Mishra Dhatu Nigam Ltd Auditor Reports

To

The Members of

Mishra Dhatu Nigam Limited

Hyderabad.

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Mishra Dhatu Nigam Limited ("the Company"), which comprise the Balance Sheet as at 31^st March, 2024, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as the "standalone financial statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (the ‘Act) in the manner so required and give a true and fair view in conformity with the 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, 2024, and its profit, total comprehensive income, changes of equity and its 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 auditors 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 ("ICAI") of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs code of ethics. We believe that the audit evidence obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

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 of the current period. 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. The key audit matters that we have identified in the current year are as follows:

Key Audit matter	How the matter was addressed in our audit
i) Revenue Recognition:
Refer Accounting Policy Note No.2.3 and Note No. 28 to the standalone financial statements.	Following audit procedures were performed, considering the significance of the matter, amongst others to obtain sufficient audit evidence:
Revenue Recognition was identified as a key audit matter as the Company as well as its external stakeholders focus on Revenue as a key performance indicator. This could create an incentive for revenue to be overstated or recognized before control has been transferred. The standard on Revenue establishes a comprehensive framework for determining when, how and under what conditions Revenue could be recognized. Accordingly, this involves certain key judgements relating to identification of distinct performance obligations, determination of transaction price of identified performance obligation, the appropriateness of the basis used to measure revenue recognition.	1. Evaluated the design of key controls and the operating effectiveness of the relevant key controls with respect to revenue recognition on selected transactions.
	2. Examined whether the basis of recognition of revenue is in accordance with the applicable accounting standards.
	3. Checked the underlying documentation to verify that the control and ownership has been transferred to the customer on sale.
	4. Verified whether the company has instituted adequate cut off procedures in relation to sales.
		5. Carried out analytical procedures on revenue recognized during the year to identify unusual variances, if any. Our audit approach did not reveal any non-compliance with the companys declared accounting policies, GAAP and Ind AS.

 

ii) Inventory:
Refer Accounting Policy No.2.8, Note No. 10 and 31 to the standalone financial statements.	Following audit procedures were performed, considering the significance of the matter, amongst others to obtain sufficient audit evidence:
Inventory was identified as a key audit matter as the Company as well as its external stakeholders focus on Inventory as a key financial and operational indicator. This could create an incentive for inventory to be overstated. Inventory valuation involves certain key managerial judgements including accounting estimates that have been identified as having high estimation uncertainty in measuring inventory valuation.	1. Evaluated the design of key controls and the operating effectiveness of the relevant key controls with respect to Inventory.
	2. Review of physical verification of inventory with the company and held by Job workers.
	3. For inventory held with Job Workers, wherever physical verification was not conducted, verified confirmations received by management at the year end.
		4. Ensured that appropriate adjustments are made to inventory wherever variances were observed in physical verification and in the review of external confirmations.
			5. Examined the inventory valuation policies and methods used for its appropriateness and compliance with the applicable accounting standards.
				6. Substantive checking of inventory records to ensure compliance with the relevant accounting policies adopted.
	7. Examined whether the company has instituted appropriate cut off procedures for recognition of inventory.
		8. Performed analytical review procedures in relation to inventory. Our audit approach did not reveal any non-compliance with the companys declared accounting policies, GAAP and Ind AS.

 

iii) Consumption of Raw Material	Following audit procedures were performed, considering the significance of the matter, amongst others to obtain sufficient audit evidence:
Refer Note No. 30 to standalone financial statements.
Cost of material consumed is identified as a key audit matter as the Company as well as its external stakeholders focus on Inventory as a key operational indicator. Cost of material consumed is a substantial portion of the total production costs, and the same is a significant part of total expense for the Company.
	1. Evaluated the design of key controls and the operating effectiveness of the relevant key controls with respect to procurement, issues, consumption, allocation, recording and recognition of Inventory in respect of Ram Material, reusable scrap and WIP.
Given the complexity involved in production processes, gap between input and output, there is a risk of costs may not be accurately ascertained, allocated or recorded that could lead to potential misstatements.	2. Substantive checking of material procurement and its recording to ensure compliance with the relevant accounting policies adopted and the applicable accounting standards.
	3. Substantive checking of recording consumption and allocation to WIP to ensure compliance with the relevant accounting policies adopted.
	4. Substantive checking of inventory records to ensure compliance with the relevant accounting policies adopted.
	5. Performed analytical review procedures in relation to inventory consumption.
	Our audit approach did not reveal any non-compliance with the companys declared accounting policies, GAAP and Ind AS.

Emphasis of Matter

We draw attention to the following matters in the notes to the standalone financial statements:

1. Note No. 9 (Other Non-Current Assets), Note No.11 (Current Financial Assets Trade - Receivables), Note No. 14 (Current Financial Assets - Others), Note No. 15 (Other Current Assets), Note No. 22 (Other Non-current Liabilities), Note No. 24 (Current Financial Liabilities - Trade Payables), Note No. 25 (Current Financial Liabilities - Others) and Note No. 26 (Other Current Liabilities) to the standalone financial statements are subject to receipt of confirmation of balances/reconciliation.

Our opinion on the standalone financial statements is not modified in respect of the above matters.

Information other than the standalone financial statements and auditors report thereon

The Companys board of directors is responsible for the preparation of the other information. The other information comprises the information included in the Directors Report including Annual Report on CSR Activities, Management Discussion & Analysis Report, Business Responsibility Report, Report on Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and outgo, Report on Corporate Governance annexed thereto, Shareholder Information and other information contained in Annual Report but does not include the standalone financial statements and our report thereon. These reports are expected to be made available to us after the date of this auditors 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 identified above 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 course of our audit or otherwise appears to be materially misstated. When we read the other information, if we conclude that there is material misstatement therein, we are required to communicate the matter to those charged with governance.

Managements responsibility for the standalone financial statements

The Companys 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 financial position, financial performance including cash flows, other comprehensive income, changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the accounting standards specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the standalone financial statements by the Directors of the Company, as aforesaid. In preparing the standalone financial statements, management is responsible for assessing the Companys 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. The Board of Directors are also responsible for overseeing the Companys financial reporting process.

Auditors 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 auditors 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 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 Standards on Auditing, we exercise professional judgment and maintain professional scepticism 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 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 company has adequate internal financial controls system in place and the operating effectiveness of such controls based on our audit.

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

Conclude on the appropriateness of managements 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 Companys 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.

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 financial information of the business activities of the Company to express an opinion on the standalone financial statements. We are responsible for the direction, supervision and performance of the audit of the standalone financial statements of such entity included in.

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 of the Company 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 of the Company 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 of the Company, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors 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 (Auditors Report) Order, 2020 ("the Order"), 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", 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 standalone balance sheet, the standalone statement of profit and loss including other comprehensive income, standalone statement of changes in equity and the standalone of cash flows dealt with by this report are in agreement with the books of account maintained for the purpose of preparation of the standalone financial statements; d) In our opinion, the aforesaid standalone financial statements comply with the IND AS specified under section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended; e) As per Section 164(2) of the Act regarding disqualification of directors is not applicable to the Company by virtue of Notification No. G.S.R. No.463

(E) dated 05.06.2015, Government companies are exempt from the applicability of the provisions of section 164(2) of the Act. Hence no comments offered; 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 an unmodified opinion on the adequacy and operating effectiveness of the Companys internal financial controls over financial reporting; g) With respect to the other matters to be included in the Auditors 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; a. The Company has disclosed the impact of pending litigations on its financial position in its financial statements – Refer Note 41 to the financial statements; b. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; c. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company; d. (i) The management has represented that, to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; (ii) The management has represented, that, to the best of its knowledge and belief, no funds have been received by the company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and (iii) Based on such audit procedures as were 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) contain any material mis-statement. h) Based on our examination, the company has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) and the same has operated throughout the year. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with.

3. As required by Section 143(5) of the Act, we give in Annexure "D", a statement on the matters contained in directions issued by the Comptroller & Auditor General of India, the action taken thereon and its impact on the accounts and standalone financial statements of the company in terms of aforesaid section;

	Gandhi & Gandhi
	Chartered Accountants
	Sd/-
	Rama Mohan Giri
	Partner
	Mem No. 29478
	Firm Reg No. 000849S
29th May, 2024	UDIN: 24029478BKBEMB6909

Annexure "A" to Independent Audit Report on Standalone Financial Statements

(Referred to in paragraph 1 under ‘Report on other legal and regulatory requirements section of our report to the members of Mishra Dhatu Nigam Limited for the year ended 31^st March, 2024)

3(i) (a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment.

(a) (B) The Company has maintained proper records showing full particulars of intangible assets.

(b) The Company has a policy of verification to cover all the items of Property, Plant and Equipment, which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, Property, Plant and Equipment were physically verified by the management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and as per the records examined by us, the title deeds of the immovable properties comprising of land and buildings (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee) disclosed in the financial statements are held in the name of the Company as at the balance sheet date except for the following:

Sl. No.	Particulars	Land Details
1	Description of property	1. Factory Area: 132 acres and 31 Guntas 2. Corporate Office: 8.00 Acres 3. Township Area: 97 Acres and 05 Guntas 4. Under lease to DRDO & Others: 37 Acres and 39 Guntas
2	Gross carrying value	H 128.82 Lakh
3	Held in the name of	DMRL, Ministry of Defence. However, in some land award proceedings, MIDHANIs name is mentioned as Super Alloy Plant of DMRL
4	Whether Promoter, Director or their relative or employee	No
5	Period Held. Indicate Range where appropriate	Since 1975/1977/1985/1986
6	Reason for not being held in the name of the Company	Conveyance Deed for 275 Acres and 35 Guntas of land acquired which are through various Allotment/Award Letters/GOs are yet to be executed in the name of the Company. Most of them are allotted/ granted by the undivided Govt. of AP earlier. In the said Grant proceedings, MIDHANI is mentioned as Super Alloy Plant of DMRL (Defence Organization). Further, out of this 1.5 Acres land is under dispute on account of unauthorized occupancy by third party.

(d) As per the information and explanations given to us, the company has not revalued any of its Property, Plant and Equipment (including Right of use of asset) or intangible assets or both during the year. Accordingly, clause 3(i) (d) is not applicable for the year under review.

(e) According to the information and explanation provided to us and the records examined by us, no proceedings have been initiated or are pending against the Company for holding benami property under the Benami Transaction (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder. Accordingly, clause 3(i)(e) of the order is not applicable.

3(ii) (a) According to the information and explanation provided to us, the inventory has been physically verified by the management at reasonable intervals. The procedure for physical verification is appropriate having regard to the nature, size, scale and volume of business operations. No discrepancies exceeding 10% or more in the aggregate of net carrying value of each class of inventory were noticed. However, the discrepancies noticed, having regard to the nature and the size of the business, on physical verification have been adequately dealt with.

(b) During the year, the company has been sanctioned working capital limits in excess of Rs. 5 crores, in aggregate, from banks or financial institutions on the basis of security of current assets. The quarterly returns or statements filed by the company with such banks or financial institutions are in agreement with the books of account of the company.

3(iii) During the year, the company has not made investments in, provided any guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any other parties. Accordingly, clause 3(iii) of the order is not applicable. 3(iv) According to the information and explanations given to us and based on our examination of records, the provisions of section 185 and 186 of the Act are not applicable to the Company vide Notification GSR No.463 (E) F.No.1/2/2014- CL.V dated 5^th June 2015.

3(v) According to the information and explanations given to us and based on our examination of records, the company has not accepted any deposits and accordingly clause 3(v) of the order is not applicable.

3(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148 of the Act, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not carried out a detailed examination of the same.

3(vii) (a) According to the information and explanations given to us, the company is regular in depositing its dues in respect of Goods & Service Tax, provident fund, employees state insurance, income-tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess. We were informed by the management that there were no dues under any other statues. There are no arrears of undisputed amounts payable as at year end for a period of more than 6 months from the date they became payable. (b) Details of disputed Statutory Dues of Sales Tax, Value Added Tax, Customs Duty, Excise Duty, Entry Tax, Service Tax, Cess (as applicable) as at 31^st March, 2024, on account of disputes pending before appropriate authorities as given in Annexure – "B". 3(viii) According to the information and explanations given to us and the records of the company examined by us, there are no transactions which are not recorded in the books of account, which have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).

3(ix) (a) According to the information and explanations given to us and on the basis of examination of the records of the Company, the Company has not defaulted in repayment of dues to any financial institution or bank or government during the year. The Company has not issued any debentures.

(b) According to the information and explanation given to us and records examined by us, the company has been not declared as wilful defaulter by any bank or financial institution or any other lender.

(c) According to the information and explanation given to us and records examined by us, the company has applied term loans for the purpose for which they were obtained. (d) According to the information and explanation given to us and records examined by us, the company has not used the funds raised for short term funds basis for the long-term purposes.

(e) According to the information and explanation given to us and records examined by us, the Company has not taken any funds from any entity or person on account of or to meet the obligations of any other entities. (f) According to the information and explanation given to us and records examined by us, the company has not raised any loans during the year on the pledge of securities held.

3(x) (a) The Company has not raised any money by way of initial public offer or further public offer (including debt instruments).

(b) The company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally convertible) during the year.

3(xi) (a) According to the information and explanations given to us and records examined by us, no fraud by the Company or no fraud on the Company by its officers or employees has been noticed or reported during the year. Accordingly, there were no instances which necessitated filing of report under sub-section (12) of section 143 of the Companies Act in Form ADT – 4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government. 3(xii) (b) According to the information and explanations given to us and records examined by us, no complaints were received from any whistle-blower, neither against the Company nor any of the managerial personnel. The Company is not a Nidhi Company. Hence, clause 3(xii) of the order is not applicable.

3(xiii) According to the information and explanations given to us and records examined by us, the transactions with the related parties are in compliance, wherever applicable, with section 177 and 188 of the Act and the details of such transactions, have been disclosed in the standalone financial statements as required by the applicable accounting standards.

3(xiv) (a) The company has an internal audit system commensurate with the size and nature of its business. (b) The reports of the internal auditors for the period under audit were considered during the audit. 3(xv) According to the information and explanations given to us and records examined by us, the company has not entered into non-cash transactions with directors or persons connected with them. Accordingly, clause 3(xv) of the order is not applicable.

3(xvi)According to the information and explanations given to us and records examined by us, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934. The company did not conduct any Non-Banking Financial or Housing Finance activity. The company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of

India. Hence reporting under clause 3(xvi) of the order is not applicable.

3(xvii)The Company has neither incurred cash loss during the year under consideration nor in the immediately preceding financial year.

3(xviii) During the year under review, there has been no instance of any resignation of the Statutory Auditors. Hence the provisions of para (xviii) of the said order are not applicable. 3(xix) On the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information accompanying the financial statements and our knowledge of the Board of Directors and management plans, we are of the opinion that no material uncertainty exists as on the date of the audit report that company is capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. 3(xx) (a) The company has no unspent fund in respect of projects other than ongoing projects under the provisions of Section 135 of the Companies Act. (b) The Company has no amount remaining unspent under Section 135(5) of the Companies Act, pursuant to any ongoing project.

3(xxi) There are no qualifications or adverse remarks by the Auditors of the Joint Controlled Entity, whose share of profit/ loss is included in the consolidated financial statements of the Company.

	Gandhi & Gandhi
	Chartered Accountants
	Sd/-
	Rama Mohan Giri
	Partner
	Mem No. 29478
	Firm Reg No. 000849S
29th May, 2024	UDIN: 24029478BKBEMB6909

Annexure "B" to the Independent Auditors Report

Annexure to the Independent Auditors Report on the Standalone Financial Statements for the year ended 31^st March, 2024 Of Mishra Dhatu Nigam Limited (Referred to in paragraph vii(c) of Annexure A, a statement on the matters specified in the Companies (Auditors Report) Order, 2020 (as amended) of the Company for the year ended on 31^st March, 2024)

According to the records of the company dues on account of any dispute with respect to Sales Tax, Value Added Tax, Customs Duty, Excise Duty, Service Tax, Entry Tax, Cess and the particulars are furnished below: (H In Lakh)

Name of the Statute	Nature of Dues	Total Demand Amount	Paid under Protest	Period to which the amount relates	Forum where dispute is pending
Customs Act, 1962	Customs Duty & Penalty	540.89	20.28	2009-12	CESTAT
Central Excise Tariff Act,	Excise Duty & Penalty	225.97	-	2006-07 to	CESTAT
1985				2008-09
Finance Act, 1994	Service Tax on LD	154.2	7.71	01/07/2012 to	CESTAT
	received from Vendors			31/03/2016
Customs Act, 1962	Customs Duty & Penalty	106.2	-	2011-12	CESTAT
CST Act, 1956	CST	143.6	109.44	2009-10 to	VAT Tribunal
				2011-12
Finance Act, 1994	Service Tax on LD	33.21	3.32	2016-17	CESTAT
	received from Vendors
VAT Act, 2005	VAT	47.83	23.92	02/2014 to	Appellate Deputy
				06/2017	Commissioner
Customs Act, 1962	Customs Duty & Penalty	116.7	114.7	2020-21	CESTAT

Annexure "C" to the Independent Auditors Report

Annexure to the Independent Auditors Report on the Standalone Financial Statements for the year ended 31^st March, 2024 Of Mishra Dhatu Nigam Limited (Referred to in paragraph 2 (f) under ‘Report on other legal and regulatory requirements section of our report to the Members of Mishra Dhatu Nigam Limited for the year 23-24)

Report on the internal financial controls over financial reporting under clause (i) of sub – section 3 of section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Mishra Dhatu Nigam Limited ("the Company") as at 31^st March, 2024, in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Managements responsibility for internal financial controls

The board of directors of the Company is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditors responsibility

Our responsibility is to express an opinion on the Companys internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India and the standards on auditing prescribed under Section 143 (10) of the Act, to the extent applicable to an audit of internal financial controls. Those standards and the guidance note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement in the standalone financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our audit opinion on the Companys internal financial control system over financial reporting.

Meaning of internal financial controls over financial reporting

A companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone financial statements for external purposes in accordance with generally accepted accounting principles.

A companys internal financial control over financial reporting includes those policies and procedures that i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of standalone financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets that could have a material effect on the standalone financial statements.

Limitations of internal financial controls over financial reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management of override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion and according to the information and explanations given to us, the Company has, in all material respects, an adequate internal financial control system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2024, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

	Gandhi & Gandhi
	Chartered Accountants
	Sd/-
	Rama Mohan Giri
	Partner
	Mem No. 29478
	Firm Reg No. 000849S
29th May, 2024	UDIN: 24029478BKBEMB6909

Annexure "D" to the Independent Auditors Report

Annexure to the Independent Auditors Report on the Standalone Financial Statements for the year Ended 31^st March, 2024 Of Mishra Dhatu Nigam Limited (Referred to in paragraph 3 under "Report on other legal and regulatory requirements" section of our report to the members of Mishra Dhatu Nigam Limited of even date)

Reports on the directions under 143(5) of Companies Act,2013 issued by the Comptroller and Auditor General of India

Sl. No.	Directions u/s. 143(5) of the Companies Act, 2013	Auditors Reply on action taken on the directions	Impact
1	Whether the company has system in place to process all the accounting transactions through IT system? If yes, the implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financial implications, if any, may be stated.	Company is using Oracle ERP software to record all business and financial transactions including Purchase Accounting, Sales Accounting, Inventory transactions, Production transactions, Accounts Payable, Accounts Receivable, Fixed Assets, Payroll, Oracle Process Manufacturing and General Ledger and all the modules are integrated with one another. The software itself has built in checks and validations between inter related modules. Accordingly, the data accuracy and integrity are maintained. All payment approvals are processed using the approval hierarchy defined in Oracle Module. All the accounting transactions are processed and the Trial Balance is generated from Oracle based ERP System. In view of the above, we confirm that no financial transactions are carried out outside IT systems and hence there is no financial implication on the integrity of the accounts during the Financial Year 2023-24.	NIL
2	Whether there is any restructuring of an existing loan or cases of waiver/write off of debts/loans/interest etc. made by a lender to the company due to the companys inability to repay the loan? If yes, the financial impact may be stated. Whether such cases are properly accounted for?	According to the information and explanation furnished to us and based on our examination of books, there is no restructuring of an existing loan or cases of waiver / write-off of debts / loans/ interest etc. made by a lender to the company during the financial year 2023-24.	NIL
3	Whether funds (grants/subsidy etc.) received/ receivable for specific schemes from Central/ State Government or its agencies were properly accounted for/utilized as per its term and conditions? List the cases of deviation.	Based on the examination of the books and records of the company, during the Financial Year 2023-24, no funds were received by the Company for any specific schemes.	NIL