SC Agrotech Ltd Auditor Reports

To,

The Members /Shareholders,

M/s SCAgroTech Limited Delhi,

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of M/s. SC Agrotech Limited Much comprise the Balance Sheet as at 3T^r March, 2024, the Profit & Loss Account and Cash Flow Statement for the year ending 31.03.2024 and a summaiy of significant accounting policies and other explanatory information. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

OPINION

BASIS OF OPINION

We conducted our audit in accordance with the standards on auditing 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 Compaity in accordance with the code of ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are rele\ant to our audit of the financial statements under the prod si on s of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the code of ethics. We belie\ e that the audit eddence we have obtained is sufficient and appropriate to prodde a basis for our opinion.

MATERIAL UNCERTAINTY RELATED TO GOING CONCERN (INCL UDE ONLY IS .APPLICABLE)

The Company is incoiporated in 28.11.1990.

As per the Financial Statements & review of records and ed deuce, it seems that company have enough finds and assets as compared to its liabilities. These factors do not make any doubt on uncertainty of company as a going concern

KEY A UDITMA TIERS

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 peiiod. 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.

Reporting of key audit matters as per Si 701, Key Audit Matters are not applicable to the Company as it is an unlisted company.

INFORMATION OTHER THAN THE FINANCIAL STATEMENTS .AND AUDITORSREPORT THEREON

The Companys board of directors are responsible for the preparation of the other infonriation. The other infonriation comprises the information included in the Boards Repoil including Annexures to Boards Repoil, Business Responsibility Report but does not include the financial statements and our auditors repoil 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 infonriation and, in doing so, consider whether the other infonriation 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 infonriation, we are required to repoil that fact. However, we have nothing to report in this regard

MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Companys Board of Directors are responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the Company> in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility> also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true andfair viewand are free from material misstatement, whether due to fraud or error.

A EDITORS RESPONSIBILITY

Our responsibility; is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. 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. In making those risk assessments, the auditor considers internal financial control relevant to the Companys preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial control system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company- s Directors, as well as evaluating the overall presentation of the financial statements.

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

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 the paragraph 3 and 4 of the Order, to the extent applicable.

2- As required by Section 143(3) of the Act, we report that:

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

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears fiom our examination of those books and proper returns adequate for the purpose of this audit has been received fiom branches not visited by us.

(c) The Balance Sheet, the Statement of Profit and Loss and cash flow statement dealt with by this Report are in agreement with the

books of account.

(d) In our opinion, the aforesaidfinancial 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 fiom the directors as on March 31, 2024 and taken on record by the Board

of Directors, none of the directors is disqualified as on March 32, 2024, fiom being appointed as a director in terms of Section 164(2) of the Act.

(g) 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:

(Annexure Refared to in paragraph (1) of “Report on Other Legal and Regulatory Requiiements “of the Independent Auditors Repon of even date to the members ofM^s. SC Agrotech Limited on the financial statements for the year ended March 31, 2024.)

(1) fa) (A) The Company has not maintained proper lecords showing full particulars, including quantitative details and situation of Plant and Equipment.

(B) The Company has not maintained proper recoids showing fill! particular of tangible assets.

(h) The Company doesn t have any Plant and Equipment so the phy sically verification not applicable to the company.

(c) Accoiding to the information and explanation given to us, the title deeds of the imnovable pwperties (other than properties where the company is the lessee and the lease agreements aie duly executed in fawr of the lessee) are held in the name of the company.

(d) The Company has not revalued its Pmperty, Plant and Equipment (including Right of Use assets) or intangible assets or both dining the year. Accordingly. Reporting under Clause 3(i)(d) of the order is not applicable to the company.

(2) Accoiding to the information and explanation given to us, no proceedings have been initiated or are pending against the company for holding any ben ami piopeity under the Benami Transactions (Pwhibition) Act, 19SS (45 of 19S8) and ivies made theieunder duiing the year.

(H) (a) The management has conducted physical veiification of inventoiy at reasonable inteivals during theyear, in our opinion, the coverage and pwcedure of such veiification by the management is appiopriate. As infoimed to us, any discrepancies of 10% or more in the aggregate for each class of inventoiy were not noticed on such venfication except this company has found some inventoiy in damage condition so they booked abnonnal loss ofRs.l 0,96,742.27/-.

(Hi) During the year the company has not made investments in, provided any guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured, to companies, films, Limited Liability Partnerships or any otherparties:

(b) According to the information and explanation given to us, the investments made are not prejudicial to the companys interest;

(c) schedule of repayment of the principal amount and the payment of the inteiest have not been stipulated and hence we are unable to comment as to whether receipt of the principal amount and the inteiest is regular;

(d) According to the information and explanation given to us, no amount is overdue in these respect;

(iv) Accoiding to the information and explanation given to us, the company has no loans, investments, guarantees or security1 where provisions of section 185 and 186 of the Companies Act, 2013 are to be complied with.

(v) The Company has not accepted any deposits or amounts which are deemed to be deposits under the directives of the Reseive Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the ivies famed theieunder, where applicable. Accordingly, the provisions of clause 3(v) of the Ordei are not applicable.

(vii) (a) The Company is regular in depositing undisputed statutory dues including 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 statutoiy dues, as applicable, -with the appwpriate authorities. Further, no undisputed amounts payable in respect thereof were outstanding at the year-end fora period of more than six monthsfrom the date they became payable.

(b) There are no dues in respect of Goods and Services Tax, provident fund, employees state insurance, income-tax, sales-tax, seivice tax, duty of customs, duty of excise, value added tax, cess and any other statutoiy dues that have not been deposited with the appropriate authorities on account of any dispute.

(viii) According to the information and explanation given to us, company has 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) hi our opinion, the company has not defaulted in repayment of loans or other boirowings or in the payment of interest thereon to any lenderduring the year;

(h) Company⁷ is not declared willful defaulter by any bank or financial institution or other lender;

(c) According to the information and explanation given to us we repoit that no tain loans clause Mere applied tarn loans weie appliedfor thepuipose for which the loans were obtained;

(d) According to the information and explanation given to us, We report that no funds funds raised on short tern basis have not been utilised for long tarn purposes;

(2) According to the information and explanation given to us, the company has not takai any⁷funds fiom any entity⁷ or person on account of or to meet the obligations of its subsidiaries, associates or jointventures;

(f) According to the information and explanation given to us, the company⁷ has not wised loans during the year on the pledge of securities held in its subsidiaries, pint ventures or associate companies;

(X) fa) The Company has not wised moneys by way of initial public offer or further public offer (includingdebt instruments) during the year;

(b) According to the information and explanation given to us, the Company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally⁷ convertible) during the year

(x i) (a) According to the information and explanation given to us, any fraud by⁷ the company or any fraud on the company⁷ has not been noticed or reported during the year;

(b) According to the information and explanation given to us, no report under sub-section (12) of section 143 of the Companies Act has been filed by the auditors in Form ADT-4 as prescr ibed under rule 13 of Companies f Audit and Auditors) Rules, 2014 with the Central Government;

(c) According to the information and explanation given to us, no whistle-blower complaints, received during the year by the company;

(xii) Company is not a Nidlri company⁷, accordingly provisions of the Clause 3fxii) of the Order is not applicable to the company:

(xiv) According to the information and explanations given to us, the company has not internal audit system commensurate with the size and nature of its business

(Xv) According to the information and explanations given to us, we are of the opinion that the company has not entered into any non-cash transactions with directors or persons connected with him and accordingly, the provisions of clause 3(xv) of the Order is not applicable.

(XVi) According to the information and explanations given to us, we are of the opinion that the company is not required to be

registered under section 45-LA. of the Reserve Bank of India Act, 1934 and the company is not a Core Investment Company (CIC) as defined in the regulations made by- the Reserve Bank of India, accordingly the provisions of clause Sfxvi) of the Older are not applicable;

(xvii) According to the infonnation and explanations given to us and based on the audit procedures conducted we are of opinion that the company has not incuried any cash losses in the financial year and the immediately preceding financial year;

(xviH) There has been no resignation of the statutory auditors during the year and accordingly the provisions of clause 3(xviii) of the Older is not applicable;

(xix) On the basis of the financial latios, ageing and expected dates of realization offinancial assets and payment offinancial liabilities, other infonnation accompanying the financial statements, our knowledge of the Board ofDiiectois and management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any mater ial uncertainty exists as on the date of the audit report indicating that company is incapable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a peiiod of one year fiom 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 repon and we neither give any guarantee nor any assurance that all liabilities falling due within a peiiod of one year fiom the balance sheet date, will get dischaiged by- the company as and when they fall due.

(xx) The provisions of Section 135 towards coiporate social responsibility are not applicable on the company. Accoidingh-, the provisions of clause 3(xx) of the Order is not applicable.

(xxi) The company is not required to prepaie consolidated Financial Statement hence reporting under clause (xxi) is not applicable. Accordingly, no comment has been included in respect of said clause undei this report.

Atwexure B to the Auditors Report

We have audited the internal financial controls over financial reporting of M/s SC Agrotech Limited as of 31 March 2024 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

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 (TCM). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the orderly and efficient conduct of its business, including adherence to the Companys policies, the safeguarding of its assets, the prevention and detection offrauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial infonnation, as required under the Companies Act, 2013.

Auditors⁹ Responsibility

assurance about whether adequate internal financial controls over financial reporting were 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 ha\>e obtained is sufficient and appropriate to proride a basis for our audit opinion on the Companys internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

Inherent Limitations of Internal Financial Controls Over Financial Reporting

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 2024, 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 Crier Financial Reporting issued by the Institute of Chari ered Accountants of India.