Auditor Report of EKI Energy Services Ltd.

Mar 31, 2025

1. We have audited the accompanying Standalone Financial
Statements of EKI Energy Services Limited (hereinafter
referred to as “the Company”) which comprise the
Balance Sheet as at March 31, 2025, the Statement of
Profit and Loss including Other Comprehensive Income,
the Statement of Changes in Equity and the Cash Flow
Statement for the year then ended on that date and
notes to Standalone Financial Statements, including
the summary of material accounting policies and other
explanatory information (hereinafter referred to as
“Standalone Financial Statements”).

2. In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
Standalone Financial Statements give the information
required by the Companies Act, 2013, as amended
(hereinafter referred to as “the Act”) in the manner so
required and give a true and fair view in conformity with
the recognition and measurement principles laid down
in the Indian Accounting Standards (hereinafter referred
to as “the Ind AS”) in accordance with the section 133
of the Act, read together with Rule 3 of the Companies
Ind AS Rules, 2015 (as amended from time to time) and
other accounting principles generally accepted in India,
of the state of affairs of the Company as at March 31,
2025, and its net profit and total comprehensive income
and other financial information of the Company for the
year then ended on that date.

Basis for Opinion

3. We have conducted our audit of the Standalone
Financial Statements in accordance with the Standards
on Auditing (hereinafter referred to as “the SAs”)
specified under sub-section 10 of section 143 of the
Act. 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
(hereinafter referred to as “the ICAI”) together with the
ethical requirements that are relevant to our audit of the

Standalone 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 of our
opinion on the Standalone Financial Statements.

Emphasis of Matter

4. We draw attention to matter:

(a) The previous auditor has filed the report, under rule
13 of the Companies (Audit & Auditors) Rules, 2014,
during the course of audit of Standalone Financial
Statement for the year ended March 31, 2023. As
informed by the Company, the matter was examined
by independent legal and financial experts and based
on their report, the Company concluded that there
were no matter attracting the said rules. Since this
matter is sub-judice and under consideration with
MCA so, we believe that the matter is of importance
to the users of Standalone Financial Statements.

(b) The Board of Directors of the company at its meeting
held on February 10, 2025 has approved the scheme
of arrangement in the nature of demerger (hereinafter
referred to as “the Scheme”) entered between EKI
Energy Services Limited (hereinafter referred to as
“the Demerged Company / Company”) and EKI One
Community Projects Limited (hereinafter referred to
as “the Transferee Company / Resulting Company”)
with effect from January 1, 2025 or any other date
as may be fixed by National Company Law Tribunal
(hereinafter referred to as “the NCLT”). Approval of
the scheme by NCLT is awaited. Thus, Standalone
Financial Statements for the financial year ended
on March 31, 2025 have been prepared without
considering the effect of the scheme.

Key Audit Matters

5. Key audit matters are those matters that, in our
professional judgment, were of most significance in
our audit of the Standalone Financial Statements
for the financial year ended March 31, 2025. These
matters were addressed in the context of our audit of
the Standalone 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 matters described below to be the key audit matters
to be communicated in our report.

Key audit matters	How our audit addressed the key audit matter
(a) Valuation of Carbon Credit Inventory
Note No. 2(7)(g) of the Standalone Financial Statements	We have identified the valuation of carbon credit inventory
which describes the significant accounting policies applied	as a key audit matter in our audit of the financial
in the valuation of inventory including cook stoves and	statements of EKI Energy Services Limited for the year
carbon credits inventories are measured lower of the cost	ended March 31, 2025. Carbon credits represent a
or net realisable value (NRV). The valuation of inventory	significant asset on the balance sheet and are subject to
is a critical accounting estimate that involves significant	management judgment. Our audit procedures related to
judgment by management. Further, the valuation of carbon	the valuation of carbon credit inventory included:
credits involves complex and specialized factors, including	(1) Assessment of Fair Value: We have evaluated the
verification of emission reductions norms, market pricing,	appropriateness of the fair value measurement
regulatory compliance, vintage, technology, the timing of	methodologies applied by management in valuing
recogniging inventory, and other aspects.	carbon credit inventory. This involved assessing the
Due to complexity in nature of determining the valuation of	reasonableness of assumptions used, such as discount
carbon credits inventory, we have identified the valuation of	rates, future carbon prices, and market liquidity,
carbon credit inventory as a Key Audit Matter.	technology, country of origin, vintage. (2) Verification of Transactions: We have tested the completeness and accuracy of transactions related to the acquisition, sale, and retirement of carbon credits This included examining supporting documentation, contracts, and agreements to ensure that transactions were properly recorded and accounted for. (3) Evaluation of Carbon Credit Registry: We have assessed the reliability and integrity of the carbon credit registry or trading platform used by the company to record its carbon credit inventory transactions. This involved confirming the existence and ownership of carbon credits held by the company. (4) Consideration of Regulatory Compliance: We have evaluated the company''s compliance with relevant regulatory requirements and industry standards governing the valuation and reporting of carbon credit inventory. This included assessing any potential impacts of regulatory changes on the valuation of carbon credits. (5) Assessment of Impairment: We have examined the adequacy of any impairment provisions or write-downs taken by the company for impaired carbon credit inventory. This involved evaluating the reasonableness of management''s assumptions and projections used in impairment assessments. Our audit procedures regarding the valuation of carbon credit inventory required a high degree of auditor judgment, testing, and evaluation due to the specialized nature of this asset class and the inherent uncertainties involved. Based on our examination, we have concluded that the valuation of carbon credit inventory is materially accurate and in accordance with relevant Indian accounting standards.

Information other than the Financial Statement and

Auditor''s Report Thereon

6. The Company''s Management and Board of Directors

are responsible for the other information. The other
information comprises the information included in the
Company''s annual report, but does not include the,
Standalone 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 Management and Board of Directors for

the Standalone Financial Statements

7. The Company''s Board of Directors are responsible
for the matters stated in section 134(5) of the Act
with respect to preparation and presentation of the
Standalone Financial Statements that gives a true and
fair view of the financial position, financial performance
including Other comprehensive income, cash flows and
changes in equity of the Company in accordance with
the accounting principles generally accepted in India,
including the Ind AS specified under section 133 of the Act,
read with the Companies (Indian Accounting Standards)
Rules, 2015, as amended. The Board of Directors of the
companies are responsible for 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 the design,
implementation, and maintenance of adequate internal
financial controls, that were operating effectively
for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and
presentation of the Standalone Financial Statements
that gives a true and fair view and are free from
material misstatement, whether due to fraud or error,
which have been used for the purpose of preparation
of the Statement by the Directors of the Company, as
aforesaid.

8. In preparing the Standalone Financial Statements,
Management and Board of Directors are 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 Board of Directors either intends to
liquidate the Company or to cease operations, or has no
realistic alternative but to do so.

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

Auditor''s Responsibilities for the Audit of the Standalone

Financial Statements

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

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

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

• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances. Under sub-section
(3)(i) of section 143 of the Act, we are also responsible
for expressing our opinion on whether the Company
has adequate internal financial controls with reference
to Standalone Financial Statements 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 the Management and
Board of Directors .

• Conclude on the appropriateness of the Management
and Board of Directors'' use of the going concern basis of
accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the
Company''s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we
are required to draw attention in our auditor''s report
to the related disclosures in the Standalone Financial

Statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor''s
report. However, future events or conditions may cause
the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content
of the Standalone Financial Statements, including
the disclosures, and whether the Standalone Financial
Statements represent the underlying transactions and
events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the
Standalone Financial Statements that, individually or in
aggregate, makes it probable that the economic decisions of
a reasonably knowledgeable user of the 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 result 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

11. 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 Act, we give in the “Annexure A” a statement on the
matters specified in paragraphs 3 and 4 of the Order.

12. As required by sub-section (3) of Section 143 of the Act ,
based on our audit, 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 of
the aforesaid Standalone Financial Statements.

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

appears from our examination of those books.

c) The Balance Sheet, the Statement of Profit and Loss

including Other Comprehensive Income, Statement
of Changes in Equity and the Statement of Cash
Flows dealt with by this Report are in the agreement
with the relevant books of account.

d) In our opinion, the aforesaid Standalone Financial
Statements comply with the Ind AS specified under
Section 133 of the Act, read with Companies (Indian
Accounting Standard) Rules, 2015 (as amended).

e) As informed to us by the Company the Board of
Directors has taken on record written representations
received from the directors as on March 31, 2025.
As per written representation received, none of the
directors is disqualified as on March 31, 2025 from
being appointed as a director in terms of sub-section
2 of Section 164 of the Act .

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 B”. Our report
expresses an unmodified opinion on the adequacy
and operating effectiveness of the Company''s
internal financial controls over financial reporting.

g) In our opinion and to the best of our information
and according to the explanations given to us, the
remuneration paid by the Company to its directors
during the year is in accordance with the provisions of
section 197 of the Act. The remuneration paid to any
director by the Company 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) of the Act 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
(as amended), in our opinion and to the best of our
information and according to the explanations given
to us:

i. Refer Note 33 of the Standalone Financial
Statements, which discloses the impact of pending
litigations on the Company''s financial position as at
March 31, 2025;

ii. The Company did not have any long-term contracts
including derivative contracts for which there were
any material foreseeable losses during the year
ended March 31, 2025;

iii. As on March 31, 2025 there were no amounts which
were 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 Notes
to the Standalone 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 person(s) or entity(ies), 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 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, as disclosed in the
Notes to the 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,
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.

For Dassani & Associates LLP

Chartered Accountants

Firm Registration No.: 009096C/C400365

CA. Manoj Kumar Rathi

Partner

Membership No.: 411460
UDIN: 25411460BMKWNZ8421

Place: Indore
Date: May 07, 2025

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

. The interim dividend declared and paid by the Company
during the year is in accordance with Section 123 of the
Act.

i. Based on our examination which included test checks,
the company has used an accounting software(s) for
maintaining its books of account 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 audit
trail feature being tampered with, and the audit trail
has been preserved by the Company as per statutory
requirement for record retention.

---

Mar 31, 2024

1. We have audited the accompanying Standalone Financial Statements of EKI Energy Services Limited (''the Company'') which includes the Balance Sheet as at March 31, 2024, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Changes in Equity and the Cash Flow Statement for the year then ended on that date and notes to Standalone Financial Statements, including the summary of material accounting policies and other explanatory information (hereinafter referred to as "Standalone Financial Statements”).

2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013, as amended (the "Act”) in the manner so required and give a true and fair view in conformity with the recognition and measurement principles laid down in the Indian Accounting Standards (''Ind AS'') in accordance with the section 133 of the Act, read together with Rule 3 of the Companies Ind AS Rules, 2015 (as amended from time to time) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024, and its net loss and total comprehensive loss and other financial information of the Company for the year ended March 31, 2024.

BASIS FOR OPINION

3. We conducted our audit of the Standalone 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 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 Standalone Financial Statements under the provisions of the act, 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 of our opinion on the Standalone Financial Statements.

EMPHASIS OF MATTER

4. We draw attention to matter:

The previous auditor has filed the report, under rule 13 of the Companies (Audit & Auditors) Rules, 2014, during the course of audit of Financial Statement for the year ended March 31, 2023. As informed by the Company, the matter was examined by independent legal and financial experts and based on their report, the Company concluded that there were no matter attracting the said rules. It is a matter that we believe is of importance to the users of financial statements.

KEY AUDIT MATTERS

5. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone Financial Statements for the financial year ended March 31, 2024. These matters were addressed in the context of our audit of the Standalone 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.

Key audit matters	How our audit addressed the key audit matter
(a) Valuation of Carbon Credit Inventory
Note No. 7(g) of the Financial Statements which describes the significant accounting policies applied in the valuation of inventory including cook stoves and carbon credits inventories are measured lower of the cost or net realisable value (NRV). The valuation of inventory is a critical accounting estimate that involves significant judgment by management. Further, the valuation of carbon credits involves complex and specialized factors, including verification of emission reductions norms, market pricing, regulatory compliance, vintage, technology, the timing of recognizing inventory, and other aspects. Due to complexity in nature of determining the valuation of carbon credits inventory, we have identified the valuation of carbon credit inventory as a Key Audit Matter.	We have identified the valuation of carbon credit inventory as a key audit matter in our audit of the financial statements of EKI Energy Services Limited for the year ended March 31, 2024. Carbon credits represent a significant asset on the balance sheet and are subject to management judgment. Our audit procedures related to the valuation of carbon credit inventory included: (1) Assessment of Fair Value: We evaluated the appropriateness of the fair value measurement methodologies applied by management in valuing carbon credit inventory. This involved assessing the reasonableness of assumptions used, such as discount rates, future carbon prices, and market liquidity, technology, country of origin, vintage. (2) Verification of Transactions: We tested the completeness and accuracy of transactions related to the acquisition, sale, and retirement of carbon credits. This included examining supporting documentation, contracts, and agreements to ensure that transactions were properly recorded and accounted for. (3) Evaluation of Carbon Credit Registry: We assessed the reliability and integrity of the carbon credit registry or trading platform used by the company to record its carbon credit inventory transactions. This involved confirming the existence and ownership of carbon credits held by the company. (4) Consideration of Regulatory Compliance: We evaluated the company''s compliance with relevant regulatory requirements and industry standards governing the valuation and reporting of carbon credit inventory. This included assessing any potential impacts of regulatory changes on the valuation of carbon credits. (5) Assessment of Impairment: We examined the adequacy of any impairment provisions or write-downs taken by the company for impaired carbon credit inventory. This involved evaluating the reasonableness of management''s assumptions and projections used in impairment assessments. Our audit procedures regarding the valuation of carbon credit inventory required a high degree of auditor judgment, testing, and evaluation due to the specialized nature of this asset class and the inherent uncertainties involved. Based on our examination, we conclude that the valuation of carbon credit inventory is materially accurate and in accordance with relevant accounting standards.

INFORMATION OTHER THAN THE FINANCIAL STATEMENT AND AUDITOR''S REPORT THEREON

6. The Company''s Board of Directors are responsible for the other information. The other information comprises the information included in the Company''s annual report, but does not include the, Standalone 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 MANAGEMENT AND BOARD OF DIRECTORS FOR THE STANDALONE FINANCIAL STATEMENTS

7. The Board of Directors of the Company are responsible for the matters stated in section 134(5) of the Act with respect to preparation and presentation of the Standalone Financial Statements that gives a true and fair view of the financial position, financial performance including Other comprehensive income, cash flows and changes in equity of the Company in accordance with the applicable Ind AS specified under

section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended 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 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 the design, implementation, and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial Statements that gives a true and fair view and are free from material misstatement, whether due to fraud or error.

8. In preparing the Standalone Financial Statements, Management and Board of Directors are 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 Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

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

AUDITOR''S RESPONSIBILITIES FOR THE AUDIT OF THE

STANDALONE FINANCIAL STATEMENTS

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

AS PART OF AN AUDIT IN ACCORDANCE WITH SAS, WE

EXERCISE PROFESSIONAL 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 override of internal control.

• Obtain an understanding of internal control relevani to the audit in order to design audit procedure that are appropriate in the circumstances. Undei section 143(3)(i) of the Act, we are also responsible foi expressing our opinion on whether the Company ha: adequate internal financial controls with reference to Standalone Financial Statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policie: used and the reasonableness of accounting estimate: and related disclosures made by the management.

• Conclude on the appropriateness of the Management'': use of the going concern basis of accounting and based on the audit evidence obtained, whethei a material uncertainty exists related to events o conditions that may cast significant doubt on the Company''s ability to continue as a going concern. I we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s repor to the related disclosures in the Standalone Financia 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'' report. However, future events or conditions maj 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 fail 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 year 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 Act, we give in the "Annexure A” a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act, based on our audit, 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.

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

c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in the agreement with the relevant books of account.

d) In our opinion, the aforesaid Standalone Financial Statements comply with the Ind AS specified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on March 31, 2024 taken on record by the Board of Directors, none of the directors 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 the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B”. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.

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 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 Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended 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 in its Standalone Financial Statements - Refer Note 33 to the Standalone Financial Statements.

ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on longterm contracts including derivative contracts;

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

iv. (a) Management has represented that, to the

best of its knowledge and belief, as disclosed in Notes to the Standalone 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 person(s) or entity(ies), 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 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, that, to the best of it''s knowledge and belief, as disclosed in the Notes to the 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, 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 the audit procedure performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our attention that has caused us to believe that the representations under paragraph 2(h)(iv) (a) & (b), contain any material misstatement.

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

vi. (a) Based on our examination which included test

checks, the company has used an accounting software(s) for maintaining its books of account for the financial year ended as on March 31, 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 audit

For Dassani & Associates LLP

Chartered Accountants

Firm''s Registration No.: 009096C/C400365

CA. Manoj Kumar Rathi

Partner

Membership No.: 411460 UDIN: 24411460BKBGBP5274

Place: Indore Date: 12.05.2024

trail feature being tampered with.

(b) As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 01, 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory requirements for record retention is not applicable for the financial year ended March 31, 2024.

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Mar 31, 2023

EKI ENERGY SERVICES LIMITED.

Report on Audit of the Standalone Financial Statements

QUALIFIED OPINION

1. We have audited the accompanying Standalone Financial Statements of EKI Energy Services Limited (''the Company''), which comprise the Balance Sheet as at 31 March 2023, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and the Cash Flow Statement for the year then ended and notes to Standalone Financial Statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as " Standalone financial statements”)

2. In our opinion and to the best of our information and according to the explanations given to us, the Standalone financial statements, except for the possible effects of the matter described in the Basis for Qualified Opinion section below, gives 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 recognition and measurement principles laid down in the Indian Accounting Standards (''Ind AS'') as prescribed under section 133 of the Companies Act, 2013 (''Act''), read together with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 ( as amended from time to time) and other accounting principles generally accepted in India of the net profit/ (loss) and total comprehensive income / (loss) and other financial information of the Company for the year ended March 31, 2023.

BASIS FOR QUALIFIED OPINION

3. Joint Statutory Auditor, M/s. Walker Chandiok & Co.

LLP, of the company has found certain observations and qualifications in the financial transactions of the Company. The same was communicated to the Audit Committee ("AC”) and the Board of Directors ("BOD”) of the Company u/s 143(12) of the Companies Act, 2013 on July 10, 2023. Based on the evaluation and after consideration of a memorandum prepared by legal counsels and qualified professionals, the AC of the company has responded to the Joint Statutory Auditor on August 24, 2023. The Company has represented to us that there are no non-compliance of the Companies Act, 2013 and other applicable laws / regulations and the same shall have no material impact on the standalone financial statements. The matter is under litigation and sub-judice. Due to uncertainty relating to the future outcome, we are unable to quantify

the impact of these transactions which may result in possible adjustments and/or disclosures in the standalone financial statements.

4. We conducted our audit in accordance with the Standards of Auditing ("SAs”) specified under section 143(10) of Companies Act, 2013 ("the Act”). Our responsibilities under those standards are further described in the Auditors'' 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 ICAI together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. Except for the matters described in the Basis for Qualified Opinion section above, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our qualified opinion.

EMPHASIS OF MATTER

5. We draw attention to matters:

a) As per Note No. 39 to the standalone financial statements , during the Financial year, Revenue was recognized upon deployment of carbon credit eligible projects instead of complying with performance obligation as required in the certain contracts. However, after considering the views of experts, the management of the company has consented that the revenue and corresponding cost shall be recognized upon complying with the entire performance obligation of contracts, instead of substantial performance obligation as per the requirement of Ind AS - 115 and accordingly the adjustment in respect of contract assets and contract liability has been accounted for and the figures for financial year ended on 31st March 2023 are in accordance with Ind AS.

b) Note No. 7(g) of the Standalone Financial Statements which describes the significant accounting policies applied in the valuation of inventory including cook stoves and carbon credits. The valuation of inventory is a critical accounting estimate that involves significant judgment by management. Further, the valuation of carbon credits involves complex and specialized factors, including verification of emission reductions, market pricing, regulatory compliance, vintage, technology, the timing of recognized revenues, and other aspects. Our audit procedures related to inventory valuation disclosed a matter that we believe is of importance to the users of the financial statements.

Our opinion is not modified in respect of this matter.

KEY AUDIT MATTERS

6. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone financial statements for the financial year ended 31st March 2023. These matters were addressed in the context of our audit of the Standalone 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 Auditor''s 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 matter
(a) Transition to IND-AS accounting framework
For periods up to and including the year ended March 31, 2022, the Company had prepared and presented its financial statements in accordance with the erstwhile generally accepted accounting principles in India (Indian GAAP). In order to give effect of the transition to Ind AS these financial statements for the year ended March 31,2023, together with the comparative financial information for the previous year ended March 31, 2022 and the transition date balance sheet as at April 1, 2021 have been prepared under Ind AS. The transition has involved significant change in the Company''s policies and processes relating to financial reporting, including generation of reliable and supportable information. Further, the management has exercised significant judgement for giving an appropriate effect of principles of First-time Adoption of Indian Accounting Standards (Ind AS 101), as at transition date and to determine the impact of the new accounting framework on certain accounting and disclosure requirements prescribed under companies Act 2013 and other applicable laws.	Following substantive audit procedures to establish the effectiveness of transition from IGAAP to Ind AS: • We read the Ind AS impact assessment performed by the management to identify areas impacted due to Ind AS transition. • We understood the preparation of financial statement (including disclosures in notes to accounts) and the additional controls established by the Company for transition to Ind AS. We have tested the design and operating effectiveness of key controls for processes identified by the Company for impact assessment. • We understood the exemption availed by the management in applying the first-time adoption principles of Ind AS 101. • We understood the changes made by the Company in presentation and disclosures under the new accounting framework. • We understood the changes made to the accounting policies considering the requirements of the new accounting framework. • We performed test of details on the accounting adjustments posted as at the transition date and in respect of the previous year to convert the financial information reported under erstwhile Indian GAAP to Ind AS. • We assessed the disclosures included in the Ind AS financial statements in accordance with the requirements of Ind AS 101, with respect to the previous periods presented.

continue as a going concern.

• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the 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 controls 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 year 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.

OTHER MATTERS

12. The standalone financial statements of the Company for the year ended 31 March 2022 were audited by the predecessor auditor who had expressed an unmodified opinion on May 17, 2022.

13. The standalone financial statements of the Company for the year ended 31 March 2022 and the transition date opening balance sheet as at 01 April 2021 included in these standalone financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2021 and other accounting principles generally accepted in India, which were audited by the predecessor auditor who''s report for the years ended March 31, 2022 and March 31, 2021 dated May 17, 2022 and June 16,2021 respectively expressed an unmodified opinion on those standalone

INFORMATION OTHER THAN THE FINANCIAL STATEMENTAND AUDITOR''S REPORT THEREON

7. The Company''s management and Board of Directors are responsible for the other information. The other information comprises the information included in the Company''s annual report, but does not include the Standalone Financial Statements, Consolidated 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 and based on the work done/ audit report of other auditors, 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 MANAGEMENT AND THOSECHARGED WITH GOVERNANCE FOR THE STANDALONEFINANCIAL STATEMENTS

8. The Board of Directors of the Company are responsible for the preparation and presentation of the Standalone Financial Statements that gives a true and fair view of the financial position, financial performance including Other comprehensive income, cash flows and changes in equity of the Company in accordance with the applicable Ind AS 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 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 the design, implementation, and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial Statements that gives a true and fair view and are free from material misstatement, whether due to fraud or error.

9. In preparing the Standalone Financial Statements, the

Board of Directors are 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 Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

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

AUDITOR''S RESPONSIBILITIES FOR THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS

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

As part of an audit in accordance with SAs, we exercise professional 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 override of internal controls.

• Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to Standalone Financial Statements 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 the management.

• Conclude on the appropriateness of the Board of Directors'' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such 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

financial statements, as adjusted for the differences in the accounting principles adopted by the Company transition to the Ind AS, which have been audited by us. Our opinion is not modified in respect of above matters.

14. The Audit Committee in their meeting held on July 05, 2023 has recommended removal of Company''s statutory auditor M/s. Walker Chandiok & Co. LLP and the same was approved by Board of Directors in their meeting on July 13, 2023. The shareholders of the company in the Extra Ordinary General Meeting held on August 14, 2023 approved the removal, subject to approval of Central Government and the same is pending for approval as on the date of this report. In the Extra Ordinary General Meeting held on September 6, 2023, we have been appointed as Joint Auditor of the Company. The report of Joint Auditor M/s. Walker Chandiok & Co. LLP on these standalone financial statements is not available. In view of the above circumstances, we have issued separate audit report.

REPORT ON OTHER LEGAL AND REGULATORYREQUIREMENTS

1. As required by Section 143(3) of the Act, based on our audit we report that:

a) We have sought and except for the matters described in Basis for Qualified Opinion section above, and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose so for audit.

b) Except for the possible effects of the matters described in the Basis for Qualified Opinion section above, in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in the agreement with the relevant books of account.

d) Except for the possible effects of the matters described in the Basis for Qualified Opinion section above, in our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.

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

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”. Our report expresses a qualified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.

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 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, as amended 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 in its standalone financial statements.

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

iii. There has been no delay in transferring 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 it''s knowledge and belief, as disclosed in note 50 to the 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 person(s) or entity (ies), 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 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, as disclosed in the note

50 to the 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, 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 the audit procedures performed that have been considered reasonable and appropriate in the circumstances, Except for the possible effects of the matters described in the Basis for Qualified Opinion section above, 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), as provided under (a) and (b) above, contain any material misstatement.

(d) Based on the audit procedure 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) of the Companies (Audit & Auditors) Rules, 2014, as provided under (a) and (b) above, contain any material misstatement.

v) The Company has not declared any dividend during the current year.

vi) 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 ended March 31, 2023.

2. As required by the Companies (Auditor''s Report) Order, 2020 ("the Ordefi'') 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.