Auditor Report of Baheti Recycling Industries Ltd.

Mar 31, 2025

We have audited the accompanying standalone Financial Statements of BAHETI RECYCLING
INDUSTRIES LIMITED (CIN: L37100GJ1994PLC024001) ("the Company") which comprises the
Balance Sheet as at 31st March,2025, the statement of Profit and Loss and the Cash Flow Statement
for the year ended and notes to the standalone financial statement, including a summary of
significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us,
the aforesaid standalone financial statements give the information required by the Companies Act,
2013 ("the Act") in the manner so required and give a true and fair view in conformity with the
Accounting Standards Specified under Section 133 of the Act read with the Companies (Accounting
Standard) Rules, 2021("AS") and other accounting principles generally accepted in India, of the
state of affairs of the Company as at 31*March,2025, and its profit and its 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. 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 (ICAI) together with the ethical requirements that are
relevant to our audit of the Financial Statements under the provisions of the Companies Act,2013
and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and Code of Ethics. We believe that the audit evidence obtained is sufficient and
appropriate to provide a basis for our opinion.

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 do not provide a separate opinion on these matters.

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

Key Audit Matters	How the matter was addressed in our audit Our audit procedure:
A. Revenue Recognition	1. We assessed the appropriateness of the revenue
1. The Company''s revenue is principally derived from sale of aluminum prod¬	recognition accounting policies by comparing them with
	applicable Accounting Standards (AS).
ucts viz. Cubes and Alloy Ingots. Rev¬	2. Evaluated the process followed by the management
enue from sale of goods is recognized	for revenue recognition including understanding and
when control of the products being	testing of key controls related to recognition of revenue
sold is transferred to the customer and when there are no other unful¬	in current period.
filled obligations.	3. Performed substantive testing on samples selected using statistical sampling of revenue transactions, recorded
2. Revenue is the consideration received	during the year by testing the documents to determine
or receivable after deduction of any trade/volume discounts and taxes or	whether revenue has been recognized correctly.
duties collected. Hence, we identified	4. Performed other substantive procedures obtaining
revenue recognition as a key audit	Debtor Confirmations on sample basis and reconciling
matter since revenue is significant	same with revenue recorded during the year, also
to the financial statements and is re¬ quired to be recognized as per the re¬ quirements of the applicable account¬ ing framework.	reconciling revenue recorded with statutory filing.
B. Inventory Existence and Valuation	Our audit procedure:
1. The Company Purchases aluminium	1. Ontain Understanding of the Inventory segregation
scrap and undertakes a complex	process and assess the design and implementation of
sorting process to segregate it into various constituent metals, which	related internal controls.
are generally used in manufacturing	2. Observed on sample basis the procedure followed by
process. The Inventory comprises	management for sorting and weighing metals.
a large number of distinct metal	3. Performed test check on inventory records and valuation
types with varying physical and	calculation to verify compliance with applicable
chemical properties, necessitating significant manual intervention and	accounting standard.
technical expertise in the sorting and	4. Evaluated the appropriateness of disclosures made in
measurement process.	financial statements.
2. Due to variety of products, manual nature of segregation, reliance on physical observations and tests, and involvement of specialised knowledge for quality grading and quantity estimation, there exists a risk of misstatement in inventory valuation and quantity determination. The process involves significant judgement and estimates, especially in classifying metals and determining their respective weights and recoverable values.	5. We observe the physical verification process.

3. This area was significant to our audit

due to the magnitude of inventory

balances and inherent complexity

and subjectivity in the process, which

required extensive audit effort, including

review of internal controls over

physical verification and segregation

procedures.

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 Report including Annexure to Board''s Report,
Management Report but does not include the Financial Statements and our auditor''s report thereon.

Our opinion on the Standalone 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 Standalone Financial Statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent
with the standalone Financial Statements or our knowledge obtained during the course of our audit or
otherwise appears to be materially misstated. 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.

Responsibilities of the Management and Those Charged with Governance 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 ("the Act") with respect to preparation and presentation 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 the 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 the frauds
and other irregularities; selection and application of appropriate accounting policies; making judgment
and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate
internal financial control that were operating effectively for ensuring the accuracy andcompleteness of
accounting records, relevant to preparation and presentation of 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, the Board of Directors 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 the Board of Director either intends to liquidate the
Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company''s financial reporting process.

Auditors'' Responsibilities for the Audit of the standalone 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 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. Mis¬
statements 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 SA''s, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also: -

• Identify and assess the risks of material misstatement of the standalone Financial Statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the over¬
ride of internal control.

• Obtain an understanding of internal financial control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies
Act,2013, 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 es¬
timates 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 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, in¬
cluding 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 standalone 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 standalone financial
statements.

We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit. We also provide those charged with governance
with a statement that we have complied with relevant ethical requirements regarding independence,
and to communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the standalone Financial Statements of the current
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 (Auditor''s 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" a statement on the matters specified in paragraphs
3 and 4 of the Order, to the extent applicable.

2. As required by section 143(3) of the Act, we further 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;

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 books except for the matters stated for reporting under Rule
11(g) of the Companies (Audit and Auditors) Rules, 2014 with respect to maintenance of Audit Trail
for part of the year.The Balance Sheet, Statement of Profit and Loss and the Cash Flow Statement
dealt with by this Report are in agreement with the books of account of the company;

c) In our opinion, the aforesaid 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

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

e) With respect to adequacy of internal financial controls over financial reporting of the company and
the operating effectiveness of such controls, refer to our separate report "Annexure B".

f) With respect to the other matters to be included in the auditor''s report in accordance with the
requirements of section 197(16) of the Companies Act,2013, as amended, in our opinion and to
the best of our information and explanation given to us, the remuneration paid by company to its
directors during the year is in accordance with provisions of section 197 of the act.

g) With respect to 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:

h)

i) The Company has disclosed the impact of pending litigations on its financial positions in its 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 required to be transferred to the Investor Education and Protection
Fund by the Company.

(iv)

(d) The Management has represented that, to the best of its knowledge and belief, no funds have
been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the Company to or in any other persons or entities, 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;

(e) The Management has represented to us that, to the best of its knowledge and belief, no funds
have been received by the Company from any person(s) or entity (ies), including foreign
entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise,
that the Company shall, whether, directly or indirectly, lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate
Beneficiaries")

or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
and

(f) Based on the audit procedures adopted that have been considered reasonable and
appropriate in the circumstances, nothing has come to our notice that has caused us
to believe that the representation made by the management under sub clause (a) &
(b) above, contain any material misstatement.

(v) In our opinion Company has complied with section 123 of the Companies Act, 2013
with respect to dividend declared/paid during the year.

(vi) The Company implemented audit trail functionality in its accounting software from mid
of the year. Further, during the course of our audit we did not come across any instance
of audit trail feature being tampered with from the date from which it is implemented.
As the functionality was not available for the earlier part of the financial year, our
procedure relating to audit trial were confined to the period after its implementation.

For, Jeevan Jagetiya & Co

Chartered Accountants

FRN: - 121335W

CA Jeevan Jagetiya

(Partner)

M. No. 046553

UDIN: 25046553BMKQGU2846

Date: 05^th May, 2025

Place: Ahmedabad

---

Mar 31, 2024

The Members of BAHETI RECYCLING INDUSTRIES LIMITED (Formerly known as Baheti Metal and Ferro Alloys Ltd.)

Ahmedabad

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone Financial Statements of BAHETI RECYCLING INDSUTRIES LIMITED (CIN: L37100GJ1994PLC024001) ("the Company”) which comprises the Balance Sheet as at 31st March,2024, the statement of Profit and Loss and the Cash Flow Statement for the year ended and notes to the standalone financial statement, including a summary of significant accounting policies and other explanatory information.

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 byjthe 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^sl March,2024, and its profit and its 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. Our responsibilities under those Standards are further described irixthe ‘Auditor’s Responsibilities for the Audit of the Standalone 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 Companies Act,2013 and the Rules thereunder, and we have fulfilled our other ethical

_____ responsibilities in accordance with these requirements and Code of Ethics. We

believe that the audit evidence obtained is sufficient and appropriate to provide a basis for our opinion.

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 do not provide a separate opinion

on these matters. We have determined the matter describe below to be key audit ^_

matter to be communicated below.

We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the Financial Statements section of our report, including in relation to these matters. Accordingly, our audit included the performance to these procedures designed to respond to our assessment of the risk of the 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.

Key Audit Matters	How the matter was addressed in our audit —
A. Revenue Recognition 1. The Company’s revenue is principally derived from sale of aluminum products viz. Cubes and Alloy Ingots. Revenue from sale of goods is recognized when control of the products being sold is transferred to the customer and when there are no other unfulfilled obligations. 2. Revenue is the consideration received or receivable after deduction of any trade/volume discounts and taxes or duties collected. Hence, we identified revenue recognition as a key audit master since revenue is significant to The financial statements and is required to be recognized as per the requirements of the applicable accounting framework.	Our audit procedure: 1. We assessed the appropriateness of the revenue recognition accounting policies by comparing them with applicable Accounting Standards (AS). 2. Evaluated the process followed by the management for revenue recognition including understanding and testing of key controls related to recognition of revenue in current period. 3. Performed substantive testing on samples selected using statistical sampling of revenue transactions, recorded during the year by testing the documents to determine whether revenue has been recognized correctly. 4. Performed other substantive procedures obtaining Debtor Confirmations on sample basis and reconciling same with revenue recorded during the year, also reconciling revenuer recorded with statutory filing.
B. Inventory Existence and Valuation 1. There are complexities and manual process involved in determining inventory quantities on hand and valuation of the same due to the company’s diverse and	Our audit procedure: l.We have attended inventory counts, which we selected based on financial significance and risk, observed management''s inventory count procedures to assess the

numerous inventory products and work in		effectiveness, selected a sample of inventory
progress at different stages of	the	products and compared the quantities
processes at manufacturing	unit.	counted to the quantities recorded and
Therefore, inventory quantities	and	ensured inventory adjustments, if any, are
valuation is identified as a key matter. \	audit	recorded in books of accounts. 2. Assessed whether the management’s internal controls relating to ihventory’s valuation are appropriately designed and implemented. 3. Discussed with the management on the management’s process of identifying the stages of completion and valuing work in progress stock at the time of book closure proceeds. 4. Verified the correctness of valuation made by the management on a sample basis, with regard to the cost andtiet realizable value of inventory.

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 copprises the information included in the Board Report including Annexure to Board’s Report,,Management Report but does not include the Financial Statements and our auditor’s report thereon.

Our opinion on the Standalone 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 Standalone Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Management and Those Charged with Governance 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 (“the Act”) with respect to preparation and presentation 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 the 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 the frauds and other irregularities; selection and application of appropriate accounting policies; making judgment and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial control that were operating effectively for ensuring the accuracy and completeness of accounting records, relevant to preparation and presentation of 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, the Board of Directors 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 the Board of Director either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the standalone 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 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 thesd Financial Statements.

As part of an audit in accordance with SA’s, we exercise professional judgment and maintain professional skepticism throughout tlmaudit. 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 errorTas 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 Companies Act,2013, 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 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.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone Financial Statements of the current period qnd 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 comnfunicated 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 in terms of sub-section (11) of section 143 of the Companies Act, 2013, 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. As required by section 143(3) of the Act, we further 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;

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 books except for the matters stated for reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 with respect to maintenance of Audit Trail.

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

d) In our opinion, the aforesaid 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

e) On the basis of written representations received from directors as on 31^st March,2024,

taken on record by the Board of Directors, none of the director is disqualified as on March 31, 2024, from being appointed as a director in terms of section 164 (2) of the Act. ’

f) With respect to adequacy of internal financial controls over financial reporting of the

company and the operating effectiveness of such controls, refer to our separate report "Annexure B”. ^

g) With respect to the other matters to be included in the auditor’s report in accordance with the requirements of section 197(16) of the Companies Act,2013, as amended, in our opinion and to the best of our information and explanation given to us, the remuneration paid by company to its directors during the year is in accordance with provisions of section 197 of the act.

h) The modification relating to maintenance of accounts and other matters connected there with are as stated in paragraph above on reporting under Section 143(3)(b) of the Act and reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.

i) With respect to 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:

l ~

i) The Company has disclosed thq impact of pending litigations on its financial positions in its financial statements- Refer Note 29.2 to the financial statements:

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

iii) There were no amounts which 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, 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 persons or entities, including fqreign 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 to us that, to the best of its knowledge and

belief, no funds have been received by the Company from any person(s) or entity (ies), including foreign entities ("Funding Parties”), with the understanding,

whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

" j

(c) Based on the audit procedures adopted that have been considered r^&sonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representatiop made by the management under sub clause (a) & (b) above, contain any material! misstatement.

(v) The Company has not declared or paid amrtlivid^nd during the year. Therefore, compliance of the provisions of section 123 of the Act is not applicable.

3. The company has used an accounting software for maintaining its books of account which have a feature of recording audit trail (edit log) facility but the same is not enabled by the Company for whole of the year. Hence the company has not complied with Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility as applicable to the Company with effect from April 1, 2023. ¦

\

For, Jeevan Jagetiya & Co

Chartered Accountants

FRN: - 121335W

/J*) ''21335w\p n

l ^ J '' AHME0AB«0 J*J)

CA Jeevan Jagetiya

(Partner)

M. No. 046553

UDIN: 240465 53BKEXRD7089

Date: 30^th May, 2024

Place: Ahmedabad

---

Mar 31, 2023

BAHETI RECYCLING INDUSTRIES LIMITED

(Formerly known as: Baheti Metal & Ferro Alloys Pvt Ltd)

Ahmedabad

Opinion

We have audited the financial statements of BAHETI RECYCLING INDUSTRIES LIMITED (‘The Company’) which comprise the Balance Sheet as at 31st March, 2023, the statement of Profit and Loss and the Cash Flow Statement for the year ended on 31^st March, 2023, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Financial Statements give the information required by the Companies Act, 2013 as amended ("the act”) in the manner so required and give a true and fair view in conformity with the Accounting Standards prescribed under section 133 of the Act read with Companies (Accounting Standards) Rules, 2015, as amended ("AS”) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, and profit/loss account and its cash flows for the year ended on that date.

Basis of Opinion

We conducted our Audit of the Financial Statements in accordance with the Standards on Auditing (SAs), as 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 there under, 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 obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the Financial Statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of utmost 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 do not provide a separate opinion on these matters. For matter below, our description of how our audit addressed the matter is provided in that context.

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 Auditor’s responsibilities for the audit of the Financial Statements section of our report, including in relation to these matters. Accordingly, our audit included the performance to these procedures designed to respond to our assessment of the risk of the 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.

Key Audit Matters

How the matter was addressed in our audit

Revenue Recognition Revenue from sale of goods is recognized when control of the products being sold is transferred to the customer and when there are no other unfulfilled obligations. The performance obligations in the contracts are fulfilled at the time of dispatch, delivery or upon formal customer acceptance depending on customer terms. We identified revenue recognition as a key audit matter because the Company and its external stakeholders focus on revenue as a key performance indicator. This could create an incentive for revenue to be overstated or recognized before control has been transferred.

In view of the significance of the matter we applied the following audit procedures in this area, among other procedures, to obtain sufficient appropriate audit evidence: 1. We assessed the appropriateness of the revenue recognition accounting policies and its compliances with applicable Accounting Standards. We read the contracts with customer, distributors, franchisees etc. to determine appropriateness of revenue recognition. 2. We evaluated the design of key internal financial controls and operating effectiveness of the relevant key controls with respect to revenue recognition on selected transactions.

Information Other than the Financial Statements and Auditor’s Report Thereon

The Company’s Board of Directors are responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Board’s Report including Annexures to Board’s Report, Business Responsibility Report and Shareholder Information, 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 Financial Statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

When we read the other information identified above, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

Management and Board of Directors Responsibility for the Financial Statements

The Company’s Board of Directors are responsible for the matters stated in section 134(5) of the Companies Act, 2013 ("the Act”) with respect to preparation of these Financial Statements that give a true and fair view of the financial position, financial performance including cash flows in accordance with the Accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the act, read with companies (Accounting Standards) Rules, 2015, as amended. This responsibility also includes the 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 the frauds and other irregularities; selection and application of appropriate accounting policies; making judgment and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal control that were operating effectively for ensuring the accuracy and completeness of accounting records, relevant to preparation of 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 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 also responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 Financial Statements.

As part of an audit in accordance with SA’s, 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 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. (Annexure B is our Report on Internal Financial Control).

• 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 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 disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Financial Statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Financial Statements.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of utmost significance in the audit of the Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our 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 (Auditor’s 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” 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 further 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;

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, Statement of Profit and Loss and 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 referred under section 133 of the Act, read with Companies (Accounting Standards) Rules, 2015, as amended;

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

f) We have also audited the internal financial controls over financial reporting of the Company as on March 31, 2023 in conjunction with our audit of the Financial Statements of the Company for the year ended on that date, as per Annexure B, expressed unmodified opinion;

g) In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act.

h) In our opinion and to the best of our information and according to the explanations given to us, we report as under with respect to other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014:

i) The Company has disclosed the impact of pending litigations on its financial positions in its financial statements- Refer Note 29 and 33 to the financial statement;

ii) The Company does not have any long-term contracts including derivative contracts for which there were any material foreseeable loss thereon does arise.

iii) There was no amount which was required to be transferred to the Investor Education and Protection Fund by the Company.

(iv) (a)Management has represented to us that, to the best of its knowledge and belief, as disclosed in the notes to financial statements, 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 persons or entities, 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) Management has represented to us that, to the best of its knowledge and belief, as disclosed in the notes to financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(c) Based on our audit procedure performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our attention that cause us to believe that the representation given by the management under sub clause (a) & (b) of (iv) contain any material misstatement.

(d) 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.

(v) Proviso to Rule 3(1) of the Companies (Accounts) Rules,2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1,2023,and accordingly,reporting under rule 11(g) of companies (Audit and Auditors) Rules,2014 is not applicable for the financial year endend March 31,2023.

For: Wadhawan & Co.

Chartered Accountants

FRN: - 129455W

Sd/-

CA Ajit A Wadhawan

(Partner)

M. No. 032886

UDIN: 23032886BGWVIV7140

Date: 30^th May, 2023

Place: Ahmedabad