Essar Shipping Ltd Auditor Reports

To

the Members of

Essar Shipping Limited

Report on the Audit of the Standalone Financial Statements

1. Opinion

We have audited the Standalone Financial Statements of

Essar Shipping Limited ("the Company"), which comprises of the balance sheet as at March 31, 2025, the statement of profit and loss (including Other Comprehensive Income), statement of cash flows and the statement of changes in equity for the year then ended and notes to the Standalone Financial Statements, including a summary of material accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone

Financial Statements give the information 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, 2025, the profit (financial position including Other Comprehensive Income), changes for the year inequityanditscashflows ended on that date.

2. Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the

Act. Our responsibilities under those standards are further described in the Auditor?s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (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 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 sufficientand appropriate to provide a basis for our opinion on the Standalone Financial Statements.

3. Material Uncertainty Related to Going Concern

We draw attention to Note No. 28 to the Standalone Financial Statements, which indicates that as on March 31, 2025, the Company has accumulated losses of Rs. 6,520.75 crore as against capital and reserves of Rs. 5,217.75 crore. The Company has defaulted on several loans and some of the lenders of the Company?s subsidiary (which has gone into liquidation) where the Company is a Guarantor, have filed application before various forums for recovery of overdue amounts and / or enforcement of guarantees. The Company has disposed off most of its assets and some of the investments with a view to pay off its outstanding dues to lenders / vendors. The Company?s current liabilities exceed its current assets as on March 31, 2025. This indicates that a material uncertainty exists that may cast doubt on the Company?s ability to continue as a going concern.

The Company, however, has represented that, as mentioned in Note No. 28 to the Standalone Financial Statements, the Company has earned operating income by way of hire charges and management fees and is taking steps to rectify the mismatch in working capital. In view of the above, the Company has prepared the accounts as a going concern. Our opinion on the Standalone Financial Statements is not modified for the above matter.

4. Emphasis of Matter

(i) We draw attention to our observations in paragraph 3 above whereby, in spite of several factors mentioned therein, the Standalone Financial Statements are prepared on "Going Concern" basis.

(ii) In an earlier year, the Company had settled the loan with a bank and paid the dues through monetisation of assets and recognised gain on settlement. Post settlement, the Bank had assigned the said loan to an Asset Reconstruction Company (Assignee Company). Pending outstanding bank guarantee (which was withdrawn during the year ended 31st March 2024) and

Certificate? pendingGrouplevelsettlement,‘NoDue

(NOC) was not received from the Bank or the Assignee Company till March 31, 2024.

During the year, the Company has paid an amount of 0.60 crore and received the NOC from the Assignee Company. The amount paid has been charged to the Statement of Profit and Loss and has been shown as an exceptional item.

(iii) We draw attention to Note No. 3(A) and 8 of the Standalone Financial Statements relating to agreement for sale of shares held by the Company in a subsidiary. During the year, part of the consideration amounting to USD 52,499,960 has been received and sale of shares to the extent of consideration received has been recognised in the books of account. The Company has filed necessary forms with the Reserve Bank of India in this regard. The balance shares are held for sale and have been disclosed accordingly.

(iv) We draw attention to Note No.19(B) of the Standalone Financial Statements relating to payment of Rs. 50.83 crores to two banks during the year towards One Time Settlement (OTS) between the said banks and a step-down subsidiary of the Company.

In respect of one bank, the Company has settled the certificate? has loanandpaidtheduesand ‘nodues been received from the said bank. The Company does not expect any additional liability to devolve in this regard. In respect of the other Bank, the OTS is yet to be concluded.

Since the entire amount paid is doubtful of recovery from the step-down subsidiary, the same has been fully provided for.

(v) The Company has netted off of Rs. 331.26 Crore payable to a wholly owned overseas subsidiary with the amount receivable from the said subsidiary. This is subject to pending application and approval from the regulatory authorities.

Our opinion on the Standalone Financial Statements is not modified in respect of the above matters.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the

Standalone Financial Statements 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. In addition to the matters described in the

Material Uncertainty Related to Going Concern paragraph, we have determined the matters described below to be the key audit matters to be communicated in our report:

Key Audit Matter	Auditor?s Response
Going concern	Our audit procedures included but was not limited to the following activities:
As on March 31, 2025, the Company has accumulated llosses of Rs. 6,520.75 crore as against capital and reserves of Rs. 5,217.75 crore.	1. Assessing steps taken by the Management to meet liabilities as and when they become due for payment.
Some of the Lenders of the Company?s Subsidiary (which has gone into liquidation) where the Company is a Guarantor, have filed applications before the High Court / National Company Law Tribunal / Debt Recovery Tribunals for recovery of overdue amounts and / or enforcement of guarantees. The Company has disposed off most of its assets and some of the investment in subsidiaries with a view to pay off its outstanding dues to lenders / vendors. The Company?s current liabilities exceed its current assets as on March 31, 2025.	2. Obtained and evaluated the Company?s plans to repay the loans (with interest) through communication letters and the extent of steps taken for the same.
All these factors indicate that a material uncertainty exists that may cast doubt on the Company?s ability to continue as a going concern.	3. Evaluating legal and other developments related to the Company and / or its subsidiaries based on Minutes of the Audit Committee and Board of Directors.
(Refer Note No. 28 of Standalone Financial Statements).	We found the key assumptions were supported by the available evidence.
	Based on the audit procedures performed, we found disclosures in the Standalone Financial Statements to be appropriate.
Evaluation of Litigation matters	Our audit procedures included but was not limited to the following activities:
The Company has certain significant open legal proceedings for various matters with the Lenders of Company?s Subsidiary & Customers, continuing from earlier years	Assessing management?s position through discussions with the management including review of external legal opinions obtained by the Company (where considered necessary) on both, the probability of success in the aforesaid cases and the magnitude of any potential loss.
(Refer Note No. 22 of Standalone Financial Statements)	Discussion with the management on the development in these litigations during the year ended March 31, 2025.
	Review of the disclosures made by the Company in the Standalone Financial Statements in this regard.
	Obtaining a representation letter from the management on the assessment of these matters (including the basis of the judgement).

Information other than the Standalone financial Statements and Auditor?s Report thereon

The Company?s Management and the Board of Directors is responsible for the preparation of the Other Information. The Other Information comprises of the information included in the

Annual Report including its annexures, Corporate Governance and Shareholder?s Information, but does not include the Standalone Financial Statements and our independent auditor?s report thereon. The Company?s annual report is expected to be made available to us after the date of this auditor?s report.

Our opinion on the Standalone Financial Statements does not cover the Other Information and we will 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, we conclude that there is a material misstatement of the Other Information, we are required to report that fact.

Responsibilities of the management and those charged with governance for the Standalone Financial Statements

The Company?s Management and the Board of Directors is 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, total comprehensive income, changes in equity and cash flows of the Company in accordance with Ind AS and other accounting principles generally accepted in India. 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, the Management and the 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 the Management or the 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 Management and the Board of Directors are 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 independent 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 Standards on Auditing 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 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 control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial control systems in place and the operating effectiveness of such controls.

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

- Conclude on the appropriateness of management?s use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to event or conditions that may cast significant doubt on the Company?s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor?s report to the related disclosures in the Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our independent 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 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) evaluating 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 significant audit and 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 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 disclosures about the matters or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor?s Report) Order, 2020 ("the Order") issued by the Central Government in terms of Section 143 (11) of the Act, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order.

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 including Other Comprehensive Income, Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the relevant books of account. d. In our opinion, the aforesaid Standalone Financial Statements comply with the Ind AS specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. e. The matters described under "Emphasis of Matter" paragraph and the Going Concern matter described under the "Material Uncertainty Related to Going Concern" paragraph, in our opinion, may have an adverse 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 as on March 31, 2025, from being appointed as a director in terms of Section 164(2) of the Act. g. 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 B". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company?s internal financial controls with reference to Standalone Financial Statements. h. 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 and 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 requisite approvals mandated by the provisions of Section 197, read with Schedule V to the Act. 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, as amended in our opinion and to the best of our information and according to the explanations given to us:

a) The Company does not have any pending litigations on its financial position in its Standalone Financial Statements, other than as mentioned in Note No. 22 to the Standalone Financial Statements.

b) The Company did not have any long-term contracts including derivatives for which there were any material foreseeable losses.

c) The Company is not required to transfer any amount to the Investor Education and Protection Fund during the ended March 31, 2025.

d) i) The management has represented that, to the best of its knowledge and belief, other than as disclosed in the notes to accounts (refer Note no.31), 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;

i) The management has represented, that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts (refer Note No.32), 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

ii) Based on such audit procedures that we have 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.

e) The Company has not declared or paid any dividend during the year.

f) Based on our examination, which included test checks, the Company has used accounting software for maintaining its books of account which has the feature of recording audit trail (edit logs) facility and the same has operated throughout the year for all relevant transactions recorded in the respective software. Further, during the course of our audit we did not come across any instances of audit trail feature being tampered with, in respect of accounting software for which the audit trail feature was operating. The Company has complied with the statutory requirements of preservation of the audit trail for transactions recorded in the software except for audit trail at the database level for accounting software SAP to log in any direct changes.

Annexure – A to the Independent Auditor?s Report

Referred to in Para 1 ‘Report on Other Legal and Regulatory Requirements? in our Independent Auditor?s Report to the members of the Company on the Standalone Financial Statements for the year ended March 31, 2025.

To the best of our information and according to the explanations provided to us by the Company and the books of account and records examined by us in the normal course of audit, we state that: (i) In respect of the Company?s Property, Plant and Equipment and Intangible Assets: (a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment.

(B) The Company does not have any intangible assets.

(b) Property, plant and equipment have been physically verified by the management at the year-end in accordance with a regular program of verification. discrepancies noticed on such verification, which in our opinion are not material, have been appropriately dealt with in the books of account.

(c) The title deeds of immovable properties, comprising of freehold land, disclosed in the Financial Statements is held in the name of the Company.

(d) The Company has not revalued its Property, Plant and Equipment (including right-of-use assets) during the year. The Company does not have any intangible assets.

(e) The Company does not have any proceedings initiated or pending for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

(ii) The Company did not hold any inventory throughout the year and therefore reporting under paragraph 3 (ii) of the Order is not applicable to the Company for the year under audit. (iii) During the year, the Company has granted fresh loans to its subsidiary company. The details of balance outstanding at the balance sheet date in respect of loan to subsidiaries are as under:

Particulars	Loan amount granted during the year	Closing balance as at March 31, 2025
Loan to subsidiaries	50.83	852.77 (Fully impaired)

The said loan has been fully impaired by the Company in its books of account. Other than the above, the Company has not given any loan, made any investments in, provided any guarantee or security to companies, firms, Limited Liability

Partnerships or any other parties. There are no loans that have fallen due during the year which have been renewed or extended or fresh loans granted to settle the overdues of existing loans given to same parties. Further, the Company has not granted any loans or advances in the nature of loans, either repayable on demand or without specifying any terms or period of repayment.

(iv) The Company has complied with the provisions of section 185 and 186 of the Act, in respect of loans, investments, guarantees and securities, as applicable.

(v) The Company has not accepted any deposits or amounts deemed to be deposits to which directives of the Reserve Bank of India and provisions of sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under apply. Accordingly, reporting under paragraph 3(v) of the Order is not applicable to the Company for the year under audit.

(vi) The Company is not required to maintain cost records pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended and prescribed by the Central Government under sub-section (1) of section 148 of the Act. Accordingly, reporting under paragraph 3(vi) of the Order is not applicable to the Company for the year under audit.

(vii) (a) Except for delay of two days in payment of goods and service tax, the Company has been generally regular in depositing undisputed statutory dues including provident fund, income tax, duty of customs, goods and service tax and other material statutory dues as applicable with appropriate authorities. There are no undisputed statutory dues outstanding as at March 31,

2025, for a period of more than six months from the date they became payable.

(b) The particulars of dues of Income Tax, Goods and Service tax, Duty of Customs and Duty of Excise or cess as at March 31, 2025, which have not been deposited on account of a dispute, are as follows:

Name of the Statute	Nature of Dues	Amount	Period to which the amount relates	Forum where the matter is pending
Income Tax Act, 1961	Income Tax	14.98	A.Y. 2011-12	The High Court of Bombay
Income Tax Act, 1961	Income Tax	18.13	A.Y. 2012-13	The High Court of Bombay
Income Tax Act, 1961	Income Tax	31.80	A.Y. 2013-14	The High Court of Bombay
Income Tax Act, 1961	Income Tax	37.55	A.Y. 2014-15	The High Court of Bombay
Income Tax Act, 1961	Income Tax	75.25 A.Y. 2016-17	The High Court of Bombay
Income Tax Act, 1961	Income Tax	0.28 A.Y. 2016-17	CIT (Appeal)
Income Tax Act, 1961	Income Tax	56.95 A.Y. 2017-18	The High Court of Bombay
Income Tax Act, 1961	Income Tax	0.19 A.Y. 2017-18	CIT (Appeal)
Income Tax Act, 1961	Income Tax	73.63 A.Y. 2018-19	The High Court of Bombay
Income Tax Act, 1961	Income Tax	2.61 A.Y. 2018-19	CIT (Appeal)
Income Tax Act, 1961	Income Tax	0.38 A.Y. 2021-22	Appeal with ITAT
Income Tax Act, 1961	Income Tax	7.29 A.Y. 1992-93	The High Court of Bombay

(viii) There are no transactions relating to previously unrecorded income that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961, (43 of 1961).

(ix) a) The Company has defaulted in redemption of Foreign Currency Convertible Bonds (FCCB), details of such defaults (including defaults continuing at the balance sheet date) are as under:

Lender Name	Amount of default of principal due	Amount of default of interest*	Period of Default
FCCB	550.22	-	97 days
FCCB	124.53	-	113 days
FCCB	38.04	-	117 days
FCCB	41.62	-	152 days
FCCB	83.08	-	166 days
FCCB	165.95	-	188 days
FCCB	250.17	-	280 days
FCCB	41.47	-	291 days
FCCB	41.81	-	307 days
FCCB	200.59	-	471 days
Total	1537.62	-

*Interest waived till July 31, 2024, or date of repayment whichever is earlier

**The entire of FCCB has been fully redeemed on July 12, 024 and there is no default as at the balance sheet

b) As informed to us, the Company has not been declared wilful defaulter by any bank or financial institution or other lender.

c) On an examination of records of the Company, we report that the term loans were applied for the purpose for which the loans were obtained.

d) On an overall examination of the Standalone Financial Statements of the Company, we report that no funds raised on short-term basis have been used for long-term purposes by the Company.

e) The Company has not taken any funds from any entity or person on account of or to meet the obligation of its subsidiaries, associates or joint ventures.

f) The Company has not raised loans during the year on the pledge of securities held in its subsidiaries, joint ventures or associate companies.

(x) a) The Company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year. Hence, reporting under paragraph 3(x)(a) of the Order is not applicable to the Company for the year under audit.

b) During the year, the Company has issued 6,00,00,000 (interest rate 1%) and 2,50,00,000 (interest rate 8.25%) secured redeemable unlisted non-convertible debentures and 2,50,00,000 (interest rate 1%) unsecured, redeemable, unlisted, non-convertible debentures of face value of Rs.100 each (NCDs), aggregating to Rs. 1100 crore on a private placement basis. The requirements of section 42 of the Companies Act, 2013 have been complied with. The funds raised have been used for the purposes for which the funds were raised.

(xi) a) There are no instances of fraud by the Company or on the Company noticed or reported during the year.

b) No report under sub-section (12) of section 143 of the Companies Act has been filed by the auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and up to the date of this report.

c) As represented to us by the management, there are no whistle blower complaints received by the Company during the year.

(xii) The Company is not a Nidhi company and therefore reporting under paragraph 3 (xii) of the Order is not applicable to the Company for the year under Audit.

(xiii) The Company is in compliance with sections 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the Standalone Financial Statements as required by the applicable accounting standards.

(xiv) a) In our opinion, the Company has an internal audit system which is commensurate with the size and nature of its business.

b) Based on the Internal Audit Reports made available to us, we have considered the observations of the internal auditors of the Company, in determining the nature, timing and extent of our audit procedures, for the year under audit.

(xv) The Company has not entered into any non-cash transactions with its directors or persons connected with him. Accordingly, reporting under paragraph 3(xv) of the

Order is not applicable to the Company for the year under audit.

(xvi) a) In our opinion, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934 and therefore, reporting under paragraph 3(xvi)(a), (b) and (c) of the Order is not applicable to the Company for the year under audit.

b) In our opinion, there is no core investment company within the Group (as defined in the Core InvestmentCompanies (Reserve Bank) Directions, 2016) and accordingly reporting under paragraph 3(xvi) (d) of the Order is not applicable to the Company for the year under audit.

(xvii) The Company has not incurred cash losses during the financial year before considering exceptional items. The Company has incurred cash losses of Rs. 19.16 Crore during immediately preceding financial year.

(xviii)There has been no resignation of the Statutory Auditors of the Company during the year and accordingly the reporting under paragraph 3(xviii) is not applicable to the Company for the year under audit.

(xix) On the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, the auditor?s knowledge of the Board of Directors and management plans, we are of the opinion that a material uncertainty exists as on the date of the audit report that the Company is not 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. We, however, state that this is not an assurance as to the future viability of the company or otherwise.

(xx) Considering that the Company does not have profits, provisions relating to Corporate Social Responsibility are not applicable to the Company. Accordingly, reporting under paragraph 3(xx) of the Order is not applicable to the Company for the year under audit.

Annexure - B to the Independent Auditors? Report of even date on the standalone financial statements of Essar Shipping Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

Opinion

We have audited the internal financial controls with reference to financial statements of Essar Shipping Limited ("the Company") as of March 31, 2025, in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.

In our opinion, the Company has, in all material respects, an adequate internal financial controls with reference to financial statements and such internal financial controls with reference to financial statements were operating effectively as at March 31, 2025, based on the internal control with reference to financial statements 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 ("Guidance Note").

Management?s Responsibility for Internal Financial Controls

The Company?s Management and the Board of Directors are responsible for establishing and maintaining internal financial controls based on the internal control with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note. These responsibilities include the design, implementation and maintenance of adequate internal financial were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company?s policies, 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 Companies Act,

2013 (hereinafter referred to as "the Act").

Auditors? Responsibility

Our responsibility is to express an opinion on the Company?s internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to Financial Statements. 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 with reference to financial statements was 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 with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control with respect to financial statements based on the assessed risk. The procedures selected depend on the auditor?s judgment, including the assessment of the risks of material misstatement of 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

Company?s internal financial controls with reference to financial statements.

Meaning of Internal Financial Controls with reference to financial statements

A company?s internal financial control with reference to financial statements 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 company?s internal financial control with reference to financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) 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 controls that the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company?s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to financial statements

Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management 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 with reference to financial statements to future periods are subject to the risk that the internal financial control with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

For C N K & Associates LLP

Chartered Accountants

Firm Registration No.: 101961 W/W - 100036

Diwakar Sapre

Partner

Membership No. 040740

UDIN: 25040740BMIGMH7659