Laxmi Cotspin Ltd Auditor Reports

To the Members of Laxmi Cotspin Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the Standalone financial statements of LAXMI COTSPIN LIMITED (the "Company")
which comprise the Standalone balance sheet as at 31 March 2025, and the Standalone statement of
profit and loss (including other comprehensive income), Standalone statement of changes in equity
and Standalone statement of cash flows for the year then ended, and notes to the Standalone
financial statements, including a summary of 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 Standalone financial statements give the information required by the Companies Act, 2013
("Act") in the manner so required and give a true and fair view in conformity with the Indian
Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally
accepted in India, of the state of affairs of the Company as at 31 March 2025, and its profit and total
comprehensive income (including other comprehensive income), the changes in equity and its cash
flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Standalone financial statements in accordance with the Standards on
Auditing (SAs) specified under Section 143(10) of the Companies Act. Our responsibilities under those
(SAs) are further described in the Auditors Responsibilities for the Audit of the Standalone Financial
Statements section of our report. We are independent of the Company in accordance with the Code
of Ethics issued by the Institute of Chartered Accountants of India together with the ethical
requirements that are relevant to our audit of the Standalone financial statements under the
provisions of the Companies Act and the Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the Code of Ethics. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on
the Standalone financial statements.

Key Audit Matter

Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the Standalone financial statements of the current period. These matters were addressed
in the context of our audit of the Standalone financial statements as a whole and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.

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

Revenue Recognition	How our audit addressed the key audit matter
The Company recognizes revenue from the sale of goods when control is transferred to the customer, which is typically based on delivery terms agreed upon in the sales contracts. Revenue recognition was considered a key audit matter due to the significance of revenue to the financial statements, the high volume of transactions, and the judgment involved	• Assessing the Companys revenue recognition policy for compliance with applicable financial reporting standards.
	• Evaluating the design and implementation of relevant internal .—- controls over revenue recognition.
	Testing a sample of sales transactions
determining the timing of revenue recognition, particularly near the year-end.	before and after year-end to verify that revenue was recognized in the correct period based on shipping documents and delivery terms.
	• Inspecting significant sales contracts to assess the terms related to transfer of control.
	• Performing analytical procedures and trend analysis on monthly revenue figures. • Evaluating the adequacy of the disclosures in the financial statements regarding revenue recognition.

Information Other than the IND AS Standalone Financial Statements and Auditors Report thereon

The Companys Board of Directors is responsible for the preparation of the other information. The
other information comprises the information included in the Management Discussion and Analysis,
Boards Report including Annexures to Boards Report, Corporate Governance Report and
Shareholders Information, but does not include the Standalone financial statements and our
auditors report thereon.

Our opinion on the Standalone financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent
with the Standalone financial statements or our knowledge obtained during the course of the audit
or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact.

We have nothing to report in this regard.

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

The Companys Board of Directors is responsible for the matters stated in section 134(5) of the Act
with respect to the preparation of these Standalone financial statements that give a true and fair
view of the financial position, financial performance including other comprehensive income, changes
in equity and cash flows of the Company in accordance with the Ind AS and other 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 the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and presentation
of the Standalone financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.

In preparing the Standalone financial statements, the Management and Board of Directors are
responsible for assessing the Companys ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting unless
the Board of Directors either intends to liquidatessffi^^Qmpany or to cease operations, or has no
realistic alternative but to do so.

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

Auditors Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalone financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditors report that includes our opinion. Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these Standalone financial statements.

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

• Identify and assess the risk 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 financial 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 systems in place and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of managements use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exits related to events
or conditions that may cast significant doubt on the Companys ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditors report to the related disclosures in the Standalone financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditors report. However, future events or conditions may cause
the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the Standalone Financial Statements,
including the disclosures, and whether the Standalone Financial Statements represent the
underlying transactions and events in a manner that achieves fair presentation.

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

We also provide those charged with governance with a statement that we may 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 identify matter that were
of such significance in the audit of the financial statements for the financial year ended March 31,
2025, that they would be considered key audit matters. Accordingly, such matters have been
escribed in our auditors report. Furthermore, there were no circumstances where disclosure was
eluded by law or regulation, or where adverse consequences were 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, 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, 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 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 from our examination of those books.

(c) As per the information and explanations given to us and as per our records, the Company does
not have any branch office audited under sub-section (8) of Section 143 by a person other than
the Companys auditor. Accordingly, reporting under clause (c) of sub-section (3) of Section 143
of the Companies Act, 2013 is not applicable.

(d) The Standalone balance sheet, the Standalone statement of profit and loss (including other
comprehensive income), the Standalone statement of changes in equity and the Standalone
statement of cash flows dealt with by this Report are in agreement with the relevant books of
account.

(e) In our opinion, the aforesaid Standalone financial statements comply with the
Indian Accounting Standards specified under Section 133 of the Act.

(f) There are no observations or comments on financial transactions or matters which have any
adverse effect on the functioning of the company.

(g) 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.

(h) There is no qualification, reservation or adverse remark relating to maintenance of accounts and
other matters connected therewith no need to include this.

(i) With respect to the 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 B". Our report expresses an unmodified opinion on the adequacy and operating
effectiveness of the Companys internal financial controls over financial reporting.

(j) With respect to the matter 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 has not exceeded the
limits prescribed under Section 197 of the Companies Act, 2013 read with Schedule V.

(k) 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:

The Company has disclosed the impact of pending litigations / contingents and commitments
as at 31^st March 2025 in Note no. 2.2(i) on its financial position in its Standalone financial
statements which would impact its financial position.

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

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

(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 persons or entities,
including foreign entities ("Intermediaries"), with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest

in.

iv.

ii

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 entities, including foreign entities
("Funding Parties"), with the understanding, whether recorded in writing o r otherwise, that
the Company shall, whether, directly or indirectly, lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate
Beneficiaries") or provide any guarantee, security, or the like on behalf of the Ultimate
Beneficiaries; and

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

v. The Company has neither declared nor paid any dividend during the year. Hence, reporting the
compliance with section 123 of the Act is not applicable.

vi. Based on our examination of the books of account and other relevant records of the Company,
and according to the information and explanations given to us, and as mentioned in notes to
account no. 3(p) we report that the Company has used accounting software for maintaining its
books of account which has a feature of recording audit trail (edit log) facility.

Further, in accordance with the requirements of the proviso to Rule 3(1) of the Companies
(Accounts) Rules, 2014, applicable with effect from April 1, 2023, the audit trail feature has
been operated throughout the financial year ended March 31, 2025, for all transactions
recorded in the software, and the audit trail has not been tampered with. The audit trail has
been preserved by the Company as per the statutory requirements for record retention.

ANNEXURE "A" TO INDEPENDENT AUDITORS REPORT ON THE STANDALONE FINANCIAL
STATEMENTS OF LAXMI COTSPIN LIMITED

(Referred to in Paragraph 1 under the heading of "Report on other Legal and Regulatory
Requirements" of our report to the members of Laxmi Cotspin Limited of even date)

Report on the Companies (Auditors Report) Order, 2020, issued in terms of Section 143(11) of
the Companies Act, 2013 ("the Act") of Laxmi Cotspin Limited("the Company"):

On the basis of such checks as we considered appropriate and in terms of the information and
explanations given to us, we report that: -

i. In respect of Companys Property, Plant and Equipment:

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

ii. The Company has maintained proper records showing full particulars, of intangible assets.

b. All the Property, Plant and Equipment have been physically verified by the management
during the year and there is a regular programme of verification, which, in our opinion, is
reasonable having regard to the size of the Company and the 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, all the title deeds of immovable properties (other than
properties where the Company is the lessee and the lease agreements are duly executed in
favour of the lessee) are held in the name of the Company excluding the land situated at Gut
no 394.

Description of Property	Gross carrying value	Held in the name of	Whether promoter, director or their relative	Period Held	Reason for not being held in the name of Company (also indicate if in dispute)
Land situated at Gut no.394	Rs 282 lakhs	Mauli Ginning & Pressing Proprietor Shivratan Shrigopal Mundada	Director	20 Years	The said land was taken in the name of promoter since it was an agriculture land, and NA was pending. Undertaking in favor of the Company regarding the same has been executed.

d.

The Company has not revalued its total land during the year. However, it has carried out a
reallocation of values among individual land parcels based on updated valuation reports.
Although the aggregate revaluation amount remains unchanged, certain individual land
parcels have been revalued resulting in changes exceeding 10% of their respective carrying
values. The Company has disclosed such changes in the notes to the financial statements.
Based on our audit procedures, we are of the opinion that such reallocation was based on a
valuation conducted by a registered valuer and is appropriately accounted for.

e. There are no proceedings initiated or are pending against the Company for holding any benami
property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made
thereunder.

ii. In respect of inventories:

a. As explained to us, inventories have been physically verified by the management at reasonable
intervals during the year. The inventories were verified during the year by the Management
and based on his report there were no material discrepancies noticed on such verification and
discrepancies noticed on physical verification of inventory as compared to the book records
did not exceed 10% or more in the aggregate for any class of inventory.

b. The Company has been sanctioned working capital limit in excess of five crore rupees, in
aggregate from banks or financial institutions on the basis of security of current assets.
Quarterly returns or statements filed by the Company with such banks/financial institutions
are in agreement with the books of the account of the Company.

Particulars	Quarter	As per book (Rs in lakhs)	As per statement (Rs in lakhs)	Difference	Reason of difference
Inventory	June-24	5319.17	5319.17	-
Inventory	September- 24	3630.56	3630.56	-
Inventory	December-24	3948.77	4100.54	(151.77)	Due to purchase return
Inventory	March-25	4558.60	4558.60	-

a. During the year, the Company has provided loans to parties covered in the register maintained
under section 189 of the Companies Act, 2013. The details of such loans are as follows:

Particulars	Amount (Rs in lakhs)	Balance outstanding as at year-end (Rs in lakhs)	Terms and Conditions
Vedamata Multidservices & Trading Pvt Limited	62.50	1053.13	Interest rate @12%
Vitthal Polypack Private Limited	60.00	0	Interest Free

b. In our opinion, and according to the information and explanations given to us, the terms and
conditions of the grant of such loan are not prejudicial to the Companys interest.

c. In respect of the loan granted by the Company, no schedule for repayment of principal has
been stipulated. However, interest has been paid regularly as per the agreed terms.
Accordingly, we are unable to comment on the regularity of principal repayments.

d. In the absence of a stipulated schedule for the repayment of principal and interest, we are
unable to ascertain whether any amounts are overdue for more than 90 days. Consequently,
the reporting on steps taken by the Company for recovery of such amounts does not arise.

According to the information and explanations given to us, clause (e) of paragraph 3(iii) of
the Order is not applicable, as there have been no renewals or extensions of any loan during
the year.

f. The Company has granted loans/advances in the nature of loans without specifying the terms
or period of repayment amounting to ^122.50 lakhs during the year. The entire amount (i.e.,
100% of such loans) was granted to related parties as defined under Section 2(76) of the
Companies Act, 2013.

iv. In our opinion and according to the information and explanations given to us, the Company has
complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of
the loans granted, guarantees provided, investments made, and securities offered during the
year.

• During the year, the Company has granted a loan to a relative of a director. We have verified
that the transaction falls within the permitted exemptions under Section 185, and was carried
out in compliance with the prescribed conditions.

• The Company has also complied with the provisions of Section 186 with respect to the granting
of loans, including the limits, obtaining of requisite approvals, and making necessary
disclosures in the financial statements.

v. To the best of our knowledge and according to the information and explanations given to us,
the Company has not accepted deposits from public within the meaning of the directives issued
by the Reserve Bank of India, provision of Section 73 to 76 of the Act, any other relevant
provision of the Act and the relevant rules framed thereunder and therefore, reporting under
paragraph 3 (v) of the Order is not applicable.

vi. In respect to the products/services of the Company, maintenance of cost records has been
specified by the Central Government under sub section (1) of Section 148 of the Companies Act,
2013. We have broadly reviewed the cost accounting records maintained by the Company
pursuant to the Companies (Cost Records & Audit) Rules, 2014, as amended, and are of the
opinion that, prima facie, the prescribed cost records have been made and maintained by the
Company.

vii. According to information and explanations given to us and on the basis of our examination of
the books of account, and records, in respect of statutory dues:

(a) The Company has generally been regular in depositing undisputed statutory dues including
Income Tax, Goods and Service Tax, Customs Duty, Excise duty, cess and other material
statutory dues as applicable 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.

(b) Details of dues of Income Tax, Sales Tax, Service Tax, Excise Duty and Value Added Tax which
have not been deposited as at March 31,2025 on account of dispute are given below:

Name of the statute	Nature of Dues	Amount(Rs in Lakhs)	Assessment year to which the amount relates	Forum where the dispute is pending
Income Tax Act, 1961.	Income Tax Dues	Rs 22.12	2020-21	CIT(A)
Income Tax Act, 1961.	Income Tax Dues	Rs 67.08	2022-23	CIT(A)
Income Tax Act, 1961.	Tax Deducted at Source (TDS)	Rs 1.13	2025-26	CPC
GST Act,2017	GST Dues	Rs 2.40	2022-23	Central GST
GST Act,2017	GST Dues	Rs 4.33	2018-19	Central GST

viii. To the best of our knowledge and according to the information and explanations given to us,
there are no unrecorded transactions in the books of account which has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43
of 1961).

ix.

(a) To the best of our knowledge and according to the explanations given to us, In our opinion, the
Company has not defaulted in repayment of loans or other borrowings or in payment of interest
to any lender during the year.

(b) As per the information and explanation provided to us, the Company is not declared willful
defaulter by any bank or financial institution or other lender during the year.

(c) As per the information and explanation provided to us, the term loans availed by the Company
during the year were used for the purpose for which the loans were obtained.

(d) To the best of our knowledge and according to the explanations given to us, the Company has
not utilized funds raised on short term basis for long-term purposes during the year.

(e) To the best of our knowledge and according to the explanations given to us, the Company has
not taken any funds from any entity or person on account of or to meet the obligations of its
subsidiaries, associates or joint ventures.

(f) To the best of our knowledge and according to the explanations given to us, the Company has
not raised any loans during the year on pledge on securities held in its subsidiaries, associates
or joint ventures.

x.

(a) To the best of our knowledge and according to the information and explanations given to us,
the Company has not raised monies by way of initial public offer or further public offer
(including debt instruments) and term loans.

(b) According to the information and explanations given to us and based on our examination of
the records of the Company, the Company has not made preferential allotment of shares
during the year and thus requirement of Section 42 and Section 62 of the Companies Act,
2013 and relevant rules were not required to be complied.

xi.

(a) To the best of our knowledge and according to the information and explanations given
to us, no fraud by the Company or no material fraud on the Company by its officers or
employees has been noticed or reported during the year. Accordingly, clauses (a)&(b) of
paragraph 3 (xi) of the Order are not applicable.

To the best of our knowledge and according to the information and explanations given to us,
no whistle - blower complaints received during the year by the Company.

To the best of our knowledge and according to the information and explanations given to us,

the Company is not a Nidhi Company. Hence reporting under the paragraph 3(xii) of the
Order is not applicable.

xiii . To the best of our knowledge and according to the information and explanations given to us,
the Company, all transactions with related party are in compliance of the provisions of
section 177 and Section 188 of the Act. And the details of related party transactions have
been disclosed in the Ind AS financial statements as required by the applicable accounting
standards.

xiv.

(a) The Company has an internal audit system commensurate with the size and nature of its
business;

(b) We have considered the reports of Internal auditors for the period under audit.

xv. To the best of our knowledge and according to the information and explanations given to us,
during the year the Company has not entered into any non-cash transactions with its
Directors or persons connected to its directors and thus provisions of section 192 of the
Companies Act, 2013 are not applicable to the Company. Hence reporting under paragraph
3(xv) of the Order is not applicable.

xvi.

(a) The Company is not required to be registered under section 45 -IA of the Reserve Bank of India
Act 1934.

(b) To the best of our knowledge and according to the information and explanations given to us,
the Company has not conducted any Non-Banking Financial or Housing Finance activities
without a valid Certificate of Registration (COR) from the Reserve Bank of India as per the
Reserve Bank of India Act, 1934;

(c) To the best of our knowledge and according to the information and explanations given to us,
the Company is not a Core Investment Company (CIC) as defined in the regulations made by
the Reserve Bank of India;

(d) To the best of our knowledge and according to the information and explanations given to us,
the Group does not have any CIC as part of the Group;

xvii. As per the information and explanation given by the management, the Company has incurred
cash losses amounting to Rs. 175.91 lakhs in the current year and the company does not
incurred cash losses in previous year.

xviii. There was no resignation of auditor during the financial year, so the said clause is not
applicable to Company.

xix. 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 Ind AS
Standalone financial statements and 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 cause us to believe that any material
uncertainty exists as on the date of this audit report and 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 reporting
is based on the facts up to 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. The provisions of Corporate Social Responsibility (CSR) will not be applicable in the current
financial year, as there was net loss for the financial year 2023-2024

ANNEXURE "B" TO INDEPENDENT AUDITORS REPORT ON THE STANDALONE FINANCIAL
STATEMENTS OF LAXMI COTSPIN LIMITED

(Referred to in Paragraph 2(i) under the heading of "Report on other Legal and Regulatory
Requirements" of our report to the members of LAXMI COTSPIN LIMITED of even date)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 ("the Act")

Opinion

We have audited the internal financial controls with reference to Standalone financial statements of
LAXMI COTSPIN LIMITED ("the Company") as of 31 March 2025 in conjunction with our audit of the
Standalone financial statements of the Company for the year ended on that date.

In our opinion, the Company has, in all material respects, adequate internal financial controls with
reference to financial statements and such internal financial controls were operating effectively as
at 31 March 2025, based on the internal financial controls with reference to financial statements
criteria established by the Company considering the essential components of internal control stated
in the Guidance Note 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 Cont rols

The Management of the Company is 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 on Audit of
Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants
of India ("ICAI"). These responsibilities include the design, implementation and maintenance of
adequate internal financial controls that were operating effectively for ensuring the orderly and
efficient conduct of its business, including adherence to the respective 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 of the Company based on our audit. We conducted our audit in accordance with the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note")
issued by the ICAI 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
SpO^for our audit opinion on the Companys internal financial controls system over financial reporting
reference to financial statements.

Meaning of Internal Financial Controls with Reference to Standalone Financial Statements

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

a. Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the Company;

b. 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 authorizations
of the management and directors of the Company; and

c. Provide reasonable assurance regarding prevention or timely detection of unauthorized
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 Standalone 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.