Prashant India Ltd Auditor Reports

<dhheadIndependent Auditors Report</dhhead

To

The Members of PRASHANT INDIA LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Prashant India Limited (“the Company”), which comprises of the Balance Sheet as at 31st March 2025, and 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, and notes to the standalone financial statements, including a summary of significant 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 (“Act”)in the manner so required and subject to our notes in Qualified Report, give a true and fair view in conformity with the accounting principles generally accepted in India including Indian Accounting Standards (“Ind AS”) specified under section 133 of the Act, of the state of affairs of the Company as at March 31, 2025 and its profit/loss, total comprehensive income, the changes in equity and cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit 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 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 together with the ethical requirements that are relevant to our audit of the 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 Code of Ethics.

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

Qualified Report

• Material Uncertainty Related to Going Concern

We draw attention to Note No. 1(b) on Going Concern, which states inter alia that

a. the Company has incurred net loss after tax of Rs. 20.02 lakhs during the year ending on 31st March, 2025 and has been incurring net losses / cash losses since past several years

b. the accumulated losses of the Company have far exceeded its entire capital plus reserves. Net Worth of the Company has been negative since the year ending on 31^st March, 1998.

c. the Companys current liabilities exceeded its current assets by Rs. 3382.01 lakhs as on 31^st March, 2025 indicating the state of financial distress and reflecting its almost inability in meeting with its financial obligations

d. the company has not made provisions on account of liabilities and doubtful assets to the extent of Rs. 11223.26 lacs

e. the operations of Agro division of the company have stood suspended since the year 1998. The Company has sold all the plant and machineries of Agro division as scrap during the financial year 2018-19 and has been in the process of selling land and building of the said Division.

f. the operations of Textile Division of the Company are closed since July 2023, due to issues like unavailability of job work, unaffordable pricing, machineries obsolete technology, etc.

g. there is not full captive consumption of wind power generation by Wind Power division of the Company resulting into partly sale of power to DGVCL at predefined rate, which is significantly lower than the billing rate. Though the Agreement with GETCO for the wheeling of power generated by Wind Power division is valid till 30^th Sept., 2025, the Gujarat Renewable Energy Policy, 2023 demands scrapping off of all wind turbines of the Company having completed 25 years of life.

h. the Company has entered into an Agreement for Sale with one of the Secured Creditors of the Company for the sale of factory land and building of Textile Division and execution of sale deed is pending subject to the approval of members in the General Meeting.

i. The Company has invited bids / offers for the sale of all its plant & machineries of Textile Division on “as is where is basis” and shall dispose of said plant & machineries.

j. the Company has invited bids / offers for the sale of all its plant & machineries of Wind Power Division on “as is where is basis” and shall dispose of said plant & machineries

All these collectively indicate that a material uncertainty exists that may cast significant

doubt on the Companys ability to continue as “Going Concern ”.

Managements perspective:

The Managements plan is to get rid of all the debts and making the Company debt free by disposing of the existing assets of the Company, negotiating with secured creditors for waiver of debt against settlement of dues and thereafter to launch a new project finding out new investors.

Auditors view point Managements perspective

We have our own reservations about Managements plans and hence, our opinion is Modified (Qualified) in respect of the aforesaid Matter.

• Non provision of liabilities -

We draw attention to Note No 20(b) on Provisions and Contingent Liabilities. In this regulatory environment, there is an inherent risk of litigations and claims. Consequently, provisions and contingent liabilities disclosures may arise from tax proceedings, legal proceedings including regulatory and other government / department proceedings as well as investigations by authorities and other financial obligatory positions. As at March 31, 2025, the Company has not provided for liabilities and assets to the extent of Rs. 11223.26 lakhs. Management applies significant judgement in estimating the likelihood of the future outcome in each case when to consider- whether, and how much, to provide or in determining the required disclosure for the potential exposure of each matter. This is due to the highly complex nature and magnitude of the legal matters involved along with the fact that resolution of tax and legal proceedings may span over multiple years, and may involve protracted negotiation or litigation. These estimates could change substantially over time as new facts emerge and each legal case progresses. In our Audit approach, we found that recording of the outstanding litigations against the Company for consistency with the previous years, enquire and obtain explanations for movement during the year, need development for those matters where management concluded that no provisions should be recognised, considering the adequacy and completeness of the Companys disclosures.

Managements perspective:

The Managements plan is to get rid of all the debts and making the Company debt free by disposing of the existing assets of the Company, negotiating with secured creditors for waiver of debt against settlement of dues and thereafter to launch a new project finding out new investors.

Auditors view point Managements perspective

We have our own reservations about Managements plans and hence, our opinion is Modified (Qualified) in respect of the aforesaid Matter.

Emphasis of Matter

• We draw attention to Note No 17 on Employee Benefit Expenses (including transactions related to provident fund, ESIC, profession tax, gratuity, leave encashment, bonus liability) for the year ended on 31st March 2025. We perceived that the system of recording such expenses needs advancement to ensure terminality, transaction trail and related documentary evidences. Accordingly, we are impuissant to assess and quantify effect of aforesaid transactions on the financial statements. However, according to management estimates, such expenses/transactions are fairly stated in the financial statement and there are no material deficiencies/ non provisions.

Our opinion is not modified in respect of the aforesaid Matter.

• We draw attention to Note No 20(c) on Confirmations/ Reconciliation of trade receivables, trade and other payables (including micro and small enterprises and including capital creditors) and loans and advances that are pending. The management is confident that on confirmation/ reconciliation, there will not be any material impact on the financial statements.

Our opinion is not modified in respect of the aforesaid Matter.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the 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 be the key audit matters to be communicated in our reports:

The key audit matters	How our audit addressed the key audit matter
Evaluation of uncertain tax positions
The Company operates in multiple jurisdictions and divisions and is subject to periodic challenges by local tax authorities on a range of tax matters during the normal course of business including direct and indirect tax matters. This involves significant management judgment to determine the possible outcome of the uncertain tax positions, consequently having an impact on related accounting and disclosure in the financial statements.	Our audit procedures include the following substantive procedures: • Obtained details of completed tax assessments and demands up to March 31, 2025 from the management to understand managements underlying assumptions in estimating the tax provision and the possible outcome of the disputes.
	• Discussed with appropriate senior management and evaluated managements underlying key assumptions in estimating the tax provisions. • Legal precedence and other rulings in evaluating managements position on these uncertain tax positions were also considered.
	• Read and analyzed select key correspondences, external legal opinions/consultations by managements for key uncertain tax positions.

Allowance for doubtful debts/ Provision for Expected Credit Loss

Allowance for doubtful debts was identified as key audit matter since-	Our audit work included but was not restricted to the following procedures:
• Receivables comprise a significant portion of the liquid assets of the Company.	• The assessment of the appropriateness of the allowance for trade receivables comprised a variety of audit procedures including:
• There is an inherent risk around the accuracy of companys trade receivables being fairly valued and adequately
provided against where doubt exists. • There is a risk of debtors being misstated and disclosures related to the same in the financial statements.	Verifying the appropriateness and reasonableness of the assumptions applied in the managements assessment of the receivables allowance.
• Accordingly, the estimation of the allowance for trade receivables is a significant judgement area and is therefore considered a key audit matter.	To address the risk of management bias, we evaluated the results of our procedures against audit procedures on other key balances to assess whether or not there was an indication of bias.

Information other than the Financial Statements and Auditors Report thereon

The Companys Board of Directors is responsible for the preparation of the other information. The other information comprises of the information included in the Management Discussion and Analysis, Boards Report including Annexures 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 standalone financial statements or our knowledge obtained during 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 observation, 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 Financial Statements

The Companys Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the Act”), with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company, in accordance with the Indian Accounting Standards (Ind AS), prescribed under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Rules 2016 as amended from time to time and other accounting principles generally accepted in India.

This responsibility also includes maintenance of adequate accounting records, with tracking of changes, 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 financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management 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.

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

Auditors Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 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 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 control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, 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 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 financial statements, including the disclosures and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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 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.

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 Companies Act, 2013, we give in the “Annexure A”, a statement on the matters specified in paragraphs 3 and 4 of the Order.

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 our audit.

b) In our opinion, subject to our note regarding limited maintenance of edit log report, 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 Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of accounts

d) In our opinion, subject to our qualification regarding viability of the Company as “Going Concern”, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) On the basis of the written representations received from the directors as on 31^st March, 2025 taken on record by the Board of Directors, none of the directors is disqualified as on 31^st March, 2025, from being appointed as a director in terms of Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, please refer to our separate Report in “Annexure B”.

g) With respect to the matter to be included in the Auditors Report under section 197(16), according to the information and explanations given to us, the Company has not paid remuneration to its directors during the current year The Ministry of Corporate Affairs has not prescribed other details under section 197(16), which are required to be commented upon by us.

(B) With respect to the other matters to be included in the Auditors Report in accordance with

Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best

of our information and according to the explanations given to us:

a) The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Please refer Note 20 to the financial statements;

b) The Company has not made provisions as required under applicable Laws or Accounting Standards for material foreseeable losses as mentioned in Note No. 20(b). The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.

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

d) The management has represented that to the best of its knowledge and belief that

(i) 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 to or on behalf of the Ultimate Beneficiaries

(ii) 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 Party or

• provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries and

(iii) Based on such audit procedures as 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 (d)(i) and (d)(ii) of Rule 11(e) above contain any material misstatement.

e) The company has not declared or paid dividend during the year.

f) Based on our examination, which included test checks, the company has used Tally prime Edit log accounting software in its standard form as supplied by the Vendor, for maintaining its books of accounts, which has the feature of recording audit trail (edit log) facility and that has operated throughout the year for all relevant transactions recorded in the software except that the audit trail at database level contains only the modified value. Further, during the course of our audit, we did not notice any instance of audit trail feature being tampered with for the period the audit trail was enabled and the audit trail, where enabled, has been preserved by the Company as per the Statutory requirements for record retention.

Place : Surat.	For SONIJHAWAR & CO. CHARTERED ACCOUNTANTS Sd /- SATYANARAIN SONI
Date : 28-05-2025	PARTNER
	M.No.: 071689 FRN. : 0110386W UDIN: 25071689BMHUVJ3156

Annexure ‘A to the Independent Auditors Report -

The Annexure referred to in our Independent Auditors Report to the members of Prashant India Limited on the standalone financial statements for the year ended on 31^st March, 2025, Statement on matters specified in paragraphs 3 & 4 of the Companies (Auditors Report) Order 2020:

According to the information and explanations given to us by the Management and based on our examination of the records of the Company and the audit procedures performed by us, to the best of our knowledge and belief, in our opinion, we state as follows :

(i) (a) (A) whether the Company is maintaining proper records showing full

particulars, including quantitative details and situation of Property, Plant and Equipment;

Yes

(B) whether the Company is maintaining proper records showing full particulars of intangible assets;

The Company doesnt have any intangible assets.

(b) whether these Property, Plant and Equipment have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so, whether the samehave been properly dealt with in the books of account;

The Company has a regular program of Physical Verification of its Property, Plant & Equipment (PPE) performed by Management, by which all PPE are verified in a phased manner over a period of three years. In our opinion, this periodicity of physical verification is reasonable having regards to the size of the Company and the nature of its assets. Pursuant to the Schedule of Physical Verification, certain fixed assets were physically verified by the management during the year and no material discrepancies were noticed on such verification.

(c) whether the title deeds of all the immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee) disclosed in the financial statements are held in the name of the company, if not, provide the details thereof inthe format bclow:-

Title deeds of all the immovable properties are held in the name of the Company subject to encumbrances recorded in favour of Secured Creditors of the Company.

Descriptionof property	Gross carrying value	Held in name of	Whether promoter, director or their relative or employee	Period held -indicaterange, where Appropriate	Reason for not being held in nameof company*
		?	N.A.
?also indicate if in dispute

(d) whether the Company has revalued its Property, Plant and Equipment (including Right of Use assets) or intangible assets or both during the year and, if so, whether the revaluation is based on the valuation by a Registered Valuer; specify the amount of change, if change is 10% or more in the aggregate of the net carrying value of each class of Property, Plant and Equipment or intangible assets;

No, the company has not revalued its PPE, etc.

(e) whether any proceedings have been initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder, if so, whether the company has appropriately disclosed the details in its financial statements;

No proceedings have been initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(ii) (a) whether physical verification of inventory has been conducted at reasonable

intervals by the management and whether, in the opinion of the auditor, the coverage and procedure of such verification by the management is appropriate; whether any discrepancies of 10% or more in the aggregate for each class of inventory were noticed and if so, whether they have been properly dealt with in the books of account;

The inventory has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable and; the coverage and procedure of such verification by the management is appropriate. The Company has maintained proper records of inventory. The discrepancies noticed on verification between the physical stock and the book record were not material.

(b) whether during any point of time of the year, the Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks or financial institutions on the basis of security of current assets; whether the quarterly returns or statements filed by the company with such banks or financial institutions arc in agreement with the books of account of the Company, if not, give details;

No, the Company has not been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks or financial institutions on the basis of security of current assets and hence, no quarterly returns have been filed by the Company

(iii) whether during the year the Company has made investments in, provided any guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any other parties, if so,-

No

(a) whether during the year the Company has provided loans or provided advances in the nature of loans, or stood guarantee, or provided security to any other entity [not applicable to companies whose principal business is to give loans], if so, indicate- No

(A) the aggregate amount during the year, and balance outstanding at the balance sheet date with respect to such loans or advances andguarantees or security to subsidiaries, joint ventures and associates;

N.A.

(B) the aggregate amount during the year, and balance outstanding at the balance sheet date with respect to such loans or advances andguarantees or security to parties other than subsidiaries, joint venturesand associates;

N.A.

(b) whether the investments made, guarantees provided, security given andthe terms and conditions of the grant of all loans and advances in the nature of loans and guarantees provided are not prejudicial to the companys interest;

N.A.

(c) if the amount is overdue, state the total amount overdue for more than ninety days, and whether reasonable steps have been taken by the company for recovery of the principal and interest;

N.A.

(d) whether any loan or advance in the nature of loan granted which has fallen due during the year, has been renewed or extended or fresh loans granted to settle the overdues of existing loans given to the same parties, if so, specify the aggregate amount of such dues renewed or extended or settled by fresh loans and the percentage of the aggregate to the total loans or advances in the nature of loans granted during the year [not applicable to companies whose principal business is to give loans];

N.A.

(e) whether the company has granted any loans or advances in the natureof loans either repayable on demand or without specifying any terms or period of repayment, if so, specify the aggregate amount, percentage thereof to the total loans granted, aggregate amount of loans granted to Promoters, related parties as defined in clause (76) of section 2 of the Companies Act, 2013;

nX

(f) in respect of loans and advances in the nature of loans, whether the schedule of repayment of principal and payment of interest has been stipulated and whether the repayments or receipts are regular;

N.A.

(iv) in respect of loans, investments, guarantees, and security, whether provisions of sections 185 and 186 of the Companies Act have been complied with, if not, provide the details thereof;

The Company has complied with the provisions of Section 185 and 186 of the Act, with respect to the loans given, investments made, guarantees and securities given.

(v) in respect of deposits accepted by the Company or amounts which are deemed to be deposits, whether the directives issued by the Reserve Bankof India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules made thereunder, where applicable, have been complied with, if not, the nature of such contraventions be stated; if an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal, whether the same has been complied with omot;

The company has not accepted deposits from the public. The directives issued by the RBI and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under, where applicable, have been complied with. No order has been passed by CLB or National Company Law Tribunal or RBI or any court or any other tribunal for any contraventions.

(vi) whether maintenance of cost records has been specified by the Central Government under sub-section (1) of section 148 of the Companies Act and whether such accounts and records have been so made and maintained;

The Companys turnover is below the prescribed threshold for becoming liable for the maintenance of cost records.

(vii) (a) whether the company is regular in depositing undisputed statutory duesincluding Goods and Services Tax, provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues to the appropriate authorities and if not, the extent of the arrears of outstanding statutory dues as on the last day of the financial year concerned for a period of more than six months from the date they became payable, shall be indicated;

The Company has been regular in depositing undisputed statutory dues including Goods and Service Tax, provident fund, employees state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities. There were no undisputed statutory dues outstanding as at 31-03-2025 for a period of more than six months from the date they became payable.

(b) where statutory dues referred to in sub-clause (a) have not been deposited on account of any dispute, then the amounts involved and the forum where dispute is pending shall be mentioned (a mere representation to the concerned Department shall not be treated as a dispute);

There are no dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax or cess outstanding on account of any dispute except as mentioned below

Nature of statute	Nature of dues	Amount involved	Period	Forum where dispute is pending
		NIL -?

(vtn) whether any transactions not recorded in the books of account have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961), if so, whether the previously unrecorded income has been properly recorded in the books of account during the year;

No transactions not recorded in the books of account have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of

1961)

(ix) (a) whether the company has defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender, if yes, the period and the amount of default to be reported as per the format below:- The company has defaulted in repayments of loans or borrowings and interest thereon to lenders as per note no. 10 to the financial statements.

Nature of borrowing, including debt securities	Name of lender*	Amount not paid on due date	Whether principal or interest	No. of days delay or unpaid	Remarks, if any
Secured loans	As per note no. 10	34,60,58,745	Principal	Since Dec. 1998	Interest is also not provided for
lender wise details to be providcc	i in case of defaults to banks, financial institutions and Government.

(b) whether the company is a declared wilful defaulter by any bank or financial institution or other lender;

No

(c) whether term loans were applied for the purpose for which the loans were obtained; if not, the amount of loan so diverted and the purpose for which it is used may be reported;

The company has not obtained term loans during the year.

(d) whether funds raised on short term basis have been utilised for long term purposes, if yes, the nature and amount to be indicated;

No

(e) whether the company has taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries, associates or joint ventures, if so, details thereof with nature of such transactions and the amount in each case;

No

(f) whether the company has raised loans during the year on the pledge ofsecurities held in its subsidiaries, joint ventures or associate companies,if so, give details thereof and also report if the company has defaulted in repayment of such loans raised;

No

(x) (a) whether moneys raised by way of initial public offer or further public offer

(including debt instruments) during the year were applied for the purposes for which those are raised, if not, the details together with delays or default and subsequent rectification, if any, as may be applicable, be reported;

The Company has not raised fresh moneys by way of public issue or further public officer (including debt instruments ) and term loans during the year.

(b) whether the company has made any preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally convertible) during the year and if so, whether the requirements of section42 and section 62 of the Companies Act, 2013 have been complied with and the funds raised have been used for the purposes for which the fundswere raised, if not, provide details in respect of amount involved and nature of non-compliance;

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

(xi) (a) whether any fraud by the company or any fraud on the company has been

noticed or reported during the year, if yes, the nature and the amountinvolved is to be indicated;

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) whether any 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;

No

(c) whether the auditor has considered whistle-blower complaints, if any, received during the year by the Company;

Whistle blower complaints received by the Company during the year have been considered by the Auditor.

(xii) (a) whether the Nidhi Company has complied with the Net Owned Funds to Deposits in

the ratio of 1: 20 to meet out the liability;

The Company is not a Nidhi Company.

(b) whether the Nidhi Company is maintaining ten per cent, unencumbered term deposits as specified in the Nidhi Rules, 2014 to meet out the liability;

The Company is not a Nidhi Company.

(c) whether there has been any default in payment of interest on deposits or repayment thereof for any period and if so, the details thereof;

The Company is not a Nidhi Company.

(xiii) whether all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act where applicable and the details have been disclosed in the financial statements, etc., as required by the applicable accounting standards;

All transactions with the related parties are in compliance with section 177 and 188 of the Companies Act, 2013 where applicable and the details have been disclosed in the Standalone Financial Statements, etc. as required by the accounting standards and Companies Act, 2013.

(xiv) (a) whether the company has an internal audit system commensurate with the size

and nature of its business;

Yes

12 (b) whether the reports of the Internal Auditors for the period under audit were

considered by the statutory auditor;

The reports of the internal Auditor for the period under Audit have been considered by the statutory Auditor.

(xv) whether the company has entered into any non-cash transactions with directors or persons connected with him and if so, whether the provisions of section 192 of Companies Act have been complied with;

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

(xvi) (a) whether the company is required to be registered under section 45-IA of the

Reserve Bank of India Act, 1934 (2 of 1934) and if so, whether the registration has been obtained;

No

(b) whether the company has 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;

No

(c) whether the company is a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India, if so, whether it continues to fulfil the criteria of a CIC, and in case the company is an exempted or unregistered CIC, whether it continues to fulfil such criteria;

No, the company is not a Core Investment Company

(d) whether the Group has more than one CIC as part of the Group, if yes, indicate the number of CICs which are part of the

No, the Group has no CIC

(xvii) whether the company has incurred cash losses in the financial year and in the immediately preceding financial year, if so, state the amount of cash losses;

Yes, the Company has incurred cash losses of Rs. 10.82 lacs in the financial year. The Company incurred cash loss of Rs.27.31 lacs in the immediately preceding financial year also.

(xviii whether there has been any resignation of the statutory auditors during the year, if so, ) whether the auditor has taken into consideration the issues, objections or concerns raised by the outgoing auditors;

Yes, statutory auditors have resigned during the year as their validity of Peer Review Certificate had expired and renewal was likely to take some time.

(xix) on the basis of the financial ratios, ageing and expected dates of realisationof financial assets and payment of financial liabilities, other information accompanying the financial statements, the auditors knowledge of the Board of Directors and management plans, whether the auditor is of the opinion that no material uncertainty exists as on the date of the audit report that company is capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date;

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, our knowledge of the Board of Directors and management plans, we are of the opinion that the Company does not have adequate means to repay its secured loans and interest thereon. However, 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 the Company is not capable of meeting its liabilities of trade payables & provisions existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.

(xx) (a) whether, in respect of other than ongoing projects, the company has transferred

unspent amount to a Fund specified in Schedule VII to the Companies Act within a period of six months of the expiry of the financial year in compliance with second proviso to sub-section (5) of section 135 of the said Act;

The provisions for Corporate Social Responsibility are not applicable to the Company.

(b) whether any amount remaining unspent under sub-section (5) of section 135 of the Companies Act, pursuant to any ongoing project, has been transferred to special account in compliance with the provision of sub- section (6) of section 135 of the said Act;

The provisions for Corporate Social Responsibility are not applicable to the Company.

(xxi) whether there have been any qualifications or adverse remarks by the respective auditors in the Companies (Auditors Report) Order (CARO) reports of the companies included in the consolidated financial statements,if yes, indicate the details of the companies and the paragraph numbers of the CARO report containing the qualifications or adverse remarks.

y The company does not have subsidiaries, associates and joint ventures.

For SONIJHAWAR & CO. CHARTERED ACCOUNTANTS

	Sd/-
Place : : Surat.	SATYANARAIN SONI
Date : : 28-05-2025	PARTNER M.No. : 071689 FRN. : 0110386W UDIN : 25071689BMHUVJ3156

Annexure ‘B to the Independent Auditors Report -

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

Opinion

We have audited the internal financial controls over financial reporting of PRASHANT INDIA LIMITED as of 31 March 2025 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

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 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.

Managements Responsibility for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company, 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 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 over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial 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 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 audit 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 authorisations of management and directors of the company; and

3. provide reasonable assurance regarding prevention or timely detection of unauthorised 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.

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 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 SONIJHAWAR & CO. CHARTERED ACCOUNTANTS

Place : Surat.	Sd /- SATYANARAIN SONI
Date : 28-05-2025	PARTNER
	M.No. : 071689
	FRN. : 0110386W
	UDIN :
	25071689BMHUVJ3156