Kataria Industries Ltd Auditor Reports

Independent Auditors Report

To the Members of Kataria Industries Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of M/s. Kataria Industries Limited [CIN:U27300MP2004PLC029530] (herein referred to as "the Company"), which comprise the balance sheet as at March 31, 2025, the statement of Profit and Loss, and the statement of cash flows for the year then ended, and notes to the financial statements, including material accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Accounting Standards prescribed under section 133 of the Act and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2025, its profits and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the 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 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 financial statements under the provisions of the Act and rules made there under, 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 financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters are 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.

The key audit matter	How the matter was addressed in our audit
I. Issue of shares in initial public offer and utilization of proceeds from the issue. (See note 2 to the financial statements)	Our audit procedures included the following:
	> Understanding the Companys process and procedures for recognition and measurement of financial instruments (equity shares) issued.
We have decided this item as a key audit matter because -
i. Shares were issued at premium,	> Evaluating the design, Implementation and testing the operating effectiveness of Companys key internal related to the Companys process relating to the recognition and measurement of the financial instrument (equity shares).
ii. Statutory obligation of the Company to utilize the proceeds of money for objects stated in the prospectus filed for initial public offer, and	> Read minutes of meetings to verify the approvals by the board of directors.
iii. Complexity in application of recognition and measurement principles.	> Assessing the methods used to value the financial instruments (equity shares) and ensuring ourselves of the consistency of accounting methods.
	> Performed necessary procedures to verify the accuracy of amounts disclosed in the financial statements (equity shares) for compliance with applicable Indian Accounting Standards and accounting principles generally accepted in India.
	> Assessing the adequacy of disclosures provided in the financial statements in respect of issue of financial instruments (equity shares).

 

The key audit matter	How the matter was addressed in our audit
II. Acquisition of a manufacturing unit from M/s Ratlam Wires Private Limited (See note 42 to the financial statements)	Our audit procedures included the following:
	> Understanding the agreement executed by the Company to acquire a manufacturing unit from another Company.
We have decided this item as a key audit matter because of -	> Understanding the Companys process and procedures for recognition and measurement of financial instruments (equity shares) acquired.
i. substantial amount of assets acquired and liabilities assumed and
ii. complexity in application of recognition and measurement principles	> Evaluating the design, implementation and testing the operating effectiveness of Companys key internal related to the Companys process relating to the recognition and measurement of the financial instrument.
	> Read minutes of meetings to verify the approvals by the board of directors.
	> Assessing the methods used to value the financial instruments and ensuring ourselves of the consistency of accounting methods.
	> Performed necessary procedures to verify the accuracy of amounts disclosed in the financial statements (equity shares) for compliance with applicable Indian Accounting Standards and accounting principles generally accepted in India.
	> Assessing the adequacy of disclosures provided in the financial statements in respect of issue of financial instruments (equity shares).

Other Information

The Companys management and Board of Directors are responsible for the other information. The other information comprises the information included in the Companys annual report, but does not include the financial statements and our auditors report thereon. The Companys annual report is expected to be made available to us after the date of this auditors 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 when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

Managements and Board of Directors Responsibilities for the Audit of the Financial Statements

The Companys management and Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the state of affairs, profits and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Board of Directors either intends to liquidate the company or to cease operations, or has not realistic alternative to do so.

The Board of Directors are also responsible for overseeing the Companys financial reporting process.

Auditors Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 the SAs will always detect material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decision of the users taken on the basis of these 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 risk of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is 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) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial control system in place and the operating effectiveness of such control.

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

> Conclude on the appropriateness of managements and Board of Directors use of the going concern basis of accounting in preparation of financial statements 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 our auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern.

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

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charge 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 financial statements of current period and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation preclude 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 in terms of section 143 (11) of the Act, we give in "Annexure A" a statement on the matters specified in paragraph 3 and 4 of the order, to the extent applicable.

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 information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

b. In our opinion, proper books of accounts as required by law have been kept by the Company so far as it appears from our examination of those books, except for certain matters in respect of audit trail as stated in paragraph 3(vi) below.

c. The balance sheet, the statement of Profit and Loss, and the statements of Cash Flow dealt with by this report are in agreement with relevant books of account,

d. In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014,

e. On the basis of 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. The modifications relating to the maintenance of accounts and other matters connected therewith in respect of audit trail are as stated in paragraph 2(b) above on reporting under section 143(3)(b) of the Act and paragraph 3(vi) below on reporting under rule 11(g) of the Companies (Audit and auditors) Rules, 2014.

g. With respect to adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure A".

3. With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanation given to us:

i. The Company has disclosed the pending litigations which may have impact on its financial position in its financial statements. (Refer Note 38 to the financial statements.)

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

iii. There has been no occasion or requirement to transfer any amount to the Investor Education and Protection Fund by the Company.

iv. (a) The management has represented that, to the best of its knowledge and belief, as disclosed in notes 41(i) to the financial statements, 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 persons or entities, 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 beneficiary") or

• provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(b) The management has represented that, to the best of its knowledge and belief, as disclosed in notes 41(i) to the financial statements, no funds have been received by the company from any persons or entities, 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 from or on behalf of the Ultimate Beneficiaries; and

(c) Based on such audit procedures as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused to us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e) under sub-clause (iv)(a) and (iv)(b) contain any material misstatement.

v. The company has neither declared nor paid any dividend during the year.

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, except for the instances mentioned below, the Company 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 softwares:

a. The feature of recording audit trail (edit log) facility was not enabled to log any direct data changes for the accounting software used for recording and maintaining payroll information.

Further, where audit trail (edit log) facility was enabled and operated throughout the year, we did not come across any instance of audit trail feature being tampered with during the course of our audit.

The back-up of audit trail (edit log) has been preserved by the Company as per the statutory requirements for record retention.

4. With respect to the matter to be included in the Auditors Report under section 197(16) of the Act:

In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under section 197 of the Act.

	For Ashok Kumar Agrawal & Associates
	Chartered Accountants
	Firm Reg. No. 022522C
	CA Ashok Kumar Agrawal
Place: Indore	(Proprietor)
Date: 28th May 2025	Membership No.: 071274
	UDIN: 25071274BMMJZQ8317

Annexure A to the Independent Auditors Report of even date on the Financial Statements of Kataria Industries Limited for the year ended 31 March 2025

(Referred to in paragraph 1, under ‘Report on Other Legal and Regulatory Requirements section of our Report of even date)

(i) (a) (A) The company has maintained proper records showing full particulars, including quantitative details of property, plant and equipment (hereinafter referred to as PPE) except for sufficient description of the PPE to make identification possible and its situation in the current year. The register for property, plant and equipment is maintained in the spreadsheet file. The controls and security measures in the register for property, plant and equipment are such that once finalised, it can be altered without proper audit trail.

(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 by which all property, plant and equipment are verified in a phased manner. In accordance with this programme, certain property, plant and equipment were verified during the year. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) disclosed in the financial statements are held in the name of the Company except for -

Description of item or property	Net carrying Value in lacs	Title deeds held in the name of	Whether title deed holder is a promoter, director or relative# of promoter*/ director or employee of promoter/director	Property held since which date	Reason for not being held in the name of the company
Wind mill (installed on lease hold land)	39.99 Lakh	Ratlam Wires Pvt. Ltd.	No	22.10.2024	Lease agreement execution was in process as on year end
Lease hold Land (on Which lease agreement not executed)	3.63 Lakh	Ratlam Wires Pvt. Ltd.	No	22.10.2024	Lease agreement execution was in process as on year end

(d) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not revalued its Property, plant and equipment (including Right-of-use asset) or Intangible assets or both during the year. Therefore, the sub-clause is not applicable to the Company.

(e) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there are no proceedings initiated or pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder. Therefore, the sub-clause is not applicable to the Company.

(ii) (a) The inventory has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable and procedures and coverage as followed by management were appropriate. No discrepancies were noticed on verification between the physical stocks and the book records that were 10% or more in the aggregate for each class of inventory.

(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 been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks, being HDFC bank and ICICI Bank, on the basis of security of current assets. In our opinion, the quarterly returns or statements filed by the Company with such banks are in agreements with the books of account of the Company, except as disclosed in note 41(p) of the financial statements as follows-

					(Rs. In Lakhs)
Name of Bank	Particular of Securities Provided	Quarter	Amount as per Books of Accounts	Amount as reported in Quarterly returns or statements	Difference
HDFC Bank, ICICI Bank	Stock	Q1	2,585.42	2,585.42	0.00
HDFC Bank, ICICI Bank	Book Debts (90 days)	Q1	2,526.66	2,468.83	57.83
HDFC Bank, ICICI Bank	Stock	Q2	1,565.29	1,556.08	9.21
HDFC Bank, ICICI Bank	Book Debts (90 days)	Q2	3,408.74	3,357.85	50.89
HDFC Bank, ICICI Bank	Stock	Q3	3,564.09	3,564.09	0.00
HDFC Bank, ICICI Bank	Book Debts (90 days)	Q3	3,199.63	3,209.01	-9.38
HDFC Bank, ICICI Bank	Stock	Q4	3,348.33	3,332.21	16.12
HDFC Bank, ICICI Bank	Book Debts (90 days)	Q4	2,720.02	2,788.17	-68.14

(iii) 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 neither made investments in, nor provided guarantee and security to Companies, firms, Limited Liability partnership or other parties. The Company has made loans or advances in the nature of loans to companies, in respect of which the requisite information is as below-

(a) Based on the audit procedures carried out by us and as per the information and explanations given to us, the Company has provided loans to companies during the year as follows -

			(Rs. In Lakhs)
Particulars	Loans	Guarantee	Security
Aggregate amount granted/provided during the year ended 31st March 2025
- Subsidiaries	-	-	-
- Others (Inter Corporate)	450.94	-	-
Balance outstanding as at balance sheet date- 31st March 2025
- Subsidiaries	-	-	-
- Others	450.94	-	-

(b) According to the information and explanations given to us and based on the audit procedures conducted by us, in our opinion the terms and conditions of the grant of all loans and guarantee provided are not prejudicial to the companys interest. The loan is granted in the ordinary course of business adopted by the Company since many years which is approved by the object clause of the memorandum of association of the Company.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not granted any loans or advances in the nature of loans for which schedule of repayment of principal and payment of interest has been stipulated. Therefore, sub-clauses (d) and (e) of clause (iii) are not applicable to the Company.

(f) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has granted loans without specifying any terms or period of repayment.

			(Rs. In Lakhs)
Particulars	Related Parties	Other than Related Parties	All Parties
Aggregate amount of loans
- Repayable on demand	-
- Agreement does not specify any terms or period of repayment	449.94	1.00	450.94
Total	449.94	1.00	450.94
Percentage of loans/advances in the nature of loans to the total loans	92.70%	0.30%	100.00%

(iv) According to the information and explanations given to us and on the basis of our examination of records of the Company, the Company has neither made investments nor provided any guarantee or security as specified under Sections 185 and 186 of the Act. In respect of the loans given, in our opinion the provisions of Sections 185 and 186 of the Act have been complied with.

(v) The Company has not accepted any deposits or amounts which are deemed to be deposits from the public. Accordingly, clause 3(v) of the order is not applicable.

(vi) The Central Government has specified maintenance of the cost records under sub-section (1) of section 148 of the Companies Act, 2013 for the products manufactured by it and/or services provided by it. We have broadly reviewed the records maintained by the Company pursuant to such provisions and are of the opinion that the records have been maintained in accordance with the said provision. However, we have not made a detailed examination of the same.

(vii) (a) The Company is generally regular in depositing with appropriate authorities 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 statutory dues applicable to it.

According to the information and explanations provided to us, no undisputed amounts payable in respect of 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 statutory dues were in arrears, at the year end, for a period of more than six months from the date they became payable.

(b) According to information and explanations given to us, there are no dues of GST, PF, ESI, income tax, Sales Tax, service tax, value added tax, custom duty, excise duty and cess or other statutory dues, which have not been deposited on account of any dispute except for:

Name of the Statue	Nature of Amount Due	Period to which the amount relates	Amount (Rs. in lakhs)	Amount paid in dispute	Forum where the dispute is pending
CGST Act, 2017	Disallowance of Input Tax Credit	F.Y. 2018-19 & 2019-20	84.96	7.72	The Commissioner (Appeals), CGST, Indore
CGST Act, 2017	Tax liability on account of "Outward taxable supplies	F.Y. 2020-21	22.31	1.06	The Commissioner (Appeals), CGST, Indore
CGST Act, 2017	Tax liability on account of "Outward taxable supplies	F.Y. 2017-18	66.52	3.32	The Commissioner (Appeals), CGST, Indore
CGST Act, 2017	Tax liability on account of "Outward taxable supplies	F.Y. 2020-21	89.12	8.81	The Commissioner (Appeals), CGST, Indore

(viii) 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 surrendered or disclosed any transactions as income, previously unrecorded as income in the books of account, in the tax assessments under the Income tax Act, 1961 as income during the year.

(ix) (a) 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 defaulted in repayment of loans or other borrowings or in the payment of 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 of the Company, the Company has not been declared a wilful defaulter by any bank or financial institution or other lender.

(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 has not taken any term loans during the year.

(d) According to the information and explanations given to us, and the procedures performed by us, and on overall examination of the financial statements of the Company, we report that no funds have been raised on short term basis by the Company, which have been used for long term purposes. Accordingly, clause 3(ix)(d) of the order is not applicable.

(e) According to the information and explanations given to us and on overall examination of the financial statements of the Company, we report that the Company has no subsidiaries, joint ventures or associate companies. Accordingly, clause 3(ix)(e) of the order is not applicable.

(f) According to the information and explanations given to us and procedures performed by us, we report that the Company has no subsidiaries, joint ventures or associate companies Accordingly, clause 3(ix)(f) of the order is not applicable.

(x) (a) According to the information and explanations given to us and procedures performed by us, the Company has raised money by way of an Initial Public Offer (IPO) amounting to Rs. 5457.02 Lakh on 24.07.2024. The IPO proceeds have been utilized for the purposes stated in the offer document, such as repayment of certain borrowings, funding of working capital requirements, and meeting general corporate purposes except for amount of Rs 145.00 lakhs which is pending for utilisation as at the year end. The Board of directors have, during the year, passed the resolution to change the purpose of expenditure as mentioned in the prospectus from one kind to machinery to other kind of machinery. Issue related expenses have been adjusted against the Securities Premium Account in accordance with applicable provisions of the Companies Act, 2013.

(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 during the year.

(xi) (a) During the course of our examination of the books of accounts of the Company, carried in accordance with the generally accepted auditing practices in India, and according to information and explanations provided to us by the management, we have neither come across any instances of fraud reported by the Company or on the Company by its officers or employees, noticed or reported during the year nor have been informed of any such cases by the management.

(b) According to information and explanations give to us and based on records of the Company examined by us, we report that no report under sub-section 12 of section 143 of the Companies Act, 2013 has been filed by the auditors in form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government.

(c) According to information and explanations given to us and based on the examination of records of the company, the company did not receive any complaint from any whistle blower.

(xii) In our opinion, the Company is not a nidhi company. Therefore, the provisions of clause 3(xii) of the Order are not applicable to the Company and hence not commented upon.

(xiii) According to information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and the details have been disclosed in the Financial Statements, as required by the applicable accounting standards.

(xiv) (a) Based on information and explanations provided to us and our audit procedures, in our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

(b) We have considered the internal audit reports of the Company issued till date for the period under audit.

(xv) According to information and explanations given to us and based on our examination of the records of the Company, the company has not entered into non-cash transactions with directors or persons connected with them. Hence provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.

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

(b) The Company has not conducted any Non-Banking Financial or Housing Finance activities. Accordingly, clause 3(xvi)(b) of the order is not applicable.

(c) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India. Accordingly, clause 3(xvi)(c) of the order is not applicable.

(d) According to information and explanations provided to us during the course of our audit, the group does not have any CIC. Accordingly, clause 3(xvi)(d) of the order is not applicable.

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

(xviii) There has been no resignation of the statutory auditors during the year. Accordingly, clause 3(xviii) of the order is not applicable.

(xix) According to information and explanations given to us and on basis of the financial ratios, ageing and expected dates of realisation 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 audit report that the 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 report 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) There are no unspent amounts towards Corporate Social Responsibility (CSR) on other than ongoing projects requiring a transfer to a Fund specified in Schedule VII to the Companies Act in compliance with second proviso to sub-section (5) of Section 135 of the said Act. Accordingly, reporting under clause 3(xx)(a) of the Order is not applicable for the year.

(b) According to information and explanations given to us and based on records of the Company examined by us, in our opinion, there is no amount remaining unspent under subsection (5) of section 135 of Companies Act, pursuant to any ongoing projects, and hence there is no amount is required to be transferred to special account in accordance with provisions of sub-section (6) of section 135 of the said Act.

(xxi) Since this report is being issued in respect of standalone financiv al statements of the company, hence clause (xxi) of paragraph 3 of the said Order is not applicable.

	For Ashok Kumar Agrawal & Associates
	Chartered Accountants
	Firm Reg. No. 022522C
Place: Indore	CA Ashok Kumar Agrawal
Date: 28th May 2025	(Proprietor)
	Membership No.: 071274
	UDIN: 25071274BMMJZQ8317

Annexure -B to the Independent Auditors Report on the financial statements of Kataria Industries Limited for the year ended 31st March 2025

Report on the Internal Financial Controls over financial reporting with reference to aforesaid financial statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

(Referred to in paragraph 1(g) under ‘Report on Other Legal and Regulatory Requirements section of our report to the members of Kataria Industries Limited)

Opinion

We have audited the internal financial controls over financial reporting of Kataria Industries Limited ("the Company") as of 31 March 2025 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

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 internal financial controls over financial reporting were operating effectively as at 31 March 2025, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. ("the Guidance Note")

Managements and Board of Directors Responsibilities for Internal Financial Controls

The Companys management and Board of Directors of the Company are responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note. 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

Our responsibility is to express an opinion on the Companys internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial

A companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records, 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 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.

	For Ashok Kumar Agrawal & Associates
	Chartered Accountants
	Firm Reg. No. 022522C
	CA Ashok Kumar Agrawal
Place: Indore	(Proprietor)
Date: 28th May 2025	Membership No.: 071274
	UDIN: 25071274BMMJZQ8317