Supreme Engineering Ltd Auditor Reports

INDEPENDENT AUDITORS REPORT

To the Members of SUPREME ENGINEERING LIMITED (Formerly Known as Supreme Heatreaters Private Limited)

Report on the Audit of the Standalone Ind AS Financial Statements

We have audited the accompanying Ind AS Financial Statement of Supreme Engineering Limited (Formerly known as Supreme Heatreaters Private Limited) ("the Company"), which comprise the Balance Sheet as at March 31, 2025. the Statement of Profit and Loss (including the Statement of Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended and notes to the Ind AS Financial Statement, including a summary of significant accounting policies and other explanatory information.

Qualified Opinion

We have conducted our audit of the Ind AS Financial Statement in accordance with the Standards on Auditing ("SAs") as specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the ‘Auditors Responsibilities for the Audit of the Ind AS Financial Statement 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 Ind AS Financial Statement under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS Financial Statement. We believe that the audit evidence obtained is sufficient and appropriate to provide a basis for our Qualified Opinion.

Basis for Qualified Opinion (Matters)

1. Non-Compliance with Laws & Regulations:

a. The company is required to file Audit report under income tax act 1961 and file income tax return under the same act: however, the same has not filed for the two financial years i.e. FY 2019-20, FY 2020-21

b. The company has not paid/short paid the statutory dues such as TDS, PF, Professional Tax etc., that have become overdue and remained unpaid. Interest, penalties in respect of the same remained unascertained and unaccounted for.

c. The Company is liable to appointment Company Secretary as per section 203 of Companies Act 2013 read with rules thereof. However, currently there is no Company Secretary on board of the Company and accordingly the Financials are not being signed by all the Key Managerial Persons as required under section 134(1) of Companies Act 2013.

d. The Secretarial Report of Independent Company Secretary has highlighted various delays and non-compliances, the effect of the same is presented as a part of Contingent Liability.

2. The Company has long-outstanding trade receivables, trade payables, recoverable advances, and borrowings, including cash credit accounts, which have remained unsettled for a substantial period. The consequential impact, if any, on the financial statements remains unascertained since very few ledger confirmations has been provided. However, the Management on conservative basis and as per IND AS has provided for Expected Credit Losses on such Assets.

3. The classification of trade payables between MSME and other parties as at March 31, 2025, could not be verified due to non-availability of adequate records and documentary evidence.

4. The inventory is valued and verified by the management. We have not conducted physical verification of inventory as at March 31, 2025, due to our late appointment as statutory auditors of the Company. We also faced a further limitation due to non-availability of the stock movement register or supporting documentation to cross-verify the accuracy of valuation. Accordingly, we are unable to comment on the correctness of the quantities and valuation of inventory as reported by the management.

5. The Company is required to get cost audit conducted as per the requirement of section 148 of the Companies Act, 2013. However, the same has not been conducted from the financial year 2020-21 and onwards.

6. The Company is required to conduct an internal audit under the provisions of the Companies Act, 2013. However, no internal audit has been carried out for the previous financial year. Further, no records or evidence were provided to substantiate whether internal audits were conducted for years prior to the previous year.

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matters described in the Basis for Qualified Opinion paragraph above, the accompanying Statement:

• presents financial results in accordance with the recognition and measurement principles laid down in the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act, read with relevant rules issued thereunder; and

• gives a true and fair view, in conformity with the accounting principles generally accepted in India, of the net loss, total comprehensive income/(loss), and other financial information of the Company for the quarter and year ended March 31, 2025.

EMPHASIS OF MATTER PARA

We draw your attention to the notes mentioned in the Results declared by the company as follows:

1. The Company had a secured loan account which was classified as NPA on August 19, 2021, and has since stopped repayment of principal and interest. The Company has been incurring losses continuously and incurred a loss for the quarter ended March 31, 2025. The Companys current liabilities exceed its total assets, resulting in negative net worth. These conditions indicate the existence of a material uncertainty that may cast significant doubt on the Companys ability to continue as a going concern. However, management has prepared the financial results on a going concern basis, as they are in the process of loan restructuring and exploring fund infusion, preferential allotment, and asset monetization options. The Company has deposited a preliminary deposit of 10% with the bankers and submitted an application for One Time Settlement Plan with the bank. The appropriateness of the going concern assumption depends upon successful implementation of these plans, which are yet to be concluded.

2. The company has not provided accrued interest, charges, penalties or any other charges from the date of being classified as Non-performing Assets and the impact of the same on the financial results and statement remains unaccounted for.

3. The Company has ongoing litigations before the Honble Supreme Court and other forums under Income Tax and GST laws, the impact of which is contingent upon the outcome of such proceedings.

Information Other than the financial statements and Auditors Report Thereon

The Companys Board of Directors is responsible for the other information. The other information comprises the Board of Directors Report, but does not include the Ind AS Financial Statement and our Auditors report thereon.

Our opinion on the Ind AS Financial Statement does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Ind AS Financial Statement, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the Ind AS Financial Statement or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Ind AS Financial Statement

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 Ind AS 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 accounting principles generally accepted in India, including the Indian Accounting Standards ("Ind AS") prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.

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 the 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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Ind AS 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 charged with governance are also responsible for overseeing the Companys financial reporting process.

Auditors Responsibilities for the Audit of the Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Ind AS 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 but it is not a guarantee that an audit conducted in accordance with the Standards on Auditing (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 Ind AS financial statements.

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

• Identify and assess the risks of material misstatement of the Ind AS 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 Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements 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 Ind AS 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 Ind AS financial statements, including the disclosures, and whether the Ind AS 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 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 Ind AS 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 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 in terms of Section 143(11) of the Act, we give in "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Companies Act, 2013, 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) Except for matters stated in the Qualification Para, 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) Except for matters stated in the Qualification Para, The Balance Sheet, the Statement of Profit and Loss (including the Statement of Other Comprehensive Income), the Statement of Cash Flows, and the Statement of Changes in Equity dealt with by this report are in agreement with the books of account.

d) Except for matters stated in the Qualification Para, In our opinion, the aforesaid Ind AS Financial Statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. However, since the Company has been classified as a NonPerforming Asset (NPA), Ind AS 23 on Borrowing Costs has not been applied.

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

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

g) In our opinion, the managerial remuneration for the year ended 31st March 2025 has been provided by the Company to its directors in accordance with the provisions of Section 197 read with Schedule V of the Act.

h) With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i) The Company does not have any pending litigations which would impact its financial position.

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

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

iv) (a) The management has represented that, to the best of its knowledge and belief, other than as disclosed in the notes to the financial statements, no funds have been advanced, loaned, or invested (either from borrowed funds, share premium, or any other source 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, 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 financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Parties ("Ultimate Beneficiaries") or provide any guarantee, security, or the like on behalf of the Ultimate Beneficiaries.

(c) Based on the audit procedures performed that were considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clauses (a) and (b) above contain any material misstatement.

v) The Company has not declared or paid any dividend during the year and has not proposed a final dividend for the year.

vi) Based on the audit tests and procedures performed in respect of the financial year ended 31st March 2025, the Company has maintained its books of account using Tally Edit Log (Gold) accounting software. The audit trail feature, however, had not been enabled at the database level in the said software to keep a log of any direct data changes, and therefore, it did not operate throughout the year.

For RUSHABH DAVDA & ASSOCIATES

Chartered Accountants

(Firms Registration No. 156559W)

CA. RUSHABH K DAVDA

Proprietor

Membership No: 188053

Peer Review No: 016545

Place: Mumbai

Date: 29/10/2025

UDIN: 25188053BMJHPH4268

ANNEXURE "A" REPORT UNDER THE COMPANIES (AUDITORSS REPORT) ORDER, 2020

Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements section of our report of even date on the accounts of Supreme Engineering Limited (Formerly known as Supreme Heatreaters Private Limited) (the "Company") for the year ended March 31, 2025, in conjunction with our audit of the financial statements of the Company for the year ended on that date.

(i) According to the information & explanation given to us and on the basis of our examination of the records of the Company, in respect of property, plant & equipment and intangible assets:

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

(B) The Company has maintained proper records showing full particulars of Intangible assets.

(b) According to the information and explanation given to us and on the basis of our examination of the records of the company, the company has regular programme of physical verification of its Property, Plant and Equipment by which all property, plant and equipment are verified on regular interval. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) The title deeds of all the immovable properties (other than immovable 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

(d) According to information and explanation given to us and on the basis our examination of the records of the company, there are 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. Therefore, reporting under clause 3(i)(e) of the order is not applicable.

(ii) The inventory has been physically verified by the management during the year. Since, we were appointed after 31^st March 2025, we are unable to comment on the accuracy of the frequency of such verification is reasonable or not. The management has diminished inventory 2^nd time in last 3 years, however, we have not been provided with the movement of inventory.

(iii) According to information and explanation given to us and on the basis our examination of the records of the Company has made investments in Companies during the year. Further, the Company has not made investments in Firms, Limited Liability Partnerships or any other entities during the year. Further, the Company has not provided any guarantee or security or granted any advances in the nature of loans, secured or unsecured, to Companies, Firms, Limited Liability Partnerships or any other parties. In relation to the above, we report that:

(a) The Company has not provided any loans or advances in the nature of loan or stood guarantee or provided security to any other entity during the year. Hence reporting under clause 3(iii)(a) of the Order is not applicable.

(b) The Company has not made any investments neither provided any security during the year. Hence reporting under clause 3(iii)(b) of the Order is not applicable to that extent.

(c) The Company has not provided any loans or advances in the nature of loan during the year. Hence reporting under clause 3(iii)(c) of the Order is not applicable.

(d) The Company has not provided any loans or advances in the nature of loan or stood guarantee or provided security to any other entity during the year. Hence reporting under clause 3(iii)(d) of the Order is not applicable.

(e) The Company has not provided any loans or advances in the nature of loan during the year. Hence reporting under clause 3(iii)(e) of the Order is not applicable.

(f) The Company has not granted any loans or advances in the nature of loans during the year. Hence, reporting under clause 3(iii)(f) is not applicable.

(iv) According to information and explanation given to us and on the basis our examination of the records of the company, the company has not made any loans, investments, guarantees and security on which provisions of section 185 and 186 of the Companies Act 2013 are applicable. Therefore, the provisions of clause 3(iv) of the said Order are not applicable to the company.

(v) According to the information and explanation given to us, the Company has not accepted any deposits or amounts deemed to be deposits during the year and hence the directives issued by the Reserve Bank of India and the provisions of Section 73 to 76 or any other relevant provisions of the Act and the rules framed thereunder are not applicable to the Company.

(vi) According to the information and explanations provided by the management, cost records have been prescribed under section 148(1) of the Companies Act, 2013 in respect of products of the Company. Those records have been properly maintained by the company. However, cost audit has not been conducted from FY 2020-21 onwards.

(vii) (a) According to the records of the company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income-tax, Sales- tax, Service Tax, Goods and Service Tax, Custom Duty, Excise Duty, Cess to the extent applicable and any other statutory dues have not been regularly deposited with the appropriate authorities. According to the information and explanations given to us, there are following outstanding statutory dues as on 31 of March, 2025 for a period of more than six months from the date they became payable.

Particulars	Amount (in Rs.)
Provident Fund	56,42,870
ESIC	1,60,398
Profession Tax	3,33,174
Income Tax	3,17,84,285
Dividend Distribution Tax	25,44,191
TDS & TCS	1,30,05,158
GST	44,54,197
Total	4,62,24,273

(b) According to the information and explanations given to us, there are the following amounts payable in respect of income tax, service tax, goods and services tax, sales tax, customs duty and excise duty which have not been deposited on account of any disputes.

The Indirect Tax Disputes Pending with Departments are as under

Sr No	Financial Year	Act	Amount	Payment Made	Forum (Where it is disputed)
1	2008-09	MVAT	0	0	Commissioner Appeals
2	2008-09	CST	16,43,510	3,49,095	Commissioner Appeals
3	2009-10	MVAT	17,96,072	0	Commissioner Appeals
4	2009-10	CST	81,29,812	0	Commissioner Appeals
5	2013-14	MVAT	65,29,979	3,31,980	Appeal dismissed need to file appeal in Tribunal
6	2013-14	CST	54,69,920	4,29,462	Appeal dismissed need to file appeal in Tribunal
7	2014-15	MVAT	97,28,909	4,63,044	Appeal dismissed need to file appeal in Tribunal
8	2014-15	CST	77,67,098	11,99,801	Appeal dismissed need to file appeal in Tribunal
9	2016-17	MVAT	49,86,142	0	Appeal need to filed
10	2016-17	CST	1,37,339	0	Appeal need to filed
11	2018-19	GST- Khopoli	5,71,17,794	0	Rectification of the order filed with the department
12	2017-18	GST- Khopoli	5,52,000	0	Commissioner Appeals
13	2021-22	GST- Khopoli	15,69,128	0	Appeal Dismissed, Annexure I filed for appeal in Tribunal

The Direct Tax Disputes Pending with Departments are as under

Sr	AY	Demand section	Demand amt	Interest thereon	Totals
1	2017-18	1431a	1,243,017	1,337,488	2,580,505
2	2009-10	1431a	3,160	-	3,160
3	2008-09	143(1)	27,627	50,784	78,411
4	2018-19	143(3)	90,861,960	45,430,950	136,292,910
5	2009-10	115 WE	-	254,748	254,748
6	2019-20	1431a	30,161,290	17,493,496	47,654,786
7	2019-20	115O	2,902,860	1,683,624	4,586,484
Totals			125,199,914	66,251,090	191,451,004

(x) (a) The details of unutilized IPO proceed as on 31/03/2025 are as follows:

Particulars	Proposed Utilization	Actual Utilization	Unutilized Amount
Part Finance the working Capital Requirement	7,00,00,000/-	7,00,00,000/-	-
Part Repayment of High-cost Debts	4,67,11,977/-	4,67,11,977/-	-
Capital Expenditure	95,07,197/-	43,18,177/-	51,89,020/-
General Corporate Purpose	3,00,00,000/-	3,00,00,000/-	-
IPO Expenses	2,13,33,125/-	2,13,33,125/-	-
Total	17,75,52,299/-	17,75,52,299/-	51,89,020/-

The unutilized IPO proceeds has been considered same as previous year. We have not been provided with any additional information in this regard during the year.

(b) During the year, the company has not raised funds by way of further preferential issue and hence, reporting under clause 3(x)(b) is not applicable to that extent.

(xi) (a) Based on examination of the books and records of the company and according to the information and explanation given to us, no fraud by the company or on the company has been noticed or reported during the course of audit.

(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 prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2021 with the Central Government

(c) To the best of our knowledge, we have taken into consideration there is no whistle-blower complaints received by the Company during the year.

(xii) According to information and explanation given to us, the company is not a Nidhi Company. Accordingly, paragraph 3(xii) of Order is not applicable.

(xiii) According to the information and explanations given to us and based on our examination of the record of the Company, transactions with related parties are in compliance with the provisions of section 177 and 188 of the Companies Act where applicable and the details have been disclosed in the financial statements etc. as required by the applicable accounting standards.

(xiv) (a) In our opinion, the Company does not have internal audit system commensurate with the size and the nature of its business.

(b) According to the information and explanations given to us and based on our examination of the records of the Company, provisions of section 138 of the Companies Act, 2013 is applicable to the company. However, no internal auditor has been appointed during the year under audit, and consequently, no internal audit reports have been provided to us for our review.

(xv) According to the information and explanations given to us and based on our examination of the record of the Company, the company has not entered into any non-cash transactions with directors or persons connected with him and hence, provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.

(xvi) a) The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 and hence, reporting under clause 3(xvi)(a) of the order is not applicable.

(b) The company has not conducted any non-banking financial or housing finance activities during the year and hence, the company is not required to obtain certificate of registration from the Reserve Bank of India as per the Reserve Bank of India Act, 1934. Accordingly, reporting under clause 3(xvi)(c) of the order is not applicable.

(c) The company is not a Core Investment Company as defined in the regulations made by the Reserve Bank of India and hence, reporting under clause 3(xvi)(c) of the order is not applicable.

(d) According to the information and explanations provided to us during the course of audit, the Group does not have any CIC. Accordingly, the requirements of clause 3(xvi)(d) are not applicable.

(xvii) The company has incurred cash loss in current financial year as well in immediately preceding financial year.

(xviii) During the year, there were two instances of resignation of statutory auditors. Initially, M/s. S. R. Dhariwal & Co., the statutory auditors who had audited the financial statements for the year ended 31st March 2024, tendered their resignation. Subsequently, M/s. Rachna Patel & Co. were appointed as statutory auditors and carried out the limited review for Quarter 2 and Quarter 3 of the current financial year. Thereafter, they also resigned. As informed, the reasons for resignation were primarily due to pre-occupancy. We have not received any objections, issues, or concerns raised by the outgoing auditors in connection with their resignations.

(xix) 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 and our knowledge of the Board of Directors and Management plans and based on our examination of the evidence supporting the assumptions, it has come to our attention, which causes us to believe that material uncertainty exists as on the date of the audit report indicating that Company is not capable of meeting its liabilities existing at the date of balance sheet. 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 year of one year from the balance sheet date, will get discharged by the Company as and when they fall due.

(xx) According to the information and explanations given to us and based on our examination of the relevant records of the Company, the provisions of Section 135 of the Companies Act, 2013 relating to Corporate Social Responsibility are applicable to the Company. However, the Company has not spent the prescribed amount towards CSR activities during the year, nor has it transferred the unspent amount to a Fund specified in Schedule VII or to a separate CSR Unspent Account as required under sub-sections (5) and (6) of Section 135 of the Act.

For RUSHABH DAVDA & ASSOCIATES

Chartered Accountants

(Firms Registration No. 156559W)

CA. RUSHABH K DAVDA

Proprietor

Membership No: 188053

Peer Review No: 016545

Place: Mumbai

Date: 29/10/2025

UDIN: 25188053BMJHPH4268

Annexure "B" to the Independent Auditors Report

(Referred to in paragraph (f) under "Report on Other Legal and Regulatory Requirements" of our report)

Report on the Internal Financial Controls Over Financial Reporting 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 Supreme Engineering Limited (Formerly known as Supreme Heatreaters Private Limited) ("the Company") as of 31st March 2025 in conjunction with our audit of the Ind AS 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 ("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 the Companys business, including adherence to the 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.

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 prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were established and maintained and whether such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls includes 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.

Meaning of Internal Financial Controls Over Financial Reporting

A Companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Companys internal financial control over financial reporting includes those policies and procedures that:

(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and

(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Companys assets that could have a material effect on the financial statements.

Qualified Opinion

According to the information and explanations given to us and based on our audit, the Company does not have an adequate internal financial control system over financial reporting commensurate with the size and nature of its business. The Company has also not appointed an internal auditor as required under Section 138 of the Companies Act, 2013. In the absence of a proper internal audit system and documented internal control procedures, we were unable to obtain sufficient and appropriate audit evidence to determine whether the Company had adequate internal financial controls over financial reporting and whether such controls were operating effectively as at 31st March 2025.

Accordingly, in our opinion, the Company did not maintain an adequate and effective internal financial control system over financial reporting as required under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013.

The Company has used Tally Prime, an accounting software, for maintaining its books of account; however, the feature of recording audit trail (edit log) at the database level was not enabled during the year, and hence the system did not maintain logs of direct data modifications. The Company does not have formal written Standard Operating Manuals (SOPs) or documented procedures in place to ensure consistency, efficacy, and effectiveness of its internal financial controls.

For RUSHABH DAVDA & ASSOCIATES

Chartered Accountants

(Firms Registration No. 156559W)

CA. RUSHABH K DAVDA

Proprietor

Membership No: 188053

Peer Review No: 016545

Place: Mumbai

Date: 29/10/2025

UDIN: 25188053BMJHPH4268.