KGN Industries Ltd Auditor Reports

To the Members of

KGN INDUSTRIES LIMITED

Report on theInd AS Financial Statements

We have audited the accompanying Ind AS financial statements of KGN INDUSTRIES LIMITED ("the Company"),
which comprise the Balance Sheet as at March 31, 2025, the Statement of Profit and Loss, the Cash Flow Statement and
the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other
explanatory information.

Managements Responsibility for the IND AS Financial Statements

The Companys Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013
("the Act") with respect to the preparation of these Ind AS financial statements that give a true and fair view of the
financial position, financial performance including, seash flows and changes, in. equity of the Company in accordance with
accounting principles generally accepted in India,.including the Indian Accounting-Standards (IndiiAS) specified under
section 133 of the Apt., read with Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies (Indian Accounting
Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of the assets of the .Company and for preventing and detecting
frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial
control that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to
the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.

Auditors Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements based on our audit. We have taken into
account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit of the Ind AS
financial statements in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of
India, as specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whether the IND AS financial statements are free
from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the IND AS
financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the Ind AS financial statements, whether due to fraud or error. In making thiyseTifKass.qssments,
the auditor considers interna! financial control relevant to the Companys preparation of the Ind^^fih^cml^sfafe^ents

that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates
made by the Companys Directors, as well as evaluating the overall presentation of the Ind AS financial statements. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on
the Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the Ind AS financial
statements give the information required by the Act in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2025, its
loss including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors report) Order, 2016 ("the Order") issued by the Central Government of India
in terms of sub-section (11) of section 143 of the Act, we give in the Annexure 1 a statement on the matters specified in
paragraphs 3 and 4 of the Order.

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 purpose 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 from
our examination of those books;

(c) The Balance Sheet, Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash
Flow Statement and S tatement of Changes in Equity dealt with by this Report are in agreement with the books of account;

(d) In our opinion, the aforesaid Ind AS financial statements comply with the Accounting Standards specified under
section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, Companies (Indian Accounting
Standards) Rules, 2015, as amended;

(e) On the basis of written representations received from the directors as on March 31, 2025, and 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) 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 Ind AS financial statements
Refer Note 4, 27 and 43(ii) to the Ind AS financial statements;

ii. The Company has made provision, as required under the applicable law or accounting standards, for material
foreseeable losses, if any, on long-term contracts including derivative contracts;

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

Annexure 1 referred to in paragraph 1 of the section on "Report on other legal and regulatory
requirements" of our report of even date

TO THE MEMBERS OF
KGN INDUSTRIES LIMITED

1. (a) The Company has maintained proper records showing full particulars, including quantitative details and

situation of fixed assets.

(b) The Fixed Assets have been physically verified by the management in a phased manner, designed to cover
all the items over a period of three years, which in our opinion, is reasonable having regard to the size of
the company and nature of its business. Pursuant to the program, a portion of the fixed asset has been
physically verified by the management during the year and no material discrepancies between the books
records and the physical fixed assets have been noticed.

(c) The title deeds of immovable properties are held in the name of the company.

(b) The discrepancies noticed on physical verification of the inventory as compared to books records which has
been properly dealt with in the books of account were not material.

3. (a) The Company has granted unsecured loan to its Subsidiary Companies and parties in the register maintained

under Section 189 of the Companies Act, 2013. The Maximum amount granted during the year and year
end balances of loan to such subsidiaries were as per details given below. The terms and conditions of such
loans are not prima facie prejudicial to the interest of the Company.

Sr. Name of the Party No.	Relation with the Company	Maximum Outstanding (in Rs.)	Closing Balance As on 31/03/2025 (in Rs.)
1. KGN Projects Limited	Subsidiary Company	16,11,135/-	16,11,135/-
2. KGN Enterprises Limited	Associates	13,76,68,244/-	13,76,68,244/- .

(b) The Company has not taken loans, secured or unsecured from the companies or other parties covered in
the register maintained u/s 189 of the Companies Act, 2013

4. In our opinion and according to the information and explanations given to us, the company has complied with the
provisions of section 185 and 186 of the Companies Act, 2013 In respect of loans, investments, guarantees, and
security.

5. The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank
of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies
(Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.

6. As informed to us, the maintenance of Cost Records has not been specified by the Central Government under
sub-section (1) of Section 148 of the Act, in respect of the activities carried on by the company.

7. (a) According to information and explanations given to us and on the basis of our examination of the books of

account, and records, the Company has been generally regular in depositing undisputed statutory dues
including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs,
Duty of Excise, Value added Tax, Cess and any other statutory dues with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of
the above were in arrears as at March 31,2025 for a period of more than six months from the date on when
they become payable.

2. (a) The Inventory has been physically verified by the management during the year. In our opinion, the frequency

of verification is reasonable.

(b) According to the information and explanation given to us, there are no dues of income tax, sales tax, service
tax, duty of customs, duty of excise, value added tax outstanding on account of any dispute.

8. In our opinion and according to the information and explanations given to us, the Company has not defaulted in
the repayment of dues to banks. The Company has not taken any loan either from financial institutions or from
the government and has not issued any debentures.

9. Based upon the audit procedures performed and the information and explanations given by the management, the
company has not raised moneys by way of initial public offer or further public offer including debt instruments and
term Loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company and hence
not commented upon.

10. Based upon the audit procedures performed and the information and explanations given by the management, we
report that no fraud by the Company or on the company by its officers or employees has been noticed or reported
during the year.

11. Based upon the audit procedures performed and the information and explanations given by the management, the
managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the
provisions of section 197 read with Schedule V to the Companies Act;

12. In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the Order are
not applicable to the Company.

13. In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies
Act, 2013 and the details have been disclosed in the IND AS Financial Statements as required by the applicable
accounting standards.

14. In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies
Act, 2013 and the details have been disclosed in the IND AS Financial Statements as required by the applicable
accounting standards.

15. Based upon the audit procedures performed and the information and explanations given by the management, the
company has not made any preferential allotment or private placement of shares or fully or partly convertible
debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable
to the Company and hence not commented upon.

16. In.our opinion, the company is not required to be registered under section 45 lAof the Reserve Bank of India Act,
1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence
not commented upon.

For Kamlesh Bhojani & Associates

Chartered Acountant

 

Kamlesh Bhojani

Proprietor

M. No. 119808

FRN: 127505W

UDIN: 25119808BMJQUN2284

 

Place : Ahmedabad

Date : 30.07.2025