Choksi Laboratories Ltd Auditor Reports

To

The Members

Choksi Laboratories Limited

Report on the Audit of the Financial Statements

I. Opinion

We have audited the accompanying Financial statements of Choksi Laboratories Limited ("the Company"), which comprise the Balance Sheet as at 31st March 2024, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of material accounting policies and other explanatory information (hereinafter referred to as"the financial statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013, as amended ("the Act") in the manner so required and give a true and fair view in conformity with the Indian accounting standards prescribed under section 133 of the Act read with Companies (Indian Accounting Standards) Rules, 2015, as amended and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2024, and its Profit (including other comprehensive income), changes in equity and its cash flows for the year ended on that date.

II. Basis for Opinion

We conducted our audit of the Financial Statements in accordance with the Standards on Auditing (SAs) specified under Section 143 (10) of the Act. Our responsibilities under those standards are further described in the Auditors Responsibilities for the Audit of the 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 ("ICAI") together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the financial statements.

III. 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 31st March, 2024. These matters were addressed in the context of our audit of the financial statements as a whole, and informing our opinion thereon, and we do not provide a separate opinion on these matters.

We have determined the matters described below to be the key audit matters to be communicated in our report.

Key audit matters	How our audit addressed the key audit matter
1)Information Technology (IT) System & Control Impacting	1)In assessing the integrity of the IT System, we involved our IT Expert to obtain an understanding of the IT Infrastructure & IT System relevant to the Companys Financial reporting Process of evaluation and testing of IT general control and IT Automated Control exist in such IT System ..
1)Financial Reporting The IT Environment of the Company is complex & involves a large number of Independent & Inter Dependent IT System used in the operation of the Company for processing and recording a long volume of Transaction at numerous location. As a result there is a high degree of reliance & dependency on such IT System for the	. We also assessed the operating effectiveness of control over removal and periodical review of access right. We also evaluated the design and tested the operating effectiveness of key automated control within various business processes
Financial Reporting Process of the Company. Appropriate IT General control and application are requested to ensure that such IT System are able to process the data, as required completely, accurately and consistently for reliable Financial Reporting. The accuracy & reliability of the Financial Reporting Process depends on the IT System and the related control environment including	This included testing the irregularity of the system interfaces the completeness and accuracy of data input and automated calculation.
IT general control over use access management and change management accrued application network database and operating system. IT Automated application control. Due to the importance of the impact of the IT System and related control environment on the Companys Financial Reporting Process we have identified testing of such IT System and related control environment as a key Audit Matter for the Current Year Audit.
2)Allowances for credit losses	2)Our audit procedures related to verification of expected credit losses for trade receivables included the following, among others: We tested the effectiveness of controls over the
2)The Company determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions.	(1) development of the methodology for the allowance for credit losses, including consideration of the current and estimated future economic conditions
The Company considered current and anticipated future economic condition relating to industries the Company deals with. In calculating expected credit loss, the Company has also considered market condition and other related credit information for its customers to estimate the probability of default in future.	(2) completeness and accuracy of information used in the estimation of probability of default and
	(3) Computation of the allowance for credit losses based on the age wise details of trade receivables provided to us.
We identified allowance for credit losses as a key audit matter because the Company exercises significant judgment in calculating the expected credit losses	We tested the mathematical accuracy and Computation of the allowances by using the same input data used by the Company.
	We focused on appropriate application of accounting principles, validating completeness and accuracy of the data and reasonableness of assumptions used in the model.
3)Provisions & Contingent Liabilities	3)Our Audit procedure teased the design and operating effectiveness, key control over the estimation, monitoring and disclosure of Provisions and Contingent Liabilities.
3)In accordance with Accounting Criteria set under Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets significant degree of Management Judgment is involved in determining whether an obligation exists and whether a provision should be recognized as at the reporting date or it needs to be disclosed as Contingent liability.	For said details Refer to Note No. 35 to the Audited Financial Statements.
Further Significant Judgments are also involved in measuring such obligations the most significant of which are assessment of liability. Judgment is involved in the determination of whether any outflow in respect of identified material matters is probable and can be estimated reliably.
Adequacy of Provision, appropriateness of assumption and judgment used in the estimation of significant provision, adequacy of disclosure of provision for liabilities and Contingent Liabilities, considering the significance of the above matter to the Financial Statement and significant Auditors attention required to test such estimate, we have identified this as a key Audit matter.
4)Related Party Transactions	4)Our Audit Procedure included the following:
4)We identified related party transactions as a key audit matter due to significance of related party transactions, regulatory compliance and risk of such transactions remaining undisclosed in the financial statements.	Evaluated the Companys policies, processes and procedures in respect of identifying and disclosing related party transactions.
	Evaluating the minutes of meeting of the shareholders, Board and Audit Committee regarding the Companys assessment of related party transactions for arms length pricing.
	Assessed the compliance with Companies Act, 2013, including authorization and approvals as specified in sections 177 and 188 of the Companies Act, 2013, and Rules thereon and SEBI (LODR), 2015.
	We evaluated the disclosures through reading of statutory information, books and records and other documents obtained during the course of our audit.

IV. Information other than the financial statements and Auditors Report thereon

The Companys management and Board of Directors are responsible for the preparation of the other information. The other information comprises the information included in the Companys annual 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 have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard.

V. Responsibilities of Management and those charged with governance for the financial statements

The Companys management and Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these Financial Statements that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act read with the companies (Indian Accounting Standards) rules 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 Statements 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 and Board of Directors are 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 Board of Directors and management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Companys financial reporting process.

VI. 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 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.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls over financial reporting and the operating effectiveness of such controls.

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

Conclude on the appropriateness of managements use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the 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 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.

VII. Report on Other Legal and Regulatory Requirements

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

2. With respect to the matter to be included in the Auditors Report under section 197(16), we report that, In our opinion and according to the information and explanation given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act.

3. As required by Section 143(3) of the Act, based on our Audit we report to the extent applicable 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 (including other comprehensive income), statement of changes in equity and statement of cash flows dealt with by this Report are in agreement with the books of account maintained.

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

e) In our opinion, the aforesaid Financial Statements comply with the Ind AS specified under Section 133 of the Act.

f) On the basis of the written representations received from the directors as on 31 March 2024 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2024 from being appointed as a director in terms of Section 164(2) of the Act.

g) 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 which would impact its financial positions- refer to Note No. 35 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 during the year ended March 31, 2024.

iii. There were no amounts which were required to be transferred to the investor education & protection fund by the company.

iv. (a) 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;

(b) 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

(c) Based on such audit procedures 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) of Rule 11(e), as provided under (a) and (b) above, contain any material mis-statement.

v. The company has not declared any dividend during the year.

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, 2024 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 softwares. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with.

As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 01, 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory requirements for record retention is not applicable for the financial year ended March 31, 2024.

	For Prateek Jain & Co.
	Chartered Accountants
	FRN-009494C
	(CA Prateek Jain)
Date: 29/05/2024	Proprietor
Place: Indore	M.No. 079214
	UDIN: 24079214BKGYVK1518

ANNEXURE "A" TO THE INDEPENDENT AUDITORS REPORT

(Referred to in Point No. 1 of paragraph VII under Report on Other Legal and Regulatory Requirements section of our Report of

even date for Choksi Laboratories Limited )

(i) In respect of its Property, plant & equipment and Intangible Assets:

a) The Company has maintained proper records showing full particulars including quantitative details and situation of

property, plant and equipment in the IT system.

The Company has maintained proper records showing full particulars of Intangible Assets in the IT system.

b) As explained to us and on the basis of our examination of the records of the Company, the Company has a regular program of physical verification of its Property, plant and equipment under which the PPE are physically verified in a phased manner at reasonable intervals, which in our opinion is reasonable having regard to the size of the Company and nature of its assets. In accordance with this program, property plant and equipment were verified during the year and 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 favor of the lessee) disclosed in the financial statements are held in the name of the company as at 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 Property, Plant and Equipment (including Right to Use assets) or Intangible 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 are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.

(ii) In respect of Inventory and Working Capital

a) As explained to us, physical verification has been conducted by the management during the year at reasonable intervals, which in our opinion is appropriate regarding the size and nature of the Company. Further, as per the records available with the management, no material discrepancies were noticed on such physical verification.

b) As per information and explanations given to us, the Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, during the year, from banks or financial institutions on the basis of security of current assets and the quarterly returns or statements filed by the Company with such banks or financial institutions are in agreement with the books of account of the Company.

(iii) In respect of Loan, Guarantee or Security given by Company

Based on our audit procedures and according to the information and explanations given to us, the company has not made any investment in; provided any guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any other parties covered in the register maintained under Section 189 of the Companies Act, 2013 ("the Act") during the year. Accordingly the provisions of the said clause of the order are not applicable to the Company.

(iv) In respect of Loan to Directors and Investment by the Company

According to the information and explanations given to us and records made available to us, the company has not granted any

loans, secured or unsecured, to the director of the Company and the Company does not have any current and non-current.

Investment during the year, which in our opinion is satisfactory to the compliance with the provisions of Section 185 & 186 of the

Act.

(v) In respect of Deposits Accepted by the Company

According to the information and explanations given to us and records made available to us, the company has not accepted any

deposits under the provisions of section 73 to 76 of the Act, during the year.

(vi) In respect of Cost Records Maintenance

According to the information and explanations given to us and records made available to us, the Central Government has not prescribed maintenance of cost records to the company under sub section (1) of Section 148 of the Act. Accordingly, the provisions of the said clause (vi) are not applicable to the Company.

(vii) In respect of payment of Statutory Dues

a) According to the information and explanations given to us and records of the Company examined by us, in our opinion, the company has been generally regular in depositing undisputed statutory dues including Goods and Services Tax, PF, ESIC, labour welfare fund, income-tax, duty of customs, cess and any other statutory dues to the appropriate authorities except some instances where professional tax, PF & ESI were deposited beyond the due dates for the respective months during the year. According to the information and explanation given to us, there were no outstanding statutory dues as on 31st March, 2024 for a period of more than six months from the date they became payable except the following.

(Rs. in Lakhs)

Name of Statute	Particulars	Period related	Amount
Employees Provident Fund Scheme	EPF for 1 employee of Indore	April 2022 to July 2022	0.30

b) According to the information and explanations given and records made available to us, the company has no outstanding statutory dues which have not been deposited as on March 31, 2024 on account of disputes, except listed below-

(Rs. in Lakhs)

Name of Statute	Particulars	Period related	Amount (Rs.In Lakhs)	Forum where dispute is pending
Income Tax Act	TDS DEMAND	A.Y. 2014-15	1.08	Pending before CIT(A)
Labour Act	Labour Demand	F.Y. 2021-22	1.24	Pending before
				Labour welfare Court
Income Tax Act	Income Tax Demand	A.Y. 2013-14	25.54	Pending before CIT(A)

(viii) In respect of Unrecorded Transactions of Income

Based on our audit procedures and as per the information and explanations given by the management, no amount has been

surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

Accordingly, paragraph 3(viii) of the order is not applicable to the Company.

(ix) In respect of Repayment of Loans and Borrowings

a) According to the information and explanations given by the management and records examined by us, the company has neither defaulted in repayment of secured as well as unsecured loans or other borrowings nor in the payment of interest thereon to any lender.

b) According to the information and explanations given by the management and records examined by us, the company was

not declared willful defaulter by any bank or financial institution or any other lender.

c) As per the information & explanations given by the management and on the basis of our test checks performed during

the Audit, term loan amount has been applied for the purpose for which the loan was obtained by the company.

d) As per the information & explanations given by the management and on the basis of our test checks performed during

the Audit, working capital funds raised on short term basis have not been utilized for long term purpose during the year.

e) As per the information & explanations given by the management, the company does not have any subsidiary, associate or joint venture during the year. Accordingly, provisions of Para (e) and (f) of the said clause 3(ix) are not applicable to the Company.

(x) In respect of Utilization of Public Funds

a) As per the information & explanations given by the management and on the basis of our test checks performed during the Audit, the company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year. Accordingly, the reporting under Clause 3(x)(a) of the Order is not applicable.

b) Further, the company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally convertible) during the year. Accordingly, the reporting under Clause 3(x)(b) of the Order is not applicable.

(xi) In respect of Reporting of Frauds

a) As per the information & explanations given by the management and on the basis of our test checks performed during the Audit, no instances of fraud by the company or any fraud on the company by the officers or employees has been noticed or reported during the year.

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

c) Further, as per the information & explanations given by the management, no whistle-blower complaints received by the

company during the year.

(xii) In respect of Provisions of Nidhi Company

As per the information & explanations given by the management, the company is not a Nidhi Company. Accordingly, the

provisions of the said clause 3(xii) are not applicable to the company.

(xiii) In respect of Related Party Transaction

In our opinion and according to the information and explanations given to us, the Company is in compliance with sections 177 and

188 of the Act, where applicable, for all transactions with related parties undertaken during the year and the details of such

related party transactions have been disclosed in the financial statements as required by the applicable accounting standards;

(xiv) In respect of Internal Audit System

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

b) The reports of the Internal Auditors issued till the date of the audit report for the period under audit were considered by us. However, the scope of internal audit needs to be extended to include certain areas i.e. payroll, purchases of fixed assets, material services and all financial transactions.

(xv) In respect of Non Cash Transaction

According to the information and explanations given by the management and based on our examination of the records of the Company, the company has not entered into any non-cash transactions with its directors or persons connected with him and hence the provisions of section 192 of the Act are not applicable.

(xvi) In respect of Registration u/s 45-IA of RBI Act, 1934

According to the information and explanations given and based on our examination, Company is not an NBFC Company and hence is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934. Accordingly, Para(a), (b)& (c) of the said clause 3(xvi) are not applicable to the company.

In our opinion, there is no core investment company within the Group (as defined in the Core Investment Companies (Reserve

Bank) Directions, 2016) and accordingly reporting under clause 3(xvi)(d) of the Order is not applicable;

(xvii) In respect of Cash Losses

The company has not incurred cash losses in the current financial year and in the immediately preceding financial year.

(xviii) In respect of Resignation of the Statutory Auditor

There has been no resignation of the Statutory Auditors of the Company during the year.

(xix) In respect of Financial Position of the Company

On the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, 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 indicating 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. 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) In respect of Corporate Social Responsibilities

Provisions related to corporate social Responsibility (CSR) defined under section 135 of the Act are not applicable to the

company. Accordingly, provisions of the said Clause 3(xx) are not applicable to the company.

(xxi) In respect of Consolidated Financial Statement

Since company is not liable to prepare Consolidated Financial Statements, the provisions of the said Clause 3(xxi) are not

applicable to the company.

	For Prateek Jain & Co.
	Chartered Accountants
	FRN-009494C
	(CA Prateek Jain)
Date: 29/05/2024	Proprietor
Place: Indore	M.No. 079214
	UDIN: 24079214BKGYVK1518

ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT

(Referred to point 3(d) of paragraph VII under ‘Report on Other Legal and Regulatory Requirements section of our Report of even date)

Report on the Internal Financial Controls over Financial Reporting under Section 143(3)(i) of The Companies Act, 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Choksi Laboratories Limited ("the Company") as of 31st March, 2024 in conjunction with our audit of the Financial Statements of the Company for the year ended on that date.

I. 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 (the "Guidance Note") issued by the Institute of Chartered Accountants of India ("ICAI"). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of 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.

II. Auditors Responsibility for the Audit of Internal Financial Controls

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") issued by the ICAI 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

Companys internal financial controls system over financial reporting.

III. Meaning of Internal Financial Controls Over Financial Reporting

A companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the companys assets that could have material effect on the financial statements

IV. 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.

V. Opinion

In our opinion and 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 31st March, 2024, 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 ICAI.

	For Prateek Jain & Co.
	Chartered Accountants
	FRN-009494C
	(CA Prateek Jain)
Date: 29/05/2024	Proprietor
Place: Indore	M.No. 079214
	UDIN: 24079214BKGYVK1518