Hi-Green Carbon Ltd Auditor Reports

To, the Members of,

M/s. Hi-Green Carbon Limited, Rajkot.

Report on the Audit of the standalone Financial Statements

Opinion

1. We have audited the standalone financial statements of M/s. Hi-Green Carbon Limited, Rajkot (CIN: U45100GJ2011PLC066917) (hereinafter referred to as the “Company”), which comprise the balance sheet as at 31 March 2024, and the statement of profit and loss and the cash flow statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.

2. 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 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2024, and its profit and cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013 (hereinafter referred to as 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 together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act, 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.

Key audit matters

1. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the financial year ended on 31 March 2024. 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.

2. We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditors responsibilities for the audit of the financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial statements.

Transactions with Related parties as defined u/s 2(76) of the Companies Act, 2013
The company has advanced of . 1927.80 Lakhs for acquisition of capital goods to one of its related parties defined under clause (76) of section 2 of the Companies Act, 2013. At the end of the financial year 2023-24, the closing balance of such advances were 2022.51 Lakhs	How our audit addressed the key audit matter
	We performed the following audit procedures, amongst others:
	We obtained an understanding of the Companys design and implementation of controls over recording of the transactions with related parties and tested the operating effectiveness of these controls.
	We also performed various analytical procedures to identify any unusual trends for further testing.
	The Company has passed resolution under section 188 of the Company Act, 2013 authorizing its board of directors to give advances.
Utilization of the funds raised through Public Offer.
The company has raised funds of . 4492.50 Lakhs from public by way of Public Issue of shares.	We performed the following audit procedures, amongst others:
	We verified the Prospectus issued by the Company and verified the purpose for which the funds were raised.
	We compared the amount shown as proposed to be used in the prospectus with actual amount used/utilized.
	We analyzed the timing of the issue of the shares and utilization of funds.
Investment in Subsidiary as defined u/s 2(87) of Companies Act, 2013
The company has invested . 500 Lakhs in a subsidiary company M/s. Shantol Recycling Private Limited, Rajkot.	We performed the following audit procedures, amongst others:
	We have verified the Bank statements of the Company showing payment for the investment.
	We have verified the memorandum of association of M/s. Shantol Recycling Private Limited, Rajkot to ascertain that the objects of the said Company are in line with the Company.
	Further, the company has passed the resolution for the purpose of formation of subsidiary company.

Information other than the financial statements and auditors report thereon:

1. The Companys board of directors is responsible for the preparation of the other information. The other information comprises the Boards Report including Annexure to Boards Report but does not include the financial statements and auditors report thereon.

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

3. 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 during the course of our 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.

Responsibility of Management and those charged with Governance for the standalone Financial Statements:

1. 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, 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.

2. 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.

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

Auditors Responsibilities for the Audit of the Financial Statements:

1. 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 financial statements.

2. As a 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 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 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.

3. 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 the relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Other Matters:

1. We were not physically present at the time of inventory verification by the management and therefore, we have relied on the inventory as taken, verified, and valued by the management.

2. The Company is not possessing any evidence to demonstrate whether sections 206AB and 206CCA of the Income-tax Act, 1961 has been complied with or not at the time tax has been deducted or collected at source.

3. We draw attention to Note No. 9.1 of the “Notes to Accounts” of the Financial Statements attached herewith which discloses the Companys trade payable into sub-head “Due to Micro and Small Enterprises” and “Due to Others”. The Company informed us that it has classified its suppliers into Micro and Small enterprises and Medium Enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006 (the “MSMED Act”). We have relied on the management for classification of such suppliers into Micro and Small Enterprises. The Company has, further, not provided any interest payable under section 16 of the MSMED Act to suppliers falling under the MSMED Act. The Company has not produced before us any details of such interest payable under section 16 of the MSMED Act.

4. Having regard to the size of the Company and its operation, we have not modified our report in the above matters.

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 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.

2. As required by sub-section (3) of section 143 of the Act, further to our comments in the Annexure, 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 except for the matters stated in sub-paragraph (j)(h) below on reporting under clause (g) of Rule 11;

(c)Accounts of the Companys branch office is audited by us, and therefore, in our opinion, reporting under clause (c) of sub-section 3 of section 143 is not required;

(d)The Balance Sheet, and the Statement of Profit and Loss dealt with by this Report are in agreement with the books of account;

(e)In our opinion, the 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;

(f) In our opinion, there are no observations or comments on financial transactions or matters which have any adverse effect on the functioning of the Company;

(g)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 are disqualified as on 31 March 2024 from being appointed as a director in terms of subsection (2) of Section 164 of the Act; (h)The qualifications, reservations or adverse remarks relating to the maintenance of accounts and other matters connected therewith are as stated in the sub-paragraph (b) above on reporting under clause (b) of sub-section (3) of section 143 and sub-paragraph (j)(h) below on reporting under clause (g) of Rule 11;

(i) 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”;

(j) 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 does not have any pending litigations which would impact its financial position in its financial statements.

(ii) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.

(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

(iv) The management has represented that, to the best of its knowledge and belief, as disclosed in the Note No. 45 of the financial statements attached herewith, 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/is including foreign entity/is (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediaries shall, 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 the behalf of the Ultimate Beneficiaries.

(vi)The management has represented that, to the best of its knowledge and belief, as disclosed in the Note No. 46 of the financial statements attached herewith, no funds have been received by the Company from any person/s or entity/is including foreign entity/is (“Funding Party/ies”), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party/is (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on the behalf of the Ultimate Beneficiaries.

(vii)Based on the audits 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 representations under sub-clauses (I) and (ii) of clause (e) of Rule 11 contain any material misstatement.

(viii)During the financial year under audit, no dividend has been declared, or paid by the Company.

(ix) Based on our examination on test check basis, the company has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility. However, the Company did not operate such facility during the year. Further, as proviso to sub-rule 1 of Rule 3 of the Companies (Account) Rule, 2014 is applicable from April 1, 2023, reporting under sub-rule (g) of Rule 11 of the Companies (Audit and Auditors) Rule, 2014 on preservation of audit trail as the statutory requirement for record retention is not applicable for the financial year ended on March 31, 2024.

For J C Ranpura & Co.,

Chartered Accountants Firm Registration no. 108647W

Ketan Y. Sheth

Partner

Membership no. 118411 UDIN: 24118411BJZWQZ4608

Place: Rajkot Date: 18 May 2024

Annexure-A to the Independent Auditors Report

In terms of the information and explanations sought by us and given by the Company and the books of account made available to us in the normal course of audit and to the best of our knowledge and belief, we report that: i. (a) (A)The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant, and equipment.

The Company has not acquired or purchased any intangible assets and accordingly, the requirement to report on item (B) of sub-clause (a) of clause (i) of Paragraph 3 of the Order is not applicable to the Company. (b)Property, plant, and equipment have been physically verified by the management during the year as there is a regular program of verification. In our opinion, the frequency of verification is reasonable.

(c)The title deeds of 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 note 12 to the financial statements are held in the name of the Company.

(d)The Company has not revalued its Property, Plant, and Equipment (including Right of Use assets) or intangible asset or both during the year, and hence, this clause is not applicable to the Company.

(e)No proceedings have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made there under. ii. (a) The inventory has been physically verified during the year by the management. We were not physically present at the time such verification and therefore, we are unable to comment as to whether the coverage and procedure of such verification by the management of the company are appropriate or not. As reported to us, discrepancies of 10% or more in the aggregate for each class of inventories were not noticed.

(b) During the financial year 2023-24, the Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from a bank on the basis of security of current assets, and quarterly returns or statements filed by the Company with such bank are not in agreement with the books of account of the Company. The management has informed is that the main reason was delay in recognition of invoices of purchase and sales.

Particulars	June, 2023	September, 2023	December, 2023	March, 2024	Total
Current assets as per
Quarterly returns filed with Bank	1733.79	1857.60	2030.57	1884.37	7506.34
Current assets as per Books of accounts	1806.17	1923.11	2111.94	1915.99	7757.21
Difference	72.38	65.51	81.37	31.62	250.88

iii. The Company has during the financial year 2023-24, made investment in, or granted any loans or advances in the nature of loans, secured or unsecured, to companies, firms, limited liability partnerships or any other parties.

(a)The Company has made investments in and provided loans or advances in the nature of loan to any other entities and subsidiaries, joint ventures, and associates.

The details of such investment and loans are as under.

( In Lakhs)

	Investment	Loans	Advances	Guarantee	Security
Aggregate amount granted or provided during the year
Subsidiaries	500.00	443.80	--	--	--
Others	-	--	--	--	--
Balance outstanding as at balance sheet date
Subsidiaries	500.00	43.80	--	--	--
Others	-	-	--	--	--

(b) In our opinion, the investments made, and terms and conditions of the grant of all loans and advances are not prejudicial to the companys interest.

(c) In respect of loans and advances in the nature of loans, the schedule of repayment of principal and payment of interest has not been stipulated and therefore we are not able to comment as to whether repayments or receipts are regular or not.

(d) As stated in item (c) of clause III above, in the absence of terms and conditions of repayment of loans granted during the year, we are unable to state as to whether such loan was overdue for its repayment or not and therefore, we are unable to comment as to whether reasonable steps have been taken by the Company for recovery of the principal and interest.

(e) As stated in item (c) of clause III above, in the absence of terms and conditions of loans granted during the year, we are not able to comment that the Companys granting of loans to other companies were fresh loans for settling the overdue of existing loan or not.

(f) The Company has granted loans or advances in the nature of loans without specifying any terms or period of repayment to companies. Of these, following are the details of the aggregate amount of loans or advances in the nature of loans.

( In Lakhs)

	All Parties	Promoters	Related Parties
Aggregate amounts of loans/
advances in nature of loans -	443.80	-	443.80
Repayable on demand
Percentage of loans/ advances in
	100%	-	100%
nature of loans to the total loans

(iv)The Company has complied with section 185 and 186 of the Companies Act, 2013, wherever applicable.

(v) The Company has complied Sec 73 to 76 of the Companies Act, 2013 for the financial year 2023-24.

(vi)The Central Government has prescribed the maintenance of cost records under section 148(1) of the Act for the Company. However, the Company is in preparation of such records and therefore we have not viewed such records.

(vii) a. Undisputed statutory dues including Goods and Services Tax, provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess, and any other statutory dues have not been regularly deposited by the Company with appropriate authority though the delays in deposit have not been serious. No undisputed amounts payable in respect of Goods and Services Tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess, and other statutory dues were in arrears as at 31 March 2024 for a period of more than six months from the date they became payable.

b. No statutory dues referred to in sub-clause (a) are there except income tax for the assessment years mentioned below, which have not been deposited on account of any dispute.

Name of the statute	Nature of the dues	Amount ( )	Period to which the amount relates	Forum where dispute is pending Commissioner	Remarks, if any
Income Tax Act,1961	Income Tax	4,11,32,440/-	A.Y. 2013-14	of Income Tax (Appeals)	No Remarks
Income Tax Act,1961	Income Tax	Not ascertainable	A.Y. 2014-15	High Court	Against Reassessment u/s 147

(viii) There were no transactions which have, during the financial year 2023-24, been surrendered or disclosed as income during the year in the tax assessment under the Income-tax Act, 1961.

(ix) a. The Company is not defaulting its repayment of loans or borrowing to financial institutions, banks, or Government.

b. The Company is not a declared willful defaulter by any bank or financial institution or other lender.

c. The term loans were applied for the purpose for which the loans were obtained.

d. The Company has not utilized short-term funds for long term purposes.

e. The company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries, associates and joint ventures.

f. The company has not raised loans during the year on the pledge of securities held in its subsidiaries, joint ventures and associate companies.

(x) a. Moneys raised during the year by the Company by way of initial public offer were applied for the purpose for which they were raised, except funds which were not utilized have been invested in time deposits with bank. The maximum amount of such funds invested during the year was . 10,00.00 Lakhs and the said amount was outstanding at the end of the year.

b. The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and therefore, the requirement of sections 42 and 62 of the Companies Act, 2013 is not required to be complied with.

(xi) a. We have not, prima facie, noticed any fraud (i.e. intentional material misstatements resulting from fraudulent financial reporting and misappropriations of assets) on or by the company, during the year. Further, the management has represented to us that no fraud by the company or any fraud on the company by its officers or employees has been noticed or reported during the year. However, we are unable to determine/verify as to whether any such reporting has been made during the year or not.

b. During the year, no report under sub-section (12) of section 143 of the Companies Act, 2013 has been filed 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 not received any whistle-blower complaints during the year under audit.

(xii) a. This clause is not applicable to the Company as the Company is not Nidhi Company.

b. This clause is not applicable to the Company as the Company is not Nidhi Company.

c. This clause is not applicable to the Company as the Company is not Nidhi Company.

(xiii) All transactions with related parties are in compliance with section 177 and 188 of the Companies Act, 2013 where applicable and the details have been disclosed in the financial statements etc. as required by the applicable Indian Accounting Standards.

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

b. The Company is required to appoint internal auditor as per clause (c) of sub-rule 1 of rule 13 of the Companies (Accounts) Rules, 2014 r.w.s 138 of the Companies Act, 2013.

(xv) a. The Company has not entered into non-cash transactions with directors or persons connected with him.

(xvi) a. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

b. The Company has not conducted any Non-Banking Financial or Housing Finance activities.

c. The Company is not a Core Investment Company and therefore, this clause is not applicable to the Company.

d. The Company is not a part of the Group of Core Investment Company and therefore, this clause is not applicable to the Company.

(xvii) The Company has not incurred cash losses in the financial year under audit and in the immediately preceding financial year.

(xviii) There has been no resignation of statutory auditor of the company and therefore this clause is not applicable.

(xix) On the basis of the financial ratios disclosed in note 44 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) a. In respect of other than ongoing projects, there are no unspent amounts that are required to be transferred to a fund specified in Schedule VII of the Companies Act, 2013 in compliance with second proviso to sub section 5 of section 135 of the Companies Act, 2013. This matter has been disclosed in note 47 to the financial statements. b.

This clause is not applicable to the Company for the financial year under audit as there is no on-going project as defined under sub-section (5) of section 135 of the Companies Act, 2013.

(xxi)

As this is a standalone financial statement, this clause is not applicable.

For J C Ranpura & Co.,

Chartered Accountants Firm Registration no. 108647W

Ketan Y. Sheth

Partner

Membership no. 118411 UDIN: 24118411BJZWQZ4608

Place: Rajkot Date: 18 May 2024

ANNEXURE-B

TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE STANALONE FINANCIAL STATEMENTS OF HI-GREEN CARBON LIMITED, RAJKOT.

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

1. We have audited the internal financial controls over financial reporting of M/s. Hi-Green Carbon Limited, Rajkot (CIN: U45100GJ2011PLC066917) (hereinafter referred to as the “Company”) as of 31 March 2024 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

1. 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

1. 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.

2. 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.

3. 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

1. 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 a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting:

1. 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:

1. 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 31 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 Institute of Chartered Accountants of India.

For J C Ranpura & Co.,

Chartered Accountants Firm Registration no. 108647W

Ketan Y. Sheth

Partner

Membership no. 118411 UDIN: 24118411BJZWQZ4608 Place: Rajkot Date: 18 May 2024