Karma Energy Ltd Auditor Reports

Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial ^{statements may be influenced.We consider quantitative materiality and qualitative factorsin (i) planning} the scope of our aud:t work and in evaluating the results of our work; and (ii) to evaluate_ the effectof any identifiedmisstatements in the nnancial ?statements. We communicate with those charged with govemancc regarding, among other matters, the planned scope ? and timing of the audit and significantaudit findings, including any significantdeficiencies in internal control that we identifyduring our.audit. We also provide those^. .^{charged with} . ^{goven1ance with a statement that we have complied with rele ant} 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 a licable, related safeguards.

From the matters communicated with those charged with governance,we determine those matters that were of most significancein the audit of the financialstatements of the current period and are thereforethe 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.

1. 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 A" a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act, based on our audit we report that: a) We have sought and obtained all the informationand explanations which to the best of our knowledge and belief were necessary forthe purposes of our audit. b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears fromour examination of those books, except that the back up of books of accounts is scheduled weekly instead of daily. c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account. d) . In our opinion, the aforesaidfinancialstatements comply with the Ind AS specifiedunder Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. e) On the basis of the written representations received fromthe 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 frombeing appointed as a director in terms of Section 164 (2) of the Act. f) ^{The modifications relating to the maintenance of accounts and other matters connected therewith} are as stated iri paragraph 2.(b) above on reporting under Section 143(3)(b) of the Act. g) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and ?the operating effectiveness of such controls, refer to our separate Report in "Annexure B". Our report expresses an unmodified opinion on the adequacy and operating effectivenessof the Companys internalfinancialcontrols over financialreporting. h) With respect to the other matters to be included in the Auditors Report in accordance with the requirements of section 197( 16) of the Act, as amended: In our opinion and to the best of our informationand according to the explanations given to us, the remuneration paid/provided by the Company to its directors during the year is in accordance with the provisions of section 197 of 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 informationand according to the explanations given to us:

1. The Company has disclosed the impact of pending litigations on its financial position in its ,.&:-= financialstatements. Refernote 25 to the financialstatements. ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeablelosses.

. (d) The Company has not revalued any of its Property, Plant and Equipment (including Right of Use assets) or intangible assets during the year. Accordingly, paragraph 3(i)(d) of the Order is not applicable.

B. Balance outstanding as at Balance sheet date in respect of above: Other party -Rs. 1,0 l 2.17 Lakhs

The Company has not provided any guarantee or security, to companies, firms, Limited Liability Partnerships or any other parties during the year (b) The investments made and the terms and conditions of the grant of all the above-mentioned loans, during the year are, in our opinion, prima facie, not prejudicial to the Companys interest.

(c) In respect of loans granted by the Company, the repayment of principal is on demand and payment ofinterest has been regular.

(d) According to informationand explanations given to us and based on the audit procedures performed, in respect of loans granted there is no overdue amount remaining outstanding as at the balance sheet date.

( e) There were no loans or advance in the nature of loan granted to companies, firms, Limited Liability Partnerships or any other parties which was fallendue during the year, that have been renewed or extended or fresh loans granted to settle the overdues of existing loans given to the same parties.

(f) According to informationand explanations given to us and based on the audit procedures performed, the Company has granted loans repayable on demand during the year as referredin clause (a) abov.e. The a. Aggregate amount of loans granted /outstanding to other party repayable on demand: Rs. 1,012.17 lakhs b. Percentage of such loans to total loans granted /outstanding at year end: 100 % (iv) According to informationand explanation given to us, the Company has not granted any loans, made investments or provided guarantees or securities, during the year that are covered under the provisions of sections 185 or 186 of the Companies Act, 2013, and hence reporting under clause (iv) of the Order is not applicable. (v) According to informationand explanations given to us, the Company has not accepted any deposits from the public in accordance with the provisions of section 73 to 76 or any relevant provisions of the Act and rules framed thereunder. Accordingly, paragraph 3(v) of the Order is not applicable. (vi) To the best of our knowledge and as explained the Central Governmenthas not prescribed the maintenance of cost records under section 148(1) of the Act, forany of the products of the Company.

(vii) (a) According to the informationand 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 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 have been regularly deposited during the year by the Company with the appropriate authorities. According to the information and explanations given to us, no undisputed statutory dues referredabove were in arrears as at the year end fora period of more than six months from the date they became payable.

(b) According to the informationand explanations given to us by the Company and on the basis of our examination of the books of account and the record, there are no dues of Sales Tax, Service Tax, Goods and service tax, Income tax, Duty of Customs, Duty of Excise, Value added tax outstanding on account of any dispute except forincome tax as stated below: :

(viii) According to the informationand explanations given to us, no transactions have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961) which was not recorded in the books of account. Accordingly, paragraph 3(viii) of the Order is not applicable. (ix) (a) According to the information and explanations given to us and on the basis of our audit procedures, the Company has not defaultedin repayment of loans or any other borrowings or payment ofinterest there on to any lender. (b) According to the informationand explanations given to us and on the basis of our audit procedures, the Company has not been declared wilfuldefaulter by any bank or financial institution or government or any governmentauthority.

(c) According to the informationand explanations given to us and based on our examination of the records of the Company, no term loans were obtained during the year by the Company. In respect of the term loan outstanding at the beginning of the year, there was no amount pending to be utilised during the year.

(d) In our opinion and according to the information and explanations given to us and based on the audit procedures performed by us, no funds have been raised on short term basis by the Compar1y.

(e) On an overall examination of the financialstatements of the Company, the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiary.

(f) The Company has not raised any funds during the year and hence reporting on clause 3 (ix)(f) of the Order is not applicable.

(x) (a)and According to the information explanations given to us and based on the audit procedures performed by us, the Company did not raise any money by way of initial public offeror further public offer (including debt instruments) during the year. Accordingly, paragraph 3(ix)(a) of the Order is not applicable.

(b) According to the informationand explanations given to us and based on 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.

(xi) (a) According to the informationand explanations given to us, no fraud by the company or any fraudon the company has been noticed or reported duringthe year.

(Referred to in paragraph 2(g) under "Report on Other Legal and Regulatory Requirements" section of our report to the members ofKarma Energy Limited ofeven date)

We have audited the Internal Financial Controls with referenceto the financialStatements of of Karma Energy Limited ("the Company") as ofMarch 31, 2025 in conjunctionwith our audit of the financialstatements of the Company forthe year ended on that date.

In our opinion, the Company has, in all material respects, an adequate internal financial controlswith reference to Financial statements and such internal financial controlswith referenceto Financial Statements were operating effectivelyas at March 31, 2025, based on the internalcontrol over financialreporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI).

The Board of Directors of the Company is responsible for establishing and maintaining Internal Financial Controls based on the InternalControl over Financial Reporting criteria established by the Company considering the essential components of InternalControl stated in the Guidance Note on Audit ofInternalFinancial Controls over Financial Reporting issued by the ICAI. These responsibilities include the design, implementation and maintenance of adequate internalfinancialcontrols that were operating effectivelyforensuring the orderly and efficientconduct of its business, including adherence to companys policies, the safeguarding of its assets, the prevention and detection of fraudsand errors, the accuracy and completeness of the accounting records, and the timely preparation ofreliable financialinformation,as required under the Act.

Our responsibility is to express an op1mon on the Companys Internal Financial Controls over Financial Reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by the ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit oflnternalFinancial Controls, both applicable to an audit oflnternalFinancial 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 maintained and if such controls operated effectivelyin all material respects.

Our audit involves perfonning procedures to obtain audit evidence about the adequacy of the InternalFinancial Controls system. over Financial Reporting and their operating effectiveness. Our audit of Jnternal Financial Controls over Financial Repor.ing included obtaining an understanding of Internal Financial Controls over Financial Reporting, assessing the risk that a materialweakness 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 fraudor error.