We have audited the accompanying Standalone Financial
Statements of NMDC Limited (hereinafter referred to as "the
Company"), which comprise the Standalone Balance Sheet
as at March 31, 2025, the Standalone Statement of Profit and
Loss (including Other Comprehensive Income), the Standalone
Statement of Changes in Equity and the Standalone Statement
of Cash Flows for the year then ended, and notes to the
Standalone Financial Statements, including material accounting
policy information 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 ("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 Standards) 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
profit and other comprehensive income, changes in equity and
its 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. Our
responsibilities under those Standards are further described in
the “Auditor's 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 ("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 the provisions
of the Act and the ICAI’s Code of Ethics. We believe that the
audit evidence obtained by us and the branch auditors in terms
of their report referred to in “Other Matter” paragraph below, is
sufficient and appropriate to provide a basis for our 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 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 following matters to be the Key audit
matters to be communicated in our report. The description
of how our audit addressed the Key audit matter is provided
in that context.

Emphasis of Matter

We draw attention to the following matters forming part of the Standalone Financial Statements

a. Note No. 2.48 (A.1.3.1) regarding the Karnataka (Mineral Rights and Mineral Bearing Land) Tax Bill, 2024 proposing retrospective
levy of taxes amounting to INR 13,975.07 crores, which is pending the assent of the Hon’ble President of India.

b. Note No. 2.49 (5.vi) regarding recoverability of dues from NMDC Steel Limited (“NSL”), representing an amount of INR 2,151.39
crores arising from demerger and INR 3,793.21 crores of trade and other receivables.

c. Note No. 2.51 (8.a) regarding recoverability of trade
receivables from RashtriyaI Ispat Nigam Limited (RINL)
amounting to INR 4,049 crores.

d. Note No. 2.49 (5.iv) regarding status of advance of INR
639.61 crores paid by the Company to a subsidiary M/s
Karnataka Vijayanagar Steel Limited (KVSL).

e. Note No. 2.48 (A.1.3.2) regarding demand of INR 1,623.44
crores relating to compensation based on common cause
judgement, which is sub-judice.

f. Note No. 2.48 (A.1.3.3) regarding order/ notice alleging
mineral dispatches without timely Railway Transit Passes
(RTP), resulting in a penalty of INR 1,620.50 crores
which is sub-judice.

g. Note No. 2.49 (5.xi) regarding financial position of Legacy
Iron Ore Ltd, a foreign subsidiary of the Company.

The impact of the above on the Standalone Financial Statements
is dependent on the outcome of the proceedings/ matters as
described in the said notes.

Our opinion is not modified in respect of the above matters.

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

The Company's Management and Board of Directors are
responsible for the preparation of the 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
and Sustainability Report, Corporate Governance Report
and Shareholder Information (collectively called as “Other
Information”), but does not include the Standalone Financial
Statements and our auditor's report thereon. The Other
information as above is expected to be made available to us after
the date of this auditor’s report.

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
identified above when it becomes available 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.

When we read the other information, 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, if required.

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 specified in section 134(5) of the
Act, with respect to the preparation and presentation of these
Standalone Financial Statements that give a true and fair
view of the standalone financial position, standalone financial
performance, standalone other comprehensive income,
standalone changes in equity and standalone cash flows of the
Company in accordance with the 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.

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, the 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 Board of Directors 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 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:

• 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 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
Standalone 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 Board of Director’s.

• 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.

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 Matters

We did not audit the financial statements of six branches
included in the audited Standalone Financial Statements of the
Company, whose financial statements reflects total assets of
INR 23,108.61 crores as at March 31,2025; total revenues of
INR 24,003.45 crores and total net profit before tax of
INR 8,523.19 crores, for the year ended March 31,2025 as
considered from the respective audited financial statements of
the Branches included in the Standalone Financial Statements of
the Company. The financial statements of these branches have
been audited by the respective independent branch auditors
whose reports have been furnished to us, and our opinion in
so far as it relates to the amounts and disclosures included
in respect of these branches, is based solely on the report of
such branch auditors and the procedures performed by us are
as stated under Auditor’s Responsibilities for the Audit of the
Standalone Financial Statements section above after considering
the requirements of Standard on Auditing (SA 600) on “Using the
work of Another Auditor” including materiality.

Our opinion is not modified in respect of the 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 Section 143(11) 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 the paragraph 2(j)(vi) below on
reporting under Rule11(g) of the Companies (Audit and
Auditor’s) 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 Standalone Statement of
Cash Flows dealt with by this Report are in agreement
with the books of account and other records
maintained for the purpose of preparation of the
Standalone Financial Statements.

e) In our opinion, the aforesaid Standalone Financial
Statements comply with the Indian Accounting
Standards (“Ind AS”) specified under Section
133 of the Act.

f) The provisions of Section 164(2) of the Act, in respect
of disqualification of directors are not applicable

to the company, being a Government company in
terms of notification no: - G.S.R.463(E) dated 5th
June 2015 issued by Ministry of Corporate Affairs,
Government of India.

g) 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(j)(vi) below on reporting under Rule
11(g) of the Companies (Audit and Auditor’s) Rules,
2014, as amended.

h) With respect to the adequacy of the internal financial
controls with reference to Standalone Financial
Statements of the Company and the operating
effectiveness of such controls, refer to our separate

report in "Annexure -B", wherein we have expressed
an unmodified opinion.

i) With respect to the other matters to be included in the
auditor's report in accordance with the requirements
of Section 197(16) of the Act, as amended:

We are informed that the provisions of section
197 read with Schedule V of the Act, relating to
managerial remuneration are not applicable to the
company, being a Government Company, in terms
of Ministry of Corporate Affairs notification no-
G.S.R.463(E) 5th June 2015.

j) With respect to the other matters to be included
in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditor’s) 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
2.48 to the Standalone Financial Statements.

ii. The company does not have any long-term
contracts including derivative contracts for which
there were any material foreseeable losses.

iii. There has been delay in transferring unclaimed
dividend amounts and related equity shares, that
are required to be transferred, to the Investor
Education and Protection Fund by the company
as detailed below:

iv.

a. The management has represented that,
to the best of its knowledge and belief,
as disclosed in Note 2.51(12.a) 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:

• 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,
as disclosed in Note 2.51(12.b) 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:

• 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 the audit procedures performed
by us 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 (iv)(a) and
(v)(b) contain any material misstatement.

v. The interim dividend declared and paid by the
company during the year and until the date of
this audit report is in accordance with section
123 of the Act.

The final dividend paid by the Company during
the financial year 2024-25 which was declared for
the previous financial year 2023-24 and approved
by the members at Annual General Meeting is in
accordance with section 123 of the Act, to the
extent it applies to payment of dividend.

As stated in note 2.52.3(c) to the Standalone
Financial Statements, the Board of Directors of
the Company has recommended Final dividend
for the year which is subject to the approval of
the members at ensuing Annual General Meeting.
The dividend declared is in accordance with
section 123 of the Act to the extent it applies to
declaration of dividend.

vi. Based on our examination which included test
checks and the report of the auditors of the six
branches and according to the information and
explanations given to us and as stated in Note No
2.51.13 to the Standalone Financial Statements,
the Company has used the accounting software
for maintaining its books of account which has
a feature of audit trail (edit log) facility and the
same has operated throughout the year for
all the relevant transactions recorded in such
software except that:

The feature of recording audit trail (edit log)
facility was not enabled at the database
level to log any direct data changes for the
accounting software used for maintaining the
books of account.

During the course of our audit, we did not come
across any instance of audit trail feature being
tampered with and the audit trail has been
preserved by the Company as per the statutory
requirements for record retention.

3. We are enclosing our report in terms of section 143(5) of
the Act, on the basis of such checks of books and records
of the company as we consider appropriate and according
to the information and explanations given to us, in
"Annexure-C" on the directions issued by the Comptroller
& Auditor General of India.

For VARMA & VARMA

Chartered Accountants
FRN 004532S

P R Prasanna Varma

Partner

Place: Hyderabad M No. 025854

Date: May 27, 2025 UDIN: 25025854BMOBJP8695