Medicamen Organics Ltd Auditor Reports

To,

The Members of

Medicamen Organics Limited New Delhi

Dear Sir,

Report on the Audit of the Standalone Financial Statements

We have audited the accompanying standalone financial statements of MEDICAMEN ORGANICS LIMITED ("the Company"), which comprise the Balance Sheet as at 31/03/2025, the Statement of Profit and Loss and Cash Flow Statement for the year accounting policies and other explanatory ended at 31/03/2025 anda summaryofthe significant 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 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 affairsof the Company as at 31/03/2025 and its Profit 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 Act. Our responsibilities under those Standards are further described in the Auditors Responsibility 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 the Rules made thereunder, 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 obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone Financial Statements.

Managements Responsibility for the Financial Statements

The Companys Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the Company in accordance with the accounting principles generally accepted in India, including the Accounting

Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the tatements 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 from material misstatement, whether due to fraud or error.

Auditors Responsibility

Our responsibility is to express an opinion on these 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 in accordance with the Standards on Auditing 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 financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit d evidence about the amounts and the disclosures in the financial statements. 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. In making those risk assessments, the auditor considers internal financial control relevant to the Companys preparation of the financial statements 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 the accounting policies used and the reasonableness of the accounting estimates made by the Companys Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opiniononthefinancial

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 Act, we give in the Annexure A statement on the matters specified in paragraph 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 purposes of our audit subject to:

b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

c. The Balance Sheet, the Statement of Profitand Loss and Cash Flow Statement dealt with by this Report are in agreement with the 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 the written representations received from the directors as on 31/03/2025 taken on record by the Board of Directors, none disqualifie as ofthedirectors 31/03/2025 from being appointed as a director in terms of Section 164 (2) of the Act.

f. 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".

g. 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 explanations given to us:

i. The Company has disclosed the detail of outstanding litigations as on 31st March 2025 under note 29 (8) Contingent liabilities with possible financial impact.

ii. The Company did not have any long-term contracts including derivative contracts as on 31st March 2025.

iii. As on 31st March 2025 there were no amount which were required to be transferred by the company to the Investor Education and Protection Fund in accordance with the relevant provisions.

3. The Company has maintained audit trail in its books of accounts since, as per the proviso to rule 3(1) of companies (Accounts) Rules, 2014 is applicable for company w.e.f April,2023.

"Annexure B" to the Independent Auditors Report of even date 29th May 2025 on the Standalone Financial Statements of MEDICAMEN ORGANICS LIMITED.

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

We have audited the internal financial controls over financial reporting of MEDICAMEN ORGANICS LIMITED ("The Company") as of March 31, 2025 in conjunction eness. Our with audit our audit of the standalone financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls:

The Companys management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company suffici 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. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct 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 on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. 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 control system over financial reporting and oftheir internal operating financial controls over financial reporting, assessing the risk that a material weakness exists, and operating effectiveness of internal control based on the assessed risk. The procedures selected depend upon on the auditors judgment, including the assessment of the risks of material misstatement financialstatements, of the whether due to fraud or error.

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

Meaning of Internal Financial Controls over Financial Reporting of its A companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial and the preparation of financial 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 that, in reasonable detail, accurately and fairly reflect the of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation statements financial of in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets that could have a material financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, 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 March 31, 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 issues by the Institute of Chartered Accountants of India.

ANNEXURE A

Reports under The Companies (Auditors Report) Order, 2020 (CARO 2020) for the year ended on 31st March 2025

To,

The Members of

M/s Medicamen Organics Limited New Delhi

1. In Respect of Property, Plant & Equipment

a. The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. b. Fixed assets have been physically verifiedby the management at reasonable intervals; No material discrepancies were noticed on such verification. c. The titles deeds of immovable property are in the name of the company. d. The revaluation of Property, plant and equipment is not done by the company. e. There are No proceedings initiated or pending against the company for holding Benami Property under the prohibition of Benami Property Act, 1988 and rules made there under. capital has been conducted at reasonable intervals by the 2. Physical verification management, however, no stock verification report is available.

Loans availed for working capital in excess of 5 Crores from financial institutions/banks, current assets are held as primary security and quarterly statements of stock and debtors are submitted to the financial institutions/banks by the company.

3. According to the information and explanation given to us, during the financial year the company has made investment in two subsidiaries as mentioned below: -

a. Investment in Subsidiary

Grande Etoile Pharmaceuticals Limited (Audited) Depot Yego Pharmacy Ltd (Unaudited) b. Given to other parties N/A

4. Compliance under section 185 and 186 of The Companies Act, 2013 relating to Loans advances investment and security Clause not applicable

5. Compliance under section 73 to 76 of The Companies Act, 2013 and Rules framed thereunder while accepting Deposits

The company has not accepted any Deposit. Therefore, reporting under this clause is not applicable

6. To the best of our knowledge and as explained, the Central Government has not prescribed maintenance of cost records under sub-section (1) of section 148 of the Companies Act, 2013 for the products of the company.

7. Deposit of Statutory Dues

a. According to the records of the company produced before us and as per the information and explanation given to us, the company is regular in depositing with the appropriate authorities statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Custom Duty, GST, and other statutory dues. b. According to the records of the company, there are no dues of Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income-Tax, Custom Duty, GST and Other Statutory Dues which have not been deposited on account of any dispute, except for the following: (Rs. in lakhs)

8. As per the explanations and information given to us there were no transactions relating to previously unrecorded income that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).

9. The company has not defaulted financialinstitution, or a bank. Therefore, reporting under repaymentofduesto this clause is not applicable

10. Utilization of Money Raised by Public Offers and Term Loan For which they Raised and Private Placement a. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has raised 10.54 Crore by way of initial public offer ("IPO") (issued 31,00,000 equity shares of 10 each at a premium of 24 each ) and got listed on Emerge Platform of National Stock Exchange of India Limited on June 28th, 2024. The company has utilized the amount of IPO for the purpose it was raised by the company b. According to the information and explanations given to us the Company has come up with the preferential issue of 4,65,910 share warrants convertible into equivalent number of fully paid-up equity shares of face value of 10/- (Rupee Ten Only) each ("Equity Shares") at the option of Allottees, in one or more tranches, within 18 (eighteen) months from the date of allotment at issue price of 64.39/-. The company has utilized the amount of preferential issue for the purpose it was raised by the company

11. Based on our audit procedures and the information and explanation made available to us, there is no fraud noticed or reported during the year.

The auditor has not filed any report under section 143(12) of the Companies Act 2013 in form ADT-4.

The auditor has not received any whistleblower complaints. Therefore, reporting under this clause is not applicable.

12. The company is not a Nidhi Company. Therefore, reporting under this clause is not applicable.

13. All the transaction with the related parties are in the compliance with section 177 and 188 of the Companies Act,

2013 where applicable and the details have been disclosed in the standalone financialstatement as required by the applicable Accounting Standards 18.

14. (a) The company has an internal audit system commensurate the size and nature of its business.

(b) The reports of the internal auditor for the period under audit were considered wherever necessary.

15. According to the information and explanations given to us, in our opinion during the year the company has not entered any non-cash transactions with its directors or persons connected with its directors and hence provisions of section 192 of the Companies Act, 2013 and reporting under this clause are not applicable to the company.

16. In our opinion the Company is not required to be registered under Section 45-IA of Reserve Bank of India Act, 1934. Therefore, reporting under clause 3(xvi) (a), (b) and (c) of the Order is not applicable.

17. The Company has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year and hence clause (xvii) is not applicable.

18. There has been no resignation of the statutory auditors of the company during the year. Therefore, reporting under clause (xviii) is not applicable

19. On the basis of the financialratios, ageing and expected dates of realization of financial assets and payment of liabilities, other information accompanying the financial statements and our knowledge of the Board of financial

Directors and Management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report indicating that Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.

20. The company has not earned net profit of morethan 5 crores during the three immediately preceding financial years and hence, it is not required to spend any money under sub-section (5) of section 135 of the Act. Accordingly, reporting under clause (xx) of the order is not applicable to the company for the year.

under clause 21. Instandalonefinancial (xxi) of the order is not applicable.

CIN: L74899DL1995PLC066416