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Meera Industries Ltd Auditor Reports

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Meera Industries Ltd Share Price Auditors Report

TO THE MEMBERS OF MEERA INDUSTRIES LIMITED

Report on the Standalone Ind AS Financial Statements

Opinion

We have audited the accompanying Standalone Ind AS Financial Statements of MEERA INDUSTRIES LIMITED, (the "Company"), which comprise the Balance Sheet as at March 31.2023. 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 for the year ended on that date, and the notes to the standalone Ind AS financial statements, including a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "the standalone financial statements**)

In our opinion and to the best of our information and according to the explanations given to us. the aforesaid standalone Ind AS 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 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 March 31. 2023 and its loss, total comprehensive income, change in equity and its cash flowsforthe yearendedonthatdate

Basisfor Opinion

We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the companies Act. 2013. Our responsibilities under those standards are further described in the Auditors Responsibilities for the Audit of the standalone Ind AS 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 standalone Ind AS financial statements under the provisions of the Companies Act. 2013 and the Rules 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 we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the standalone Ind AS financial statements.

KeyAuditMatters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone Ind AS financial statements of the current period. These matters were addressed in the context of our audit of the standalone Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the ‘Auditors Responsibilities for the Audit of the Standalone Ind AS Financial Statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the standalone Ind AS financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying standalone Ind AS financialstatements.

No.

Key Audit Matter

How the matter was addressed in our audit

01.

Evaluation of uncertainTax positions The company has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome of the said dispute. Refer Note No. 33 to the standalone financial statements

Obtained details of completed Vat Tax assessment and demand as on March 31.2023 from management

We involved our internal experts to challenge the managements underlying assumptions in estimating the tax provision and the possible outcome of the dispute Our internal experts also considered legal precedence and other rulings in evaluating managements position on this uncertain tax position. Additionally, we considered the effect of new information in respect of uncertain tax position as at 01.04.2022 to evaluate whether any change was required to managements position on these uncertainties

02.

The Company determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. The Company considered current and anticipated future economic conditions on the basis of the related credit information for its customers to estimate the probability of default in future. We identified Expected credit losses as a key audit matter because of the significant judgement involved in calculating the expected credit losses. This required a high degree of auditor judgment and an increased extent of effort when performing audit procedures to evaluate the reasonableness of managements estimate of the expected credit losses.

Our audit procedures related to the allowance for credit losses for trade receivables included the following, among others:

a) We tested the effectiveness of controls over the

(1) development of Ihe methodology for the allowance for credit losses, including consideration of the current and estimated future economic conditions.

(2) completeness and accuracy of information used in the estimation of probability of default, and

(3) computation of the allowance for credit losses.

b) For a sample of customers we tested the input data such as credit related information used in estimating the probability of default by comparing them to external and internal sources of information

c) We evaluated the incorporation of the applicable assumptions inlo the eslimate of expected credit losses and tested the mathematical accuracy and computation of the allowances by using Ihe same inpul data used by the Company

d) We evaluated the qualitative adjustment to the historical loss rates, including assessing the basis for the adjustments and the reasonableness of the significant assumptions.

Otherinformation

The companys management and Board of Directors are responsible for the preparation of the other information The other information comprises the information included in the companys annual report, management discussion and analysis. Boards report including Annexures to Boards report but does not include the standalone Ind AS Financial Statements and our auditor s report thereon.

Our opinion on the Standalone Ind AS Financial

do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone Ind AS 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 Ind AS Financial Statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated / inconsistent

If. based on the work we have performed, we conclude that there is material misstatement of this other Information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those charged with Governance for the Standalone Ind AS Financial Statements

The Companys management and Board of Directors are responsible for the matters stated in section 134(5) of the Companies Act. 2013 ("the Act) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including The Indian Accounting Standards specified under Section 133 of the Act read with the Companies (IndianAccounting Standards) Rules.2015.asamended. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate implementation and maintenance of 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 Ihe accounting records, relevant to the preparation and presentation of the standalone Ind AS 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 ind AS financial statements, 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 management either intends to liquidate the Company or lo cease operations, or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the companys financial reporting process

Auditors Responsibility for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone Ind AS 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 Ind AS financialstatements

As part of an audit in accordance with SAs. we exercise professional judgment and maintain professionalskepticismthroughoutthe audit. We also:

• Identify and assess the risks of material misstatement of the standalone Ind AS 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 internalconlrol.

• Obtain an understanding of internal financial controls relevant lo 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 with reference to standalone Ind AS financial statements 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 in the standalone Ind AS financial statements made by management and the Boardof Directors

• Conclude on the appropriateness of management and Board of Directors use of the going concern basis of accounting 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 standalone Ind AS 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 Irid AS financial statements, including the disclosures, and whether the standalone Ind AS financial statements represent the underlying transactions and events in a mannerthat achievesfairpresentation.

Materiality is the magnitude of misstatements in the standalone Ind AS financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone Ind AS financialstatements.

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

We also provide those charged 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 standalone Ind AS financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors report unless taw or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

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 Ihe Companies Act. 2013 we give in the "Annexure-A". a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.

2 (A) 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 ouraudit:

b. in ouropinion. proper books of account as required by law have been kept bytheCompanysofarasappears from our examination of those books:

c The Balance Sheet, the Statement of Profit and Loss including the statement of other comprehensive income, the Cash Flow Statement and the statement of changes in equity dealt with by this Report are in agreement with the relevant books of account;

d. In our opinion, the aforesaid Standalone Ind AS Financial Statements comply with the IND AS specified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules.2015.asamended;

e On the basis of written representations received from the directors as on 31st March. 2023. taken on record by the Board of Directors, none of the directors are disqualified as on 31st March. 2023, from being appointed as a director in terms of Section 164(2) of the Act; and

f. With respect to the adequacy of the internal financial controls over financial reporting of these standalone Ind AS financialstatements of the Company and the operating effectiveness of such controls, refer lo 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 financialreporting.

(B) With respect to the other matters to be included in the Auditors Report in accordance with the requirementsofsection 197(16) oftheAct asamended:

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 current year is in accordance with the provisions of section 197 ofthe Act read with Schedule V of Ihe Act.

The remuneration paid to any director is not in excess of the limits laid down under section 197 read with ScheduleVoftheAct.

(C) 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. 2016. as amended, in our opinion and to the best of our information and according to the explanations given to us:

1. The Company has disclosed the impact of pending litigations as at 31ST March. 2023 on its financial position in its standalone Ind AS financial statements - Refer Note 33 to the financial statements.

2. The Company did not have any long-term contracts including derivatives contracts for which there v/ere any materialforeseeable losses.

3. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

4.

i. The Management has represented that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) 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 person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest 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

ii. The management has represented that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entities ("Funding Parties) with the understanding, whether recorded in writing or 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 Beneficiariesiand

iii. Based on such audit procedures performed 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 (i) and (ii) of Rule 11(e). as provided under (a) and (b) above, contain any material misstatement.

5. During the year, the company has not declared or paid any dividend in contravention of the provisions of Section 123 of the Companies Act. 2013,

6. Proviso to Rule 3(1) of the Companies (Accounts) Rules 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1. 2023. and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules. 2014 is not applicable for the financial year ended March31.2023.

Place: SURAT

for K A SANGHAVI AND CO LLP

Date: May 30.2023

Chartered Accountants
FRN. 0120846W/W100289

AMISH ASHVINBHAI SANGHAVI PARTNER

M. NO. 101413 ICAIUD1N 2310U13BGQWUC7388

1001.1002.1003. RAJHANS BONISTA. RAM CHOWK. GHOD DOD ROAD. SURAT-395007 GUJARAT

Annexure A1 to the Independent Auditors Report (Referred to in paragraph 1 under the heading Report on other legal and regulatory requirements section of our report to the Members of Merra Industries Limited of even date)

In terms of the information and explanations sought by us and given by the company and the books of account and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that

I In respect of the Companys property, plant and equipment, right-of-use assets and intangible assets:

a. (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property. Plant and Equipment and relevant detallsof right-of-use assets.

(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 and right-of-use assets by which all Property Plant and Equipment are physically verified by the management in the phased manner over the period of three years In accordance with this programme, certain Property. Plant and Equipment and right-of-used assets were verified during the year and no material discrepancies were noticed on such verification In our opinion the periodicity of such physical verification is reasonable having regard to the size of the Company and the nature of its assets

c. the title deeds of all the immovable properties in the nature of freehold land & buildings included in property, plant and equipment disclosed in note 3 to the standalone financial statements are held in the name of the Company

d. The company has not revalued any of ils Property. Plant and Equipment including Right-of-Use Assets or intangible assets during the year ended on March 31. 2023

e. There are no proceedings initiated during the year orare pending against the company as at march 31.2023 for holding any benami property under the Benami Transactions (Prohibition) Act. 1988 (45 of 1988) (as amended in 2016) and rules made thereunder

II. In respect of the Companys inventory:

a. The inventory includes, raw materials for manufacturing of textile machinery and yarn The management has conducted physical verification of inventory except goods-in-lransit at reasonable intervals during the year and the coverage and procedures of physical verification of inventory followed by the management are appropriate in relation

tothe size of the Company and the nature of its business No discrepancies of 10% or more were noticed in the aggregate foreach class of inventory during theyear

b. Thecompany has not been sanctioned any working capital limit in excess of rupee 5 core, in aggregate, at any points of time during the year, from any bank or financial institution on the basis of security of current asset hence quarterly returns or filing of statements are not applicable to company. Accordingly, the requirement to report on clause 3(ii){b) of the Order is not applicable to the Company

III During the year the Company has not made any investment in. provided any guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured, to companies, firms. LLPs or other parties and hence provisions of clauses 3(iii) (a), (b). (c). (d). (e) and (0 of the Order are not applicable lo the Company and hence not commented upon.

IV. There are no loans, investments, guarantees and security in respect of which provisions of section 185 and 186 of the Companies Act. 2013 is applicable and accordingly, the requirement to report on clause 3(iv) of the Order with respect to section 185 and 186 of the Companies Act. 2013 is not applicable to the Company.

V The company has neither accepted any deposits from the public nor accepted any amounts which are deemed to be deposits within the meaning of sections 73 to 76 of the companies act and the rules made thereunder to the extent applicable Accordingly, the requirement to report on clause 3(v) of the Order is not applicable to the Company.

VI We have broadly reviewed the books of account maintained by the Company pursuant lo the rules made by the Central Government for the maintenance of cost records under section 168(1) of the Companies Act. 2013 and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not. however, made a detailed examination of thesame

VII. In respect ofstalutory dues: a The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees state insurance. Income-tax. TD5. TC5. GST. customs duty, cess,

employees professional tax and other material statutory dues applicable to it. However, there are slight delays in depositing the dues in respect of TDS. TCS. GST. Provident funds. ESIC and employees professional lax contributions

Nature of Statute

Nature of Dues

Amount unpaid Period to which the

Amount relates (Assessment Year)

Forum where Dispute is pending

Gujarat Value Added Tax Act. 2003

Demand raised und er the assessment regarding Gujarat Value Added Tax and Input credit along with Interest and Penalty.

Rs 12.52 Lakhs (13.02 Lakhs Less 0.50 La k hs paid in F.Y. 2019 20) 2006 -2007 Hon. Tribunal. Co mmercial Tax. Gujarat State. Ah m edabad.

during theyear.

According to the information and explanations given to us. no undisputed amounts payable in respect of provident fund, employees state insurance, income- tax. customs duty. GST. cess, professional tax and other material statutory dues were in arrears as at 31st March. 2023 for a period of more than six months from the date they became payable.

b Details of statutory dues referred to in sub-clause

(a) above which have not been deposited as on March 31. 2023 on account of disputes are given below

VIII. The company has no! surrendered or disclosed any transaction, previously unrecorded in the books of account, in the tax assessments under the Income tax act 1961 (63 of 1961) as income during the year. Accordingly, the requirement to report on clause 3(viii) oftheOderisnotapplicabletothe Company.

IX.

a Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that the Company has no outstanding of dues to banks and Financial Institution. Therefore clause 3(ix){a). 3(ix)(c) and 3(ix)(d) is not applicable to company. The Company had no Debentures issued or outstanding during the year b. The company has not been declared wilful defaulter by any bank or financial institution or

government or any other lender

c. 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

d. The company has not raised loans during the year on the pledge of securities held in its subsidiaries, associates or joint ventures

X. During the year, the Company has not made any IPO or FPO nor made any preferential allotment or private placement of shares or convertible debentures to raise any funds. Accordingly the requirements to report on clause 3(x)(a) and3(x)(b) of the Order are not applicable to the Company.

XI.

a. No fraud by the company or no material fraud on the company by its officers or employees has been noticed or reported during the course of our audit b No report under sub-section (12) of section 163 of the Companies Act has been filed by the auditors in Form ADT-6 as prescribed under rule 13 of Companies (Audil and Auditors) Rules. 2016 with the Central Government:

c. There are no whistle-blowers complainls received by the company during the year.

XII. The company is not a Nidhi company. Accordingly, the provisions of clause 3(xii) of the Order are not

Particular

March 31, 2023

Net loss after taxes (LAT) as shown in the statement of profit and loss

184.47

Add: depreciation of PPE. amortization of intangible assets, impairment loss, deferred tax etc.

108.67

Less: reversal of impairment loss, deferred tax, write backs credited to PSL

0.31

Add/Less: All quantifiable qualifications in the audit report

-

Cash Loss

76.11

applicable to the Company and hence not commented upon.

XIII. Transactions with the related parties are in compliance with Section 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the notes to the standalone financial statements as required by the applicable accounting standards.

XIV.

a The Company has an adequate internal audit system commensurate with the size and nature of its business.

b We have considered, the internal audit reports for the year under audit, issued to the Company during the year and till date, in determining the nature, timing and extent of our audit procedures.

XV. The Company has not entered into non-cash transactions with directors or persons connected with its directors and hence provisions of section 192 of the Companies Act. 2013 are not applicable to the company. Hence requirement to report on clause 3(xv) of the Orderare notapplicableto the company

XVI.

a The provisions of section 45-IA of the Reserve Bank of India Act. 1934 (2 of1934) are not applicable to the company Accordingly the requirement to report on clause (xvi)(a) of the order is not applicable to the company.

b. The Company has not conducted 3ny non-Banking Financial or Housing Finance activities without obtaining a valid Cerificate of Registration (CoR) from the Reserve Bank of India as per the Reserve Bank of India Act. 1934.

c. The company is not a Core Investment Company as defined in the regulations made by Reserve Bank of India. Accordingly, the requirement lo reporl on clause 3(xvi)(d) of the order is not applicable to the company:

d. There is no core investment company as a part of group hence requirement to report on clause 3(xvi)(d) of the Order is not applicable to the company

XVII. The company has incurred cash losses during the financial year under audit but not incurred in the immediately preceding financial year. Details ol the sameisasunder:

XVIII. During the year there was no resignation of statutory auditor and hence the provisions of this clause isnotapplicable.

XIX On the basis of the financial ratios disclosed in note 42 (i). 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 date of the audit report that Company is not capable ol 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 slate that this is not an assurance as to the future viability of the Company We further slate that our reporting is based on the fads 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. During Ihe year, the provisions of Sec. 135 in relation to the CSR activities are not applicable to the company and hence requirement to report on clause XX(a) and (b) of the Order are not applicable to the Company.

XXI. The requirement of clause 3(xxi) is not applicable in respect of Standalone Financial Statements

Place: SURAT

for K A SANGHAVI AND CO LLP

Date: May 30.2023

Chartered Accountants
FRN: 0120846W/W100289

AMISH ASHVINBHAI SANGHAVI PARTNER

M. NO. 101413 ICAI UDiN 23101413BGQWUC7388

1001.1002.1003. RAJHANS BONISTA. RAM CHOWK. GHOD DOD ROAD. SURAT-395007 GUJARAT

ANNEXURE - BTO THE INDEPENDENT AUDITORS REPORT

(Referred to in paragraph 1(f) under Report on Other Legal and Regulatory

Requirements section of our report to the Members of

Meera Industries Limited of even date)

Report on the Internal Financial Controls with reference to the Standalone Financials Statements 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 MEERA INDUSTRIES LIMITED ("The Company) as of March 31.2023 in conjunction with our audit of the Standalone Financial Statements of the Company forthe year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal financial controls with refrence to standalone financial statements based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control slated in the Guidance Nate 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 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. 2Q13.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys inlernal financial controls with reference to standalone financial statements 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 ol 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 controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of inlernal 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 providea basis for our audit opinion on the Companys internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A companys inlernal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability offinanciat reporting and the preparation of Financial Statementsfor 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 that, 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 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 materiateffect on the FinancialSlatements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

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 nol 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 31 March 2023. 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. However, we are of the opinion that the company can make the Internal Controls on Financial Reporting more adequate and more effective considering the inherent risk and nature and size of the business activities carried out by the company

Place: SURAT

for K A SANGHAVI AND CO LLP

Date: May30.2023

Chartered Accountants
FRN: 0120846W/W100289

AMISH ASHVINBHAI SANGHAVI PARTNER

M. NO. 101413 ICAI UDiN : 23101413BGQWUC7388

1001.1002.1003. RAJHANS BONISTA. RAM CHOWK, GHOO DOD ROAD. SURAT-395007 GUJARAT

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  • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

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RISK DISCLOSURE ON DERIVATIVES
  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
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