Global Surfaces Ltd Auditor Reports

TO THE MEMBERS OF

GLOBAL SURFACES LIMITED (formerly known as Global Stones Private Limited)

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements of GLOBAL SURFACES LIMITED (formerly known as Global Stones Private Limited) ("the Company"), which comprise the Balance Sheet as at March 31, 2023, the Statement of Profit and Loss (including other comprehensive income), 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 (hereinafter referred to as the "standalone financial statements").

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 Companies Act, 2013 ("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 the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of a?airs of the Company as at March 31, 2023, and its profit, total comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone 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 Standalone 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 standalone financial statements under the provisions of the Act and the Rules made thereunder, 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 obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current year. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming 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:

S. No.	Key Audit Matters	Auditors response
1.	Inventory of Raw material and Finished Goods (Valuation)
	Finished goods inventory are valued at lower of cost and net realizable value (estimated selling price less estimated cost to sell) and raw material are written down below cost where it is estimated that the cost of finished products produced from such raw material will exceed their net realisable value. Considering the nature of finished goods and raw materials which is dependent upon various market conditions and evaluating possible impact of quality, class, size and ageing, determination of the net realizable value for finished goods and raw material involves significant management judgement and therefore has been considered as a key audit matter.	With respect to the net realisable value :
		Obtained an understanding of the determination of the net realizable values of natural stone and engineered quartz slabs and assessed and tested the reasonableness of the significant judgements applied by the management;
		Evaluating the physical condition of the raw material, its cost and yield vis a vis market price of the finished goods likely to be produced from such raw material;
		Evaluated the design of internal controls relating to the valuation of raw material and finished goods and also tested the operating e?ectiveness of the aforesaid controls;
		Assess the reasonableness of the net realisable value considering the market condition and evaluating possible impact of quality, class, size and ageing that was estimated and considered by the management;
		Compared the actual costs incurred to sell based on the latest sale transactions to assess the reasonableness of the cost to sell that was estimated and considered by the management;
		Compared the cost of the finished goods with the estimated net realisable value and checked if the finished goods were recorded at net realisable value where the cost was higher than the net realisable value;
		Tested the appropriateness of the disclosure in the standalone financial statements in accordance with the applicable financial reporting framework.

 

S. No.	Key Audit Matters	Auditors response
	IT systems and controls over financial reporting
	We identified IT systems and controls over financial reporting as a key audit matter for the Company because its financial accounting and reporting systems are fundamentally reliant on IT systems and IT controls to process significant transaction volumes, specifically with respect to consumption of raw materials and consumables, production of finished goods and Sales. Automated accounting procedures which include integration of financial transaction between IT applications interface and timely identification of gaps and taking corrective actions thereon are required to be designed and to operate e?ectively to ensure accurate financial reporting.	Our procedures included and were not limited to the following:
		Assessed the complexity of the IT environment by engaging IT specialists and through discussion with the management and identified IT applications that are relevant to our audit.
		Assessed the design and evaluation of the operating e?ectiveness of IT general controls over program development and changes, access to program and data flow between IT applications interface by engaging IT specialists.
		Assessed the design and evaluation of the operating e?ectiveness of IT application controls in the key processes impacting financial reporting of the Company by engaging IT specialists.
		Performed GAP analysis of integration issues between IT applications interface and their impact on financial reporting.
		Evaluated the appropriateness of corrective actions taken by management to resolve the integration issues and its corresponding financial impact.

Other Information

The Companys Board of Directors isresponsible for the other information. The other information comprises the information included in Boards Report including Annexures to Boards Report, but does not include the standalone financial statements and our auditors report thereon. The other information comprising the above documents is expected to be made available to us after the date of this auditors report.

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

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

When we read the other information comprising the above documents, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take necessary actions as per applicable laws and regulations.

Managements Responsibility for the Standalone Financial Statements

The Companys Board of Directors is responsible for the matters stated in Section 134(5) of 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 Indian Accounting Standards (Ind AS)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 e?ectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone 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.

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

Auditors Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone 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 standalone 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 standalone 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 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 e?ectiveness 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 standalone 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 standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone 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 e?ect 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 of the current year 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

1. 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 Act, we give in the"Annexure-A" a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, based on our audit, we report that:
1. 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.
2. 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.
3. the Standalone Balance Sheet, the Standalone Statement of Profit and Loss including Other Comprehensive Income, the Standalone Statement of Cash Flows and Standalone Statement of Changes in Equity dealt with by this Report are in agreement with the books of accounts.
4. In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act, read with relevant rules made thereunder.
5. On the basis of the written representations received from the directors as on March 31,2023, taken on record by the Board of Directors, none of the Directors is disqualified as on March 31,2023 from being appointed as a director in terms of Section 164 (2) of the Act.
6. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating e?ectiveness of such controls, refer to our separate Report in "Annexure B".

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, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of Section 197 of the Act.

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

1. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements – Refer Note48 to the standalone financial statements;
2. The Company did not have any long-term contracts including derivative contracts hence, the question of any material foreseeable losses does not arise;
3. No amount isrequired to be transferred to the Investor Education and Protection Fund by the Company
4. (a) The Management has represented that, to the best of its knowledge andbelief, no funds (which are material either individually or in the aggregate) 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 or entity, including foreign entity ("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;

2. The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("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;
3. Based on the 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 misstatement.

1. The Company has not declared or paid any dividend during the year and therefore compliance of Section 123 of the Act, is not applicable.
2. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with e?ect from April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31, 2023.

For B. Khosla & Co.

Chartered Accountants Firm Registration No. 000205C

(Sandeep Mundra)

Partner

g) With respect to the other matters to be included in the Auditors

Place: Jaipur

Date: May 29, 2023

Membership No: 075482 UDIN: 23075482BGWNGD5646

ANNEXURE ‘A TO THE INDEPENDENT AUDITORS REPORT

(Referred to in Paragraph A under ‘Report on Other Legal and Regulatory Requirements section of our report to the Members of Global Surfaces Limited (formerly known as Global Surfaces Limited)of even date)

To the best of our information and according to the explanations provided to us by the Company and the books of account and records examined by us in the normal course of audit, we state that:

1. In respect of the Companys Property, Plant and Equipment and Intangible Assets:
1. (A)The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment.(B) The Company has maintained proper records showing full particulars of intangible assets.
2. All the Property, Plant and Equipment have been physically verified by the management during the year. There is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its Property, Plant and Equipment. No material discrepancies were noticed on such verification.
3. 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) disclosed in the standalone financial statements are held in the name of the Company
4. The Company has not revalued its Property, Plant and Equipment (including Right of Use assets) and intangible assets during the year. Hence reporting under clause 3 (i) (d) of the Order is not applicable.
5. As informed by the management, no proceedings have been initiated during the year or are pending against the Company as at March 31, 2023for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended 2016) and rules made thereunder. Hence reporting under clause 3 (i) (e) is not applicable.
2. (a) As per the information furnished, the Inventories have been physically verified by the management at the year-end. In our opinion, having regard to the size, nature and location of inventory, the coverage and procedure of such verification by the managementis appropriate and no discrepancies of 10% or more in aggregate for each class of inventory were noticed on suchverification.

(b) The company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks on the basis of security of current assets. As per the information and explanation given to us the quarterly returns or statements filed by the company with banks are not in agreement with the books of accounts of the Company as disclosed in the Note 25 of the standalone financial statement.

3. As required under clause 3(iii) of the Order, the relevant details to the extent applicable in respect of the investments, guarantee and/or loans or advances in the nature of loans, secured or unsecured, made by the Company during the year to companies, firms, limited liability partnership or any other parties is given as under: -

1. The aggregate amount during the year, and balance outstanding at the balance sheet date with respect to such loans given are as under:

Particulars	Guarantees (INR in millions) (Refer Note Below)	Securities (INR in millions) (Refer Note Below)	Loans (unsecured) (INR in millions)	Advances in nature of loans (INR in millions)
Aggregate amount granted/ provided during the year Subsidiaries Others	1,000.00 -	1,000.00 -	117.44 -	49.46 -
Balance Outstanding as at balance sheet date Subsidiaries Others	1,000.00 -	1,000.00 -	117.44 16.02	63.43 -

Note: The UAE subsidiary viz. Global Surfaces FZE has availed term loan/letter of credit facilities limit for its project in Dubai against which the Company has provided security of its property, plant and equipment, current assets and guarantee to the banks. The amount mentioned herein is the total limit sanctioned in this regard.

1. In our opinion,the investments made, guarantee provided, security given andthe terms and conditions of grant of loans and advances in the nature of loans and guarantee providedare prima facie,not prejudicial to the Companys interest.
2. In respect of loans granted by the Company, the schedule of repayment of principal and payment of interest has been stipulated and the repayments of principal amounts and receipts of interest (either by way of payment or by conversion into further loan in terms of agreement) are generally been regular as per stipulation. However, as at the year end, an amount of Rs. 63.43 million which has been shown as "Advance to Subsidiaries" (Refer Note No. 19) for which no terms and condition for repayment has been stipulated.
3. In respect of loans granted by the Company, there is no overdue amount of principal for more than 90 days remaining outstanding as at the balance sheet date.
4. The loans which has fallen due during the year, have not been renewed or extended or fresh loans granted to settle the overdue of existing loans given to the same parties.
5. The Company has not granted any loans either repayable on demand or without specifying any terms or period of repayment except as under :

1. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of loans granted, investments made and guarantees and securities provided, where applicable.
2. The Company has not accepted any deposit or amounts which are deemed to be deposits within the meaning of the provisions of Section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and rules framed there under. Hence, reporting under clause 3(v) is not applicable.
3. As per information and explanation given to us by the management, the Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act, for any of the goods produced by the Company. Hence reporting under clause 3(vi) of the order is not applicable.
4. According to the information and explanations given to us, in respect of statutory dues:
1. In our opinion, the Company has generally been regular in depositing undisputed statutory dues including Provident Fund, Goods and Services Tax (GST), Income Tax, Duty of Custom, Value added tax, Cess and other statutory dues applicable to it with the appropriate authorities,

There were no undisputed amounts payable in respect of Provident Fund, Employees State Insurance, Income Tax, Goods and Services Tax, Service Tax, duty of Custom, Sales Tax, Value Added Tax, Cess and other material statutory dues in arrears as at March 31, 2023 for a period of more than six months from the date they became payable except TDS demand of INR0.65million for which appropriate details/reasons is yet to be inquired.

2. Details of statutory dues including Goods and Service Tax and Income Tax which have not been deposited as on March 31, 2023 on account of disputes are as under:

Name of the statute	Nature of dues	Amount in INR (Millions)	Period to which the amount relates	Forum where dispute is pending
Income tax Act, 1961	Income tax	43.78	Block Period from AY 2013-2014 to AY 2021-22	CIT(Appeals), Kolkata
Income tax Act, 1961	Income tax	1.69	AY 2013-2014	Matter pertaining to deposition of advance tax in wrong head is referred to Grievance Cell
CGST Act, 2017	GST	0.15	2017	Additional Commissioner (Appeals), Jaipur

5. According to the information and explanations given to us and records examined by us, there are no transactions that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.Hence, reporting under clause 3(viii) is not applicable.
6. (a) According to the information and explanations given to us and records examined by us, the Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender as at the Balance Sheet date.

2. According to the information and explanations given to us and records examined by us, the Company has not been declared willful defaulter by any bank or financial institution or other lender.Hence, reporting under clause 3 (ix) (b)is not applicable.
3. Based on our examinations of the records and information and explanations given to us, the term loanshave been applied for the purpose for which these are raised.
4. On an overall examination of the financial statements of the Company, funds raised on short-term basis have, prima facie, not been used during the year for long-term purposes by the Company.
5. On an overall examination of the financial statements of the Company, the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries.
6. Based on our examinations of the records and information and explanations given to us, the Company has not raised loans during the year on the pledge of securities held in its subsidiaries.Hence,

reporting under clause 3 (ix) (f) is not applicable.

1. (a) In our opinion and according to information and explanations given to us, the company in the month of March, 2023 raised money by way of initial public o?er (IPO) which remained unutilized as at the year end and the unutilized fund amounting to INR 1,015.78 million was available under fixed depositsand bank balances with monitoring agency as at March 31, 2023. The Company has not raised moneys by way further public o?er (includingdebt instruments) during the year.

(b) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally convertible) during the year. Hence, reporting under clause 3(x)(b) is not applicable.

2. (a) No fraud by the Company and no material fraud on the Company has been noticed or reported during the year.

2. No report under sub-section (12) of section 143 of the Companies Act has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year.
3. As represented and based on our examination of records made available to us by the management, there are no whistle blower complaints received by the Company during the year. Hence reporting under clause 3(xi)(c) is not applicable.

1. The Company is not a Nidhi company and hence reporting under clause 3(xii) is not applicable.
2. According to the information and explanations given to us and based on our examination of the records of the Company, the transactionswith related parties are in compliance with Sections 177 and 188 of the Companies Act, 2013 where applicable anddetails of such transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.
3. (a)In our opinion and based on our examination, the Company does not have an internal audit system and is not required to have an internal audit system for the financial year 2022-2023 as per provisions of the Companies Act, 2013. Hence, reporting under clause 3(xiv) (a) and (b) is not applicable.
4. 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 any non-cash transactions with its directors or persons connected with its directors. Hence, reporting under clause 3(xv) is not applicable.
5. (a) TheCompany is not required to be registered under Section 45- IA of the Reserve Bank of India Act, 1934 and hence reporting under clause 3(xvi)(a), (b) and (c) is not applicable.

(b) In our opinion, there is no Core Investment Company within the Group and accordingly reporting under clause 3(xvi)(d) is not applicable.

6. The Company has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year.
7. There has been no resignation of the statutory auditors during the year; hence reporting under clause 3(xviii) is not applicable.
8. 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 standalone financial

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.

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.

9. In our opinion and according to information and explanations given to us, there is no unspent amount towards Corporate Social Responsibility (CSR) on other than ongoing projects for the financial year 2022-2023. The unspent amount towards Corporate Social Responsibility (CSR) on other than ongoing projects for the financial year 2021-22 has been transferred to a Fund specified in Schedule VII to the Companies Actwithin the period of six months from the date of expiry of financial year 2021-2022, in compliance with second proviso to sub-section (5) of Section 135 of the said Act. The Company has not undertaken any ongoing project towards its Corporate Social Responsibility (CSR) obligation.

For B. Khosla & Co.

Chartered Accountants Firm Registration No. 000205C

(Sandeep Mundra)

Partner

statements, our knowledge of the Board of Directors and management plans and based on our examination of the evidence

Place: Jaipur

Date: May 29, 2023

Membership No: 075482 UDIN: 23075482BGWNGD5646

ANNEXURE - B TO THE INDEPENDENT AUDITORS REPORT

(Referred to in paragraph B(f) 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 Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

TO THE MEMBERS OF GLOBAL SURFACES LIMITED (formerly known

as Global Stones Private Limited)

We have audited the internal financial controls over financial reporting of GLOBAL SURFACES LIMITED ("the Company") as of March, 31, 2023 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Management 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 ("ICAI"). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating e?ectively for ensuring the orderly and efficient conduct of its business, including adherence to the Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013 (hereinafter referred to as "the Act").

Auditors Responsibility

Our responsibility is to express an opinion on the Companys 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 ICAI and the Standards on Auditing as specified prescribed under Section 143 (10) of the Companies Act, 2013 Act, 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 e?ectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial control system over financial reporting and their operating e?ectiveness. 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 e?ectiveness 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 standalone 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.

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 ertain to the maintenance of records, 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 the 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; (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets that could have a material e?ect 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, 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 e?ectively as at March 31, 2023, based on theinternal 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.

Other Matter

Broadly, the Company is having most of the system in place as required for the compliance of Internal Financial Control on Financial Reporting. However, the Company has not documented adequately the internal financial controls over financial reporting based on Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. Based on our audit procedures, we are of the opinion that Company has rectified all material observations of our audit on internal financial controls over financial reporting to ensure that they do not significantly a?ect financial reporting on Internal Financial Control as on Balance Sheet date.

For B. Khosla & Co.

Chartered Accountants Firm Registration No. 000205C

(Sandeep Mundra)

Partner

accounting principles. A companys internal financial control over

financial reporting includes those policies and procedures that (1)

Place: Jaipur

Date: May 29, 2023

Membership No: 075482

UDIN: 23075482BGWNGD5646