BEML Ltd — Audit Report / Information 2024

Jul 3, 2024

Schedule 'A' Company under Ministry of Defence, Govt. of India

Defence & Aerospace | Mining & Construction | Rail & Metro

Ref: CS/SE/468 03.07.2024

National Stock Exchange of India Ltd.	The BSE Limited
Listing Compliance Department	Listing Compliance Department
ExchangeComplex,BandraPlaza,Kurla-	P.J. Towers, 26th Floor,
Bandra (East),	Dalal Street,
MUMBAI- 400 051	MUMBAI- 400 001

Dear Sir / Madam,

Sub: Revised Independent Auditors' Report for the FY 2023-24. Ref: Letter no. CS/SE/2024-25/448 dated: 12.05.2024- Outcome of Board Meeting.

This is to inform that Independent Auditors' Report for the FY 2023-24 of BEML Limited is revised based on the observations issued by Comptroller and Auditor General of India and the same is enclosed herewith.

Thanking you,

For BEML Limited

• Digitally signed by Jai Gopal J;gopniviahajan Date: 2024.07.03 MahaJa n 16:46:34 +05'30' Jai Gopal Mahajan Executive Director (Finance) and Company Secretary & Compliance Officer ICSI Mem No.: 12578

Encl: As above

CIN:L35202KA1964GOI001530, GST NO. 29AAACB8433D12U www.bemlindia.in

INDEPENDENT AUDITOR'S REPORT

We are issuing this revised audit report which supersedes our earlier report dated 12.05.2024 concurring to the opinion of the Comptroller and Auditor General of india under Section 143(6)(b) of the Companies Act, 2013.

To the members of

BEML LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone Ind AS financial statements of BEML LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2024, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Cash Flow Statement for the year then ended, and other explanatory information and a summary of the significant accounting policies and Notes to the standalone Ind AS financial statements (hereinafter referred to as "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 315t March 2024, and 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 SAs are further described in the Auditor's Responsibilities for the Audit of the Standalone Ind AS Financial Statements section of this 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 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 on the standalone financial statements.

Key Audit Matters

Key Audit Matters ("KAM") are those matters that, in our professional judgment, were of the 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.

Key Audit Matter	How our audit addressed theKey Audit Matter
RevenueRecognition:andService 1.SaleContracts:CompanyproductsTheprincipalof thevaried and have usage in various sectors such saleas defense, mining & construction and metro standards.rail/conventional railways.Recognition of sale contracts vary from "at a withpoint in time" to "over a period of time" and transactions.some on "bill and hold" terms. The recognition 3.TermsmilestonesandIncodifferadd to the complexity.Werevenuerecognitionidentifiedasaaudit matter because,CompanyTheanda.itsstakeholdersrevenuefocuskeyonasaperformance indicator.Suchfocuscreatesincentiveanb.revenue to be overstated or recognised before completedcompanysatisfiestheitsperformance obligations.Certain performance obligations which valueccoredoactivitynotrelatethethetoofcompanyformbutpartof themakerecognitiontimeandvaluetheofcomplicated subject.revenuerecognitionThus,KeyisaMatter.	Assessed the appropriateness of the revenuerecognition policies of the company and whether itsare adoption is as per the covenants of the respectiveaccountingcontractsapplicableandEvaluateddesigncontrolsandthekeyof2.operating effectiveness of the relevant key controlsrevenuerespect toselectedrecognition, onPerformedsubstantiveselectingtestingbybetween samples of revenue transactions recorded duringcontracts. Amendments to original contracts the year by evaluating the underlying documents.4. Tested the revenue transactions recorded nearerendfinancialyeardatetheverifyingthebytodocuments todeterminewhether thekey underlyingrevenuerecognizedbeenappropriatehadin theexternal financial period.assumptionsmadeTestedthetheby 5.management in determining full or proportionatefor revenuerecognitionrespectcontractsofinoverperiodtimeverifyingbyofacontractual appropriate evidence.6. Validated the application of input cost method tometrocontractassetsarisingtheoutofconformcorrectnessand contractstodeliverables, completeness of cost booking.a 7. Validated the "bill and hold" principles adoptedby the company with the paper trails available withAudit the company.Examinedperformancesatisfactionof8.obligations and recognition of revenue in respect of
Refer:Policy.	Note Nos. 30 and Item No.2.2 A of Accounting recognitions based on milestone achievements inthe context of the overall sale contract.

Ph : 2499 5430, 2499 1385, 94430 70401, 94431 28378 email : jkmuralica@gmail.com

G. NATESAN & Co.,

Chartered Accountants

approachOurnonauditrevealanynotdidcompany'scompliancedeclaredwiththeaccounting policies, GAAP and Ind AS.

Inventories:Audit of Inventories comprise:Physical verificationa.Confirmation of third-party holdingsb.Valuation(8Obsolescenced.Some of the inventories held by the company obtained.are custom-made and of high value. The raw 3.passthroughmaterialsdifferentComponents,andevolveasgoods, Work-in-Progress and reach the stage teams.of Finished Goods.processesoutsourcedCertainarematerialsgivenpartiesarethirdtoprocessing and return.The company's products have evolved over the for the material portion of the inventory.changes,marketdesignyearsduetorequirementsandadvancements. Therefore, the marketability of to be in tune with costing principles.componentssparesmaterials,andof 7.discontinued models required to be validated materialsfor obsolescence.IND AS considering all relevant costs required ina detailed audit process, including the charging conditions.of overheads.declaredTheapplicationpolicytheofobsolescenceappropriatenessandalsoitsneeded to be validated.Inventories form a major portion of the total ofthe Balance Sheet. The focus on inventories isthus significant in the audit process and a KeyAudit Matter.Please refer Note No.12 and Accounting PolicyNo.M.Theinventoriesheldtotalasat31.03.2024 is Rs 2,25,590.38 lakhs

Principal Audit procedures performed include:System and internal controls are evaluated1.to ensure that there are no recording delinquencieswith respect to time, quantity and item.The variances between planned and actual2.consumption,werevalueandbothquantity,inexplanationswereflaggedvaluesandhighforproceduresAppliedauditvalidatethetoprocesses physical availability of the inventories as supportedSemi-finished by physical verification reports of the managementPerusedconfirmationsandpartythird4.physical verification reports, and matched with thewhere company's records. Variances if any, are reducedfor from inventory values.Sample checking of valuation methodology5.by the system was done through manual validationMethodology of loading actual overheads to 6.technological the inventory values were validated and confirmedredundancyrecognizingThepolicyofof(AccountingandpolicyM)No.Management's override of such policy was testedwith appropriate evidences to conform that suchThe valuation of inventories in accordance with policies as well as the override are reasonable andassessmentsmarkettunetechnicalwithapproachOurauditnotrevealanynondidcompany'scompliancedeclaredthewithon accounting policies, GAAP and Ind AS.

email : jkmuralica@gmail.com

Head Office : Chennai - 600 018.

New Product Development:The company is involved in development of anew product under a customer contract wheredifferent milestones have been prescribed forrevenue recognition.developmentprocessspreadTheoverisconsequentlyyearsanddifferentfinancialrevenue recognition.Design and product specifications are sourcedvendorfrommaterialsforeignandareamajorly sourced from local vendors.developmentTheinvolvescreationPPE,ofthough part of the deliverables, is expected tobe used by the company for future operationsphysically removedcannotandfrom thebeplace of installation.between the date of theThere isa timelagexecutioncontractandtimeactualofitsvariances,withoutleadingcostsanytovariation in price. This leads to assessment ofprofitability of the contract as a whole.	Principal Audit procedures performed include:Understanding the basic covenants of theicustomercustomercontractvis-a-visthemilestones specified for revenue recognition.Ascertaining the various cost components2.of the development process.UnderstandingcovenantswiththetheBsvendormilestonesspecifiedforeignandtheforrecognition of expenditure and liability.procedures toAppliedvalidateauditthat4,material issues and other direct expenditure of thedevelopment project are appropriately charged tothe project.Ascertainedcost of thethe totalproject,5.validated the costs that are actually incurred andcosts that are contracted to be incurred throughissue of purchase contracts.proceduresAppliedappropriateandaudit6.obtainedexplanationstechnicalcertificationandaboutcostsnatureincurredandthebeoftoestimated values.Obtainedexplanationstechnicaland7.justification for the proposed future use of the PPEbeing created for future use of the company.
The development is in progress where part ofthe costs is incurred and part of the costs areestimated.The factorsthe process of ascertaining overall costa.of the project vis-a-vis the contract price,The ongoing nature of the projectb.	proceduresabove hasOur auditas detailednotrevealed any.incorrect revenue recognition,a.deficiency in cost booking andb.incorrect capitalisationG
PPEcreatednaturebeingtheof(53whether to be classified as a capital asset orrevenue expenditure,ascertaining whether the overall projectd.requires recognition of any onerous provision.make this product development activity a KeyAudit Matter.

Ph : 2499 5430, 2499 1385, 94430 70401, 94431 28378 email : jkmuralica@gmail.com

Emphasis of Matter

We draw attention to Note No. 11 to the standalone financial statements regarding the company's outlay on the MAMC Consortium.

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

Information other than the Standalone 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.

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 and, in doing so, consider whether the 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.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 ("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 cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with relevant rules issued thereunder.

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 the 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 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 financial statements, management and 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 management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Board of Directors are 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 controls.

. 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 control 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 management.

. Conclude on the appropriateness of management's use of the going concern basis of accounting in preparation of Standalone Financial Statements 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.

Ph : 2499 5430, 2499 1385, 94430 70401, 94431 28378 email : jkmuralica@gmail.com

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 financial statements may be influenced. We consider quantitative materiality and qualitative factors (i) in 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 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 thé 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 uniess 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

1s As required by the Companies (Auditor's Report) Order,2020 ("the Order"), issued by the Central Government in terms of sub-section (11) of Section 143 of the Act, we give in Annexure A, a statement on the matters specified in Paragraphs 3 and 4 of the Order, to the extent applicable.

2, As required under 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.

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

d) In our opinion, the aforesaid Standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act and the Rules made thereunder.

e) Interms of Notification no. G.S.R.463(E)dt. 05.06.2015 issued by Ministry of Corporate Affairs, the provision of Section 164(2) of the Companies Act, 2013 in respect of disqualification of Director are not applicable to the Company.

f) With respect to adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure B;

Ph : 2499 5430, 2499 1385, 94430 70401, 94431 28378 email : jkmuralica@gmail.com

g) With respect to Directions issued by the Comptroller and Auditor General of India under Section 143 (5) we give our report in Annexure C:

h) The provisions of Section 197 are not applicable to this government company (in terms of MCA Notification NO.GSR 463 (E) dated 05th June 2015) as the managerial remuneration is paid as per the appointment letter from the Government of india, and

)] 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 explanations given to us:

i) The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements. [Refer Note No. 39(D)(1)(a)(ii)]

i) The company has made provision as required under Ind AS for material foreseeable losses on long term contracts-Rs 2,314.04 lakhs ( Previous Year-Nil). The company does not have any derivative contracts.

i) There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund

iv) The management has represented that, to the best of its knowledge and belief that no funds have been advanced to or in any other persons or entities, 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.

v) The management has represented that, to the best of its knowledge and belief that the company has not received any funds from any persons or entities, 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 other than those disclosed in the notes to accounts

vi) Based on the audit procedures that we considered reasonable and appropriate in the circumstances, nothing has come to our notice that that has caused us to believe that the representations under sub clause(iv) and (v) contain any material mis-statement.

vii) a. 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.

b. 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 Companies Act 2013.

c. 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.

Ph : 2499 5430, 2499 1385, 94430 70401, 94431 28378 email : jkmuralica@gmail.com

G. NATESAN & Co., Chartered Accountants

Head Office : No. 7/1, Fourth Street, Abiramapuram, Chennai - 600 018.

viii) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1, 2023. Based on our examination which included test checks, the company has used 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.

For G Natesan & Co,

Chartered Accountants

FRN : 002424S rae K Murali

Partner, M. No : 024842 UDIN: 2402.4%y2 pK DAQC %225 01.07.2024, Bengaluru

ANNEXURE-A TO THE INDEPENDENT AUDITOR'S REPORT

Referred to in Paragraph 1 under "Report on Other Legal and Regulatory Requirements" section

of our report to the Members of BEML Limited

i) (a) (A) The Company is maintaining proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment.

(B) The Company is maintaining proper records showing full particulars of intangible assets.

(b) The Company has a regular program of physical verification of its Property, Plant and Equipment by which all Property, Plant and Equipment are verified in a phased manner over a period of three years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and nature of its business. Pursuant to the program, certain Property, Plant and Equipment were physically verified by the Management during the year. In our opinion, and according to the information and explanations given to us, no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of our examination of records of the Company, the title deeds of immovable properties disclosed in the financial statements are held in the name of the Company, except in respect of the following properties

				(Values in Rs Lakhs)
Descriptionproperty	of Grosscarryingvalue	Whetherpromoter,directortheirrelativeoremployee	Periodindicateor whereappropriate	held- Reason for not being held inrange, name of company*
@SarovarFlatEnclave, Ranchi	10.12	No	23.12.1987	disputewithstate [Underauthorities
@ Ashadeep, Delhi Flat	2.80	No	01.05.1977	deeds(ObtainingtheTitleincompanynameunderisrogress.
Land @ Mysore	144.34	No	01.03.1985	Possession certificate is in the nameBEML,executionofof sale deed is under process.

(d) In our opinion and according to the information and explanations given to us, the company has not revalued its Property, Plant and Equipment (including Right of Use assets) or intangible assets or both during the year.

(e) In our opinion and according to the information and explanations given to us, no proceedings have been initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made there under.

2\ Chennai - 18 / 57/ Ph : 2499 5430, 2499 1385, 94430 70401, 94431 28378 S VS email : jkmuralica@gmail.com Z6d AceS

i) (a) The inventory has been physically verified by the management during the year excluding inventories that are in the possession of sub-contractors and other third parties. In our opinion the frequency of such verification is reasongble, the coverage and procedure of such verification by the management is appropriate. The company has maintained proper records of inventory. i

The discrepancies noticed on such physical verification between physical stock and book records have been properly dealt with in the books of accounts.

(b) According to the information and explanation given to us, the company has been sanctioned funded working capital limits of Rs 1,500 crores and non-funded working capital limits of Rs 3,000 crores from the banking sector. The audited/ Limited Review Financial Statements are submitted to the banks as and when sought for by them. Such statements are in agreement with the books of accounts.

iii) According to the information and explanations given to us, the company has not provided any security and stood guarantee during the year to any of its subsidiaries, joint ventures, and associates.

The Company has provided advance in the nature of loans during the year totalling to Rs 96.13 lakhs (Previous year-0.31 lakhs) to its subsidiaries. The balance outstanding as at 31.03.2024 in respect of loans to these subsidiaries is Rs 1,950.86 lakhs (Previous year Rs 1,854.73 lakhs).

The company has provided an advance in the nature of loan during the year to BEML LAND ASSETS LIMITED (BLAL) amounting to Rs 326.80lakhs and the balance outstanding as at 31.03.2024 is Rs 430.34 lakhs (Previous year Rs 103.54 lakhs), specifying the rate of interest applicable on such advance.

The terms and conditions of the grant of all the advance in the nature of loans given during the year and outstanding as at 31.03.2024 are not prejudicial to the interest of the company.

The company has not stipulated the schedule of repayment of principal and payment of interest in respect of the above advance in the nature of loans and therefore the reporting under clauses (c), (d) and (e) are not applicable.

The company has not granted any loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment.

• iv) The company being a Government company, the provisions of Section 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantees, and security, are not applicable.
• V) According to the information and explanations given to us, the Company has not accepted any deposits during the year and hence compliance with the directives issued by the Reserve Bank of India and the provisions of Section 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014, as amended with regard to acceptance of deposits are not applicable to the Company.
• vi) According to the information and explanations given to us, the Central Government has specified maintenance of Cost Records by the Company under Section 148 (1) (d) of the Companies Act, 2013. We have broadly reviewed these records and are of the opinion that prima facie, the prescribed accounts and records are made and maintained. However, we have not carried out any detailed examination of the cost records with a view to determine whether they are accurate or complete.

Ph : 2499 5430, 2499 1385, 94430 70401, 94431 28378 email : jkmuralica@gmail.com

vii) (a) According to the information and explanations given to us and on the basis of examination of books of accounts and records the company has been generally regular in depositing undisputed statutory dues including Goods and Services Tax, provident fund, employees' state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess, and all other statutory dues to the appropriate authorities except the following. The demands relating to TDS credit mismatch under Income Tax Act, 1961 outstanding as at the last date of the financial year 2023-24 and provided in table below are due for more than six months from the date, they became due.

Name of the Statute	Nature of Dues	Amount inRs Lakhs	Period towhich theamountrelatesAsst. Year	Duedate	Date of Payment
Income Tax Act,1961	Demands arisingout of defaults inTDS provisions	84.15	2007-08 to2022-23	NA	Not paid

(b) The following table provides the statutory dues referred to in sub-clause (a) which have not been paid on account of disputes, the amounts involved and the forum where dispute is pending:

BBStatueof theName	of Disputed Tax Nature0TSh)	Amount::g:':s':'ipenalty(inRs.Lakhs)	::ir'l::dtt'zamountrelates	FT)ril;mu?ehiesrePe':] din9
-	Excise Cases otherthan NCCDol	510210	Aug 2007 toFeb2013	CESTAT
Central Excise Act1944	CalarmiCalamityga"'?"a°""(",?gg °)y) Duty	231585	Apr2013 toJun2017	CESTAT
Service Tax Act, 19445	Service Tax Cases-	3637.95	Apr2009toJun 2017	Commissioner &CESTAT
CGST Acti20is	!	30373	2017-18&202021	AppellateAuthority
The Customs Act,1962	Lustoms Dty	3,161.66	Jan 2004 toMar 2020	Commissioner &CESTAT
The Customs Act,1962	Customs Duty	102593	Mar 2016 toMar 2020	B
Sub Total - Excise,Service Tax, GST &Customs	o	15,547.22
The KarnatakaMunicipal	Municipality Taxes KGF	563090	2002-03 to2021-2022	City MunicipalityCouncil - KGF

Ph : 2499 5430, 2499 1385, 94430 70401, 94431 28378 email : jkmuralica@gmail.com —'

Branches : Kumbakonam, Kochi, Trichy, Tanjore, Bangalore, Hyderabad,

G. NATESAN & Co,, Chartered Accountants

Head Office : No. 7/1, Fourth Street, Abiramapuram, Chennai - 600 018.

Corporation Act,1976	Property Tax	109.11	1995-96 to2004-05	City Civil Judge,Bangalore
Sub Total - MunicipalTaxes		2,739.31
Sales Tax Act ofVarious States	Sales Tax/.GST/ VAT	643.19	2010-11to2015-16	KarnatakaCommercial Tax
	Saleslet/ 05l VAT	28632	2007-08 to200809	Maharashtra Commercial Tax
	Sales Taf/ STVAT	42537	2008-09 to200910	West Bengal Commercial Tax
	Sales TaxV GoT/ VAT	302.75	2006-07 to2016-17	Jharkhand Commercial Tax
	T	53.26	2005-06 to200607	Odisha Commercial Tax
	Sales Tax / CST / VAT	Pi	- <	MadhyaPradeshCommercial Tax
Sub Total - SalesTaxes		1,812.01
Income Tax Act,1961	Defaults quer TDSProvisions	05.32	2010-11	NationalFaceless AppealCentre
Income Tax Act,1961	Defaults quer TDSProvisions	37.53	201213	NationalFaceless AppealCentre
EAmount Deposited	Excise, Service Tax,GST & Customs	223.07
Under Protest	Sales Tax / VAT	227077
Total	Total	2,493.84

viii) In our opinion and according to the explanations given to us, no transactions that are not recorded in the books of accounts have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).

ix) (a) According to the information and explanations given to us, we are of the opinion that the Company has not defaulted in repayment of loans to banks. There are no other borrowings.

(b) According to the information and explanations given to us, the company has not been declared as a wilful defaulter by any bank or financial institution or other lender. (c) The company has not received any term loans during the financial year under report.

(d) The funds raised on short term basis have not been utilized for long term purposes; (e) According to the information and explanations given to us the company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries, associates, or joint ventures,

Ph : 2499 5430, 2499 1385, 94430 70401, 94431 28378 email : jkmuralica@gmail.com

X) (a) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year. Accordingly, paragraph 3(x)(a) of the order is not applicable to the company.

(b) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures (fully, partially, or optionally convertible) during the year. Accordingly, paragraph 3(x)(b) of the order is not applicable to the company.

Xi) (a) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no fraud on the Company has been noticed or reported during the year.

(b) No report under sub- section (12) of section 143 of the Companies Act has been filed by the auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government.

(c) In our opinion and according to the explanation given to us, no whistle-blower complaints were received by the company during the year.

• xii) (a) According to the information and explanations given to us, in our opinion, the Company is not a Nidhi Company as prescribed under Section 406 of the Act. Accordingly, paragraph 3(xii) (a), (b) and (c) of the Order is not applicable to the Company.
• xiii) According to the information and explanations furnished to us, and based on our examination of books and records, we are of the opinion that all transactions with related parties are in compliance with Sections 177 and 188 of the Companies Act, 2013 where applicable and details have been disclosed in the standalone financial statements as per applicable Accounting Standards.
• xiv) (a) The company has an internal audit system commensurate with the size and nature of its business.

(b) All the reports of the Internal Auditors relating to the financial year 2023-24 and received up to the date of this report, were considered by the Statutory Auditor:

• xv) In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transactions with its directors or persons connected with them during the year and hence provisions of Section 192 of the Companies Act, 2013 are not applicable.
• xvi) (a) The Company is not required to be registered under Section 45-1 A of the Reserve Bank of India Act 1934 (2 of 1934).

(b) The company has not conducted any Non-Banking Financial or Housing Finance activities;

(c) The company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India;

(d) The company does not belong to any group.

• xvii) The company has not incurred cash losses in the financial year and in the immediately preceding financial year.
• xviii) There has been no resignation of the statutory auditor during the year.

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• xix) In our opinion, and according to the explanation given to us, and on the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, our knowledge of the Board of Directors' and management plans, we are of the opinion that no material uncertainty exists as on the date of the audit report and that the company is capable of meeting its liabilities existing at the date of Balance Sheet as and when they fall due within a period of one year from the Balance Sheet date.
• xx) () In our opinion and according to the explanation given to us, the company does not have any unspent CSR amount in respect of other than ongoing projects at the end of the year. Hence no amount is transferred to Fund specified under schedule VIl in respect of other than ongoing projects.

(b) In our opinion and according to the explanation given to us, the company does not have any unspent CSR amount in respect of ongoing projects at the end of the year. Hence no amount is transferred to Fund specified under schedule VII in respect of ongoing projects.

xxi) There have been no qualifications or adverse remarks by the respective auditors in the Companies (Auditor's Report) Order (CARO) report of the subsidiary company (to which this order is applicable) included in the consolidated financial statements.

For G Natesan & Co,

Chartered Accountants,

FRN: 002424S il

K Murali Partner, M No: 024842 UDIN: 24029542 BKDAQC T228 01.07.2024, Bengaluru.

ANNEXURE-B TO THE INDEPENDENT AUDITOR'S REPORT

Referred to in Paragraph 2 (f) under "Report on Other Legal and Regulatory Requirements" section of our report to the Members of BEML Limited

Report on the Internal Financial Controls with reference to Financial Statements under Clause

(i) of Sub-section 3 of Section 143 of the Companies Act, 2013

We have audited the Internal Financial Controls with reference to Financial Statements of BEML Limited (the Company) as at March 31, 2024 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Management's Responsibility:

The Company's Management is responsible for establishing and maintaining Internal Financial Controls with reference to Financial Statements based on the internal financial control over financial reporting criteria established by the Company considering the essential components of control stated in the "Guidance Note on Audit of Internal Financial Controls over Financial Reporting" issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate Internal Financial Controls with reference to Financial Statements that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company's policies, the safeguarding of its assets, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditor's Responsibility:

Our responsibility is to express an opinion on the Company's Internal Financial Controls with reference to Financial Statements based on our audit. We conducted our audit in accordance with the "Guidance Note on Audit of Internal Financial Controls over Financial Reporting" (Guidance Nole) issued by the Inslilute of Charlered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of Internal Financial Controls with reference to Financial Statements. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate Internal Financial Controls with reference to Financial Statements was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the Internal Financial Controls with reference to Financial Statements and their operating effectiveness. Our audit of Internal Financial Controls with reference to Financial Statements included obtaining an understanding of Internal Financial Controls with reference to Financial Statements, assessing the risk that material weakness exists, and testing and evaluating the design and operating effectiveness of internal financial control based on the assessed risk. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's Internal Financial Controls with reference to Financial Statements.

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Meaning of Internal Financial Controls with reference to Financial Statements:

A company's internal financial control with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control with reference to financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditure of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that could have material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to Financial Statements:

Because of the inherent limitations of Internal Financial Controls with reference to Financial Statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the Internal Financial Controls with reference to Financial Statements to future periods are subject to the risk that the Internal Financial Controls with reference to Financial Statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion and to the best of our information and explanations given to us, the Company has, in all material respects, adequate Internal Financial Controls with reference to Financial Statements and such Internal Financial Controls with reference to Financial Statements were operating effectively as at March 31, 2024, based on Internal Financial Controls with reference to Financial Statements criteria established by the Company considering the essential components of internal control stated in "Guidance Note on Audit of Internal Financial Controls over Financial Reporting " issued by the Institute of Chartered Accountants of India.

For G Natesan & Co,

Chartered Accountants

FRN : 002424S

Alf

K Murali Partner, M. No : 024842 UDIN: 24024842 BRDAGQC 8225 01.07.2024, Bengaluru

ANNEXURE-C TO THE INDEPENDENT AUDITOR'S REPORT

Referred to in Paragraph 2 (g) under 'Report on Other Legal and Regulatory Requirements" section of our report to the Members of BEML Limited

Report on the directions under sub-section 5 of Section 143 of the Companies Act, 2013 According to the information and explanations furnished to us and based on audit of the accounts of BEML Limited for the year ended 31.03.2024, we report hereunder on the directions given by the Comptroller and Auditor General of India.

Direction	Report	Impact
companyWhether thesystemhasin	Accordinginformationandtheto
processaccountingplacethetoall	explanations furnished to us and based
transactions through IT System? If yes,	examinationbooksonourofof	Nil
processingimplicationstheofof	accounts, we are of the opinion that the
accountingtransactionsoutsideIT	companynecessarysystemhasin
system on the integrity of the accounts	processaccountingplacethetoall
along with the financial implications, if	WetransactionsthroughSystem.IT
any may be stated	comeacrossinstancehaveanynot
	whereaccountingtransactionsany
	were processed outside the IT System
	during the year
Whether there is any restructuring of an	Based on our examination of books of
existing loan or cases of waiver/write	accounts,weopinionareof thethat
off of debts/loans/interest etc. made by	there are no such cases of restructuring	Nil
companyduelenderthethetotoa	casesexistingloananoforof
company's inability to repay the loan? If	waiver/write off of debts/loans/interest
yes, the financial impact may be stated.	etc. made by a lender to the company
	due to the company''s inability to repay
	the loan during the year.

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Chartered Accountants

G. NATESAN & Co.,

Head Office : No. 7/1, Fourth Street, Abiramapuram, Chennai - 600 018.

Direction	Report	Impact
specificschemesfromCentral/State ofagenciesaccounted Company,wereproperlyfor/utilizedasperitsterm	Whether funds received/receivable for Based on the examination of the booksaccountsandrecordsofthethecompanyhasnotand receivedany fundsfromGovernmentconditions? List the cases of deviation. Agencies for specific schemes duringthe financial year 2023-24.	Nil

For G Natesan & Co, Chartered Accountants FRN : 002424S

K Murali Partner, M. No : 024842 UDIN: 2024542 BKDARC 8228 01.07.2024, Bengaluru

G. NATESAN & Co., Chartered Accountants

Head Office : No. 7/1, Champak Mahal, Fourth Street, Abiramapuram, Chennai - 600 018.

INDEPENDENT AUDITOR'S REPORT

To the Members M/s BEML Limited

Report on the Audit of the Consolidated Ind AS Financial Statements

We are issuing this revised audit report which supersedes our earlier report dated 12.05.2024 concurring to the opinion of the Comptroller and Auditor General of India under Section 143(6)(b) of the Companies Act, 2013.

Qualified Opinion

We have audited the accompanying consolidated Ind AS financial statements of M/s.BEML Limited ("the Holding Company") and its subsidiaries (Holding Company and its subsidiaries together referred to as "the Group") which comprise the consolidated Balance Sheet as at 31st March 2024, and the consolidated Statement of Profit and Loss including Other Comprehensive Income, Consolidated Statement of Changes in Equity and the Consolidated Statement of Cash Flow for the year then ended, and notes to the Consolidated Ind AS financial statements, including a summary of Significant Accounting Policy Information and other explanatory information (hereinafter referred to as "the consolidated Ind AS financial statements").

In our opinion and to the best of our information and according to the explanations given to us, subject to the significance of the matter discussed in the Basis for Qualified opinion section of our report, the aforesaid consolidated 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 (Ind AS) prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standard) Rules, 2015 as amended and other accounting principles generally accepted in India, of the consolidated state of affairs of the Group as at March 31, 2024, of consolidated profit including other comprehensive income, consolidated changes in equity and its consolidated cash flows for the year then ended.

Basis for Qualified Opinion

We draw attention to Note. No:7 of the consolidated Ind AS financial statements relating to the investment of the holding company in BEML Mid-West Ltd., a joint venture company ( Associate). The financial information of the said joint venture company has not been consolidated due to non-availability of financial statements. Liquidation process has been initiated by NCLT.

The impact of the liquidation on the holding company is presently indeterminate. The holding company has made 100% provision for the diminution in the value of its investment in the associate.

/'erd Accd Ph : 2499 5430, 2499 1385, 94430 70401, 94431 28378 email : jkmuralica@gmail.com

As per the accounting principles, the financial statements of this joint venture should have been consolidated using proportionate consolidation method. The effects on the consolidated Ind AS financial statements, of the failure to consolidate this Joint Venture Company, net of provision for diminution already made in the value of the investment, has not been determined.

We conducted our audit of the consolidated Ind AS financial statements 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 Consolidated Ind AS Financial Statements section of our report.

We are independent of the Group and its associate 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 consolidated 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 qualified opinion on the consolidated financial statements.

Emphasis of Matter

We draw attention to Note No. 11 to the consolidated Ind AS financial statements regarding the holding company's outlay on the MAMC Consortium.

We draw attention to of Note 3B(ix)(a) to the consolidated Ind AS financial statements regarding possibility of surrender of the leased land due to non-compliance by the subsidiary company MAMC Industries Ltd to the terms of allotment by the Government of West Bengal.

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated 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.

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Assessedappropriatenesstheof the1.revenue recognition policies of the holdingcompany and whether its adoption is asproductsper the covenants of the respective saleHoldingprincipaltheofaccountingcontractsapplicableandstandards.constructionmetro2. Evaluated the design of key controls andandoperating effectiveness of the relevant keyrespectrevenuecontrolswithtorecognition, on selected transactions.Performedsubstantivetestingby3.selecting samples of revenue transactionsmilestonesrecorded during the year by evaluating therecognitionandIncobetweenunderlying documents.contracts.differrevenueTestedtransactionsthe4.recorded nearer to the financial year endunderlyingdateverifyingthebydocumentsdeterminewhetherrevenuerecognitionidentifiedtheas atorevenuerecognizedmatter because,beenhadtheinCompanyHoldingappropriate financial period.Theanda.its5. Tested the assumptionsmade by thestakeholdersfocusexternalonmanagementperformancerevenuedeterminingkeyasorfullinarevenueproportionalerecognitionindicator.incompletedSuch focuscreatesrespectcontractsincentiveoveranofarevenueappropriateoverstatedperiodtimeverifyingbybeforofortorecognisedevidence.beforeholdingthecompany satisfies its contractual6. Validated the application of input costperformance obligations.methodcontractvalueassetsthetoperformancearising out of metro contracts to conformCertainobligationscompletenesswhichcorrectnessandcoredonotrelate to thecostofcompanyholdingbooking.activityof the7. Validated the "bill and hold" principlesbut form part of the deliverables,adopted by the holding company with themaketimeandvaluetheofpaper trails available with the company.complicatedrecognitionaExamined satisfaction of performancesubject.8.Thus, revenue recognition is a Key Auditobligations and recognition of revenue in	Key Audit Matter	How our audit addressed theKey Audit Matter
	Revenue Recognition: Sale and Service
	Contracts:
	The
	Company are varied and have usage in
	various sectors such as defense, mining
	&
	rail/conventional railways.
	Recognition of sale conrtracts vary from
	"at a point in time" to "over a period of
	time" and some on "bill and hold" terms.
	The
	Terms
	Amendments to original contracts add to
	the complexity.
	We
	key audit
basedrespectrecognitionsonof	Matter.
milestone achievements in the context of	Refer:
andNo.2.2the overall sale contract.Nos.Item30Aof	Note
	Accounting Policy.
revealOur audit approach did notany non
compliance with the company's declared
accounting policies, GAAP and Ind AS.

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No. 7/1, Fourth Street, G. NATESAN & Co,, Chartered Accountants Abiramapuram,

Head Office : Chennai - 600 018.

Inventories:

Audit of Inventories comprise:

• a. Physical verification
• b. Confirmation of third-party holdings
• c. Valuation
• d. Obsolescence

Some of the inventories held by the holding company are custom-made and of high value. The raw materials pass through different processes and evolve as Components, Semi-finished goods, Work-in-Progress and reach the stage of Finished Goods.

Certain processes are outsourced where materials are given to third parties for processing and return.

The holding company's products have evolved over the years due to design changes, market requirements and technological advancements. Therefore, the marketability of materials, spares and components of discontinued models required to be validated for obsolescence.

The valuation of inventories in accordance with IND AS considering all relevant costs required a detailed audit process, including the charging of overheads.

The application of the declared policy on obsolescence and its appropriateness also needed to be validated.

Inventories form a major portion of the total of the Consolidated Balance Sheet. The focus on inventories is thus significant in the audit process and a Key Audit Matter.

Principal Audit procedures performed include:

• 1. System and internal controls are evaluated to ensure that there are no recording delinquencies with respect to time, quantity and item.
• 1. The variances between planned and actual consumption, both in value and quantity, were flagged for high values and explanations were obtained.
• 1. Applied audit procedures to validate the physical availability of the inventories as supported by physical verification reports of the management teams.
• 1. Perused third party confirmations and physical verification reports, and matched with the company's records. Variances if any, are reduced from inventory values.
• 1. Sample checking of valuation methodology by the system was done through manual validation for the material portion of the inventory.
• 1. Methodology of loading actual overheads to the inventory values were validated and confirmed to be in tune with costing principles.
• 1. The policy of recognizing redundancy of materials (Accounting policy No. M) and Management's override of such policy was tested with appropriate evidences to conform that such policies as well as the override are reasonable and in tune with technical assessments market conditions.

Our auditapproach did not reveal any noncompliance with the holding company's declared accounting policies, GAAP a Ind AS. KeSA

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Please refer Note No.12 and Accounting
Policy No.M. The total inventories held as
at 31.03.2024 is Rs 2,25,590.38 lakhs
New Product Development:	proceduresperformedPrincipalAuditinclude:
companyholdinginvolvedTheinisdevelopment of a new product under acustomerwherecontractdifferentmilestonesbeenprescribedhaveforrevenue recognition.The development process is spread overyearsfinancialanddifferentconsequently revenue recognition.productDesignandspecificationsaresourcedvendorfromforeignandamaterials are majorly sourced from local	Understandingthe basic covenants1.of the customer contract customermilestonesspecifiedvis-a-vis thefor revenue recognition.Ascertainingvariouscostthe2.componentsdevelopmenttheofprocess.Understanding the covenants with3.vendorandforeignthethemilestonesspecifiedforexpenditurerecognitionandofliability.proceduresAppliedauditto4.
vendors.developmentinvolvescreationTheofPPE, though part of the deliverables,isexpected to be used by the company foroperationscannotandfutureberemovedphysicallyfromplacetheofThereisinstallation.	materialvalidateissuesandthatexpenditureotherdirecttheofdevelopmentprojectarechargedappropriatelythetoproject.Ascertainedcosttheof thetotal5.project, validated the costs thatareactually incurred and costs that arecontracted to be incurred through
atime lag between the date of thecontract and actual time of its executionleading to costs variances, without anyvariationleadsprice.Thistoinassessmentprofitabilitytheofofcontract as a whole.	issue of purchase contracts.appropriateAppliedaudit6.procedures and obtained technicalexplanationsandcertificationaboutnaturecoststhebeoftoincurred and estimated values.
developmentwhereprogressTheinispart of the costs is incurred and part ofthe costs are estimated.The factors	Obtainedexplanationstechnical7.and justification for the proposedfuture use of the PPE being createdfor future use of the company.
the process of ascertaining overalla.project vis-a-viscostof thethecontract price,The ongoing nature of the projectb.of PPE being creatednaturethec.whetherclassifiedbeastoarevenueassetcapitalorexpenditure,	Our audit procedures asabovedetailedhas not revealed any.incorrect revenue recognition,a.deficiency in cost booking andb.incorrect capitalisationc.

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d.	ascertaining whether theoverallproject requires recognition of any
	onerous provision.
developmentmake this productactivity a
Key Audit Matter.

Information Other than the Consolidated Ind AS Financial Statements and Auditor's Report Thereon

The Holding Company's 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, Corporate Governance and Shareholder's Information, but does not include the consolidated Ind AS financial statements, standalone Ind AS financial statements and our auditor's report thereon.

Our opinion on the consolidated 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 consolidated Ind AS financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated Ind AS 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.

Responsibilities of Management and Those Charged with Governance for the Consolidated Ind AS Financial Statements

The Holding 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 consolidated Ind AS financial statements that give a true and fair view of the consolidated financial position, consolidated financial performance, including consolidated other comprehensive income, consolidated cash flows and consolidated changes in equity of the Group and its associate, in accordance with the IND AS specified under section 133 of the Act and accounting principles generally accepted in India.

The respective Board of Directors of the companies included in the Group and its associate are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the respective companies 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 statements that give a true and fair view and are free from material misstatement, whether due to fraud

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or error, which have been used for the purpose of preparation of the consolidated financial statements by the Directors of the Holding Company, as aforesaid.

In preparing the consolidated Ind AS financial statements, the respective Board of Directors of the companies included in the Group and its associate are responsible for assessing the ability of the group and its associate to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The respective Board of Directors of the companies included in the Group and its associate are responsible for overseeing the financial reporting process of the Group and its associate.

Auditor's Responsibility for the Audit of the Consolidated Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated 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 consolidated Ind AS financial statements.

e 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 consolidated Ind AS financial statements of the Group and its Associate , 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 Companies Act,2013, we are also responsible for expressing our opinion on whether the Group and its Associate 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 the management of the holding company.

¢ 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 ability of the Group and its associate 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

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consolidated 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 Holding Company and its Associate to cease to continue as a going concern.

« Evaluate the overall presentation, structure and content of the consolidated Ind AS financial statements, including the disclosures, and whether the consolidated Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

* Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group and its Associate to express an opinion on the consolidated Ind AS financial statements. We are responsible for the direction, supervision and performance of the audit of the financial statements of such entities included in the consolidated Ind AS financial statements of which we are the independent auditors. For the other entities included in the consolidated financial statements, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.

Materiality is the magnitude of misstatements in the consolidated Ind AS financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the 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 consolidated 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 consolidated 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.

Other Matters

The consolidated Ind As financial statements include the audited financial statements of two subsidiaries whose financial information reflect total assets of Rs 4,693.74 lakhs as at March 31,2024, total revenues of Rs 12.43 lakhs, net loss of Rs 124.62 lakhs for the year ended March 31, 2024. The financial statements of the two subsidiaries have not been audited by us. The financial statements of these subsidiaries have been audited by other auditors whose reports have been furnished to us by the management of the Holding Company and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, and our report in terms of sub-section (3) of Section 143 of the Act including report on Other Information, in so far as it relates to the aforesaid subsidiaries, is based solely on the reports of such other auditors.

The comparative financial information of the holding company for the year ended 31st March 2023 have been audited by another auditor. The report of the predecessor auditor on the comparative financial information dated 17" July 2023 expressed a modified opinion.

In respect of an erstwhile associate company M/s. BEML BRAZIL INDUSTRIAL LTDA ("BBIL") which was dissolved in accordance with laws of Brazil in May 2019, the procedure for closure of Unique Identification Number (UIN) issued by RBI has been initiated and pending with RBI.

Our opinion on the consolidated Ind AS financial statements, and our report on Other Legal and Regulatory Requirements below, is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors and regarding BBIL.

Report on Other Legal and Regulatory Requirement

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 purposes of our audit of the aforesaid consolidated Ind AS financial statements.

b) Except for the effects of the matter described in the Basis for Qualified Opinion section above, in our opinion proper books of account as required by law relating to preparation of the aforesaid Consolidated Ind AS Financial Statements have been kept so far as appears from our examination of those books and the report of the other auditors;

) The Consolidated Balance Sheet, Consolidated Statement of Profit and Loss including Other Comprehensive Income, Consolidated Statement of Cash Flow and Consolidated Statement of Changes in Equity dealt with by this Report are in agreement with the books of accounts maintained for the purpose of preparation of the consolidated Ind AS financial statements.

d) Except for the effects of the matters described in the Basis for Qualified Opinion section above, in our opinion, the aforesaid Consolidated Ind AS Financial Statements comply with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act, read with relevant rules issued there under;

Ph : 2499 5430, 2499 1385, 94430 70401, 94431 28378 y@ email : jkmuralica@gmail.com \ooC

e) As per notification No. GSR 463(E) dated 5" June, 2015 issued by the Ministry of Corporate Affairs, Government of India, Section 164(2) of the Companies Act, 2013 is not applicable to the Holding Company and other Subsidiaries and Associate.

f) With respect to the adequacy of the internal financial controls with reference to consolidated financial statements of the Group and the operating effectiveness of such controls, refer to our separate Report in the "Annexure A".

g) The provisions of Section 197 are not applicable to the holding company (in terms of MCA Notification NO.GSR 463 (E) dated 05th June 2015) as the managerial remuneration is paid as per the appointment letter from the Government of India, and no director remuneration was paid by the subsidiary companies, and

h) 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:

i. Except for the effects of the matters described in the Basis for Qualified Opinion section above, the Group has disclosed the impact of pending litigations on its financial position in its consolidated financial statements - [Refer Note 39(D)(1)(a)(ii)].

ii. The Group has made provisions as required under Ind AS for material foreseeable losses on long-term contracts-Rs 2,314.04 lakhs ( Previous Year -Nil). The company did not have any derivative contracts.

iii. There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Holding Company.

iv. (a) The respective managements of the Holding Company and its Subsidiaries have represented that, to the best of their knowledge and belief, 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 Holding Company and its Subsidiaries 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;

(b) The respective managements of the Holding Company and its Subsidiary have represented that, to the best of their knowledge and belief, no funds have been received by the Holding Company and its Subsidiary and Associate 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, 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 by us that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that

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Branches : Kumbakonam, Kochi, Trichy, Tanjore, Bangalore, Hyderabad,

has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e) as provided under (a) and (b) above contain any material misstatement.

V. (a) The final dividend paid by the Holding Company during the year in respect of the same declared for the previous year is in accordance with Section 123 of the Act as applicable to the extent it applies to payment of dividend. No dividend has been declared by the subsidiary companies.

(b) The interim dividend declared and paid by the holding Company during the year and until the date of this audit report is in accordance with section 123 of the Companies Act 2013.

(c) The Board of Directors of the holding company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as applicable to the extent it applies to declaration of dividend.

Vi. Based on our examination which included test checks and that performed by the respective auditors of the subsidiary and its associate which are companies incorporated in India whose financial statements have been audited under the Act, the company, subsidiary and its associate have 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 int he software. Further, during the course of our audit, we and respective auditors of the above referred subsidiary and its associate did not come across any instance of audit trail feature being tampered with.

1. With respect to the matters specified in paragraphs 3(xxi) and 4 of the Companies (Auditor's Report) Order, 2020 (the "Order"/ "CARQ") issued by the Central Government in terms of Section 143(11) of the Act, to be included in the Auditor's report, according to the information and explanations given to us, and based on the CARO reports issued by us for the Company and issued by auditors of the companies included in the consolidated financial statements of the Company, to which reporting under CARO is applicable, we report that there are no qualifications or adverse remarks in these CARO reports.

Place: Bengaluru For G.Natesan and Co

Date: 01.07.2024 Chartered Accountants FRN 002424S

A

CA K Murali Partner M.No:024842 UDIN: 2 4024suz BKDARD 6134

Annexure A to the Independent Auditors' report

(Referred to in our report of even date)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act"}

We have audited the internal financial controls with reference to consolidated financial statements of M/s BEML Limited ("the Holding Company") and its subsidiary (Holding Company and its subsidiaries together referred to as "the Group") and its Associate as of March 31, 2024 in conjunction with our audit of the consolidated financial statements of the Group for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The respective Board of Directors of the Holding company and its Subsidiary and its Associate which are companies incorporated in India responsible for establishing and maintaining internal financial controls based on the internal control with reference to financial statements criteria established by the respective companies considering the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Group Company's and Associate's internal financial controls with reference to consolidated financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both issued by the Institute of Chartered Accountancy of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to consolidated financial statements were established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with reference to consolidated financial statements and their operating effectiveness. Our audit of internal financial controls with reference to consolidated financial statements included obtaining an understanding of internal financial controls with reference to consolidated financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained, and the audit evidence obtained by the other Auditors in terms of their Reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the Company's Internal Financial Controls system with reference to Financial Statements of the Group and its Associate.

Meaning of Internal Financial Controls with reference to consolidated financial statements

A Company's internal financial control with reference to consolidated financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Consolidated financial statements for external purposes in accordance with generally accepted accounting principles. A Company's internal financial control with reference to consolidated financial statements includes those policies and procedures that:

• 1. pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
• 1. provide reasonable assurance that transactions are recorded as necessary to permit preparation of Consolidated financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
• 1. provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company's assets that could have a material effect on the Consolidated financial statements.

Inherent Limitations of Internal Financial Controls with reference to consolidated financial statements

Because of the inherent limitations of internal financial controls with reference to consolidated financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to consolidated financial statements to future periods are subject to the risk that the internal financial control with reference to consolidated financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Group and its Associate has, in all material respects, an adequate internal financial controls system with reference to consolidated financial statements and such internal financial controls with reference to consolidated financial statements were operating effectively as at March 31, 2024, based on the internal control with reference to consolidated financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

Other Matters

Our aforesaid reports under section 143(3) (i) of the act on the adequacy and operating effectiveness of the internal financial controls with reference to consolidated financial statements in so far as it Subsidiary and Associate as at 31-03 2024 which are companies incorporated in India, is based on the corresponding report of the auditor of such company incorporated in India.

Place:Bengaluru For G.Natesan and Co Date: 01.07.2024 Chartered Accountants FRN 002424S

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CA K Murali M.No :024842 '\° ocC UDIN: 2402 Yxys BKDAQD &Y