NMDC Ltd Auditor Reports

Independent Auditors Report

To

The Members,

NMDC Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone Financial Statements of NMDC Limited (hereinafter referred to as "the Company"), which comprise the Balance Sheet as at March 31, 2026, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to the Financial Statements, including material accounting policy information and other explanatory information (hereinafter referred to as the "Standalone Financial Statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2026, its profit (including other comprehensive income), changes in equity and its cash flows for the year ended on that date.

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 "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 ("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 made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We believe that the audit evidence obtained by us and the branch auditors in terms of their report referred to in "Other Matter" paragraph below, is sufficient and appropriate to provide a basis for our opinion on the Standalone Financial Statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, 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. We have determined the matters described below to be the Key audit matters to be communicated in our report.

Sl No Key Audit Matter	How audit addressed the Key Audit Matter
1. Revenue from Operations and Related Royalty & Levies.	The audit procedures in relation to revenue recognised, royalty and other statutory dues payable included the following:
A) Revenue from Operations (Rs. 31,553.70 crores):
• Revenue from operations constitute revenue from sale of iron ore, pellets and others. The Company deals with different sizes of iron ore. Amounts invoiced is adjusted with the price of Fe content in the product sold. This involves substantial effort in establishing accuracy of revenue recognised. Hence, this was identified as Key Audit Matter.	• Assessing the appropriateness of the Companys revenue recognition accounting policies in line with Ind AS 115.
	• Understanding and testing of design and operating effectiveness of Internal controls in place relating to recognition and measurement of revenue, royalty and other cess payable.
• The sale price of Iron-ore is based on the presence of "Fe" content in the Iron-ore. The sale price in the e-auction (advance) as well as Long Term Agreement are fixed for standard "Fe" grade and revenue are recognized at standard "Fe" and adjustments for the revenue recognized are made (Bonus / Penalty) based on the certified actual "Fe" grade.	• Testing of relevant information technology general controls, automated controls, and the related information used in recording and disclosing revenue.
	• Performed Cut off procedures as on year end with respect to revenue, royalty and other cess paid based on quantity dispatched.
B) Royalty & Levies (Rs.11,082.00 crores)
• Royalty and other statutory dues on sale of Iron-ore are required to be paid on the basis of Mines and Minerals (Development and Regulation) Act on advance basis to the respective statutory authorities. The Royalty and other statutory dues are computed on the basis of the "Fe" grade and rate published by Indian Bureau of Mines (IBM).	• Recomputed royalty and other cess payable for the current year as per IBM rates based on "Fe" quantities sold and reconciled the provision made.
	• Performed analytical procedures on current year revenue, royalty and other cess and where appropriate, conducted further enquiries and testing.
	• Substantive testing of revenue, royalty and other cess with the underlying documents on a sample basis.
• We identified Royalty & other statutory dues as Key Audit Matter, considering the quantum of royalty and other statutory dues, inherent risk involved in accurately recognizing royalty and other statutory dues and complexities involved with respect to Fe grade, rates prescribed, timing of despatches.	• Substantive testing of quantity despatched on sale with the sales recorded in books and substantive testing of royalty and other cess paid on sample basis with reference to quantity dispatched.
(Refer Note 2.33, 2.41 & 2.49(3) to the Standalone Financial Statements)
2. Capital Work-in progress (Rs. 6,748.58 crores):	The audit procedures in relation to Capital Work in Progress included the following:
Considering the nature, duration, estimated amount and amount incurred on projects carried out, Capital Work in Progress is determined as a key audit matter. (Refer Note 2.3 to the Standalone Financial Statements)	• Reviewed the accounting policies for CWIP.
	• Understanding and testing of design and operating effectiveness of Internal controls in place relating to approval process for capitalisation.
	• Tested the control procedure for identification of cost incurred for specific projects.
	• Performed substantive procedures on sample basis for amounts capitalised and additions to CWIP during the year.
	• Examined the disclosures made in respect of CWIP in compliance with Ind AS-16 and Schedule III to the Companies Act 2013.
3. Trade receivables (Rs.9,185.62 crores)	The audit procedure relating to trade receivables included the following:
Total trade receivables amounting to Rs. 9,185.62 crores represent significant portion of the total assets of the Company as at March 31, 2026. These includes amounts receivable from Central Public Sector undertakings which constitutes 99% of the total trade receivables.	• Understood and tested on a sample basis the design and operating effectiveness of management controls over the recognition and the recoverability of the trade receivables.
In assessing the recoverability of the aforesaid balances and determination of allowance for expected credit loss, managements judgement involves consideration of ageing status, historical payment records, evaluation of litigations, the likelihood of collection based on the terms of the contract and the credit information of its customers.	• Performed test of details and tested relevant contracts, documents and subsequent receipts for material trade receivable balances.
	• Tested the ageing of trade receivables at the year end.
We considered this as key audit matter due to the materiality of the amounts and significant estimates and judgements as stated above.	• Performed additional procedures, in respect of material over-due trade receivables i.e. tested historical payment records, correspondence with customers.
(Refer Note 2.12, 2.49.4.(vi) & 2.51.8 to the Standalone Financial Statements)	• Reviewed the independent/ external experts accounting guidance on expected credit loss model for in respect of overdue receivables.
	• Discussed with management and obtained information on various measures undertaken by the management of those central PSUs for revival and improving business which will result in recovery of these dues.
	• Assessed the allowance for expected credit loss made by management.
4. Contingent Liabilities (Rs. 23,588.47 crores)	The audit procedures in relation to contingent liabilities included the following:
The Company is involved in various taxes and other disputes for which final outcome cannot be predicted and which could potentially result in significant liabilities. The assessment of the risks associated with the litigations is based on complex assumptions, which require the use of judgements, and such judgements relates, primarily, to the assessment of the uncertainties connected to the prediction of the outcome of the proceedings and to the adequacy of the disclosures in the financial statements. Because of the judgement required, the materiality of such litigations and the complexity of the assessment process, this area is a key matter for our audit.	• Understood and tested the design and operating effectiveness of controls as established by the management for obtaining all relevant information for pending litigation cases.
	• Discussed with the management regarding any material developments thereto and latest status of legal matters.
(Refer Note 2.48(A) to the Standalone Financial Statements)	• Read various correspondences and related documents pertaining to litigation cases and relevant external legal opinions obtained by the management.
	• Examined managements judgements and assessments in respect of whether provisions are required and discussed with the management.
	• Reviewed the adequacy and completeness of disclosures.

Emphasis of Matter

We draw attention to the following matters forming part of the Standalone Financial Statements

a. Note No. 2.48 (A.1.3.1) regarding the Karnataka (Mineral Rights and Mineral Bearing Land) Tax Bill, 2024 proposing retrospective levy of taxes, which is pending the assent of the Honble President of India. Considering the current status, the estimated amount of Rs.15,481.72 crores, if enacted in its current form, has been considered as contingent liability.

b. Note No. 2.49.4(vi) regarding recoverability of dues from NMDC Steel Limited (NSL), representing an amount of Rs.1,851.39 crores arising from demerger and Rs.4,839.36 crores of trade and other receivables.

c. Note No. 2.51.8(a) regarding recoverability of trade receivables from Rashtriya Ispat Nigam Limited (RINL) amounting to Rs.4,586.31 crores.

d. Note No. 2.49.4(iv) regarding status of advance of Rs.639.61 crores paid by the Company to Karnataka Industrial Areas Development Board (KIADB) towards cost of land allotted to its wholly owned subsidiary, Karnataka Vijayanagar Steel Limited (KVSL).

e. Note No. 2.48 (A.1.3.2) regarding demand of Rs.1,623.44 crores relating to compensation based on common cause judgement, which is sub-judice.

f. Note No. 2.48 (A.1.3.3) regarding order/ notice alleging mineral dispatches without timely Railway Transit Passes (RTP), resulting in a penalty of Rs.1,620.50 crores which is sub- judice.

g. Note No. 2.49.4(xi) regarding financial position of Legacy Iron Ore Ltd, a foreign subsidiary of the Company.

The impact of the above on the Standalone Financial Statements is dependent on the outcome of the proceedings/ matters as described in the said notes.

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

Information Other than the Standalone Financial Statements and Auditors Report Thereon

The Companys Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report namely Management Discussion and Analysis, Boards Report including Annexures to Boards Report, Business Responsibility and Sustainability Report, Corporate Governance Report and Shareholder Information (collectively called as "Other Information"), but does not include the Standalone Financial Statements and our auditors report thereon. The Other information as above 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 identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

When we read the other information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take appropriate actions, as applicable under the relevant laws and regulations, if required.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

The Companys Board of Directors is responsible for the matters specified in section 134(5) of the Act with respect to the preparation and presentation of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance, other comprehensive income, changes in equity and cash flows of the Company in accordance with accounting principles generally accepted in India, including Indian Accounting Standards (Ind AS) 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 the 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 Board of Directors 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 Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is 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 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 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.

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 Matter

We did not audit the financial statements of six branches included in the audited Standalone Financial Statements of the Company, whose financial statements reflects total assets of Rs.27,867.81 crores as at March 31, 2026; total revenues of Rs.28,092.06 crores and total net profit before tax of Rs.9,450.90 crores, for the year ended March 31, 2026 as considered from the respective audited financial statements of the Branches included in the Standalone Financial Statements of the Company. The financial statements of these branches have been audited by the respective independent branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these branches, is based solely on the report of such branch auditors and the procedures performed by us are as stated under "Auditors Responsibilities for the Audit of the Standalone Financial Statements" section above after considering the requirements of Standard on Auditing (SA 600) on "Using the work of Another Auditor" including materiality.

Our opinion is not modified in respect of the above matter.

Report on Other Legal and Regulatory Requirements

1. Based on our audit and on the consideration of report of Branch Auditors as mentioned in the Other Matter paragraph, as required by the Companies (Auditors Report) Order, 2020 ("the Order") issued by the Central Government of India in terms of Section 143(11) of the Act, 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, based on our audit and on the consideration of report of Branch Auditors as mentioned in the Other Matter paragraph, 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 except for the matters stated in the paragraph 2(j)(vi) below on reporting under Rule11(g) of the Companies (Audit and Auditors) Rules, 2014, as amended;

c) The reports on the accounts of the branch offices of the Company audited under Section 143(8) of the Act by branch auditors have been sent to us and have been properly dealt with by us in preparing this report;

d) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account and other records maintained for the purpose of preparation of the Standalone Financial Statements;

e) In our opinion, the aforesaid Standalone Financial Statements comply with the Indian Accounting Standards ("Ind AS") specified under Section 133 of the Act;

f) The provisions of Section 164(2) of the Act, in respect of disqualification of directors are not applicable to the company, being a Government company in terms of notification no: - G.S.R.463(E) dated 5th June 2015 issued by Ministry of Corporate Affairs, Government of India.

g) The modifications relating to the maintenance of accounts and other matters connected therewith are as stated in the paragraph 2(b) above on reporting under Section 143(3)(b) of the Act and paragraph 2(j)(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014, as amended.

h) 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 a modified opinion on the operating effectiveness of the Companys internal financial controls with reference to the standalone financial statements.

i) With respect to the other matters to be included in the auditors report in accordance with the requirements of Section 197(16) of the Act, as amended:

We are informed that the provisions of section 197 read with Schedule V of the Act, relating to managerial remuneration are not applicable to the company, being a Government Company, in terms of Ministry of Corporate Affairs notification no- G.S.R.463(E) 5th June 2015.

j) 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 Note 2.48(A) to the Standalone Financial Statements.

ii. The company does not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts and related equity shares, that are required to be transferred, to the Investor Education and Protection Fund by the company.

iv. a. The management has represented that, to the best of its knowledge and belief, as disclosed in Note 2.51.12(a) to the Standalone Financial Statements, 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:

• 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 has represented, that, to the best of its knowledge and belief, as disclosed in Note 2.51.12(b) to the Standalone Financial Statements, 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:

• 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

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

v. The interim dividend declared and paid by the company during the year and until the date of this audit report is in accordance with section 123 of the Act.

The final dividend paid by the Company during the financial year 2025-26 which was declared for the previous financial year 2024-25 and approved by the members at Annual General Meeting is in accordance with section 123 of the Act, to the extent it applies to payment of dividend.

As stated in note 2.52.3(b) to the Standalone Financial Statements, the Board of Directors of the Company has recommended Final dividend for the year which is subject to the approval of the members at ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.

vi. Based on our examination which included test checks and the report of the auditors of the six branches and according to the information and explanations given to us and as stated in Note No. 2.51.13 to the Standalone Financial Statements, the Company has used the accounting software for maintaining its books of account which has a feature of audit trail (edit log) facility and the same has operated throughout the year for all the relevant transactions recorded in such software except that:

a. The feature of recording audit trail (edit log) facility was not enabled at the database level to log any direct data changes for the accounting software used for maintaining the books of account.

b. The feature of recording audit trail (edit log) facility was not enabled at the application level on two additional application servers deployed during the year on May 21, 2025. The audit trail feature was enabled on January 11, 2026 and has been operational thereafter. The audit trail (edit log) feature was not enabled for certain custom (Z) tables within the accounting software which was enabled subsequent to the year-end on April 23, 2026.

During the course of our audit, we did not come across any instance of audit trail feature being tampered with and the audit trail has been preserved by the Company as per the statutory requirements for record retention.

3. We are enclosing our report in terms of section 143(5) of the Act, on the basis of such checks of the books and records of the Company as we consider appropriate and the report of the auditors of the six branches and according to the information and explanations given to us, in the "Annexure-C" on the directions issued by the Comptroller & Auditor General of India.

	For VARMA & VARMA
	Chartered Accountants
	FRN 004532S
	K P SRINIVAS
Place: New Delhi	Partner
Date: May 29, 2026	M No. 208520
	UDIN: 26208520HWAQZX4350

Annexure - A To The Independent Auditors Report

(Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements section of our report to the Members of NMDC Limited of even date on the Standalone Financial Statements for the year ended March 31, 2026)

In terms of information and explanations sought by us and given by the company and the books of account and records examined by us in the normal course of Audit and audit procedures performed and consideration of the report of the branch auditors as mentioned in the Other Matter paragraph of the Report, where applicable, and to the best of our knowledge and belief, we state that:

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

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

b) The Company has a regular programme of physical verification of its Property, Plant and Equipment (including Right-of-use assets) by which all the Property, Plant and Equipment (including Right-of-use assets) are physically verified by the management in a phased manner. In our opinion the periodicity of the physical verification is reasonable having regard to the size of the company and the nature of Property, Plant and Equipment. In accordance with this program, certain Property, Plant and Equipment were verified during the year and no material discrepancies were noticed on such verification.

c) The title deeds of immovable properties (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) disclosed in the standalone financial statements are held in the name of the company as at Balance sheet date, except as mentioned in Additional Note 2.1, 2.2 & 2.4 of the Standalone Financial Statements and as given below:

Description of property	Gross carrying value Rs.(In Crores)	Held in name of	Whether promoter, director or their relative or employee	Period held from	Reason for not being held in name of company
KIRANDUL
Land at Madadi Village	0.007	Refer note below	No	31-03 2006	Panchnama done by Railway, Revenue NMDC officials is available with the Project.
Railway Land	NIL	Refer note below	No	31-03-1986	Panchnama done by Railway Revenue authorities and NMDC officials is available with the Project.
Freehold Land	0.0023	Refer note below	No	31-03-1966	Sale Deed available with the management for total 19.09 Hectares. Appeal against the order issued by the Tahsildar, Bade Bacheli is being prepared by the advisor (Revenue) and same will be submitted before the SDM, Bade Bacheli. The title is not in the name of Company.
Revenue Land	Refer note below	Refer note below	No	Refer note below	The company is in the process of making an application to district administrators for allotment of land. The title is not in the name of Company.
BACHELI
Forest Land for Uniflow Rly. Dispatch System	0.124	Forest Department	No	07-06 2002	This is Forest Land. (MOEF Letter No. 8B/007/2002/FCW/1313 dated 07.06.2002)
Land for Shankhni pump House & pipeline	0.0104	Forest Department	No	14-03 2002	This is Forest Land (MOEF clearance Letter dated 14.03.2002).
Infrastructure Land Lease of Deposit 10(FO) PALONCHA	13.92	Forest Department	No	10-07-2019	This is Forest Land (MOEF letter dated 10 July 2019).
SIU NMDC Ltd	1.09	TSIIC	No	16-01-2010	Provisional allotment order has been issued by TSIIC and not yet registered
SIU NMDC Ltd	0.20	TSIIC	No	13-05 2009	During the survey, 2.08 acres found shortage out of 13.43 acres, which is pending confirmation from TSIIC.
DONIMALAI
Bhujanganagar land for Township to the extent of 3.73 acres	0.000659	Refer note below	No	17-03-1971	The Company has Land allotment letter/ land sanction orders. Mutation of the same is pending.
Bhujanganagar land for Township to the extent of 11.23 acres	0.001126	Refer note below	No	07-07-1972
Bhujanganagar land for Township to the extent of 2.22 acres	0.000392	Refer note below	No	17-03-1971
Bhujanganagar land for Township to the extent of 6.94 acres	0.003536	Refer note below	No	15-02-1971
Ranajithpur land for Pellet plant to the extent of 8.31 acres	0.002012	Refer note below	No	03-05-1976
Narasingapura and	0.000315	Refer note below	No	Refer note below
Bhujanganagar for bore hole to the extent of 0.037 acres R&D CENTRE
Patancheru, Survey No.420 & 425	134.19	Allwyn watches Ltd	No	18-07-2019	Mutation is pending.
Hyderabad-502 032 NPD LAB	0.80	Hindustan Tiles & Cement Industries	No	10-08-1990
HEAD OFFICE
Hyderabad Corporate Office, NMDC Ltd., 10-3-311/A, Castle Hills, Masab Tank, Hyderabad-28	0.20	Sri Satya Sai Trust	No	17-09-1981	Revenue Authority inspected the Building Premises & Documents. Mutation is pending.
NMDC Guest, House, Plot No.7 Road No.2, Banjara Hills, Hyderabad-33 NMDC Guest, House, Plot No.16, 18, 19, 20, 21, 22 Road No.2, Banjara Hills, Hyderabad-33	1.00	Govt Land (HUDA)	No	15-02-1995 17-12-1994	Revenue Authority inspected the Building Premises & Documents. Mutation is pending.
Transit Camp, Flat No.24, Kranthi Shikara Apartments, Panjagutta, Hyderabad-82.	0.04	Susheel Chandra	No	19-08-1992	Revenue Authority inspected the Building Premises & Documents. Mutation is pending.
Guest House Plot No.8 H.I.G Jubilee Hills	11.30	Kishore Jain & Vanitha Jain	No	23-03 2022	Mutation is pending.
Private Land-Tokisud North Coal block (incl. Freehold railway siding land) Lease land Railway sliding	306.65	Large number of lands oustees and State authority	No	22-07 2025	189.27 hectares of Land acquired by way of vesting under The Coal Bearing Areas (Acquisition and Development) Act, 1957
	0.74		No	22-07- 2025	The company is taking appropriate steps for completion of legal formalities.
Panna
Free hold Land Khasra No. 1236/3 Panna	0.00052	Refer note below.	No	15-02-1963	Copy of Title Deeds are not available with the company.
Free hold Land Khasra	0.00033		No	15-02-1963
No. 96/2 Panna Free hold Land Khasra No. 1237/2 Panna	0.00074		No	15-02-1963
Free hold Land Khasra No. 1236/2 Panna	0.0030		No	15-02-1963

Note: We have been informed by the management of the company that they are in the process of ascertaining and reconciling amounts related to certain properties. We are also informed that the company is in the process of regularizing the pending documentation and mutation with the respective government authorities for some of the properties. In the absence of this information for few properties, these particulars under "Gross carrying value", "Held in name of" and "Period held from" have not been furnished.

d) The Company has not revalued its Property, Plant and Equipment (including Right-of-use assets) or Intangible assets or both during the year.

e) There are no proceedings initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

ii. a) Physical verification of inventory has been conducted during the year at reasonable intervals by the management and in our opinion, the coverage and procedure of such verification by the management is appropriate and no discrepancies of 10% or more in aggregate for each class of inventory were noticed when compared with Books of account.

b) The Company has not been sanctioned working capital limits from the bank or financial institutions on the basis of security of current assets as per terms of sanction at any point of time during the year. Hence, reporting under clause 3(ii)(b) of the Order is not applicable to the Company.

iii. a. The Company has made investments in, provided guarantee or security or granted loans or advances in the nature of loans, secured or unsecured, to companies, firms, limited liability partnerships or any other parties and the details are given below:

A. The aggregate amount during the year and balance outstanding at the balance sheet date with respect to such loans or advances and guarantees or security to subsidiaries, joint ventures and associates (Refer note 2.49.4(ii) of the Standalone Financial Statements):

					( in Crores)
S. No. Particulars	Guarantees	Security	Investments	Loans	Advances in the nature of loans
1 Aggregate amount granted/provided during the year:
Subsidiaries	-	-	-	-	1.83
Joint ventures	-	-	304.64	-	-
Associates	-	-	-	-	1.18
2 Balance outstanding as at balance sheet date in respect of above cases:
Subsidiaries	0.34	-	481.15	-	671.94
Joint ventures	504.23	-	555.67	-	55.82
Associates	-	-	418.98	-	0.45

B. The aggregate amount during the year, and balance outstanding at the balance sheet date with respect to such loans or advances and guarantees or security to any other entity:

					(Rs. in Crores)
Sl. No. Particulars	Guarantees	Security	Investments	Loans	Advances
1 Aggregate amount granted/provided during the Year
Entity under common control (Refer Note 2.49.4(iii))	-	-	-	-	287.35
Employee Loans (including interest accrued during the year)	-	-	-	105.39	-
2 Balance outstanding as at balance sheet date in respect of above cases
Entity under common control (Refer Note 2.49.4(iii))	-	-	-	-	2,002.92
Employee Loans (including interest outstanding as at the yearend)	-	-	-	208.28	-

b) We are of the opinion that the investments made, guarantees provided, and the terms and conditions of the loans and advances in the nature of loans and guarantees provided during the year are prima facie, not prejudicial to the interest of the Company.

c) Schedule of repayment of principal has not been stipulated in respect of loans and advances in the nature of loans granted by the Company to subsidiaries, joint ventures & commonly controlled entities. There is schedule of repayment of principal and payment of interest prescribed in respect of loans granted by the Company to employees and the repayments (or) receipts of principal and interest are generally as per stipulation.

d) No loans or advances in the nature of loan granted by the Company for which schedule of repayment has been stipulated is overdue as at Balance sheet date.

e) There are no loans and advances given which had fallen due during the year, that have been renewed or extended or fresh loan granted to settle the overdue of existing loans given to the same party.

f) The Company has granted loans or advances in the nature of loans without specifying any terms or period of repayment, to wholly owned Subsidiaries, Joint ventures, Associate companies and entity under common control, as stated in note 2.49.4 of the Standalone Financial Statements and the details of which are given below. There was no loan given to such parties which was repayable on demand:

		(Rs. in Crores)
Particulars	Related Parties	Promoters
Aggregate amount of loans/advances in nature of loans	-	-
A). Repayable on demand	-	-
B). Agreement does not specify any terms or period of repayment	2,731.13	-
Total (A+B)	2,731.13	-
Percentage of loans /advances in the nature of loans to the total loans	92.91%	-

iv. The Company has complied with the provisions of Section 185 and 186 of the Act, in respect of loans granted, investments made, guarantees and securities provided, as applicable.

v. The company has neither accepted any deposits nor accepted any amount deemed to be deposits, from public. As such, the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and rules framed thereunder are not applicable to the Company. No order has been passed with respect to Section 73 to 76, by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal. Accordingly, reporting under clause 3(v) of the Order is not applicable to the Company.

vi. The Central Government has prescribed the maintenance of cost records under section 148(1) of the Act, for the business activities carried out by the Company. We are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have not, however, made detailed examination of the records with a view to determine whether they are accurate and complete.

vii. a) The Company is generally regular in depositing undisputed statutory dues including goods and services tax, provident fund, income tax, service tax, duty of customs, duty of excise, value added tax, cess, royalty and any other statutory dues where applicable to it with the appropriate authorities during the year.

We have been informed that employees state insurance is not applicable to the company.

Further there were no undisputed material amounts of above statutory dues in arrears as at 31st March 2026 for a period of more than six months from the date they became payable.

b) There were no statutory dues referred in clause 3(vii)(a) above which have not been deposited by the Company with the appropriate authorities on account of disputes, except for the following:

Name of the Statute	Nature of the Dues	Amount (net of deposit) (Rs. In Crore)	Period to which the amounts relate to	Forum where dispute is pending
HEAD OFFICE
Income tax Act, 1961	Income Tax & Interest thereon	30.26	2014-15 & 201516	Principal Commissioner of Income Tax
Income tax Act, 1961	Income Tax & Interest thereon	37.36	2019-20	Commissioner of Income Tax (Appeals)
Goods & Services Tax Act	Goods & Services Tax & penalty including interest of 1.72 crores till 31.03.2026	2.92	2017-18	Joint Commissioner (Appeals)
Goods & Services Tax Act	Excess ITC availed in GST Returns including interest of 3.29 crores till 31.03.2026	6.37	2019-20	Joint Commissioner (Appeals)
Goods & Services Tax Act	Differences in ITC claimed in GSTR 9 and Monthly Returns filed including interest of 0.32 crores till 31.03.2026	0.69	2020-21	Joint Commissioner (Appeals)
Income Tax Act, 1961	Withholding tax	0.33	2023- 24 and 2024- 25	Demand in TRACES portal. Company is in the process of filing rectification after reconciling liability with books
KIRANDUL
Nagarpalika, Kirandul	Export Tax	6.66	1995-96 to 2025-26	Honble High Court of Bilaspur
Nagarpalika, Kirandul	Interest on Export Tax	18.63	1995-96 to 2025-26	Honble High Court of Bilaspur
Nagarpalika, Kirandul	Conservency Tax	1.83	1997-98 to 202021	Honble High Court of Bilaspur
Nagarpalika, Kirandul	Property Tax	204.21	2013-14 to 202021	Honble High Court of Bilaspur
DFO, Dantewada and State of Chhattisgarh	Forest Permit Fee		14.06.2002 to 31.10.2012	Honble High Court of Bilaspur
Service Tax	Service tax on Railway Freight Refund	8.81	July 2012	Service Tax Appellate Tribunal
Service Tax	Interest on Service Tax Railway Freight Refund	16.57	July, 2012 to March, 2026	Service Tax Appellate Tribunal
GST Authority	Differential GST under RCM on Royalty Charges (Including DMF & NMET) in respect of licensing services for right to use minerals including exploration and evaluation.	90.02	July, 2017 to December, 2018	Honble High Court of Bilaspur
GST Authority	Interest on Differential GST under RCM on Royalty Charges (Including DMF & NMET) in respect of licensing services for right to use minerals including exploration and evaluation.	126.67	July,2017 to March, 2026	Honble High Court of Bilaspur
District Collector, Dantewada	Common Cause Notice	317.47	2018-19	Honble High Court of Bilaspur
GST Authority	GST Demand (Demand Order-90/ ADC/ GST/ 2023-24)	96.15	2017-18 to 201920	Commissioner (Appeals)
GST Authority	Interest on GST Demand (Demand Order-90/ ADC/ GST/ 2023-24)	55.24	2017-18 to 202526	Comm Appeal
Central Goods &	GST Demand(Demand Order-92/	19.04	2017-18 to July-	Honble High
Services Tax	ADC/ GST/ 2023-24)(Env & Infra Cess)		21	Court of Bilaspur
Central Goods & Services Tax	Interest on GST Demand	19.35	2017-18 to 202526	Honble High Court of Bilaspur
GST Authority	GST Demand against (ENV & Infra Cess) Aug - 2021 to Mar - 2022	3.97	Aug 2021 to Mar 2022	Honble High Court of Bilaspur
GST Authority	Interest on GST Demand against (ENV & Infra Cess) Aug - 2021 to Mar - 2022	3.01	Aug 2021 to Mar 2026	Honble High Court of Bilaspur
Central Goods & Services Tax	GST Demand	0.30	2019-20	Commissioner (Appeals)
Central Goods & Services Tax	Interest on GST Demand	0.27	2019-20 to 2025-26	Commissioner (Appeals)
Service Tax	ST Order	4.71	Oct 2016 -June 2017	CESTAT
Service Tax	Interest on ST Order	3.27	Oct 2016 -March 2026	CESTAT
District Collector,	Penalty against dispatch of Mineral	1,620.50	April 2024 to	Honble High
Dantewada	Without Railway Transit Pass		Aug 2024	Court of Bilaspur
DONIMALAI Karnataka Forest Act, 1963	Forest Development Tax (Net of amounts paid under protest 139.77 Cr)	383.46	2008-09 to 2010-11	Honble Supreme Court of India
Mines & Minerals Development and Regulations Act	Interest on Royalty	12.25	2009-10 to 2011-12	Honorable High court of Karnataka
Goods & Services Tax	Goods & Service Tax	5.57	2017-18	Honorable High Court of Karnataka
Goods & Services Tax	Goods & Service Tax	276.27	2017-18	Honorable High court of Karnataka
Goods & Services Tax	Goods & Service Tax	169.75	2017- 18, 2018- 19, 2019- 20	Honorable High court of Karnataka
Goods & Service Tax	Goods & Service Tax	157.12	2017-18	Honorable High Court of Karnataka
Goods & Service Tax	Goods & Service Tax	0.65	2020-21	Commissioner of Central tax (Appeal)
Goods & Service Tax	Goods & Service Tax	3.83	2021-22	Commissioner of Central tax (Appeal)
PANNA
Commercial Tax	Sales & Entry tax	0.045	2014-15	DCIT, Sagar
Commercial Tax	Sales & Entry tax	0.23	2013-14	DCIT, Sagar
BACHELI
Nagarpalika, Bacheli	Export tax	1.72	March2010 to March2026	Honble High Court of Bilaspur
Nagarpalika, Bacheli	Interest on Export tax	1.38	March2010 to March2026	Honble High Court of Bilaspur
Nagar Palika, Bacheli	Property Tax on Residential Building Area, Mining Land Area, Consolidated Tax etc	28.62	2015-16	Honble High Court, Bilaspur
Service Tax Authority	Service Tax on Railway Freight Refund	33.57	July, 2012	Service Tax Appellate Tribunal
Service Tax Authority	Interest on Service Tax on Railway Freight Refund	60.89	July, 2012 to March, 2026	Service Tax Appellate Tribunal
GST Authority	Interest on GST for DMF & NMET	9.30	July, 2017 to March, 2026	GST Authority
Goods & Service Tax	Differential GST under RCM on Royalty Charges (Including DMF & NMET) in respect of licensing services for right to use minerals including exploration and evaluation.	130.96	July, 2017 to December, 2018	Honble High Court of Bilaspur
GST Authority	Interest Differential GST under RCM on Royalty Charges (Including DMF & NMET) in respect of licensing services for right to use minerals including exploration and evaluation.	184.66	July, 2017 to March, 2025	Honble High Court of Bilaspur
High Court	Common Cause Notice	705.97	2018-19	Honble High Court of Bilaspur
GST Authority	GST under RCM against payment made towards Infrastructure cess and Environmental cess for the period from July 2017 to June 2021	18.24	July 2017 to July 2021	Honble High Court of Bilaspur
GST Authority	Interest GST under RCM against payment made towards Infrastructure cess and Environmental cess for the period from July 2017 to June 2021	26.12	July 2017 to March 2026	Honble High Court of Bilaspur
GST Authority	GST on CAMPA fund, and other GST matters	1.23	2017 -2019	Commissioner (Appeals) of Central Goods & Service Tax & Central Excise
GST Authority	Interest GST on CAMPA fund, and other GST matters	0.83	From 2017-2018 to 2025-2026	Commissioner (Appeals) of Customs and Indirect Taxes
GST Authority	GST on CAMPA fund	0.36	2020-21	Commissioner (Appeals) CGST, Customs and Central Excise
GST Authority	Interest on GST on CAMPA fund	0.31	2020-21 to 2025-26	Commissioner (Appeals) CGST, Customs and Central Excise
GST Authority	GST on Excess availment of ITC and short payment of GST under RCM on security services	0.87	2019-2020 to 2021-22	Commissioner (Appeals) CGST, Customs and Central Excise
GST Authority	Interest on GST for Excess availment of ITC and short payment of GST under RCM on security services.	1.30	2019-20 to 2025-26	Commissioner (Appeals) CGST, Customs and Central Excise
GST Authority	GST Under RCM on Environmental Infra cess for the Period Aug-2021 to March-2022	4.48	2021-22	Commissioner (Appeals) CGST, Customs and Central Excise
GST Authority	Interest GST Under RCM on Environmental Infra cess for the Period Aug-2021 to March-2022	3.09	2021-22 to 2025-26	Commissioner CGST, Customs Excise (Appeals) and Central
GST Authority	Suppliers of NMDC has not filed their returns, according NMDC is required to reverse the ITC in terms of Section 16(2)(c) of CGST Act, 2017	0.11	2020-21 to 202122	Commissioner CGST, Customs Excise (Appeals) and Central
GST Authority	Interest on Suppliers of NMDC has not filed their returns, according NMDC is required to reverse the ITC in terms of Section 16(2)(c) of CGST Act, 2017	0.05	2020-21 to 2025-26	Commissioner CGST, Customs Excise (Appeals) and Central
GST Authority	Suppliers GSTINs are cancelled, according NMDC is required to reverse the ITC in terms of Section 16(2)(c) of CGST Act, 2017	0.08	2019-20 to 202122	Commissioner CGST, Customs Excise (Appeals) and Central
GST Authority	Interest on Suppliers GSTINs are cancelled, according NMDC is required to reverse the ITC in terms of Section 16(2)(c) of CGST Act, 2017	0.04	2019-20 to 2025-26	Commissioner CGST, Customs Excise (Appeals) and Central
GST Authority	Various issues - (i) Non-payment of tax under RCM on Hiring of motor vehicle (ii) Laptop Buyback ITC reversal - Section 18(6) of CGST Act, 2017 (iii) Short payment of tax on Guest house receipts	0.07	2019- 20 to 2020- 21	Commissioner CGST, Customs Excise (Appeals) and Central
GST Authority	Interest on Various issues - (i) Non-payment of tax under RCM on Hiring of motor vehicle (ii) Laptop Buyback ITC reversal - Section 18(6) of CGST Act, 2017 (iii) Short payment of tax on Guest house receipts	0.04	2019-20 to 2025-26	Commissioner CGST, Customs Excise (Appeals) and Central
RO VIZAG
Service Tax	Demand cum show cause Notice for service Tax on Screening of ore 2007-08 to 2011-12	4.15	2007-08 to 2011-12	Customs, Excise Tax Appellate Tribunal. and Service
Service Tax	Service Tax cases of MMTC for which amount has to be borne by NMDC as per agreement between MMTC & NMDC	4.11	2017-18	Customs, Excise Tax Appellate Tribunal. and Service
Commissioner of Customs	Custom duty cases of MMTC for which amount has to be borne by NMDC as per agreement between MMTC & NMDC	2.67	2021-22	The case is heard by Appellate Authority and the company is in the process of filing with CESTAT, Hyderabad.
Directorate of Revenue Intelligence	DRI cases of MMTC for which amount has to be borne by NMDC as per agreement between MMTC & NMDC	2.87	2012-13	Customs, Excise and Service Tax Appellate Tribunal.
Directorate of Revenue Intelligence	DRI cases of MMTC for which amount has to be borne by NMDC as per agreement between MMTC & NMDC	5.17	2011-12	AP High Court.

viii. The Company has not surrendered or disclosed as income, any transaction not recorded in the books of account, during the year in the tax assessments under the Income tax Act, 1961. Accordingly, reporting under clause 3(viii) of the Order is not applicable to the Company.

ix. a) The Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender during the year.

b) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

c) The Company has not taken any term loan during the year and there are no outstanding term loans at the beginning of the year and hence, reporting under clause 3(ix)(c) of the Order is not applicable to the Company.

d) On an overall examination of the Standalone Financial Statements of the Company, funds raised on short - term basis have, not been utilised during the year for long - term purposes by the company.

e) On an overall examination of the financial statements of the company, 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 as defined under the Act. Accordingly, requirement to report on clause 3(ix)(e) of the Order is not applicable to the Company.

f) The Company has not raised loans during the year on the pledge of securities held in its subsidiaries, associates or joint ventures as defined under the Act. Accordingly, reporting under clause 3(ix)(f) of the Order is not applicable to the Company.

x. a) The Company did not raise any moneys by way of initial public offer or further public offer (including debt instruments) during the year. Accordingly, reporting under clause 3(x)(a) of the Order is not applicable to the Company.

b) The Company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally convertible) during the year. Accordingly, reporting under clause 3(x)(b) of the Order is not applicable to the Company.

xi. a) Except for instances of unauthorised removal and transportation of 280 tonnes of iron ore, estimated at Rs. 0.11 crores, from the KIOM mining lease area that was noticed during the year, as stated in Note no. 2.51.11 to the Standalone Financial Statements, no fraud by the company or on the company has been noticed or reported during the year.

b) There was no reporting under sub section (12) of section 143 of the Companies Act, 2013 in Form ADT-4 as prescribed under Rule 13 of the Companies (Audit and Auditors) Rules, 2014, with the Central Government.

c) There are no whistle blower complaints received by the Company during the year. Accordingly, reporting under clause 3(xi)(c) of the Order is not applicable to the Company.

xii. The Company is not a Nidhi Company. Accordingly, reporting under clause 3(xii)(a) to Clause 3(xii)(c) of the Order is not applicable to the Company.

xiii. All transactions entered into by company with related parties are in compliance with section 177 and 188 of the

Act, wherever applicable and the requisite details have been disclosed in the Standalone Financial Statements, as required by the applicable Indian Accounting Standards.

xiv. a) The Company has an internal audit system commensurate with the size and nature of its business.

b) We have considered the reports of Internal Auditors for the year under audit, issued to the Company during the year and till the date of audit report.

xv. In our opinion and according to the information and explanations given us, the Company has not entered into any non-cash transactions with its directors or persons or persons connected with its directors covered under section 192 of the Act. Accordingly, reporting under clause 3(xv) of the Order is not applicable to the Company.

xvi. a. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, reporting under clause 3(xvi)(a) of the Order is not applicable to the Company.

b. The Company has not conducted any Non-Banking Financial or Housing Finance activities, therefore the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, reporting under clause 3(xvi)(b) of the Order is not applicable to the Company.

c. The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India. Accordingly, reporting under clause 3(xvi)(c) of the Order is not applicable to the Company.

d. In our opinion, there is no core investment company within the Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016. Accordingly, reporting under clause 3(xvi)(d) of the Order is not applicable to the Company.

xvii. Based on our examination of the books and records of the Company, the Company has not incurred cash losses in the current financial year and in the immediately preceding financial year. Accordingly, reporting under clause 3(xvii) of the Order is not applicable to the Company.

xviii. There has been no resignation of the statutory auditors during the year. Accordingly, reporting under clause 3(xviii) of the Order is not applicable to the Company.

xix. On the basis of the financial ratios, ageing and expected date of realization of financial assets and payments of financial liabilities, other information accompanying the financial statements, our knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any 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 date. We however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.

xx. a. In respect of other than ongoing projects, there is no unspent amount which are required to be transferred to a fund specified in Schedule VII of the Act pursuant to second proviso to sub-section (5) of section 135 of the Act. Accordingly, reporting under clause 3(xx)(a) of the Order is not applicable to the Company.

b. In respect of ongoing projects, the Company has transferred unspent amount to a special account within thirty days from the end of the financial year in compliance with the provisions of sub-section 6 of section 135 of the said Act. Refer note no 2.51.10 to the standalone financial statements.

xxi. The reporting under Clause 3(xxi) of the Order is not applicable in respect of audit of Standalone Financial Statements of the Company.

	For VARMA & VARMA
	Chartered Accountants
	FRN 004532S
	K P SRINIVAS
Place: New Delhi	Partner
Date: May 29, 2026	M No. 208520
	UDIN: 26208520HWAQZX4350

ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT

(Referred to in paragraph 2(h) under the heading Report on Other Legal and Regulatory Requirements section of our report to the Members of NMDC Limited of even date on the Standalone Financial Statements for the year ended March 31, 2026)

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 NMDC Limited ("the Company") as of March 31, 2026, in conjunction with our audit of the Standalone Financial Statements of the company for the year ended on that date.

Managements Responsibilities for Internal Financial Controls

The Companys Management is responsible for establishing and maintaining internal financial controls based on the internal controls 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 (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 the respective 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 Responsibilities for the audit of Internal Financial Controls with reference to Standalone Financial Statements

Our responsibility is to express an opinion on the Companys internal financial controls with reference to Standalone Financial Statements of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to Standalone Financial Statements were established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with reference to Standalone Financial Statements and their operating effectiveness. Our audit of internal financial controls with reference to Standalone Financial Statements included obtaining an understanding of internal financial controls with reference to Standalone Financial Statements, 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, and the audit evidence obtained by branch auditor in terms of their reports referred to in the "Other Matters" paragraph below is sufficient and appropriate to provide a basis for our qualified opinion on the Companys internal financial controls with reference to the Standalone Financial Statements.

Meaning of Internal Financial Controls with reference to Standalone Financial Statements

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

Because of the inherent limitations of internal financial controls with reference to Standalone 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 Standalone Financial Statements to future periods are subject to the risk that the internal financial control with reference to Standalone Financial Statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Basis for Qualified opinion

According to the information and explanations given to us and based on our audit and based on the audit report on the audit of the financial statements of the branch, the following material weakness has been identified in the operating effectiveness as at March 31, 2026:

As stated in note no 2.51.11, there were certain lapses relating to movement and dispatch of iron ore through trucks at one of the iron ore mines of the Company and the deficiencies in safeguarding and monitoring controls operating in that mine indicating that there could be a reasonable possibility of the material misstatement in the Standalone financial statements. The remediation measures initiated by the company were in various stages of implementation as at 31st March 2026.

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.

Qualified Opinion:

In our opinion, to the best of our information and according to the explanations given to us and the audit carried out by us, except for the possible effects of the material weakness, relating to one of the iron ore mine, described in the basis for qualified opinion paragraph above, on the achievement of the objectives of the control criteria, the Company has, in all material respects, an adequate internal financial controls with reference to the standalone financial statements in place and such internal financial controls with reference to the standalone financial statements were operating effectively as of March 31, 2026, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal controls 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 weakness 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, 2026, and the material weakness did not affect our opinion on the standalone financial statements of the Company.

Other Matters

Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the Internal financial controls with reference to Standalone Financial Statements of the Company, in so far as it relates to six branches, is based on the corresponding reports of the branch auditors of the Company after considering the requirements of Standard on Auditing (SA 600) on "Using the work of Another Auditor" including materiality.

Our report is not modified in respect of the above matter.

	For VARMA & VARMA
	Chartered Accountants
	FRN 004532S
	K P SRINIVAS
Place: New Delhi	Partner
Date: May 29, 2026	M No. 208520
	UDIN: 26208520HWAQZX4350