Auditor Report of Popular Foundations Ltd.

Mar 31, 2025

We have audited the accompanying Standalone financial statements ofM/s. Popular Foundations
Limited (-the Company") which comprises the Balance Sheet as at March 31, 2025. the Statement of
Profit and Loss, and statement of cash flows for the year then ended and notes to the financial
statements, including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us. the
aforesaid standalone financial statements give the information required by the Companies'' Act. 2013
(Act). in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India, of the state of affairs of the Company as at March 31. 2025 its
profit loss and cash flows for the year ended on that date, subject to the notes Given below with regard to Key Audit Matters

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section
143(l0) or the Companies Act. 2013. Our responsibilities under those Standards ore 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 together with the ethical requirements that arc relevant to our audit of the financial
statements under the provisions of the Act and the Rules there under, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that. In our professional judgment. were of most significance in our
audit of the Financial Statements for the financial year ended March 31, 2025. These matters were
addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters, For each matter below, our
description of how our audit addressed the matter is provided in that context.

Key audit matters identified in our audit arc summarized as follows:

• Revenue Recognition

• Trade Receivables

• Trade Payables

Key Audit Matter	How our audit addressed the Key Audit Matter
Revenue Recognition : Recognition of contract revenue, margin and contract costs (Refer note 22 to the standalone financial statements): The Company''s revenue primarily arises from construction contracts which, by its nature, is complex given the significant judgements involved in the assessment of current and future contractual performance obligations. The Company recognizes contract revenue and the resultant profit'' loss on the basis of stage of completion determined based on the proportion of contract costs incurred at balance sheet date, relative to the total estimated costs of the contract at	Our Audit Procedure Included: Obtained an understanding of the Company''s revenue recognition processes and evaluated the appropriateness of the Company''s accounting policy for revenue recognition in accordance with AS2;
	Evaluated the design and tested the operating effectiveness of key internal financial controls including those related to estimation of forecasted contract revenue and contracts costs:
	For a sample of contracts, performed the following
completion. The recognition of contract revenue and	procedures:
the resultant profit'''' loss therefore rely on estimates	inspected the underlying documents such as
inrelation to forecast revenue and forecast contract	customer contract/ agreement and variation orders, if
costs.	any, for the significant contract terms and conditions; - evaluated the identification of performance
These contract estimates are reviewed by the	obligations of the contract;
manage menton a periodic basis. In doing so, the	obtained an understanding of and evaluated the
management is required to exercise judgement in its	reasonableness of the assumptions applied in
assessment of the transaction price (i.e . revenue on	determining the forecasted revenue and cost to
contracts) which may also include variable	complete:
considerations that are recognised when the	- tested the existence and valuation of variable
recovery of such consideration is highly probable.	consideration with respect to the contractual terms
The judgement is also required to be exercised to assess the completeness and accuracy of forecast costs to complete.	and conditions and inspected the correspondence with customers; and - reviewed the legal and contracting experts'' note and/
	or legal opinion from independent legal counsel
Changes in these judgements and the related estimates as contracts progress can result in material adjustments to revenue and margins. As a result of the above judgments, complexities involved and material impact on the related financial statement elements, this area has been considered as a key audit matter in the audit of the standalone financial statements.	obtained by the management, if any; - For cost incurred to date, tested samples to appropriate supporting documents and performed cut-off procedures; Tested the forecasted cost by obtaining executed purchase orders/ agreements/ relevant documents and evaluated the reasonableness of management judgements/ estimates; and
	• Evaluated the appropriateness and adequacy of the
	disclosures related to contract revenue and costs in the standalone financial statements in accordance with the applicable accounting standards.

Trade Receivables As at March 31, 2025, Net trade receivables amount included in Note No. 17 was Rs. 977.52 Lakhs (Previous year - Rs. 1182.35 Lakhs) Due to non-availability of confirmations of balances of trade receivables, any provisions to be made for the variations in currying amounts of these balances, cannot be quantified as well as the quantum of adjustment if any, required to be made remains unascertained. Accordingly, it has been determined as a key audit matter.	For trade receivables our key audit procedures included the following: • We analysed the aging of trade receivables; and • Wo obtained a list of outstanding receivables and assessed the recoverability of these through inquiry with management and by obtaining sufficient corroborative evidence to support the conclusions. • We also obtained the list of collections from customers subsequent to the year end for ascertaining (he recoverability
Trade Payables	Our audit procedures in relation to trade payables included: - Obtaining an understanding of and assessing the design, implementation and operating effectiveness of key internal controls over the existence and performance of Procurement activities; - Selecting a sample of items of procurements made during the year ended 31'' March 2025 and inspected underlying documentation to assess the Occurrence, Completeness. Authorization, Accuracy, Cut off and classification; - Obtaining confirmations and / or account statements from selected accounts payables and reconciling to the vendor accounts; - We assessed and validated the ageing profile of trade payables; Confirmations have been sought from vendors and wherever received, the necessary adjustments required, it any, have been made In respect of others, balance as per Books of Account has been adopted and no adjustments have been proposed.
At 31 March 2025. the total trade payables balances included in Note No. 10 was Rs. 1578.68 lakhs (Previous Year: Rs 1832.44 Lakhs). For the year ended March 31, 2025 letters seeking confirmation of balance statement of account were sent to selected vendors for the year ended March 31. 2025. Independent confirmations were received from a few panics and necessary adjustments, if any. were made. Accordingly, it has been determined as a key audit matter.

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

the Company’s Board of Directors is responsible for other information. The other information
comprises the information included in the financial highlights, board’s report but does not include the
financial statements and our auditor''s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any
assurance conclusion thereon.

In Connection With Our audit of the financial statements, our responsibility is to read the other
t information and. in doing so, consider whether the other information is materially inconsistent with the

financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated. If. based on the work we 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 for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the
Companies Act. 2013 (“the Act”) with respect to the preparation of these standalone financial
statements that give a true and lair view of the financial position, financial performance, and cash flows
of the Company in accordance with the accounting principles generally accepted in India, including the
accounting Standards specified under section 133 of the Act. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of 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 statement that give a true and fair
view and arc 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.

Those Board of Directors are also responsible for overseeing the company''s financial reporting process
Auditor’s Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free From material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is 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 assets the risks of material misstatements, whether due to fraud or error, design and

audit procedures responsive to those risks and obtain audit evidence that is sufficient
appropriate to provide a basis for our opinion. the risk of not detecting a material
misstatement resulting from fraud is higher than one resulting from error, as fraud may involve
on. 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 the 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 continue
as going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor''s report to the related disclosures in the financial statements or if such
disclosures are inadequate, to modify- our opinion. Our conclusions arc 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 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.

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
there fore 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. 2016 ("the Order"), issued by the
Central Government of India in terms of sub-section (11) of section 143 of the Companies Act,
2013. we give in the ‘ Annexure A" statement on the matters specified in paragraphs 3 and 4 of
the Order, to the extent applicable.

2. As required by Section 143(3) of the Act, we 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, 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 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 31st March,
2025 taken on record by the Board of Directors, none of the directors is disqualified as on
31st March, 2025 from being appointed as a director in terms of Section 164 (2) of the Act.

f) With respect 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”.

g) With respect to the matter to be included in the Auditors’ Report under 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, in our opinion and to the best
of our information and according to the explanations given to us:

(i) the Company has no pending litigations which has impact on its financial position.

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

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

(iv) A) Management has represented that, to the best of its knowledge and belief, other than
as disclosed in the notes to the accounts, no funds have been advanced or loaned or
invested (either from borrowed funds or share premium or any other sources or kind of

funds by the company to or in any other persons) or cntity(is). including foreign entities
(“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that
the Intermediary 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 its knowledge and belief, other than
as disclosed in the notes to the accounts, no funds have been received by the company
from any pcrson(s) or entity(ics), 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 the audit procedures adopted by us. nothing has come to our notice that has
caused us to believe that the representations made by the management under sub clause
(A) and (B) above, contain any material misstatement.

(v) (a) No final dividend was declared by the Company in respect of the same for the
previous year is in accordance with Section 123 of the Act to the extent it applies to
payment of dividend.

(b) No interim dividend declared and paid by the Company during the year and until
the date of this audit report.

(c) The Board of Directors of the Company have not proposed final dividend for the
year ended March 31.2025.

For Krishaan & Co.,

Firm Reg.No. 001453S

Chartered Accountants

K Sundarrajan

Partner
M.No. 208431

UDIN : 25208431BMIFTE7714

Place: Chennai
Date: 26-05-2025