128(5)
of Companies Act 2013 has been complied with
by the Company.
4. As required under section 143(5) of the Companies
Act, 2013 we give in the Annexure "B" a statement
on directions issued by the Comptroller & Auditor
General of India after complying with the suggested
methodology of audit, action taken thereon and its
impact on the accounts and Standalone Financial
Statement of the Company.
5. As required by the Companies (Auditor’s Report)
Order, 2020 ("the Order"), issued by the Central
Government in terms of sub-section (11) of
section 143 of the Companies Act, 2013, we give
in the Annexure "C" a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the
extent applicable.
FOR, TACS & CO.
CHARTERED ACCOUNTANTS
(FRN. 115064W)
CA MUMTAZ ABID ALI
(PARTNER)
Date: 11-06-2026 M. No. 042696
Place: Nagpur UDIN: 26042696AEHFRA9801
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