Mahanagar Telephone Nigam Ltd Auditor Reports

Report on the Audit of the Standalone Financial Statements Qualified Opinion

Basis for Qualified Opinion

believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion on the standalone financial statements.

(i) The Net Worth of the Company has been fully eroded; The Company has incurred net cash loss during the year ended March 31st, 2025 as well as in the previous year and the current liabilities exceeded the current assets substantially. Further, during the year under review the Company has also defaulted in repayment of certain installments of term loan amounting to Rs. 1635.36 crores and interest on term loan amounting to Rs.213.60 crores.

Furthermore, Department of Public Enterprises vide its Office Memorandum No. DPE/5(1)/2014- Fin. (Part-IX-A) has classified the status of the Company as "Incipient Sick CPSE". Department of Telecommunication (DOT) has also confirmed the status vide its issue no. I/3000697/ 2017 through file no. 19-17/2017-SU-II.

These conditions cast significant doubt on ability of the company to continue as going concern. However, the standalone financial statement of the Company has been prepared on a going concern basis keeping in view that the Government of India is holding majority of the shareholding and the below-mentioned initiatives taken by the GOI.

Further, Union Cabinet has approved a revival plan involving employee cost reduction, administrative spectrum allotment for 4G, debt restructuring through sovereign-guaranteed bonds, asset monetization, and in-principal approval for merger with BSNL. Further, the Company had implemented the Voluntary Retirement Scheme in FY 2019-20 and also raised funds by issuing Bonds for Rs 6,500 crore in FY 2020-21 in line with the cabinet note.

The Union Cabinet further approved the issuance of Sovereign Guaranteed Bonds for MTNL for 10 years or more for an amount of Rs. 17,751 Crores, with waiver of guarantee fee.

During the year ended March 31^st, 2023, the Company has raised Rs. 10,910.00 Crore and Rs. 6,660.99 Crores raised during year ended March 31^st, 2024. (refer note no. 78 to the standalone financial statements).

Further, a Committee of Secretaries (COS) was constituted by Government of India for reviewing measures for further resolution, including debt restructuring, asset monetization and AGR dues.

Pursuant to the service agreement entered on 22-11-2024 with BSNL, the entire telecom operations of company in Delhi & Mumbai are being run by BSNL w.e.f. 01-01-2025. BSNL shall also take care of CAPEX & OPEX for the smooth running of operation and ensure EBIDTA neutral operation of the company.

In this regard, we have been informed that certain consumers in Delhi & Mumbai have been migrated to BSNL w.e.f. 01.01.2025 of which revenue has not been recognized by MTNL, amount of which is not ascertained and quantified. Consequently, there is a gap in revenue matching as the expenses of such revenue are borne by MTNL.

(ii) Dues to/Receivable from Bharat Sanchar Nigam Limited (BSNL):

a) The Company has outstanding receivables and payables with BSNL, with a net recoverable amount of Rs. 3,565.04 crores, which remains unreconciled and unconfirmed. Due to pending disputes and lack of confirmation, the recoverability and accuracy of these balances, their impact on the standalone financial results for the year ended March 31, 2025, cannot be determined.

b) The Company has not provided a provision for doubtful claims in respect of lapsed CENVAT Credit due to non-payment of service tax to service providers within the period of 180 days and due to transition provision under Goods and Service Tax (GST) where the aforesaid CENVAT credit amounting to Rs. 115.97 Crores has not been carried forward resulting in overstatement of Current Assets and understatement of loss to that extent.

(iii) The Company has net recoverable balances of Rs. 232.76 crores with the Department of Telecommunication (DOT), which remain unreconciled and unconfirmed. Accordingly, we are unable to comment on the accuracy of these balances or their impact on the standalone financial statements for the year ended March 31, 2025. (Also refer point no. (a) of note no. 70 to the standalone financial statements).

(iv) The Company has certain balances recoverable from its debtors on account of service tax amounting to Rs. 197.87 crores. The balance is recoverable from BSNL and various private parties which are subject to reconciliation and confirmation. Further identification of balance on account of BSNL and other parties are not available. In the absence of reconciliation and confirmation we are not in a position to comment on the correctness of the outstanding balance as above and resultant impact on standalone financial statements of the Company.

(v) Up to the financial year 2011-12, License Fee payable to the DOT on IUC charges to BSNL was worked out on an accrual basis as against the terms of License agreements requiring deduction for expenditure from the gross revenue to be allowed on actual payment basis. From the financial year 2012-13 onwards, the license fee payable to the DOT has been worked out strictly in terms of the license agreements. (Refer note no. 82 to the standalone financial statements).

(vi) Apart from impairment losses previously recognized for CDMA assets, no further impairment has been accounted for under Ind AS 36 during the year ended March 31, 2025. Due to uncertainties in achieving the Companys future projections, we are unable to determine the adequacy of impairment provisions and their impact on the current years loss, other equity, and the carrying value of cash-generating units. (Refer note no. 72 to the standalone financial statements).

(vii) The Company does not follow a system of obtaining confirmations and performing reconciliation of balances in respect of amount receivables from trade receivables, deposits with Government Departments and others, claim recoverable from operators and other

parties and amount payable to trade payables, claim payable to operators, and amount payable to other parties.

Accordingly, amounts receivable from and payable to the various parties are subject to confirmation and reconciliation. Pending such confirmation and reconciliation, the impact thereof on the standalone financial statements are not ascertainable and quantifiable. (Refer note no. 67 to the standalone financial statements).

(viii) The Company does not follow a system of reconciliation of difference between TDS balance as per book and as per TDS certificate and form 26AS under Income-tax Act as applicable. Pending such reconciliation the impact thereof if any on the standalone financial statement is not ascertainable and quantifiable

(ix) Unlinked credit of Rs. 77.29 Crore on account of receipts from subscribers against billing by the Company which could not be matched with corresponding receivables is appearing as liabilities in the balance sheet. To that extent, trade receivables and current liabilities are overstated. Pending reconciliations, the impact thereof on the standalone financial statements are not ascertainable and quantifiable. (Also refer note no. 66 to the standalone financial statements).

(x) Property, Plant and Equipment are generally capitalized on the basis of completion certificates issued by the engineering department or bills received by the finance department in respect of bought out capital items or inventory issued from the Stores. Due to delays in issuance of the completion certificates or receipt of the bills or receipt of inventory issue slips, there are cases where capitalization of the Property, Plant and Equipment gets deferred to next year. We are unable to comment whether the Capital Work-in-progress (CWIP) shown in books in the current year are actually part of CWIP or have already been commissioned. The resultant impact of the same on the standalone financial statements by way of depreciation and amount of Property, Plant and Equipment capitalized in the balance sheet cannot be ascertained and quantified.

(xi) The Department of Telecommunication (DOT) raised a demand of Rs. 3,313.15 crores in 2012-13 towards one-time charges for 2G spectrum for the period of license already lapsed and also for the spectrum given on trial basis. As the matter remains sub judice and the issue of partial spectrum surrender is pending, no liability has been recognized for the same and an amount of Rs.3,205.71 Crores has been disclosed as contingent liability till FY 2018-19, although no further demands have been raised by the DOT. Based on TDSATs directions and managements assessment, the potential liability is now estimated at a maximum of Rs. 455.15 crores and disclosed as a contingent liability.

In view of the above we are not in a position to comment on the correctness of the stand taken by the Company and the ultimate implications of the same on the standalone financial statement of the Company. (Also refer note no. 61 to the standalone financial statements).

(xii) The company has recovered Electricity Charges from the tenants, on which liability for Goods and Services Tax (GST) has not been considered, as the expenses recovered without

installing sub meter in some of the cases. The actual impact of the same on the standalone financial Statement for the year ended March 31, 2025, has not been ascertained and quantified.

(xiii) The TDS on provision for Expenses (Accrued Liability) has not been deducted under chapter XVII-B of Income Tax Act, 1961. The actual impact of the same on the standalone financial statement for the year ended March 31, 2025, has not been ascertained and quantified.

(xiv) The Company is making the provision for interest for late/non-payment to MSME vendors, but such interest is not being paid to the vendors. The interest provision is further subject to deduction of tax under section 194A of Income Tax Act, 1961.The actual impact of the same on the consolidated financial statements for the year ended March 31, 2025, has not been ascertained and quantified.

(xv) The organization has recognized accrued income of Rs. 145.84 crores from BSNL and other parties from the year 2017 to 2025; as billing could not be processed due to a lack of confirmation from the parties or because the agreements with them have expired. However, the organization has not accounted for the GST liability despite the services already being rendered. This results in non- compliance with Section 13 and Section 31 of the CGST Act, 2017.

(xvi) The Company currently recognizes Expected Credit Loss (ECL) only on Trade Receivables and not on other financial assets, specifically claim recoverable. This accounting treatment is not in compliance with Ind AS 109 - Financial Instruments, which mandates that ECL should be recognized on all financial assets measured at amortized cost or at fair value through other comprehensive income, including claim recoverable. The ECL model adopted by the Company requires a comprehensive review to ensure full compliance with Ind AS 109. However, the financial impact of provisioning required under the following balances has not been considered by the Company.

In the absence of information, the effect of which cant be quantified, we are unable to comment on the possible impact of the items stated in the point nos. (i), (ii)(a), (iii), (iv),(v), (vi), (vii),(viii),

(ix), (x), (xi) (xii), (xiii), (xiv) (xv) and (xvi) on the standalone financial statements of the Company for the year ended on March 31, 2025.

Emphasis of Matters

November 4, 2019 under which 14,387 number of MTNL employees opted for VRS and the expenditure of ex-gratia on account of compensation to be borne by the DOT/Government of India through budgetary supports as per approval of cabinet. Balance amount payable to VRS opted employees as on March 31, 2025 is shown in the financial statements of the company as receivable from DOT and payable to VRS retirees, to reflect the actual position with reference to VRS scheme of 2019 of MTNL.

(ix) Note No. 82 The payables towards license fees and spectrum usage charges have been adjusted with excess pension payouts to Combined Pensioners Optees recoverable from DOT in respect of which matter is under consideration and correspondence in going on between the Company and DOT.

(x) Note No. 82 The License agreement between Company and DOT does not have any guidance on change in method of calculation of Adjusted Gross Revenue (AGR) due to migration to Ind-AS from I-GAAP. Provisioning and payment of liability in respect of license fees and spectrum usage charges payable to DOT has been done on the basis of Ind-AS based financial statements. The amount of difference in computation of Adjusted Gross Revenue (AGR) is under consideration of DOT.

(xi) Note No. 19(iv) Dues from the Operators being on account of revenue sharing agreements are not treated as debtors and consequently are not taken into account for making provision for doubtful debts.

(xii) Note 58(A) Certain immovable properties transferred from Department of Telecommunications (DoT) to MTNL in earlier years, which were taken on lease by DoT prior to incorporation of MTNL. On March 30, 1987, both DoT and MTNL entered into a sale deed for transfer of the several movable and immovable assets from DoT to MTNL. The said transfer includes the leasehold lands and buildings which are now in possession of MTNL since the execution of the sale deed. These leasehold immovable properties have not been mutated or renewed in the name of MTNL till date. However, considering MTNL is a Public Sector Undertaking (PSU), the sale deed not registered at that time and executed by DOT is deemed to have been registered for the purpose of transfer of all such assets in terms of section 90 of the Indian registration act, 1908 as considered by the MTNL and stamp duty payable, if any, will be borne and paid by Government as and when any such occasion arises as per sale deed. Accordingly, these leasehold immovable properties have been classified by the management under the heading Right of Use assets.

(xiii) Note No. 60 In certain cases of freehold and leasehold land the company is having title deeds which are in the name of the Company but the value of which are not lying in the books of accounts of the Company.

(xiv) Note No. 67 Regarding amount of receivable and payables (Including NLD/ILD Roaming operators) are subject to confirmation & reconciliation. The recoverable and payable from operators are under constant review and regular efforts are being taken for reconciliation

and recovery of old outstanding dues. Adjustment if any may be required will be done once the reconciliation process is done.

(xv) Note No. 80 Regarding amount payable to GPF trust is currently in the process of reconciling its liabilities to determine the provident fund payables to employees. The adjustment if any resulting from this re-computation/ reconciliation will be recognized once the reconciliation process is completed.

(xvi) Note No. 24 regarding defaults in bank loan repayment amounting to Rs.1848.96 crores, where such bank accounts have been declared as NPA by the respective banks except one bank. The company has initiated with the lender banks for possible resolution and settlement of such items.

(xvii) Provisional income being booked under Revenue from Operations due to non-functioning of the billing software in some areas in the Delhi Unit and Mumbai Unit.

(xviii) In accordance with the requirement of section 149 of the Companies Act, the company does not have requisite number of independent directors and women directors.

Our opinion is not modified in respect of the aforesaid matters.

Material uncertainty related to going concern

We draw attention to Note 78 of the financial statements, which highlights that the Company has incurred net losses and cash losses in the current and previous years, its net worth is fully eroded, and current liabilities significantly exceed current assets. These conditions indicate a material uncertainty about the Companys ability to continue as a going concern.

However, the Union Cabinet has approved a revival plan for BSNL and MTNL, including employee cost reduction, 4G spectrum allotment, debt restructuring through sovereign guarantee bonds, asset monetization, and an in-principle approval for their merger. The Company implemented a Voluntary Retirement Scheme in FY 2019-20 and raised Rs. 6,500 Crore through bonds in FY 2020-21.

Further, the Cabinet approved raising Rs. 17,571 Crore via sovereign guaranteed bonds to replace high- cost debt. A Committee of Secretaries (CoS) is also evaluating measures for MTNLs financial sustainability and merger with BSNL.

In line with CoS directions, the Board has approved a 10-year Service Level Agreement with BSNL (effective from 01.01.2025), under which BSNL will fully manage MTNLs telecom operations.

These conditions cast significant doubt on ability of the company to continue as going concern. However, the standalone financial statement of the company has been prepared on a going concern basis keeping in view of the facts stated in Basis of Qualified opinion para of the report.

Our opinion is not modified in respect of this matter.

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 basis of qualified opinion section, we have determined the matters described below to be the key audit matters to be communicated in our report

Information Other than the Standalone Financial Statements and Auditors Report Thereon

The Companys Board of Directors are responsible for the preparation of the other information. The other information comprises the information included in the Boards Report including Annexures to Boards report, Management Discussion and analysis and report on Corporate Governance but does not include the standalone financial statements and our auditors report there on. The above- mentioned other information is 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 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.

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

The Companys 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, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, 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.

Those 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 SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

• The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the Company has an adequate internal financial controls system with reference to standalone financial statements 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 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.

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 financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.

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

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

From the matters communicated with those Charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our 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.

Other Matters:

The comparative financial statements for the year ended 31^st March 2024 included in these Standalone financial statements have been audited by B.M. Chatrath & Co. LLP Chartered Accountants jointly with D. K. Chhajer & Co. then joint statutory auditors of the company, whose audit report dated May 29, 2024 expressed qualified opinion on the comparative financial statements.

Our opinion is not modified in respect of this matter 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 term of sub section (11) of section 143 of the Act, we give in the Annexure A a statement on the matters specified in paragraph 3 and 4 of the Order, to the extent applicable.

2. As required by section 143(5) of the Act, we give in "Annexure B" a statement on the matters specified by the Comptroller and Auditor General of India for the Company.

3. As per the Notification No. GSR 463(E) dated 5^th June 2015 issued by the Ministry of Corporate Affairs, Government of India, Section 197 is not applicable to the Government Companies. Accordingly, reporting in accordance with the requirement of provisions of section 197(16) of the Act is not applicable on the Company.

4. As required by Section 143(3) of the Act, based on our audit we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit except for the matters described in the Basis for Qualified Opinion Paragraph above.

b) Except for the possible effects of the matters described in the Basis for Qualified Opinion Paragraph above, 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 Statement of Cash Flows dealt with by this Report are in agreement with the relevant books of account.

d) In our opinion, except for the matters described in the Basis of Qualified Opinion Paragraph above, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act, read with relevant rules issued thereunder.

e) Being the Government Company pursuant to the Notification No. GSR 463(E) dated 5 June 2015 issued by the Ministry of Corporate Affairs, Government of India, provisions of sub- section (2) of section 164 of the Act, are not applicable to the Company.

f) The matters described in the Basis of Qualified Opinion Paragraph above, in our opinion, may have an adverse effect on the functioning of the Company.

(c) Based on the audit procedures performed as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.

v. The company has not declared or paid any dividend during the year. Accordingly, the provision of Section 123 of the Act is not applicable.

vi. Based on our examination, which included test checks, the Company has used accounting softwares for maintaining its books of account for the financial year ended March 31, 2025 which has a feature of recording audit trail (Edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the softwares. Further, as represented by the management the edit log is maintained through a "Database trigger" maintained in the system. The database trigger can only be altered by super user/DBA. However, as confirmed by the management there are no instance of the audit trail feature being tampered with during the year ended March 31, 2025.

Additionally, the audit trail has been preserved by the company in accordance with the statutory requirements for record retention.

Referred to in our Independent Auditors Report of even date to the members of Mahanagar Telephone Nigam Limited on the Standalone Financial Statements for the year ended 31^st March, 2025.

In respect of Delhi Units:

In respect to the following properties no title deeds were made available to us:

According to the information and explanations given by the company in Note No. 58A(1) and 58A(3) of the notes to accounts of the standalone financial statement to us and on the basis of our examination of the records of the Company, we express no opinion on the validity of the title of the company of immovable properties disclosed in the financial statements and held as Property, Plant and Equipment or as investment property.

Further, according to the information and explanations given to us, in Delhi one leasehold property has been encroached.

In respect of Mumbai Units: -

The value of the immovable properties as per title deeds are subject to reconciliation with books of accounts.

MTNL

In respect to the following properties no title deeds were made available to us:

Furthermore, in respect of 9 cases of freehold and leasehold land have been encroached by the various persons in respect of which matter is either pending in court or perusing with the various authorities for clearing the encroachment. (Refer Note 58 A (3))

MTNL

MTNL

In respect of Delhi Units:

ii. GST:

iii. Labour Cess:

In respect of Mumbai Basic Units- i. Sales Tax:

In respect of Corporate Office: v. Income Tax:

ANNEXURE-B

ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT

We have conducted the audit of accounts of Mahanagar Telephone Nigam Limited for the year ended 2024-25 in accordance with the directions issued by the C&AG of India under section 143(5) of the Companies Act, 2013 and certify that we have complied with the all directions issued to us.

For O P Bagla & Co LLP

CA Nitin Jain

For S.L. Chhajed & Co. LLP

CA Vijit Baidmutha

(Referred to in paragraph (g) under Report on Other Legal and Regulatory Requirements section of our report of even date)

Report on the Internal Financial Controls with reference to the standalone financial statements under Clause (i) of sub-section 3 of section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls with reference to the standalone financial statements of Mahanagar Telephone Nigam Limited ("the Company") as of 31^st March 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 Companys management is responsible for establishing and maintaining internal financial controls based on the internal control with reference to 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 (ICAI). 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 Act.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls with reference to the standalone financial statements 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") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. 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 the standalone 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 control system with reference to these standalone financial statements and their operating effectiveness. Our audit of internal financial controls with reference to these standalone financial statements included obtaining an understanding of internal financial controls with

Meaning of Internal Financial Controls with reference to these standalone financial statements.

Inherent Limitations of Internal Financial Controls with reference to the standalone financial statements

Qualified Opinion

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 with reference to the standalone financial statements and such internal financial controls with reference to the standalone financial statements 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 standalone financial statements of the Company for the year ended March 31, 2025, and these material weaknesses do not affect our opinion on the standalone financial statements of the Company.