Velan Hotels Ltd Auditor Reports

To

The Members of Velan Hotels Limited

Report on the Audit of the Standalone Financial Statements
Qualified Opinion

We have audited the standalone financial statements of Velan Hotels Limited ("the Company"), which comprise
the Balance Sheet as at March 31, 2026, and the Statement of Profit and Loss, the Statement of Changes in
Equity and the Statement of Cash Flows for the year then ended, and notes to the financial statements, including a
summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
standalone financial statements give the information required by the Act in the manner so required and give a true
and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the
Company as at March 31,2026, and Profit / Loss, Changes in Equity and its Cash Flows for the year ended on that
date, subject to the notes given below with regard to Going Concern and other Key Audit Matters.

Basis for Qualified Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of
the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditors
Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the
Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together
with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the
Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.

Going Concern

We draw attention to Note No. 36 of the Financial Statement for the year ended 31st March 2026. The Companys
borrowings were taken over by M/s. RARE Asset Reconstruction Company Limited ("ARC") commencing from
April 1, 2017 and out of the final One-time settlement amount of Rs. 115.96 crores agreed with the ARC, the
company has made a payment of Rs. 82.52 crore upto 31st March 2025 and during the year, the company has
repaid a further sum of Rs.18.43 crore from the Advance received for Sale of Hotel at Tiruppur and as on the date
of this report the company has fully repaid the Loan and obtained No Due Certificate form ARC. The company has
sold all the Income generating Assets as on date of the report and has some land which is pending to be disposed.
In addition, as per the financial statements for the year ended March 31,2026, the net worth has been eroded
indicating the existence of a material uncertainty that may cast significant doubt about the Companys ability to
continue as a going concern.

Further, we draw attention to Note No. 35, the Company having suspended all business operations and with no
revenue being generated, the ability of the Company to repay its debts depends on the quantum of realisation
from the sale of Assets, there exists a concern on the ability of the Company continuing as a Going Concern. In
view of the above, our opinion is Qualified.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
Financial Statements for the financial year ended March 31,2026. These matters were addressed in the context

of our audit of the Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. For each matter below, our description of how our audit addressed the matter
is provided in that context.

Key audit matters identified in our audit are summarized as follows:

- Ability of the Company Continuing as a Going Concern

- Confirmation of balance of Outstanding Debt

- Impairment of Assets

- Delays in remittance of statutory dues

- Gratuity and Leave Encashment accounted on estimated basis

Key Audit Matter	How our audit addressed the Key Audit Matter
Ability of the Company Continuing as a Goina Concern	Our audit procedures in relation to assessment of going concern included:
As at 31st March 2026, the Company has suspended all operations of the Company and there exists no revenue generation to meet the debt obligations and to continue the operations.	- Obtaining an understanding of and assessing the design, implementation and operating effectiveness of key internal controls over the existence and performance of Revenue and Receivables activities;
Accordingly, it has been determined as a key audit matter.	- Audit of debt obligations as at the year ended March 31,2026;
	- Estimating the extent of revenue to continue the operations on a Going Concern Basis,
	- Assessment of the revenue-generating capacity of the company to reasonably meet its debt obligations.
	Key Observation: We draw attention to Note No. 36 of the Financial Statement for the year ended 31st March 2026. The Companys borrowings were taken over by M/s. RARE Asset Reconstruction Company Limited ("ARC") commencing from April 1,2017 and out of the final One-time settlement amount of Rs. 115.96 crores agreed with the ARC, the company has made a payment of Rs.82.52 crore upto 31st March 2025 and during the year, the company has repaid a further sum of Rs.18.43 crore from the Advance received for Sale of Hotel at Tiruppur and as on the date of this report the company has fully repaid the Loan and obtained No Due Certificate form ARC.
	Further, we draw attention to Note No. 35, the Company having suspended all business operations and with no revenue being generated, the ability of the Company to repay its debts depends on the quantum of realisation from the sale of Assets, there exists a concern on the ability of the Company continuing as a Going Concern. In view of the above, our opinion is Qualified.
Delays in remittance of statutory dues: Company is delay in remittance of statutory dues to various statutory authorities.	There has been significant delays in meeting the statutory obligations, including Service Tax, Goods and Services Tax and Value Added Taxes, which are due in excess of 6 months as on the date of this Report. The company has paid dues relating to Provident Fund, Sales Tax, Goods and Service Tax and Tax Deducted at sources for Earlier Years amounting to Rs.54.10 Lacs. The Company is taking necessary steps to settle the balance Statutory Dues as and when the sale of assets are completed.
Gratuity and Leave Encashment accounted on estimated basis	Our audit procedures in relation Impairment of Assets:
As on the balance sheet date, the company has not made provision for gratuity and leave encashment on Actuarial Basis.	- Tested the accuracy and completeness of data sent by management to Actuaries in computing the provision for Gratuity and Leave Encashment;
	- Tested the appropriateness of methods, other inputs and significant assumptions used by the Actuary.
	Key Observation: As all the operations of the company have been suspended, all the employees except KMP have resigned no provision for Gratuity and Leave Encashment is required. The Company shall have to re-assess the carrying liability of Gratuity and Leave Encashment to arrive at the appropriate liability. Till such time no revisions in the carrying value of Gratuity and Leave Encashment has been considered. The impact of change in profitability could not ascertained.

Information Other than the Financial Statements and Auditors Report Thereon:

The Companys Board of Directors is responsible for other information. The other information comprises the
information included in the financial highlights, boards report but does not include the financial statements and
our auditors report thereon.

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

In Connection with our audit of the financial statements, our responsibility is to read the other 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. If, based on the work we
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.

Managements Responsibility for the Standalone Financial Statements

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

In preparing the financial statements, management is responsible for assessing the Companys ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Companys financial reporting process.
Auditors Responsibilities for the Audit of the Financial Statements

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 auditors 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 misstatements, 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 error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- Obtain an understanding of internal financial controls 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 system 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 the management.

- Conclude on the appropriateness of the 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 continue as 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 going concern.

o 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.

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 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 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

As required by the Companies (Auditors Report) Order, 2020 ("the Order"), issued by the Central Government of
India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure a statement
on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable. As required by Section
143(3) of the Act, we report that:

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

b) In our opinion, proper books of account as required by law have been kept by the Company so far as it
appears 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) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) On the basis of the written representations received from the directors as on 31st March, 2026 taken on
record by the Board of Directors, none of the directors is disqualified as on 31st March, 2026 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".

g) With respect to the other matters to be included in the Auditors Report in accordance with the requirements of
section 197 (16) of the Act, as amended, in our opinion and to the best of our information and according to the
explanations given to us, No remuneration is paid by the Company to its directors during the year; 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 litigations on its financial position in its financial
statements - Refer Note 37 to the financial statements;

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

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education
and Protection Fund by the Company.

iv. i) The management has represented that, to the best of its knowledge and belief, no funds have been

advanced or loaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entities
("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the
Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified
in any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries;

ii) The management has represented, that, to the best of its knowledge and belief, no funds have
been received by the company from any person(s) or entity(ies), including foreign entities ("Funding
Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall,
whether, directly or indirectly, lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

iii) Based on such audit procedures performed that have been considered reasonable and appropriate
in the circumstances, nothing has come to our notice that has caused us to believe that the
representations under sub-clause (i) and (ii) contain any material misstatement.

v. No dividend is declared during the year and therefore compliance with Section 123 of the act is not
applicable for the company

vi. Based on our examination which included test checks, the Company has used accounting softwares for
maintaining its books of account for the financial year ended March 31,2026 which have a feature of
recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the respective software.

During the course of performing our audit procedures, we did not notice any instance of audit trail feature
being tampered with. Further, the audit trail, to the extent maintained in the prior year, has been
preserved by the Company as per the statutory requirements for record retention.

For Krishaan & Co.,

Chartered Accountants
Firm Reg. No. 001453S

li ^

K Sundarrajan

Place : Tirupur Membership No. ^sT

Dated : May 22, 2026 UDIN : 26208431NGVYQY5968

ANNEXURE - A TO THE INDEPENDENT AUDITORS REPORT

The Annexure referred to in our Independent Auditors Report to the members of the Company on the

standalone financial statements for the year ended 31 March 2026, we report that:

On the basis of such checks as we considered appropriate and according to the information and explanation given

to us during the course of our audit, we report that:

I) a) The Company has maintained proper records showing full particulars, including quantitative details and
situation of fixed assets.

b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets
are verified in a phased manner over a period of three years. In accordance with this programme, certain
fixed assets were verified during the year and no material discrepancies were noticed on such
verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size
of the Company and the nature of its assets.

c) According to the information and explanations given to us and on the basis of our examination of the
registered title deeds of all the immovable properties of land and building are held in the name of the
company as at the balance sheet date; Immovable properties of land and building whose title deeds
have been mortgaged as security for loans, guarantees etc., are held in the name of the Company as per
Memorandum of Entry executed by the company and confirmed by the banker/ARC as on the balance
sheet date.

d) According to the information and explanations given to us and on the basis of our examination of the
records of the Company, the Company has not revalued its fixed assets during the year.

e) According to the information and explanations given to us and on the basis of our examination of the
records of the Company, there are no proceedings initiated or pending against the Company for holding
any benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made
thereunder.

ii) a) As explained to us, inventories have been physically verified during the year by the management at

reasonable intervals. No inventory is lying at the end of the year.

b) On the basis of our examination of the inventory records, in our opinion, the Company is maintaining
proper records of inventory. The discrepancies noticed on physical verification of inventory as compared
to book records were not material, which have been properly dealt with in the books of account.

c ) The company has not availed any working capital loan from banks or financial institution.

iii) According to the information and explanations given to us and on the basis of our examination of the records
of the Company, the Company has not made any investments, provided 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 during the year.

iv) According to the information and explanations given to us and on the basis of our examination of the records,
the Company has not given any loans, made any investments or provided any guarantee or security as
specified under Section 185 of the Companies Act, 2013 and the Company has not provided any guarantee
or security as specified under Section 186 of the Companies Act, 2013.

v) The Company has not accepted any deposits or amounts which are deemed to be deposits from the public.
Accordingly, clause 3(v) of the Order is not applicable.

vi) As per information and explanation given by the management, The Central Government has not prescribed
the maintenance of cost records under Section 148(1) of the Act.

vii) a) According to the information and explanations given to us and on the basis of our examination of the

records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed
statutory dues including provident fund, employees state insurance, income tax, valued added
taxes/GST, sales tax, wealth tax, excise duty, service tax, duty of customs, value added tax, cess and
other material statutory dues have been deposited with delays during the year by the Company with the
appropriate authorities.

According to the information and explanations given to us, no undisputed amounts payable in respect of
statutory dues were in arrears as at 31 March 2026 for a period of more than six months from the date
they became payable is as follows :

Nature of Due	Amount Outstanding (in Lacs)	Period
Employees Provident Fund	0.01	From Nov 2019
Employees State Insurance	0.18	From Nov 2019
Tax Deducted at Source	2.42	From April 2021

b) According to the information and explanations given to us and also based on the Management
representation, there are no disputed statutory dues that have not been deposited as at the year-end
other than:

Statue	Nature of Dues	Amount involved [Rs.]	Period to which the Amount relates	Forum where the dispute is pending
Employees Provident Fund and Miscellaneous Provisions Act, 1952	Damages on delayed payment Employees Provident Fund	5.99 Lakhs	2015- 16, 2016- 17 and 2017- 18	Labour Court, Chennai
Income Tax Act, 1961	Income Tax (*)	2.15 Lakhs	AY 2010-11	Assessing Officer
Income Tax Act, 1961	Income Tax (*)	2.73 Lakhs	AY 2011-12	Assessing Officer
Income Tax Act, 1961	Income Tax (*)	0.03 Lakhs	AY 2012-13	Assessing Officer

(*) - response filed on Income Tax Portal, pending rectification

viii) According to the information and explanations given to us and on the basis of our examination of the
records of the Company, the Company has not surrendered or disclosed any transactions, previously
unrecorded as income in the books of account, in the tax assessments under the Income-tax Act, 1961
as income during the year.

ix) a) According to the information and explanations given to us, the Company has not defaulted in repayment

of dues to financial institutions and banks during the year. Refer Note No. 36 to these financial
statements.

b) According to the information and explanations given to us and on the basis of our examination of the
records of the Company, the Company has not been declared a wilful defaulter by any bank or financial
institution or government or government authority.

c) The Company did not have any term loans outstanding during the year hence, the requirement to report
on clause (ix)? of the Order is not applicable to the Company.

d) The Company did not raise any funds during the year hence, the requirement to report on clause (ix)(d)
of the Order is not applicable to the Company.

e) The Company has no subsidiary, associates or joint ventures. Hence the requirement to report on
clause (ix)(e) and (ix)(f) of the Order is not applicable to the Company.

x) a) According to the information and explanations given by the management, the Company has not raised

any money during the year by way of initial public offer / further public offer (including debt instruments)
hence, reporting under clause 3(x)(a) is not applicable to the Company and hence not commented upon.

b) The Company has not made any preferential allotment or private placement of shares / fully or partially
or optionally convertible debentures during the year under audit and hence, the requirement to report on
clause 3(x)(b) of the Order is not applicable to the Company.

xi) a) According to the information and explanations given to us, no fraud by the Company or on the Company

by its officers or employees has been noticed or reported during the course of our audit.

b) During the year, no report under sub-section (12) of Section 143 of the Companies Act, 2013 has been
filed by cost auditor / secretarial auditor or by us in Form ADT - 4 as prescribed under Rule 13 of
Companies (Audit and Auditors) Rules, 2014 with the Central Government.

c) We have taken into consideration the whistle blower complaints received by the Company during the
year while determining the nature, timing and extent of audit procedures.

xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi
Company. Accordingly, paragraph 3(xii) of the Order is not applicable.

xiii) According to the information and explanations given by the management, transactions with the related
parties are in compliance with Section 177 and 188 of Companies Act, 2013 where applicable and the details
have been disclosed in the notes to the financial statements, as required by the applicable accounting
standards.

xiv) a) The Company has an internal audit system commensurate with the size and nature of its business.

b) The internal audit reports of the Company issued till the date of the audit report, for the period under audit
have been considered by us.

Hotels

xv) According to the information and explanations given to us and based on our examination of the records of the
Company, the Company has not entered into non-cash transactions with directors or persons connected with
him. Accordingly, paragraph 3(xv) of the Order is not applicable.

xvi) a) According to the information and explanations given to us, the provisions of Section 45-IA of the Reserve

Bank of India Act, 1934 are not applicable to the Company.

b) The Company is not engaged in any Non-Banking Financial or Housing Finance activities. Accordingly,
the requirement to report on clause (xvi)(b) of the Order is not applicable to the Company.

c) The Company is not a Core Investment Company as defined in the regulations made by Reserve Bank
of India. Accordingly, the requirement to report on clause 3(xvi) of the Order is not applicable to the
Company.

d) The Group does have more than one CIC as part of the Group, hence, the requirement to report on
clause 3(xvi)(d) of the Order is not applicable to the Company.

xvii) The Company has incurred cash losses in the current year and in the immediately preceding financial year.

xviii) There has been no resignation of the statutory auditors during the year and accordingly requirement to report
on Clause 3(xviii) of the Order is not applicable to the Company.

xix) On the basis of the financial ratios disclosed in note 42 to the 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 Company is not
capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period
of one year from the balance sheet date. We, however, state that this is not an assurance as to the future
viability of the Company. We further state that our reporting is based on the facts up to the date of the audit
report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one
year from the balance sheet date, will get discharged by the Company as and when they fall due.

xx) Provisions of Section 135(5) of the Companies Act, 2013 is not applicable to the company for the year ended
31st March 2026. Accordingly, clauses 3(xx)(a) and 3(xx)(b) of the Order are not applicable.

For Krishaan & Co.,

Chartered Accountants
Firm Reg. No. 001453S

K Sundarrajan

Place : Tirupur Membership No. SsT

Dated : May 22, 2026 UDIN : 26208431NGVYQY5968

ANNEXURE - B TO THE INDEPENDENT AUDITORS REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the

Companies Act, 2013 ("the Act")

We have audited the internal financial controls over financial reporting of VELAN HOTELS LIMITED ("the
Company") as of March 31,2026 in conjunction with our audit of the financial statements of the Company for the
year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal financial controls based on
the internal control over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design,
implementation and maintenance of adequate internal financial controls that were operating effectively for
ensuring the orderly and efficient conduct of its business, including adherence to companys policies, the
safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of
the accounting records, and the timely preparation of reliable financial information, as required under the
Companies Act, 2013.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls over financial reporting
based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and
deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of
internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the
Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate
internal financial controls over financial reporting was established and maintained and if such controls operated
effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence 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
judgement, including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error.

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

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 authorisations of management and directors of the
company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised
acquisition, use, or disposition of the companys assets that could have a material effect on the financial
statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of
collusion or improper management override of controls, material misstatements due to error or fraud may occur
and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to
future periods are subject to the risk that the internal financial control over financial reporting may become
inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures
may deteriorate.

Opinion

In our opinion, the Company 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 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 Krishaan & Co.,

Chartered Accountants
Firm Reg. No. 001453S

K Sundarrajan

Place : Tirupur ^Partn^er

n M Membership No. 208431

nated : ^{May 22}, ²⁰²⁶

UDin : 26208431NGVYQY5968