Shubhlaxmi Jewel Art Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2025

We have audited the accompanying financial statements of Shubhlaxmi Jewel Art Limited ("the
Company") which comprise the Balance Sheet as at 31^st March 2025, the statement of profit and loss and
the statement of cash flows for the year then ended and notes to the financial statements, including a
summary of the significant accounting policies and other explanatory information (hereinafter referred to
as "the financial statements").

In our opinion and to the best of our information and according to the explanations given to us, except for
the effects of the matters described in the Basis for Qualified Opinion paragraph below, the aforesaid financial
statements give the information required by the Companies Act, 2013 ("the Act") in the manner so
required and give a true and fair view in conformity with the accounting principles generally accepted in
India, of the state of affairs of the Company as at 31^st March 2025 and of the profit and its cash flows for the
year ended on that date.

Basis for Qualified Opinion

Attention is invited to Note No. 26 regarding physical verification and valuation of the inventory and
inadequate audit evidences in respect thereof. The impact on the profit for the year, if any, is not
ascertainable.

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

Emphasis of Matters

We draw attention to the following matters:

i. Note no. 32 may be referred in respect of a litigation wherein the Company is made one of the

parties for a claim of Rs. 535.00 lacs which is not acknowledged by the Company.

ii. Note no. 28 may be referred in respect of balanced confirmations from various parties.

iii. Note no. 31, certain unsecured loans taken by the Company are subject to compliance with
section 73 of the Companies Act. 2013.

Our opinion is not modified in respect of these matters.

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 our forming our opinion thereon, and we do not
provide a separate opinion on these matters.

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

Revenue recognition

Revenue is measured net of discounts, incentives, rebates etc. earned by the customers on the Company''s
sales. Due to competitive business .environment, discounts, incentives and rebates to be recognized based
on sales made during the year is material.

Auditor''s response:

Our audit approach was a combination of test of internal controls and substantive procedures including
assessing the appropriateness of the Company''s revenue recognition accounting policies and testing
thereof; evaluating the integrity of the general information and control environment and testing the
operating effectiveness of key controls.

Information Other than the Financial Statements and Auditor''s 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, Management Discussion and Analysis, Shareholder''s Information, but does not include the
financial statements and auditor''s report thereon. The Board''s Report and other information are expected
to be made available to us after the date of this auditor''s report.

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
identified above when it becomes available 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.

When we read the aforesaid reports and information, if we conclude that there is material misstatement
therein, we are required to communicate the matter to those charged with governance.

Management''s Responsibility for the Financial Statements

The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with
respect to the preparation of these financial statements that give a true and fair view of the financial
position, financial performance 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
statements that give a true and fair view and are free from material misstatement, whether due to fraud or
error.

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

The Board of Directors is also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibility for the Audit of the Financial Statements

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

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

• Identify and assess the risks of material misstatements 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 the internal control.

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

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by 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 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 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 financial statements, including the
disclosure, and whether the financial statements represent the underlying transactions and events
in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.

From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of 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 preclude
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 (Auditor''s Report) Order, 2020 ("the Order") issued by the Central

Government of India terms of sub-section (11) of section 143 of the Act, we give in the Annexure -

A, a statement on the matters specified in clause 3 and 4 of the Order, to the extent applicable.

2. 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 purpose of our audit except for information
on inventories and non-receipt of the balance confirmation from the respective parties as stated in
note no. 26 and 28 respectively;

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

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

d) In our opinion, the aforesaid financial statements comply with the Accounting Standards
specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014;

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

f) With respect to the adequacy of internal financial controls over financial reporting of the
Company and operating effectiveness of such controls, our separate report in annexure - B
may be referred;

g) Remuneration paid by the Company to its directors during the year is in accordance with
the provisions of section 197 read with schedule V of the Act.

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

i. Except for the possible effect of the matter described in sub-paragraph (iii) of the
Emphasis of Matters above, the Company does not have any pending litigations
which would impact its financial position;

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

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

iv. a. The Management has represented that, to the best of its knowledge and belief,

as disclosed in the note no. 25(!) 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,
as disclosed in the note no. 25(j) 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;

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

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v. The Company has not declared or paid any dividend during the year.

vi. Based on our examination which included compliance test and test checks, the
Company has implemented the accounting software for maintaining books of
account during the year which has a feature of recording audit trail (edit log)
facility and the same has been operated for all transactions recorded in the
software after implementation. Further, during the course of our audit, we did not
come across any instance of audit trail feature being tampered with and the audit
trail has been preserved by the Company as per the statutory requirements for
record retention.

*

For SANGHAVI & COMPANY
Chartered Accountants
FRN: 109099W

MANOJ GANATRA
Partner

Membership No. 043485
¦ UDIN: 25043485BMJMJK7862

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Mar 31, 2024

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