State Trading Corporation of India Ltd Auditor Reports

To Members of The State Trading Corporation of India Limited REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS

We have audited the accompanying standalone _nancial statements of The State Trading Corporation of India Limited ( the Company ), which comprise the Balance Sheet as at 31st March, 2025, the Statement of Pro_t and Loss (including Other Comprehensive Income), the statement of changes in Equity and the Standalone Cash Flow Statement for the year then ended, notes to the Standalone _nancial statements including a summary of the signi_cant accounting policies and other explanatory information (hereinafter referred to as The Standalone Financial Statements ).

Quali_ed Opinion

IIn our opinion and various issues as mentioned in the Basis for Quali_ed Opinion paragraphs, the aforesaid Standalone Financial Statements except for the quali_ed opinion give the information required by the Companies Act 2013 ( the Act ) in the manner so required and present 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 ) Rule 2015 as amended, ( Ind AS ) and other accounting principles generally accepted in India, of the state of a_airs of the Company as at 31st March 2025 and its net pro_t and other comprehensive income, changes in equity and its cash _ows for the year ended on that date.

Basis for Quali_ed Opinion

1. Non-Current Assets held for Sale

i. Refer to Note No.4(a) of Standalone Financial Statements, non-availability of title deeds in the name of the company in respect of following properties namely: a) Leasehold Building i. Leasehold land at Jawahar Vyapar Bhawan valued at Rs. 55,929 lacs ii. Leasehold land at Housing Colony at Aurobindo Marg valued at Rs. 12,394 lacs b) Freehold Building i. 8 Residential Flats at Asian Games Village Complex, allotted by DDA amounting to Rs. 2720 lacs ii. 7 apartments in di_erent locations of Mumbai amounting to Rs. 1918 lacs iii. Flats at Ahemdabad Further, lease period for plot at Mallet Bunder, Mumbai Port Trust has already expired and the land has been handed over to Mumbai Port Trust. Surrender certi_cate has been executed on 12.11.2021. But this still continues to be shown as non-current assets held for sale. Thus, non- current assets held for sale has been overstated by Rs. 11.67 lacs. It will also have consequential impact on the Statement of Pro_t and Loss account resulting into overstatement of pro_t by Rs. 11.67 lacs. Further the farm tanks installed at Mallet Bunder amounting to Rs. 14.84 lacs have also been handed over on as is where is basis. The company has not raised any debit note for the same and thus non-current assets are being overstated by Rs. 14.84 lacs.

Further to this, the auction of the STC assets was conducted by MBPT on 11.06.2024 and the assets were ultimately sold for Rs. 355 lacs, with the previously forfeited EMD of Rs. 25 Lacs. STC calculated its total receivables from MBPT at Rs. 418 lacs which includes the sale proceeds, EMD and deposits. STC to set o_ this amount against the Rs. 257 lacs Lease rent payable, (amount yet to be reconciled with MBPT) resulting in a net receivable of Rs. 161 lacs from MBPT. Refer Note 57.

Further, company has not amortized the value of the leasehold properties according to the IND AS 116 for the period expired till 31.03.2025 resulting into overstatement of non-current assets held for sale and consequential impact on pro_t of the company, the amount whereof could not be quanti_ed in absence of complete data from the Company. ii. Refer Note No. 4, for non-adjustment of value/area in Fixed Assets Register against areas acquired by Delhi Metro Rail Corporation (DMRC) for construction of Metro Station & by L&DO for widening of the Road during Asian Games, as well as the _ats/area of land sold by the company to The Handicrafts and Handloom Exports Corporation of India Limited (HHEC) for its Housing colony. Management is in correspondence with DMRC and concerned departments. This has resulted into overstatement of non-current assets held for sale and consequential impact on pro_t of the company, the amount whereof could not be quanti_ed in absence of complete data from the Company.

2. Trade Receivables

All trade receivables amounting to 1,69,710.16 lacs as per Note No. 9 have been outstanding for more than 3 years. The Company has made provision for bad and doubtful debts amounting to Rs. 62,727.62 lacs and another sum of Rs. 1,06,982.54 lacs have been shown as Having Signi_cant increase in credit risk since the same is under litigation. As per

Note No.9, it is explained that no provision has been made for the same since the relevant creditors will be paid only after recovery of these trade receivables, though in most of the cases agreements are not tripartite. Further there has been no recovery during the Financial Year 2024-25 and there is no major update of legal cases which are pending at various forums. Thus trade receivable are not stated at realizable value less cost to be incurred to recover these trade receivables. There is also no balance con_rmation available for these trade receivables as on 31.03.2025 and hence we are unable to comment upon the genuineness and e_ect of the same on the _nancial statements, if any. We are of the view that all trade receivables amounting to 1,69,710.16 lacs are considered doubtful of recovery resulting into short provision for doubtful debts amounting to Rs. 1,06,982.54 lacs. Thus the provision for bad and doubtful debts has been understated by Rs. 1,06,982.54 lacs and consequential impact on the statement of pro_t and Loss account resulting into overstatement of pro_t by Rs. 1,06,982.54 lacs. Further in case of M/s Rajat Pharmaceuticals Ltd (RPL), under note no.39, Pt.No.4, who drew bills of exchange on STC which were accepted upon receipt of overseas buyer s pre-acceptance to STC s bills of exchange. However, the foreign buyers defaulted in making payments against the export bills and have gone into liquidation. A sum of Rs.52786 lacs has been admitted by the liquidator of one of the foreign buyer s i.e. Loben Trading Co. Pte. Ltd, Singapore. A Decree of Rs 6247 lacs approx. has been passed by Hon ble Bombay High Court in favour of STC against the dues from another foreign buyer i.e Sweetland Trading Pte Ltd., Singapore. As of current date, RPL has gone into liquidation and o_cial liquidator is appointed by Hon ble High Court of Bombay. The matter is also under investigation by CBI. Banks & Financial institutions have _led legal suit against RPL before DRT/High Court Mumbai, making STC also a party to the case claiming Rs. 47647 lacs. STC has _led non-money claim suit before di_erent Courts at Delhi & Mumbai for declaring Bills of Exchanges of STC as null and void and unenforceable against STC which were conditionally accepted by STC on back-to-back basis i.e. STC will make payment to Rajat/Banks only upon receipt of export proceeds from the foreign buyers. STC had _led 272 Criminal Complaints u/s 138 of N.I Act in New Delhi in 2009 which were transferred from MM Court, Patiala House District Court, New Delhi to the 33rd MM Court, Ballard Pier, Mumbai. Now the matters have been again transferred to M.M. Court, Mazgaon, Bombay. STC is claiming an amount or Rs.45,635 lacs from M/s Rajat towards cheque bounce. Cases are at the stage of issuing of summons/arguments on issuing of summons.

Also refer to Note No. 39, for matters other than RPL, as all these matters are sub-judice and/or under investigation of CBI and we are unable to comment upon the genuineness and e_ect of the same on the Financial Statements.

3. Foreign Currency Receivables and Payables

Currently, as per books of accounts, USD 3,149.35 lacs and Euros 20.90 lacs is receivable from its foreign buyers and USD 41.49 lacs and Pound 0.04 lacs is payable to its foreign suppliers. In nutshell, there are foreign buyers and creditors standing in the _nancials of STC which have not been revalued in the FY 2024-25.

Thus, the Company has not complied with Ind AS 21 (regarding E_ects of Changes in Foreign Exchange) by not revaluing the carrying amounts, in most cases, of foreign currency receivables and payables, which are under litigation/disputed. Therefore, we are unable to ascertain the potential impact on the _nancial statements, if any.

4. Other Current Assets

i. Refer Note No. 14 - Other Current Assets for non-provisioning in respect of Duties and taxes recoverable, CST (coal) amounting to Rs. 6.89 lacs which is non recoverable and still not written o_. ii. Refer Note No. 11- Other Financial Assets -Claims Recoverable: For non-provisioning in respect of Claims Recoverable o/s since more than 3 years amounting to Rs.3157.74 lacs where no present status is ascertained by the management of the Company and still not written o_.

This is non-compliance of IND AS -36 as no provision has been made for impaired assets.

All these current assets are being re_ected at their carrying amounts instead of on Realization values.

This has resulted into overstatement of Current assets by Rs. 3157.74 lacs and overstatement of pro_t by Rs.3157.74 lacs.

5. Provisions

Refer Note No. 38, for non-provision of a demand of Rs. 4,743 lacs out of total demand received from Land and Development O_ce - New Delhi amounting to Rs. 13,283 lacs (for the period March,2004 to July, 2018) which has resulted in overstatement of pro_t by Rs 4,743 lacs and understatement of liabilities. However, it has been shown as contingent liability. Also, company has not provided for interest accruing on the said demand amount (to be calculated at the rate of 10%) approx. Pro_ts are overstated and liabilities are understated by the amount yet to be ascertained by Management. Director General of Audit has intimated short provision of Rs.75.92 cr towards interest (calculated @10% p.a. on Rs.132.83 cr from 14th July 2018 upto 31st March 2024) which will further cumulate till _nal payment to L&DO. Pro_ts are overstated and liabilities are understated by the amount yet to be ascertained by Management.

Further, Company has not ascertained liability/ provisional liability for Non-compliance of the various conditions of the Lease deed (including non-deposit of 25% of the gross rent received by STC from its tenants) payable to L&DO for the period August 2018 to March 2025, and the interest thereon. Amount is unascertained by the management. Pro_ts are overstated and liabilities are understated by the amount yet to be ascertained by Management.

6. Trade Payables

Refer Note No.21, All the trade payables amounting to Rs. 1,09,654.70 lacs are without any balance con_rmation and are outstanding for more than 3 _nancial years.

No amount is payable to these parties as these are suppliers who have entered into legal agreement with STC wherein no amount is payable to them until and unless the amount is recovered from the buyer. Thus, the management has not accorded any treatment to these trade payables and to that extent, liabilities are overstated.

7. Statutory Dues

GST

Refer Note No.14, The GST input receivable and payable balances are not reconciled by the Company as on March 31,2025. GST input Rs 54.21 lacs - non claimable but no provision has been made. Pro_t of the company is overstated by the same amount.

Tax Deducted at Source

TDS deducted will be reconciled with form 26AS at the time of submitting Income Tax return, as on the date of report the complete information is not available.

No provision has been made for TDS default of Rs 7.29 lacs pending, submission of correction statements

8. Investments (Refer Note No.8)

- STCL Limited (Subsidiary Company) : As con_rmed by STC management Accounts for the FY 2024-25 could not be prepared and hence were not made available for consolidation purpose. As per Reg 33 of SEBI (LODR), 2015, every listed company which is having subsidiary company is required to approve its consolidated _nancial accounts within 60 days from the end of _nancial year, and in case of non-compliance of Reg 33 of SEBI (LODR), 2015, Regulatory penalty will be levied on STC by each of the stock exchanges separately. The availability/recovery of asset and/or write o_ could not be ascertained by the management.

- NSS Satpura Agro Development Company Ltd. (Joint Venture) : The company has been strike o_ as per MCA site. However, still it is appearing in the books of accounts of STC India Limited. The availability/recovery of asset and/ or write o_ could not be ascertained by the management.

- Sea Lac Agro Ventures Limited: The latest _nancials of the JV are not available for veri_cation. The availability/ recovery of asset and/or write o_ could not be ascertained by the management.

- Maharashtra Small Scale Industries Development: The latest _nancials of the JV are not available for veri_cation. The availability/recovery of asset and/or write o_ could not be ascertained by the management.

- Andhra Pradesh Trade Promotion Corporation Limited: The latest _nancials of the JV are not available for veri_cation. The availability/recovery of asset and/or write o_ could not be ascertained by the management.

- Sindhu Resetttlement: The latest _nancials of the JV are not available for veri_cation. The availability/recovery of asset and/or write o_ could not be ascertained by the management.

9. Other Equity (Refer Note No.19):

An amount of Exchange Fluctuation Reserves: Rs.649.53 lacs & Bonus Reserve: Rs.0.33 lacs are appearing in the books of accounts since long. As con_rmed by management, these reserves are created long back and details shall be provided in next _nancial year. We are unable to ascertain its possible impact, if any, on the standalone _nancial statements of the Company.

10. Other Observations

i. Refer Note No. 24, customer at credit includes amount payable to U.P. Government amounting to Rs.603 lacs. As informed by the management, the company has made various other claims on U.P Government and accordingly dues of Rs. 3382.23 lacs is recoverable from U.P. Government for which debit note dated March 10, 2014 was raised. However, the said claim was not recognized in the standalone _nancial statements of the company till date, as its ultimate collection was not certain. In absence of information on acceptability of the said claim by the UP Government, we are unable to ascertain its possible impact, if any, on the standalone _nancial statements of the Company. ii. The impact of the following observations is not ascertainable: - a. Refer to Cases and Disputes and matters under Litigation and amounts covered under Contingent Assets and Contingent Liabilities, since majority of the matters are subjudice, it is not possible to quantify the liabilities and the interest obligation if any on these cases.

Refers to Note No.38, in respect of litigation matters, their present status and provisioning, if any, required and on-going investigations into the alleged irregularities; further, the Company s past operations have exposed it to the risk of extensive litigation and contractual claims from third parties with increased litigation costs not fully provided for. Due to the range of potential outcomes, voluntary retirement of employees dealing with these cases and the signi_cant uncertainty around the resolution of various claims, the amount of ultimate liabilities, if any, to be recorded in the statements as provision is not ascertainable.

b. Refer to Claims recoverable from HHEC & CCIC, co-owner to the property at Jawahar Vyapar Bhawan, who have not paid their share of expenses to STC since last many years amounting to Rs. 2693.54 lacs (Rs. 687.69 lacs for HHEC & Rs.2005.85lacs for CCIC) as on March 31,2025. The matter is said to be under correspondence with HHEC & CCIC.

STC received a demand of Rs. 8,002 Lacs from NDMC during 2016-17 towards property tax for the period from 1999-2000 to 2016-17 and the same has been allocated proportionately to CCIC & HHEC. Out of total demand of Rs. 8,002 Lacs, STC has paid Rs. 2,212 Lacs during 2016-17 against which CCIC has paid its share of Rs. 115 Lacs. However, HHEC has not paid its share, hence provision to the extent of share of HHEC out of payment of Rs. 2,212 Lacs has already been made. The matter was pending at Patiala House Court, Delhi, which has vide its order dated 24.03.2025.

HHEC in pursuance to its Board approval dtd. 29.01.2024 submitted a proposal for surrendering back its share of 4.5% o_ce space in JVB and 64 sta_ quarters at STC housing colony at zero cost to STC in lieu of outstanding dues payable to STC.

Accordingly, STC s Board on 08.08.2024 accorded approval to their o_er and HHEC has handed over second _oor annexe (3,795.21 sq.ft.) out of 12,667sq.ft.to STC on 26.03.2025.

Since separate valuation of the 2nd _oor annex is not available and the total dues pending from HHEC is yet to be reconciled, the necessary accounting entries shall be passed in the books of accounts only upon vacation/ handing of the entire share as mentioned above by HHEC. Refer Note No. 39 c. Borrowings Refer to Note No. 20, the view of the default by the company in paying due to interest amount to the banks, STC was declared NPA. The lender banks have initiated DRT proceedings against the company. The memorandum of the OTS (MOTS) proposal with lender banks is still in progress Borrowings have been re_ected at Rs.80623.24 lacs. Further, STC is in the process of _nalizing the OTS proposal with the lender banks wherein, STC is pursuing alternative course of settlement for payment of Rs. 5,000 lacs upfront and Rs. 625 lacs as monthly instalment for 24 months to lender banks instead of transfer of immovable properties & formal proposal submitted to the lender banks which is under consideration with lender bank. The same has been updated in DRT proceeding & the next date of hearing is 15.07.2025. The amount of liability is subject to _nal settlement / court order/Approval from Board of Director of the company.

NFRA circular dated 28.11.2022, states that interest has to be recognized on its borrowings even if classi_ed as NPA by lender banks and OTS is being negotiated with them. STC is expecting the OTS will be concluded during FY 2025-26. Hence, the appropriate treatment in books shall be done at that time. Impact of OTS proceedings and interest liability on borrowing is not quanti_ed by management

We conducted our audit in accordance with the Standards on Auditing (SAs) speci_ed under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the _nancial statements under the provisions of the Companies Act, 2013 and we have ful_lled our other ethical responsibilities in accordance with these requirements and the ICAI s Code of Ethics.

We believe that the audit evidence we have obtained is su_cient and appropriate to provide a basis for opinion (including the basis for the quali_ed opinion)

Key Audit Matters:

Key audit matters are those matters that, in our professional judgment, were of most signi_cance in our audit of the standalone _nancial statements of the current period. These matters were addressed in the context of our audit of the _nancial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Information Other than the Financial Statements and Auditor s Report thereon

The Company s Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Annual Report on CSR activities, Report on Corporate Governance, Secretarial Auditor s Report Information, but does not include the standalone _nancial statements and our auditor s report thereon. The Management Discussion and Analysis, Annual Report on CSR activities, Report on Corporate Governance, Secretarial Auditor s Report is expected to be made available to us after the date of this auditors report. Our opinion on the standalone _nancial 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 _nancial statements, our responsibility is to read the other information identi_ed above when it becomes available to us and, in doing so, consider whether the other information is materially inconsistent with the standalone _nancial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

When we read such other information as and when made available to us and if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

Other Matters

- Non - compliance of Regulation 33 SEBI (LODR): As per Reg 33 of SEBI (LODR), 2015, every listed company shall publish its Financial Results within 60 days from the end of the last quarter, and in case of non-compliance of Reg 33 of SEBI (LODR), 2015, Regulatory penalty will be levied on The State Trading Corporation of India Limited by each of the stock exchanges separately.

- Statutory Committee: As con_rmed by STC management, the company is unable to re-constitute the Statutory Committees i.e. Audit Committee, Stakeholders Relationship Committee, Nomination & Remuneration Committee, CSR Committee and Risk management Committee due to non-availability of Independent Directors on the Board of the Company

- Secretarial Audit Report is not yet received upto the date of Annual audit.

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

The Company s Board of Directors are responsible for the matters stated in section 134(5) of the Companies Act, 2013 ( the Act ) with respect to the preparation of these standalone _nancial statements that give a true and fair view of the _nancial position, _nancial performance, (changes in equity) and cash _ows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) speci_ed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate implementation and maintenance of accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal _nancial controls, that were operating e_ectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the _nancial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error. Management has prepared these _nancial statements on non-going concern basis as per decision of the Board of Directors.

Board of Directors are also responsible for overseeing the Company s _nancial reporting process. However, it is to point out that there are no Full Time Working Directors in the Company as on 31st March, 2025 and the Company is functioning only with the assistance of Independent Directors and Director (Finance) on Additional Charge.

Auditors Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone _nancial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with 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 in_uence the economic decisions of users taken on the basis of these _nancial statements.

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

- Identi_ed and assessed the risks of material misstatement of the _nancial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is su_cient 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.

- Obtained an understanding of internal _nancial 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 _nancial controls system in place and the operating e_ectiveness of such controls.

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

- Concluded on the appropriateness of management s use of the non-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 signi_cant doubt on the Company s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor s report to the related disclosures in the _nancial 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 auditor s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

- Evaluated the overall presentation, structure and content of the _nancial statements, including the disclosures, and whether the _nancial statements represent the underlying transactions and events in a manner that achieves fair presentation. However the _nancial statements of the Company have been prepared on non-going concern basis as decided by the Board of Directors.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and signi_cant audit _ndings, including any signi_cant de_ciencies 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 signi_cance and importance in the audit of the _nancial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor s report unless law or regulation precludes public 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 bene_ts of such communication.

Report on Other Legal and Regulatory Requirements:

1. As required by the Companies (Auditor s Report) Order, 2020 ( the Order ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanation given to us, we give in the Annexure A a statement on the matters speci_ed in paragraphs 3 and 4 of the Order, to the extent applicable.

2. As required by Section 143(3) of the Act, we report that: i. We have sought and obtained all the information and explanations, except for the matters referred in Basis for Quali_ed Opinion - Impact of which is partly non-ascertainable, which to the best of our knowledge and belief were necessary for the purposes of our audit and if not, the details thereof and the e_ect of such information on the _nancial statements. ii. In our opinion, proper books of account as required by law have been kept by the Company, except for the matters referred in Basis for Quali_ed Opinion , so far as it appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from the company. iii. The Balance Sheet, the Statement of Pro_t and loss including the Statement of Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account. iv. In our opinion, the aforesaid standalone _nancial statements comply with the Indian Accounting Standards, except for the Basis for Quali_ed opinion, speci_ed under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015 as amended. v. The going concern matter described under Material uncertainty in relation to Going Concern paragraph above, in our opinion, may have an adverse e_ect on the functioning of the company. vi. Pursuant to the Noti_cation No. GSR 463(E) dated 5th June 2015 issued by the Ministry of Corporate A_airs, Government of India, provisions of sub-section (2) of Section 164 of the Act are not applicable to the Company, being a Government Company; vii. With respect to the adequacy of the internal _nancial controls over _nancial reporting of the Company and the operating e_ectiveness of such controls, refer to our separate Report in Annexure B . Our report expresses a quali_ed opinion on the adequacy and operating e_ectiveness of the Company s internal _nancial controls over _nancial reporting. viii. Pursuant to the Noti_cation No. GSR 463(E) dated 5th June 2015 issued by the Ministry of Corporate A_airs, Government of India, provisions of Section 197 of the Companies Act, 2013, are not applicable to the Company, being a Government Company; and ix. With respect to the other matters to be included in the Auditor s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us: a. The Company has not been able to disclose the impact of pending litigations on its _nancial position in its _nancial statements, refer note 38 & 39 to the _nancial statements. b. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable pro_ts. c. During the year, the Company has made no transfer to Investor Education and Protection Fund due to heavy accumulated pro_ts. Therefore, question of delay in transferring amounts, required to be transferred, by the Company does not arise. d. i) The Management of the Company , whose _nancial statements have been audited under the Act, have represented to us that, to the best of their knowledge and belief, other than as disclosed in notes to accounts, no funds (which are material either individually or in the aggregate) 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 or entity, including foreign entity ( Intermediaries ) with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether directly or indirectly lend or invest in other persons or entities identi_ed in any manner whatsoever by or on behalf of the Company ( Ultimate Bene_ciaries ) or provide any guarantee, security or the like on behalf of the Ultimate Bene_ciaries. ii) The respective Management of the Company, whose _nancial statements have been audited under the Act, have represented to us that, to the best of their knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ( Funding Parties ) with the understanding, whether recorded in writing or otherwise, that the Company shall, whether directly or indirectly lend or invest in other persons or entities identi_ed in any manner whatsoever by or on behalf of the Funding Party ( Ultimate Bene_ciaries ) or provide any guarantee, security or the like on behalf of the Ultimate Bene_ciaries. (iii) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances performed by us, whose _nancial statements have been audited under the Act, nothing has come to our attention 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. e. There has been no dividend declared during the year. f. According to the information and explanation provided to us and based on our examination which included test checks, the Company have used accounting software (Tally Prime) for maintaining its books of account, which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the respective software. Audit trail at database level is enabled in Tally Software for all the relevant transactions recorded in the software and the audit trail feature has not been tampered. The audit trail has been preserved by the company as per the statutory requirements for record retention at application level and for database level with e_ect from its enablement. According to the information and explanation provided to us and based on our examination which included test checks, Audit trail (edit log) is being maintained at application level and for database level in respect of, Performance Management System , Payroll Software and Leave Management System upto 31.03.2025 which are not interfaced with each other as well as the accounting software. As a result of above, Manual Accounting entries are being made on periodical basis in the Tally ERP Accounting software.

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

For P V A R & ASSOCIATES CHARTERED ACCOUNTANTS FRN No. 005223C

Sd/-

(CA RUCHI AGARWAL)

Partner

Membership No. 504134 UDIN : 25504134BMGZFP6893

Place: New Delhi Date: 13.06.2025

ANNEXURE A TO INDEPENDENT AUDITORS REPORT

Referred to Paragraph 1 under the heading of Report on Other Legal and Regulatory Requirements of Independent Auditor s Report of even date to the members of The State Trading Corporation of India Limited on the Standalone Financial Statements for the year ended 31st March 2025.

(i) a) According to the information and explanation given to us:

A. The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment (Assets held for disposal). B. The company is maintaining proper records showing full Particulars of Intangible Assets (Assets held for disposal) b) The Assets held for disposal have been physically veri_ed by the Company during the year and no material discrepancies were observed in such veri_cation. c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company except for cases as below:

Location	Description	Held in the name of	Audit observations	Gross Block/ Revalued amount ( \u2018 in Crore)	Net Block ( \u2018 in crore)
New Delhi	Lease hold Land at Tolstoy Marg, Jawahar Vayapar Bhawan, New Delhi. Area: 2.599 acres	President of India	Execution of lease deed is pending since 1975. Further, out of total area, physical position of land measuring 714.60 sq mtrs is not now with STC (i.e. 388.91 sq mtrs. acquired by DMRC for construction of Metro and 325.69 sq mtrs. by NDMC for widening of the Road during Asian Game) and value the same has not been uploaded in FAR / FAS. Measurement for area under physical position is yet to be done.	581.88	559.29
New Delhi	STC / MMTC Housing Colony, Aurobindo Marg, New Delhi Area: 16.17 acres	President of India	Execution of lease deed (for 50% share of total land measuring 32.33 acre) allotted for housing colony is still pending. Further, records / details for area given by STC from its own share to HHEC for its housing colony is to be adjusted in the FAR / FAS. Measurement for area under physical position of the company is yet to be done.	125.57	123.94
New Delhi	Flats at AGVC, Khel Gaon Marg, New Delhi. Area: 8 _ats measuring 14424 sq fts	President of India	Execution of lease / conveyance deed is still pending.	27.45	27.20
Mumbai	7 nos. of Flats (refer foot note of note no.4 Area: 7997 sq fts	President of India	Ex\u2019ecution of lease / conveyance deed is still pending.	29.35	19.18
Mumbai	Mallet Bunder Area: 11586.96 sq meters approx.	President of India	Lease deed expired since 2016 and the company has surrendered the plot, certi_cate being executed on 12.11.2021	36.72	11.67

All the aforesaid properties have been held in the name of the promoter i.e. President of India. No valid reason could be provided by the management as to why title deed has not been executed in the name of STC. Also, Original title deeds of 1 Ahmedabad, 18 Mumbai _ats & 2 Kolkata _ats are not available with the company, however photocopies and true copies are available with the company. d) According to the Information and explanations given to us and on the basis of the examination of the record of the Company, the Company has not revalued its Property, Plant and Equipment (now classi_ed as Assets held for disposal or intangible assets or both) during the year.

e) According to the Information and explanation given to us and on the basis of the examination of the record of the Company, no proceedings have been initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(ii) a) According to the information and explanation given to us since the Company does not have any tradeable inventory, this item is not applicable. However, the Company has stock of stationery/Stores and spares, which does not have any signi_cant value and has been physically veri_ed by the Company. b) As per the information and explanations given to us, the company s sanctioned working capital are classi_ed as NPA (non performing asset) by bank and are under legal/OTS proceedings. Company is a non-going concern. Hence, no quarterly returns or statements _led by the company with such banks or _nancial institutions. (iii) As per the information and explanations given to us, during the year, the company has not made investments in, provided any guarantee or security or granted any loans or advances in the nature of loans secured or unsecured to companies, _rms, Limited liability partnerships or any other parties. Accordingly, the provisions of clause 3 (iii) (a) to (e) of the order are not applicable to the company.

(iv) According to the information and explanations given to us, the Company has not given any loans, or made any investments or provided any guarantees or security to the parties covered under sections 185 and 186 of the Act. Accordingly, paragraph 3 (iv) of the Order is not applicable to the Company.

(v) According to the information and explanations given to us, the Company has not accepted any deposits, in terms of the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framed there under. Thus clause (V) of Paragraph 3 of the order is not applicable to the Company.

(vi) We have been explained that the Central Government has not prescribed the maintenance of cost records for the services of the Company under Companies (Cost Records and Audit) Rules, 2014, prescribed by the Central Government under Section 148 (1) of the Companies Act, 2013. Accordingly, this clause of the order is not applicable to the Company. (vii) a) As per the information and explanations given to us, the Company has generally been regular in depositing undisputed statutory dues, including Goods and Service Act, Provident Fund, employees state insurance (ESI), Income-tax, Tax deducted at sources, Tax collected at source, Professional Tax, Custom Duty, Cess and other material statutory dues applicable to it, with the appropriate authorities. b) According to the information and explanations given to us, there were no undisputed amounts payable referred to in sub clause (a) in arrears as at 31 March,2025 for a period of more than six months from the date they became payable.

Details of disputed Income Tax, VAT/Trade Tax, Custom Duty which have not been deposited as on 31st March, 2025 on account of matters pending before the appropriate authorities are as under

Name of Statue	Nature of Dues	Period to which		Forum where dispute is	Amount
		Amount relates		pending	(in crores)
Sales Tax & Custom Duty
Customs Act	Custom Duty	2011-12		CESTAT, Ahmedabad	1.69
Customs Act	Customs	-		Commissioner (Appeals),	0.06
				Mumbai
Custom Act	Custom Duty	2017-18		CESTAT, Chennai	4.16
Sales Tax	Sales Tax	1986-87		Kerala High Court	0.50
Orissa Sales Tax Act	Sales tax	1988-89		Commissioner (Appeals),	0.01
				Orissa
Bihar Sales Tax Act	Sales tax	1989-90		Sales Tax Appellate Tribunal	0.01
Central Sales Tax Act	CST, WB	2003-04		Joint Commissioner, Sales Tax	0.23
West Bengal Vat Act /	WBVAT CST, WB	2011-12		Joint Commissioner,	0.02
Central Sales Tax Act	CST, WB			Commercial Tax
Central Sales Tax Act	Central Sales Tax Act	1993-94		Hon \u2019 ble Assam High Court	0.02
		1994-95
		1995-96
Name of Statue	Nature of Dues		Period to which	Forum where dispute is		Amount
			Amount relates	pending		(in crores)
Maharashtra Sales Tax Act	Sales Tax		1992-93	Maharashtra Sales Tax		0.74
				Tribunal
			1996-97
Maharashtra Sales Tax Act	BST, CST & MVAT		1993-94	Joint Commissioner, Sales Tax		47.69
			2000-01
			2003-04
			2006-07
Maharashtra Sales Tax Act	BST, CST & MVAT		2004-05	Joint Commissioner, Sales Tax		390.36
			2009-10
			2011-12
Maharashtra Sales Tax Act	TDS on Work Contract		2012-13	Sales Tax Appellate Tribunal,		0.21
				Mumbai
TNGST/AST/CST	Sales Tax		1974-75, 1975-	Hon \u2019 ble Madras High Court		0.83
			76, 1985-86 to
			1987-88, 1989-
			90 & 1991-92
Service Tax
Finance Act, 1994	Service Tax		2005-06 -	CESTAT (Stay Granted)		7.29
			2006-07
Finance Act, 1994	Service Tax		01.04.2012-	CESTAT		4.37
			31.03.2015
Finance Act, 1994	Service Tax		2007-08 -	CESTAT		6.02
			2016-17
Finance Act, 1994	Service Tax		01.04.2011-	Service Tax Appeallate		0.13
			31.03.2012	Tribunal
Finance Act, 1994	Service Tax		01.10.2004-	Supreme Court, Delhi		16.54
			31.03.2011
Finance Act, 1994	Service Tax		01.04.2015-	Joint Commissioner of CGST &		1.24
			30.06.2017	Central Excise Mumbai
Income Tax
Income Tax Act,1961	Income Tax		2021-22	CIT(A)		3.36
Certi_cate Dues Liability
BPDRA	Certi_cate Dues		1971-72,1976-77	Concerned Department		0.0633
	Liability		to 1978-79

(viii) According to the information and explanations given to us, the Company does not have any transactions to be recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

(ix) a) In our opinion and according to the information and explanations given to us, the company has defaulted in repayments of loans/borrowings to Bank (Refer Note No.20 & Basis of quali_ed opinion section of our audit report). However, the company has outstanding loans/ borrowing from _nancial institutions but not from Government or dues to debenture holders.

Lender-wise details of sum defaulted by company & period of default is as follows-

Name of Banks	Amount of Instalments and interest overdue*	Period of Default as on 31.03.2025 (in days)
Syndicate Bank	280.71	2556 Days
Indian Overseas Bank	188.02	2556 Days
Union Bank of India	140.72	2587 Days
Indian Bank	94.81	2587 Days
Exim Bank	74.43	3103 Days
Bank of Baroda	26.27	2475 Days
UBI (Kumily)	1.28	2587 Days
TOTAL	806.24**

* Interest overdue is booked upto 31.12.2018

** Amount crystallized with lender banks vide lead Bank letter dated Jun 27, 2019. b) According to the information and explanations given to us, the company is not declared willful defaulter by any bank or _nancial institution or other lender. c) According to the information and explanations given to us, no fresh term loans were obtained during the year. d) According to the information and explanations given to us, no funds raised during the year. e) According to the information and explanations given to us, the company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries, associates or joint ventures f) According to the information and explanations given to us, the company has not raised any loans during the year on the pledge of securities held in its subsidiaries, joint ventures or associate companies. (x) Based upon the audit procedures performed and the information and explanations given by the management, a) the company has not raised moneys by way of initial public o_er or further public o_er including debt instruments during the year. Accordingly, the provisions of clause 3 x(a) of the Order are not applicable to the Company and hence not commented upon. b) According to the information and explanations given to us, and based on our examination of the records of the Company, 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, the provisions of clause 3 x(a) of the Order are not applicable to the Company and hence not commented upon. (xi) a) According to the information and explanations given to us and as represented by the management and based on our examination of the books and records of the Company and in accordance with generally accepted auditing practices in India, frauds by the ex-employees of the Company have been noticed which are in litigation since last few years. We are informed that there are 10 cases _led since last few years at various forums by CBI and other bodies involving fraud perpetuated by Sta_ of STC on others. No amount has been quanti_ed by the Management as these cases are said to be subjudice. b) According to the information and explanations given to us, no report under sub-section (12) of section 143 of the Companies Act has been _led in Form ADT-4 as prescribed under rule 14 of Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and upto the date of this report. c) According to the information and explanations given to us, No whistle blower complaints have been noticed to be received by the Company during the year.

(xii) According to the information and explanations given to us, The Company is not a Nidhi Company and hence Nidhi Rules,2014 are not applicable to the company. Therefore paragraph 3(xii) of the Order is not applicable to the Company.

(xiii) According to the information and explanations given to us, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standard. (Refer Note No.47)

(xiv) a. According to the information and explanations given to us, the company has an internal audit system commensurate with the size and nature of its business. b. The reports of the Internal Auditor for the period under audit were considered by us.

(xv) As per records of the company and according to information and explanations given to us by the management, the company has not entered into any non-cash transactions with directors or persons connected with them & hence the above clause is not applicable.

(xvi) a) According to the information and explanations given to us, the company is not required to be registered under section 45-IA of Reserve Bank of India Act,1934. b) According to the information and explanations given to us, the company has not conducted any Non-Banking Financial or Housing Finance activities. c) According to the information and explanations given to us, the company is not a Core Investment Company (CIC) as de_ned in the regulations made by the Reserve Bank of India. d) According to the information and explanations given to us, company is not part of any Group, Hence Clause 3 xvi (d) of the order is not applicable.

(xvii) According to the information and explanations given to us, the Company has not incurred cash loss during the _nancial year and in the immediately preceding _nancial year (xviii) According to the information and explanations given to us, there is no resignation of the statutory auditors during the year.

(xix) According to the information and explanations given to us,, Since the company has ceased its business operations and prepared the _nancial statements on a non-going concern basis, material uncertainty exists as on the date of audit report. There are a number of legal cases regarding trade receivables & trade payables and also the borrowings from bank amounting to Rs.80,623 lacs which are NPAs since long indicating that the Company is not capable of meeting its liabilities existing at the date of Balance Sheet as and when they fall due within a period of one year from the Balance Sheet date.

(xx) a) According to the information and explanations given to us, in respect of other than ongoing projects, the company had transferred unspent amount to a Fund speci_ed in Schedule VII to the Companies Act within a period of six month of the expiry of the _nancial year in compliance with second proviso to sub-section (5) of section 135 of the said Act. b) According to the information and explanations given to us, there was no amount remaining unspent under sub-section (5) of section 135 of the Companies Act, pursuant to any ongoing project.

(xxi) According to the information and explanations given to us, this CARO Report is issued in respect of standalone _nancial statement. Hence, clause 3 xxi of the order is not applicable.

For P V A R & ASSOCIATES

CHARTERED ACCOUNTANTS FRN No. 005223C

Sd/-

(CA RUCHI AGARWAL)

Partner

Membership No. 504134 UDIN: 25504134BMGZFP6893

Place: New Delhi Date: 13.06.2025

Annexure B to INDEPENDENT AUDITOR S REPORT

Referred to Clause (vii) of Paragraph 2 under the heading of Report on Other Legal and Regulatory Requirements of Independent Auditor s Report of even date to the members of The State Trading Corporation of India Limited on the Standalone Financial Statements for the year ended 31st March 2025.

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

We have audited the internal _nancial controls over _nancial reporting of The State Trading Corporation of India Limited ( the Company ) as of March 31, 2024 in conjunction with our audit of the standalone _nancial statements of the Company for the year ended on that date.

Management s Responsibility for Internal Financial Controlss

The Company s management is responsible for establishing and maintaining internal _nancial controls based on the internal control over _nancial 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 _nancial controls that were operating e_ectively for ensuring the orderly and e_cient conduct of its business, including adherence to company s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable _nancial information, as required under the Companies Act, 2013.

Auditors Responsibility

Our responsibility is to express an opinion on the Company s internal _nancial controls over _nancial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the Guidance Note ) 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 _nancial 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 _nancial controls over _nancial reporting was established and maintained and if such controls operated e_ectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal _nancial controls system over _nancial reporting and their operating e_ectiveness. Our audit of internal _nancial controls over _nancial reporting included obtaining an understanding of internal _nancial controls over _nancial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating e_ectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the _nancial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is su_cient and appropriate to provide a basis for our audit opinion on the Company s internal _nancial controls system over _nancial reporting

Meaning of Internal Financial Controls over Financial Reporting

A company s internal _nancial control over _nancial reporting is a process designed to provide reasonable assurance regarding the reliability of _nancial reporting and the preparation of _nancial statements for external purposes in accordance with generally accepted accounting principles. A company s internal _nancial control over _nancial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly re_ect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of _nancial 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 un-authorized acquisition, use, or disposition of the company s assets that could have a material e_ect on the _nancial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting (IFCFR)

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

Basis for Quali_ed Opinion

a) Company is maintaining Performance Management System , Payroll Software and Leave Management System which are not interfaced with each other as well as the accounting software. As a result of above, Manual Accounting entries are being made on periodical basis in the Tally Prime, Accounting software used by company. b) Lack of e_ective scrutiny of accounting ledgers as far as o/s liabilities/Claims recoverable/Security Deposits is seen as they are not updated. c) Manner of maintenance of Fixed Assets Schedule & register (Assets Held for Sale) need to be strengthened. d) Lack of proper contract management is noticed. Irrespective of completion of contracts the EMD/Security deposits are still being withheld in the books by the company. e) Lack of control over the renewal of Rent/lease Agreements on timely basis. There are numerous of agreements which have not been renewed over a long period. f) Ine_ective implementation of accounting policy in balance con_rmation of trade receivable & vendor balance, is noticed. The balances outstanding in the trade receivable account cannot be reconciled in customers books as balance con_rmations are not obtained and available for these customers. g) As there are no proper Full Time working Directors in the Company, and there is also lack of Senior management personnel in the Company, all decisions and matters requiring immediate attention are kept on hold and there is ine_ective management control in the Company.

A material weakness is a de_ciency, or a combination of de_ciencies, in internal _nancial control over _nancial reporting, such that there is a reasonable possibility that a material misstatement of the Company s annual or interim _nancial statements will not be prevented or detected on a timely basis.

Quali_ed Opinion

In our opinion, (including the basis for the quali_ed opinion) the Company has, except for e_ects of the material weaknesses described above on achievement objectives of the control criteria, in all material respects, an adequate internal _nancial controls system over _nancial reporting and such internal _nancials controls over _nancial reporting were operating e_ectively as at 31st March, 2025, based on the internal control over _nancial 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, to the extent possible, considered the material weaknesses identi_ed and reported above in determining the nature, timing, and extent of audit tests applied in our audit of the March 31, 2024 standalone _nancial statements of the Company, and these material weaknesses are not likely to a_ect our opinion on the standalone _nancial statements of the Company.

For P V A R & ASSOCIATES
CHARTERED ACCOUNTANTS
FRN No. 005223C
Sd/-
(CA RUCHI AGARWAL)
Partner
Membership No. 504134
UDIN: 24504134BKEGUE9821
Place: New Delhi
Date: 13.06.2025

Annexure- C to the INDEPENDENT AUDITORS REPORT

Referred to Paragraph 3 under the heading of Report on Other Legal and Regulatory Requirements of Independent Auditor s Report of even date to the members of The State Trading Corporation of India Limited on the Standalone Financial Statements for the year ended 31st March 2025.

1. Whether the company has system in place to process all the accounting transactions through IT SystemRs If yes, the processing of accounting transactions outside IT system on the integrity of the accounts along with the _nancial implications, if any, may be stated.	Company is maintaining \u201c Performance Management System \u201d , Payroll Software and \u201c Leave Management System \u201d which are not interfaced with each other as well as the accounting software. As a result of above, Manual Accounting entries are being made on periodical basis in the Tally ERP Accounting software.
2. Whether there is any restructuring of an existing loan or cases of waiver/write o_ of debts/ loans/ interest etc., made by the lender to the company due to company \u2019 s inability to repay the loanRs If yes, the _nancial impact may be stated. Whether such cases are properly accounted forRs (In case, lender is a Government company, then this direction is also applicable for statutory auditor of lender company).	There is no restructuring of an existing loan or cases of waiver/write o_ of debts/ loans/ interest etc., made by the lender to the company due to company \u2019 s inability to repay the loan. The company is in the process of _nalizing the OTS proposal with the lender banks and the amount crystalized with the Joint Lender Forum (JLF) is RS. 1,90,624 lacs as on 31.12.2018. A part payment of Rs 110000 lacs has already been made to Canara bank (e-Syndicate Bank), The leader of JLF on 29.03.2019(Rs. 90,000 lacs) and on 27.05.2019 (Rs. 20,000 lacs). The leader of JLF has withdrawn the NCLT proceeding against STC on 11.12.2019. Further, the company is in the process of _nalizing the OTS proposal with the lender banks wherein, STC is pursuing alternative course of settlement for payment of Rs. 5,000 lacs upfront and Rs. 625 lacs as monthly instalment for 24 months to lender banks instead of transfer of immovable properties & formal proposal submitted to the lender banks which is under consideration with lender bank. The same has been updated in DRT proceeding & the next date of hearing is 15.07.2025. NFRA circular dated 28.11.2022, states that interest has to be recognized on its borrowings even if classi_ed as NPA by lender banks and OTS is being negotiated with them. STC is expecting the OTS will be concluded during FY 2025-26. Hence, the appropriate treatment in books shall be done at that time. Impact of OTS proceedings and interest liability on borrowing is not quanti_ed by management Refer Note No.20 to the standalone _nancial statements for further details
3. Whether the fund received/receivable for speci_c schemes from Central/State agencies were properly accounted for/ utilized as per its terms and conditionRs List the cases of deviation.	As per information & explanation given to us, the Company has not received any fund under any scheme of the Central/State Government during the year under report.

For P V A R & ASSOCIATES
CHARTERED ACCOUNTANTS
FRN No. 005223C
Sd/-
(CA RUCHI AGARWAL)
Partner
Membership No. 504134
UDIN: 24504134BKEGUE9821
Place: New Delhi
Date: 13.06.2025