Svarnim Trade Udyog Ltd Auditor Reports

Opinion: Audited financial statements comprising Balance Sheet as at 31st March, 2026, Statement of Profit and Loss (including Other Comprehensive Income), Cash Flow Statement, Statement of Changes in Equity for the period ended, and summary of significant accounting policies and other explanatory information. In our opinion, financial statements give true and fair view in conformity with Ind AS prescribed under Section 133 of the Act read with Companies (Indian Accounting Standards) Rules, 2015, of the state of affairs as at March 31, 2026, and loss and total comprehensive income, changes in equity and cash flows for the year ended on that date.

Basis for Opinion: Audit conducted in accordance with Standards on Auditing (SAs) specified under Section 143(10). Independent of Company in accordance with ICAI Code of Ethics and ethical requirements of Companies Act, 2013. Audit evidence sufficient and appropriate.

Key Audit Matters: No Key Audit Matters Reportable as per SA 701 issued by ICAI.

Information Other than the Financial Statements and Auditors Report Thereon: Board of Directors responsible for preparation of other information (MD&A, Boards Report including Annexures), which does not include financial statements and auditors report. Opinion on financial statements does not cover other information; no assurance conclusion expressed. Responsibility to read other information when available and consider material inconsistency with financial statements or knowledge obtained in audit; if material misstatement, communicate to those charged with governance.

Managements Responsibility for the Financial Statements: Board responsible for matters under Section 134(5) — preparation giving true and fair view in accordance with Ind AS; maintenance of adequate accounting records; safeguarding assets; preventing and detecting frauds and irregularities; selection and application of appropriate accounting policies; judgments and estimates reasonable and prudent; design, implementation and maintenance of adequate internal financial controls. Management responsible for assessing ability to continue as going concern, disclosing matters related to going concern, using going concern basis unless intends to liquidate or cease operations. Board also responsible for overseeing financial reporting process.

Auditors Responsibility: Objectives to obtain reasonable assurance about whether financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue auditors report including opinion. Reasonable assurance high level but not guarantee that audit conducted in accordance with SAs will always detect material misstatement. Misstatements considered material if individually or in aggregate could reasonably be expected to influence economic decisions of users.

As part of audit in accordance with SAs, exercise professional judgment and maintain professional skepticism. Procedures:

• Identify and assess risks of material misstatement, whether due to fraud or error; design and perform audit procedures responsive to those risks; obtain audit evidence sufficient and appropriate. Risk of not detecting material misstatement resulting from fraud higher than from error.
• Obtain understanding of internal control relevant to audit. Under Section 143(3)(i), also responsible for expressing opinion on whether company has adequate internal financial controls system and operating effectiveness.
• Evaluate appropriateness of accounting policies and reasonableness of accounting estimates and related disclosures.
• Conclude on appropriateness of managements use of going concern basis; based on audit evidence, whether material uncertainty exists related to events or conditions casting significant doubt on ability to continue as going concern. If material uncertainty exists, required to draw attention in auditors report to related disclosures, or if inadequate, modify opinion. Conclusions based on audit evidence up to date of auditors report; future events or conditions may cause Company to cease to continue as going concern.
• Evaluate overall presentation, structure and content of financial statements, including disclosures, and whether financial statements represent underlying transactions and events in manner achieving fair presentation.

Materiality: Magnitude of misstatements that individually or in aggregate makes it probable that economic decisions of reasonably knowledgeable user may be influenced. Consider quantitative materiality and qualitative factors in (i) planning scope of audit work and evaluating results; (ii) evaluating effect of identified misstatements.

Communicate with those charged with governance regarding planned scope and timing of audit and significant audit findings, including significant deficiencies in internal control. Provide statement of compliance with relevant ethical requirements regarding independence; communicate all relationships and other matters that may reasonably be thought to bear on independence, and related safeguards where applicable.

From matters communicated with those charged with governance, determine matters of most significance in audit (key audit matters). Describe in auditors report unless law/regulation precludes public disclosure or in extremely rare circumstances determines matter should not be communicated because adverse consequences reasonably expected to outweigh public interest benefits.

1. As required by Companies (Auditors Report) Order, 2020 ("the Order") issued by Central Government in terms of Section 143(11), statement on matters specified in paragraph 3 and 4 of Order given in "Annexure A".
2. As required under Section 143(3) of Companies Act, 2013:
   a. Obtained all information and explanations necessary for purposes of audit.
   b. Proper books of account as required by law kept.
   c. Balance Sheet and Statement of Profit and Loss including Other Comprehensive Income, Statement of Cash Flow and Statement of Changes of Equity agree with books of account.
   d. Financial Statements comply with Accounting Standards specified under Section 133 read with relevant rules.

Continuation of Section 143(3) report:
e. On basis of written representations received from directors as on March 31, 2026, taken on record by Board, none of directors disqualified as on March 31, 2026 from being appointed as director in terms of Section 164(2).
f. With respect to adequacy of internal financial controls over financial reporting and operating effectiveness, separate report in "Annexure B".
g. With respect to other matters under Section 197(16): remuneration paid to directors during year is in accordance with provisions of Section 197.
h. With respect to other matters under Rule 11 of Companies (Audit and Auditor) Rules, 2014:
(a) Company disclosed impact of pending litigations as at 31 March 2026 on financial position in financial statements — Refer Note (vii) of Annexure-A.
(b) Company did not have any long-term and derivative contracts as at March 31, 2026.
(c) No delay in transferring amounts required to be transferred to Investor Education and Protection Fund during year ended March 31, 2026.

Continuation of Rule 11 matters:
(d) Management has:
(i) Represented that no funds advanced or loaned or invested (from borrowed funds or share premium or any other sources) by Company to any other persons or entities, including foreign entities ("Intermediaries"), with understanding that Intermediary shall directly or indirectly lend or invest in other persons or entities identified ("Ultimate Beneficiaries") by or on behalf of Company or provide any guarantee, security or the like. (Note No. 21)
(ii) Represented that no funds received by Company from any persons or entities, including foreign entities ("Funding Parties"), with understanding that Company shall directly or indirectly lend or invest in other persons or entities identified ("Ultimate Beneficiaries") by or on behalf of Funding Party or provide any guarantee, security or the like. (Note No. 22)
(iii) Based on audit procedures, nothing has come to notice causing belief that representations under subclause (d)(i) and (d)(ii) contain any material misstatement.

Continuation of Rule 11 matters:
(e) Company has neither declared nor paid any dividend during the year under Section 123.
(f) Proviso to Rule 3(1) of Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software with audit trail (edit log) facility applicable with effect from April 1, 2023 — Company is in compliance with reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014.

(i) Property, Plant & Equipment and Intangible Assets:
a) Company does not have any property, plant & equipment and intangible assets; para 3 clause (a), (b), (c), (d), (e) & (f) not applicable.

(ii) Inventory and working capital:
a) Company does not have any inventory; clause 3(ii)(a) not applicable.
b) Company has not been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks on basis of security of current assets.

(iii) Investments, any guarantee or security or advances or loans given:
a) Company has not made any investments, provided guarantee or security but granted advances in nature of loans, secured or unsecured, to companies, firms, LLPs or any other parties during the year as mentioned below:

1. Company has provided loans or advances in nature of loans or stood guarantee or provided security to any other entity during the year.
   a. Company has not granted any loans to subsidiaries.

Continuation of clause (iii):
b. Company has granted loans to a party other than subsidiaries:

2. Investment made, guarantee provided, security given and terms and condition of grant of all loans and advances in nature of loan and guarantees provided are, prima-facie, not prejudicial to companys interest.
3. In respect of loans granted, schedule of repayment of principal and payment of interest stipulated; repayments of principal amounts and receipts of interest generally regular as per stipulation.
4. In respect of loans granted, no overdue amount remaining outstanding as at balance sheet date.
5. No loan granted which has fallen due during year has been renewed or extended or fresh loans granted to settle overdues of existing loans given to same parties.
6. Company has not granted any loans or advances in nature of loans either repayable on demand or without specifying any terms or period of repayment during year; reporting under clause 3(iii)(6) not applicable.

(iv) Loan to directors:
a) Company has provided loans, or provided any guarantee or security as specified under Section 185 of Companies Act, 2013 and has not provided any guarantee or security as specified under Section 186. Company has complied with provisions of Section 186 in relation to loans given and investments made.

(v) Deposits:
a) Company has not accepted any deposits from public within meaning of Sections 73 to 76 or any relevant provisions of 2013 Act and rules framed thereunder to extent notified.

(vi) Statutory Dues:
a) Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Duty of Customs, GST, Cess and any other statutory dues applicable. No undisputed amounts payable in respect of income tax, sales tax, customs duty, excise duty and cess in arrears as at 31/03/26 for period of more than six months from date they became payable.
b) No dues of sales tax, income tax, custom duty, wealth tax, GST, excise duty and cess which have not been deposited on account of any dispute.

(viii) Disclosure of Undisclosed Transactions:
a) Company has not surrendered or disclosed any transactions previously unrecorded as income in books of account in tax assessments under Income-tax Act, 1961 as income during the year.

(ix) Loans or Other Borrowings:
a) Company has not defaulted in repayment of loans or other borrowings or in payment of interest thereon to any lender.
b) Company has not been declared willful defaulter by any bank or financial institution or government or any government authority.
c) Term loans were applied for purpose for which loans were obtained.
d) On overall examination of financial statements, funds raised on short-term basis have, prima facie, not been used during year for long-term purposes.
e) Company has not taken any funds from any entity or person on account of or to meet obligations of its subsidiaries.
f) Company has not raised any loans during year on pledge of securities held in its subsidiaries, joint ventures or associate companies.

(x) Money Raised by IPOs, FPOs:
a) Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) during year; clause 3(x)(a) not applicable.
b) Company has not made any preferential allotment or private placement of shares or convertible debentures (fully or partly or optionally) during year; clause 3(x)(b) not applicable.

(xi) Fraud:
a) No instance of fraud by company and no material fraud on company noticed or reported during year.
b) No report under sub-section (12) of Section 143 filed in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with Central Government during year and up to date of report.
c) Whistle blower complaints received during year (and up to date of report) taken into consideration while determining nature, timing and extent of audit procedures.

(xii) Nidhi Company:
a) Company is not a Nidhi Company; reporting under Para 3 of clause (xii) not applicable.

(xiii) Related Party Transactions:
Company is in compliance with Section 177 and 188 of Companies Act, 2013 with respect to applicable transactions with related parties; details disclosed in financial statements as required by applicable Ind AS.

(xiv) Internal Audit System:
a) Company has adequate internal audit system commensurate with size and nature of business.
b) Internal audit reports for year under audit considered in determining nature, timing and extent of audit procedures.

(xv) Non-cash Transactions:
a) Company has not entered into any non-cash transactions with directors or persons connected with him; paragraph 3(xv) not applicable.

(xvi) Registration under Section 45-IA of RBI Act, 1934:
a) Company not required to be registered under Section 45-IA of RBI Act, 1934; clauses 3(xvi)(a), (b) and (c) not applicable.
b) No core investment company within Group (as defined in Core Investment Companies (Reserve Bank) Directions, 2016); clause 3(xvi)(d) not applicable.

(xvii) Cash Losses:
a) Company has incurred cash losses during financial year and immediately preceding financial year. Cash loss for FY 2023-24: Rs. 3.37 Lakhs; cash loss for FY 2024-25: Rs. 14.21 Lakhs.

(xviii) Resignation of Statutory Auditors:
a) No resignation of statutory auditors during the year.

(xix) Material Uncertainty on Liabilities:
On basis of financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying financial statements, and knowledge of Board of Directors and Management plans, nothing has come to attention causing belief that any material uncertainty exists as on date of audit report indicating Company is not capable of meeting liabilities existing at date of balance sheet as and when they fall due within period of one year from balance sheet date. However, this is not assurance as to future viability; reporting based on facts up to date of audit report; no guarantee or assurance that all liabilities falling due within one year will get discharged as and when due.

(xx) Compliance of CSR:
a) Company not required to spend amount towards Corporate Social Responsibility as per Section 135; reporting under clause 3(xx)(a) not applicable for the year.

(xxi) Qualifications Reporting in Group Companies:
a) Company does not have any subsidiaries, associates or joint ventures; reporting under clause 3(xxi) not applicable for the year.

Audited internal financial controls over financial reporting of Svarnim Trade Udyog Ltd. as of 31st March, 2026 in conjunction with audit of Ind AS financial statements.

Opinion: 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 March 31, 2026, based on criteria for internal financial control over financial reporting established by Company considering essential components of internal control stated in Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by ICAI.

Managements Responsibility for Internal Financial Controls: Management responsible for establishing and maintaining internal financial controls based on internal control over financial reporting criteria established by Company considering essential components of internal control stated in Guidance Note issued by ICAI. Responsibilities include design, implementation and maintenance of adequate internal financial controls operating effectively for ensuring orderly and efficient conduct of business, including adherence to companys policies, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records, and timely preparation of reliable financial information as required under Companies Act, 2013.

Auditors Responsibility: Responsibility to express opinion on Companys internal financial controls over financial reporting based on audit. Audit conducted in accordance with Guidance Note and Standards on Auditing issued by ICAI and deemed prescribed under Section 143(10) of Companies Act, 2013, to extent applicable. Standards and Guidance Note require compliance with ethical requirements and plan and perform 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.

Audit involves performing procedures to obtain audit evidence about adequacy of internal financial controls system over financial reporting and their operating effectiveness. Audit includes obtaining understanding of internal financial controls over financial reporting, assessing risk that material weakness exists, and testing and evaluating design and operating effectiveness of internal control based on assessed risk. Procedures selected depend on auditors judgment, including assessment of risks of material misstatement of financial statements, whether due to fraud or error. Audit evidence obtained sufficient and appropriate to provide basis for opinion.

Meaning of Internal Financial Controls over Financial Reporting: Process designed to provide reasonable assurance regarding reliability of financial reporting and preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Includes policies and procedures that:
a. Pertain to maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of assets.
b. 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 are being made only in accordance with authorizations of management and directors.
c. Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of companys assets that could have material effect on financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting: Because of inherent limitations, including possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Projections of any evaluation to future periods subject to risk that internal financial control may become inadequate because of changes in conditions, or that degree of compliance with policies or procedures may deteriorate.