Futura Polyesters Ltd Auditor Reports

To

The Members of

Futura Polyesters Limited

Report on the Audit of the Ind AS Financial Statements

Qualified Opinion

We have audited the Ind AS Financial Statements of Futura Polyesters Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2024, and the Statement of Profit and Loss, (Including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and notes to the Indian Accounting Standards ("IND AS") Financial Statements, including a summary of material accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matters described in the Basis for Qualified Opinion section, the aforesaid Ind AS Financial Statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the 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, 2024, and its Loss, Total Comprehensive Income, its Cash Flows and Changes in Equity for the year ended on that date.

Basis for Qualified Opinion:

i) Finance cost:

We draw attention to Note no. 19 of the Ind AS Financial Statements of the Company that, it has not provided finance cost related with interest expenses which exceeds 14.25% p.a till 31^st March, 2024. Also, the Company has not provided for penal interest if any levied by bank. As the account of the Company has been reclassified as non-performance assets (NPA) by all lenders on financial facilities availed from them. Due to that, Loss for the year ended March 31^st, 2024, has been Understated. Amount is not determinable.

ii) Material uncertainty related to going concern:

Material uncertainty related to going concern due to delay in meeting its debt obligation, overdue liabilities, complete erosion of Companys net worth.

These factors indicate the existence of material uncertainty that may cast significant doubt on the Companys ability to continue as a going concern. However, the Ind AS Financial Statements are prepared on going concern assumptions.

iii) Other Current Assets:

It includes advances to vendors, balances with Government authorities, other financial assets and other recoverable. In the absence of confirmation from such parties, we are unable to comment on it, including its recoverable values.

iv) Cash and cash equivalents:

To confirm the bank balances held as on March 31^st, 2024, from the books of account we have sent an e-mail to the banks but except Bank of India and IDBI Bank Limited, none of them has sent the confirmation/ statement of balances, held as on that date. Hence, we have relied on the statement produced before us by the Company for the reconciliation with the books of account of the Company.

v) Borrowings:

To confirm the balances held as on March 31^st, 2024, from the books of account we have sent an e-mail to the banks and other lenders, but except Bank of India and IDBI Bank Limited, none of them has sent the confirmation/ statement of balances, held as on that date. Hence, we have relied on the statement produced before us by the Company for the reconciliation with the books of account of the Company.

vi) Contingent Liabilities:

We draw attention to Note No. 20 of the Ind AS Financial statements of the Company, where sufficient and appropriate audit evidence for examining and verifying the contingent liabilities has been obtained only in respect of the Income tax and Commercial Taxes Department.

For other matters, in the absence of the details and documents, the impact of the same on the Ind AS Financial statements has not been ascertainable.

vii) In compliance with second provision of section 149(1) of the Act, the Company has not appointed any women director during the year.

viii) We could not examine the Minute Book of the Company for the period 12^th November 2010 to 26^th December, 2023 as the minute books, are not in the possession of the Company.

ix) In compliance with Section 203 of the Act read with Rule 8 & Rule 8A of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has not appointed full time Company Secretary for the year ended March 31, 2024.

x) The Company has not obtained necessary documents from vendors to verify their MSME registration status under the MSMED Act, 2006. As a result, we could not verify related disclosures, including interest liability on delayed payments to MSME vendors. Hence, we are unable to examine it.

xi) Due to non-conducting Annual General Meeting, the financial statements for the year ended March 31, 2020, March 31, 2021, March 31, 2022 and March 31, 2023 are not adopted by the shareholders of the Company. Accordingly, compliance U/s. 92 of the Act (Annual Return) is not yet complied.

We conducted our audit 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 the Ind AS 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 Ind AS Financial Statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

1. Balances of Trade Receivables, Other Receivables, Trade Payables and Loans and advances are subject to confirmations and reconciliations.

Our opinion is not modified in respect of these matter.

Key Audit Matters

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

During the period, in the absence of any major activities we have not determined any matter to be the key audit matter for the year to be communicated in our report.

Information other than the Ind AS Financial Statements and Auditors Report thereon

The Companys Management and Board of Directors are responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the Ind AS Financial Statements and our auditors report thereon.

Our opinion on the Ind AS Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Ind AS Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Ind AS Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management for the IND AS 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 Ind AS Financial Statements that give a true and fair view of the financial position, financial performance, (changes in equity) and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the accounting Standards specified under section 133 of the Act.

This responsibility 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 financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Ind AS Financial Statements, management is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those Board of Directors are also responsible for overseeing the Companys financial reporting process.

Auditors Responsibilities for the Audit of the IND AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Ind AS 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 Ind AS Financial Statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the Ind AS 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.

2. 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 Act, 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.

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

4. 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 Ind AS Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the Ind AS Financial Statements, including the disclosures, and whether the Ind AS 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 Ind AS 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

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 Act, we give in the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

As required by Section 143(3) of the Act, we report that:

1. 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.

2. 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 and proper returns adequate for the purposes of our audit.

3. The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of accounts.

4. In our opinion, the aforesaid Ind AS Financial Statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

5. Since the Company has neither filed its annual financial statements nor annual returns for the consecutive three financial years hence the directors of the Company is disqualified as on 31st March, 2024 from being appointed as a director in terms of Section 164 (2) of the Act in any other Company.

6. With respect to 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 adverse opinion on the adequacy and operating effectiveness of the Companys internal financial controls over financial reporting.

7. The Company has neither provided nor paid any managerial remuneration for the year ended March 31, 2024 to its directors.

8. 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 has disclosed the impact of pending litigations on its financial position in its Financial Statements refer note no. 20.

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

iii. An amount of Rs. 19.01 Lacs which was required to be transferred to the Investor Education and Protection Fund by the Company which has not been transferred.

iv. (a) The Management has represented that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advance or loaned or invested (either from borrowed funds or share premium or any other source or kind of fund) by the Company to or in any other person or entity, including foreign entity (‘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, no funds which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("Funding Parties"),with the Understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly ,lend or invest in other person 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 the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representation under sub-clause (i) and (ii) of the Rule 11 (e), as provided under (a) and (b) above, contain any material misstatement.

v. The Company has not proposed any final dividend in the previous year, in accordance with section 123 of the Act, as applicable.

9. Based on our examination, the Company has used accounting software for maintaining its books of account which have feature of recording audit trail (edit log) facility however the same was not enabled and operated for the year under review. Consequently, we have nothing to report with regard to any instance of the audit trail feature being tempered with.

The Annexure A referred to in Independent Auditors Report to the members of the Company under the heading ‘Report on Other Legal and Regulatory Requirements on the Ind AS Financial Statements for the year ended 31 March, 2024 we report that:

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

(b) The Company has a Freehold Land as an asset. As explained to us, the Land have been physically verified by the management during the year and no material discrepancies have been noticed on such verification. In our opinion this periodicity of physical verification is reasonable having regard to the size of Company and nature of its assets.

(c) The title deeds of the immovable properties as disclosed in schedule of Property, Plant and Equipment to the Ind AS Financial Statements are held in the name of the Company.

(d) The Company has not revalued its Property, Plant and Equipment (including Right-of-use assets) during the year.

(e) 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 thereunder.

(ii) The Company does not have any Inventory hence reporting under Clause(ii) of the Order is not applicable.

(iii) In our opinion and according to the information and explanations given to us, during the year the Company has not made investments in, provided any guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any other parties. Accordingly reporting under clause 3 (iii) (a) to (f) of the Order is not applicable.

(iv) In our opinion and according to the information and explanations given to us, during the year the Company has not given any loans, guarantees, and securities and invested any amount. Accordingly reporting under clause 3(iv) of the Order and of section 185 and 186 of the Act are not applicable.

(v) During the year, the Company has not accepted any deposits or amounts which are deemed to be deposits. Hence the directives issued by the Reserve Bank of India and the provisions of the Sections 73 to 76 or any other relevant provisions of the Act and rules framed thereunder, are not applicable. Accordingly reporting under clause 3(v) of the Order is not applicable.

(vi) As per information & explanation given by the management the Company do not have any operations thus the requirement of maintenance of cost records under sub-section (1) of section 148 of the Act are not applicable to the Company.

(vii) According to the information and explanations given to us and the records of the Company examined by us, in our opinion,

a) Undisputed statutory dues, including provident fund, employee state insurance, income tax, cess and any other material statutory dues have not been regularly deposited with the appropriate authorities and there have been delays. Undisputed amounts payable in respect thereof, which are outstanding at the year-end for a period of more than six months form the date they become payable is as follows:

Name of Statute	Nature of Dues	Amount ( Rs. In Lakh)	Period to which the amount relates	Date of Payment
Employees Provident Fund Act, 1948	Provident Fund - Penalty	3.11	April, 2013 - March, 2014	Not yet paid
Excise Act, 1944	Excise Duty	391.12	Various Periods	Not yet paid
Employees State Incorporation Corporation, 1948	ESI	2.71	Apr 2013 - Mar, 2014	Not yet paid
Professional Tax Act- Tamil Nadu	Professional tax	4.24	Jul, 2012 - Dec, 2012	Not yet paid
Tamil Nadu Value Added Tax Act, 2006	Value added tax	28.43	Various Periods	Not yet paid
Finance Act, 1994	Service Tax	9.67	Various Periods	Not yet paid
Foreign Trade (Development and regulation) Act, 1992	Penalty for advance license	47.00	Various Periods	Not yet paid
Income Tax Act, 1961	Tax Deducted at Source	15.76	Various Periods	Not yet paid
Income Tax Act, 1961	Penalty on demand	2.40	Various Periods	Not yet paid
Central Sales Tax Act, 1956	Central Sales Tax	3,241.95	Various Periods	Not yet paid

b) According to the information and explanations given to us, and the records of the Company examined by us, the dues in respect of Income tax ,sales tax, duty of customs, service tax, Goods and Service Tax, entry tax, value added tax, on account of any dispute are as follows:

Name of the Statute	Nature of dues	Period to which the amounts relates (F-Y)	Forum where dispute is pending	Amount
Income Tax Act, 1961	Income Tax	2007-08	ITAT	368.45
		2012-13	CIT	5,512.41
		2013-14	ITAT	957.62
		2015-16	CIT(A)	2,267.90
		2017-18	CIT(A)	1,967.88
Income Tax Act, 1961	Interest	2007-08	ITAT	291.08
Income Tax Act, 1961	Penalty	2014-15	CIT(A)	200.00
		2015-16	CIT(A)	1,000.30
Service Tax Act, 1994	Service Tax	Various Period	CESTAT	501.76
			CIT(A)	76.63
			SC	6.29
Government of Maharashtra- Irrigation Department	Water Charges	Various Period	Bombay High Court*	185.38
Commercial Taxes Department	Central sales Tax and Tamil Nadu Value Added Tax	Various Period	Assistant Commissioner (CT)/(FAC)	2,784.40
Customs Act, 1962	Tax	2003-04	Commissioner of Customs (Appeals)	5.00
		2010-11	Commissioner of Customs (Appeals)	53.00

* Deposit in High Court of Rs. 256.29 lakhs

CIT - Commissioner of Income Tax

CIT(A) - Commissioner of Income Tax (Appeals)

ITAT - Income Tax Appellate Tribunal

CESTAT - Customs Excise and Service Tax Appellate

Tribunal

SC - Supreme Court

(viii) The Company has not surrendered or disclosed any transaction, previously unrecorded in the books of account, in the tax assessments under the Income Tax Act, 1961 as income during the year. Accordingly, the requirement to report on clause 3(viii) of the Order is not applicable to the Company.

(ix) Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, the Company has defaulted in repayment of dues of financial institution /banks to the tune of Rs 93.65 Crores. Various banks had accepted the offer of One time Settlement (OTS) in 2019 made by the Company to accept Rs 165.00 Crores as against book dues of Rs. 93.65 Crores to be paid. In view of the expiry of deadline to comply the OTS, the Bank/Lenders had decided to recall the advance and initiate legal proceedings. The dues payables to the lenders does not include unapplied interest. Since the Company has defaulted in repayment of dues hence is not eligible to apply for new term loan.

(x) (a) During the year, the Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments). Accordingly, clause 3(x)(a) of the Order is not applicable.

(b) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures. Accordingly reporting under clause 3(x)(b) of the Order is not applicable.

(xi) (a) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the Ind AS Financial Statements and according to the information and explanations given by the management, we report that no fraud by the Company or no fraud on the Company has been noticed or reported during the year.

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

(c) The Company neither have any committee nor any employees hence reporting under this clause (xi) (c) is not applicable to the Company.

(xii) In our opinion, the Company is not a Nidhi Company. Accordingly reporting under clause 3(xii) (a), (b) and (c) of the Order is not applicable.

(xiii) According to the information and explanations given by the management, transactions with the related parties are in compliance with section 177 and 188 of Act, where applicable and the details have been disclosed in the notes to the Ind AS Financial Statements, as required by the applicable India accounting standards.

(xiv) The Company does not have an internal audit system. Accordingly reporting under clause 3(xiv) (a) and (b) of the Order is not applicable.

(xv) The Company has not entered into any non-cash transactions with directors or persons connected with him, as per referred to in section 192 of the Act.

(xvi) (a) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, clause 3(xvi)(a) of the Order is not applicable.

(b) The Company has not conducted any NonBanking Financial and housing finance activities.

(c) The Company is not a Core Investment Company as defined in the regulations made by Reserve Bank of India. Accordingly, the requirement to report on clause 3(xvi)(c) and (d) of the Order is not Applicable to the Company.

(xvii) The Company has incurred cash losses in the current and in the immediately preceding financial year.

(xviii) There is no resignation of statutory auditor during the year. Hence, reporting under clause 3(xviii) of the Order is not applicable.

(xix) On the basis of the financial ratios disclosed in Note no. 18 to the Ind AS Financial Statements, ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information accompanying the Ind AS Financial Statements, our knowledge of the Board of

Directors and management plans and based on the audit procedures performed, we have identified a material uncertainty related to the Companys ability to continue as a going concern, which may cast significant doubt on its ability to continue operating for the foreseeable future. The Company is facing financial challenges including delay in meeting its debt obligations, overdue liability, suffering from recurring losses from discontinued operations, complete erosion of Companys net worth. These conditions of the Ind AS Financial Statements, indicate the existence of a material uncertainty. However, the Ind AS Financial Statements of the Company have been prepared on a going concern basis.

(xx) In our opinion and based on the information and explanations provided to us, the Company is not required to comply with the provisions of Section 135 of the Act, relating to Corporate Social Responsibility (CSR).

Annexure - B to the Auditors Report 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 Futura Polyesters Limited ("the Company") as of 31^st March, 2024 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 Act.

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 Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, 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 was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls 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 authorizations of management and directors of the Company; and

(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the 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, the Company has, an inadequate internal financial controls system over financial reporting as at 31^st March, 2024.