Dekson Castings Ltd Auditor Reports

TO THE MEMBERS

OF

DEKSON CASTINGS LIMITED

Report on the Audit of the Financial Statements -

Opinion

We have audited the financial statements of Dekson Castings Limited ("the Company"), which comprise the balance sheet as at 31^sl March, 2025, and the statement of Profit and Loss and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31^s1 March, 2025, its profit and loss accounts and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the 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 financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion

Information other than the financial statements and auditors report thereon

The Companys board of directors is responsible for the preparation of the other information. The other information comprises the information included in the Boards Report including Annexures to Boards Report but does not include the financial statements and our auditors report thereon.

Our opinion on the 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 financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

Key Audit Matters

Key Audit Matters	Audit Procedures Followed
Information regarding dues/payments/interest to Micro, Small & Medium Enterprises i.e bifurcation of MSME & Non-MSME, if any, included in Trade Payables in Financial Statements is as per the data provided by the management	We have verified the MSME certificates of the Trade payables. Only those vendors who have provided the IVISME certificates are classified under MSME trade payables. For rest suppliers, we have not received any data of MSME Registration and External Confirmation.
Depreciation not provided on Lexus Car purchase price rs. 86.07 lakhs as the same was not used for company work.	We have relied on managements representation letter for the companies contentions.
Company has gone through debt restructuring process during the reporting period. A moratorium is granted for 24 months to all existing term loans with Saraswat Bank and also Additional letter of credit sanctioned of Rs. 3.50 Crore and FITL of Rs. 3.65 Crore.	We have checked all the statements of newly availed finances and sanction letters containing clauses of restructuring. We have confirmed that, All liabilities have been accounted for as per new sanction terms.
Statements, Data or Confirmation was not made available for LIC of India Gratuity Fund appearing in financial statements with running balance of Rs.13,53,450/-	We have communicated requirement of confirmations, statements or ledgers for the above however corresponding evidence was not made available. We therefore hereby declare that the balance is subject to changes as and when statement is received.

Our Opinion is not modified in respect of above matters *

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

The Companys 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 financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the accounting Standards specified under section 133 of the Act. This responsibility aiso 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 applipation inappropriate 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 materia! misstatement, whether due to fraud or error,

In preparing the financial statements, management is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Companys financial reporting process. Auditors Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 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 materia! misstatement of the 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.

* Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

* Conclude on the appropriateness of managements 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 Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern

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

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 financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors 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. -

Emphasis of Matter Paragraph

a) We draw attention to the financial statements, which states that the Company has incurred significant losses during the year ended on March 31_f 2025 and as at that date, its accumulated losses have resulted in erosion of its net worth.

The Companys current ratio is positive as on the reporting date, However excess non current liabilities and erosion of General reserve balance due to continuous losses from three financial years, value of Shareholders fund is currently negative.

In our opinion, Going Concern of the entity will not be affected due to this negative networth as, Current ratio is positive and Management has plans in foreseeable future to infuse funds from promoters by converting their existing unsecured loans into share capital.

Along with it Management has proposed Development of portion of Land owned by Company and sale thereof. We have obtained Management representation regarding the above future plans to address the issue of Negative networth.

Our report is not qualified due to this matter.

b) During Current reporting period, an Amount of Rs. 14,91,499/- is paid to Saraswat Co Operative Bank Ltd. Nature of Payment for this amount is Undisclosed. We have made reasonable efforts for verification of relevant documents from Company or Availing external confirmation from bank; However no prudent evidence has been made available by the management. Currently the amount is disclosed in Financial statements as part of Current Assets.

Due to non-availability of Sufficient and appropriate evidence in this regards, we hereby Modify the report only to the extent of above transaction or series of transactions.

Comparative analysis if such amount is considered as expenses will be as follows;

Particulars	As per Financial Statements	After Considering above amount as Expenditure	Percentage Changes
Net Profit	(3,30,53,078)	(3,45,44,577)	(4.51%)
Other Current Assets	3,62,01,610	3,47,10,111	(4.12%)
Shareholders Fund	(2,28,98,690)	(2,43,90,189)	(6.51%)

Report on Other Legal and Regulatory Requirements

1, As required by the Companies {Auditors Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. As required by Section 143 (3) of the Act, 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 and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014

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

f) With respect to the adequacy of the internal financial controls 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, in our opinion and to the best of our information and according to the explanations given to us;

i. The Company does not have any pending litigations which would impact its financial position.

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

iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

„ Place: Aurangabad Date: 29/05/2025 UDIN: 25117992BMODLY6731

Annexure to the Independent Auditors Report of even date

To

The Members

Dekson Castings Limited.

On the financial statements for the year ended 31 st March,2025

Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit. We hereby report that;

(i) Fixed Assets

(a)

(A) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment.

(B) The Company has maintained proper records showing full particulars of

Intangible Assets.

(b) The major Property, Plant and Equipment of the company have been physically verified by the management at reasonable intervals during the year and no material discrepancies were noticed on such verification.

(c) According to the information and explanation given to us, the title deeds of the immovable properties are held in the name of thecompany.

(d) The Company has not revalued its Property, Plant and Equipment or intangible assets or both during the year,

(e) According to the information and explanation 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 (4JLpf 1988) and rules made thereunder during the year.

(ii) - Details of Inventories

(a) The management has conducted physical verification of inventory at reasonable intervals during the year, in our opinion, the coverage and procedure of such verification by the management is appropriate. As informed to us, any discrepancies of 10% or more in the aggregate for each class of inventory were not noticed on such verification.

However, in respect of certain items, like Aluminum turning scrap Aluminum dross the inventories were verified by the management on a visual estimation basis which has been relied upon by us. Recovery percentage of Aluminum from dross and turnings is as estimated by the management.

Physical verification of Stock statements, Inventory ledger and relevant stock records is made. Auditor has relied on Management representations for method, valuation and maintenance of documentation for inventories.

(b) The company has been sanctioned working capital limits of Rs 10 Crores by Saraswat Co- op Bank Ltd. , Cidco Aurangabad Branch , on the basis of security of current assets. The Company files monthly stock - debt statements to the bank. The information filed in these statements generally matches with the books of accounts. Stock statements provided to bank were submitted for verification.

Stock includes 2.23 Crore stock purchased on LC.

(iii) Loans and Advances

The company has not granted any loans, secured or unsecured to company, firms or other parties covered in the register maintained u/s 189 of the Companies Act, 2013 as on 31.03.2025.

(iv) Loans to Directors

The Company has during the year, not made investments in, provided any guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any other parties. Accordingly, the provisions of clauses 3(iii) of the Order are not applicable.

(v) Acceptance of Deposits

The Company has not accepted any deposits or amounts which are deemed to be deposits under the directives of the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the. Companies Act, 2013 and the rules framed not applicable. The company has accepted the unsecured loans of Rs. 1,49,65,766/- from its directors as follows:

Vikram Ashok Dekate	Rs. 3,37,68,247
Chetan Ashok Dekate	Rs 1,23,81,330
Vikram Ashok Dekate (HUF)	Rs1.00.00,000/-
Total	Rs.5,61,49,577/-

The above unsecured loans are not treated as deposits as per the Companies (Acceptance of Deposits) Rules 2014 as these loans are obtained from the directors of the company. Further the company has obtained a declaration from the directors specifying that these amount is not being given out of funds acquired by them from borrowings or accepting loans or deposits from others.

(vi) Maintainence of Cost Records

To the best of our knowledge and belief, the Central Government has not specified maintenance of cost records under sub-section (1) of Section 148 of the Act, in respect of Companys products/ services. Accordingly, the provisions of clause 3(vi) of the Order are not applicable.

(vii) Statutory Dues

(a) The Company is regular in depositing undisputed statutory dues including Goods and Services Tax, provident fund, employees state insurance, income-tax, sales, duty of customs and any other statutory dues, as applicable, with the appropriate authorities However there has been slight delays in Majority cases. Further, no undisputed amounts payable in respect thereof were outstanding at the year-end for a period of more than six months from the date they became payable.

(b) There are no dues in respect of Goods and Services Tax, provident fund, employees state insurance, income-tax, duty of customs, and any other statutory dues. However reconciliation of Input tax credit availed has not been provided to us. The amount of GST payable as per books as on 31 03 2025 is un-reconciled. There is mismatch between ITC availed as per books of accounts and ITC availed (in Form 3B) as per GST portal. Same facts have been reported by Internal auditor in his report. Details have been obtained from Management through MRL

(viii) Undisclosed Income

No instances have been found of any undisclosed Income.

(ix) Repayment of Loans

(a) In our opinion, the company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender during the year; however there are few instances of delay in repayment of term loan instalments.

(b) Company is not declared wilful defaulter by any bank or financial institution or other lender;

(c) According to the information and explanation given to us, term loans were applied for the purpose for which the loans were obtained;

(d) According to the information and explanation given to us, funds raised on short term basis have not been utilised for long term purposes;

(e) According to the information and explanation 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;

(f) According to the information and explanation given to us, the company has not raised loans during the year on the pledge of securities held in its subsidiaries, joint ventures or associate companies; However Company has restructured its existing debts and have been granted moratorium of 24 months to all existing loans and additional Letter of Credit facility has been granted to Company amounting to Rs. 3.50 Crore along with Funded Interest Term Loan with sanctioned limit of 3.65 Cr.

(x) Money raised as Capital.

(a) The Company has not raised moneys by way of initial public offer or further public offer

(including debt instruments) during the year;

(b) According to the information and explanation given to us, the Company as not made any preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally convertible) during the year.

(xi) Fraud Reporting

According to the information and explanation given to us, any fraud by the company or any fraud on the company has not been noticed or reported during the year;

(xii) Nidhi Company

Company is not a Nidhi company, accordingly provisions of the Clause 3(xii) of the Order is not applicable to the company.

(xiii) Transactions with Related Parties

According to the information and explanations given to us, we are of the opinion that all transactions with related parties are in compliance with Section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the

Financial Statements etc.,as required by the Accounting Standards and the Companies Act, 2013.

According to the information and explanations given to us, we are of the opinion that all transactions with related parties are in compliance with section 177 and 188 of companies act, 2013 where applicable and the details have been disclosed in the financial statements etc., as required by the accounting standards and the companies act, 2013. Or according to the information and explanations given to us, the company has not undertaken any transactions with related parties as mentioned in section 177 and 188 of companies act, 2013, accordingly the provisions of clause 3{xiii) of the order are not applicable to the company (b) According to the information and explanation given to us, the Company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally convertible) during the year.

(xiv) Internal Audit

a) According to the information and explanations given to us, the company has an internal audit system commensurate with the size and nature of its business;

b) We have considered the reports of the internal auditors for the period under audit while forming opinion for current reporting period.

(xv) Non Cash Transactions

According to the information and explanations given to us, we are of the opinion that the company has not entered into any non-cash transactions with directors or persons connected with him and accordingly, the provisions of clause 3(xv) of the order is not applicable. Or the company has entered into non-cash transactions with directors or persons connected with him and according to the information and explanations given to us, the requirements of section 192 of the companies act, 2013 have been complied with;

(xvi) NBFC Reporting

a) The company is a non-banking financial company as registered under section 45-ia of the reserve bank of india act, 1934

b) 1934, accordingly the provisions of sub-clause (b) of clause 3(xvi) of the order is not applicable;

(xvii) Cash Losses

The company has incurred cash loss of Rs 15,93,127/- in the previous financial year.

(xviii) Changes / Resignation of Auditors -

There has been no resignation of the statutory auditors during the year and accordingly, the provisions of clause 3(xviii) of the Order is pot applicable;

(xviii) Material Uncertainty as per Ratio Analysis

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 and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report indicating that company is incapable 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.

We, however, state that this is not an assurance as to the future viability of the company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by ihe company as and when they fall due.

(xix) Funds transferred to GSR Activity

The provisions of Section 135 towards corporate social responsibility are not applicable on the ?? company Accordingly, the provisions of clause 3(xx) of the Order is not applicable.

(xx) Details of Qualifications if any in Standalone Financial Statements

The reporting under clause (xxi) is not applicable in respect of audit of standalone financial statements of the Company. Accordingly, no comment has been included in respect of said clause under this report

Place: Aurangabad Date: 29.05.2025