We have audited the accompanying standalone financial statements of CMI LIMITED (the
‘Company’), which comprise the Balance sheet as at 31st March 2025, 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, 2025, 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 the following matters in the
accompanying statement of audited financial results prepared in accordance with applicable
accounting standards and other recognized accounting practices and policies, which are
required to be 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 the Corporate Insolvency Resolution Process (CIRP) under
the Insolvency and Bankruptcy Code, 2016 (IBC), and the powers of the Board of
Directors stand suspended.

b) Going Concern Concept - The accumulated losses of the Company as at 31st
March 2025 amount to Rs.15,438.89 lakhs as against the paid-up share capital of
Rs.1,602.74 lakhs, resulting in complete erosion of the net worth. The Company has
been incurring continuous losses for the past several years, creating material
uncertainty regarding its ability to continue as a going concern.

c) Non-compliance with Ind AS and Other Accounting Requirements -

i. The Company has not identified, measured, and disclosed employee benefits such
as gratuity and leave encashment as required under Ind AS 19.

ii. A comprehensive fixed asset register has not been maintained, and no physical
verification report is available; accordingly, property, plant and equipment (PPE)
are carried at book values brought forward from earlier years in accordance with
the previous accounting records, and we are unable to verify their existence,
ownership, and valuation as required under Ind AS 16 - Property, Plant and
Equipment.

iii. Information regarding lease arrangements, if any, has not been disclosed as
required under Ind AS 116.

iv. Non-disclosure of certain information and notes required under Ind AS 13
(Investments) and Ind AS 107 (Financial Instruments - Disclosures).

d) Investments, Loans and Bank Balances - External confirmations for loan accounts,
bank accounts and investments have not been obtained, and the balances are
subject to reconciliation.

e) Trade Receivables, Payables and Advances - Confirmations for trade receivables
and trade payables have not been provided by the Company. Likewise, confirmations
and supporting details for advances to suppliers and advances from customers are
not available. Therefore, their genuineness, recoverability, and accuracy cannot be
verified.

f) Inventories - Quantitative details and confirmations of inventories are not available.
Consequently, existence and valuation could not be independently verified and have
been taken at book values from previous years.

g) Cash and Cash Equivalents - Cash balances and confirmations of cash equivalents
have not been provided for verification.

h) Prepaid Expenses and Other Current Assets - Balances are subject to
confirmation and verification; hence, their accuracy and recoverability remain
unascertained.

i) Balances of Current Assets and Current Liabilities - These are subject to
confirmation, and the extent of recoverability from current assets has not been
ascertained.

j) Litigations and Statutory Liabilities - Details of pending litigations and potential
liabilities with the Income Tax, TDS, and GST Departments are incomplete.
Consequently, the financial impact of such matters could not be ascertained.

k) Purchases and Raw Materials - The Company has not provided adequate
documentary evidence for purchases of raw materials, and hence the genuineness
and completeness of such transactions could not be verified.

l) Revenue from Operations - Supporting evidence for sales transactions has not
been furnished. Therefore, the occurrence and completeness of revenue could not be
confirmed.

m) Employee Benefits and Expenses - Details and supporting documents for salaries,
wages, and other employee-related benefits are not available for verification. Further,
expenses relating to workmen and staff welfare could not be verified in the absence of
adequate supporting documentation.

Because of the non-availability of sufficient and appropriate audit evidence in respect of the
matters described above, we are unable to determine whether any adjustments might be
necessary relating to assets, liabilities, income, or expenses of the Company.

Our opinion on the standalone financial statements, and our report on Other Legal and
Regulatory Requirements below, are not further 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 2025 taken on record by the Board of Directors, none of the directors is
disqualified as on 31 March 2025 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) During the year, the managerial remuneration for the year ended 31 March 2025
has not 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 2025:

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 2025

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 BAGCHI & GUPTA
Chartered Accountants
ICAI Firm Registration Number: 126940W

Sd/-

CA Priyam Kejriwal
Partner

Membership Number: 418340
UDIN: 25418340BMJHXL3495

Place: Nagpur

Date: 07^th November 2025