Jaipan Industries Ltd Auditor Reports

To,

The Members of

JAIPAN INDUSTRIES LIMITED

Report on the Audit Financial Statements

We have audited the accompanying financial statements of M/s JAIPAN INDUSTRIES LIMITED, which comprise the Balance Sheet as at 31 March 2025, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Opinion

We have audited the accompanying financial statements of Jaipan Industries Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2025, 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 then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as "the financial statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013 ("the Act") as amended, in the manner so required, and give a true and fair view in conformity with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2025, its profit (including other comprehensive income), changes in equity, and its cash flows for the year then ended.

Basis for Opinion

We conducted our audit of the accompanying financial statements of Jaipan Industries Limited ("the Company") in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Companies Act, 2013 ("the Act"), as amended. Our responsibilities under these Standards are further described in the Auditors Responsibilities for the Audit of the Financial Statements section of our report. We are required to comply with the ethical requirements of the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI), as revised in July 2023, which are consistent with the ethical requirements relevant to our audit of the financial statements under the provisions of the Act and the Companies (Audit and Auditors) Rules, 2014, as amended.

We have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. This includes maintaining independence from the Company throughout the audit, ensuring objectivity, and addressing any potential conflicts of interest as per SA200.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the financial statements for the year ended March 31,2025.

Sr Key Audit Matter	Auditors Response
1 Inventories:
The Companys inventory, valued at Rs 219.16 lakhs as of March 31, 2025 (Rs 337.20 lakhs as of March 31 , 2024), comprises raw materials, work-in-progress, and finished goods, valued at the lower of cost (moving weighted average) or net realizable value, per Ind AS 2 . We identified inventory valuation as a key audit matter due to its significance (13.1% of total assets: Rs 1,678.97 lakhs) and the judgment involved in assessing slow-moving / obsolete stock and net realizable value, influenced by market conditions (e.g., competition). The 35% reduction (Rs 118.04 lakhs) reflects increased sales, inventory clearance, and a Rs 5.50 lakh loss from the January 9, 2024, fire incident, recognized in FY 2023-24.	*Audit Procedures: To address inventory valuation, we performed the following:
	• Assessed Policies and Controls: Evaluated the Companys inventory management and valuation policies and tested the design and operating effectiveness of internal controls (Annexure B), including physical verification (CARO clause ii(a)).
	• Verified Physical Counts: Conducted test counts at the Vasai plant and other locations on March 31, 2025, reconciling with the general ledger to confirm the Rs 118.04 lakh reduction, driven by sales, clearance, and fire loss.
	• Evaluated NRV: Compared NRV to post-year-end sales data (April-June 2025), adjusting for discounts and market trends, ensuring alignment with Ind AS 2.
	• Assessed Provisions: Verified the Rs 0.50 lakh provision for slow-moving/obsolete stock (0.23% of inventory) using 1218 month aging reports and demand forecasts, engaging valuation specialists for finished goods.
	Conclusion: Based on our procedures, we found the inventory valuation reasonable and disclosures in Note 7 compliant with Ind AS 2.

Key Audit Matters

Key audit matters (KAM) 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. We have determined the matters described below to be the key audit matters to be communicated in our report.

Other Information

The Companys Board of Directors is responsible for the other information. The other information comprises the information included in the Annual Report for the year ended March 31, 2025, but does not include the financial statements and our auditors report thereon. The other information includes the Boards Report, Management Discussion and Analysis, and Corporate Governance Report.

Our opinion on the 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 financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. If, based on the work we have performed as of the date of this auditors report, we conclude that there is a material misstatement of this other information, we are required to report that fact to those charged with governance. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

The Companys Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act"), as amended, with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flows, and changes in equity of Jaipan Industries Limited ("the Company") in accordance with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India. This responsibility includes:

• Maintaining adequate accounting records in accordance with the provisions of the Act to safeguard the assets of the Company and for preventing and detecting frauds and other irregularities.

• Selecting and applying appropriate accounting policies and making judgments and estimates that are reasonable and prudent.

• Designing, implementing, and maintaining adequate internal financial controls that were operating effectively to ensure the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors 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 either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Companys financial reporting process, including the oversight of internal controls and the preparation of the financial statements for the year ended March 31, 2025, which reflect total assets of Rs. 16,78,96,502 including inventory of Rs. 2,19,15,525.

Auditors Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements of Jaipan Industries Limited ("the Company") 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 the Standards on Auditing (SAs) specified under Section 143(10) of the Companies Act, 2013 ("the Act"), as amended, will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

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

• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the 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, including those related to inventory valuation (Rs. 2,19,15,525 as at March 31,2025) and provisions for slow-moving stock.

• 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 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 this 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, considering total assets of Rs. 16,78,96,502 as at March 31,2025.

• Obtain sufficient appropriate audit evidence regarding the financial statements of the Company to express an opinion on the financial statements.

Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in

i. planning the scope of our audit work and in evaluating the results of our work; and

ii. to evaluate the effect of any identified misstatements in the standalone financial statements.

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 for the financial year ended March 31,2025 and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Companies Act, 2013 ("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.

2. As required by section 143(3) of the Act, we report that:

a. We have sought and obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit of the aforesaid 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.

c. The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity, and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account maintained for the purpose of preparation of the financial statements.

d. In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.

e. On the basis of the written representations received from the directors as on March 31, 2025, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2025, from being appointed as a director in terms of Section 164(2) of the Act.

f. Since the Companys annual turnover is less than Rs. 40 crore and paid-up capital is less than Rs. 4 crore for FY 2024-25, the requirement to report on the adequacy of the internal financial controls with reference to financial reporting under Section 143(3)(i) of the Act is not applicable, as per the exemption provided under the Companies (Auditors Report) Order, 2020. Accordingly, no separate report in "Annexure B" is included.

g. With respect to the matters to be included in the Auditors Report under Section 197(16) of the Act, in our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of Section 197 read with Schedule V of the Act.

h. With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, 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 standalone financial statements

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

iii. (a) The management has represented that, to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, 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 have been received by the Company from any person or entity, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, 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;

(c) Based on such audit procedures that were considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clauses (a) and (b) contain any material misstatement.

(d) No dividend has been declared or paid during the year by the Company.

(e) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, for maintaining books of account using accounting software with a feature of recording audit trail (edit log) facility, is applicable to the Company with effect from April 1, 2023. However, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014, is not applicable for the financial year ended March 31,2025, as the Companys turnover is below the threshold of Rs. 100 crore, as per the exemption notified by the Ministry of Corporate Affairs.

“Annexure A” to the Independent Auditors Report

Referred to in paragraph 1 under the heading Report on Other Legal and Regulatory Requirements of our report of even date to the financial statements of Jaipan Industries Limited ("the Company") for the year ended March 31,2025

Re: Jaipan Industries Limited ("the Company")

Report on the Companies (Auditors Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of Section 143(11) of the Companies Act, 2013 ("the Act")

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 state that:

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

(B) The Company has maintained proper records showing full particulars of intangibles assets.

(b) The Property, Plant and Equipment have been physically verified by the management in a phased manner, designed to cover all items 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 business. Pursuant to the program, a portion of the fixed assets was physically verified by the management during the year, and no material discrepancies were noticed between the book records and the physical assets.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company does not hold any immovable properties. Accordingly, the requirements of clause 3(i)(c) of the Order are not applicable.

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

(e) Based on the information and explanations given to us, there are no proceedings initiated or 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 has been physically verified by the management during the year, except for inventories lying with third parties. In our opinion, the frequency of verification by the management is reasonable and the coverage and procedure for such verification is appropriate. Inventories lying with third parties have been confirmed by them as at March 31,2025. There were no discrepancies of 10% or more in aggregate that were noted for each class of inventory in respect of such physical verification and third party confirmations.

(b) The Company has not been sanctioned any working capital limits in excess of Rs. 5 crore from banks or financial institutions on the basis of security of current assets at any point of time during the year. Accordingly, the requirements of clause 3(ii)(b) of the Order are not applicable.

iii) During the year the Company has neither made any investments, nor provided any loans, advances in the nature of loans, stood guarantee or provided security to companies, firms, Limited Liability Partnerships or any other parties. Accordingly, the requirement to report on clause 3(iii)(a) to (f) of the Order is not applicable to the Company.

iv) In respect of the Companys Compliance with Sections 185 and 186:

The Company has not granted any loans, made investments, provided guarantees, or given security to which the provisions of Sections 185 and 186 of the Act apply. Accordingly, the requirements of clause 3(iv) of the Order are not applicable.

v) The Company has not accepted any deposits or amounts which are 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). Accordingly, the requirements of clause 3(v) of the Order are not applicable.

vi) In respect of the Companys Maintenance of Cost Records: The Central Government has not prescribed the maintenance of cost records under Section 148(1) of the Act for any of the products manufactured by the Company. Accordingly, the requirements of clause 3(vi) of the Order are not applicable.

vii) In respect of the Companys Statutory Dues:

(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees State Insurance, Income Tax, Goods and Services Tax, and other statutory dues, with the appropriate authorities during the year. There are no undisputed statutory dues outstanding for a period of more than six months from the date they became payable as of March 31,2025.

(b) There are no disputed statutory dues that have not been deposited with the appropriate authorities as of March 31,2025.

viii) In respect of the Companys Undisclosed Income: Based on our audit procedures and the information and explanations provided by the management, no transactions were surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 that have not been recorded in the books of account.

ix) In respect of the Companys Borrowings:

(a) The Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender during the year.

(b) In our opinion and according to the information and explanations given to us, the Company is not a declared wilful defaulter by any bank or financial institution or other lender.

(c) The Company did not have any term loans outstanding during the year hence, the requirement to report on clause (ix) (c) of the Order is not applicable to the Company.

(d) On an overall examination of the financial statements of the Company, funds raised on short-term basis have, prima facie, not been used during the year for long-term purposes by the Company.

(e) The Company does not have any subsidiary, associate or joint venture. Accordingly, the requirement to report on clause 3(ix)(e) and (f) of the Order is not applicable to the Company.

x) (a) The Company has not raised any money during the year by way of initial public offer / further public offer (including debt instruments) hence, the requirement to report on clause 3(x)(a) of the Order is not applicable to the Company.

(b) The Company has not made any preferential allotment or private placement of shares / fully or partially or optionally convertible debentures during the year under audit and hence, the requirement to report on clause 3(x)(b) of the Order is not applicable to the Company.

xi) a) During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India and according to the information and explanation given to us, we have neither observed any instance of fraud by the Company or any fraud on the Company by its officers or employees of the Company nor have we been informed of such case by the Management, during the year.

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

c) Based on our audit procedures and the information and explanations provided by the management, no whistle-blower complaints have been received during the year.

xii) In respect of the Companys Nidhi Company Status: The Company is not a Nidhi Company as defined under the provisions of the Act. Accordingly, the requirements of clause 3(xii) of the Order are not applicable.

xiii) In respect of the Companys Related Party transactions: All transactions with related parties are in compliance with Sections 177 and 188 of the Act where applicable, and the details have been disclosed in the financial statements as required by the applicable accounting standards (refer Note 23).

xiv) (a) In our opinion and according to the information and explanations given to us, the Company has an internal audit system as required under section 138 of the Act which is commensurate with the sand nature of its business.

(b) The internal audit reports of the Company issued till the date of the audit report, for the period under audit have been considered by us.

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

xvi) (a) The Company, engaged in manufacturing and trading of household appliances (e.g., mixer grinders, fans), is not required to register under Section 45-IA of the Reserve Bank of India Act, 1934, as it does not meet the criteria for a Non-Banking Financial Company (NBFC), based on its financial activities (revenue: Rs 287.60 lakhs, total assets: Rs 1,678.97 lakhs).

(b) The Company has not conducted any Non-Banking Financial or Housing Finance activities during FY 2024-25, as its operations are limited to manufacturing and trading of household appliances, and thus, no Certificate of Registration from the RBI is required.

(c) The Company is not a Core Investment Company (CIC) as defined under the Reserve Bank of India Act, 1934, as it does not hold investments in subsidiaries or other companies (clause xxi).

(d) 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) of the Order is not applicable to the Company.

(e) The Company does not have any subsidiaries, associates, or joint ventures forming a Group, as defined under the RBIs Master Direction - Core Investment Companies (Reserve Bank) Directions, 2016, based on its standalone operations in household appliances manufacturing and absence of investments in other entities (total assets: Rs 1,678.97 lakhs). Consequently, no Group company is a Core Investment Company (CIC) requiring registration under Section 45-IA of the RBI Act, 1934, as confirmed by clause (xxi) (no subsidiaries).

(xvii) The Company has not incurred any cash losses in the current and immediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors during the year and accordingly requirement to report on 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 realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, our knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report that 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) In our opinion and according to the information and explanations given to us, there is no unspent amount under sub-section (5) of Section 135 of the Companies Act, 2013 pursuant to any project. Accordingly, clauses 3(xx)(a) and 3(xx)(b) of the Order are not applicable.

(xxi) The reporting under clause (xxi) 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.

ANNEXURE- B TO INDEPENDENT AUDITORS REPORT

(Referred to in paragraph 2(f) under Report on Other Legal and Regulatory Requirements section of our report of even date for the year ended 31^st March, 2025)

Report on the Internal Financial Control under Clause (i) of Subsection 3 of section 143 of the companys Act, 2013 ("the Act")

We have audited the internal financial controls over financial reporting of JAIPAN INDUSTRIES LIMITED ("the Company") as of 31^st March 2025 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date (revenue: Rs 287.60 lakhs, profit: Rs 23,59,062, total assets: Rs 1,678.97 lakhs), conducted in accordance with Standards on Auditing (SA 700).

Managements Responsibility for Internal Financial Controls

The Companys management, under the oversight of the Board of Directors and Audit Committee, is responsible for establishing and maintaining internal financial controls based on the criteria established by the Company, aligned with the essential components of internal control (control environment, risk assessment, control activities, information and communication, and monitoring) 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 designing, implementing, and maintaining adequate internal financial controls to ensure the orderly and efficient conduct of its business, including adherence to Company policies, safeguarding of assets (e.g., inventory: Rs 219.16 lakhs), prevention and detection of frauds and errors, accuracy and completeness of accounting records (e.g., revenue: Rs 287.60 lakhs), and timely preparation of reliable financial information, including borrowings (Rs 705.09 lakhs), as required under Section 134(5)(e) of the Companies Act, 2013.

Auditors Responsibility

Our responsibility is to express an opinion on the adequacy and operating effectiveness of 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 and the Standards on Auditing, prescribed under Section 143(10) of the Companies Act, 2013, issued by ICAI. These require compliance with ethical requirements and planning and performing the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were established and operated effectively in all material respects, covering key processes such as revenue recognition, inventory management (Rs 219.16 lakhs), and borrowings (Rs 705.09 lakhs).

Our audit involved procedures to obtain evidence on the adequacy and operating effectiveness of the internal financial controls system, including: (a) obtaining an understanding of controls over key processes (e.g., procurement, sales, inventory); (b) assessing risks of material weakness in financial reporting; (c) testing and evaluating the design and operating effectiveness of controls, such as segregation of duties and reconciliation processes; and (d) verifying compliance with the audit trail requirement per Rule 11(g). The procedures were selected based on our judgment, focusing on risks of material misstatement due to fraud or error, aligned with SA 265 and SA 240.

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

Jaipan Industries Limiteds internal financial controls over financial reporting (IFC-FR) 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 Indian Accounting Standards (Ind AS), as prescribed under Section 133 of the Companies Act, 2013. These controls, aligned with the COSO frameworks essential components (control environment, risk assessment, control activities, information and communication, monitoring) as per the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI), include 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 (e.g., revenue: Rs 287.60 lakhs, borrowings: Rs 705.09 lakhs) are recorded as necessary to permit preparation of financial statements in accordance with Ind AS, and that receipts and expenditures are made only with authorizations from management and the Board of Directors, overseen by the Audit Committee.; and

(3) Provide reasonable assurance for the prevention or timely detection of unauthorized acquisition, use, or disposition of assets (e.g., manufacturing equipment) 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 over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting, and such controls were operating effectively as of March 31, 2025, based on the internal control over financial reporting criteria established by the Company, aligned with the COSO frameworks essential components stated in the Guidance Note on IFC issued by ICAI. No material weaknesses were identified during our audit, and the Companys audit trail compliance (Rule 11(g), MCA notification, 2025) supports the accuracy of financial reporting.

	For SDA & ASSOCIATES
	CHARTERED ACCOUNTANTS
	DAYARAM PALIWAL
	M.NO.109393
PLACE : MUMBAI	FIRM REG.NO. 120759W
DATE : 30-05-2025	UDIN : 25109393BMKSIH1512