We have audited the accompanying standalone financial statements of CMI LIMITED (the
‘Company’), which comprise the Balance sheet as at March 31 2024, the Statement of Profit
and Loss, including the statement of Other Comprehensive Income, the Statement of Cash
Flows and the 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.

In our opinion and to the best of our information and according to the explanations given to us,
except for the effects of the matter described in the Basis for Opinion paragraph below, the
aforesaid financial statements give the information required by the Act in the manner so required
and give a true and fair view in conformity with the accounting principles generally accepted in
India, of the state of affairs of the Company as at 31st March, 2024, its profit/loss (including
other comprehensive income ) changes in equity and its cash flows for the year ended on that
date.

Basis for qualified 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 ‘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
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 and the 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.

Based on our review conducted as above, we have noticed following points to our attention in
the accompanying statement of audited financial results prepared in accordance with applicable
accounting standards and other recognized accounting practices and policies which required to
disclosed under the act including the manner in which it is to be disclosed, or that it contains any
material misstatement:

a) The Company is under corporate insolvency resolution process under the Insolvency and
Bankruptcy Code, 2016 (IBC).

b) Going Concern Concept

The accumulated losses of the company as at the close of 31st March 2024 amounting to
Rs. 15,153.78 lakhs as against which the paid-up capital of the company is Rs.1603.07
Lakh and the losses has totally eroded the net worth of the company. The company has
been incurring continues losses for the past many years.

c) The Company has not complied the disclosure for the following as per IND-AS,

a. IND-AS-19: The Company has not identified, measured, quantified and
disclosure the gratuity and leave encashment and its impact on the current
financial statements.

d) Liabilities may arise under litigation with the income tax department, TDS and GST
department could not be ascertained and calculated due to details not available with us.

e) The fixed assets register is not available hence value is taken at book value as balance
brought forward from previous years and physical verification report is also not available for
the same.

f) Confirmation of loan account, bank account and investments not available and account
balance subject to reconciliation.

g) Quantitative details of stock not available however, value of stock is taken at book value as
balance brought forward from previous years.

h) Balances of Current Assets and Current Liabilities are subject to confirmation and any recovery from
Current Assets has not been ascertained.

Our opinion above on the standalone financial statements, and our report on Other Legal and
Regulatory Requirements below, is not modified in respect of the above matters.

Information Other than the Financial Statements and Auditor’s Report Thereon

The Company’s Board of Directors is responsible for the other information. The other
information comprises the information included in the Chairman’s letter, Management
Discussion and Analysis, Business Responsibility and Sustainability Report, Corporate
Governance and Directors’ Report, but does not include the standalone financial statements and
our auditors’ 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 such other information is materially
inconsistent with the standalone financial statements, or our knowledge obtained in the audit or
otherwise appears to be materially misstated. If, based on the work we have performed, 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.

Key audit matters

Key audit matters are those matters that, in our professional judgment, 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. We have determined the matters described below to be the key audit matters to be
communicated.

Emphasis of Matter

Attention is invited to Note 22(ii) under Explanatory Notes to Financial Statements regarding
Financial Liabilities-Non-Current Borrowings. As loan accounts with company's lenders had turned
NPA during the financial year, resultantly the updated loan account statements after the NPA date
are not available in some cases hence the liabilities have been recognised on the basis of latest
available loan account statements and balances therein, the company has not accounted for
liabilities towards banks/financial institutions beyond the NPA dates.

Responsibilities of Management for the standalone financial statements

The company is in CIRP Process under the insolvency and Bankruptcy Code, 2016 ("the
IBC") vide order of Hon'ble NCLT dated 28.07.2023. Managements and Board of Directors
of the Company (Power Suspended) as per the provisions of the IBC working under
authorization of Mr. Deepak Maini, Resolution Professional of the Company, approved the
following Responsibility for the 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 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 of 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 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 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.

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 it 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 scepticism throughout the audit. We are 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 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 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 auditors’ 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 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 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.

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
disclaim our opinion on the matters specified in paragraphs 3 and 4 of the Order based
on data unavailability.

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. Insofar as
the modification on maintaining an audit trail in the accounting software is
concerned, refer paragraph (i) (vi) below.

(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of
Other Comprehensive Income, the Statement of Cash Flows 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 financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with

Companies (Indian Accounting Standards) Rules, 2015, as amended.

(e) On the basis of the written representations received from the directors as on 31
March 2024 taken on record by the Board of Directors, none of the directors is
disqualified as on 31 March 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 with reference to
these standalone financial statements and the operating effectiveness of such
controls, refer to our separate Report in ‘Annexure 1’ to this report.

(g) In our opinion, the managerial remuneration for the year ended 31 March 2024
has been paid/provided by the Company to its directors in accordance with the
provisions of section 197 read with Schedule V to the Act.

(h) 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 pending litigations on its
financial position in its standalone financial statements - Refer
note 26 to the standalone financial statements;

ii. The Group and its associate did not have any material foreseeable
losses in long-term contracts including derivative contracts during
the year ended 31 March 2024:

iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Holding Company and its subsidiaries incorporated in India during
the year ended 31 March 2024

iv. (a) The management has represented that, to the best of its

knowledge and belief and read with note 45(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 or entity, 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 that, to the best of its
knowledge and belief and read with note 45(h) to the standalone
financial statements, no funds have been received by the
Company from any person or entity, 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 such audit procedures performed that were 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 (a) and (b) contain any material
misstatement.

v. No dividend has been declared or paid during the year by the

Company.

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, however the same has not been operated throughout
the year, i.e. audit trail feature was starting during the year and has
been continued for the remaining part of the financial year. Further,
during the course of our audit we did not come across any
instance of the audit trail feature being tampered with.
Furthermore, the audit trail has been preserved by the company as
per the statutory requirements for record retention.

For J MADAN & ASSOCIATES

Chartered Accountants

ICAI Firm Registration Number: 025913N

Naveen Kumar
Partner

Membership Number: 536759
UDIN: 24536759BKCLBZ2212

Place: New Delhi
Date: 07^th October 2024