Nagarjuna Fertilizers & Chemicals Ltd Auditor Reports

To the Members of

M/s Nagarjuna Fertilizers and Chemicals Limited Report on the Audit of Standalone Ind AS Financial Statements Opinion

We have audited the accompanying Ind AS Standalone Financial Statements of M/s NAGARJUNA FERTILIZERS AND CHEMICALS LIMITED ("the company"), which comprise the Balance Sheet as at 31st March, 2025, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of changes in equity and the Statement of Cash Flows for the year then ended on that date and notes to 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 ("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 31,2025, its Profit including total comprehensive income, its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion:

We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the 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 (ICAI) together with the ethical requirements that are relevant to our audit of the Standalone financial statements under the provisions of the Act and the Rules made there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of matter

a) Relating to Going Concern:

i Consequent to the settlement of Debt vide receipt of sale proceeds from Core and Non-Core assets by ACRE, there are no other assets including property plant and equipment left with the Company for operations. "No Dues and Security release Certificate" from ACRE was received on 11th July 2024, thereby affecting the Going Concern of the Company and accordingly drawn the Financial statements for the year ended on March 31,2025." - Refer Note No. 29 to the Standalone Financials.

ii Without considering the energy and other claims from the Government, the current liabilities exceed the current assets by Rs. 86,095.55 Lakhs.

b) There are claims against the company, which are not acknowledged as debts and are disputed in various forums, courts, appeals, including arbitration awards amounting to Rs 81,596.07 lakhs. - Refer Note No. 32 to the Standalone Financials.

GAIL has recovered interest in the past and also raising claims for interest on the amounts due which is being disputed by the company. The company is not accounting for further interest from 1st July 2024 onwards.

c) Given the financial situation, NFCL has assigned its rights in favor of AMPL to represent it in all legal forums/proceed- ings to pursue claims from GAIL including Arbitration claim in its name as an assignee along with agency coupled with interest under the provisions of Indian Contract Act, 1872. Should GAIL satisfy the award in the future, NFCL shall use the award as it deems fit after clearing its liabilities. - Refer Note No. 32.4 to the Standalone Financials.

d) De-escalation of Urea subsidy and De-escalation of Gas Costs used as Raw material and generation of Power for FY 2022-23.

The Subsidy income is recognised based on the notified Gas Pool prices for the time being in force and upon final notification of the prices the escalation / de-escalations are accounted for in the year in which these notifications are issued. During the 3rd quarter, the final Gas Pool price for the year 2022-23 has been notified by the DOF (Annual cumulative Gas Pool price has come down) in line with which GAIL has issued Credit note and NFCL has recognized reduction in Gas Costs by Rs. 17,555.01 Lakhs and correspondingly NFCL has reduced its Urea Subsidy claim by Rs. 16,879.16 Lakhs for FY 2022-23. Accordingly, the reduction in cost of raw material / power and fuel and consequent de-escalation of the subsidy revenues, respectively, belonging to FY 2022-23 have been accounted in line with the said notification and continued accounting policy. Further adjustments required, if any, will be considered on notification of final prices. As there is no production from 4th June 2024 onwards, there is no revenue from Operations to be recognized from the second quarter. - Refer Note No. 30 to the Standalone Financials.

e) The Government from time to time extended the present energy norms which were valid till 31st March 2023. Accordingly, Subsidy income is recognized based on Target Energy Norms as per NUP-2015 policy for the Quarter ended June 2024 and there is no production from June 2024 as the Plants were sold. - Refer Note No. 30 to the Standalone Financials.

f) Claim from a related party asserting its right for Royalty for the period from 29.01.1998 to 31.12.2021. The company agreed without impairment and prejudice to the rights of AMPL to settle the claims in a manner such that the dues are secured and paid on a priority basis from the receipts if any from claims against GAIL if and when GAIL satisfies the award in relation to pipeline accident. - Refer Note No. 32.5 to the Standalone Financials.

Our conclusion is not modified in respect of the above matters.

V. Key Audit Matters:

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.

. Key Audit Matter	How the matter was addressed in our audit
i) Recognition, measurement, presentation and disclosures of revenue from operations. "The Company" revenue from operations comprises of sale value of Urea and the Subsidy received from Govt of India. We identified this as a Key Audit Matter since the recognition of subsidy revenue and the assessment of recoverability of the related subsidy receivables is subject to significant judgements of the management. Since the sale and the eligible subsidy are interlinked and further the claim for subsidy depends on various government notifications issued from time to time, it is important to verify the correctness of the revenue from operations recognised in the books of account. Refer Note No. 20 in the Standalone financial statements.	Principal Audit procedures performed: • Verified various applicable Govt notifications under which the subsidy was notified. • Verified the sales made and related claims for subsidy with the records/ certificates submitted to the Government. • Performed analytical procedures for reasonableness of revenue and subsidy recognised vis a vis the sales made. • We evaluated the managements assessment regarding reasonable certainty of complying with the relevant conditions as specified in the notifications/policies. We evaluated adequacy of disclosures in the Standalone Ind AS Financial Statements.
ii) Provision for Expected Credit Loss in accounts receivables. The credit loss provision in respect of account receivables represent managements best estimate of the credit losses incurred on the receivables at the balance sheet date. We have identified provisioning for credit loss as a key audit matter as the calculation of credit loss provision is a complex area and requires management to make significant assumptions on customer payment behavior and estimating the level and timing of expected future cash flows. [Refer Note No. 7 in the standalone financial statements]	Our audit procedure in respect of this area included: • Understand and assess the managements estimate and related policies used in the credit loss analysis • Performed test of key controls to analyse operating effectiveness relating to calculation of impairment provisions. • For Expected Credit Loss (ECL) of trade receivables assessed on individual level by the management, examined on a test check basis, the objective evidence relating to the impairment of trade receivables and the key assumptions used in the estimate of the cash shortfalls and reviewed whether amounts have been recovered after the end of reporting period. • Reviewed the managements ageing analysis based on days past due by examining the original documents (such as invoices). Verified the calculation of ECL of each type of trade receivables.

Information Other than the Standalone Ind AS financial statements and Auditors Report Thereon

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 Management Discussion and Analysis, Boards Report including Annexure to Boards Report, Business Responsibility Report, Corporate Governance and Shareholders Information, but does not include the financial statements and our auditors report thereon.

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

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

When we read the annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance. We are required to report that fact; we have nothing to report in this regard.

Management and Board of Directors Responsibility for the Ind AS Standalone financial statements:

The Companys Board of Directors are responsible for the matters stated in section 134(5) of "the Act" with respect to the preparation of these Ind AS Standalone financial statements that give a true and fair view of the financial position, financial performance, total 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 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 Ind AS Standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

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

Auditors Responsibilities for the Audit of the IND AS Standalone Financial Statements

Our objective is to obtain reasonable assurance whether the Standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an audit 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 Standards on Auditing 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 our audit is conducted in accordance with Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks 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 controls 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 system 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 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 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.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entity or business activities of the Company to express an opinion on the financial statements.

Materiality is the magnitude of misstatements in the standalone 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 financial statements.

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 Standalone financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditors report unless law 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.

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", a statement on the matters specified in the 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. (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 Profit and Loss (including Other Comprehensive Income), The statement of Cash Flow and the Statement of changes in Equity dealt with by this Report are in agreement with the books of account; (d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with Relevant Rules issued there under. (e) On the basis of the written representations received from the management as on 31st March, 2025 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2025 from being appointed as a director in terms of Section 164 (2) of the Act. (f) With respect to the adequacy of 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. (g) With respect to the other matters to be included in the Auditors Report in accordance with the requirements of section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to the explanations given to us, "the Company" has paid remuneration to its Managing Director during the year by obtaining the prior approvals from the lenders in terms of third proviso to sub-section (1) of section 197 of the Act. (h) With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 as amended, in our opinion and to the best of our information and according to the explanations given to us: i. "The Company", as detailed in Note No. 32 in the standalone financial statements, has disclosed the impact of pending litigations on its financial position in its standalone financial statements as at 31st March, 2025. ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses. iv. 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, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. v. The Management has represented that, to the best of its knowledge and belief, no funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Parties or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. vi. Based on the 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) contain any material misstatement. vii. The company has not declared or paid any dividend during the year ending 31st March 2025. viii. Based on our examination, which included test checks, the Company has used accounting software for maintaining its books of account for the financial year ended March 31, 2025 which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of the audit trail feature being tampered with and the audit trail has been preserved by the company as per the statutory requirements for record retention.

Report on Other Legal and Regulatory Requirements

	For P. Murali& Co.,
	Chartered Accountants
	Firm Registration No: 007257S
	A Krishna Rao
	Partner
Date: 30.05.2025	Membership No.020085
Place: Hyderabad	UDIN: 25020085BMILGG6809

iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by "the Company" as at 31st March, 2025.

ANNEXURE ‘A TO THE INDEPENDENT AUDITORS REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements section of our report to the

Members of M/s NAGARJUNA FERTILIZERS AND CHEMICALS LIMITED of even date)

i. (a) (i) "The Company" does not have any Property Plant & Equipment (PPE) as at 31st March, 2025.

(ii) "The Company" has not held / dealt in intangible assets as at 31st March 2025.

(b) No proceedings have been initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988.

ii. (a) According to the information and explanations given to us and in our opinion, "the Companys" inventory has been physically verified by the management at reasonable intervals and in our opinion, the frequency, coverage and procedure of such verification by the management is appropriate. No discrepancies of 10% or more in the aggregate for each class of inventory were noticed between the physical stocks and the book stocks on such verification made during the year.

(b) During the year the lender viz., ACRE has sold the Core and Non-Core assets of the company and from those sale proceeds outstanding debt were settled, further there were no outstanding working capital loans from banks/ Financial Institutions as at 31st March, 2025.

iii. (a) As per the information and explanation given to us and in our opinion "the Company" has not made any investments or provided any loans or given any advance, guaranty or security to companies, firms, and Limited Liability partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013.

iv. As per the information and explanation given to us and in our opinion the Company has not granted any loans or made any Investments, or provided any guarantee or security to the parties covered under section 185 and 186 of "the Act".

v. The Company has not accepted any deposits from the public covered under Section 73 to 76 of the Companies Act, 2013 and rules framed there under to the extent notified.

vi. Maintenance of Cost records has been specified by the Central Government U/s. 148(1) of the Act for "the Company" and the prescribed accounts and records have been made and maintained by "the Company". However, we have not made a detailed examination of records with a view to determine, whether they are accurate and complete.

vii. (a) According to the information and explanations given to us and based on the records of the company examined by us, the company is regular in depositing the undisputed statutory dues, with the appropriate authorities in India for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us and based on the records of the company examined by us, there are statutory dues which have not been deposited on account of any disputes as at March 31,2025.

Nature of Statute	Nature of Dues	Amount (Rs. In Lakhs)	Period to which the amount relates	Forum where the dispute is pending
The Income Tax Act,1961	Penalty u/s 270A	141.99	FY 2017-18	CIT(Appeals), Hyderabad
VAT & CST	Regular demand under Maharastra VAT Act, 2002	7.92	FY 2008-09	Jt. Commissioner Appeals, Maharastra
	Regular demand under Kerala VAT Act	6.93	FY 2011-12	Dy Commissioner Appeals, Kottayam
	Regular demand under CST Act	139.39	FY 2013-14	AP vAt Appellate Tribunal, Vishakapatnam
	Penalty under AP Vat Act, 2005	20.95	FY 2015-16	High Court of Judicature at Hyderabad for the state of Telangana
	Penalty for delay in payment of VAT	56.27	FY 2012-13	AP High Court
GST	Interest on excess availment of ITC	55.29	FY 2017-18	DC-Appeals, Pune
	Interest, and penalty excess ITC claimed	14.19	FY 2018-19	DC-Appeals, Pune
	Interest on excess availment of ITC	0.88	FY 2017-18 & FY 201819	DC-Appeals, Bhubaneswar
Customs	Penalty on in relation to Customs Duty on Ship Demurrage Charges at Krishna Patnam Port for the period from 2010-2014	44.00	FY 2010-11 to FY 2013-14	CESTAT - HYDERABAD

VIII. As per the information and explanation given to us, there are no instances where the company has surrendered or disclosed such transactions as income during the period ended 31st March, 2025 in the tax assessments under the income tax Act, 1961.

8. (a) During the year the lender namely, ACRE has sold the Core and Non-Core assets of the company and from those sale proceeds outstanding debt were settled and "No Dues and Security release Certificate" from ACRE was received on 11th July 2024. After that, during the year the company has not availed any loan from banks/ Financial Institutions, thereby there is no default in repayment of loans or other borrowings or in the payment of interest thereon.(i) Loans and other borrowings from Banks / Financial Institutions:

(b) The company has not been declared a willful defaulter by any bank or financial institution or government or other lenders.

(c) According to the information and explanations given to us by the management, the company has not obtained any term loan during the year and hence the application of same does not arise.

(d) According to the information and explanations given to us and on an overall examination of the financial statements of the company, we report that no funds raised have been raised on short term basis by the Company.

(e) The company has not taken any funds from any entity or Person on account of or to meet the obligations of its Subsidiary Company/ Associate Company/ Joint Ventures.

(f) The company has not raised any loans during the year on the pledge of securities held in its subsidiaries, joint ventures or associate companies.

X. According to the information and explanations given to us,

(a) The Company has not raised moneys by way of initial public offer or further public offer including debt instruments during the year.

(b) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures.

XI. (a) No fraud by the company or 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 143 of the Companies Act has been filed by the auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government.

(c) As represented to us by the management, there are no whistle blower complaints received by "the Company" during the year.

XII. The Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it.

XIII. In our opinion and according to the information and explanations given to us, "the Company" is in compliance with Section 177 and 188 of the Companies Act, 2013 where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the Note - 33 to standalone financial statements as required by the applicable accounting standards.

XIV. (a) In our opinion the company has an adequate internal audit system which commensurate with the size and nature of its business.

(b) The reports of the Internal Auditors for the period under audit were duly considered by us in determining the nature, timing and extent of our audit procedures.

XV. The Company has not entered into non-cash transactions with its directors or persons connected with him.

XVI. (a) The Company is not required to be registered under section 45-IA of The Reserve Bank of India Act 1934. (b) In our opinion, the company has not conducted any Non-Banking Financial or Housing Finance activities as per the Reserve Bank of India Act, 1934. (c) In our opinion, there is no core investment company within the Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016) (d) In our Opinion, The Group does not have any CIC as part of the Group XVII. "The Company" has not incurred Cash losses in the current financial year however during the immediately preceding financial year the company has incurred cash losses amounting to Rs. 60,599.9 Lakhs.

XVIII. There is no resignation of the statutory auditors of "the Company" during the year. 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 financial statements, based on our knowledge of the Board of Directors and management plans, we are of the opinion that no material uncertainty exists as on the date of the audit report and company is capable of meeting its liabilities existing at the date of balance sheet.

XX. The company is not covered under the provisions of section 135 of the Companies act 2013 and hence not commented upon.

	For P. Murali& Co.,
	Chartered Accountants
	Firm Registration No: 007257S
	A Krishna Rao
	Partner
Date: 30.05.2025	Membership No.020085
Place: Hyderabad	UDIN: 25020085BMILGG6809

ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT

(Referred to in paragraph 2(f) under ‘Report on Other Legal and Regulatory Requirements section of our report to the Members

of NAGARJUNA FERTILIZERS AND CHEMICALS LIMITED of even date)

Report on the Internal Financial Controls over Financial Reporting 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 M/s NAGARJUNA FERTILIZERS AND CHEMICALS LIMITED ("the Company") as of March 31,2025 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Board of Directors 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. 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 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 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 Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section143(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 We believe that the audit evidence we have obtained is sufficient and appropriate to provide opinion on the internal financial controls system over financial reporting of the Company.

Meaning of Internal Financial Controls over Financial Reporting

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

Inherent Limitations of Internal Financial Controls over Financial Reporting with reference to these IND AS financial statements:

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 over financial reporting with reference to these IND AS financial statements and such internal financial controls over financial reporting were operating effectively as at 31st March, 2025, based on the internal control over financial reporting criteria established by the company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute Of Chartered Accountants of India.

	For P. Murali& Co.,
	Chartered Accountants
	Firm Registration No: 007257S
	A Krishna Rao
	Partner
Date: 30.05.2025	Membership No.020085
Place: Hyderabad	UDIN: 25020085BMILGG6809