We have audited the accompanying Standalone Financial
Statement of BEEKAY STEEL INDUSTRIES LIMITED, ("the
Company") which comprise the Balance Sheet as at 31st
March, 2026 and the Statement of Profit and Loss (including
other comprehensive income), the Statement of Changes in
Equity and the Statement of Cash Flows for the year ended
on that date, and notes to the standalone financial statements
including a summary of the material accounting policies and
other explanatory information.
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid Standalone
financial statements give the information required by the
Companies Act, 2013 ("the Act") in the manner so required and
give a true and fair view in conformity with Indian Accounting
Standards prescribed under section 133 of the Act read with
the Companies (Indian Accounting Standards) Rules, 2015,
as amended ("Ind AS") and other accounting principles
generally accepted in India, of the Standalone state of affairs
of the Company as at March 31, 2026, the Standalone profit,
Standalone total comprehensive income, Standalone changes
in equity and its Standalone cash flows for the year ended on
that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on
Auditing (SAs) specified under section 143(10) of the Act (SAs).
Our responsibilities under those Standards are further described
in the "Auditor's Responsibilities for the Audit of the Standalone
Financial Statements". We are independent of the Company in
accordance with the Code of Ethics issued by the Institute of
Chartered Accountants of India (ICAI) together with the ethical
requirements that are relevant to our audit of the Standalone
financial statements under the provisions of the Act and the
Rules made thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the
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.
Emphasis of Matters
We draw attention to Note 40 to the accompanying financial
statements, which describes the fire incident that occurred in
the Company's coal yard on May 25, 2025, resulting in damage
to the inventory of indigenous coal. As explained in the said
note, the Company has recognised the loss arising from the fire
incident, which has been presented separately as an exceptional
item in the Statement of Profit and Loss. The Company has
also accounted for the related insurance claim in accordance
with the applicable accounting principles. Our opinion is not
modified in respect of this matter.
Key Audit Matter
Capitalisation of Fixed Assets Including Allocation of
Common Capital Work-in-Progress (CWIP) Expenses and GST
Reversal Adjustments
Why the matter was considered to be one of the most
significance in our audit
During the year ended March 31,2026, the Company capitalised
various assets pertaining to its Cuttack Unit after giving effect
to GST reversal adjustments and allocation of common Capital
Work-in-Progress ("CWIP") expenses. The allocation involved
significant amounts relating to CWIP-Plant Office (Common),
CWIP-General Stores, CWIP-Store Consumables and CWIP-
Water Charges (OTS), which were apportioned across various
asset categories and divisions based on management's
allocation methodologies and assumptions.
The capitalisation process involved application of different
allocation bases, including proportionate allocation based
on asset values, historical allocation ratios and division-
wise apportionment methodologies. Given the materiality
of the amounts involved and the significant management
judgement exercised in determining the basis of allocation and
capitalisation of these expenditures, this matter was considered
to be a key audit matter.
How our audit addressed the key audit matter
Our audit procedures in relation to the capitalisation of fixed
assets and allocation of common CWIP expenses included,
among others, the following:
a) Obtained an understanding of the Company's policies and
internal controls relating to capitalisation of fixed assets
and allocation of common CWIP expenditures;
b) Evaluated the appropriateness and consistency of the
allocation methodologies adopted by management
for allocation of common CWIP expenses and GST
reversal adjustments;
c) Verified, on a sample basis, the underlying supporting
documents and accounting records relating to the capital
expenditure incurred;
d) Tested the mathematical accuracy of the allocation
workings and recalculated the allocations made to various
assets and divisions;
e) Assessed the reasonableness of the allocation bases
adopted, including the use of historical allocation ratios
and proportionate allocation methodologies;
f) Verified the accounting treatment and incorporation of GST
reversal adjustments into the cost of respective assets; and
g) Evaluated the adequacy of the disclosures made in the
financial statements relating to capitalisation of fixed assets
and CWIP allocation.
Other Information
The Company's Board of Directors is responsible for the
preparation of other information. The other information
comprises the information included in the Management
Discussion and Analysis, Board's Report including Annexures
to Board's Report, Business Responsibility Report, Corporate
Governanace and Shareholder's Information (but does not
include the Standalone financial statement and the auditor's
report thereon), which is expected to be made avaialable to us
after the date of this auditor's report, and additional information
excluding those referred above that would be included in this
Annual Report, which is awe obtained prior to the date of our
report. Our opinion on the Standalone Financial Statement does
not cover the other information and we will not express any
form of assurance conclusion theron.
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.
When we read the additional information, as mentioned above,
that would be included in the Annual 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 actions as applicable under the relevant
laws and regulations.
Responsibility of Management and those
charge with the Governance for the Standalone
Financial Statements
The Company's 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, state
of affairs, profit / loss and total comprehensive income, changes
in equity and cash flows of the Company in accordance
with the Ind AS specified under section 133 of the Act and
other accounting principles generally accepted in India.
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, Board of
Directors is 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 responsible for
overseeing the Company's financial reporting process.
Auditor's 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 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 judgment and maintain professional skepticism
throughout the audit. We also :
a) 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.
b) Obtain an understanding of internal controls relevant
to the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(i) of
the Act, we are also responsible for expressing our opinion
on whether the Company has adequate internal financial
controls system with reference to the financial statements,
in place and the operating effectiveness of such controls.
c) Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by management.
d) 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 ability of the Company 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.
e) Evaluate the overall presentation, structure and content
of the Standalone financial statements, including the
disclosures, and whether the Standalone financial
statements represent the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the Standalone financial statements
of the current period and are therefore the key audit matters.
We describe these matters in our 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
We did not audit the financial statements of three branches
included in the standalone financial statements of the Company
whose financial statements reflect total assets of Rs. 48.58
Crore as at March 31, 2026 and total revenues of Rs. 132.73
Crores for the year ended on that date, as considered in the
standalone financial statements. The financial statements of
this Branch have been audited by the Branch Auditor u/s 143(8)
of Companies Act, 2013 along with the rules and regulations
thereunder, whose report has been furnished to us, and our
opinion in so far as it relates to the amounts and disclosures
included in respect of these Branches, are based solely on the
report of such Branch Auditors.
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 section 143(11) of the Act, we give in the
Annexure B, a statement on the matters specified in the
paragraph 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 i(vi), below on
reporting under Rule 11(g) of the Companies (Audit &
Auditors) Rules, 2014.
c) The reports on the accounts of the branch offices of
the Company audited under Section 143(8) of the Act
by Branch Auditors have been sent to us and have
been properly dealt with by us in preparing this report.
d) The Standalone Balance Sheet, the Standalone
Statement of Profit and Loss including other
comprehensive income, Standalone Statement of
Changes in Equity and the Statement of the Cash
flows dealt with by this Report are in agreement with
the books of account;
e) In our opinion, the aforesaid standalone financial
statements comply with the Ind AS specified under
Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014.
f) On the basis of the written representations received
from the directors as on 31 March 2026 taken on
record by the Board of Directors, none of the directors
is disqualified as on 31 March 2026 from being
appointed as a director in terms of Section 164 (2) of
the Act.
g) With respect to the maintenance of accounts and
other matters connected therewith, reference is made
to our remarks in Paragraph (b) above on reporting
under section 143(3)(b) and Paragraph i(vi), below on
reporting under Rule 11(g) of the Companies (Audit &
Auditors) Rules, 2014.
h) With respect to the adequacy of the internal financial
controls over financial reporting of the Company and
the operating effectiveness of such controls, refer
to our separate Report in 'Annexure A'. Our report
expresses an unmodified opinion on the adequacy
and operating effectiveness of the Company's internal
financial controls over financial reporting.
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, 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 ofpending
litigations as at 31st March, 2026 on its financial
position in its Standalone financial statements.
ii) The Company has made provision, as required
under the applicable law or accounting standards,
for material forseeable losses, if any, on long-term
contracts including derivative contracts.
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 that,
to the best of its knowledge and belief, 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 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) (a) The final dividend paid by the Company
during the year in respect of the same
declared for the previous year is in
accordance with section 123 of the Act to
the extent it applies to payment of dividend
(b) The Board of Directors of the Company
have proposed final dividend for the year
which is subject to the approval of the
members at the ensuing Annual General
Meeting. The amount of dividend proposed
is in accordance with section 123 of the Act,
as applicable.
vi) Based on our examination which included
test checks, the Company has used multiple
accounting software for maintaining its books
of accounts, which have a feature of recording
audit trail (edit log) facility and that has operated
throughout the year for all relevant transactions
recorded in accounting softwares, except for
modifications, if any, made by certain users with
priveledged access in some applications and for
direct database changes for all the accounting
softwares. During the course of performing our
procedures, except for the aforesaid instances of
audit trail not maintained where the question of
our commenting on whether the audit trail has
been tampered with does not arise, we did not
notice any instance of audit trail feature being
tampered with. Further, the audit trail to the
extent maintained in the prior year has been
preserved by the Company as per the Statutory
Requirements for the record retention.
j) In our opinion and to the best of our information
and according to the explanations given to us, the
remuneration paid by the Company to its directors
during the year is in accordance with the provisions of
section 197 read with Schedule V of the Act.
For RUSTAGI & ASSOCIATES
Chartered Accountants
Firm's Registration Number.: 314194E
Sd/-
SWATANTRA KUMAR RUSTAGI
(Partner)
Membership No. 051860
ICAI UDIN No.: 26051860DQIWAP6059
Place: 59, Bentinck Street, Kolkata - 700 069
Date: 15th day of May, 2026
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