Auditor Report of Bonlon Industries Ltd.

Mar 31, 2025

We have audited the accompanying financial statements BONLON INDUSTRIES
LIMITED (the “Company”), which comprise the Balance Sheet as at March 31, 2025 the
Statement of Profit and Loss, the Statement of Changes in Equity and the Statement of Cash
Flows ended on that date, and a summary of 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

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 prescribed under section 133 of the Act read with Rule 7 of the
companies (Accounts) Rules, 2014, as amended, and other accounting principles generally
accepted in India, of the state of affairs of the Company as at March 31, 2025 and its profit
changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards on
Auditing .A s) specified under section 143(10) of the Act. Our responsibilities under those
Standards arc 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
ICAI''s Code of Ethics. We believe that the audit evidence 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.

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

The Company’s Board of Directors and Management is responsible for the preparation of 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 and Sustainability Report, Corporate Governance 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.

If, based on the work we have performed, we conclude that there is a material misstatement

of this other information, we are required to report that fact. We have nothing to report in this
regard.

Responsibility of Management and Those Charged with Governance (TCWG)

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 the preparation of these financial
statements that give a true and fair view of the financial position, financial performance,
changes in equity and cash flows of the Company in accordance with the accounting
principles generally accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. 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 concern and using the going concern basis of accounting unless the Board of Directors

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.

Auditor’s Responsibility

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 SAs, we exercise professional judgement and maintain
professional skepticism throughout the audit. We also:

• identify and assess the risks of material misstatement of the Financial Results
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 with reference to financial
statement in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the Board of Directors.

• Conclude on the appropriateness of the Board of Directors'' use of the going concern
basts 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
ability of the company 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 Statement 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 Results,
including the disclosures, and whether the Financial Results 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. ’

Report on Other Legal and Regulatory Requirements

1. 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, Statement of Changes in
Equity and the Statement of Cash Flows dealt with by this Report are in
agreement with the relevant 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 the written representations received from the directors as on
31/03/2025 taken on record by the Board of Directors, none of the directors is

disqualified as on 31/03/2025 from being appointed as a director in terms of
Section 164 (2) of the Act.

(0 With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls refer
to our separate Report in “Annexure A”. Our report expresses an unmodified
opinion on the adequacy and operating effectiveness of the Company''s internal
financial controls over financial reporting. ^4

with respect to the matter to be included in the Auditor''s Report under section

197(16) 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. The
remuneration paid to any director is not in excess of the limit laid down under
section 197 of the Act. The Ministry of Corporate Affairs has not prescribed

other details under section 197(16) which are required to be commented upon
by us.

(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 has disclosed the impact of pending litigations on its financial
position - Refer Note 35 to the Financial Statements.

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

iii. There has been no transfer of amount to the Investor Education and Protection
Fund by the Company, as the company was not required to do so.

iv. In respect of funds advanced/ received:

a) The management has represented that, to the best of it’s 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 it’s 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 our audit procedures we considered these reasonable and
appropriate in the circumstances and nothing has come to our notice
that has caused us to believe that the representations under sub-clause
(a) and (b) contain any material mis-statement.

v. No Dividend has been declared or paid by the company during the year.

vi. Based on our examination, which included test checks, the Company has used
accounting software for maintaining its books of accounts for the financial
year ended March 31, 2025 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 the audit trail feature being tampered
with and the audit trail has been preserved by the Company as per the statutory
requirements for record retention.

2. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”) issued by
the Central Government in terms of Section 143(11) of the Act, we give in “Annexure
B a statement on the matters specified in paragraphs 3 and 4 of the Order.

For GAUR & ASSOCIATES

Chartered Accountants

FRN: 005354C

Satish Kr. Gupta

Partner

M. No. 016746 _nI

UDIN: 25016746BMGYEQ6558

---

Mar 31, 2024

We have audited the accompanying financial statements of BONLON INDUSTRIES
LIMITED (“the Company”), which comprise the Balance Sheet as at March 31^st, 2024, the
Statement of Profit and Loss, Change in equity and Cash Flow Statement for the year ended
on that date, and 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, 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 Standards prescribed under section 133 of the Act and other accounting
principles generally accepted in India, of the state of affairs of the Company as at March 31^st,
2024, the profit and total comprehensive income for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards on
Auditing specified under section 143(10) of the Act (SAs). 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 independence 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 we have obtained 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 judgement were of most
significance in our audit of the Standalone Financial Statements for the fimancjqLj^f^eqdcd
March 31^st, 2024. These matters were addressed in the context of our audit o^i^San^^he

plFftj/ooMMcm

Financial Statements as a whole and in forming our opinion thereon and we do not provide a
separate opinion on these matters. For each matter below our description of how our audit
addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to be
communicated in our report. We have fulfilled the responsibilities described in the Auditors''
responsibilities for the audit of the Standalone Financial Statements section of our report
including in relation to these matters. Accordingly our audit included the performance of
procedures designed to respond to our assessment of the risks of material misstatement of the
Standalone 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 Standalone Financial Statements.

KEY AUDIT MATTERS	HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTERS
IT systems and controls over financial reporting We identified IT systems and controls over financial reporting as a key audit matter for the company because its financial accounting and reporting systems are fundamentally reliant on IT systems and IT controls to process significant transaction volumes specifically with respect to revenue. Also due to such large transaction volumes and the increasing challenge to protect the integrity of the company''s systems and data cyber security has become more significant.	Our procedures included and were not limited to the following: * Assessed the complexity of the environment by engaging IT specialists and through discussion with the head of IT and internal audit and identified IT applications that are relevant to our audit. • Assessed the design and evaluation of the operating effectiveness of IT general controls over program development and changes access to program and data and IT operations by engaging IT specialists
Automated accounting procedures and IT environment controls which include IT governance IT general controls over program development and changes access to program and data and IT operations IT application controls and interfaces between IT applications are required to be designed and to operate effectively to ensure accurate financial reporting. -------	• Performed inquiry procedures with the head of cyber security at the company in respect of the overall security architecture and any key threats addressed by the company in the current year. • Assessed the design and evaluation of the operating effectiveness of IT application controls in the key processes impacting financial reporting of the company by engaging IT specialists. • Assessed the operating effectiveness of controls relating to data transmission through the different IT systems to the ¦i^financial reporting systems by engaging IT ''l Racialists.

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

The Company’s Board of Directors is responsible for the preparation and presentation of its
report (herein after called as “Board Report”) which comprises various information required
under section 134(3) of the Companies Act 2013 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.

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 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 of the Company in accordance with the
Indian Accounting Standards and other accounting principles generally accepted in India.
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 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 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 Companyj^Jhiancial reporting
process.

Auditor’s Responsibilities for the Audit of the Financial Statemem^^^³⁵⁴^)

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 SAs, we exercise professional judgment and maintain
professional scepticism 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.

• 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 thg^abri&yqc decisions of a reasonably knowledgeable

user of the financial statements may J$&4nfl*fenbra\ We consider quantitative materiality and

F(fR!m4354C)“’|

\Q\ / Jao/

qualitative factors in (i) planning the scope of our audit work and in evaluating the results ot
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 most 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

1. 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, Statement of Changes in Equity and

the cash flow statement dealt with by this Report are in agreement with the books of
account;

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

(e) On the basis of the written representations received from the Directors as on March

31^st, 2024 taken on record by the Board of Directors, none of the directors is
disqualified as on March 31^st, 2024 from being appointed as a director in terms of
Section 164 (2) of the Act; ---

/e>^xX /]

/Co / / / \«\

/§/ / / \rt>\

* FF&/05354CJ ^

# ,

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

of the Company and the operating effectiveness of such controls, refer to our separate
report in “Annexure A”; and

(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 Act as amended in our opinion and to
the best of our information and according to the explanations given to us, the
remuneration paid or provided 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 has disclosed the impact of pending litigations as at March 3 1^st,
2024 on its financial position in its financial statements Refer note no. 35 to the
financial statements.

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 which were required to be transferred to the Investor
Education and Protection Fund by the company. The question of delay in
transferring such sums does not arise.

IV. (i) 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, directly or indirectly lend or invest in other persons or entities identified in
any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the
Company or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.

(ii) The Management has represented that, to the best of its knowledge and belief,
no funds have been received by the Company from any persons or entities,
including foreign entities (“Funding Parties”), with the understanding, whether
recorded in writing or otherwise, that the Company shall directly or indirectly,
lend or invest in other persons or entities identified in any manner whatsoever
(“Ultimate Beneficiaries”) by or on behalf of the Funding Parties or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(iii) Based on the audit procedures performed that have been considered reasonable
and appropriate in the circumstances, nothing has come to our notice that has
caused us to believe that the representations under sub-clause (i) and (ii) of Rule
11(e) contain any material misstatempajT&As^s.

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

VI. Based on our examination, which included test checks, the Company has used
accounting software for maintaining its books of account for the financial year
ended March 31st, 2024 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 the audit trail feature being tampered with

2. As required by the Companies (Auditor''s Report) Order, 2020, (“the Order”) issued
by the Central Government in terms of Section 143 (11) of the Act, we give in

Annexure- B a statement on the matters specified in paragraphs 3 and 4 of" the
Order.

3. 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 by the Company to its directors during the current
year is in accordance with the provisions of section 197 of the Act. The remuneration
paid to any director is not in excess of the limits laid down under section 197 of the
Act. The Ministry of Corporate Affairs has not prescribed other details under section
197(16) of the Act which are required to be commented upon by us.

For GAUR & ASSOCIATES

Chartered Accountants
FRN:005354C

___ . . , (g[ VA

Satish Kumar Gupta

^Partner Place: New Delhi

M. No. 016746 Date: 28/05/2024

UDIN: 24016746BKBZVV2786