We have audited the accompanying Standalone
Financial Statements of Lloyds Metals and Energy
Limited ("the Company”), which comprise the Balance
Sheet as at 31^st March, 2025, 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 31^st March, 2025, and
a summary of the significant 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 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 31^st March, 2025, the profit and loss
total 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 Companies Act, 2013.
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 together
with the ethical requirements that are relevant to
our audit of the Standalone Financial Statements
under the provisions of the Companies Act, 2013
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 opinion.

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 in our report.

1. Capitalization of Property, Plant and
Equipment

(Refer Note No. 4 of the standalone
financial statements)

Given the company is in an expansion phase,
the recognition and measurement of Property,
plant and equipment are pivotal to the financial
statements as it is crucial to support the growth
strategy. These assets are capitalized once the
assets are ready for use as intended by the
management and are initially recorded at cost
directly attributable for bringing the asset into its
intended use. Subsequently, they are measured
at cost less accumulated depreciation and
impairment loss, if any. As a result, the aforesaid
matter was determined to be a key audit matter.

How the matter was addressed in our audit:

Our audit procedures to assess the accounting
for Property, Plant and Equipment (PPE)
included the following.

1. Assessing the company’s policies and
procedure for the initial recognition
and measurement of PPE to ensure
compliance with IND AS 16 ‘Property, Plant
and Equipment’.

2. Conducting detailed testing to verify the
accuracy of PPE measurements. This included
reviewing supporting documentation
for verification of cost of acquisition or
construction and ownership of PPE.

3. Assessing the appropriateness of depreciation
methods and the reasonableness of useful
lives applied to PPE.

4. Reviewing the disclosure requirements
related to PPE in the financial statements,
including accounting policies, depreciation
methods and significant assumptions.

2. Capital Work- in-Progress

(Refer Note No. 4a of the standalone
financial statements)

In the expansion phase, the company has made
substantial investment in Capital work-in-progress
(CWIP), which comprises projects currently
under construction. The company has invested
Rs.3345.10 Crore during F.Y. 2024-25 which
compared to last year was Rs. 1444.84 Crore
as per standalone financial statements for F.Y.
2023-24. Given the substantial magnitude and
strategic importance of these CWIP investments,
there are inherent challenges related to accurate
recognition, measurement and disclosure of these
assets in the financial statements.

How the matter was addressed in our audit:

Our audit procedures to assess the accounting for
CWIP included the following.

1. Evaluation of the completeness and accuracy
of the project cost capitalized as CWIP.
This includes reviewing invoices, contracts,
and other supporting documentation.

2. Ensuring the cost capitalized meets the
recognition criteria as per IND AS 16 ‘Property,
Plant and Equipment’.

3. Evaluation of effectiveness of internal controls
over capitalization of project costs.

4. Reviewing the disclosure requirements for
CWIP in the financial statements.

3. Guarantees Issued to Group Companies

(Refer Note No. 40 of Standalone
Financial Statements)

During the Financial Year 2024-25 Mahaprabhu
Projects Pvt Ltd. has issued Debentures against
which Lloyds Metals and Energy Limited has given
a corporate guarantee of Rs.1,745 crores to Catalyst
Trusteeship Limited (the debenture Trustee).

How the matter was addressed in our audit:

Our audit procedures to assess the accounting for
Corporate Guarantees included the following.

1. Review contractual agreements: Obtained
and reviewed the agreements and contracts
that outline the terms and conditions of the
guarantees issued by the company.

2. Assess the nature of the guarantee: Determine
if the guarantee is a corporate guarantee, a
performance guarantee, or a related party
guarantee since different types may require
different accounting treatment and disclosure.

3. Ensuring the treatment for recognition criteria
is as per IND AS 109 ‘Financial Instruments’

4. Reviewing the disclosure requirements
for Corporate Guarantee in the
financial statements

INFORMATION OTHER THAN THE STANDALONE
FINANCIAL STATEMENTS AND AUDITOR’S
REPORT THEREON

The Board of Directors of the Company is responsible
for the preparation of other information. The other
information comprise the information included in the
Management Discussion and Analysis, Board’s Report
including Annexures to Board’s Report, Business
Responsibility & Sustainability Report Corporate
Governance and Shareholder’s Information but does
not include the Standalone 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 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, 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.

MANAGEMENT’S RESPONSIBILITY 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, changes in equity
and cash flows of the Company in accordance with
the accounting principles generally accepted in India,
including the Indian Accounting Standards 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 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 financial statement 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.

The Board of Directors are also responsible for
overseeing the Company’s financial reporting process.

AUDITOR’S RESPONSIBILITY

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 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 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.

REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS

1. 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 purpose 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.

c. The Company has no branch office and hence
the company is not required to conduct audit
under section 143 (8) of the Act;

d. 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
and returns (as per sub section 143(3));

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

f. During our audit we did not come across any
financial transaction or matters which might
have an adverse effect on the functioning
of the company.

g. On the basis of the written representations
received from the directors as on 31^st March,
2025 taken on record by the Board of Directors,
none of the directors is disqualified as on
31^st March, 2025 from being appointed as a
director in terms of Section 164 (2) of the Act;

h. We do not have any qualification,
reservation or adverse remark relating to the
maintenance of accounts and other matters
connected therewith.

i. 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 of the Act.

j. 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;

k. 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 (As amended):

i. The Company has disclosed the impact
of pending litigations on its financial
position in Note 40 of the Standalone
Financial Statements.

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

iii. During the year, no amounts were
required to be transferred to the Investor
Education and Protection Fund by the
Company. So, the question of delay in
transferring such sums does not arise.

iv. a. The management has represented

that, to the best of its knowledge and
belief, other than as disclosed in the
notes to accounts 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, 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 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 subclause (a) and (b) contain
any material misstatement; and

v. a. The company has paid dividend
during the year in accordance with
Section 123 of the Act

b. As stated in Note No. 45 of the
standalone financial statements, the
Board of Directors of the company
has proposed final dividend
for the year which is subject to
approval of the members in the
ensuing Annual General Meeting.
The amount of dividend declared
is in accordance with section 123
of the Act to the extent it applies to
declaration of dividend.