EFC I Ltd Auditor Reports

To the Members of EFC (I) Limited - Report on Audit of Standalone Financial Statements

Opinion: Audited Ind AS Standalone Financial Statements - Balance Sheet as at March 31, 2026; Statement of Profit and Loss incl. Other Comprehensive Income; Statement of Cash Flows; Statement of Changes in Equity for year ended; notes incl. significant accounting policies & other explanatory information. In our opinion, statements give information required by Companies Act 2013 and true and fair view in conformity with accounting principles generally accepted in India - state of affairs as at March 31, 2026; profit incl. OCI; cash flows; changes in equity.

Basis for Opinion: Audit conducted per Standards on Auditing (SAs) under section 143(10) of Companies Act 2013; independent per ICAI Code of Ethics and ethical requirements; audit evidence sufficient and appropriate.

Key Audit Matters:

Key Audit Matter	Auditors Response
Revenue recognition and accounting for lease and sub-lease arrangement	Our audit procedures with respect to this matter included, but were not limited to, the following:
Refer note-2(f) to the standalone financial statements for material accounting policy information and note-33 for lease related disclosures..	(a) Assessed the Companys accounting policies for lease and sub-lease arrangements and evaluated their compliance with the requirements of Ind AS 116.
The Companys primary business involves taking properties on lease and sub-leasing the same to customers on a monthly rental basis under various contractual terms. These arrangements are accounted for in accordance with Ind AS 116 Leases, which requires significant management judgment.	(b) Reviewed lease and sub-lease agreements on sample basis to understand key terms, renewal and termination option and evaluated managements interpretation of the same.
	(c) Evaluated managements basis for classification of leases as finance or operating leases, considering the transfer of risks and rewards.
Classification of leases and sub-leases as either operating or finance leases requires interpretation of contract terms and assessment of the extent to which risks and rewards of ownership are transferred.	(d) Recalculated lease liabilities and ROU assets on sample basis and tested the accuracy of underlying computations.
The Company performs manual calculations for lease liabilities and right-of-use (ROU) assets, which increases the risk of error due to the volume of contracts and variations in their terms.	(e) Reviewed the accounting treatment for early terminations, including remeasurement of lease liabilities and corresponding adjustments.
Given the materiality of these balances, the level of judgment involved, and the inherent risk of error in manual computations, this matter was considered a key audit matter and required significant audit effort.	(f) Scrutinized journal entries related to revenue recognized during the year based upon risk-based criteria, to identify unusual or irregular items.
	(g) Ensured the adequacy and appropriateness of disclosures made in the standalone financial statements in accordance with the requirements of applicable accounting standards.

Revenue from interior and fit out projects	(a) Evaluated the appropriateness of the managements assessment that the satisfaction of performance obligations relating to construction and fit-out projects is over time in accordance with Ind AS 115;.
Refer note-2(e) to the standalone financial statements for material accounting policy information and note-22 for details of revenue recognized and related disclosures.	(b) Understood the process for determining the progress of performance obligations which has been reviewed periodically by independent experts based on surveys of the construction and fit-out projects and approved by appropriate levels of management;
Revenue from construction and fit-out projects is recognised over a period of time using output method of measuring progress towards complete satisfaction of performance obligation in accordance with the principles of Ind AS 115, Revenue from contracts with customers (Ind AS 115). Significant management judgement is required in identification of performance obligations, determination of the Companys rights to receive payments for performance completed till date, determination of progress of the performance obligations as per contract and impact due to contract modifications, if any. Changes in these judgements and the related estimates as contracts progress can result in material adjustments to revenue and margins.	(c) Assessed the professional competence and objectivity of the managements expert;
Considering the materiality of amounts and significance of management judgement in estimates involved, fit-out projects is identified as a key audit matter for the current year audit.	(d) on a sample basis and recomputed revenue recognised during the year with respect to ongoing and completed construction and fit-out projects, by inspecting underlying contracts, work completion certificates supporting the progress of satisfaction determined by the managements expert for ongoing projects and handover documents for completed projects;
	(e) Performed other substantive audit procedures including obtaining debtor confirmations on a sample basis and reconciling revenue recorded during the year with statutory returns;

Other Information: Board of Directors responsible for other information (Boards Report); auditors opinion does not cover other information; no assurance conclusion; read other information for material inconsistency with financial statements/audit knowledge; nothing to report.

Managements Responsibility for Ind AS Financial Statements: Board responsible per section 134(5) of Companies Act 2013 for preparation giving true and fair view per accounting principles generally accepted in India incl. Ind AS under section 133 read with Companies (Indian Accounting Standards) Rules 2015; responsibility includes maintenance of adequate accounting records, safeguarding assets, preventing/detecting frauds/irregularities, selection/application of accounting policies, reasonable/prudent judgments/estimates, design/implementation/maintenance of adequate internal financial controls.

Auditors Responsibilities (cont.)

Management responsible for assessing going concern ability; disclosing going concern matters; using going concern basis unless liquidation/ceasing operations/no realistic alternative. Board also responsible for overseeing financial reporting process.

Auditors Responsibilities: Obtain reasonable assurance whether financial statements free from material misstatement (fraud/error); issue report with opinion. Reasonable assurance is high level but not guarantee that audit per SAs will always detect material misstatement. Misstatements material if individually or in aggregate could reasonably be expected to influence economic decisions of users. Professional judgment & skepticism throughout. Also:

? Identify/assess risks of material misstatement (fraud/error); design/perform responsive audit procedures; obtain sufficient appropriate evidence. Fraud risk higher than error risk (collusion, forgery, intentional omissions, misrepresentations, override of internal control).

? Understand internal control relevant to audit to design appropriate procedures; under section 143(3)(i) also responsible for expressing opinion on adequacy of internal financial controls and operating effectiveness.

? Evaluate appropriateness of accounting policies and reasonableness of accounting estimates/disclosures.

? Conclude on appropriateness of going concern basis; based on evidence, whether material uncertainty exists; if so, draw attention in report or modify opinion; conclusions based on evidence up to date of report; future events/conditions may cause cessation of going concern.

? Evaluate overall presentation, structure, content incl. disclosures; whether financial statements represent underlying transactions/events fairly.

Communicate with those charged with governance re planned scope/timing, significant audit findings, significant deficiencies in internal control. Provide statement of compliance with ethical requirements re independence; communicate relationships/matters bearing on independence and safeguards where applicable.

Report on Other Legal and Regulatory Requirements:

1. Per Companies (Auditors Report) Order, 2020 issued under section 143(11), statement in Annexure A on matters in paragraphs 3 and 4, to extent applicable.

2. Per Section 143(3): (a) Sought/obtained all information and explanations necessary. (b) Proper books of account kept per law. (c) Balance Sheet, Statement of Profit and Loss incl. OCI, Cash Flow Statement, Statement of Changes in Equity agree with books of account.

Audit Report (cont.)

(d) Ind AS Standalone Financial Statements comply with Accounting Standards under Section 133 read with Companies (Indian Accounting Standards) Rules 2015, as amended. (e) Based on written representations from directors as on March 31, 2026 - none disqualified under Section 164(2). (f) Internal financial controls over financial reporting - refer separate Report in Annexure B. (g) Remuneration paid to directors during year in accordance with Section 197. (h) Per Rule 11 of Companies (Audit and Auditors) Rules 2014: i. No pending litigations impacting financial position. ii. No long-term contracts incl. derivatives with material foreseeable losses. iii. No amounts required to be transferred to Investor Education and Protection Fund. iv. (a) Management represented: no funds advanced/loaned/invested (from borrowed funds/share premium/other sources) to any other person/entity incl. foreign entities (Intermediaries) with understanding that Intermediary shall lend/invest in Ultimate Beneficiaries or provide guarantee/security on their behalf. (b) Management represented: no funds received from any person/entity incl. foreign entities (Funding Parties) with understanding that Company shall lend/invest in Ultimate Beneficiaries or provide guarantee/security on their behalf. (b) Based on audit procedures - nothing causing belief that representations under Rule 11(e) sub-clauses (a) and (b) contain material misstatement. v. No equity dividend declared or paid during the year. vi. Accounting software has audit trail (edit log) capability; operated throughout the year for all relevant transactions; no instance of tampering; audit trail preserved per statutory record retention requirements.

For Mehra Goel & Co, Chartered Accountants, FRN: 000517N; Roshan Daultani, Partner, Membership No. 137405, UDIN: 26137405QZBRXEX8018; Place: Pune; Date: May 28, 2026.

Annexure A: CARO 2020

i. a. (A) Proper records maintained showing full particulars incl. quantitative details and situation of property, plant and equipment, capital work-in-progress and relevant details of right-of-use assets. (B) No intangible assets - clause not applicable. b. PPE physically verified by management along with right-of-use assets - reasonable given size/nature; no material discrepancies. c. Company does not own immovable property; immovable property used is held under duly executed lease agreement in favor of Company - Clause 3(i)(c) not applicable. d. No revaluation of PPE (incl. ROU assets) or intangible assets during year - Clause 3(i)(d) not applicable. e. No proceeding initiated/pending for holding benami property under Benami Transactions (Prohibition) Act 1988 - Clause 3(i)(e) not applicable.

ii. a. Company has no inventory - Clause 3(ii)(a) not applicable. b. No working capital limits sanctioned in excess of ?5 crore in aggregate at any time from banks/financial institutions on security of current assets - Clause 3(ii)(b) not applicable.

iii. Company has not provided advances in nature of loans to companies, firms, LLPs during year. Made investments in, provided guarantee, security and granted loans to companies during year:

? a. Provided loans and guarantees during year; no security or advances in nature of loan.

Details:

Sr. Particulars	Guarantees	Loans
(A) Aggregate granted/provided during year - Subsidiary	\u20b9 28,119 Lakh	\u20b9 15,064.65 Lakh
Joint Venture	Nil	Nil
Others	Nil	\u20b9 210.55 Lakh
(B) Balance outstanding at balance sheet date - Subsidiary	\u20b9 18,119 Lakh	\u20b9 6,976.99 Lakh
Joint Venture	Nil	Nil
Others	Nil	\u20b9 162.07 Lakh

b. Investments made and terms/conditions of grant of all loans to companies and loans/advances in nature of loans (incl. employee advances) not prejudicial to Companys interest. Company has not provided guarantees or security in respect of loans during year - not commented upon.

c. No default in repayment of loans/borrowings or payment of interest to any lender; however, in certain related-party loans, interest accrued at year end and remaining unpaid added to loan amount outstanding at year end per contractual terms.

d. Terms for repayment of interest not stipulated - unable to make specific comment for overdue interest portion.

e. No loan/advance in nature of loan granted falling due during year renewed/extended/fresh loans granted to settle overdues of existing loans to same parties.

f. No loans/advances in nature of loans granted repayable on demand or without specifying terms/period of repayment.

iv. Complied with sections 185 and 186 re loans, investments, guarantees, security, as applicable.

v. No deposits accepted / no amounts deemed deposits under sections 73-76 and Companies (Acceptance of Deposits) Rules 2014 - Clause 3(v) not applicable.

vi. Central Government has not prescribed maintenance of cost records under Section 148(1) for products manufactured/services provided - Clause 3(vi) not applicable.

vii. a. Amounts deducted/accrued for undisputed statutory dues (GST, PF, Income-Tax, other statutory dues) regularly deposited with appropriate authorities except for withholding taxes . No undisputed amounts payable in arrears as at 31 March 2026 for period more than six months from date payable. b. No statutory dues referred in sub-clause (a) not deposited on account of any dispute.

viii. No transactions previously unrecorded as income surrendered/disclosed in tax assessments under Income Tax Act 1961 as income during year.

ix. a. No default in repayment of loans/borrowings or payment of interest to any lender. b. Not declared wilful defaulter by any bank/financial institution/government/authority. c. Money raised by term loans applied for purposes obtained. d. No funds raised on short-term basis used for long-term purposes.

e. No funds taken from any entity/person to meet obligations of subsidiaries. f. No loans raised during year on pledge of securities held in subsidiaries/joint ventures.

x. a. No money raised by initial public offer/further public offer (incl. debt instruments) - Clause 3(x)(a) not applicable. b. No preferential allotment/private placement of shares or convertible debentures - Clause 3(x)(b) not applicable.

xi. a. No fraud by/on Company noticed/reported during audit (considering materiality per Standards on Auditing). b. No report under Section 143(12) filed by auditors in Form ADT-4 per Rule 13 of Companies (Audit and Auditors) Rules 2014 with Central Government. c. No whistle-blower complaints received by Company during year.

xii. Not a Nidhi Company; Nidhi Rules 2014 not applicable - Clause 3(xii) not applicable.

xiii. Related-party transactions compliant with Sections 177 and 188, where applicable; details disclosed per Ind AS 24 in Standalone Financial Statements.

xiv. a. Internal audit system commensurate with size/nature of business. b. Considered internal audit reports issued till date for period under audit.

xv. No non-cash transactions with directors or connected persons - Section 192 not applicable.

xvi. a. Not required to be registered under Section 45 IA of RBI Act 1934 - Clause 3(xvi)(a) not applicable. b. Not engaged in Non-Banking Financial or Housing Finance activities - Clause 3(xvi)(b) not applicable. c. Not a Core Investment Company (CIC) per RBI regulations - Clause 3(xvi)(c) not applicable. d. Group (per CIC (RBI) Directions 2016) does not have any CIC.

xvii. No cash losses in current financial year and immediately preceding financial year.

xviii. No resignation of statutory auditors during year - Clause 3(xviii) not applicable.

xix. Based on financial ratios, ageing, expected realisation of financial assets/payment of financial liabilities, knowledge of Board/management plans, evidence supporting assumptions - no material uncertainty as on audit report date that Company cannot meet liabilities existing at balance sheet date when due within one year. Not assurance of future viability; based on facts up to report date; no guarantee all liabilities falling due within one year will be discharged as and when due.

xx. Company fully spent required CSR amount; no unspent CSR amounts requiring transfer to Schedule VII fund or special account under Section 135(6) - Clause 3(xx) not applicable for year.

xxi. Clause 3(xxi) not applicable to Standalone Financial Statements - no comment included.

For Mehra Goel & Co, Chartered Accountants, FRN: 000517N; Roshan Daultani, Partner, Membership No. 137405, UDIN: 26137405QZBRXE8018; Place: Pune; Date: May 28, 2026.

Annexure B: IFC Over Financial Reporting

(Referred to in paragraph 2(f) under Report on other legal and regulatory requirements of even date)

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

Audited internal financial controls over financial reporting of EFC (I) Limited as at March 31, 2026, in conjunction with audit of Standalone Financial Statements for year ended on that date.

Managements Responsibility: Management responsible for establishing/maintaining internal financial controls based on criteria established by Company considering essential components of internal control per ICAI Guidance Note on Audit of Internal Financial Controls Over Financial Reporting. Responsibilities include design, implementation, maintenance of adequate internal financial controls operating effectively for orderly/efficient conduct of business, safeguarding assets, prevention/detection of frauds/errors, accuracy/completeness of accounting records, timely preparation of reliable financial information per Companies Act 2013.

Auditors Responsibility: Express opinion on internal financial controls over financial reporting based on audit; conducted per ICAI Guidance Note and Standards on Auditing under Section 143(10) to extent applicable; comply with ethical requirements; plan/perform audit to obtain reasonable assurance whether adequate controls established/maintained and operating effectively in all material respects. Audit involves procedures to obtain evidence about adequacy of controls system and operating effectiveness; obtaining understanding, assessing risk of material weakness, testing/evaluating design and operating effectiveness based on assessed risk; procedures depend on auditors judgment incl. risk assessment of material misstatement (fraud/error). Because of matter described in Disclaimer of Opinion paragraph, unable to obtain sufficient and appropriate audit evidence to provide basis for audit opinion on internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting: Process designed to provide reasonable assurance regarding reliability of financial reporting and preparation of Ind AS Standalone Financial Statements for external purposes per GAAP. Includes policies/procedures: (i) maintenance of records accurately/fairly reflecting transactions and dispositions of assets; (ii) reasonable assurance transactions recorded as necessary to permit preparation per GAAP, receipts/expenditures only per management/director authorisations; (iii) reasonable assurance regarding prevention/timely detection of unauthorised acquisition, use, or disposition of assets with material effect.

Considered the disclaimer in forming opinion on effectiveness of internal financial controls over financial reporting for the year and as on 31 March 2026.

Inherent Limitations of Internal Financial Controls over Financial Reporting: Due to inherent limitations (possibility of collusion, improper management override of controls), material misstatements due to error/fraud may occur and not be detected. Projections of evaluation to future periods subject to risk controls may become inadequate due to changes in conditions or deterioration in degree of compliance.

Disclaimer of Opinion: The Company is in the process of implementing internal control systems and formalising its policies. As these controls and policies were partially implemented and operational during the year and as on 31 March 2026, we were unable to obtain sufficient and appropriate audit evidence to provide opinion on Companys internal financial controls over financial reporting. We have considered the disclaimer reported above in determining nature, timing, extent of audit tests applied in audit of Standalone Financial Statements; disclaimer does not affect our opinion on the Standalone Financial Statements of the Company.

For Mehra Goel & Co, Chartered Accountants, FRN: 000517N; Roshan Daultani, Partner, Membership No. 137405, UDIN: 26137405QZBRXE8018; Place: Pune; Date: May 28, 2026.