Godavari Biorefineries Ltd Auditor Reports

Independent Auditors Report

To the Members of Godavari Biorefineries Limited

Report on the audit of the Standalone Financial Statements Opinion

1. We have audited the accompanying standalone financial statements of Godavari Biorefineries Limited ("the Company"), which comprise the Balance Sheet as at 31st March 2024, and the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and Statement of Cash Flows for the period then ended, and notes to the financial statements, including and other a summary of significant explanatory information.

2. 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 accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024, and total comprehensive income (comprising of profit and other comprehensive income), changes in equity and its cash flows for the period ended on that date.

Basis for opinion

3. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the 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 for our opinion.

Key audit matters

4. 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.

Sr. No. Key Audit Matters	How the matter was addressed in our audit
1. Valuation of inventory of Sugar, Distillery and Cogen Division as at the year ended March 31, 2024 (Refer note 2.2(i) and 7 of the Standalone Financial Statements)	1. Obtained an understanding of the matter from the management.
As per the accounting policy of the Company, inventory of sugar division, distillery and cogen division are valued at the lower of cost and net realisable value (‘NRV). Sugarcane crushing results in production of products and by-products which are sold in market as well as used as inputs in the production in Distillery and Cogen Divisions of the Company. The valuation for all the products and by-products requires use of managements judgements and assumptions. These judgements and assumptions are subject to inherent limitations due to various external factors.	2. Considered the appropriateness of the Companys accounting policies relating to valuation of finished goods and by-products and assessing compliance with the applicable accounting standards.
We have determined this to be a key audit matter given the complexity in the judgments involved due to different valuation parameters arising out of variability in external factors such as government regulations, availability of sugarcane, sugarcane crushing days, recovery from cane crushing, fluctuating selling price of sugar and non-availability of industry data for cost/NRV of by-products. Further, any change in the managements judgements and assumptions is likely to have significant impact on the valuation of inventories.	3. Tested the effectiveness of the Companys controls over calculation of cost of inventories and estimation of corresponding NRV.
	4. Based on data used by the Company to arrive at cost and NRV, including minimum selling price and actual selling price during the year end, we assessed the permanence of methods used, relevance and reliability of data and the calculations applied.
	Based on the above procedures performed, we concluded that managements process for determination of NRV and comparing that with cost of inventories seems reasonable.
Sr. No. Key Audit Matters	How the matter was addressed in our audit
2. Accounting Treatment of CWIP of expenditure done on account of Anti-Cancer Drug - MSP008-22	1. Obtained an understanding of the matter from the management.
In accordance with the IND AS 38, upto F.Y 2018-2019 as the drug was under research phase, all the expenditures (revenue and capital) incurred on the research were being accounted as revenue expenditures. The drug entered development phase in F.Y 2019-2020, and since then, all the expenditures were split and accounted as revenue and capital expenditures. Accordingly, all capital expenditures i.e. the equipment and machines acquired were accounted as Capital Work in Progress (CWIP) in the books of accounts since F.Y 2019-2020.	2. Obtained an understanding of the matter from the strategy and business development manager who as represented to us, is leading and interacting with external parties regarding the drug.
The Company being under the development phase has achieved a stable composition of the drug which is now under safety trials. The Company has also received approval from Central Drugs Standard Control Organisation (CDSCO) to continue the safety trials to completion or until a Serious Adverse Event is reported.	3. Considered the appropriateness of the Companys accounting treatment of accounting all expenditures on Anti-Cancer Drug MSP008- 22 as CWIP under Intangible assets under development and assessing compliance with the applicable accounting standards.
The Company has also started phase 1 efficacy trials to establish the efficacy of the drug.	Based on the above procedures performed, we concluded that managements policy for treating all expenditure as CWIP seems reasonable.
The Company has approached pharma companies who have shown interest in the drug but are waiting for the efficacy results. The Company has also approached VC Companies and is trying to explore possibilities for investments.
Given the current stage of the drug and that the fact that
(i) Company has the intention to complete the efficacy of the drug,
(ii) has the resources Financial and Technical to do so and lastly,
(iii) wants to commercialize the drug, the Company has decided to consider all the expenditures (including revenue expenditures) as addition towards CWIP under Intangible assets under development till such time that the drug is not commercialized.
We have determined this to be a key audit matter given the fact that the company is continuing the development phase of the drug and, in accordance with IND AS 38, all the expenditures incurred will be treated Capital Expenditures and will be accounted under CWIP under Intangible assets under development till the time the drug is not commercialized
3. Additional Cane Price for the Financial Year 2021-2022 crystalized and accounted during the period under audit in cost of materials consumed (Refer note to schedule 24 in the Standalone Financial Statement)	1. Obtained an understanding of the matter from the management.
	2. Examined the following:
Cane 1,393.91 Lakhs for the FY Additional price amounting to 2021-2022 accounted as cost of material consumed during the period under audit.	a) Supporting data and documents to ascertain that the expenses even though relate to FY 2021- 2022, same were Crystallized and Finalized during the year under audit.
The above liability has crystalized and also accounted during the period under audit. However same has not been included in the valuation of the Closing Stock.
	b) Valuation of inventory of sugar to ascertain that the additional price have not been considered in the valuation.
We have considered this to be a Key Audit Matter considering the materiality of the amount involved.
	Based on the above procedures performed we noted that the Management assessment of considering the additional cane price for the FY 2021-2022 as cost of cane consumed during the period under audit is reasonable.

Other Information

5. The Companys Board of Directors is responsible for the other information. The other information comprises the information included in the Board of Directors report, but does not include the financial statements and our auditors report thereon.

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

7. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained 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 and those charged with governance for the financial statements

8. 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, 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, doubt 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.

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

Auditors responsibilities for the audit of the financial statements

10. Our objectives are to obtain reasonable assurance about audit findings, whether the financial statements as a whole are free from deficiencies in internal control 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 financial statements.

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

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is 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 Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by 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 on the conditions that may cast significant Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern.

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

12. We communicate with those charged with governance regarding, among other matters, the planned scope and includingtiming of the audit and significant that weany significant identify during our audit.

13. 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.

14. 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

15. 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.

16. 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 accounts as required by law have been kept by the Company so far as it appears from our examination of those books.

(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and the Cash Flow Statement 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.

(e) On the basis of the written representations received from the directors as on March 31, 2024 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2024 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 with reference to financial statements 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 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 34 B, i to iii to the Ind AS financial statements;

ii) There are no material foreseeable losses arising out of any long-term contracts for which provision is required to be made under any law or accounting standards. The Company has made provision in respect of derivative contracts as required under the applicable law or accounting standard;

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

FOR VERMA MEHTA & ASSOCIATES

Chartered Accountants

Firms Registration No: 112118W

Sandeep Verma

Partner

M.N. 045711

Place: Mumbai

Date: 31st May, 2024

UDIN: 24045711BKIAFL8177

Annexure - A to the Independent Auditors Report

The Annexure referred to in Independent Auditors Report to the members of the Company on the standalone IND AS financial statements for the period ended 31st March 2024, we report that:

(i) (a) (A) The Company has generally maintained proper records showing full particulars, including quantitative details and situation of property plant and equipment.

(a) (B) The Company has generally maintained proper records showing full particulars of intangible assets.

(b) The Company has a regular programme of physical verification of its property plant and equipment by which property plant and equipment are verified in a phased manner over a period of three years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. In accordance with this programme, certain property plant and equipment were verified during the period under audit and no material discrepancies were noticed on such verification.

(c) the title deeds of all the immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee) disclosed in the financial statements except as reported below are held in the name of the company: -

Description of item of property	Gross carrying value in Lakh	Whether title deed holder is a promoter, director Title deeds held in or relative of the name of promoter / director of employee of promoter / director	Property held since which date	Reason for not being held in the name of the company
		Not Applicable.

(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 revalued its Property, Plant and Equipment (including Right of Use assets) or intangible assets or both during the period.

(e) According to the information and explanations given to us and on the basis of our examination of the records of the Company, no proceedings have been initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(ii) (a) The inventory, except goods-in-transit and inventory lying with third parties, has been physically verified by the management at reasonable intervals during the period under audit. In our opinion, the frequency of such verification is reasonable.

(b) The Company has been sanctioned working capital limits in excess of 5 crores, in aggregate, from banks or financial institutions on the basis of security of current assets. The quarterly returns or statements and stock statements submitted for its divisions are in agreement with the books of account of the Company.

(iii) (a) The Company has provided loans in the nature of loans and provided guarantee details of which are as follows: (A) to Subsidiaries-

Sr. No. Name of Company	Nature of Relation	Facility	Amount outstanding as on 31st March 2023 (Amount in INR Lakhs)
1 Solar Magic Private Limited	Wholly Owned Subsidiary	Loan Given	225.00

(B) to Others- According to the information and explanations given to us and on the basis of our examination of the records of the Company, no loans in the nature of loans or guarantees have been provided for parties other than Subsidiaries. (b) The investments made, guarantees provided, and the terms and conditions of all loans and advances in the nature of loans granted and guarantees provided to wholly owned subsidiaries listed in the register maintained under Section 189 of the Act are not, prima facie, 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 respect of loans and advances in the nature of loans, there is no schedule of repayment of principal. However, condition for payment of interest has been stipulated and receipts on account of interest are regular.

(d) According to the information and explanations given to us and on the basis of our examination of the records of the Company, no amount is overdue.

(e) 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 granted any loans in the nature of loans either repayable on demand or without specifying any terms or period of repayment details of which are as follows:

Sr. No. Name of Company	Nature of Relation	Aggregate Amount outstanding as on 31st March 2024 (Rs. In Lakhs)	Percentage thereof to the total loans granted
1 Solar Magic Private Limited	Wholly Owned Subsidiary	225.00	100%

(iv) The Company has not granted any loans or provided any guarantees or security to the parties covered under Section 185 of the Act. The Company has complied with the provisions of Section 186 of the Act in respect of investments made or loans or guarantee or security provided to the wholly owned subsidiary covered under Section 186.

(v) In our opinion and according to the information and explanations given to us, the Company has complied with directives issued by Reserve Bank of India and the provision of sections 73 to 76 or any other applicable provisions of the Act and the (Acceptance of Deposits) Rules, 2014 with regard to the deposits accepted from the public. According to the information and explanations given to us, no order has been passed by the Company Law Board or the National Company Law Tribunal or the Reserve Bank of India or any Court or any other Tribunal.

(vi) We have broadly reviewed the books of accounts and records maintained by the Company pursuant to the Rules prescribed by the Central Government under sub section (1) of section 148 of the Act and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records.

(vii) in respect of statutory dues:

(a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, income-tax, sales tax, value added tax, duty of excise, duty of customs, service tax, GST, professional tax, cess and other material statutory dues have been generally regularly deposited during the period under audit by the Company with the appropriate authorities.

According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, value added tax, duty of excise, duty of customs, service tax, GST, professional tax, cess and other material statutory dues were in arrears as at 31st March ,2024 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there are no material statutory dues which have not been deposited with the appropriate authorities on account of any dispute, other than the following dues of duty of excise, service tax, custom duty, income tax and electricity duty:

Name of the Statute	Nature of Dues	Period to which it pertains	Forum Where Dispute is Pending	Amount (Excluding Interest and Penalty)
				(Amount in INR Lakhs)
The Central Excise Act, 1944	Excise Duty Excise	2009-2010	Commissioner of Central Excise	130.86
		2008-09, 2009-10, 2010- 11, 2014-15, 2015-16	CESTAT	280.62
		2005-06, 2006-2007	Commissioner of State Excise	164.40
		2015-16	Commissioner of Central Excise (Appeals)	152.06
Customs Act, 1962	Customs Duty	2013-14	CESTAT	25.38
Cross Subsidy Surcharges	Cross Subsidy Surcharges	01/05/2013 to 31/10/2016	Company is in the process of filing petition with Hble High Court of Dharwad	590.95
Customs Act, 1962	Customs Duty	July 2017 to February 2021	CBIC has forwarded this matter to Jt Secretary TRU (Tariff Unit)	480.00
Income Tax Act, 1961	Income Tax	2015-16 (AY 2016-17)	Commissioner of Income Tax (Appeal)	355.37
Income Tax Act, 1961	Income Tax	2009-10 (AY 2010-11)	Income Tax	4.18
Income Tax Act, 1961	Income Tax	2018-19 (AY 2019-20)	Income Tax	102.97
Income Tax Act, 1961	Income Tax	2020-21 (AY 2021-22)	Commissioner of Income Tax (Appeal)	5333.73
Goods & Service Tax	Goods & Service Tax	07/2017 to 03/2021	Commissioner of Central Tax & CX., Belagavi	4684.50
Goods & Service Tax	Goods & Service Tax	2019-20	Superintend Central Tax GST Hubbali	84.00
Goods & Service Tax	Goods & Service Tax	2022-23	Ahmedabad GST office	1.77

(viii) 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 transactions that have been not recorded in the books of account that have been surrendered or disclosed as income during the period under audit in the tax assessments under the Income Tax Act, 1961 (43 of 1961).

(ix) (a) According to the information and explanations given to us, the Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender for the period ended on 31st March 2024.

(b) As per the information, representation and explanations given to us, the Company has not been a declared wilful defaulter by any bank or financial institution or other lender.

(c) As per the information, representation and explanations given to us, the Company has applied the term loans obtained during the period upto 31st March 2024 for the purpose for which the loans were obtained.

(d) As per the information, representation and explanations given to us, the Company has not utilised funds raised for short term basis for long term purposes.

(e) As per the information, representation and explanations given to us, the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries, associates or joint ventures.

(f) As per the information, representation and explanations given to us, the Company has not raised loans during the period on the pledge of securities held in its subsidiaries, joint ventures or associate companies.

(x) (a) The Company did not raise any moneys by way of initial public offer or further public offer (including debt instruments) during the period upto 31st March 2024.

(b) The company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally convertible) during the period upto 31st March 2024, thus compliance for the requirements of section 42 and section 62 of the Companies Act, 2013 are not applicable.

(xi) (a) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit. (b) 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.

(c) According to the information and explanations given to us, the Company has not received any whistle-blower complaints (xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii)(a) to (c) of the Order is not applicable.

(xiii) According to the information and explanations given to us and based on our examination of the records of the

Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act, where applicable. The details of such related party transactions have been disclosed in the financial statements as required under Accounting standard (AS) 18, Related Party Disclosure specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014.

(xiv) (a) The Company has an internal audit system commensurate with the size and nature of its business.

(b) The reports of the Internal Auditors for the period under audit have been considered by us during the course of our audit.

(xv) According to the information and explanations given to us and based on our examination of the records of the

Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.

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

(xvii) The Company has not incurred cash losses for the period ended on 31st March 2024 and in the immediately preceding financial year i.e., F.Y. 2022-2023. Thus, paragraph 3(xvii) of the Order is not applicable.

(xviii) The Statutory Auditors of the Company has not resigned during the period ended on 31st March 2024. Thus, paragraph 3(xviii) of the Order is not applicable. (xix) on the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment financial liabilities, other information accompanying the financial statements, the auditors knowledge of the Board of Directors and management plans, no material uncertainty exists as on the date of the audit report regarding the Companys capabilities of meeting its liabilities as and when they fall due within a period of one year from the balance sheet date.

(xx) The Company has made expenditure of 18.92 Lakhs against the required amount of 71.52 Lakhs for CSR activities during the year. The Company had made excess CSR expenditure during previous financial years, details of which are as follows:

Sr. No.	Financial Year	Obligation (2% of NP)	Actual Expenditure	Excess Expenditure Amount	Set off *
1.	2021-2022	32.14	112.00	79.86	Can be set off against expenditure obligation for FY 2023-2024 and FY 2024-2025.
2.	2022-2023	55.20	161.44	106.44	Can be set off against expenditure obligation for FY 2023-2024, FY 2024-2025 and FY 2025-2026.

*As per rule 7(3) of the Companies (CSR Policy) Rules, 2014. Thus, against the shortfall of 52.60 Lakhs for F.Y 2023-2024, the Company has vide board approval dated 21/03/2024, set off the excess expenditure made in F.Y

2021-2022. The expenditure has been made on education and healthcare activities during the year. The expenditure of 15.00 Lakhs has been made with related parties during the year. As the company has made expenditure in excess of the required amount in the previous financial years which are available for set off as mentioned above, there is no requirement for the company to make a transfer of any unspent amount to a special account in compliance relevant provisions of section 135 of Companies Act, 2013 (xxi) The Companies (Auditors Report) Order (CARO) is not of applicable to the companies that have been included in the consolidated financial statements. Thus, paragraph 3(xxi) of the Order is not applicable.

FOR VERMA MEHTA & ASSOCIATES

Chartered Accountants

Firms Registration No: 112118W

Sandeep Verma

Partner

M.N. 045711

Place: Mumbai

Date: 31/05/2024

UDIN: 24045711BKIAFL8177

Annexure B to the Independent Auditors Report of even date on the standalone Ind AS Financial Statements of Godavari Biorefineries Limited

Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013 ("the Act") We have audited the internal financial controls over financial reporting of Godavari Biorefineries Limited ("the Company") as of March 31, 2024 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the period 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 (‘Guidance Note) issued by the Institute of Chartered Accountants of India (‘ICAI). These responsibilities include the design, implementation and maintenance of adequate internal effectivelyfor financialcontrols that were operating 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 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 ICAI. 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 all material maintained and if such controls operated effectively respects.

Our audit involves performing proceduresas at March 31, 2024, 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 standalone Ind AS financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is 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 standalone Ind AS financial statements for external purposes in accordance with the 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 standalone 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 unauthorised acquisition, use, or disposition of the Companys assets that could have a material effect on the standalone 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, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial based reporting were operating effectively on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the ICAI.

FOR VERMA MEHTA & ASSOCIATES

Chartered Accountants

Firms Registration No: 112118W

Sandeep Verma

Partner

M.N. 045711

sufficient

Place: Mumbai

Date: 31/05/2024

UDIN: 24045711BKIAFL8177