Innovative Ideals and Services India Ltd Auditor Reports

To,

The Members of

Innovative Ideals and Services (India) Limited
Mumbai, Maharastra-400104

Report on the Audit of the Financial Statements
Qualified Opinion

We have audited the accompanying financial statements of Innovative Ideals and Services (India)
Limited (the Company) which comprise the Balance Sheet as at 31^st March, 2025 the Statement of Profit
and Loss and the Cash Flow Statement for the period ended on 31^st March, 2025 and a summary of
Material 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 possible effects of the matter described in the Basis for Qualified Opinion paragraph of our report,
the aforesaid financial statements give the information required by the provisions of Companies 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 31^st March, 2025 and losses, and
its cash flows for the period ended 31^st March, 2025.

Basis for Qualified opinion

We draw attention to the matters to valuation of inventory, the effect of misstatement and possible
effect of undetected misstatement on the financial statement due to inability to obtain sufficient and
appropriate audit evidence which are material but not pervasive in nature either individually or in
aggregate. The companys inventories are carried in Balance Sheet at Rs. 377.49 Lakhs has not stated by
the management at the lower of cost or net realizable value but has stated them solely at cost which
constitutes departure from the Accounting standard prescribed under section 133 of the Companies Act,
2013. However in the absence of sufficient audit evidence and Physical Verification the impact of the
above qualification on the financial statement, if any, is not ascertainable hence we are unable to
comment on the effect of the same on financial statement of the company.

Other Matter

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^^^f^^he audit
evidence we have obtained is sufficient and appropriate to provide a basis for our

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial statements for the period ended 31^st March, 2025. 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 those matters.

We have determined the matters described below to be the Key Audit Matters to be communicated in our
Report:

• The Company has filed Suit for the recovery of amounting to Rs. 74.20 Lakhs which is included in other
receivable under the head "Other Non- Current Assets" shown in the Financial Statement stated as
disputed ssTrade Debtors and all the matters is currently pending in the respective court, the material
suit filed by the company are as follows:

1. Suit No 2374 of 2013 before Bombay City Civil Court, Mumbai amounting to 56.16 Lakhs against
Pebble Bay Developers Private Limited, Dated 01/08/2013.

2. Suit No. 807 of 2017 under order XXXVII of the City Civil Procedure Code, 1908 before Bombay
City Civil Court, Mumbai amounting to 8.82 Lakhs against Kalpataru Properties Private Limited.

3. Suit No. 369 of 2021 before Bombay City Civil Court, Mumbai amounting to 7.44 lakhs against
Kalpataru Properties Private Limited.

• It was observed that the Company has received a letter dated 20.05.2025 from M/s Strategic
Softwares Consultants, Delhi, regarding sales amounting to Rs. 200.30 lakhs (plus GST) made to them
on 25/26.03.2025. In the letter, the customer stated that the items supplied were not of the agreed
quality and standards, were old, and were not usable. Consequently, they have indicated that no
payment will be made. The customer has also informed that their representative will visit the
Companys office for discussions. This matter is significant and may have a potential impact on the
Companys results for the subsequent financial year.

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 information included in the Boards Report including Annexures to Boards Report and Shareholders
Information, but does not include the financial statements and our auditors report thereon. The Boards
Report including Annexures to Boards Report is expected to be made available to us after the date of this
auditors report.

Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

When we read the Boards Report including Annexure to Boards Report, if we conclude that there is a
material misstatement therein, we are required to communicate the matter to those charged with
governance.

Responsibilities of Management and those charged with governance for the Financial Statements

The Companys Board of Directors is responsible for the matters stated in section 134(5) of the Companies
Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance, 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
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 Company s 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.

The Board of Directors are also responsible for overseeing the Company s financial reporting process.
Auditors Responsibilities for Audit of Financial Statement

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.

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

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.

• Conclude on the appropriateness of managements use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Companys ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures
in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditors report. However, future events or
conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate,
makes it probable that the economic decisions of a reasonably knowledgeable user of the financial
statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the
scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control

that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related

safeguards.

From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the standalone financial statements for the period ended 31st
March, 2025 and are therefore the key audit matters. We describe these matters in our auditor s report
unless* law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order, 2020 ("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 paragraphs 3 and 4 of the Order to the extent applicable.

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

a. Except for the matters described in the Basis for Qualified paragraph we have sought and obtained all
the information and explanations, which to the best of our knowledge and belief were necessary for the
purpose of our audit;

b. Except for the matters described in the Qualified Opinion paragraph in our opinion, proper books of
account, as required by the law, have been kept by the Company, so far as appears from our examination
of those books;

c. The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this
report are in agreement with the books of account;

d. Except for the matters described in the Qualified Opinion paragraph in our opinion, the aforesaid
financial statements comply with the applicable Accounting Standards specified under Section 133 of
the Act, read with Rule 7 of the Companies (Accounts) Rules 2014;

e. The matters described under the basis for Qualified Opinion paragraph above in our opinion, may have
an adverse effect on functioning of the Company and on the amounts disclosed in financial statement

of Company;

f. The qualification relating to the maintenance of accounts and other matters connected therewith are
as stated in the Basis for Qualified Opinion paragraph above;

g. 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; and

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 the impact of pending litigation as at 31^s March, 2025 on its financial
position in its financial statements - Refer Note - 27 to the financial statements.

ii. The Company did not have any long-term contracts including derivative contract; as such the
question of commenting on any material foreseeable losses thereon does not arise.

iii. There has not been an occasion in case of the Company during the period under report to transfer
any sums to the Investor Education and Protection Fund. The question of delay in transferring such
sums does not arise.

iv.

a) The management has represented that, to the best of its knowledge and belief, as disclosed
in note: 34 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 persons or entities, including foreign entities ("Intermediaries"), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall:

• Directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or

• Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

b) The management has represented, that, to the best of its knowledge and belief, as disclosed
in the note: 34 to the accounts, no funds have been received by the company form any
persons or entities, including foreign entities ("Funding Parties"), with the understanding,
whether recorded in writing or otherwise, that the Company shall:

• Directly or indirectly, lend or invest in other persons or entities identified in any manner
whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Party or

• Provide any guarantee, security or the like form or on behalf of the Ultimate Beneficiaries.

c) Based on such audit procedures as considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the
representation sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above,
contain any material misstatement

v. There has no dividend or paid duringthe period ended 31^st March 2025 by the Company hence
is in compliance with section 123 of the Act is not arise.

i. With respect to the matter to be included in the Auditors Report under Section 197(16) of the Act.

In our opinion and according to the information and explanations given to us, remuneration paid by
the Company to its directions during the current period is in accordance with the provision of section
197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under
Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section
197(16) of the Act which are required to be commented upon by us.

j. Based on our examination which included test checks, the company has used an accounting software
for maintaining its books of account which has a feature of recording audit trail (edit log) facility and
the same has operated throughout the year for all relevant transactions recorded in the software.
Further, during the course of our audit we did not come across any instance of audit trail feature being
tampered with.

"Annexure - A" to the Independent Auditors Report referred to in Paragraph 1 under the heading Report
on Other Legal & Regulatory Requirement of our report of even date to the financial statement of the
Company for the period ended 31^st March, 2025:

In terms of the information and explanations sought by us and given by the company and the books of
account and records examined by us in the normal course of audit and to the best of our knowledge and
belief, we state that:

I. In respect of Property. Plant. Equipment and intangible Assets:

a) The Company has maintained proper records showing full particulars, including quantitative details and
situation of Property, Plant, Equipment and intangible Assets;

b) The Company has a program of verification property, plant and equipment & capital work in progress so
to cover all the items over a period of three years which, in our opinion, is reasonable having regard to
the size of the company and nature of its assets. Pursuant to the program, certain property, plant,
equipment were due for verification during the year and were physically verified by the management
during the year. According to the information and explanations given to us, no material discrepancies
were noticed on such verification.

c) The title deeds of all the immovable properties (other than properties where the Company is the lessee
and the lease agreements are duly executed in favour of the lessee), as disclosed in note 10 to the
standalone financial statements, are held in the name of the Company.

d) The Company has not revalued its Property, Plant and Equipment and intangible assets during the period
ended 31st March, 2025. Accordingly, the reporting under clause 3(i) (d) of the Order is not applicable
to the company.

e) Based on the information and explanation furnished to us, no proceedings have been initiated on or are
pending against the company for holding Benami property under Benami Transactions (Prohibitions)
Act, 1988 (as amended in 2016) (formerly the Benami Transaction (Prohibition) Act, 1998(45 of 1988)
and Rules made thereunder, and therefore the question of our commenting on whether the company
has appropriately disclosed the details in its financial statements does not arise.

II. Inventory:

a) The physical verification of inventory (excluding stock with third parties) has been conducted at
reasonable intervals by the Management during the year and, in our opinion, the coverage and
procedures of such verification by Management is appropriate. The discrepancies noticed on physical
verification of inventory as compared to book records were not 10% or more in aggregate for each
class of Inventory, except the matter disclosed in Basis for Qualified Opinion.

a. During the year, the Company has been sanctioned working capital limits in excess of Rs. 5 Crores, in
aggregate, from banks on the basis of security of current assets. The quarterly returns or statements of
current assets filed by the Company with such banks are generally in agreement with the books of
account of the Company.

III. Loans given by the Company:

Based on information and explanation furnished to us, the Company has not provided any guarantee or
security or granted any loans or advances in the nature of loans, secured or unsecured, to Companies,
Firms, Limited Liability Partnership or any other parties, during the year. The company has not made
investments in, Companies, Firms, Limited Liability Partnership or any other parties, during the year.

IV. Loans to Directors & Investment by the Company:

According to information and explanation given to us, the company has not granted any loans or provided
any guarantees or security in respect to any parties covered under the Section 185 of the Act. The
company has not given guarantees or provided security requiring compliance under section 185 or 186 of
the Act, hence clause IV of the, not applicable to the Company.

V. Deposits:

The Company has not accepted any deposits or amounts which are deemed to be deposits within the
meaning of Sections 73 to 76 of the Act, 2013 and the Rules framed there under to the extent notified.
Accordingly, the requirement to report on clause 3(v) of the Order is not applicable to the Company.

VI. Cost Records:

To the best of our knowledge and belief, the Central Government has not specified maintenance of cost
records under sub-section (1) of section 148 of the Act, in respect of Companys products/ Services.
Accordingly, the provisions of clause 3(vi) of the order are not applicable.

VII. Statutory Dues:

a) According to information and explanation given to us and on basis of our examination of the books of
accounts, and records, the Company has been generally regular in depositing undisputed statutory dues
including Provident Fund, Employees State Insurance, Income-Tax, Goods and Services Tax, Duty of
Customs, Duty of Excise, Cess and any other statutory dues with the appropriate authorities.

b) Details of statutory dues referred to in sub-clause (a) above which have not been deposited as on 31st
March, 2025, on account of disputes are given below:

(Amount in Lakhs)

Name of the Statute	Nature of Dues	Amount	Period to which the amount relates		Due Date of Payment		Date of Payment
Income Tax Act, 1961	Tax Deducted at Source	0.90	April 22		7th May, 22		-
		0.90	May 22		7th June, 22		-
		0.90	June 22		7th July, 22		-
		0.90	July 22		7th August, 22		-
		0.90	August 22		7th September,22		-
		0.26	April 23		7th May ,23		29th April, 24
		0.14	May23		7th June, 23		29th April, 24
		0.09	June23		7th July ,23		29th April, 24
		0.02		July23		7th August ,23	30th April ,24
		0.18		August23		7th September23	30th April ,24
		0.12		September23		7th October,23	30th April ,24
		0.19		October23		7th October ,23	10th May ,24
		0.30		November23		7th December ,23	10th May ,24
		0.07		December23		7th January ,24	10th May ,24
		0.54		January24		7th February ,24	29th May ,24
		0.42		February24		7th March ,24	29th May ,24
		0.58		March24		7th April,24	29th May ,24

c) According to the information and explanation given to us, there are no dues of income tax, sales tax, goods
& service tax, service tax, duty of customs, duty of excise, value added tax outstanding on account of any
dispute except:

(Amount in Lakhs)

Nature of Statute	Nature of Dues	Amount	Period to which the amount relates	Forum where dispute is pending
Income Tax Act, 1961	Income Tax Dues	3.77	AY- 2017-18	CPC
Income Tax Act, 1961	Income Tax Dues	175.96	AY -2018-19	CPC
Income Tax Act, 1961	Income Tax Dues	235.50	AY- 2019-20	CPC
GST Act, 2017	ITC Mismatch	130.59	AY-2019-20	GST Appeal
GST Act, 2017	ITC Mismatch	44.03	AY-2020-21	GST Appeal
GST Act, 2017	ITC Mismatch	55.60	AY-2021-22	Assistant Commissioner of GST
GST Act, 2017	ITC Mismatch	38.16	AY-2021-22	Deputy Commissioner of GST
GST Act, 2017	ITC Mismatch	16.65	AY-2023-24	Deputy Commissioner of GST

* Amount mentioning in the above table are reflecting the amount of tax demand excluding any Interest or
Penalties. Interest or Penalties may be Varies at the time of Disposal of Demand, which may varies time to
time.

VIII. Unrecorded Income:

According to the information and explanations given to us and the records of the Company examined by
us, there are no transactions in the books of account that has been surrendered or disclosed as income
during the year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the
books of account.

IX. Repayment of Loan:

a) According to the records of the Company examined by us and the information and explanations given to
us, the Company has not defaulted in repayment of loans or other borrowings or in the payment of interest
to any lender during the year, except as mentioned below:

(Amount in Lakhs

Nature of borrowing, Including Debt Securities	Name of the Lender	Amount not paid on due date	Whether principal or interest	No. of Days, Delay or unpaid
Business Loan	ICICI Bank	2.50	Principal + Interest	Unpaid
Term Loan	Bank of Maharashtra	492.44	Principal	Unpaid
Term Loan	Bank of Maharashtra	144.56	Interest	Unpaid

(Note: The Amounts which are delayed or unpaid as shown above are calculated based on Repayment Schedule
issued at the time of Sanction of the respective Loans provided by the management of the Company. We have
asked the further information from the company related to loan repayment multiple times. As we have not
received any information from the company, we are not able to comment on the same.)

b) According to the information and explanations given to us and on the basis of our audit procedures, we
report that the Company has not been declared Willful Defaulter by any bank or financial institution or
government or any government authority.

c) In our opinion, and according to the information and explanations given to us, term loans which were
applied for the purpose for which the loans were obtained.

d) According to the information and explanations given to us, and the procedures performed by us, and on
an overall examination of the financial statements of the Company, we report that the Company has not
used funds raised on short-term basis for the long-term purposes.

e) According to the information and explanations given to us and on an overall examination of the financial
statements of the Company, we report that the Company has not taken any funds from any entity or
person on account of or to meet the obligations of its subsidiaries, associates or joint ventures.

f) According to the information and explanations given to us and procedures performed by us, we report
that the Company has not raised loans during the year on the pledge of securities held in its subsidiaries,
joint ventures or associate companies.

X. Utilization of IPO & FPO and Private Placement and Preferential issues:

a) The Company has not raised any money by way of initial public offer and through debt instruments by
way of further public offer 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 optionally
convertible) during the year.

xi. Reporting of Fraud:

a) During the course of our examination of the books and records of the Company, carried out in accordance
with the generally accepted auditing practices in India, and according to the information and explanations
given to us, we have neither come across any instance of material fraud by the Company or on the
Company, noticed or reported during the year, nor have we been informed of any such case by the
Management.

b) During the course of our examination of the books and records of the Company, carried out in accordance
with the generally accepted auditing practices in India, and according to the information and explanations
given to us, no report under Section 143(12) of the Act, in Form ADT-4, as prescribed under rule 13 of
Companies (Audit and Auditors) Rules, 2014 has been filed with the Central Government. Accordingly, the
reporting under Clause 3(xi)(b) of the Order is not applicable to the Company.

c) During the course of our examination of the books and records of the Company, carried out in accordance
with the generally accepted auditing practices in India, and according to the information and explanations
given to us, the Company has not received whistle-blower complaints during the year, which have been
considered by us for any bearing on our audit and reporting.

XII. NIDHI Company:

As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the reporting
under Clause 3(xii) of the Order is not applicable to the Company.

XIII. Related Party Transaction:

The Company has entered into transactions with related parties in compliance with the provisions of
Sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the
financial statements as required under Accounting Standard 18 "Related Party Disclosures" specified
under Section 133 of the Act.

XIV. Internal Audit

a. According to the information and explanations given to us, the company has an internal audit system
commensurate with the size and nature of its business.

b. We have considered the reports of the Internal Auditors for the period under audit.

XV. Non-Cash Transaction:

The Company has not entered into any non-cash transactions with its directors or persons connected with
him. Accordingly, the reporting on compliance with the provisions of Section 192 of the Act under Clause
3(xv) of the Order is not applicable to the Company.

XVI. Register under RBI Act, 1934:

In our opinion, The company is not carrying any activities which require registration under section 45-IA of
the Reserve Bank of India Act, 1934 and hence the provisions para 3(xvi) (a) to (d) of the Order referred to
in Companies (Auditors Report) Order, 2020 issued by the Central Government of India in terms of sub-
section (11) of Section 143 of the Act does not apply to the company.

XVII. Cash Losses

The Company has not incurred any cash losses in the Current financial year but incurred cash losses of Rs.
324.38 lakhs in the immediately Preceding Financial year.

XVIII. Auditors resignation

There has been no resignation of the statutory auditors during the year, accordingly this clause is not
applicable.

XIX. Financial Position

According to the information and explanations given to us and on the basis of the financial ratios disclosed in
note 36 to the standalone financial statements, ageing and expected dates of realization of financial assets
and payment of financial liabilities, other information accompanying the financial statements, our knowledge
of the Board of Directors and management plans 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 the 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,
except in the Financial Year 2022-23, Company was not able to pay debts of some Loans due to which the
Company has been declared as NPA (Non-Performing Asset) by Banks. 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. Corporate Social Responsibility

The Provision of Section 135 of the Companies Act 2013 in relation to Corporate Social Responsibility are
not applicable to the Company during the year and hence reporting under this clause is not applicable.

"Annexure B" to the Independent Auditors Report of even date to the members of Innovative Ideal and Services

(India) Limited on the Standalone Financial Statements for the period ended 31st March, 2025

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

In conjunction with our audit of the standalone financial statements of Innovative Ideals and Services (India)
Limited ("the Company") as of 31^st March, 2025, we have audited the internal financial controls with reference
to standalone financial statements of the Company as at that date.

Managements Responsibility for Internal Financial Controls

The Board of Directors of the Company 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 respective companys
policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial information, as required
under the Companies Act, 2013.

Auditors Responsibility

Our responsibility is to express an opinion on the internal financial controls over financial reporting of the
Company 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") issued by the Institute of Chartered
Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act,
2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note
require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether adequate internal financial controls over financial reporting was established and maintained and
if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial
controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls
over financial reporting included obtaining an understanding of internal financial controls over financial
reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors
judgment, including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error.

We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our
audit opinion on the internal financial controls system over financial reporting of the Company.

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.

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, to the best of our information and according to the explanations given to us, 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^s March, 2025 except valuation of
Inventory, based on the internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For, Keyur Shah& Associates

Chartered Accountantfegggj^&A;

F. R. No: 333288W

 

Akhlaq Ahmad Mutvalli

Partner

M. No.: 181329

UDIN: 25181329BMHBUE5780

 

Date: 26th May, 2025

Place: Ahmedabad