Shakti Press Ltd Auditor Reports

To the members of "SHAKTI PRESS LIMITED"

CIN: L22219MH1993PLC071882

Report on the Audit of the Standalone Financial Statements of Shakti Press Limited Opinion

We have audited the accompanying standalone financial statements of SHAKTI PRESS LIMITED ("the Company"], which comprise the Balance Sheet as at 31/03/2024, the Statement of Profit and Loss, Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of the 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, except for the matters described in the Basis of Qualified Opinion, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024, and profit, and its cash flows for the year ended on that date.

Basis for Qualified 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. Basis of Qualified Opinion are mentioned in the Emphasis of Matter paragraph.

Emphasis of Matter

- 1. Long outstanding Share Application Money of Rs. 53,13,000 is still not refunded as on

31/03/2024.

2. Banks Accounts & Cash;

a. Arvind Bank Cash Credit A/c;

• Cash deposited into the account is Rs. 32.94 Lacs during the year.

• Cash withdrawn from account is Rs. 112.28 Lacs during the year.

b. ICICI Bank A/c:

• Cash deposited into the account is Rs. 201.04 Lacs during the year.

• Cash withdrawn from account is Rs. 10.81 Lacs during the year.

c. Cash;

• Cash collected from Debtors is Rs. 124.02 Lacs.

d. No satisfactory explanation has been provided for the above.

3. Physical verification of stock could not be carried out and we had to rely on the stock figures as given by the management.

4. There are various long outstanding balances both in debit and credit side under various head such as Sundry Debtors, Creditors, Loans and Advances. They are lying here for ^

years without any ledger confirmation. They should be written off or rectified in accordance with the generally accepted accounting policies.

5. The management has not been recognizing deferred tax asset/liability, it seems they have not been following the provisions of Ind AS 12.

6. Debtors (30 Parties] of Rs. 1,55,75,872 are more than 3 years old. The same being time barred should have been written off.

7. Depreciation is calculated on aggregate basis as the company has not maintained the component wise records of fixed assets. This is not in accordance with Ind AS 16 "Property Plant and Equipment".

8. Internal auditor for the F.Y. 2023-24 has not been appointed by the company as required under section 138 of the Companies Act, 2013.

9. Managerial remuneration has not been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act

10. GST RCM have not been paid on some required payments. GST credit as per portal is more than that is recorded in the books. It has not been reconciled by the Management

11. The company has not held its Annual General Meeting for last 4 years for financial years 2019-20 till 2023-24. Hence, the Financial Statements of the company have not received the approval of the shareholders. In such situation, for carry forward of opening balance we have relied on audited financial statements of last year.

12. Salary expense is not booked properly. PF, ESIC payments are done more than the liability as per salary recorded. No satisfactory explanation is provided for the same.

13. Fair Value of Kedia Distilleries Ltd.s shares is not known and not been valued by the management As per the MCA Portal the company is under liquidation.

Responsibility 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 standalone financial statements that give a true and fair view of the financial position, financial performance, (changes in equity] and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the accounting Standards specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate implementation and maintenance of 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 over seeing the companys financial reporting process.

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 amount the adequacy of the internal financial control system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and operating effectiveness of internal control based on the assessed risk. The procedures selected depend upon 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.

Report on Other Legal and Regulatory Requirements

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, to the extent applicable.

As required by Section 143(3] of the Act, we report that:

a] We have sought but not obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit

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

c] The Balance Sheet, the Statement of Profit and Loss, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the books of account;

d] In our opinion, the aforesaid financial statements do comply with the Ind AS specified under Section 133 of the Act.

e] There was no instance of Director Disqualification under Section 164 (2] of the Act, as on 31.03.2024.

f] This report includes report relating to internal financial controls as required u/s 143(3](i] pursuant to Notification No. GSR 583(E] dated 13.06.2017 issued by MCA.

g] With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, such reporting is included in Annexure A.

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, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed pending litigations in the annexure to this report

and financial statements. ¦-.

ii. The Company did not have any long-term contracts including derivative

contracts.

components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issues by the Institute of Chartered Accountants of India.

"Annexure A" to the Independent Auditors Report of even date on the Standalone Financial Statements of "Shakti Press Limited" for year ended on March 31, 2024

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls over financial reporting of SHAKTI PRESS LIMITED ( The Company") as of March 31, 2024 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 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. 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.

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 company s 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.

Opinion

In our opinion, the Company does not have, in all material respects, adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were not operating effectively as at March 31, 2024, based on the internal control over financial reporting criteria established by the Company considering the essential

iii. There has been no delay in transferring amounts, required to be transferred, the Investor Education and Protection Fund by the Company during the year ended March 31, 2024.

iv. (a] The management has represented that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, 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, other than as disclosed in the notes to the accounts, 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 have been considered reasonable and appropriate in the circumstances, we are unable to comment that the representations under sub-clause (i] and (ii] of Rule ll(e], as provided under (a] and (b] above, contain any material mis-statement.

v. No dividend has been declared or paid during the year by the company.

vi. The company has not used accounting software for maintaining its books of

account which has a feature of recording audit trail (edit log] facility.

"Annexure B" to the Independent Auditors Report of even date on the Standalone Financial Statements of "Shakti Press Limited" for year ended on March 31,2024

Report on 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

The Annexure referred to in our Independent Auditors Report to the members of the Company on the standalone financial statements for the year ended 31 March 2023, we report that:

i. a) The company has not maintained (Component wise) proper records of fixed asset, showing full particulars including quantitative details and situation of fixed assets. Hence, they charge depreciation on fixed asset on aggregate value of asset.

b) As explanation given to us by management, fixed assets have been physically verified by the management at reasonable intervals; No material discrepancies were noticed on such verification.

c) Records of fixed asset are not given to us for examination and also Title deeds of companys asset are not provided to us, hence, we are unable to comment, whether such Title deeds are in the name of company or not. However, a particular building is included in the assets of the company. Such building was constructed by the company only, however, the land on which such building has been constructed does not belong to the company. The land belongs to the director Shri Shantanu Sharma.

d) The Company has not revalued any of its property, plant and equipment (including right of-use assets) and intangible assets during the year.

e) No proceedings have been initiated during the year or are pending against the Company as at March 31, 2023 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.

ii. a) Physical verification of inventory, as informed to us, has been conducted at reasonable intervals by the management only. However, such PV reports were not provided to us. Due to improper inventory records, we were unable to conduct physical stock verification.

b) The Company has been sanctioned working capital limits in excess of Rs. 5 Crores from Arvind Sahakari Bank Ltd. Stock statements submitted with the bank are not provided to us. Hence, we are unable to comment on the agreement of such statements with the books of accounts.

iii. The company has not granted unsecured loan to companies, firms or other parties covered in the register- maintained u/s 189 of the companies Act-2013.

iv. During the year company has not advanced any amount to its director, which is not in compliance with section 185 of companies Act, 2013. But company complied with section 186 of the Act in respect of, making investments and providing, loan, guarantees and securities, as applicable.

v. The company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Act and the rules

framed thereunder are not applicable. No order has been passed by company Law Board on National company Law Tribunal or Reserve Bank of India or any court or any other Tribunal.

vi. The maintenance of cost records has not been specified by the Central Government under section 148(1] of the Companies Act, 2 013 for the business activities carried out by the Company. Thus, reporting under clause 3(vi] of the order is not applicable to the Company.

vii. a] The company is not regular in depositing the undisputed statutory dues including PF, ESIC, Income Tax, GST and other statutory dues applicable to the Company with the appropriate authorities. There are some cases where TDS has been deducted but deposited after due date. For the period of April 23 - March 24 the TDS amount of Rs. 7,28,748 was not yet deposited.

Following are the undisputed statutory dues were outstanding as at the last day of the financial year for a period of more than six months from the date they became payable: -

SN Statute	Amount	Financial Year
1 Income Tax Act, 1961	Rs. 62,870	2007-08
2 Income Tax Act, 1961	Rs. 1,26,250	2008-09
3 Income Tax Act, 1961	Rs. 13,930	2009-10
4 Income Tax Act, 1961	Rs. 1,820	2010-11
5 Income Tax Act, 1961	Rs. 1,300	2011-12
6 Income Tax Act, 1961	Rs. 20,670	2012-13
7 Income Tax Act, 1961	Rs. 2,540	2014-15
8 Income Tax Act, 1961	Rs. 1,830	2015-16
9 Income Tax Act, 1961	Rs. 1,780	2016-17
10 Income Tax Act, 1961	Rs. 2,220	2017-18
11 Income Tax Act, 1961	Rs. 750	2018-19
12 Income Tax Act, 1961	Rs. 43,530	2019-20
13 Income Tax Act, 1961	Rs. 7,780	2020-21
14 Income Tax Act, 1961	Rs. 3,340	2021-22
15 Income Tax Act, 1961	Rs. 11,230	2022-23
16 Professional tax	Rs. 1,28,925	2023-24 (incl Previous years]

b] There are following disputes with the revenue authorities regarding any duty or tax payable;

SN Statute	Amount	Financial Year	Status
1 Income Tax Act, 1961	Rs. 18,64,140	2015-16	Appeal filed with CIT
2 Income Tax Act, 1961	Rs. 28,070	2015-16	Pending With A.O.
3 Income Tax Act, 1961	Rs. 5,82,940	2018-19	Pending with A.O.

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 the Income Tax Act, 1961.

ix. The Company has not defaulted on any loans or borrowings from financial institutions and government or has not issued any debentures. However, company has obtained a cash credit limit of Rs. 7.95 Crores from Arvind Bank Ltd. and its outstanding balance as on 31.3.2024 is of Rs. 7.90 Crores.

x. The company has not raised any money by way of initial public offer or further public offer (including debt instruments] and term loans during the audit period. Hence this clause is not applicable.

xi. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or no material fraud on the Company by its officers or employees has been noticed or reported during the year.

xii. As per information and records available with us the company is not a Nidhi Company.

xiii. Company has not complied with provision of section 188 of companies Act 2013. Details of those

transactions are mentioned in Note 21 to the Balance Sheet

xiv. The Company has not appointed an Internal Auditor for the F.Y. 2023-24 as required by section 138 of the Companies Act, 2013.

xv. Apart from those mentioned in the notes to accounts, the company has not entered into any non-cash transactions with directors or persons connected with him and the provisions of section 192 of Companies Act, 2013 have been complied with.

xvi. The company is not required to be registered under section 45-IA of the Reserve Bank of India Act

xvii. Based on our examination, the company has not incurred cash losses in the financial year and in the

immediately preceding financial year.

xviii. There has been no resignation of the statutory auditors during the year. Accordingly, clause 3 (xviii) of the order is riot applicable.

xix. According to the information and explanations given to us and on the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial liabilities, our knowledge of the Board of 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 any material uncertainty exists as on the date of the audit report that company is not 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. 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) Based on our examination, the provision of section 135 is not applicable on the company. Accordingly, clauses 3(xx](a] and 3(xx](b] of the Order are not applicable.

(b) Based on our examination, the provision of section 135 is not applicable on the company. Accordingly, clauses 3(xx)(a] and 3(xx)(b) of the Order are not applicable.

xxi. The company is not required to prepare Consolidate financial statement hence this clause is not applicable.