Vishnusurya Projects and Infra Ltd Auditor Reports

To the Members of Vishnusurya Projects and Infra Limited

REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS

OPINION

We have audited the accompanying standalone financial statements of Vishnusurya Projects and Infra Limited ("the Company") which comprise the Standalone Balance

Sheet as at March 31,2026, the Standalone Statement of

Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows for the year then ended, and notes to the standalone financial statements, including a summary of material accounting policy information and other explanatory information (together, "the standalone financial statements"). As required under Ind AS 101,

First-time Adoption of Indian Accounting Standards, these financial statements include comparative information and an opening Ind AS Balance Sheet as at April 1, 2024, being the Companys date of transition to Ind AS, together with the related reconciliations described in Note 43 Inouropinionandtothebestofourinformationandaccording 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 accounting principles generally accepted in India, including the Indian Accounting Standards ("Ind AS") specified under section 133 of the Act, of the state of affairs of the Company as at March 31, 2026, its total comprehensive income (comprising profit and other comprehensive income), its changes in equity and its cash flowsfor the year then ended.

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 thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained 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.

1. Revenue recognition, measurement and disclosures in respect of EPC and allied activities, including contract assets
The Key Audit Matter	The Company undertakes engineering, procurement and construction ("EPC") and allied activities under contracts with customers. Revenue recognition under such contracts involves significant management judgment, particularly in relation to satisfaction of performance obligations, measurement of progress, estimation of costs to complete, recognition and recoverability of contract assets, contract variations and cut-off.
	The matter was considered to be one of the matters of most significance in our audit due to the magnitude of revenue and contract assets/unbilled revenue and the degree of management judgment involved in determining the timing and amount of revenue to be recognized. As at March 31, 2026, unbilled revenue amounted to 5509.49 lakhs
How we addressed the matter in our audit	Our audit procedures included, but were not limited to, the following:
	1. Evaluated the Companys accounting policy for revenue recognition with reference to Ind AS 115, Revenue from Contracts with Customers.
	2. Obtained an understanding of the systems, processes and internal controls over the recognition and measurement of revenue and associated contract assets.
	3. For selected contracts, we
	• Examined evidence supporting work execution and completion and assessed whether the identified performance obligations had been satisfied in accordance with the contractual terms.
	• Assessed the measurement of progress towards satisfaction of performance obligations, including evaluating costs incurred to date against managements estimates of total contract costs.
	• Compared actual costs incurred with managements estimates and assessed the reasonableness of estimated costs to complete selected contracts
	• Examined supporting documentation for contract assets, including unbilled revenue, and assessed their recoverability.
	• Assessed the expected credit loss allowance on contract assets and related trade receivables, where applicable.
	• Performed cut-off procedures around the reporting date.
	• Obtained confirmations from selected customers or other corroborative evidence regarding work performed and completion of performance obligations, where considered necessary
	• Compared subsequent billings, collections and other post year-end developments with amounts recognised as revenue and contract assets at the reporting date and assessed relevant subsequent events.
	4. Assessed the adequacy of the related disclosures in the standalone financial statements with reference to the requirements of Ind AS 115.

 

2. Existence and Valuation of Inventory at Mining Sites
The Key Audit Matter	The Company holds inventory comprising boulders, crushed rock, gravel, sand and construction materials at its mining sites. The quantities are held in bulk stockpiles and their determination involves physical measurement, stockpile surveys and estimation. The continuous extraction, production and movement of such materials increase the risk of material misstatement in the determination of quantities, recording, cut-off and valuation of inventory.
	The matter was considered to be one of the matters of most significance in our audit due to the magnitude of inventory held at mining sites, the inherent challenges in physically measuring bulk stockpiles and the judgment involved in determining quantities and assessing the valuation of inventory, including its net realisable value.
How we addressed the matter in our audit	Our audit procedures included, but were not limited to, the following:
	1. Obtained an understanding of the Companys processes and controls relating to inventory recording, physical measurement of stockpiles, quantity determination, reconciliation and valuation
	2. Attended physical verification of inventory at selected mining sites and observed the procedures followed by management for measurement and determination of stockpile quantities.
	3. Tested selected inventory quantities to supporting records, physical verification statements and underlying stockpile measurement/survey records and evaluated the reconciliation of physical quantities with the inventory records.
	4. Evaluated controls over inventory measurement and stockpile survey procedures, including procedures for quantity estimation, and controls over recording and reconciliation of extraction, production and sales data
	5. Tested inventory movements and sales around the reporting date to assess the appropriateness of cut-off
	6. Assessed the valuation of inventory with reference to the applicable requirements of Ind AS 2 and
	7. Assessed the adequacy of the related disclosures in the standalone financial statements with reference to the requirements of Ind AS 2

 

3. Taxation and Litigation Exposures
The Key Audit Matter	Taxation exposures were identified as a key audit matter due to the complexity involved in evaluating the outcome of significant tax proceedings, the extended timescales involved in their resolution and the potential financial impact on the standalone financial statements. Significant management judgement is involved in assessing the merits and potential financial exposure arising from these matters, including the status and developments in ongoing proceedings. As at March 31, 2026, the Company has disclosed income tax exposures aggregating to 734.84 lakhs (March 31, 2025: 2,098.19 lakhs), comprising 660.61 lakhs in respect of matters pending before the Honble Madras High Court and 74.23 lakhs relating to other income tax demands. Given the magnitude of the exposures and the judgement involved in assessing these matters, they required significant auditor attention and were considered to be one of the matters of most significance in our audit Refer Note 41 of standalone financial statements for disclosures relating to pending tax and legal exposures.
How we addressed the matter in our audit	Our audit procedures included, but were not limited to, the following:
	1. Obtained an understanding of the process for identifying, evaluating and accounting for claims, litigations and contingent liabilities and tested relevant key controls.
	2. Obtained and reviewed summaries of significant legal and tax cases, assessed managements judgements regarding the potential exposure and corroborated the status and developments of significant matters with relevant supporting documentation, including assessment/appellate orders and court proceedings, as applicable
	3. Evaluated the developments during the year relevant to significant tax and legal matters, including the basis for changes in the estimated exposure, where applicable
	4. Reviewed the legal and other professional expenses and enquired with the management for recent developments and the status of the material litigations which were reviewed
	5. Examined external legal opinions, where available and considered relevant, and other supporting evidence to evaluate managements assessment of the potential financial exposure and the related accounting and disclosures.
	6. Assessed the competence and objectivity of the Companys experts
	7. Assessed the relevant disclosures made within the Standalone financial statements to address whether they reflect the facts and circumstances of the respective tax and legal exposures and the requirements of relevant Indian accounting standards

 

4. First-time adoption of Indian Accounting Standards (Ind AS)
The Key Audit Matter	The Company has prepared its standalone financial statements in accordance with Indian Accounting Standards (Ind AS) for the first time for the year ended March 31, 2026, with April 1,2024 as the date of transition to Ind AS. The Company has prepared an opening Ind AS Balance Sheet as at the date of transition and has applied the applicable mandatory exceptions and optional exemptions prescribed under Ind AS 101, First-time Adoption of Indian Accounting Standards.
	The transition from Previous GAAP to Ind AS involved significant accounting and measurement adjustments, including the application of the fair value as deemed cost election for land, accounting for leases, measurement of financial instruments, remeasurement of post-employment benefit obligations and the related tax effects. The first-time adoption process also involved the classification and measurement of eligible unquoted strategic equity investments at fair value through other comprehensive income (FVOCI) in accordance with Ind AS 109, Financial Instruments.
	We considered the first-time adoption of Ind AS to be a key audit matter because the transition involved significant auditor attention in evaluating the Companys application of Ind AS 101 and other applicable Ind AS, assessing the accounting treatment and measurement of significant transition adjustments, including the fair value as deemed cost of land, leases, financial instruments, post-employment benefits and related deferred tax, and evaluating the related reconciliations and disclosures.
	Refer to Note 43 to the standalone financial statements
How we addressed the matter in our audit	Our audit procedures included, among others, the following:
	1. We obtained an understanding of the process followed by the Company for transition from Previous GAAP to Ind AS and evaluated the relevant controls over the preparation of the opening Ind AS Balance Sheet and the determination of transition adjustments.
	2. We evaluated the accounting policies adopted by the Company on transition to Ind AS and assessed their compliance with the requirements of Ind AS 101 and other applicable Ind AS.
	3. We assessed the applicability and appropriateness of the mandatory exceptions and optional exemptions applied by the Company under Ind AS 101, including the application of the fair value as deemed cost election for land.
	4. We examined the opening Ind AS Balance Sheet as at April 1, 2024 and tested significant transition adjustments, including those relating to land, leases, financial instruments, post-employment benefits and the related deferred tax.
	5. In respect of eligible unquoted strategic equity investments, we assessed their classification and measurement under Ind AS 109 and evaluated the valuation methodology and supporting information used to determine their fair values, including the relevant valuation inputs for unquoted investments.
	6. For lease-related transition adjustments, we assessed the Companys identification of leases and the recognition and measurement of the related right-of-use assets and lease liabilities in accordance with Ind AS 116, Leases.
	7. For post-employment benefits, we evaluated the measurement of the defined benefit obligation and the related actuarial remeasurements recognised in other comprehensive income with reference to the actuarial valuation report and the requirements of Ind AS 19, Employee Benefits.
	8. We evaluated the computation of deferred tax arising from the transition adjustments and assessed the related recognition and presentation in accordance with Ind AS 12, Income Taxes.
	9. We tested the reconciliation of equity between Previous GAAP and Ind AS as at April 1,2024 and March 31,2025, including the underlying supporting workings. The financial statements disclose Ind AS equity of 14,949.50 lakhs at April 1, 2024 compared with Previous GAAP equity of 13,137.50 lakhs, and Ind AS equity of 17,737.76 lakhs at March 31, 2025 compared with Previous GAAP equity of 15,820.32 lakhs.
	10. We tested the reconciliation of profit and other comprehensive income for the year ended March 31, 2025 and assessed whether the adjustments were appropriately supported and consistently reflected in the comparative financial statements.
	11. We assessed the adequacy and completeness of the disclosures relating to first-time adoption of Ind AS, including the transition date, exemptions and exceptions applied, significant transition adjustments and the related reconciliations, with reference to the requirements of Ind AS 101.

OTHER MATTER

The standalone financial statements of the Company for the year ended March 31, 2024, which form the basis for the corresponding figures and the opening balances included in these standalone financial statements, were audited by the predecessor auditor, whose report dated

May 23, 2024 expressed an unmodified opinion on those financial statements. Those financial statements were prepared in accordance with the Accounting Standards specified under section 133 of the Companies Act, 2013, read with the Companies (Accounting Standards) Rules, 2021, as applicable for that year. In connection with the Companys transition to Indian Accounting Standards (Ind AS), we have placed reliance on the audit work performed by the predecessor auditor on the financial statements for the year ended March 31, 2024, for the purposes of the corresponding figures and opening balances, and have performed audit procedures on the adjustments to the corresponding figures and opening balances arising from the transition to Ind AS, as considered necessary in accordance with the applicable Standards on Auditing.

Our opinion is not modified in respect of this matter.

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 Companys Annual Report but does not include the standalone financial statements and our auditors report thereon. The Management Discussion and Analysis and Boards report, along with its annexures, 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 Management Discussion and Analysis and Boards report, 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 action as required under the applicable laws and regulations.

RESPONSIBILITY OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE STANDALONE FINANCIAL STATEMENTS

The Companys Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified 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 the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. In preparing the standalone financial statements, the 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 the 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 this standalone financial statement.

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 control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls 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 on the conditions that may cast significant 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 includingtiming of the audit and significant that weany significant 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.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditors Report) Order,

2020 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the "Annexure A" a statement on the matters specified in to the extent applicable.

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

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

b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books

c) The Standalone Balance Sheet, the Standalone

Statement of Profit and Loss(including other comprehensive income), the statement of changes in equity and the Standalone Statement of cashflows dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.

e) On the basis of the written representations received from the Directors as on March 31, 2026, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2026 from being appointed as a director in terms of Section 164(2) of the Act.

f) With respect to the maintenance of accounts and other matters connected therewith, reference is made to our remarks in paragraph 2(b) above on reporting under Section 143(3)(b) and paragraph 2(i)(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014, as amended.

g) With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".

h) 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, in our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not p r e s c r i b e d other details under Section 197(16) of the Act which are required to be commented upon by us.

i) 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, as amended, 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 the pending litigations on its financial position in Standalone financial statements Refer note 41 to the standalone financial statement

ii. The Company did not have any long-term contracts, including derivative contracts for which there were any material foreseeable losses.

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

iv. The Management has represented that, to the best of its knowledge and belief.

a) 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 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, 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 identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or

• Provide any guarantee, security or the like on behalf of the Ultimate

Beneficiaries;

c) Based on the audit procedures carried out 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 sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement

v. The dividend declared and paid during the year by the Company is in compliance with Section 123 of the Act.

vi. Based on our examination, which included test checks, the Company has used accounting software for maintaining its books of account, including Tally Prime and Quarry King, which have a feature of recording audit trail (edit log), and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit, we did not come across any instance of the audit trail feature having been tampered with. The audit trail has been preserved by the Company as per the statutory requirements for record retention.

"ANNEXURE A"TO THE AUDITORS REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal & Regulatory Requirement of our report of even date on the standalone financial statements of the Company for the year ended March 31, 2026)

1) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment. The Company does not hold any intangible assets as at the balance sheet date and accordingly, reporting under Clause 3(i)(a) of the Order in respect of intangible assets is not applicable.

(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has of a regular programme of physical verification its Property, Plant and Equipment, which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, the Property, Plant and Equipment were physically verified by the management during the year and no material discrepancieswerenoticedonsuchverification by

(c) Based on our examination of the registered sale deeds provided to us and according to the information and explanations given to us, the title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the standalone financial statements are held in the name of the Company as at the balance sheet date. In respect of immovable properties where the original title deeds are held by the bank as security for borrowings, we relied on the confirmation received from the bank in respect of the said title deeds.

(d) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not revalued any of its Property, Plant and Equipment, including Right-of-Use assets, during the year. The Company does not hold any intangible assets. Accordingly, reporting under Clause 3(i)(d) of the Order is not applicable to the Company.

(e) According to the information and explanations given to us, there are no proceedings initiated or pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.

2) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the inventory has been physically verified by the management during the year at reasonable intervals. In our opinion, the coverage and procedure of such verification management are appropriate having regard to the size of the Company and the nature of its business. The discrepancies noticed on such verification between the physical stocks and the book records were not 10% or more in the aggregate for each class of inventory and have been properly dealt with in the books of account.

(b) The Company has been sanctioned working capital limits in excess of 5 crore, in aggregate, from banks on the basis of security of current assets. The quarterly returns or statements filed by the Company with such banks during the year are not in agreement with the books of account of the Company in respect of certain particulars, the details of which are as follows: (Amount in lakhs)

Quarter	Particulars	As per Books	As per Quarterly Statement submitted to Bank	Difference
Jun-25	Inventory	69.04	96.34	(27.30)
	Trade receivables	3,494.87	3,548.06	(53.19)
	Trade payables	655.24	850.05	(194.81)
Sep-25	Inventory	180.32	270.84	(90.52)
	Trade receivables	4,143.29	4,182.64	(39.35)
	Trade payables	1,795.92	1,974.65	(178.73)
Dec-25	Inventory	61.83	94.99	(33.16)
	Trade receivables	3,482.61	3,608.57	(125.96)
	Trade payables	1,236.66	1,217.81	18.85
Mar-26	Inventory	51.39	51.47	(0.08)
	Trade receivables	4,579.96	4,740.31	(160.35)
	Trade payables	2,025.45	2,140.86	(115.41)

The statements submitted to the Bank comprise only of current assets pertaining to the Vandavasi and Hosur Mining Unit and

EPC Division. Accordingly, they do not match the total current asset balances as per the standalone financial statements. The details of the differences between the quarterly returns/statements submitted to the banks and the books of account are as follows. The reasons for the differences are disclosed in Note 34(b) to the standalone financial statements

3) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, during the year, the Company has not made any investments, provided guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured to companies, firms, limited liability partnerships or any other parties, except as stated below.

Particulars	To wholly owned subsidiary	To Joint Ventures/ Joint controlled entities	To others
1. Loans or advances in the nature of loans
Aggregate amount granted/ provided during the year	1285.00	NIL	65.41
Balance outstanding (gross) as at balance sheet date in respect of the above cases	2110.00	NIL	290.85
2. Equity Investments made
Aggregate amount invested during the year	1.00	1.00	NIL
Balance of investments as at balance sheet date	2.00	1.00	1174.10
3. Provided Security	2475.00*	NIL	NIL
4. Provided Guarantee
- Corporate Guarantee	233.00*	NIL	NIL

* Issued corporate guarantee and provided immovable property as security against term loan Rs 2475 lakhs and issued corporate guarantee for overdraft facility Rs 25 lakhs and for Machinery Loan Rs 208 lakhs

(b) In our opinion and according to the information and explanations given to us, the terms and conditions of the above loans/advances in the nature of loans (including the interest-free, on-demand loan to the wholly-owned subsidiaries) and guarantees provided, and the terms and conditions of the security given and investments made, during the year are not, prima facie, prejudicial to the Companys interest, having regard to the purpose of the transaction and the related-party relationship.

(c) In respect of loans and advances in the nature of loans, the agreements relating to the loans granted to other parties stipulate payment of interest at 9% per annum on a quarterly basis and provide for repayment of the principal amount on demand.

The loan of 2,110.00 lakh granted to wholly owned subsidiaries is interest-free and repayable on demand. Accordingly, in respect of these loans, fix schedule for repayment of principal has no been stipulated. In the absence of a stipulated repayment schedule, we are unable to comment on the regularity of repayment of principal. The interest stipulated in respect of the loan to other parties is being received regularly, as applicable.

(d) In respect of loans and advances in the nature of loans, since the agreements do not stipulate any specific repayment schedule for the principal amount and the loans are repayable on demand, there were no amounts that had fallen overdue for more than ninety days as at the balance sheet date.

(e) According to the information and explanations given to us and on the basis of our examination of the records of the Company, during the year, there is no loan or advance in the nature of loan granted which has fallen due during the year, has been renewed or extended or fresh loans granted to settle the overdues of existing loans given to the same parties.

(f) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not granted any advances in the nature of loans, secured or unsecured either repayable on demand or without specifying any terms or period of repayment to Promoters, related parties as defined in clause (76) of section 2 of the Act except as stated below:

Particulars	Amount (in lakhs)
Aggregate amount of loans/ advances nature of loans
- Repayable in on demand or Agreement does not specify any terms or period of repayment
To All parties	2400.85
To Wholly Owned Subsidiaries	2110.00
Percentage of loans/ advances in nature of loans to the total loans	87.89%

Further, there have been running account transactions with the parties covered under section 189 &188 and details regarding the same have been mentioned in the notes to Standalone financial statements

4) In our opinion and according to the information and explanations given to us, and on the basis of our examination of the records of the Company, the Company has complied with the provisions of Sections 185 and 186 of the Act, as applicable, in respect of loans, investments, guarantees and security provided by it during the year.

5) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not accepted any deposits or amounts which are deemed to be deposits during the year. Accordingly, clause 3(v) of the Order is not applicable to the Company.

6) Pursuant to the rules made by the Central Government, the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products and services. We have broadly reviewed the same and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have not, however, made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

7) (a) According to the records of the company, undisputed statutory dues including Provident Fund, Employees State Insurance, Income-tax, Custom Duty, Goods and Service tax, cess and any other statutory dues have generally been regularly deposited with the appropriate authorities, However, there are few intermittent delays in the payment of statutory dues which has been subsequently remitted with interest except ESI of Rs 0.12 lakhs and TDS of Rs 60.49 lakhs remains unpaid as on date of this report

According to the information and explanations given to us there were no outstanding statutory dues as on 31st of March 2026 for a period of more than six months from the date they became payable, except the following:

Particulars	Amount (in lakhs)	Period to Which the Amount Relates	Remarks
GST - RCM	15.42	2025-26	Paid in April and May 2026
ESI	0.08	2025-26	Unpaid as on date
Advance Tax	236.20	2025-26	Unpaid as on date

(b) According to the information and explanation given to us, there are no dues of income tax, duty of customs, Goods and Service Tax outstanding on account of any dispute except the following.

Assessment year	Nature of dues	Section	Amount excluding interest ( in lakhs)	Forum where the dispute is pending
AY 11-12	Income Tax Demand	153C	455.92	Honble High Court of Madras
AY 11-12		271(1) (c)	204.69
AY 19-20		143(3)	35.86	Deputy Com- missioner of Income tax, Central Circle 2(1), Chennai
AY 23-24		143(1)	4.93	Centralized Processing Centre (CPC)
AY 22-23		154	33.44	Deputy Director of Income Tax, CPC, Benga- luru
Total			734.84

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

9) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not defaulted in repayment of loans or other borrowings or in payment of interest thereon to any lender during the year.

(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not been declared a wilful defaulter by any bank or financial institution or government or any government authority.

(c) According to the information and explanations given to us and on the basis of the audit procedures performed by us and on an overall examination of the standalone financial statements of the Company, we report that the term loans obtained during the year from banks or financial institutions were applied for the purposes for which they were obtained.

(d) According to the information and explanations given to us and on the basis of the audit procedures performed by us and on an overall examination of the standalone financial statements of the Company, we report that the Company has not used funds raised on short-term basis for long-term purposes during the year.

(e) According to the information and explanations given to us and on an overall examination of the standalone financial statements of the Company, we report that the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries or joint ventures/ joint control entities. The Company does not hold any investment in any associates (as defined under the Act) during the year ended 31 March 2026.

(f) According to the information and explanations given to us and on the basis of the audit procedures performed by us, we report that the Company has not raised loans during the year on the pledge of securities held in its subsidiaries, joint ventures or joint controlled entities.

10) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) during the year.

11) (b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, during the year, the Company has made a preferential issue of 13,15,867 fully paid-up equity shares of 10 each at an issue price of 174.18 per share, for an aggregate consideration of 2,291.98 lakhs, and has issued 7,31,998 share warrants at an issue price of 174.18 per warrant, for an aggregate consideration of 1,274.99 lakhs, against which 25% amounting to 318.74 lakhs was received during the year.

12) In our opinion and according to the information and explanations given to us, the applicable provisions of Sections 42 and 62 of the Companies Act, 2013 and the rules made thereunder have been complied with in respect of the aforesaid preferential issue and the amounts raised have been utilised for the purposes for which they were raised.

13) (a) Based on examination of the books and records of the Company and according to the information and explanations given to us, considering the principles of materiality outlined in Standards on Auditing, we report that no fraud by the Company or on the Company has been noticed or reported during the course of the audit.

(b) No report under sub-section (12) of section 143 of the Act has been filedby the auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and up to the date of this report. Accordingly, the reporting under Clause 3(xi)(b) of the Order is not applicable to the Company.

(c) To the best of our knowledge and according to the information and explanation given to us, no whistle blower complaints have been received by the company during the year and up to the date of this report

14) The company is not a Nidhi Company as defined under Section 406 of the Act. Accordingly, clauses 3 (xii) of the order is not applicable.

15) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with related parties are in compliance with section 177 and section 188 of the Act, where applicable, and the details of such transactions have been disclosed in the standalone financial statements as required by the applicable Indian accounting standards.

16) (a) In our opinion and according to the information and explanation given to us, the Company has an internal audit system commensurate with the size and nature of its business.

(b) The internal audit reports issued during the year and covering the period under audit have not been made available to us up to the date of this report and, accordingly, we have not considered such reports in determining the nature, timing and extent of our audit procedures.

17) According to the information and explanations given to us, in our opinion, during the year the company has not entered into any non-cash transactions with its directors or persons connected with its directors and hence provisions of section 192 of the Act, are not applicable to the company.

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

(b) The Company has not conducted any Non-Banking Financial Company or Housing Finance Company activities during the year and, accordingly, clause 3(xvi)(b) of the Order is not applicable to the Company.

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

(d) According to the information and explanations given to us, and as represented by the management of the company, there is no core investment company within the Group (as defined in the Core

Investment Companies (Reserve Bank) Directions, 2016) and accordingly reporting under clause 3(xvi)(d) of the Order is not applicable

19) The Company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

20) There has been no resignation of the statutory auditors during the year. Accordingly, clause 3(xviii) of the order is not applicable.

21) According to the information and explanations given to us, and on the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the standalone 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 company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the company. 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.

22) The Company has fully spent the required amount towards Corporate Social Responsibility (CSR) and there is no unspent CSR amount for the year requiring a transfer to a Fund specified in Schedule VII to the Act or special account in compliance with the provision of subsection (6) of Section 135 of the said Act. Accordingly, reporting under Clause 3(xx) of the Order is not applicable for the year.

"Annexure B" to the Independent Auditors Report

Report on the Internal Financial Controls with reference to Standalone Financial Statements under clause (i) of Sub – section 3 of Section 143 of the Companies Act, 2013 ("the Act")

Referred to in paragraph 2 (g) under ‘Report on other Legal and Regulatory Requirements section of our report of even date.

We have audited the Internal Financial Controls with reference to standalone financial statements of Vishnusurya Projects and Infra Limited (the Company) as at March

31, 2026, in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Managements responsibility for Internal Financial Controls

The Board of directors of the Company is responsible for establishing and maintaining internal financial controls, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting ("the Guidance Note") 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, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditors Responsibility

Our responsibility is to express an opinion on the 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 and the standards on auditing prescribed under Section 143 (10) of the Act, to the extent applicable to an audit of internal financial controls with reference to standalone financial statements. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to standalone financial statements were established and maintained and whether such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to 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 in the standalone financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys Internal Financial Control with reference to 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 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

(i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

(ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of standalone financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and

(iii) 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.

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.

Opinion

In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to standalone financial statements and such internal financial controls with reference to standalone financial statements were operating effectively as at March 31, 2026, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the ICAI.

For Madhu Balan & Associates

Chartered Accountants

FRN: 011106S

P. Arumugaraj

Partner

Membership No.: 219184

UDIN: 26219184OXDQGP6201

Place: Chennai

Date: 29-05-2026