We have audited the Standalone Ind AS Financial Statements ofHindusthan Udyog Limited ("the Company"),
which comprise the Balance Sheet as at 31st March, 2024, and the statement of Profit and Loss (including
Other Comprehensive Income), Statement of Changes in Equity and statement of Cash Flows for the year then
ended, and notes to the Standalone Ind AS Financial Statements, including a summary of 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 Ind AS Financial Statements give the information required by the Companies Act, 2013 in the
mannersorequiredandgiveatrueand fair view in conformity with the accounting principles generally accepted
in India, of the state of affairs of the Company as at March 31, 2024, and its Profit including Other Compre¬
hensive Income, 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 Ind AS financial statements in accordance with the Standards on
Auditing (SAs) specified 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 Ind AS 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 Ind AS Financial Statements under the provisions of the Companies Act, 2013 and
the Rules there under, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion on the Standalone Ind AS Financial Statements.

Emphasis of Matter *

We draw attention to the following matters in the Notes to the Financial Statements:

a) Note No. 2 to the Financial Statements which describes that no provision for amortization has been made
for longterm Leasehold Land at Durgapur.

b) The company filed a lawsuit against Mahanadi Coalfields Ltd. For recovery of Rs. 91.93 lacs at Cuttack
High court for which no provision has been made in the accounts.

c) As the company's business activities fall mainly within a single primary business segment viz. Engineering
(Steel Castings & Alloys); there are no operations under this segment. So, the management is searching for
new business opportunity in order to continue as a going concern. Note No. 24.3 of standalone financial
statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the Standalone Ind AS Financial Statements for the financial year ended March 31, 2024. These matters
were addressed in the context of our audit of the Standalone Ind AS Financial Statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.

We have determined the matter described below to be the key audit matter to be communicated in our
report.

Information Other than the Ind AS Financial Statements and Auditor's Report Thereon

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, Corporate Governance and Shareholder's Information, but does not
include the Ind AS 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 materiallvinconsistent with the
standalone Financial Statements or our knowledge obtained in the audit or otherwi^^^®r^^^e materially
misstated.

If, based on the work we have performed, we conclude that there is a materia I Shis other

information; we are required to report that fact. We have nothing to report in this^^^^^^^^/

Responsibilities of Management and Those Charged with Governon&^TfdFtH¥ SmlddBr/e Ind AS Financial
Statement.

The Company's Board of Directors is responsible for the matters stated in section 134{5) of the Companies Act,
2013 ("the Act") with respect to the preparation of these Standalone Ind AS Financial Statements that give a
true and fair view of the financial position, financial performance, changes in equity and cash flows of the
Company in accordance with the accounting principles generally accepted in India, including the Indian
Accounting Standard specified under Section 133 of the Act. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the
Company and for preventing and detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgements 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 of the preparation
and presentation of the financial statement that give a true and fair view and are free from material
misstatement, whether due to fraud or error.

In preparing the Ind AS Financial Statements, the 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.

Those Board of Directors are also responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Ind AS Financial Statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue and 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 decision of user taken on the basis of these Ind AS Financial
Statements.

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

• Identify and assess the risks of material misstatement of the standalone Ind AS 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 aj^-aisgresponsible for
expressing our opinion on whether the Company has adequate internal financiaj^^reference to
standalone financial statements in place and the operating effectiveness of su<j^olTtrols7^^^

' )iiJ

• Evaluate the appropriateness of accounting policies used and the reasonable!^ ^flra^SSmiMiestimates
and related disclosures in the standalone financial statements made by the maRa^^^nt^^>y

Conclude on the appropriateness of management's use of the going c8rff§ffl Basff of4rcounting 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
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 Ind AS financial statements,
including the disclosures, and whether the standalone Ind AS financial statements represent the underlying
transactions and events in a manper 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 Ind AS financial statements for the financial year ended
March 31, 2024 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 circums¬
tances, 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 (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, we give in
the Annexure-A' a statemeht 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, 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 and report of the other auditors;

(c) The Balance Sheet, the Statement of Profit and Loss including 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; *.

(d) In our opinion, the aforesaid standalone Ind AS financial statements co^MLw^^^^:ounting
Standards specified under Section 133 of the Act, read with Companies (InHg^^g^igi^ttndards)
Rules, 2015, as amended;

(e) On the basis of the written representations received from the tllrectbreWihe^Company as on Marcn
31, 2024 taken on record by the Board of Directors, none of the directors is disqualified as on March
31, 2024 from being appointed as a director in terms of Section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company
with reference to these standalone Ind AS financial statements and the operating effectiveness of
such controls, refer to our separate Report in "Annexure-B" to this report;

(g) With respect to the matter to be included in the Auditors' Report under 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 read with Schedule V of the Act.

(h) 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 of pending litigations on its financial position in its Ind AS
Financial Statements— Refer Note 24.1 to the Ind AS 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 was no amount which' was 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.

(c) 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 ("Ulti-mate Beneficiaries") or provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries.

(d) 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. ____

Ý A

(v) The company has not declared or paid any dividend during the year and also has not proposed final
dividend for the year.

(vi) Based on our examination which included test checks, the Company has used an accounting
software for maintaining its books of account which has a feature of recording audit trail (edit log)
facility and the same has operated throughout the accounting period 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 being tampered with.

As proviso to Rule 3(1) of the Companies (Accounts) Rules,2014 is applicable from 1 April 2023,
reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit
trail as per the statutory requirements for record retention is not applicable for the financial year
ended 31 March 2024.

For Salarpuria & Partners
Chartered Accountants
Firm ICAlReg. No. 302113E

Palish K. Dey

f!h?rtered Accountant'

Membership MO.-053S91 ‘

Partner

^&

udin: 24053991 U 4

Place: Kolkata .

Date: ?_3 - 05 ~ 2.0 2.4