HMT Ltd Auditor Reports

(Issued consequent to provisional comments by Deputy Director, Indian Audit and Accounts Department, Office of the Director General of
Commercial Audit, Hyderabad vide PDCA/A/c/Desk/2024-25/HMT/1.19/192 dated 02-09-2025 and it supersedes our Indipendent Audit

Report dated 23-07-2025)

To the Members of HMT Limited -

Report on the Audit of the Standalone
Financial Statements

Qualified Opinion:

We have audited the standalone financial
statements of HMT Limited ("the Company"),
which comprise the Balance Sheet as at 31st
March 2025, and the Statement of Profit and Loss
(including Other Comprehensive Income) for the
year then ended 31 March 2025, the Statement
of Changes in Equity and the Statement of Cash
Flows for the year ended on that date and notes
to the standalone financial statements, including a
summary of material accounting policies and other
explanatory information in which are included the
Returns for the year ended on that date audited
by the branch auditors of the Companys branch
located at Aurangabad.

In our opinion and to the best of our information and
according to the explanations given to us, except for
the basis of Qualified Opinion section of our report,
the aforesaid standalone financial statements give
the information required by the Companies Act,
2013 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
and accounting principles generally accepted in
India, of the state of affairs of the Company as at
March 31, 2025 and its profit, total comprehensive
income, changes in equity and its cash flows for the
year ended on that date.

Basis for Qualified Opinion:

1. We draw attention to the audit report of
Food Processing Machinery Unit, Aurangabad
audited by M/S R. K. MULEY & CO., Chartered
Accountants, which includes a qualification
relating to inventory valuation. As stated in Note

2(ii)(j) of the Significant Accounting Policies,
inventories of raw materials, stores, and spares
are valued using the Weighted Average Cost
method. However, the branch auditor was
unable to verify the accuracy of rates and costs
due to inadequate audit evidence. Consequently,
we are unable to determine whether there is
any material misstatement in the inventory
valuation and its consequential impact, if any, on
the financial statements.

2. At the Auxiliary Business Company, Bengaluru,
the Company has valued inventories based on
the Chartered Valuers report without adequate
supporting evidence for the rates used. This
approach is inconsistent with the stated
accounting policy of valuing raw materials,
stores, and spares using the Weighted Average
Cost method. In the absence of sufficient audit
evidence and deviation from the stated policy, we
are unable to determine whether adjustments,
if any, are required to the reported inventory
values.

3. At the Auxiliary Business Company, Bengaluru,
the Company has recognised rental income of
Rs.845 lakhs and incurred maintenance expenses
of Rs.714 lakhs in respect of buildings that belong
to a subsidiary under the previously implemented
scheme of demerger/ subsidiarisation. These
buildings are not reflected in the books of the
Company as assets, though rental income is
recognised. This arrangement is not supported
by a formal, legally enforceable agreement to
clearly establish the terms of use, rights, and
obligations between the Company and the
subsidiary.

4. The Auxiliary Business Company, Bengaluru is
still in the process of reconciling the input tax
credit under the Goods & Services Tax for the

current as well as the past periods, as accounted
in the books of accounts with the GST portal.
Adjustment entries and reversal of ineligible
input tax credit may be required upon completion
of such reconciliation. In the absence of such
reconciliation, we are unable to comment on
the impact of the same on the result or financial
position of the Company.

5. Ind AS 109 requires the application of an
expected credit loss (ECL) model for measuring
and recognising impairment of financial
assets. However, based on the information
and explanations provided, no ECL matrix was
prepared during the audit period to determine
the loss allowance. Consequently, we are unable
to assess the potential impact, if any, on the
Standalone Ind AS financial statements.

6. No allowance for expected credit losses have
been made in respect of a outstanding receivable
from a subsidiary HMT Machine Tools Limited,
which in our opinion has significant credit risk
in view of the subsidiarys continued losses and
negative net worth. The non creation of the loss
allowance results in overstatement of the assets
and understatement of profit for the year to the
extent of such loss, which is unascertained.

7. The Company has not obtained external
confirmations for trade receivables, trade
payables, other current liabilities, and
other current assets. In the absence of such
confirmations and alternative audit procedures,
we were unable to obtain sufficient appropriate
audit evidence regarding the accuracy,
completeness, and existence of these balances.
Accordingly, we are unable to determine whether
any adjustments are required in respect of these
items.

We conducted our audit in accordance with
the Standards on Auditing (SAs) specified
under section 143(10) of the Companies
Act, 2013. Our responsibilities under those
Standards are further described in the 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 of India together with
the ethical requirements that are relevant to
our audit of the financial statements under the
provisions of the Companies Act, 2013 and the
Rules thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these
requirements and the Code of Ethics. We believe
that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for
our opinion.

Emphasis of matter

1. We draw you attention to Note No. 49 of
Standalone Ind AS financial statements for the
financial year ended 31st March, 2025 wherein
HMT Limited has invested Rs.15 lakh (50% of
equity shares) comprising 1,50,000 equity shares
of Rs.10 each fully paid up in Sudmo HMT Process
Engineers (India) Ltd., Bengaluru (M/s. Sudmo
- HMT). M/s. Sudmo-HMT has no operations.
The Board of HMT Ltd has approved (February
2020) for closure of the defunct joint venture
company (M/s. Sudmo- HMT) and submitted the
closure proposal to Ministry of Heavy Inudstries,
Government of India (July 2021) for approval.

2. We draw you attention to Note No. 50 of
Standalone Ind AS financial statements for the
financial year ended 31st March, 2025 wherein
HMT Limited has invested Rs.20.84 lakh (39.86%
of equity shares) comprising 20,84,050 equity
shares of Rs.1 each fully paid up in Gujarat State
Machine Tools Corporation Ltd., Bhavanagar
(M/s. GSMTC). The Board of HMT Ltd gave
(March 2021) in principle approval for liquidation
of M/s. GSMTC and issued the consent letter
to Gujarat Industrial Investment Corporation
Limited (GIIC). GIIC approved (September 2021)
liquidation of M/s. GSMTC subject to approval
from Government of Gujarat, Industries & Mines
Department. HMT Ltd is awaiting approval from

Ministry of Heavy Industries, Government of
India to initiate liquidation under the Insolvency
& Bankruptcy Code, 2016.

3. We draw you attention to Note No. 51 of
Standalone Ind AS financial statements for the
financial year ended 31st March, 2025 wherein
HMT Limited has invested 30,00,000 equity
shares of 1 Naira each fully paid up in Nigeria
Machine Tools Limited, Nigeria (M/s. NMTL).
The Board of HMT Ltd gave (February 2020)
approval for divestment of stake in M/s. NMTL
and awaiting approval from Ministry of Heavy
Inudstries, Government of India.

4. We draw your attention to Note No. 3C Additional
information (d) & (e) and 34 (ii) of Standalone
Ind AS financial statements for the financial year
ended 31st March, 2025 relating to transfer of
land to Raman Research Institute(transferee) for
Rs.926.64 Lakhs and Government of Uttarakhand
(transferee) for Rs.7202.10 Lakhs wherein the
Company (transferor) has received entire sale
consideration and has given the part-possession
of the land and the registration of sale is pending
due to procedural issues.

5. We draw attention to foot note No.2 of Note 3B
of the financial statements, which states that
the Company has not obtained a valuation of fair
value of investment properties from a qualified
valuer and disclosed only the guidance value of
such investment properties of the Company.

6. We draw attention to Note No.35(i) of the
standalone financial statements that describes
the non-redemption of preference share capital
of Rs.3686 lakhs.

7. We draw attention to Note No.58 of the finanical
statements relating to non-renewal of expired
lease agreements.

8. We draw attention to Note No. 33B(h) of the
standalone financial statements regarding the

disclosure of a contingent liability towards
penalty/fine levied by the Stock Exchanges for
certain non-compliances of SEBI Regulations.
The Company has sought waiver, as some of
the non-compliances are beyond its control
and the outcome of the matter is presently
uncertain. No provision has been made in the
financial statements for the said liability, as the
same is dependent on the final resolution of the
proceedings.

Our opinion 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
for the financial year ended 31st March,2025.
These matters were addressed in the context of our
audit of the standalone financial statements, and in
forming our opinion thereon, and we do not provide
a separate opinion on these matters.

Except for the matter described in the Basis for
Qualified Opinion section, we have determined that
there are no other key audit matters to communicate
in our report.

Other Matter

1. The financial statements of the Company for
the year ended March 31, 2024, were audited
by another auditor who expressed a modified
opinion (revised) on those statements on 20
September 2024. The qualifications made and
their impact on the current periods financial
statements, for unresolved matters, are
appropriately considered in this report.

2. We did not audit the financial statements/
information of Food Processing Machinery Unit,
Aurangabad included in these Standalone Ind
AS financial statements of the Company whose
financial statements/financial information

reflect total assets of Rs. 1555.94 lakhs as
at March 31,2025 and total revenues of Rs.
1179.99 lakhs for the year ended on that date.
The financial statements/ information of the
branch has been audited by the branch auditor
M/s R.K. Muley & Co, Chartered Accountants,
Aurangabad whose report has been furnished
to us, and our opinion in so far as it relates to
the amounts and disclosures included in respect
of this unit, are based solely on the report of
such branch auditor. The branch auditors have
reported certain discrepancies under the "Other
Matters" section of their report, rather than
including them as the basis for a qualified opinion.
As these observations pertain specifically to the
branch, have not been classified as qualifications
by the branch auditor, and are not considered
material to the standalone financial statements
of the Company, they have not been addressed
in this report.

Information Other than the Financial
Statements and Auditors Report Thereon

The Companys Board of Directors is responsible
for the other information. The other information
comprises the information included in the Annual
report but does not include the standalone financial
statements and our auditors report thereon.

Our opinion on the Standalone financial statements
does not cover the other information and we do not
express any form of assurance conclusion thereon.

In connection with our audit of the Standalone
financial statements, our responsibility is to read the
other information and, in doing so, consider whether
the other information is materially inconsistent
with the Standalone financial statements, or our
knowledge obtained in 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 report that fact. We have nothing
to report in this regard.

Responsibilities of Management for the
Financial Statements

The Companys Board of Directors is responsible for
the matters stated in section 134(5) of the Companies
Act, 2013 ("the Act") with respect to the preparation
of these Standalone financial statements that give a
true and fair view of the financial position, financial
performance, of the Company in accordance with
the accounting principles generally accepted in
India, including the accounting Standards specified
under section 133 of the Act. This responsibility
also includes maintenance of adequate accounting
records in accordance with the provisions of the
Act for safeguarding of the assets of the Company
and for preventing and detecting frauds and
other irregularities; selection and application of
appropriate accounting policies; making judgments
and estimates that are reasonable and prudent;
and design. implementation and maintenance of
adequate internal financial controls, that were
operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to
the preparation and presentation of the standalone
financial statements that give a true and fair view
and are free from material misstatement, whether
due to fraud or error.

In preparing the Standalone financial statements,
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 Companys 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 the aggregate, they
could reasonably be expected to influence the
economic decisions of users taken on the basis of
these standalone financial statements.

As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional
scepticism throughout the audit. We also:

• 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
Companies Act, 2013, we are also responsible for
expressing our opinion on whether the company
has adequate internal financial controls system
in place and the operating effectiveness of such
controls.

• Evaluate the appropriateness of accounting
policies used and the reasonableness of
accounting estimates and related disclosures
made by 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 Standalones 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 Standalone 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.

We communicate with those charged with
governance regarding, among other matters, the
planned scope and timing of the audit and significant
audit findings, including any significant deficiencies
in internal control that we identify during our audit.

We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence, and
to communicate with them all relationships and
other matters that may reasonably be thought to
bear on our independence, and where applicable,
related safeguards.

Report on Other Legal and Regulatory
Requirements

1. As required by the Companies (Auditors
Report) Order, 201 6 ("the Order"), issued by
the Government of India in terms of sub-section
(11) of section 143 of the Companies Act, 2013,

we give in the "Annexure A" a statement on the
matters specified in paragraphs 3 and 4 of the
Order, to the extent applicable.

2. As required by Section 143(3) of the Act, we
report that:

a. We have sought and obtained all the
information and explanations which to
the best of our knowledge and belief were
necessary for the purposes of our audit.

b. In our opinion, except for the matter described
in the Basis for Qualified opinion paragraph
above, 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, dealt with by this Report are in
agreement with the books of account.

d. In our opinion, except for the matter
described in the Basis for Qualified opinion,
the aforesaid Standalone financial statements
comply with the Accounting Standards
specified under Section 133 of the Act, read
with Rule 7 of the Companies (Accounts)
Rules, 2014.

e. The entity is a government entity and in the
terms of notification reference No.G.S.R.
463(E) dated 05th June 2015 issued by
Ministry of Corporate Affairs for Government
Companies, sub- section (2) of Section
164 of Companies Act, 2013 regarding
disqualification for appointment of director
is not applicable. Hence, Comment on the
same does not arise.

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 B".

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:

i. The company has disclosed the impact of
pending litigations on its financial position
in its standalone financial statements -
Refer Note 33 to the financial statements.

ii. The Company does not have any long-
term contracts, including derivative
contracts, that would require provisioning
for any material foreseeable losses under
applicable laws or accounting standards.

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

iv. a) The Management of the company has
represented that, to the best of their
knowledge and belief, that the Company
has not advanced or loaned or invested
any funds (either from borrowed funds
or share premium or any other sources
or kind of funds) to or in any other
person(s) or entity(ies), including foreign
entities ("Intermediaries"), with the
understanding, whether recorded in
writingorotherwise,that theIntermediary
shall, whether, directly or indirectly lend
or invest in other persons or entities
identified in any manner whatsoever by
or on behalf of the company ("Ultimate
Beneficiaries") or provide any guarantee,
security or the like on behalf of the
Ultimate Beneficiaries.

b) The Management of the company has
represented that, to the best of their
knowledge and belief, other than that as
disclosed in the notes to the accounts, that

the Company has not received any funds
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.

c) Based on audit procedures that
have been considered reasonable and
appropriate in the circumstances, nothing
has come to our notice that has caused us
to believe that the representations stated
under (a) and (b) above, contain any
material misstatement.

v. The Company has not declared or paid
any dividend during the year ended 31st

March 2025, and therefore, compliance
with section 123 of the Companies Act,
2013 is not applicable.

vi. Based on our examination which included
test checks, the company has used an
accounting software for maintaining its
books of account which has a feature
of recording audit trail (edit log) facility
except that the audit trail feature has not
been enabled at some of the branches. In
absence of the audit trail we are unable
to comment whether audit trail feature
of the said software operated throughout
the year for all relevant transactions
recorded in the software or whether
there were any instances of the audit trail
feature been tampered with.

3. As required by Section 143(5) of the Act, we
give in the "Annexure C", a statement on
the compliance to Directions issued by the
Comptroller and Audit General of India.

Annexure A to the Independent Auditors Report

The "Annexure A" referred to in the Independent Auditors Report to the Members of HMT
Limited (the Company) on the Standalone Financial Statements for the year ended 31 March
2025, we report that:

(i). In respect of the Companys property, plant and
equipment, right-of-use assets 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 own any Intangible
Assets and hence reporting under the
paragraph 3(i)(a)(B) is not applicable to
the Company.

b) According to the information and
explanations given to us, the Property, Plant

and Equipment are physically verified once in
three years which is considered reasonable
considering the size of the Company. The
physical verification of Fixed Assets was last
carried out during the FY 2022-23 (except
the now defunct Tractor Division), in which
no material discrepancies were observed.

c) The title deeds of all the immovable properties
(other than properties where the Company is
the lessee and the lease agreements are duly
executed in favor of the lessee), as disclosed
under Property, Plant and Equipment in the
financial statements are held in the name of
the Company, except the following:

Description of Property	Gross carrying value	Held in name of	Whether held by promoter, director, or their relative or employee	Period held	Reason for not being held in the name of the Company
Leasehold Land from CIDCO	Rs. 5.00 lakhs	CIDCO	No	From 1983	The land is encroached, and the matter is pending with the Honorable High Court

d) The Company has not revalued its Property,
Plant and Equipment or Intangible Assets
during the year.

e) According to the information and explanations
given by the management, no proceedings
has been initiated or are pending against the
Company for holding any benami property
under the Benami Transactions (Prohibition)
Act, 1 988 and the rules made thereunder.

(ii). a) As explained to us, inventory of the Company
has been physically verified during the year by
the management at regular intervals. In our
opinion, the frequency of such verification is
reasonable. No material discrepancies were
noticed on such physical verification.

b) According to the information and explanations
given to us by the management and based
on our examination of the books of accounts
in the normal course of audit, the Company
has not been sanctioned any working capital
loan. Thus, paragraph 3(ii)(b) of the Order is
not applicable to the Company.

(iii).a) According to the information and explanation
given to us and based on the audit
procedures performed by us, during the year
the Company has made loans or advances in
nature of loans to subsidiaries, jointventures
or any other parties.

(A) Details of aggregate amount during the year, and balance outstanding at the Balance Sheet date
with respect to such loans or advances to subsidiaries, joint ventures are given below:

Particulars	Loans (Rs. in lakhs)	Advances (Rs. in lakhs)	Guarantee (Rs. in lakhs)	Security (Rs. in lakhs)
Aggregate amount during the year
Subsidiaries	4,086.00	44.88	-	-
Joint Venture	-	(0.17)	-	-
Balance outstanding as at the year end:
Subsidiaries	34,668.41	1,644.41	-	-
Joint Venture	-	3.23	-	-

(B) There are no loans and advances and guarantees or securities provided to other than subsidiaries,
joint ventures or associates.

b) According to the information and explanations given to us and based on the audit procedures
conducted by us, we are of the opinion that the investments made, guarantee provided and the
terms and conditions of loans granted by the Company are prima facie not prejudicial to the interest
of the company.

c) According to the information and explanation provided to us and based on the audit procedures
conducted by us, the principal and interest of the loans granted by the Company, the repayment of
loan is over due as on 31st March 2025. The details for which are as below:

Name of Entity	Amount (Rs. in lakhs)	Due date	Extent of Delay (in days)	Remarks, if any
HMT Machine Tools Limited	456.99	31-03-2019	2192	-
HMT Machine Tools Limited	1345.47	31-03-2020	1826	-
HMT Machine Tools Limited	1640.73	31-03-2021	1461	-
HMT Machine Tools Limited	1828.65	31-03-2022	1096	-

d) According to the information and explanation provided to us and based on the audit procedures
conducted by us, in respect of loans and advances in the nature of loans, there is an amount which
is overdue for more than ninety days as at the balance sheet date in respect of loans given it to its
wholly owned subsidiary i.e., HMT Machine Tools Limited as indicated in below table-

(Rs. in lakhs)

Number of Cases	Principal Amount Overdue	Interest Overdue	Total Overdue	Remarks (if any)
HMT Machine Tools Limited	34,668.41	5,271.85	39,940.26	-

e) According to the information and explanation provided to us, there is no loan given falling due
during the year, which has been renewed or extended or granted fresh loans to settle the over dues
of existing loans given to the same party.

f) According to the information and explanation provided to us and based on the audit procedures
conducted by us, the Company has granted loan or advance in nature of loan to any parties under a
agreement which does not stipulate the terms and period of repayment which are as follows

	All Parties	Promoters	Related Party
Aggregate of loans/advances in nature of loan
- Repayable on Demand (Rs. in lakhs)	4,184	-	4,184
- Agreement does not specify any terms or period of repayment	-	-	-
% of loans/advances in nature of loan to the total loans	11.20%		11.20%

(iv) . In our opinion and according to the information

and explanations given to us, the Company has
complied with the provisions of section 185
and 186 of the Act with respect to the loans,
deposit and investments made.

(v) . The Company has not accepted any deposits

or has any amounts which are deemed to be
deposits to which the provisions of Section 73
to 76 or any other relevant provisions of the
Companies Act rules framed thereunder and
the directions issued by the RBI are applicable.
Hence paragraph 3 (v) of CARO is not applicable
to the company.

(vi) . The Central government has not prescribed

maintenance of cost records under section
148(1) of the Act for any of the products/
services of the Company. Thus paragraph 3(vi)
of CARO is not applicable to the Company.

(vii). a) According to the information and
explanations given to us and on the basis
of our examination of the records of the
Company, amounts deducted/accrued
in the books of account in respect of
undisputed statutory dues including
Provident Fund, Employees State
Insurance, Income-tax, Duty of Customs,
Goods and Services tax, Cess and other
material statutory dues have been not
regularly deposited during the year by the
Company with the appropriate authorities.

There were no undisputed amounts
payable in respect of Provident Fund,
Employees State Insurance, Income tax,
Duty of Customs, Goods and Services tax,
Cess and any other material statutory dues
were in arrears as at 31 March 2025 except
the following, for a period of more than six
months from the date they became payable

Statement of Undisputed Dues
SI. No Nature of Statute	Nature of Dues	Amount (Rs. in lakhs)
1. Employee State Insurance	Employee State Insurance	2.34
2. VAT/CST	Interest on VAT/CST	1.25
3. GST	Interest on GST	0.17
4. Greater Hyderabad Municipal Corporation	Property Tax	867.92
5. Bruhat Bengaluru Mahanagara Palike	Property Tax	39.96

b) According to the information and explanations given to us and based on the audit procedures
conducted by us, there are no dues of income tax, Goods and Service Tax, custom duty, and cess
which have not been deposited of account of any dispute other than that stated below:

Statement of Disputed Dues
Name of the statute	Nature of Dues	Amount (Rs. In lakhs)	Period to which the amount relates	Forum where the dispute is pending
Haryana Local Area Development Tax Ordinance, 2000	Haryana Local Area Development Tax	486.17	From 2005 to 2017	Honourable High Court of Punjab and Haryana
GST	GST under Appeal before Tribunal	62.72	For the year 2019-2020	Appellate Tribunal
Employee Provident Fund	Provident Fund	1210.48	Various years	Employee Provident Fund Appellate Tribunal

(viii).According to the information and explanation
given to us and on the basis of our examination
of the records of the Company, the Company has
not surrendered or disclosed any transaction,
previously unrecorded in the books of account,
as income during the year in the tax assessments
under the Income Tax Act, 1961.

(ix). a) Based on our audit procedure and on
the information and explanation given by
the management, we are of the opinion
that the Company has not defaulted in
repayment of loans or other borrowing to
its lender other than that stated below:

Nature of Borrowing including securities - from Government of India	Amount not paid (Rs. in lakhs)	Due since from	Days of delay unpaid
Interest free Loan dated 21/01/2017	6073.60	21/01/2018	2626
—do—	6073.60	21/01/2019	2261
—do—	6073.60	21/01/2020	1896
—do—	6073.60	21/01/2021	1530
—do—	6073.60	21/01/2022	1165
Interest free Loan dated 16/02/2017	4800.00	16/02/2018	2600
—do—	4800.00	16/02/2019	2235
—do—	4800.00	16/02/2020	1870
—do—	4800.00	16/02/2021	1504
—do—	4800.00	16/02/2022	1139
Interest free Loan dated 29/04/2017	1958.00	29/04/2018	2528
—do—	1958.00	29/04/2019	2163
—do—	1958.00	29/04/2020	1797
—do—	1958.00	29/04/2021	1432
—do—	1958.00	29/04/2022	1067

b) According to the information and
explanation given to us by the
management, the Company is not
declared as a willful defaulter by any bank
or Financial Institution or other lenders.

c) According to the information and

explanation given to us by the management,
the Company has not obtained any term
loan during the year and hence comment
on the same does not arise.

d) According to the information and

explanations given to us and on an overall
examination of the balance sheet of the
Company, we report that no funds raised
on short-term basis have been used for
long- term purposes by the Company.

e) According to the information and

explanations given to us and on an overall
examination of the financial statements of
the Company, we report that the Company
has not taken any funds from any entity
or person on account of or to meet the
obligations of its subsidiaries, associates or
joint ventures as defined under Companies
Act, 2013.

f) According to the information and

explanations given to us and procedures
performed by us, we report that 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) According to the information and

explanation given to us and based on audit
procedure performed; no money was
raised by the way of public issue/follow-
on-offer (including debt instruments).

b) According to the information and

explanations given to us and on the basis
of our examination of the records of the
Company, the Company has not made
any preferential allotment or private

placement of shares or fully or partly
convertible debentures during the year.
Accordingly, clause 3(x)(b) of the Order is
not applicable.

(xi) . a) Based upon audit procedure performed

and information and explanation given
by the management, we report that no
fraud by the Company or any fraud on the
Company has been noticed or reported
during the year.

b) Based upon audit procedure performed
and information and explanation given
by the management, no report under
sub-section (12) of section 143 of the
Companies Act has been filed by us or by
other auditors of the Company.

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 clause 3(xii)(a),(b) and (c) of the
Order are not applicable to the Company.

(xiii) .In our opinion, and based on our audit
procedure, transactions with the related
parties entered into by the Company during the
year are in compliance with section 177 and
section 188 of the Companies Act of 2013 and
the details thereof have been disclosed in the
Standalone Financial Statements, as required
by the Accounting standards and Companies
Act, 2013.

(xiv) .a) According to the information and

explanations given by the Company, it has
an internal audit system commensurate
with the size and nature of its business.

b) The internal audit reports were made
available and have been considered by us.

(xv) .On the basis of the information and
explanations given to us, in our opinion during
the year the company has not entered into
any non-cash transactions with its directors or

persons connected with its directors and hence
provisions of section 192 of the Companies Act,
2013 are not applicable to the Company.

(xvi) .a) According to the information and

explanation given to us and in our
opinion, the Company is not required to
be registered under Section 45-IA of the
Reserve Bank of India Act, 1934.

b) Based on the audit procedure performed,
the Company has not conducted any Non-
Banking Financial or Housing Finance
activities as per the Reserve Bank of India
Act, 1934.

c) Based on audit procedures performed, the
company is not a Core Investment Company
(CIC) as defined in the regulations made by
the Reserve Bank of India.

d) Based on audit procedure performed, the
Group does not have more than one Core
Investment Company (CIC) as a part of the
group. Hence, reporting under this clause
is not applicable to the Company.

(xvii) .The Company has not incurred any cash losses
in the financial year and in the preceding
financial year.

(xviii) .There has been no resignation of the statutory
auditors during the year and accordingly clause
3(xviii) is not applicable.

(xix) .According to the information and explanations
given to us and 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, our knowledge of the
Board of Directors and management plans, we
are of the opinion that material uncertainty
exists as on the date of the audit report that
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.

(xx) . a) The company does not have unspent

amount in respect of other than ongoing
projects in the financial year in compliance
with second proviso to sub-section (5) of
section 135

b) In respect of ongoing projects, the
company has transferred unspent amount
to a Special Account, within a period of
30 days from the end of the financial year
in compliance with Sec.135(6) of the said
Act, as per the details given below:

Financial Year	Amount unspent on CSR activities for "On going Projects"	Amount Transferred to Special Account within 30 days from the end of the Financial Year	Amount Transferred after the due date (specify the date of deposit)
(a)	(b)	(c)	(d)
2024-2025	Rs.45.36 lakhs	Rs.45.36 lakhs	-

/80/

Annexure — B to the Independent auditors report of even date on the standalone
financial statements of "HMT LIMITED" for the year ended 31 March 2025.

Report on the Internal Financial Controls 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 "HMT Limited" 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.

Managements Responsibility for Internal
Financial Controls

The management is responsible for establishing
and maintaining internal financial control 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 lnternal 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, including adherence to companys 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.

Auditors Responsibility

Our responsibility is to express an opinion on the
Companys internal financial controls over financial
reporting 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,
as prescribed under section 143(10) of the Companies
Act, 2013, to the extent applicable to an audit of internal
financial controls, with reference to the Standalone
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 over financial

reporting 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 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 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 Companys internal financial
controls 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:

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 the company; and

3) 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.

Inherent 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 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.

Qualified Opinion

According to the information and explanations given
to us and based on our audit, the following material
weaknesses have been identified as at March 31, 2025:

Company as whole

1. The Company does not have an adequate
internal control system for timely reconciliation
of Goods and Services Tax (GST) data with the
GST portal.

2. The Company does not have appropriate internal
control with respect to Inventory and valuation
of inventory.

3. The Company does not have an appropriate
internal control system for obtaining confirmation
of trade receivables, trade payables and other
material financial balances.

Specific with respect to Divisions (Branches)

4. ABD Unit of HMT Limited - The Company does
not have a proper system of control over invoices
and sales through ecommerce and outlets.

5. The auditor of the Food Processing Machinery
Unit, Aurangabad of HMT Limited has observed
that the Division does not have appropriate
internal control for verification and reconciliation
of Fixed Assets

A material weakness is a deficiency, or a combination
of deficiencies, in internal financial control over
financial reporting, such that there is a reasonable
possibility that a material misstatement of the
Companys annual or interim financial statements
will not be prevented or detected on a timely basis.
In our opinion, except for the effects/possible
effects of the material weaknesses described
above on the achievement of the objectives of the
control criteria, the Company has maintained, in
all material respects, adequate internal financial
controls over financial reporting and such internal
financial controls over financial reporting were
operating effectively as of March 31, 2025, 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.

We have considered the material weaknesses
identified and reported above in determining the
nature, timing, and extent of audit tests applied in
our audit of the March 31, 2025 standalone financial
statements of the Company, and these material
weaknesses do not affect our opinion on the
standalone financial statements of the Company.

"ANNEXURE C" to our Independent Auditors Report on the standalone financial
statements of HMT limited for the financial year 2024-25

Report on the Directions issued by the comptroller & auditor general of India
("C&AG") under section 143 (5) of the Companies Act, 2013

Directions/ Sub-directions	Auditors Observations
1. Assess the fair valuation of all the investments, both quoted and unquoted, made directly by the Company or through Trusts, for Post retirement benefits of the employees. This includes verifying valuation methodologies, ensuring consistency with Ind AS and reviewing supporting documentation. The auditor shall provide a brief note on the valuation approach, its reasonability, and compliance with applicable regulations, reporting any material deviations or misstatements.	HMT Limited has Trusts common to companies in the group/location to manage PF and Gratuity. The Gratuity Trust has invested its funds with the Life Insurance Corporation of India. The Company has obtained a report from an actuary with regard to its post retirement benefit obligations under the relevant IND AS standard. The actuary has adopted the fair value of the investments as communicated by the Life Insurance Corporation of India. However, we have not been provided with a detailed valuation report to arrive at the value by the Insurance Company. The PF Trust has its funds kept only in bank (including RBI) deposits and the value is equivalent to the bank balances only. We are informed that, other than the above mentioned Gratuity Trust funds, no direct investments by the Company or through Trusts are made with respect to the post retirement benefits.
2. Whether the Company has a 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.	The Company uses "Tally Prime" accounting software to process the accounting transactions. Currently, aspects like Payroll, Inventory, Invoicing, Inventory Valuation, Computation of Depreciation and a few other accounting aspects are outside this accounting system. They are prepared using generic software or another utility independent of this accounting system. The calculations/ information generated from these utilities are fed into the accounting software as vouchers. This process involves manual intervention. However, integrity is ensured through internal check processes.
Directions/ Sub-directions	Auditors Observations
3. Whether funds (grants/ subsidy etc.) received/ receivable for specific schemes from CentraliState Government or its agencies were properly accounted for as per the applicable accounting standards or norms and whether the received funds were utilised as per its terms and conditions? Whether accounting of interest earned on grants received has been done as per terms and conditions ofthe Grant. List the cases ofdeviation.	During the year, the Company has not received any grants/ subsidies/ other funds for specific schemes from Cental/ State Government or its Agencies.
4. Whether the Company has identified the key Risk areas? If yes, whether the Company has formulated any Risk Management Policy to mitigate these risks? If yes, (a) whether the Risk Management Policy has been formulated considering global best practices? (b)whether the Company has identified its data assets and whether it has been valued appropriately?	The Company has identified the key risk areas and also formulated risk management policy. In our opinion, the risk management policy has been formulated considering the global best practices, considering the nature of risks. However, the Company has not identified its data assets.
Directions/ Sub-directions	Auditors Observations
5. Whether the Company is complying with the Securities and Exchange Board of India (SEBI) (Listing Obligation and Disclosure Requirements) Regulations, 2015, and other applicable rules and regulations of SEBI, Department of Investment and Public Asset Management, Ministry of Corporate Affairs, Department of Public Enterprises, Reserve Bank of India, Telecom Regulatory Authority of India, CERT-lN, Ministry of Electronics and Information Technology and National Payments Corporation of India wherever applicable? If not, the cases of deviation may be highlighted.	The Company in general is unable to submit the financial results for H2/Q4 within the stipulated time limits. In addition, the company has not complied with the below regulations of SEBI/ Companies Act, 2013 • Appointment of Independent Directors/ Independent Women Director • Composition of Audit Committee, Nomination/ Remuneration Committee, CSR Committee, Stakeholders Relationship Committee • Quorum of Board/ Committee in respect of meetings held during the year We are informed that there are no other non-compliance of the requirements that are applicable directly to the company in respect of Department of Investment and Public Asset Management, Department of Public Enterprises, Reserve Bank of India, Telecom Regulatory Authority of India, CERT-lN, Ministry of Electronics and Information Technology and National Payments Corporation of India.

 

For GRSM & Associates

Chartered Accountants

FRN:000863S

GOPALKRISHNA HEGDE

Partner

M.No.208063

 

Place: Bangalore

Date: 10-09-2025

UDIN: 25208063 BMNZND4462