We have audited the accompanying Standalone
Financial Statements of MSP Steel & Power Limited

(“the Company”), which comprise the Standalone
Balance sheet as at March 31, 2025, the Standalone
Statement of Profit and Loss (including the Other
Comprehensive Income), the Standalone Statement of
Cash Flow and the Standalone Statement of Changes
in Equity for the year then ended, and notes to the
Standalone Financial Statements, including a summary
of material accounting policies and other explanatory
information (hereinafter referred to as the “Standalone
Financial Statements”).

In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
Standalone Financial Statements give the information
required by the Companies Act, 2013, as amended (“the
Act”) in the manner so required and give a true and fair
view in conformity with the Indian Accounting Standards
prescribed under section 133 of the Act read with the
Companies (Indian Accounting Standard) Rules 2015,
as amended (Ind AS) and other accounting principles
generally accepted in India, of the state of affairs of the
Company as at March 31, 2025, its loss (including other
comprehensive loss), its cash flows and the changes in
equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the Standalone Financial
Statements in accordance with the Standards on Auditing
(SAs) as specified under section 143(10) of the Act. Our
responsibilities under those standards are further described
in the Auditor’s Responsibility 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
(iCAl) of India together with the ethical requirements that are
relevant to our audit of the Standalone Financial Statements
under the provisions of the Act and the Rules made there
under, and we have fulfilled 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 sufficient and appropriate to provide a basis for
our audit 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 for the financial year
ended March 31, 2025. 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. For each
matter below, our description of how our audit addressed
the matter is provided in that context.

Information Other than the Standalone
Financial Statements and Auditor’s Report
thereon

The Company’s Management and Board of Directors
are responsible for the other information. The other
information comprises the information included in the
Annual Report but does not include the Standalone
Financial Statements and our auditor’s report thereon.

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

In connection with our audit of the Standalone Financial
Statements, our responsibility is to read the other
information and, in doing so, consider whether the
other information is materially inconsistent with the
Standalone Financial Statements or our knowledge
obtained during the course of our audit or otherwise
appears to be materially misstated. If, based on the
work we have performed on the other information that
we obtained prior to the date of this Auditor’s report, we
conclude that there is a material misstatement of this
other information; we are required to report that fact. We
have nothing to report in this regard.

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

The Company’s Management and Board of Directors
are 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
including other comprehensive income, cash flows
and changes in equity of the Company in accordance
with the accounting principles generally accepted in
India, including the Indian Accounting Standards (ind
AS) 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 judgements
and estimates that are reasonable and prudent; and the
design, implementation and maintenance of adequate
internal financial controls, that were operating effectively
for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and
presentation of the Standalone Financial Statements
that give a true and fair view and are free from material
misstatement, whether due to fraud or error.

In preparing the Standalone Financial Statements,
management and Board of Directors are responsible
for assessing the Company’s ability to continue as a
going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis
of accounting unless management either intends to
liquidate the Company or to cease operations, or has no
realistic alternative but to do so.

The Board of Directors are also responsible for overseeing
the Company’s financial reporting process.

Auditor’s Responsibility 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 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 influence the economic
decisions of users taken on the basis of these Standalone
Financial Statements.

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

• Identify and assess the risks of material misstatement
of the Standalone Financial Statements, whether due
to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or
the override of internal control.

• Obtain an understanding of internal financial
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 system in place and the operating
effectiveness of such controls.

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

• Conclude on the appropriateness of management’s
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether
a material uncertainty exists related to events or
conditions that may cast significant doubt on the
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 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 auditor’s report. However, future events
or conditions may cause the Company to cease to
continue as a going concern.

• Evaluate the overall presentation, structure and
content of the Standalone Financial Statements,
including the disclosures, and whether the
Standalone Financial Statements represent the
underlying transactions and events in a manner
that achieves fair presentation.

Materiality is the magnitude of misstatements in the
Standalone Financial Statements that, individually or
in aggregate, makes it probable that the economic
decisions of a reasonably knowledgeable user of the
Standalone Financial Statements may be influenced.
We consider quantitative materiality and qualitative
factors in (i) planning the scope of our audit work and in
evaluating the results of our work; and (ii) to evaluate the
effect of any identified misstatement in the Standalone
Financial Statements.

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

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

From the matters communicated with those charged
with governance, we determine those matters that
were of most significance in the audit of the Standalone
Financial Statements of the current period and are
therefore the key audit matters. We describe these
matters in our 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
benefits of such communication.

Other Matter

The standalone financial statements of the Company
for the year ended March 31, 2024 were audited by the
predecessor auditor who expressed an unmodified
opinion on those financial statements vide their report
dated May 29, 2024. We have placed reliance on the said
report of the predecessor auditor.

Our opinion is not modified in respect of above matter.

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 (ll) of
section 143 of the Act, we give in the “Annexure A” a
statement on the matters specified in paragraphs 3
and 4 of the Order, to the extent applicable.

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

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

(b) In our opinion, proper books of account
as required by law have been kept by the
Company so far as it appears from our
examination of those books; except for the
matters stated in paragraph 2(i)(vi) below on
reporting under Rule 1l(g) of the Companies
(Audit and Auditors) Rules, 2014;

(c) The Standalone Balance Sheet, the Standalone
Statement of Profit and Loss including the
Statement of Other Comprehensive Income,
the Standalone Statement of Cash Flow and
Standalone Statement of Changes in Equity
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 Companies (Indian
Accounting Standards) Rules, 2015, as amended
from time to time;

(e) On the basis of the written representations
received from the directors as on March 31,
2025 taken on record by the Board of Directors,
none of the directors is disqualified as on March
31, 2025 from being appointed as a director in
terms of Section 164(2) of the Act;

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

(g) With respect to the adequacy of the internal
financial controls with reference to these
Standalone Financial Statements of the
Company and the operating effectiveness
of such controls, refer to our separate report
in “Annexure B”.

(h) The Company has paid/provided managerial
remuneration to its directors in excess of
the limits prescribed under section 197 of
the Companies Act, 2013. The Company has
represented that it proposes to seek the
approval of the shareholders by way of special
resolution at the ensuing Annual General
Meeting for waiver of recovery of such excess
remuneration in terms of section 197 (10) of
the Act. Details of such excess remuneration
are disclosed in note - 41 to the Standalone
Financial Statements; and

(i) 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:

I. The Company has disclosed the impact
of pending litigations as at March 31, 2025
on its financial position in its Standalone
Financial Statements -36 (a) to the
Standalone Financial Statements;

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

III. There has been no delay in transferring
amounts, required to be transferred to the
Investor Education and Protection Fund
by the Company.

IV. (a) The Management has represented to

us that, to the best of its knowledge and
belief, as disclosed in the Note 47(g) to
the Standalone Financial Statements,
no funds have been advanced or
loaned or invested (either from
borrowed funds or share premium or
any other sources or kind of funds)
by the company to or in any other
person(s) or entity(ies), including
foreign entities (“Intermediaries”),
with the understanding, whether
recorded in writing or otherwise,
that the Intermediary shall, 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 to
us that, to the best of its knowledge
and belief, as disclosed in the Note

47(h) to the Standalone Financial
Statements, no funds have been
received by the company from any
person(s) or entity(ies), including
foreign entities (“Funding Parties”),
with the understanding, whether
recorded in writing or otherwise, that
the company shall, 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; and

(c) Based on our audit procedures that
have been considered reasonable
and appropriate in the circumstances,
nothing has come to our notice that
has caused us to believe that the
representations under sub-clause (i)
and (ii) of Rule 11(e) as provided under
paragraph 2(i) (iv)(a) &(b), contain
any material misstatement.

V. The Company has not declared/paid
any dividend during the year therefore
reporting regarding compliance of Section
123 of the Act is not applicable.

VI. Based on our examination, which included
test checks and as explained in note no.
48, the Company has used two accounting
software(s) for maintaining its books of
account. One of the software had a feature
of recording audit trail (edit log) facility
and the same has operated throughout
the year for all relevant transactions
recorded in the software at application