Jagatjit Industries Ltd Auditor Reports

TO THE MEMBERS OF JAGATJIT INDUSTRIES LIMITED

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements of Jagatjit Industries 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, notes to the standalone financial statements, including a summary of the 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, its profit and total comprehensive income, 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 (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 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 made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs 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.

Emphasis of Matters

Attention is drawn towards Note No 22(iii) towards Write back of earlier year security deposit, Note 22(ii) regarding item of exceptional nature, Note no 31 towards contingent liability, Note no 41(xii) towards Going concern.

Our opinion is not qualified on above matters Key Audit Matters

1. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the financial year ended March 31,2026. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

2. We have determined the matters described below to be the key audit matters to be communicated in our report.

The Key Audit Matter	How the matter was addressed in our audit
1) Provision and contingent liabilities relating to taxation, litigation and claims ( as described in note, 31 of the financial statements.)	Our procedures included the following:
	Assessed the appropriateness of the Companys accounting policies relating to provisions and contingent liabilities, in accordance with the applicable accounting standards.
The company operates in various states within India, exposing it to a variety of different Central and State Laws, Regulations and different interpretations thereof. In this regulatory environment, there is an inherent risk of litigation and claims.
	Obtained an understanding of the process, and evaluated the design and tested the operating effectiveness of the key internal controls around the recording and assessment ol provisions and contingent liabilities.
Consequently, provisions and contingent liability disclosures may arise from direct and indirect tax proceeding, legal proceedings including regulatory and other government/department proceedings, as well as investigations by authorities and commercial claims.
	On a sample basis, obtained and assessed the Companys assumptions and estimates in respect of litigations, including the liabilities or provisions recognised or contingent liabilities disclosed in the standalone financial statements, by reviewing the appropriateness of the probability assessment ol unfavourable outcomes of various litigations, with the help of auditors subject matter specialists, wherever required.
The level of management judgement associated with determining the need for, and the quantum of, provisions for any liabilities and disclosures of any contingent liabilities arising from these litigations is considered to be high. This judgement is dependent on a number of significant assumptions and assessments which involves interpreting the various applicable rules, regulations, practices and considering precedents in the various jurisdictions, for which the management uses various subject matter experts.
	Perused the orders of Assessing officer Appellate authorities and the related Jurisdictional High Court judgment/ other courts on the matter.

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The Key Audit Matter	How the matter was addressed in our audit
In view of the uncertainty relating to the outcome of these litigations, the significance of the amounts involved, and the subjectivity involved in managements judgement, this matter has been considered as a key audit matter for the current year audit.	On a sample basis, performed substantive procedures on the underlying calculations supporting the amount involved recorded as provisions or disclosed as contingent liability and evaluated the appropriateness and adequacy of related disclosures in the standalone financial statements in accordance with applicable accounting standards.
2) Revenue recognition from sale of products/ Royalty and Franchise agreements	Our procedures included the following:
	- Assessed the Companys revenue recognition accounting policy for sale of products/ royalty and franchise business including those relating to discounts and incentives as per Ind As -115.
(Note no 21 of the standalone financial statements)
Revenue from sale of products is recognised when control of products has been transferred to the customer and there is no unfulfilled obligation that could affect the customers acceptance of the products. Revenue from sale of products is measured at the fair value of the consideration received or receivable, net of returns and allowances, discounts and incentives. Revenue generated on account of Royalty as per commercial agreements is subject to waiver in respect of Minimum Guarantee Quantum based on the premise of commercial expediency.
	- Understood, evaluated and tested on sample basis the design and operating effectiveness of key internal controls over recognition and measurement of revenue, discounts, and incentives.
	- Performed test of details on a sample basis and inspected the underlying accounting documents relating to sales and accrual of discounts and incentives.
	- Tested on a sample basis, sales transactions during the year.
	- Performed analytical procedures on revenue on all streams.
	- Assessed the disclosures in the standalone financial statements in respect of revenue, discounts and incentives for compliance with disclosure requirements.

Information Other than the Standalone Financial Statements and Auditors Report Thereon

The Companys management and Board of Directors are responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Boards Report including Annexures to Boards Report, Corporate Governance Report etc. included in Annual 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. In connection with the information included in the Annual report i.e. Directors Report, Management Discussion and Analysis, Corporate Governance Report, 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 this fact. We have nothing to report in this regard.

Managements Responsibility for the Standalone Financial Statements

The accompanying standalone financial statements have been approved by the Companys Board of Directors. The Companys

Board of Directors is responsible for the matters stated in section 1 34(5) of the Act with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other total comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS specified under Section 1 33 of the Act and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 Board of Directors 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 Board of Directors 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.

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Auditors Responsibilities for the Audit of the Standalone 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 specified under Section 143(10) of the Act, we exercise professional judgment and maintain professional scepticism 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 controls 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 the Board of Directors 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 standalone 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) Further to our comments in Annexure B, as required by Section

143(3) of the Act based on our audit, we report, to the extent

applicable, 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 of the accompanying standalone financial statements;

(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 read with our remarks for certain matters in respect of audit trail as required under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 as amend as stated in paragraph (i)(vi) below.

(c) The standalone financial statements dealt with by this report are in agreement with the books of account;

(d) In our opinion, the aforesaid standalone financial statements comply with the Ind As as specified under Section 133 of the Act.

(e) On the basis of the written representations received from the directors taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2026 from being appointed as a director in terms of Section 164 (2) of the Act;

(f) The modifications relating to the maintenance and other matters connected therewith in respect of audit trail as stated in the paragraph 1(b) above on reporting under section 143 (3)(b) of the Act where applicable is mentioned in paragraph (i)(vi) below on reporting under Rule 11 (g) of the Companies (Audit and Auditors) Rules, 2014 (as amended);

(g) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company as on 31st March, 2026 and the operating effectiveness of such controls, refer to our separate report in Annexure A wherein we have expressed an unmodified opinion; and

(h) As required by Section 197(16) of the Act based on our audit, we report that the Company has paid remuneration to its directors during the year in accordance with the provisions of and limits laid down under Section 197 read with Schedule V to the Act.

(i) With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as

amended], in our opinion and to the best of our information and according to the explanations given to us:

[i] The Company, as detailed in Note 31 to the standalone financial statements, has disclosed the impact of pending litigations on its financial position as at 31st March, 2026;

[ii] The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses as at 31st March, 2026.

[iii] There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31st March, 2026;

[iv] [a] The Management has represented that, as disclosed in Note 41 to the standalone financial statements, no funds [which are material either individually or in the aggregate] have been advanced or loaned or invested [either from borrowed funds or securities 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, as disclosed in Note 41 to the standalone financial statements,, no funds [which are material either individually or in the aggregate] have been received by the Company from any person [s] or entity [ies], 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 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 performed as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the the management representations, as provided

under sub-clauses [a] and [b] above, contain any material misstatement.

[v] The Company has neither declared/ paid any dividend during the year, nor has proposed any final dividend for the year and therefore the requirement of compliance of Sec 123 of the Act are not applicable.

[vi] Based on our examination which included test checks and in accordance with requirements of the Implementation Guide on Reporting on Audit Trail under Rule 11 [g] of the Companies [Audit and Auditors] Rules, 2014, the Company in respect of financial year commencing on 1st April, 2025, has used accounting softwares for maintaining its books of account, which have a feature of recording audit trail [edit log] facility and the same has operated throughout the year for all relevant transactions recorded in the respective software. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with for the period where audit trail is enabled and operated and for this we also relied upon the certificate of the management. Furthermore, the audit trail has been preserved by the Company as per the statutory requirements for record retention where the audit trail feature was enabled. Further, the daily back-up of audit trail [edit log] in respect of its accounting software for maintenance of all accounting records, an accounting software for journal entries has been maintained on the servers physically located in India as certified by the management.

2] As required by the Companies [Auditors Report] Order, 2020 [the Order] issued by the Central Government in terms of Section 143[11 ] of the Act, we give in Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable

For V. P. Jain & Associates

Chartered Accountants Firms registration number: 015260N

Sarthak Madaan

Place : New Delhi Partner

Date : 24.08.2026 Membership number: 547131

UDIN: 26547131OSQBRD9093

ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE TO THE MEMBERS OF JAGATJIT INDUSTRIES LIMITED ON THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2026

Independent Auditors Report on the internal financial controls with reference to the standalone financial statements under Clause [i] of Sub-section 3 of Section 143 of the Companies Act, 201 3 [the Act]

In conjunction with our audit of the standalone financial statements of Jagatjit Industries Limited [the Company] as at and for the year ended 31st March, 2026, we have audited the internal financial controls with reference to financial statements of the Company as at that date.

Managements Responsibility for Internal Financial Controls

The Companys Board of Directors is responsible for establishing and maintaining internal financial controls based on the internal financial control with reference to financial statements 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 for the Audit of the Internal Financial Controls with Reference to Financial Statements

Our responsibility is to express an opinion on the Companys internal financial controls with reference to financial statements 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 prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls with reference to financial statements, 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 with reference to financial statements 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 with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements includes obtaining an understanding of such internal financial controls, , 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 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 with reference to financial statements. .

Meaning of Internal Financial Controls with Reference to Financial Statements

A companys internal financial control with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal

financial control with reference to financial statements 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 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 financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls with reference to financial statements 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 with reference to financial statements 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 with reference to financial statements and such controls with reference to financial statements were generally operating effectively as at 31 March 2026, based on the internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the ICAI.

For V. P. Jain & Associates

Chartered Accountants Firms registration number: 015260N

Sarthak Madaan

Place : New Delhi Partner

Date : 24.08.2026 Membership number: 547131

UDIN: 26547131OSQBRD9093

ANNEXURE B REFERRED TO IN PARAGRAPH UNDER THE HEADING REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS OF THE INDEPENDENT AUDITORS REPORT OF EVEN DATE TO THE MEMBERS OF JAGATJIT INDUSTRIES LIMITED ON THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2026

In terms of the information and explanations sought by us and given by the Company and the books of account and records examined by us in the normal course of audit, and to the best of our knowledge and belief, we report that:

(i) (a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment, capital work-in-progress. and relevant details of right-of-use assets.

(B) The Company has 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, capital work-in-progress and relevant details of right-of-use assets under which the assets are physically verified in a phased manner over a period of three years, which in our opinion, 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, capital work-in-progress and relevant details of right-of- use assets were verified during the year and according to the information and explanations given to us no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us, title deeds of all freehold immovable properties and lease deed of lease hold properties are in the name of the Company, except as stated in footnote no 3(ii) of the financial statements. Original copy of title deeds (Flat Buyers Agreement) in respect of Asoka estate 9 th and 10 th floor , New Delhi have been deposited as security with banks under loan agreement. It is confirmed by the management that the relevant certificate of the Bank for deposit of title deeds obtained in earlier years is on record with the Company.

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

(e) On the basis of the informations and explanations given to us and examination of records, no proceedings have been initiated during the year or are pending against the Company as at March 31,2026 for holding any benami property under the Benami T ransactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.

(ii) (a) The inventories (except Stock in Transit) were physicallyverified during the year by the Management at reasonable intervals. For stock in transit subsequent receipts have been linked with the inventory record. In our opinion and according to the information and explanations given to us, the coverage and procedure of such verification by the Management is appropriate having regard to the size of the Company and the nature of its operations. No discrepancies of 10% or more in the aggregate for each class of inventories were noticed on such physical verification of inventories between the physical stocks and book records.

(b) According to the information and explanations given to us, the Company has been sanctioned working capital limits in excess of 5 crores, in aggregate, during the year, from banks on the basis of security of current assets. In our opinion and according to the information and explanations given to us and on the basis of test checks on a limited scale and relying on the assertions of management, the quarterly returns and statements comprising (stock statements, book debt statements, and statements on ageing analysis of the debtors) filed by the Company with such banks as mentioned in Note No 40 are prima facie in agreement with the unaudited/audited books of account of the Company, of the respective quarters.

(iii) (a) 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 partnership or any other parties during the year. The aggregate amount of outstanding of loans granted in the earlier year to the related parties is Rs 41 Lakhs which constitute 11% percentage thereof to the total loans outstanding as on the reporting date.

(b) The Company has not given any loan to its employees and accordingly the reporting requirement of this clause whether terms of the loan are prima facie, prejudicial to the interest of the company is not applicable.

(c) (d),(e) Since no loan, investment, guarantee or security and any advance in the nature of loan has been provided by the company during the year to Companies, firms, Limited liability partnership or any other parties, reporting requirements in respect of stipulations of the loans, overdue amounts outstanding, and extension of loan which has fallen due during the year as per clause (c),(d) & (e) respectively are not applicable. The aggregate amount of outstanding from the related parties is Rs 41 Lakhs which constitute 11% percentage thereof to the total loans (including those provided for) outstanding.

(f) According to the information and explanations given to us and on the basis of our examination of the records , the Company has not granted any loans or advances in the nature of loan, which is payable on demand or without specifying the terms or period of payments.

(iv) Since no loan, investment, guarantee or security or any advance in the nature of loan has been provided by the company during the year, reporting requirement under this clause with respect to compliance under sec 185 and 186 is not applicable.

(v) In our opinion, and according to the information and explanations given to us, the Company has not accepted any deposits during the year and there are no amounts which have been deemed to be deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). On the basis of legal opinion, an amount of Rs 700 Lakhs received in earlier years is claimed as exempt deposits. It is confirmed by the company that there are no outstanding deposits on the reporting date and 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 during the year.

(vi) We have broadly reviewed the cost records maintained by the Company as required under sub-section (1) of Section 148 of the Act read with the Rules made by the Central Government in respect of specified product of the company and are of the opinion that, prima facie the prescribed records have been maintained. However, we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

(vii) In respect of statutory dues:

(a) In our opinion, and according to the information and explanations given to us, the company has generally been regular in depositing undisputed statutory dues including Goods and Service tax, provident Fund, Employees State insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues, as applicable to it with the appropriate authorities. There were no undisputed amounts payable in respect of the aforesaid statutory dues in arrears as at 31.03.2026 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 statutory dues as referred to in sub clause (a) which have not been deposited as at 31.03.2026 on account of any dispute except for the following:

Sr. No.	Name of Statute	Nature of Dues	Amount (Rs) Lakhs	Period for which the amount relates	Forum where dispute is pending
SERVICE TAX
1	The Finance Act, 1994	Demand and Penalty towards Management maintenance and Repair Services	18	June, 2005	CESTAT, Chandigarh
2	The Finance Act, 1994	Demand and Penalty towards conversion charge for SMP & Ghee under category of Supply of Tangible Goods	62	May 2008 to April 2010	CESTAT, Chandigarh
3	The Finance Act, 1994	Penalty in the above matter	62	May 2008 to April 2010	CESTAT, Chandigarh

SALES TAX

4	Sales Tax under Telangana VAT Act	Demand and Penalty on account of VAT on Royalty Income	103	2012-13 to November 2014	Appellate Deputy Commissioner, Hyderabad
5	Sales Tax under Punjab VAT Act & Central Sales Tax Act	Demand and Penalty on account of disallowance of VAT input credit on Rice Husk	220	2010 - 11	Deputy Excise and Taxation Commissioner (Appeals), Jalandhar
6	Sales Tax under Haryana VAT Act	Demand and Penalty on account of disallowance of VAT input credit on Rice Husk	40	2011 -12	Joint Excise & Taxation Commissioner (A), Rohtak
7	Jharkhand VAT Act	Demand in respect of VAT	65	2015-16	Commissioner (Appeals), Ranchi
8	Dehradun Tax Act	Demand of Sales Tax	71	2016-17	Commissioner (Appeals), Uttarakhand
9	CGST Act 2017	Demand of GST	112	2019-20	Appeal against the orders of AETC with commissioner appeals, Jalandhar.
10	CGST Act 2017	Demand of GST	52	2020-21	In the process of filling appeal against the orders of AETC with commissioner appeals, Jalandhar.

(viii) According to the information and explanations given to us, we report that no transactions were surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961) which have not been previously recorded in the books of account.

(ix) (a) According to the information and explanations given to

us, on the basis of our examination of the records and certificate of Indus Ind Bank, the Company has not defaulted in the repayment of the Loans and interest thereon to any lender.

(b) According to the information and explanations given to us and on the basis of our examination of the records as stated in sub para (a), the Company has not been declared wilful defaulter by any bank or financial institution or any other lender.

(c) According to the information and explanations given to us and on the basis of our examination of the records, Company has applied the term loans for the purposes for which the same have been obtained.

(d) Current ratio less than one generally indicates the utilisation of short term fund for long term purposes, however that is not a conclusive evidence. The lower current ratio and long term sources of funds falling short by Rs 12,858 Lakhs vis a vis long term application of funds, as explained by the management, is on account of operational losses in earlier years and during the year has resulted in negative equity, the major component of Long term sources. It is explained by the management that it has not utilised short term bank borrowings for long term purposes during the year. We have relied upon the assertion of management.

(e) The Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiary, Joint venture or associates.

(f) The Company has not raised any loan on the pledge of securities held in its subsidiary. Accordingly, the requirement of reporting under this clause is not applicable.

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(x) [a] The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) during the year. Accordingly, reporting under clause 3[x][a] of the Order is not applicable to the Company.

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

(xi) (a) According to the information and explanations given to us and to the best of our knowledge no fraud by the Company and no material fraud on the Company has been noticed or reported during the period covered by our audit.

(b) No report under sub-section (1 2) of section 143 of the Companies Act has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and up to the date of this report.

(c) As represented by the Management, there was no whistle blower complaints received by the Company during the year and up to the date of this audit report.

(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) of the Order is not applicable.

(xiii) In our opinion and according to the information and explanations given to us, transactions entered into by the Company with the related parties are in compliance with Sections 177 and 188 of the Act, where applicable. Further, the details of such related party transactions have been disclosed in the standalone financial statements, as required under Indian Accounting Standard (Ind AS) 24, Related Party Disclosures specified in Companies (Indian Accounting Standards) Rules 201 5 as prescribed under Section 133 of the Act

(xiv) (a) In our opinion the Company has an adequate internal audit system commensurate with the size and the nature of its business. However, it needs to be further strengthened in terms of scope, timely completion and compliance of the observations by the management.

(b) We have considered, the internal audit reports for the year under audit, issued to the Company during the year and till date, in determining the nature, timing and extent of our audit procedures.

(xv) As per the information available and to the best of our knowledge in our opinion during the year the Company has not entered into any non-cash transactions with its Directors or persons connected with its directors and and accordingly, reporting under clause 3(xv) of the Order with respect to compliance with the provisions of Section 192 of the Act are not applicable to the Company.

(xvi) (a^c) As per information given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, reporting under clause 3^)^), and (c) of the Order is not applicable.

(b) Further, based on the information and explanations given to us and as certified by the management, there are five core investment companies within the Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016).

(xvii) The Company has not incurred cash losses during the current financial year but had incurred the same in the immediately preceding financial year.

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

(xix) According to the information and explanations given to us and on the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information in the standalone financial statements and our knowledge of the plans of the Board of Directors and Management and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report 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 this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.

(xx) (a^b) The provisions of section 135 are not applicable and hence reporting under this clause is not applicable.

(xxi) The reporting under clause 3(xxi) of the Order is not applicable in respect of audit of standalone financial statements of the Company. Accordingly, no comment has been included in respect of said clause under this report.

For V. P. Jain & Associates

Chartered Accountants Firms registration number: 015260N

Place : New Delhi	Sarthak Madaan Partner
Date : 24.08.2026	Membership number: 547131
UDIN: 26547131OSQBRD9093