Sharat Industries Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2025

We have audited the accompanying standalone
Ind AS financial statements of Sharat Industries
Limited (“the Company”), which comprise
the Balance Sheet as at 31^st March 2025, the
Statement of Profit and Loss (including other
comprehensive income) for the year then ended,
the Cash Flows and the Statement of Changes in
Equity for the year then ended and a summary
of the significant accounting policies and other
explanatory information (hereinafter referred to
as “the standalone Ind AS 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 (“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 affairs of the Company as at 31^st March,
2025, the profit for the year ended on that date
total comprehensive income, its cash flows and
the changes in equity for the year ended on that
date.

Basis of Opinion

Weconducted ourauditof the standalone financial
statements in accordance with the Standards on
Auditing (SAs) specified under section 143(10)
of the Companies Act, 2013. Our responsibilities
under those Standards are further described in
the Auditor''s 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
together with the Ethical requirements that are
relevant to our audit of the standalone financial
statements under the provisions of the Companies
Act, 2013 and the Rules there under, 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 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 financial statements of the
current period. 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 have determined that there are no key
audit matters to communicate in our report.

Information other than the financial
statements and auditors’ report thereon

The Company''s board of directors is responsible
for the preparation of the other information. The
other information comprises the information
included in the Board''s Report including
Annexures to Board''s Report, Business
Responsibility Report but does not include the
financial statements and our auditor''s 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 standalone 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.

Management’s Responsibilities for the
Standalone Financial Statements

The Company''s Board of Directors is responsible
for the matters stated in section 134(5) of
the Companies Act 2013, with respect to the
preparation of these standalone financial
statements that give a true and fair view of the
financial position and financial performance, 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 the assets of the Company
and for preventing and detecting frauds and
other irregularities; selection and application
of appropriate accounting policies; making
judgements 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 standalone financial
statements 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 Company''s ability to continue
as a going concern, disclosing, as applicable,
matters related to going concern and using
the going concern basis of accounting unless
management either intends to liquidate the
Company or to cease operations, or has no
realistic alternative but to do so. The Board of
Directors are responsible for overseeing the
Company''s financial reporting process.

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

As part of an audit in accordance with SAs, we
exercise professional judgement and maintain
professional scepticism 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 controls
relevant to the audit in order to design
audit procedures that are appropriate in the
circumstances. Under section 143(3)(i) of the
Act, we are also responsible for expressing our
opinion on whether the Company has adequate
internal financial controls system in place and
the operating effectiveness of such controls.

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

• Conclude on the appropriateness of
management''s 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 Company''s
ability to continue as a going concern. If we
conclude that a material uncertainty exists,
we are required to draw attention in our
auditor''s report to the related disclosures
in the standalone financial statements or, if
such disclosure are inadequate, to modify
our opinion. Our conclusions are based on
the audit evidence obtained up to the date of
our auditor''s 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 effect of any identified misstatements
in the financial statements.

We also communicate with those charged with
governance regarding, among other matters,
the planned scope and timing of the audit and
significant audit findings 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 period and are therefore the key audit
matters. We describe these matters in our auditor''s
report unless law or regulation precludes public
disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter
should not be communicated in our report because
the adverse consequences of doing so would
reasonably be expected to outweigh the public
interest benefits of such communication.

Report on Other Legal and Regulatory
Requirements

As required by the Companies (Independent
Auditor''s Report) Order, 2020 (“the Order”)
issued by the Central Government of India in
terms of subsection (11) of Section 143 of the Act,
we give in the “Annexure A”, a statement on the
matters specified in paragraphs 3 and 4 of the
Order, to the extent applicable.

As required by Section 143 (3) of the Act, we
report that:

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

b) In our opinion, proper books of account as
required by law have been kept by the Company
so far as it appears from our examination of
those books.

c) The Balance Sheet, the Statement of Profit and
Loss including other comprehensive income,
the Cash Flow Statement and Statement of
Changes in Equity dealt with by this Report are
in agreement with the books of account.

d) In our opinion, the aforesaid standalone Ind
AS financial statements comply with the
Indian Accounting Standards specified under
Section 133 of the Act, read with Companies
(Indian Accounting Standards) Rules, 2015, as
amended.

e) On the basis of the written representations
received from the directors as on
31st March, 2025 taken on record by the
Board of Directors, none of the directors is
disqualified as on 31st March, 2025 from being
appointed as a director in terms of Section 164
(2) of the Act.

f) With respect of the adequacy of the Internal
Financial Controls over Financial Reporting of
the company and its operating effectiveness
of such controls, refer to our separate report
in “Annexure B”.

g) 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 Auditor''s 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 standalone Ind AS financial
statements.

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

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

iv. (a) The management has represented

that, to the best of its knowledge and
belief, other than as disclosed in the
notes to the accounts, no funds have
been advanced or loaned or invested
(either from borrowed funds or share
premium or any other sources or kind
of funds) by the company to or in any
other person or entity, 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, other than as disclosed in the
notes to the accounts, no funds have
been received by the company from
any person or entity, 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 audit procedures which we
considered reasonable and appropriate
in the circumstances, nothing has come
to their notice that has caused them to
believe that the representations under
sub-clause (i) and (ii) contain any
material misstatement.

v. The company has not declared or paid any
dividend during the year in contravention
of the provisions of section 123 of the
Companies Act, 2013.

i) Based on our examination carried out in
accordance with the Implementation Guidance
on Reporting on Audit Trail under Rule 11(g)
of the Companies (Audit and Auditors)
Rules,2014 (Revised 2024 Edition) issued
by the Institute of Chartered Accountants of

India, which included test checks, we report that the company has used an accounting software for
maintaining its books of account which has a feature of recording audit trail (edit log) facility and
the same has operated throughout the year for all relevant transactions recorded in the software.
Further, during the course of our audit we did not come across any instance of audit trail feature
being tampered with. Our examination of the audit trail was in the context of an audit of financial
statements carried out in accordance with the Standard of Auditing and only to the extent required
by Rule 11(g) of the Companies (Audit and Auditors) Rules,2014. We have not carried out any audit
or examination of the audit trail beyond the matters required by the aforesaid Rule 11(g) nor have
we carried out any standalone audit or examination of the audit trail.”

j) With respect to the matter to be included in the Auditors'' Report under Section 197(16) of the Act, in
our opinion and according to the information and explanations given to us, the remuneration paid
to the directors during the year is in accordance with the section 197 of the Act. The remuneration
paid to any director is not in excess of the limit.

For A.R. KRISHNAN & ASSOCIATES

Chartered Accountants

FRN:009805S

B. Anandaramakrishnan
Partner

Place: Chennai Membership No.: 209122

Date: 29/05/2025 UDIN : 25209122BMKVLN1720

---

Mar 31, 2024

We have audited the accompanying standalone Ind AS financial statements of Sharat Industries Limited ("the Company"), which comprise the Balance Sheet as at 31st March 2024, the Statement of Profit and Loss (including other comprehensive income) for the year then ended, the Cash Flows and the Statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "the standalone Ind AS 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 ("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 affairs of the Company as at 31^st March, 2024, the profit for the year ended on that date total comprehensive income, its cash flows and the changes in equity for the year ended on that date.

Basis of 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 Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor''s 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 together with the Ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Companies Act, 2013 and the Rules there under, 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 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 financial statements of the current period. 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 have determined that there are no key audit matters to communicate in our report.

Information other than the financial statements and auditors'' report thereon

The Company''s board of directors is responsible for the preparation of the other information. The other information comprises the information included in the Board''s Report including Annexures to Board''s Report, Business Responsibility Report but does not include the financial statements and our auditor''s 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 standalone 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.

Management''s Responsibilities for the Standalone Financial Statements

The Company''s Board of Directors is responsiblefor the matters stated in section 134(5) oftheCompanies Act 2013, with respect to the preparationofthese standalone financial statements that give a true and fair view of the financial positionandfinancial performance, of the Company in accordance with the Accounting Principles generally accepted in India, including the Accounting Standardsspecified 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 the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accountingpolicies;making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectivelyfor ensuring theaccuracyand completenessof the accountingrecords, relevant to thepreparationand presentation of the standalone financialstatements that give a true andfair view and are free from material misstatement, whether due to fraud or error. In preparing thestandalone financial statements, management is responsible for assessing the Company''s ability tocontinueas 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 ceaseoperations,or hasnorealistic alternative but to do so. The Board of Directors are responsible for overseeing the Company''s financial reporting process.

Auditor''s 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 auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably beexpectedto influencethe economic decisions of users taken on the basis of these standalonefinancialstatements.

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

• Identify and assess the risks of material misstatement of the standalone financial statements,whetherdueto fraudor error,design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide abasisfor our opinion. The riskof not detecting amaterial misstatement resulting from fraud is higher thanfojurone resultingfromerror, asfraudmay involve collusion, forgery,intentionalomissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal 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 onwhether theCompany has adequate internal financial controls system in place and the operatingeffectiveness ofsuchcontrols.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures madebymanagement.

• Conclude on the appropriateness of management''s use of the going concern basis ofaccounting and,based on the auditevidence obtained,whetheramaterial uncertainty exists related to events or conditions that may cast

significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosure are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s 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 effect of any identified misstatements in the financial statements.

We also communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings 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 period and are therefore the key

audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by Section 143 (3) of the Act, we report that:

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

b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet, the Statement of Profit and Loss including other comprehensive income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended.

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

f) With respect of the adequacy of the Internal Financial Controls over Financial Reporting of the company and its operating effectiveness of such controls, refer to our separate report in "Annexure B".

g) 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 Auditor''s 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 standalone Ind AS financial statements.

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

iii. There were no amounts whichwererequired to be transferred to the Investor Education and Protection Fund.

iv. (a) The management has represented that,

to the best of its knowledge and belief, otherthanasdisclosed in thenotesto the accounts, nofunds have beenadvancedor loanedor invested (either fromborrowed funds or share premium or any other sources or kindoffunds) by the company to orin anyother personor entity, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that theIntermediary 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 anyguarantee, security or the like on behalf of the UltimateBeneficiaries;

(b) The management has represented, that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been receivedby the company from any person or entity, including foreign entities ("Funding

Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or i ndirectly, 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 audit procedures which we considered reasonable and appropriate in the circumstances, nothing has come to their notice that has caused them to believe that the representations under sub-clause(i)and(ii) contain any material misstatement.

v. The company has not declared or paid any dividend during theyear incontravention of the provisionsofsection123oftheCompanies Act, 2013.

i) Based on our examination carried out in accordance with the ImplementationGuidance on Reporting on Audit Trail under Rule 11(g) of the Companies(AuditandAuditors) Rules,2014 (Revised 2024 Edition)issued bytheInstituteof Chartered Accountants ofIndia,whichincluded test checks, we report thatthe companyhas used an accounting software for maintaining itsbooks ofaccountwhichhasafeatureofrecordingaudit trail(edit log) facilityand the same hasoperated throughoutthe year forallrelevanttransactions recorded in the software. Further, during the course ofour audit wedid notcomeacrossany instance of audit trail feature being tampered with. Our examination of the audit trail was in the context of anaudit of financial statements carried outin accordancewiththe Standard of Auditing and onlyto theextent requiredbyRule 11(g) of the Companies (Audit and Auditors) Rules,2014. We havenot carriedoutanyaudit or examination of theaudittrail beyondthematters required by the aforesaid Rule 11(g) nor have we carried outanystandalone audit or examination oftheaudittrail."

j) With respect to the matter to be included in the Auditors'' Report under Section 197(16) of the Act, in our opinion and according to the information and explanations given to us, the remuneration paid to the directors during the year is in accordance with the section 197 of the Act. The remuneration paid to any director is not in excess of the limit.

For A.R.KRISHNAN & ASSOCIATES

Chartered Accountants

FRN:009805S

B. Anandaramakrishnan Partner

Place: Chennai Membership No.: 209122

Date: 28/05/2024 UDIN : 24209122BKEPRU9161

---

Mar 31, 2023

We have audited the accompanying standalone Ind AS financial statements of Sharat Industries Limited ("the Company"), which comprise the Balance Sheet as at 31st March 2023, the Statement of Profit and Loss (including other comprehensive income) for the year then ended, the Cash Flows and the Statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "the standalone Ind AS 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 ("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 affairs of the Company as at 31st March, 2023, the profit for the year ended on that date total comprehensive income, its cash flows and the changes in equity for the year ended on that date.

Basis of 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 Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor''s 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 together with the Ethical requirements that are

relevant to our audit of the standalone financial statements under the provisions of the Companies Act, 2013 and the Rules there under, 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 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 financial statements of the current period. 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 have determined that there are no key audit matters to communicate in our report.

Information other than the financial statements and auditors'' report thereon

The Company''s board of directors is responsible for the preparation of the other information. The other information comprises the information included in the Board''s Report including Annexures to Board''s Report, but does not include the financial statements and our auditor''s 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 standalone 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.

Management''s Responsibilities for the StandaloneFinancialStatements

The Company''s Board of Directors is responsible for themattersstatedinsection134(5)oftheCompanies Act 2013, with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position andfinancial performance, of the Company in accordance with the Accounting Principles generally accepted in India, including the AccountingStandards 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 the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies;makingjudgements and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuringtheaccuracyand completeness of the accountingrecords,relevantto the preparation and presentation ofthe standalone financial statements 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 Company''s ability to continue as a going concern, disclosing, asapplicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. The Board of Directors are responsible for overseeing the Company''s financial reporting process.

Auditor''s Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whetherthe standalone financialstatements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a highlevel of assurance, but is not a guarantee that anauditconducted 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 judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone financial statements,whetherduetofraudor 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 amaterial 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 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 theCompany has adequate internal financialcontrolssysteminplaceand the operating effectivenessofsuchcontrols.

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

• Conclude ontheappropriatenessofmanagement''s useofthe goingconcern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists relatedto events or conditionsthat may cast significantdoubton the Company''sability tocontinue asa going concern. Ifweconclude thatamaterialuncertainty exists, we are requiredto draw attention in our auditor''s reportto therelated disclosuresin 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 auditor''s 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 effect of any identified misstatements in the financial statements.

We also communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings 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 period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory

Requirements

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

2. A) As required by Section 143 (3) of the Act, we

report that:

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

b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet, the Statement of Profit and Loss including other comprehensive income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended.

e) On the basis of the written representations received from the directors as on 31st March, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2023 from being appointed as a director in terms of Section 164 (2) of the Act.

f) With respect of the adequacy of the Internal Financial Controls over Financial Reporting of the company and its operating effectiveness of such controls, refer to our separate report in "Annexure B".

B) With respect to the other matters to be included in the Auditor''s 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 disclosedtheimpact on pending litigations onitsfinancial position in the standalone financialstatements-Refer Note 30 to the standalone financial statements.

ii. The Company did nothave any long-term contracts including derivative contracts for which there were any material foreseeable losses.

iii. There were no amounts which were required to be transferredto theInvestor Education and Protection Fund.

iv. (a) The management has represented

that, to the best ofitsknowledgeand belief, other than asdisclosed in the notes totheaccounts, no fundshave been advanced orloanedor invested (either from borrowedfundsorshare premium orany other sourcesor kind of funds) by the company to or in anyotherperson or entity, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediaryshall, whether, directly or indirectlylend orinvestin 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 behalfofthe UltimateBeneficiaries;

(b) The management has represented, that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been received by the

company from any person or entity, 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 identifiedinany 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 audit procedures which we considered reasonable and appropriate in the circumstances, nothing has come to their notice that has caused them to believe that the representations undersub-clause(i)and (ii)contain any material misstatement.

v. Thecompanyhasnot declared orpaid any dividendduringtheyear incontravention of the provisions of section 123 of the Companies Act, 2013.

(C) With respecttothematter to be included in the Auditors'' Report under Section 197(16) of the Act,in our opinion and according to the information and explanations given to us, the remuneration paid to the directors during the year is in accordance with the section 197 of the Act. The remuneration paidto any directorisnotinexcess ofthelimit.

ForA.R.KRISHNAN &ASSOCIATES Chartered Accountants FRN:009805S

A.SENTHILKUMAR

Partner

M.No.:214611

UDIN:23214611BGUXJY8310

Place:Chennai

Date:30/05/2023

---

Mar 31, 2014

We have audited the accompanying financial statements of M/s. SHARAT INDUSTRIES LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2014, Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"), (which continues to be applicable in respect of section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs) and in accordance with the accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control 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.

Auditors'' Responsibility

Our responsibility is to express an opinion on these financial statements based on our au- dit. We conducted our audit in accordance with Standards on Auditing issued by the Insti- tute of Chartered Accountants of India. Those standards require that we comply with ethi- cal requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. 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. In making those risk assessments, the auditors consider internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting poli- cies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to pro- vide a basis for our qualified audit opinion.

IV. Basis for Qualified Opinion

In respect of Post Retirement Benefits viz. Gratuity, as per Accounting Standard-15 issued by the Institute of Chartered Accountants of India, the Company should make provision on actuarial basis every year towards liability for future payment of gratuity. However the Company has been following the policy of charging such gratuity payment to Statement of Profit and Loss in the year in which such payments are made. Such accounting treatment is not in accordance with the Accounting Standard referred above. In the absence of details we are unable to comment on the effect of such non-provision on the profits for the year and net worth of the Company.

In respect of some creditors, trade debtors and advances recoverable, there are neither confirmations of the year-end balances nor reconciliation of the accounts. In the absence of such confirmations / reconciliations, we are unable to comment on the effect of such accounts on the profit of the Company for the year, year-end balances of trade debtors, trade creditors and advances recoverable and on the net worth of the Company.

In the preceding year, a claim for''. 179.56 lakhs made on the Company by a Contractor has been upheld by the lower court and the Company has challenged the same in A.P. High Court. In our opinion, on the principle of prudence the liability should have been provided for in the books. If such provision had been made the short-term liabilities would be higher by '' 179.56 lakhs and the net worth would be lower by '' 179.56 lakhs.

V. Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion para- graph, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) . in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;

b) in the case of the Statement of Profit and Loss, of the Profit for the year ended on that date; and

c) in the case of Cash Flow Statement, of the cash flows for the year ended on that date.

VI. Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003, as amended by the Companies (Auditor''s Report) (Amendment) Order, 2004 (together "the Order"), issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that:

a) We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purpose of our audit;

b) In our opinion, proper Books of Account as required by law have been kept by the Company so far as appears from our examination of those books;

c) The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the Books of Account;

d) Except for the effects / possible effects of the matter described in the Basis for Qualified Opinion paragraph, in our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Act read with the General Circular 15/ 2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013;

e) On the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the directors is dis qualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Act.

ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT OF SHARAT INDUSTRIES LIMITED

(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)

Based on the information and explanations furnished to us and the books and records examined by us in the normal course of our audit, we report that to the best of our knowl- edge and belief:

1. In respect of its fixed assets:

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

b) The fixed assets have been physically verified by the management and no material discrepancies were noticed on such verification.

c) No substantial part of its fixed assets was disposed of during the year so as to affect its going concern status.

2. In respect of inventories of finished goods, work in process, raw materials, stores and spares:

a) Physical verification of inventory has been conducted by the management at regular intervals.

b) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c) The Company has maintained proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records are not material and the same have been properly dealt with in the Books of Account.

3. In respect of loans, secured or unsecured, from / to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956:

a) During the year, the Company has not taken / granted any Secured / unsecured loan from / to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

4. In respect of internal control procedures:

a) There are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of fixed assets. We have not observed any major weaknesses in the internal controls during the course of audit.

5. In respect of transactions that need to be entered into a register in pursuance of section 301 of the Companies Act:

a) The particulars of transactions referred to in Section 301 of Companies Act, 1956, that need to be entered in the Register maintained under said section, have been so entered.

b) Where each of such transactions is in excess of''. 5 lakhs in respect of any party, the transactions have been made at prices which are prima facie reasonable, having regard to the prevailing market prices at the relevant time.

6. In respect of public deposits:

a) The Company has not accepted any deposits from the public. Therefore, the pro visions of section 58A and 58AA of the Companies Act, 1956 and Companies (Acceptance of Deposits) Rules, 1975, are not applicable to the Company.

7. In respect of internal audit system:

a) In our opinion, the Company has an internal audit system commensurate with its size and the nature of its business.

8. In respect,of cost records:

a) The Central Government of India has prescribed for the Company the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 in respect of certain manufacturing activities of the Company. We have broadly reviewed the accounts and records of the Company in this connection and are of the opinion, that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, carried out a detailed examination of the same.

9. In respect of statutory dues:

a) The Company has been generally regular in depositing with appropriate authorities, undisputed statutory dues including Provident fund, Income Tax, Sales Tax and other statutory dues applicable. No undisputed dues payable in respect of Income Tax and Sales Tax were in arrears, as at March 31, 2014 for more than six months from the date they become payable.

b) There are no dues of Sales Tax, Income Tax and other applicable statutory dues as at March 31, 2014 which have not been deposited on account of a dispute except the following:

Amount Forum where the Dispute is Financial in Lakhs) pending Name of the Statute year

In the High Court of Judicature of Customs Act, 1962 2004-2005 76.31 Andhra Pradesh at Hyderabad.

Service Tax Act, 1994 2006 to2010 14.04 CESTAT, Bangalore

10. In respect of its losses:

a) The Company, as adjusted after taking into account the qualifications in the audit report to the extent the qualifications are quantified, does not have any accumulated losses as at March 31, 2014 and has not incurred cash losses during the financial year ended on that date and in the immediately preceding financial year.

11. In respect of repayment of dues to banks, financial institutions and debentures holders

a) The Company has not issued any debentures nor borrowed from financial institutions. In respect of dues to banks, the Company is generally regular in adhering to the terms of repayment.

12. In respect of loans on the basis of security by way of pledge of shares, debentures and other securities:

a) The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In respect of applicability of any special statutes:

a) The Company is not a chit fund / nidhi / mutual benefit fund / society.

14. In respect of dealing in shares, securities, debentures and other investments:

a) The Company has not dealt / traded in shares, securities and debentures during the year.

15. In respect of guarantees given for loans taken by others from banks or financial institutions:

(a) The Company has not given guarantees for loans taken by others from banks or financial institutions.

16. In respect of utilization of term loans:

a) The Company has not obtained any term loans during the year.

17. In respect of utilization of funds raised on short-term basis:

a) In our opinion and according to the information''and explanations given to us, there are no funds raised on a short term basis which have been used for long term investment.

18. In respect of preferential allotment of shares:

a) During the year, the Company has not made any preferential allotment of shares other than the application money returned to a group of investors.

19. In respect of security and charge created against debentures: a) The Company has not issued any debentures during the year.

20. In respect of public issues:

a) The Company has not raised any money by way of public issues during the year.

21. In respect of frauds:

a) In our opinion and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the period that causes the financial statements to be materially misstated.

for P.A. REDDY & Co., Chartered Accountants FRN: 007368S

{SO} P.ASHOK REDDY Place: Nellore Partner Date : 05.09.2014 M. No.: 023202