Filatex Fashions Ltd Auditor Reports

To,

The Members

Filatex Fashions Limited

(CIN: L51491TG1994PLC017158)

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone Financial Statements of Filatex Fashions Limited ( the Company ), which comprise the Balance Sheet as at March 31, 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 on that date, and notes to the Standalone Financial Statements, including a summary of material accounting policy information and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, 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 and other comprehensive income, the changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Standalone Financial Statements in accordance with the standards on auditing specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the Standalone 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 (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 Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone 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 financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Expected credit loss allowances	How the matter was addressed in our Audit
Recognition and measurement of impairment of financial assets involve significant management judgement. With the applicability of Ind AS 109, credit loss assessment is now based on expected credit loss (ECL) model. The Companys Impairment allowance is derived from estimates including the historical default and loss ratios. Management exercises judgement in determining the quantum of loss based on a range of factors. The most significant areas are loan staging criteria, calculation of probability of default / loss and consideration of probability weighted scenarios and forward-looking macroeconomic factors. There is a large increase in the data inputs required by the ECL model. This increases the risk of completeness and accuracy of the data that has been used to create assumptions in the model. In some cases, data is unavailable and reasonable alternatives have been applied to allow calculations to be performed. As per management opinion, there is no expected credit loss in several financial assets including the trade receivables and other financial assets of the Company and all are on fair value, based on the assessment and judgement made by the board of the company.	In view of the significance of the matter we applied the following audit procedures, on test check basis, in this area, among others to obtain reasonable audit assurance:
	We evaluated managements process and tested key controls around the determination of extent of requirement of expected credit loss allowances, including recovery process & controls implemented in the company for trade receivables and other financial assets. It was explained to us by the management that the control exists relating to the recovery of receivables, including those aging for large periods and in the opinion of the board there is no requirement making expected credit loss allowance. We have also reviewed the management response and representation on recovery process initiated for sample receivables, and based on the same we have place reliance on these key controls for the purposes of our audit.
Appropriateness of Current and Non-Current Classification
We identified the classification of assets and liabilities as current and non-current as a key audit matter because it requires significant management judgement in the absence of clearly documented contractual terms for certain balances, and because misclassification could materially affect key financial ratios and the presentation of the Company\u2019s liquidity position.	For the purpose of current & non-current classification the Company has considered its normal operating cycle as 12 Months and the same is based on services provided, acquisition of assets or inventory, their realization in cash and cash equivalents. The classification is either done on basis of documentary evidence and if not then on the basis of managements best estimate of period in which asset would be realized or liability would be settled.
Revenue Recognition
The principal business of the Company is trading/manufacture and sale of garments and fashion products. Revenue from contracts with customers is recognised when control of the goods is transferred to the customer, generally on dispatch or delivery as per the terms of sale, at an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods, net of trade discounts, rebates, and goods and services tax. The Company is the principal in these arrangements, as it typically controls the goods before they are transferred to the customer.	In view of the significance of the matter we applied the following audit procedures, on test check basis, in this area, among others to obtain reasonable audit assurance:
We identified revenue recognition as a key audit matter because of the volume and value of transactions and the judgement involved in determining the timing of transfer of control to customers.	\u2022 Assessed the appropriateness of the revenue recognition accounting policies, by comparing with applicable accounting standards.
	\u2022 Evaluated the design of controls and operating effectiveness of the relevant controls with respect to revenue recognition and accounting for services/sales.
	\u2022 Performed substantive testing by selecting samples of revenue transactions recorded during the year by verifying the underlying documents.
	\u2022 Carried out analytical procedures on revenue recognized during the year to identify unusual variances.
	\u2022 Performed confirmation procedures on trade receivable balances at the balance sheet date on a sample basis.
	\u2022 Tested, on a sample basis, specific revenue transactions recorded before and after the financial year end date to determine whether the revenue had been recognised in the appropriate financial period.
Carrying value of Investment in Subsidiary
As disclosed in Note 4 to the Standalone Financial Statements, the Company carries an investment of ^2,21,056.00 Lakhs in the equity shares of its subsidiary, Filatex Mines and Minerals Private Limited (FMMPL), representing approximately 87% of the Companys total assets as at the balance sheet date. This investment was acquired in an earlier year pursuant to a share-swap arrangement, based on the fair valuation of FMMPL.	Our audit procedures in this area, among others, included the following:
The investment is carried at cost in accordance with Ind AS 27, Separate Financial Statements. Given the significant carrying value of this investment relative to the Companys total assets, and the requirement under Ind AS 36 to assess, at each reporting date, whether any indicators of impairment exist, this is an area involving significant management judgement - including judgement over the continued recoverability of the carrying amount, the performance and net worth of FMMPL, and the absence of an active market for FMMPLs shares. We therefore considered this a key audit matter.	\u2022 Obtained an understanding of managements process for identifying indicators of impairment in respect of the investment in FMMPL.
	\u2022 Read minutes of board and audit committee meetings for any discussion bearing on the recoverability of this investment.
	\u2022 Assessed the adequacy of disclosures made in Note 4 to the Standalone Financial Statements in accordance with Ind AS 27 and Ind AS 36.
	Based on the above procedures, we did not identify any indicators requiring an impairment provision against the carrying value of the investment as at the balance sheet date.

Emphasis of Matters

1. We draw attention to Note No. 2.22 to the Standalone Financial Statements regarding nonprovision of retirement benefits. The Company has not provided for the liability towards Gratuity and Leave Encashment, which is not in accordance with the requirements of Ind AS 19 on Employee Benefits. In the absence of an actuarial valuation, the resultant impact on the accumulated losses/provisions and expenses for the year is presently not ascertainable.

2. We draw attention to Note 8 to the Standalone financial statements regarding the inventory balances amounting to Rs. 2878.35 Lakhs as of March 31, 2026. Our audit procedures for verifying the existence and valuation of this inventory were limited to alternative testing and reliance on internal management records. Hence, inventories are subject to verification and considered in books of accounts as per the management representation. Our opinion is not modified in respect of this matter.

3. We draw your attention to Note no. 42 of the Standalone financial statements of the company; The Company has long outstanding trade receivables of Rs. 16,437.05 Lakhs in the books of accounts for more than 3 years and the company has not provided any provision for bad / doubtful debts in the books of accounts.

4. We draw your attention to Note No. 47 of the Standalone financial statements of the company; Balances of trade receivables, deposits, loans and advances, advances received from the customers and trade payables are subject to confirmation from the respective parties and consequential reconciliation /adjustment arising there from, if any.

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 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 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 Financial Statements

The Companys Board of Directors is responsible for the matters stated in section 134(5] of 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 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] specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone 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, the 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 the management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

That 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 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 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 company has adequate internal financial controls system in place and the operating effectiveness of such controls.

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

Conclude on the appropriateness of 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 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.

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 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.

Report on Other Legal and Regulatory Requirements

1. As required by 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 Companies Act, 2013, we give in the Annexure A a statement on the matters specified in paragraphs 3 and 4 of the Order.

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, the Cash Flow Statement and the Statement of Changes in Equity 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 accounting standards specified under section 133 of the Act, read with the Companies (Indian Accounting Standards] Rules, 2015;

e. On the basis of the written representations received from the directors as on 31 st March, 2026 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 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 .

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.

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, 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 required to be transferred to the Investor Education and Protection Fund by the Company.

(iv) a) The Management has represented that, to the best of its knowledge and belief that 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 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 Management has represented, that, to the best of its knowledge and belief that, 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; and

c) Based on such audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to their notice that 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 mis-statement.

(v) The Company has not declared or paid dividend during the year, hence compliance with section 123 of the Companies Act, 2013 is not applicable.

(vi) Based on our examination, which included test checks, the Company has used accounting software for maintaining its books of account for the year ended 31 st March, 2026. However, the software does not have a feature of recording audit trail (edit log) facility. Accordingly, the Company has not complied with the requirements of Rule 3(1) of the Companies (Accounts) Rules, 2014. Therefore, we are unable to express our opinion regarding audit trail feature being tampered with or not.

ANNEXIJRE A TO INDEPENDENT AUDITORS REPORT

[Referred to in Paragraph 1 under the heading of Report on Other Legal and Regulatory Requirements of our report of even date to the Members of Filatex Fashions Limited on Standalone Financial Statements for the year ended 31 st March 2026]

(i) In respect of the Companys Property, Plant & Equipment and Intangible assets:

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

(ii) There are no intangible assets held by the Company.

(b) The company has a regular programme for physical verification in a phased periodic manner, which, in our opinion, is reasonable having regards to the size of the company and the nature of its assets. No material discrepancies were noticed on such verifications.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds 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 Note no. 3 to the Standalone financial statement are held in the name of the company.

(d) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not re-valued its property, plant and equipment (including Right-of-use assets).

(e) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there are no proceedings initiated or pending against the Company for holding any Benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made there-under. Accordingly, reporting under clause 3(i)(e) of the Order is not applicable to the Company.

(ii) (a) Physical verification of inventory has been conducted at reasonable intervals during the year by the management and as informed no material discrepancies were noticed on such physical verification.

(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not been sanctioned a working capital limit in excess of Rs 5 crore by bank or financial institution based on the security of current assets during the year. Accordingly, reporting under clause 3(ii)(b) of the Order are not applicable.

(iii) According to the information and explanations given to us and on the basis of our examination of the records of the Company, company has not provided any guarantee or security to companies, firms, limited liability partnerships or any other parties during the year.

The Company holds an investment of ^2,21,056.00 Lakhs in the equity shares of its subsidiary, Filatex Mines and Minerals Private Limited (15,70,00,000 equity shares of ^1/- each), acquired pursuant to a share-swap arrangement as more fully described in Note 4 to the Standalone Financial Statements. No fresh investment was made during the year under audit.

The Company has granted loans to companies, firms, limited liability partnerships or other parties during the year, details of the loan is stated in sub-clause (a) below.

(a)

	Loans (Rs. In Lakhs)
Aggregate amount granted during the period
- Subsidiaries	41.25
- Others	3.40
Balance outstanding as at Balance Sheet date
- Subsidiaries	76.12
- Others	95.79

(b) According to the information and explanations given to us and based on the audit procedures conducted by us, we are of the opinion that the terms and conditions of the loans given are, prima facie, not prejudicial to the interest of the Company.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, in the case of loans given, the repayment of principal and payment of interest has been stipulated and the repayments or receipts have been regular.

(d) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there is no overdue amount for more than ninety days in respect of loans given.

(e) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there is no loan given falling due during the year, which has been renewed or extended or fresh loans given to settle the overdues of existing loans given to the same party.

(f) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has given loans repayable on demand which was without specifying any terms or period of repayment.

(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) In our opinion and according to the information and explanations given to us, the Company has not accepted deposits or amounts which are deemed to be deposits, within the meaning of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under. No Order has been passed by the Company Law board or National Company Law Tribunal or Reserve Bank of India or any court or any other Tribunal.

(vi) The Central Government under section 148(1) of the Companies Act, 2013 has not specified the maintenance of cost records in respect of the Companys services.

(vii) (a) In our opinion, and according to the information and explanations given to us, undisputed statutory dues including goods and services tax, provident fund, employees state insurance, income-tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues, as applicable, have generally been regularly deposited with occasional delays during the period with the appropriate authorities by the Company. But undisputed statutory dues in respect of Employees State Insurance, Employee Provident Fund and Tax deducted at source remained outstanding for more than six months from the date it became payable. as follows. However, the company has not made any payments in respect of Professional Tax.

Rs. In Lakhs

Particulars	More than 6 months	Total Liability
Tax deducted at source	13.89	36.68
Employees State Insurance	1.10	1.37
Employee Provident Fund	2.64	4.65

(b) According to the information and explanations given to us, there are no statutory dues referred to in subclause (a) above that have not been deposited with the appropriate authorities on account of any dispute, except those disclosed below:

Rs. In Lakhs

Name of the statute	Nature of the dues	Amount (Rs In Lakhs)	Period to which the amount relates	Forum where the dispute is pending
Income Tax Act, 1961	Income Tax	713.21	A.Y. 2023-24	Commissioner of Income Tax (Appeals)
Income Tax Act, 1961	Income Tax	981.95	A.Y. 2022-23	Commissioner of Income Tax (Appeals)
Income Tax Act, 1961	Income Tax	4.95	A.Y.2012-13	Order of ITAT in Favour. Effect of same pending.
Income Tax Act, 1961	Income Tax	3.52	A.Y. 2025-26	CPC
Income Tax Act, 1961	Income Tax	598.08	A.Y. 2016-17	Income Tax Appellate Tribunal (Hyderabad)
Income Tax Act, 1961	Income Tax	61.60	A.Y. 2010-11	Jurisdictional Assessing Officer

(viii) According to information and explanation given to us, 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.

(ix) According to information and explanation given to us,

(a) we report that the Company has defaulted in repayment of loans or other borrowings or in the payment of interest thereon to the lender(s), as per the details given below:

Nature of borrowing, including debt securities	Name of lender	Amount not paid on due date	Whether principal or interest	No. of days delay or unpaid	Remarks, if any
Vehicle loan	Mercedes-Benz Financial Services India Pvt. Ltd	148.99 Lakhs	Principal and Interest	Irregular Payments	Company is in default in repayment.
Mortgage Loan	Godavari Urban Multistate Credit Co-Operative Society Ltd	367.18 Lakhs	Principal and Interest	Irregular Payments	Company is in default in repayment and applied for OTS. NOC pending.

(b) the Company has been declared willful defaulter by Mercedes-Benz Financial Services India Pvt. Ltd;

(c) the Company has not applied proceeds of term loans for the purpose for which they were obtained;

(d) the Company has not raised funds on short term basis which have been utilized for long term purposes.

(e) 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) the Company has not raised any loans during the year on the pledge of securities held in its subsidiaries, joint ventures or associate companies.

(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 convertible debentures (fully or partly or optionally) and hence reporting under clause 3(x)(b) of the Order is not applicable.

(xi) (a) According to the information available with us, no fraud by the Company and no fraud on the Company has been noticed or reported during the year.

(b) According to the information available with us, 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, during the year and up to the date of this report.

(c) As represented to us by the Management, there were no whistle-blower complaints received during the year and hence reporting under clause 3(xi)(c) of the Order is not applicable.

(xii) The Company is not a Nidhi Company and hence reporting under clause 3(xii) of the Order is not applicable.

(xiii) The Company has entered into transactions with related parties in compliance with the provisions of section 177 & section 188 of the Act. The details of such related party transactions have been disclosed in the Ind AS financial statements as required under Ind AS 24, Related Party Disclosures specified under section 133 of the Act, read with the Companies (Indian Accounting Standards] Rules, 2015.

(xiv) (a) Based on the information & explanations provided to us & our audit procedures, in our opinion, the Company has an internal audit system commensurate with the size & nature of its business.

(b) We have considered the internal audit reports of the company issued till date for the period under audit.

(xv) According to the information given to us, the Company has not entered into any non-cash transactions with directors or persons connected with him and hence, the provisions of section 192 of Companies Act are not applicable to the Company.

(xvi) According to the information and explanations as given to us and based on our examination of the records of the company,

(a) The company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.

(b) The company has not conducted any Non-Banking Financial or Housing Finance activities without a valid Certificate of Registration (CoR) from the Reserve Bank of India as per the Reserve Bank of India Act, 1934;

(c) The company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India; hence paragraph 3(xvi)(c) is not applicable.

(d) According to the information given to us, there is no Core Investment Company (CIC) within the Group (as defined in the core investment companies (Reserve Bank of India) Directions, 2016) and accordingly reporting under this clause not applicable to the company.

(xvii) According to the information and explanation given to us, the Company has not incurred any cash losses in the current financial year or in the immediately preceding financial year.

(xviii) The previous statutory auditors resigned during the year. We have considered the issues, objections and concerns raised by the outgoing auditors in their resignation letter, as required under clause 3(xviii) of the Order.

(xix) 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 and 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 that indicating that Company is not 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. We, however state that our reporting is based on the facts up to the date of 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) According to the information and explanations given to us and based on the verification of the records of the company, we report that

(a) According to the information and explanations given to us, the Company has not transferred the amount remaining unspent under sub-section (5) of Section 135 of the Act, in respect of other than ongoing projects, to a Fund specified in Schedule VII to the Act within a period of six months of the expiry of the financial year, as required by the second proviso to sub-section (5) of Section 135 of the Act.

(b) According to the information and explanations given to us, the Company has not transferred the amount remaining unspent under sub-section (5) of Section 135 of the Act, in respect of ongoing project(s), to a special account in compliance with sub-section (6) of Section 135 of the Act.

ANNEXURE B TO INDEPENDENT AUDITORS REPORT

[Referred to in Clause (f) of Paragraph 3 under the heading of Report on Other Legal and Regulatory Requirements of our report of even date to the Members of Filatex Fashions Limited on Standalone Financial Statements for the year ended 31 st March 2026]

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 over financial reporting of Filatex Fashions Limited ( the Company ) as of 31 st March, 2026 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting 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 (ICAI). 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 Companys 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 Companys internal financial controls over financial reporting 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 Accountants 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 over financial reporting 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 over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, 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 auditors judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, 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 Companys internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Ind AS financial statements for external purposes in accordance with generally accepted accounting principles. A Companys internal financial control over financial reporting 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 Ind AS financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of management and directors of the Company; and

(3) provide reasonable assurance regarding prevention or timely detection of un-authorised acquisition, use, or disposition of the companys assets that could have a material effect on the Ind AS financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, 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 over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting 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, to the best of our information and according to the explanations given to us, further described in the Auditors Responsibilities section of this report, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 st March, 2026, based on the internal control over financial reporting 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.

FOR: KPSJ & ASSOCIATES LLP

(CHARTERED ACCOUNTANTS)

FRN: 124845W/W100209

Sd/-

PRAKASH PARAKH

(PARTNER)

M.NO. 039946

UDIN: 26039946CDYWUW6539

Date: 29 th May, 2026

Place: Ahmedabad