Paras Petrofils Ltd Auditor Reports

Report on Other Legal and Regulatory Requirements of statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable. India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure A As required by section 143(3) of the Act, we report that: (i) belief were necessary for the purposes of our audit.

(ii) from our examination of those books.

(iii) Statement dealt with by this Report are in agreement with the books of account. (iv) under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

(v) record by the Board of Directors, we report that 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.

(vi) operating effectiveness of such controls, refer to our separate Report in

(vii) "Annexure B".

197 of the Act. paid/payable by the Company to its directors during the year is in accordance with the provisions of Section (vii) Companies (Audit and Auditors) Rule, 2014; in our opinion and to the best of our information and according to the explanations given to us; ^(a)(b) any material foreseeable losses.

(c) Fund by the Company.

(d) in the notes to accounts, no funds have been advanced or loaned or invested (either from borrowed funds or entity(ies), share premium including or any foreign other entities sources ("Intermediaries"), or kind of funds) by with thethe company understanding, to or in any whether other person(s) recorded or in writing personsor orotherwise, entities identified that the Intermediary in any manner shall, whatsoever whether, by directly or onor behalf indirectly of the lend company or invest ("Ultimate in other Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. or disclosed entity(ies), in the including notes to foreign the accounts, entitiesno ("Funding funds have Parties"), been received with the by understanding, the companywhether from any recorded person(s) in writing persons or or entities otherwise, identified that the in company any manner shall, whatsoever whether,by directly or on behalf or indirectly, of the Funding lend orParty invest ("Ultimate in other Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

78 nothing and (ii) contain any material misstatement. has come to our notice that has caused us to believe that the representations under sub-clause (i) (e) section 123 of the Companies Act, 2013.

(f) maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same during has theoperated course ofthroughout our audit we the did year notfor came all across relevant any transactions instance ofrecorded audit trail in feature the software. being tampered Further, statutory requirements for record retention. with and the audit trail in respect of the previous year has been preserved by the Company as per the

2025. OUR REPORT ON EVEN DATE TO THE MEMBERS OF PARAS PETROFILS LIMITED FOR THE YEAR ENDED ON 31st March, (i) ^{In respect of the Companys Property, Plant and Equipment and Intangible Assets:} a) situation of Property, Plant and Equipment and relevant details of right-of-use assets. at information and explanations given to us, no material discrepancies were noticed on such verification. reasonable interval having regard to the size of the Company and the nature of its assets. According to the the in the name of the company. lease agreements are duly executed in favour of the lessee) disclosed in the financial statements are held intangible assets during the year. for 2016) and rules made thereunder. holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in (ii) applicable.

3(ii)(b) of the Order is not applicable. any banks or financial institutions on the basis of security of current assets and hence reporting under clause other parties as mentioned in point no. 2.15 of Notes to Financial Statements. loans or advances in the nature of unsecured loans, to companies, firms, Limited Liability Partnerships and any (a) guarantor, or provided any security to any other entity [not being companies whose principal business is to give loans -ventures and associates; (B) the balance sheet date with respect to such loans Rs. 15.62 or advances croresand guarantees or security to parties other than subsidiaries, joint ventures and associates is Rs. 15.95 crores; loans interest; and advances in the nature of loans and guarantees provided are not prejudicial to the companys (c) period of repayment, hence clause 3(iii) (c) to (f) of the Order is not applicable.

(iv) provisions of section 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantees, and security.

(v) clause 3(v) of the Order is not applicable.

(vi) been specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013 for the business the Company. activities carried out by the Company. Hence, reporting under clause 3(vi) of the Order is not applicable to (vii) insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other material statutory dues applicable to the appropriate authorities. income tax, wealth tax, sales tax, custom duty, service tax, excise duty and cess were in arrears, as at 31st March, 2025 for a period of more than six months from the date they become payable, except for an amount of 2.24Lakhs relating to Tax Deducted at Source (TDS) default, which has remained unpaid for more than six months from the date it became payable.

(viii) income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961). interest thereon to any financial institution, bank, Government or dues to debenture holders or to any lender. any government authority. funds from the term loans and hence reporting under clause 3(ix)(c) of the Order is not applicable.

3(ix)(d) of the Order is not applicable. applicable. companies and hence reporting under clause 3(ix)(f) of the Order is not applicable.

(x) instruments) during the year and hence reporting under clause 3(x)(a) of the Order is not applicable. convertible is not applicable. debentures (fully or partly or optionally) and hence reporting under clause 3(x)(b) of the Order (xi) year. prescribed during the year and upto the date of this report. under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government, under clause 3(xi)(c) of the Order is not applicable.

(xii)

(xiii) applicable transactions with the related parties and the details of related party transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.

(xiv) its business.

(xv) persons connected with its directors. and hence provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.

(xvi) Act, 1934. Hence, reporting under clause 3(xvi)(a), (b) and (c) of the Order is not applicable. not applicable. Companies (Reserve Bank) Directions, 2016) and accordingly reporting under clause 3(xvi)(d) of the Order is (xvii) 37.38 cr during immediately preceding financial year.

(xviii) financial Directorsliabilities, and Managements other information plans and accompanying based on our the examination financial statements of the evidence and our supporting knowledge the of assumptions, the Board of the nothing audithas report come indicating to our attention, that Company whichis causes not capable us to believe of meeting that its any liabilities materialexisting uncertainty at the exists dateas ofon balance the date sheet of not as and an assurance when theyas fall todue the within future viability a periodof ofthe one Company. year from We the further balance state sheet that date. ourWe, reporting however, is based stateon that the this facts is within up to the a period date ofof the one audit year report from and the balance we neither sheet give date, anywill guarantee get discharged nor any by assurance the Company that all as liabilities and when falling theydue fall due.

(xx) a. Fund specified in Schedule VII to the Companies Act as second proviso to sub-section (5) of section 135 of the said Act is not applicable to the company and hence not commented upon. said Act is not applicable to the company hence not commented upon.

(xxi) Therefore clause 3(xxi) is not applicable and hence not commented upon.

March, 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 components internal control of internal overcontrol financial stated reporting in thecriteria Guidance established Note on by Audit the of Company Internalconsidering Financial Controls the essential over include Financial the Reporting design, implementation issued by the and Institute maintenance of Chartered of adequate Accountants internal offinancial India (‘ICAI). controls These that responsibilities were operating effectively policies, safeguarding for ensuring of its theassets, orderly prevention and efficient and detection conduct of of its frauds business, and errors, including accuracy adherence and completeness to companys of Companies Act, 2013. the accounting records, and timely preparation of reliable financial information, as required under the

Auditors Responsibility based Controls on our overaudit. Financial We conducted Reportingour (the audit "Guidance in accordance Note") with and the Guidance the Standards Note on on Auditing, Audit of issuedInternal by Financial ICAI and of deemed internal financial to be prescribed under controls, both section applicable 143(10) of to anthe audit Companies of Internal Act, Financial 2013, toControls the extent and, applicable both issued by to an audit the Institute with ethical of Chartered requirementsAccountants and plan ofand India. perform Those Standards the audit to and obtainthe Guidance reasonableNote assurancerequire that about wewhether comply adequate controls operated effectively in all material respects. internal financial controls over financial reporting was established and maintained and if such controls controls system over financial over financial reporting reporting included and obtaining their operating an understanding effectiveness. of internal Our audit financial of internal controls financial over financial operatingreporting, effectiveness assessing of internal the risk control that abased material on weakness the assessed exists, risk. and The testing procedures and evaluating selected depend the design onand the whether due to fraud or error. auditors judgment, including the assessment of the risks of material misstatement of the financial statements, audit opinion on the Companys internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting assurance purposes in regarding accordance the reliability with generally of financial accepted reporting accounting and the principles. preparation A companys of financial internal statements financial for external control that, over financial in reasonable reporting detail, includes accurately those and policies fairlyand reflect procedures the transactions that (1) pertain and dispositions to the maintenance of the assets of records of the of company; financial (2) statements provide reasonable in accordance assurance with that generally transactions accepted areaccounting recorded as principles, necessaryand to permit that receipts preparation and expenditures directors of the of company; the company and are (3) provide being made reasonable only inassurance accordance regarding with authorisations prevention or oftimely management detection and of unauthorised financial statements. acquisition, use, or disposition of the companys assets that could have a material effect on the

Inherent Limitations of Internal Financial Controls over Financial Reporting possibility fraud may occur of collusion and not orbe improper detected. management, Also, projections override of any of controls, evaluation material of the internal misstatements financial due controls to error over or financial reportingreporting may become to future inadequate periods because are subject of changes to the inrisk conditions, that the orinternal that thefinancial degree of control compliance over financial with the policies or procedures may deteriorate.

Opinion financial reporting and such internal financial controls over financial reporting were operating effectively as at

31 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.