Pakka Ltd Auditor Reports

To

The Members of

Pakka Limited (Formerly Known As Yash Pakka Limited)

To

Tine Members of

Pakka Limited (Formerly Known As Yash Pakka Limited)

We have audited tine Standalone financial statements of Pakka Limited ( Formerly known as Yash Pakka Limited) (“the Company”), which comprise the Standalone Balance Sheet as at March 31, 2024, tine Standalone Statement of Profit and Loss (including Other Comprehensive Income), tine Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows for tine year then ended and notes to the standalone financial statements, including a summary of material accounting policies and other explanatory information, (hereinafter referred to as “Standalone financial statements”).

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 Find AS”) and accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024, its profit and total comprehensive income, changes in equity and its cash flows for the year ended on that date.

Corporate Overview Statutory Reports

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 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 CICAD together with the ethical requirements that are relevant to our audit of tine Standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of tthics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the Standalone financial statements.

Key audit matters are those matters that, in our professionaljudgment, were of most significance in our audit of the Standalone financial statements of the current period. I hose matters were addressed in the context of our audit of the Standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to lie the key audit matters to be communicated in our report.

Sr. Key Audit Matter No	Auditors Response
1. Capitalization and useful life of Property Plant and Equipment (PPE)	Audit Approach :
? During the year, the Company has capitalized items of PPE including those from Capital work in progress and is in the process of executing various projects like, purchasing / installation of new machinery / capital projects. Since these projects take a substantial period of time to get ready for intended use and due to their materiality in the context of the Balance Sheet of the Company, this is considered to be an area with significant effect on the overall audit strategy and allocation of resources in planning and completing our audit;	We performed the following procedures:
	? Obtained an understanding of the system of internal control process over the capitalization of projects and those included in capital work in progress, with reference to identification and testing of key controls;
	? Assessed the progress of the project and the intention and ability of the management to carry forward and bring the asset to its state of intended use;
? These have been determined as a key audit matter due to the significance of the capital expenditure during the year and the risk that the elements of costs that are eligible for capitalization are not appropriately capitalized in accordance with the recognition criteria provided in Indian Accounting Standard (Ind AS) 16	? Understood, evaluated and tested the design and operating effectiveness of key controls relating to capitalisation of various costs incurred;
	? Tested the direct and indirect costs capitalised, on a sample basis, with the underlying supporting documents to ascertain nature of costs and basis for allocation, where applicable, and evaluated whether they meet the recognition criteria provided in the Ind AS 16, Property, Plant and Equipment;
(Refer Note 2 to the Standalone financial statements)
	? Ensured adequacy of disclosures in the Standalone financial statements.
2. Information Technology systems and controls over financial reporting.	Audit Approach:
We identified IT systems and controls over financial reporting as a key audit matter for the Company because its financial accounting and reporting systems are fundamentally reliant on IT systems and IT controls to process significant transaction volumes, specifically with respect to revenue and raw material consumption. Also, due to large transaction volumes and the increasing challenge to protect the integrity of the Companys systems and data, cyber security has become more significant.	We performed the following procedures:
	? Assessed the complexity of the IT environment through discussion with the IT team and identified IT applications that are relevant to our audit;
	? Evaluated the operating effectiveness of IT general controls over program development and changes, access to program and data and IT operations;
	? Performed inquiry procedures with the IT team of the Company in respect of the overall security architecture and any key threats addressed by the Company in the current year;
Automated accounting procedures and IT environment controls, which include IT governance, IT general controls over program development and changes, access to program and data and IT operations, IT application controls and interfaces between IT applications are required to be designed and to operate effectively to ensure accurate financial reporting.	? Evaluated the operating effectiveness of IT application controls in the key processes impacting financial reporting of the Company;
	? Assessed the operating effectiveness of controls relating to data transmission through the different IT systems to the financial reporting systems

Information other than the Standalone financial statements and Auditors report thereon

The Companys Management and Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Boards Report including its annexures and Corporate Governance and Shareholders information but does not include the Standalone financial statements and our auditors report thereon. The Management Discussion and Analysis, Directors report including its annexures and Corporate Governance and Shareholders information is expected to be made available to us after the date of this auditors report.

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

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

If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact. When we read the other information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

Responsibilities of Management and Those Charged with Governance for the Standalone financial statements

The Companys Management and the Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these Standalone financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including Ind AS prescribed under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Standalone financial statements, Management and the Board of Directors is 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 to cease operations, or has no realistic alternative but to do so.

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

Auditors Responsibilities for the Audit of Standalone financial statements

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

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

? Conclude on the appropriateness of management and Board of Directors use of the going concern basis of accounting in preparation of standalone financial statements 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;

Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Standalone 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 audit 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 disclosures about the matters 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 the Act, we give in the “Annexure A” a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. As required by Section 143(3) of the Act, based on our audit, we report that:

(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

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

(c) The Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including other comprehensive income, Standalone statement of changes in equity and the Standalone Cash Flow Statement 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 prescribed under Section 133 of the Act, read with the relevent rules issued thereunder;

(e) On the basis of the written representations received from the directors as on March 31, 2024 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2024 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 with reference to the Standalone financial statements 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 with reference to Financial statements;

(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 remuneration paid by the Company to its directors during the year is in accordance with requisite approvals mandated by the provisions of section 197 read with Schedule V 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 has disclosed the impact of pending litigations as on March 31, 2024 on its financial position in its Standalone financial statements - Refer Note 46 to the Standalone financial statements.

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

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

iv. a. The Management has represented that, to the best of its knowledge

and belief as disclosed in note 50 to the Standalone financial statements, 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 person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

b. The Management has represented, that, to the best of its knowledge and belief,as disclosed in note 50 to the Standalone financial statements no funds have been received by the Company from any person(s) or entity(ies), 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 Beneficiaries; and

c. Based on such audit procedures that we have 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;

v. The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with section 123 of the Act to the extent it applies to payment of dividend;

vi. Based on our examination which included test checks, the accounting software used for maintaining books of account has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all the relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with.

For C N K & Associates LLP

Chartered Accountants Firm Registration No: 101961W / W - 100036

	Himanshu Kishnadwala
	Partner
Place: Mumbai	Membership No: 037391
Date: May 30,2024	UDIN: 24037391BKBOIM9226

Annexure “A” to the Independent Auditors Report

(Referred to in paragraph 1 under “Report on other Legal and Regulatory requirements” in the Independent Auditors Report of even date to the members of Pakka Limited (Formerly known as Yash Pakka Limited) (“the Company”) on the Standalone financial statements for the year ended March 31 2024)

To the best of our information and according to the explanations provided to us by the Company and the books of account and records examined by us in normal course of audit, we state that:

(i) In respect of the Companys Property plant and Equipment and Intangible assets:

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

B. The Company is maintaining proper records showing full particulars, of Intangible assets;

(b) The Company has a programme of physical verification of its Property Plant and Equipment, Right of Use assets so by which all the items are verified in a phased manner over a period of three years. In accordance with this programme the Company has verified certain items of Property Plant and Equipment during the year and the discrepancies noticed on such verification were not material and have been properly dealt with in the books of accounts;

(c) As mentioned in Note 2 to the Standalone financial statements and according to the information and explanations given to us and the record examined by us and based on the examination of the latest title search report and based on the confirmation received from banks as provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company;

(d) The Company has not revalued any of its Property Plant and Equipment (including Right of Use Assets) or Intangible Assets or both during the year. Accordingly reporting under clause3 (i) (d) of the Order, is not applicable to the Company;

(e) The Company does not have any proceedings initiated or pending for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder;

(ii) (a) The Company has not verified 100% of its Inventory at reasonable intervals during the year. In our opinion the coverage and procedure of such verification by the management of the Inventory verified during the year is appropriate. There were no discrepancies of 10% or more in aggregate for each class of inventory which were noticed on such verification;

(b) The Company has been sanctioned working capital limits in excess of RS.5 crores in aggregate during the year from Banks on the basis of security of current assets. The discrepancies in quarterly filed returns or statements with the books of accounts are mentioned in Note 17.1 to the Standalone financial statements;

(iii) (a) As disclosed in note 12A and 12B of the financial statements , the Company

has granted loans to its subsidiaries and employees during the year. The company has neither stood guarantee nor provided any security to any entity during the year;

(Rs. in Lakhs)

Particulars	Loans	Security	Guarantee	Advances in the nature of loans
Aggregate amount granted/ provided during the year Related Parties*	1,991.03
Employees Amount outstanding as at the Balance sheet date	495.02			240.37
Related Parties*	2,712.58			-
Employees	150.25			80.55

*Including accrued interest thereon

(b) In our opinion, the investments made, and the terms and conditions of the loans given by the Company during the year are not, prejudicial to the Companys interest;

(c) In respect of the loans granted, schedule of repayment of principal and payment of interest has been stipulated. The tenure of the said loans was extended during the year and based on the revised repayment schedules; no repayment of loan & interest has fallen due during the year;

(d) In respect of the loans granted, there is not amount overdue for a period of more than 90 days;

(e) During the year, the tenure of loans granted to subsidiaries in earlier years, which had fallen due during the year were extended. No loans were renewed, nor fresh loans granted to settle the over dues of existing loans given to the said subsidiaries. The details of loans, the tenure of which was extended are as below:

Name of the Entity	Aggregate amount of loans or advances in loans granted during the year. (Rs. Lakhs)	Aggregate overdue amount settled by extension granted to same parties. (Rs. Lakhs)	% of the aggregate to the total loans or advances in the nature of loans granted during the year (Rs. Lakhs)
Pakka Inc	1,417.36	416.87	29.41%
Pakka Impact Limited	573.67	152.00	26.50%
Total	1,991.03	568.87	28.57%

(f) During the year the Company has not granted any loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment to any promoters, related parties as defined in clause (76) of section 2 of Companies Act, 2013. Hence reporting under clause (iii)(f) is not applicable;

(iv) The Company has complied with the provisions of sections 185 and 186 of the Companies Act, 2013 in respect of the loans granted and investments made during the year The Company has not stood guarantee nor provided security to any party during the year;

(v) The Company has not accepted any deposits or the amounts which are deemed to be deposits within the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013;

(vi) The Company is not required to maintain cost records pursuant to the Companies (Cost Records and Audit) Amendment Rules, 2016, and prescribed by the Central Government under sub-section (1) of section 148 of the Companies Act 2013;

(vii) (a) In our opinion the Company has been generally regular in depositing

undisputed statutory dues, including provident fund, Income tax, goods and service tax, customs duty, cess and other material statutory dues applicable to it with appropriate authorities. There were no undisputed amounts payable in respect of provident fund, income tax, goods and service tax, customs duty, cess and other material statutory dues in arrears as at March 31 2024 for a period of more than six months from the date they became payable;

(b) Details of statutory dues referred to above which have not been deposited as on March 31 2024 on account of dispute are given below:

(Amount Rs.Lakhs)

Name of statute	Nature of dues	Amount (Net of amount paid under protest)	‘Period to which the amount relates	Forum where the matter is pending
UP VAT Act, 2008	Entry Tax	1.55	2016-2017	Joint Commissioner, Ayodhya
	ITC mismatch	-	2017-2018
	Demand on assessment	1.71	2016-2017
	VAT on purchase of paddy from unregistered parties	196.99	2008-2009	High Court Allahabad,
		72.44	2012-2013	Lucknow Bench
Central Excise Act, 1944	Lapse of balance available in account (Input and Service Tax)	238.98	2009-2010	High Court Allahabad
		111.57	2010-2011

*Excluding amount paid under protest of RS.13.35 lakhs.

(viii) 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 Income Tax Act, 1961;

(ix) (a) The Company has not defaulted in repayment of loans or other borrowings

or in the payment of interest thereon to any lender during the year;

(b) The company has not been a declared wilful defaulter by any bank or financial institution or other lenders during the year;

(c) On an examination of the records of the Company, we report that during the year the term loan were applied for the purpose for which the loans were obtained;

(d) We report that the Company has not used the funds raised on short term basis for long term purposes;

(e) The company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries; The Company does not have any associates or Joint ventures;

(f) The company has not raised loans during the year on the pledge of securities held in its subsidiaries; The Company does not have any associates or Joint ventures

(x) (a) No moneys were raised by way of initial public offer or further public offer

(including debt instruments) during the year. Hence reporting under this clause is not applicable to Company;

(b) The Company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially, optionally convertible) during the year;

(xi) (a) No fraud by the Company and no fraud on the Company has been noticed

or reported during the year;

(b) No report under section 143(12) of the Companies Act, 2013 has been filed by the auditors in Form ADT-4 as prescribed under Rule 13 of the Companies (Audit and Auditors Rules), 2014 with the Central government during the year and upto the date of this report;

(c) As represented by the Management, there are no whistle blower complaints received by the Company during the year;

(xii) The Company is not a Nidhi Company. Accordingly reporting under clause 3(xii) of the Order is not applicable;

(xiii) The Company is in compliance with sections 177 and 188 of Companies Act, 2013 with respect to transactions with related parties;

(xiv) (a) Based on the review of the reports of the Internal Auditors for the year, in

our opinion the Internal Audit system of the Company needs to be improved to cover more areas to make it commensurate with the size and nature of the business of the Company;

(b) We have considered the reports of the Internal auditors for the period under audit; issued to the Company during the year, 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 him. Hence the provisions of section 192 of the Act, are not applicable;

(xvi) (a) The Company is not required to be registered under sections 45-IA of the

Reserve Bank of India Act, 1934 (2 of 1934); Accordingly reporting under clause 3(xvi)(a) of the Order is not applicable;

(b) The company has not conducted any Non-Banking Financial or Housing Finance activities without a valid Certificate of Registration (CoR) from the Reserve Bank of India as per the Reserve Bank of India Act, 1934, Accordingly reporting under clauses 3 (xvi)(b) of the Order is not applicable;

(c) The Company is not a Core Investment Company as defined in the Regulations made by the Reserve bank of India;

(d) There is no Core investment Company within the group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016) and accordingly reporting under clause 3 (xvi)(d) of the Order is not applicable;

(xvii) The Company has not incurred any cash losses in the financial year and in the immediately preceding financial year;

(xviii) There has been 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 realisation of financial assets and payment of financial liabilities, other information accompanying Standalone financial statements, and on our knowledge of the Board of the 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 there exists any material uncertainty as on the

date of the audit report indicating that the Company is not capable of meeting its liabilities existing as the date of the 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 facts up to the date of the audit report and we neither give any guarantee nor 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) (a) In respect of other than ongoing projects, there were no unspent amounts required to be transferred to any fund specified in Schedule VII of the Act. Accordingly, reporting under clause 3(xx) (a) of the Order is not applicable for the year;

(b) The Company does not have any unspent amount towards Corporate Social Responsibility (CSR) on ongoing project. Accordingly, reporting under clause 3(xx)(b) of the Order is not applicable for the year;

For C N K & Associates LLP

Chartered Accountants Firm Registration No: 101961W / W - 100036

	Himanshu Kishnadwala
	Partner
Place: Mumbai	Membership No: 037391
Date: May 30,2024	UDIN: 24037391BKBOIM9226

Annexure “B” to the Independent Auditors Report

Report on the Internal Financial Controls with reference to the aforesaid Standalone financial statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

Opinion

We have audited the internal financial controls with reference to Standalone financial statements of Pakka Limited (Formerly known as Yash Pakka Limited) (“the Company”) as of March 31, 2024, in conjunction with our audit of the Standalone financial statements of the Company for the year ended on that date.

In our opinion, to the best of our information and according to the explanations given to us, the Company, except for strengthening of process of financial closure at every period end, the Company has, in all material respects adequate internal financial controls with reference to Standalone financial statements and such internal financial controls over financial reporting were operating effectively as at March 31, 2024, based on the criteria for internal financial control with reference to Standalone financial statements established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (the “Guidance Note”).

Managements Responsibility for Internal Financial Controls

The companys management and the Board of Directors are responsible for establishing and maintaining internal financial controls with reference to standalone financial statements based on the internal control with reference to standalone financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls with reference to standalone financial statements 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, 2013..

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls with reference to 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 of Internal Financial Controls with reference to Financial statements, both issued by the ICAI. 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 with reference to financial statements were established and maintained and whether 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 with reference to the standalone financial statements and their operating effectiveness. Our audit of internal financial controls with reference to standalone financial statements included obtaining an understanding of such internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error;

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

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 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

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.

For C N K & Associates LLP

Chartered Accountants Firm Registration No: 101961W / W - 100036

	Himanshu Kishnadwala
	Partner
Place: Mumbai	Membership No: 037391
Date: May 30,2024	UDIN: 24037391BKBOIM9226