Dharani Sugars & Chemicals Ltd Auditor Reports

To The Members Of Dharani Sugars And Chemicals Limited Qualified Opinion

We have audited the accompanying standalone financial statements of Dharani Sugars and Chemicals Limited ( the Company ),which comprise the Balance Sheet as of 31st March 2026, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and the Statement of Cash Flows for the year ended 31st March 2026 and notes to financial statements, including summary of material accounting policies and other explanatory information ( hereinafter referred to as the Standalone Financial Statements ).

In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matters described in the Basis for Qualified Opinion in our report, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013 ( the Act) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian

Accounting Standards) Rules 2015, as amended, ( Ind AS ) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31 2026, and its profit, total comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Qualified Opinion

We draw attention to the following matters:

1. The Company has incurred substantial losses and has accumulated losses resulting in erosion of net worth as at March 31, 2026. Further, the manufacturing facilities and operations of the Company have remained non-operational for a prolonged period and the Company has defaulted in repayment of significant borrowings, settlement obligations and statutory dues.

The manufacturing plants and major fixed assets of the Company have remained idle for a prolonged period. The Companys ability to recommence operations is dependent upon mobilisation of substantial working capital, settlement of overdue farmer dues and availability of adequate sugarcane for the ensuing crushing seasons.

Further, pursuant to withdrawal of CIRP proceedings, the Company had entered into a Master Restructuring

Agreement ( MRA ) dated May 24, 2024 with India

Debt Resolution Company Limited ( IDRCL ), acting as trustee on behalf of National Asset Reconstruction

Company Limited ( NARCL ), for restructuring of the outstanding borrowings of the Company. During the year, the Company committed breaches of repayment obligations and financial covenants stipulated under the MRA, including non-payment of instalments falling due under the agreed repayment schedule, non-fulfilment of security related conditions precedent, non-creation of Debit Service Reserve Account ( DSRA ), delays in operationalisation of monitoring mechanisms, non-payment of farmer dues and availing of additional indebtedness without prior lender approval. Consequently, IDRCL, through its legal counsel, issued a Default Notice dated February 07, 2026 granting time for one month to cure the subsisting Events of Default and also reserved its rights to initiate recovery proceedings before the Honble Debt Recovery Tribunal ( DRT ). However, the Company could not remedy the defaults within the stipulated timeline and accordingly, the restructuring arrangement may be cancelled and the concessions and reliefs granted thereunder may be withdrawn. However, the lender has not recalled the loan till the date of our audit report Further, the Sugar Development Fund ( SDF ) Loan secured by the fixed assets of Unit-III (excluding refinery assets and harvester machines) was covered under a One Time Settlement ( OTS ) sanctioned by the Government of India for an amount of INR 6,111 Lakhs and vide letter dated October 13, 2025, the repayment timeline under the OTS was extended up to April 06, 2026. However, the Company defaulted in r e p a y m e n t w i t h i n t h e e x t e n d e d t i m e l i n e . Consequently, the administrative approval for the OTS arrangement stands revoked and the original liabilities together with applicable interest and other charges have become repayable by the Company.

The aforesaid events and conditions indicate the existence of a material uncertainty that may cast significant doubt on the Companys ability to continue as a going concern.

2. The Company continues to face significant liquidity and cash flow constraints which adversely impact its ability to recommence operations and meet its financial and operational obligations in a timely manner. The manufacturing plants and major fixed assets of the Company have remained idle and non-operational for a prolonged period.

Further, the sugar manufacturing business is inherently dependent upon availability of sugarcane, which is a seasonal agricultural crop influenced by various factors including climatic conditions, cultivation patterns, recovery levels and cane availability in the command area. The ability of the Company to successfully recommence and sustain operations is dependent upon timely availability and procurement of adequate sugarcane supplies during the relevant crushing seasons, apart from availability of adequate working capital and operational funding. According to the explanations provided to us, the Company is presently engaged in discussions and negotiations with existing lenders and other stakeholders in relation to restructuring, settlement and revival arrangements.

3. We draw attention to Note 16 of the financial statements, which discloses borrowings from directors

& Intercorporate Loans from related parties. The Company has not provided for interest expense on these borrowings as per the agreed terms. In our view, the omission of such provision has resulted in an understatement of finance costs and current liabilities. The total outstanding from Directors and Related parties stands at INR 21410.18 Lakhs as on 31st March 2026.

4. We further draw attention to the settlement obligations payable to sugarcane farmers pursuant to the settlement arrangement approved under the restructuring framework. As per the terms of the arrangement, the second and final instalment aggregating to INR 36.08 Crores payable to the Ryots remained unpaid as at March 31, 2026.

5. The Company has defaulted in repayment of a loan availed from I Heart Properties Private Limited amounting to INR 2,863.19 Lakhs, including accrued interest of INR 393.19 Lakhs, which remained overdue as at March 31, 2026.

6. We draw attention to Note No.5 to the financial statements which explains the Companys investment in Appu Hotels Private Limited ( investee Company ). The carrying amount of investment as at 31st March 2026 is INR 1455.39 Lakhs. In the opinion of the management the carrying amount of investments is reflective of fair value of investments and is recoverable; thus no adjustment were made in the carrying value of investments in financial statements. In our opinion the carrying value of investments is not reflective of fair value of investments as per the IND AS 113 - Fair Value Measurements .

7. We were not provided with balance confirmations as at 31st March 2026 for trade receivables, trade payables, advances received/ paid and for deposits received/ paid. Based on the above we are unable to report the impact on standalone financial statements due to non-receipt of confirmations.

8. The equity shares of the Company were suspended from trading on the National Stock Exchange of India and Bombay Stock Exchange (BSE) with effect from July 03, 2023, pursuant to initiation of liquidation proceedings by the Honble National Company Law Tr i b u n a l , C h e n n a i B e n c h , v i d e O r d e r I A (IBC)/380/CHE/2023 in IBA/976/2019 dated June 27, 2023. Further, vide NSE Circular Ref. No. 0815/2023 dated June 30, 2023, the Exchange notified suspension of trading in the equity shares of the Company.

The Company has made application to NSE and BSE for restoration of the trading of its Equity Shares.

We conducted our audit of the Financial Statements in accordance with the standards on Auditing ( SAs ) specified under Section 143(10) of the Act. Our responsibilities under those standards are further described in the Auditors Responsibilities for the Audit of 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 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 financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone financial statements of the current period. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

In our opinion and based on the information and explanations given to us, there are no other key audit matters to be communicated in our report, other than those more fully described in the Basis for Qualified Opinion section of our report on the standalone financial statements.

Information Other than the Financial Statements and Auditors Report Thereon

The Companys Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Boards report including Annexures to Boards Report but does not include the standalone financial statements and our auditors report thereon.

Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements, or our knowledge obtained in 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 Standalone Financial Statement

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 standalone 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 Ind AS specified under Section 133 of the Act. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 control, 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 or error.

In preparing the standalone financial statements, management and Board of Directors 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 the Board of Directors, 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 Responsibility for the Audit of the 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 auditors 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 c o l l u s i o n , f o r g e r y, i n t e n t i o n a l o m i s s i o n s , misrepresentations, or the override of internal control. Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls 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 the 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 Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions and outcome of revival plan may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.

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

Report on Other Legal and Regulatory Requirements

1. The Companies (Auditors Report) Order, 2020 ( the Order ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act is applicable for the company. (Refer Annexure A to the Independent Auditors Report).

2. As required by section 143(3) of the Act, we report that: a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit. b. In our opinion, proper books of account as required by law have been kept by the company so far as it appears from our examination of those books. c. The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account.

d. In our opinion, the aforesaid Standalone Financial Statements comply with the Ind AS specified under Section 133 of the Act, except for the matters referred to in the basis for qualified opinion section of this report.

e. On the basis of the written representations received from the directors as on March 31, 2026 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2026 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 . Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companys internal financial controls with reference to Standalone Financial Statements.

g. With respect to the other matters to be included in the Auditors Report in accordance with the requirements of section 197 (16) of the Act, as amended, in our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act; and h. With respect to the other matters to be included in the Auditors 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 financial statements-Refer Note 41 Commitments and Contingent Liability to the financial statements; i. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; ii. There has been no delay in transferring amounts, required to be transferred, to the investor education and protection fund by the Company; iii. The management has represented that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts; a. no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or e n t i t y ( i e s ) , i n c l u d i n g f o r e i g n e n t i t i e s 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; and b. no funds have been received by the company from any person(s) or entity(ies), including foreign entities Funding Parties, with the understanding, whether recorded in writing or otherwise, that the company shall, 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.

c. Based on audit procedures carried out by us, that we have considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us believe that the representations under sub-clause (a) and (b) contain any material misstatement. iv. The Company has not declared or paid any dividends during the year and accordingly reporting on the compliance with section 123 of the Companies Act, 2013 is not applicable for the year under consideration.

v. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining the Books of Accounts using accounting software which has a feature of recording Audit Trail (edit log) facility is applicable to the company with effect from 1st April 2023 and accordingly reporting under Rule 11(g) of Companies (Audit and Auditors) Rules 2014 is applicable for the financial year ended 31st March 2026.

Annexure A to the Independent Auditors Report

(Referred to in Paragraph 1 under Report on Other Legal and Regulatory Requirements section of our report to the members of Dharani Sugars and Chemicals Limited of even date)

To the best of our information and according to the explanations provided to us by the Company and the books of account and records examined by us in the normal course of audit, we state that (i) In respect of the Companys property, plant and equipment, right-of-use assets and intangible 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 Company has carried out physical verification of Property, Plant and Equipment and right-of-use assets during the year and no material discrepancies were reported to us. However, the manufacturing facilities and major fixed assets of the Company have remained non-operational and idle for a prolonged period.

(c) Based on our examination of the property tax receipts, sale deed/transfer deed/ conveyance deed provided to us, we report that, the title in respect of immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favor of the lessee), disclosed in the financial statements included under Property, Plant and Equipment are held in the name of the Company as at the balance sheet date.

In respect of immovable properties given as collateral for loans from banks and financial institutions, the title deeds were deposited with the said banks/ financial institutions and the Company is in the process of obtaining a confirmation from the said banks that the title deeds are in the name of the Company.

(d) The Company has not revalued any of its property, plant and equipment (including right-of-use assets) and intangible assets during the year. Accordingly, clause 3 (i) (d) of the Order is not applicable.

(e) No proceedings have been initiated during the year or are pending against the Company as at March 31, 2026 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.

(ii) (a) Based on our examination of the records of the Company, physical verification of inventory has been conducted by the company during the financial year but the company has not undertaken any commercial operations during the year.

(b) The Company has not been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks or financial institutions on the basis of security of current assets during the year. Accordingly, reporting under clause 3(ii)(b) of the Order is not applicable to the Company.

(iii) The Company has not made investments in, Companies and granted unsecured loans to other parties, during the year, in respect of which: (a) The Company has not provided any loans or advances in the nature of loan or stood guarantee or provided security to any other entity during the year. Hence reporting under clause 3(iii)(a) of the Order is not applicable.

(b) In our opinion, the company has not made investments granted loans, during the year. (c) In respect of loans granted by the Company, the schedule of repayment of principal and payment of interest has been stipulated and the repayments of principal amounts and receipts of interest are generally regular as per stipulation.

(d) In respect of loans granted by the Company, there is no overdue amount remaining outstanding as at the balance sheet date. (e) No loan granted by the Company which has fallen due during the year, has been renewed or extended or fresh loans granted to settle the overdue of existing loans given to the same parties.

(f) 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 during the year. Hence reporting under clause 3(iii)(f) is not applicable.

The Company has not made investments in Firms and Limited Liability Partnerships during the year. Further the Company has not provided any guarantee or security or granted any advances in the nature of loans, secured or unsecured, to Companies, Firms, Limited Liability Partnerships or any other parties.

(iv) The Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of loans granted, investments made and guarantees and securities provided, as applicable.

(v) The Company has not accepted any deposit or amounts which are deemed to be deposits. Hence, reporting under clause 3(v) of the Order is not applicable.

(vi) The maintenance of cost records has not been specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013 for the business activities carried out by the Company is not applicable for the year. Hence, reporting under clause (vi) of the Order is not applicable to the Company.

(vii) In respect of statutory dues:

(a) In our opinion, the Company has not been regular in depositing undisputed statutory dues, including Goods and Services tax, Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Service Tax, duty of Custom, duty of Excise, Value Added Tax, Cess and other material statutory dues applicable to it with the appropriate authorities. Consequently, there are statutory outstanding dues for more than six months and those are listed in Annexure 1 .

(b) Details of statutory dues which have not been deposited as on March 31, 2026, on account of disputes are given in Annexure 2 .

(viii) There were no transactions relating to previously unrecorded income that 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 and based on our examination of the records of the Company, the Company has defaulted in repayment of dues to banks, financial institutions and other lenders. The borrowings had earlier been classified as Non-Performing Assets ( NPA ) by the respective lenders and the consortium of banks had assigned the loans to National Asset Reconstruction Company Limited

( NARCL ). Pursuant thereto, a Master Restructuring Agreement ( MRA ) dated May 24, 2024 was entered into between the Company and India Debt Resolution Company Limited ( IDRCL ), acting on behalf of NARCL as trustee.

During the previous financial year, as part of the restructuring arrangement under the MRA, the Company had issued 1,708 Secured Non-Convertible Debentures ( NCDs ) aggregating to INR 1,708 Lakhs, carrying interest at 12% per annum compounded annually and redeemable on May 21, 2029, towards the unsustainable debt portion. The said NCDs were issued for consideration other than cash.

Further, unsustainable debt amounting to INR 33,465 Lakhs was disclosed under contingent liabilities pursuant to the terms of the MRA. However, during the current year, the Company breached the repayment obligations and financial covenants stipulated under the MRA, including non-payment of instalments falling due under the agreed repayment schedule. Consequently, the restructuring arrangement may be cancelled and the concessions and reliefs granted thereunder may be withdrawn. Accordingly, the liabilities covered under the restructuring arrangement, including the aforesaid unsustainable debt, may become repayable by the Company. However, the lender has not recalled the loan till the date of our audit report. Hence the unsustainable debt is continuing to be disclosed as contingent liability.

Further, the Sugar Development Fund ( SDF ) Loan secured by the fixed assets of Unit-III (excluding refinery assets and harvester machines) was covered under a One Time Settlement ( OTS ) sanctioned by the Government of India for an amount of INR 6,111 Lakhs. The repayment timeline under the OTS was extended up to April 06, 2026 vide letter dated October 13, 2025. However, the Company defaulted in repayment within the extended timeline, resulting in withdrawal of the concessions granted under the OTS arrangement and reinstatement of the original liability together with applicable interest and other related charges. The authority via letter dated 22nd April 2026, has informed the company about the cancellation of OTS arrangement.

b. In our opinion, and according to the information and explanations given to us, the company has not been declared as a wilful defaulter.

c. In our opinion and according to the information and explanations given to us, no term loans have been obtained during the year. Also refer the basis for qualification section of our report on the standalone financial statements.

d. In our opinion and according to the information and explanations given to us and subject to our comments in the basis for qualification section of our report on the standalone financial statements, funds raised on short term basis have not been utilised for long term purposes.

e. On an overall examination of the financial statements of the Company, the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries.

f. The Company has not raised loans during the year on the pledge of securities held in its subsidiaries, joint ventures or associate companies during the year and hence reporting on clause 3(ix)(f) of the Order is not applicable.

(x) a. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) during the year and hence reporting under clause 3(x)(a) of the Order is not applicable. b. The Company has not made any preferential allotment or private placement of shares or fully, partially or optionally convertible debentures during the year under review. Accordingly, reporting under clause 3(x)(b) of the Companies (Auditors Report) Order, 2020 is not applicable to the Company.

However, as on 31st March 2026, the said shares had not been issued in dematerialised form and were pending in-principle approval from the stock exchanges. Consequently, the share capital issued against the debt remains neither dematerialised nor listed as on the reporting date.

In our opinion and according to the information and explanations given to us, the Company has complied with the requirements of Sections 42 and 62 of the Companies Act, 2013 in respect of the said allotment, except for the pending listing and dematerialization due to regulatory approval.

(xi) a. No fraud by the Company and no material 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 in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and upto the date of this report. c. According to the information and explanations given to us including the representation made to us by the management of the Company, there are no whistle-blower complaints received by the Company during the year. (xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is not applicable.

(xiii) In our opinion, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013 with respect to applicable transactions with the related parties and the details of related party transactions have been disclosed in the Standalone Financial Statements as required by the applicable accounting standards subject to the qualification made in the Audit Report.

(xiv) a. In our opinion, the Company has an adequate internal audit system commensurate with the size and the nature of its business. b. We have considered, the internal audit reports for the year under audit, issued to the Company during the year and till date, in determining the nature, timing and extent of our audit procedures.

(xv) In our opinion, during the year the Company has not entered into any non-cash transactions with its Directors or persons connected with its directors and hence provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.

(xvi) a. In our opinion, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Hence, reporting under clause 3(xvi)(a), (b) and (c) of the Order is not applicable. b. In our opinion, there is no core investment company within the Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016) and accordingly reporting under clause 3(xvi)(d) of the Order is not applicable.

(xvii) The company has incurred cash losses of INR 6077.46 lakhs during the financial year INR and the cash losses during the immediately preceding previous year is INR 6281.94.

(xviii) There has been no resignation of the statutory auditors of the Company during the year. Accordingly, clause 3 (xviii) of the Order is not applicable.

(xix) According to the information and explanations 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 standalone financial statements and our knowledge of the plans of the Board of Directors and management and based on our examination of the evidence supporting the assumptions, we draw attention to the Basis for Qualified Opinion section of our report.

The matters described therein indicate the existence of a material uncertainty that may cast significant doubt on the Companys ability to meet its liabilities existing at the date of the 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. Our reporting is based on the facts existing 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 the Company as and when they fall due.

(xx) The provisions of section 135 of the Act are not applicable to the Company during the year and accordingly, clause 3 (xx) of the Order is not applicable.

(xxi) In our opinion and according to the information and explanations given to us, the Company does not have investments in subsidiaries/associates or joint venture companies. Accordingly, clause 3 (xxi) of the Order is not applicable.

For Srivatsan & Associates
Chartered Accountants
Firm Registration No: 014921S

N.Srivatsan
Proprietor
Membership No. 230195
UDIN: 26230195EREKRU8828

Place: Cheenai
Date:16th, May 2026