We have audited the accompanying standalone Ind AS
financial statements of Isgec Heavy Engineering Limited

("the Company"), which comprise the Balance Sheet as at
31^st March 2026, the Statement of Profit and Loss (including
the Statement of Other Comprehensive Income), the
Statement of Changes in Equity and the 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
(hereinafter referred to as "the standalone Ind AS financial
statements").

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 ("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 31^st March 2026, and
its profit including other comprehensive income, changes in
equity and its cash flows 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), as 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 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 standalone Ind AS
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 Ind AS
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 Ind AS financial statements of the current
period. 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 matters described below to be the key audit
matters to be communicated in our report.

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

The Company's management and Board of Directors are
responsible for the other information. The other information
comprises the information included in the Company's
Annual Report but does not include the standalone Ind AS
financial statements and our auditor's report thereon. The
Company's annual report is expected to be made available
to us after the date of this auditor's report.

Our opinion on the standalone Ind AS 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 Ind AS
financial statements, our responsibility is to read the
other information when it becomes available and, in doing
so, consider whether the other information is materially
inconsistent with the standalone Ind AS financial statements
or our knowledge obtained in the audit or otherwise appears
to be materially misstated.

Responsibility of management and those charged with
governance for the Standalone Ind AS 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 Ind AS financial statements
that give a true and fair view of the financial position,
financial performance including other comprehensive
income, changes in equity and the cash flows 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 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 Ind AS
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 Ind AS 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 for the Audit of the Standalone Ind
AS Financial Statements

Our objectives are to obtain reasonable assurance about
whether the standalone Ind AS 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 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 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 Ind AS 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 manner that achieves fair
presentation.

Materiality is the magnitude of misstatements in the
standalone Ind AS financial statements that, individually or
in aggregate, makes it probable that the economic decisions
of a reasonably knowledgeable user of the standalone Ind
AS financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i)
planning the scope of our audit work and in evaluating the
results of our work; and (ii) to evaluate the effect of any
identified misstatements in the standalone Ind AS financial
statements.

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 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 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 Act, we give in the Annexure -A, which forms a part
of this report, a statement on the matters specified in
paragraph 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
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 appears from our examination of such
books.

(c) The Balance Sheet, Statement of Profit and
Loss (including Other Comprehensive Income),
the Statement of Changes in Equity and the
Statement of Cash Flows dealt with by this Report
are in agreement with the books of account;

(d) In our opinion, the aforesaid standalone Ind AS
financial statements comply with the Accounting
Standards specified under Section 133 of the
Act, read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended.

(e) On the basis of written representations received
from the Directors as on 31^st March 2026 and taken

on record by the Board of Directors, we report that
none of the Directors is disqualified as on 31^st
March 2026 from being appointed as a Director
in terms of Section 164(2) of the Companies Act,
2013.

(f) 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-
B".

(g) 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
as amended, in our opinion and to the best of
our information and according to the explanation
given to us:

(a) The Company has disclosed the impact of
pending litigations on its financial position in
its standalone Ind AS financial statements -
Refer Note 42 to the standalone Ind AS financial
statements.

(b) The Company has made provision, as required
under the applicable law and accounting
standards, for material foreseeable losses, if
any, on long-term contracts including derivative
contracts.

(c) There has been no delay in transferring amounts,
required to be transferred, to the Investor
Education and Protection Fund by the Company.

(d) i) The management has represented that, to the

best of its knowledge and belief, other than
as disclosed in the Note 52 to the standalone
financial statements, no funds have been
advanced or loaned or invested (either from
borrowed fund or share premium or any other
sources of kinds 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, 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.

ii) The management has represented that,
to the best of its knowledge and belief, no
funds have been received by the Company
from any person(s) or entity(ies), including
foreign entity ("Funding Parties"), with
the understanding, whether recording in
writing or otherwise, that the Company
shall, whether, directly or indirectly, lend or
invest in other person or entities identified
in any manner whatsoever by or on behalf of
Funding Parties ("Ultimate Beneficiaries") or
provide any guarantee, security, or the like on
behalf of the Ultimate Beneficiaries; and

iii) Based on such audit procedures that were
considered reasonable and appropriate in
the circumstances, nothing has come to our
notice that has caused us to believe that the
representation under sub-clause (i) and (ii)
contains any material misstatement.

e) The final dividend paid by the Company during
the year in respect of the same declared for the
previous year is in accordance with section 123 of
the Companies Act 2013 to the extent it applies to
payment of dividend.

As stated in note 51(c) to the standalone Ind AS
financial statements, the Board of Directors of
the Company have proposed final dividend for
the year which is subject to the approval of the
members at the 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.

f) 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 year 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 in respect of such
accounting software. Additionally, the audit trail
feature of prior year(s) has been preserved by the
Company as per the statutory requirements for
record retention.

3. 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:

In our opinion and to the best of our information
and according to the explanations given to us, the
managerial remuneration for the year ended 31^st March
2026 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.

For SCV & Co. LLP
Chartered Accountants
Firm Regn. No: 000235N/ N500089Sanjay Vasudeva
PartnerPlace: Noida Membership No.: 090989Dated: 27 May 2026 ICAI UDIN:26090989YEOEAC8338