Auditor Report of Sigachi Industries Ltd.

Mar 31, 2025

We have audited the accompanying Standalone Financial
Statements of SIGACHI INDUSTRIES LIMITED (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 Statement
of Cash Flows ended on that date, and a summary of material
accounting policies and other explanatory information
(hereinafter referred to as the "Standalone Financial Statements").
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 Indian Accounting
Standards prescribed under section 133 of the Act read with
the Companies (Indian Accounting Standards) Rules, 2015, as
amended, ("Ind AS") and other accounting principles generally
accepted in India, of the state of affairs of the Company as at
March 31, 2025, the profit and total comprehensive income,
changes in equity and its cash flows for the year ended on that
date.

BASIS FOR OPINION

We conducted our audit of the Standalone Financial Statements

in accordance with the Standards on Auditing ("SA"s) 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 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 obtained by us is sufficient and appropriate to
provide a basis for our audit opinion on the Standalone Financial
Statements.

KEY AUDIT MATTERS

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.

Sr. No	Key Audit Matter	How our audit addressed the key audit matter
1	Appropriateness of capitalization of costs included in	Our Audit procedures included the following:
	Property Plant and Equipment as per Ind AS 16 Property, Plant and Equipment.	i. We understood from the management details of the capitalization costs.
	Refer to Note - 2.06 (Material Accounting Policies on Property, Plant and equipment), Note - 3 (Property, plant and equipment and Capital work-in progress) of the enclosed standalone financial statements.	ii. Understood, evaluated and tested the design and operating effectiveness of key controls relating to capitalization of various costs incurred in relation to Property Plant and Equipment.
	During the year, the Company has capitalized significant capital expenditure towards production plants at Dahej and Jhagadia	iii. Performed test of details with focus on those items that we considered significant due to their amount or nature and tested a sample of items capitalized during the year against
	Opening Balance of CWIP as on 1st April 2024 was H 9,056.46	underlying supporting documents to ascertain nature
	lakhs. During the year there was addition of H 3,798.37 lakhs	of costs and whether they meet the recognition criteria
	to CWIP (including borrowing cost of H159.50 lakhs) and	provided in the Ind AS 16, Property, Plant and Equipment
	capitalization of assets worth H12,367.57lakhs.	in this regard.

The Capitalization majorly includes below projects	vi.	Verified the other related costs including those incurred
undertaken by the Company:		towards repairs and maintenance and debited to Statement
d) The Company is Expanding additional production plant unit Dahej & Jhagadia situated at Bharuch,		of Profit and Loss, to ascertain whether these meet the criteria for capitalization.
Gujarat-393110, which will be used for production of	vii.	Reviewed the management''s procedure to review the
Micro Crystalline Cellulose.		periodic progress of the projects based on certification by
e) The Company is expanding its capacity of Dahej Sez From 4800 MTPA to 8400 MTPA in Dahej and from 2750		the project management consultants and correspondent running bills submitted by the contractors.
MTPA To 6350 MTPA in Jhagadia	viii.	As it is a Qualifying Asset at the management discretion
Given the significance of the capital expenditure during the year, there is a risk that elements of costs that are ineligible for capitalization in accordance with the recognition criteria provided in Indian Accounting Standard 16 -Property, Plant and Equipment are capitalized and that costs that should		and the period of completion involves Substantial period of time the related Borrowing costs have been appropriately capitalized to the Capital work in progress according to the compliances mentioned in the Ind AS-23 (i.e., Borrowing Cost).
have capitalized have been expensed.	ix.	Discussion of audit observations with the management/
Since the amounts involved in the development of the above project was significant and material, the audit of the above		accounts and finance team for clarification as and when required.
area was considered to be a key audit matter for reporting	x.	We have verified the documents obtained from concerned
purpose		chartered engineer regarding capitalization costs.
	Our procedures as mentioned above did not identify any costs that had been inappropriately capitalized and that costs that should have capitalized have been expensed
2 Share Capital:	Our Audit procedures included the following:
Preferential Allotment of shares:	i.	Enquiry with those charged with the governance and the
The Company made an allotment of Convertible Equity share warrants which were in compliance of Sec 42(7) of the		key managerial personnel about the procedure followed for issue of the Convertible Warrants
Companies Act, 2013(read with the respective rules) and in	ii.	review of the minute books of
accordance with Chapter-V of SEBI(ICDR) Regulations 2018,		• the board of directors and
on a preferential allotment basis consisting of 1,09,75,000		• shareholders;
warrants of ''10 each at a premium of ''251 per share amounting to '' 28,644.75 lakhs which was then spilt into the ratio of 10:1.	iii.	Referred the relevant provisions of the Companies Act 2013 read with the Companies (Share Capital and Debenture Rules) 2014, as applicable to ascertain whether the same
The warrants were converted into equity shares in the two		have been complied with;
allotments as stated below:	iv.	Review of compliance with respect to applicable guidelines
On 30th August 2024 the company made an allotment		of SEBI regulations
52,52,190 equity shares of HI/- each to non -promoters	v.	review of various e-forms submitted to the Ministry of
Group on conversion of 5,25,219 warrants at an issue price		Corporate Affairs (MCA) in compliance with the provisions
of '' 261/- per share of ''10/- each.		of the Companies Act 2013 and the relevant rules;
On 08th February 2025 the company made an allotment	vi.	review of valuation report issued by the registered valuer in
4,86,69,840 equity shares of H1/- each to promoters and		accordance with the provisions of the Companies (Registered
non -promoters group on conversion of 48,66,984 warrants		Valuers and Valuation) Rules 2017 for fair value for issue of
at an issue price of H 261/- per share of ''10/- each.		the shares at the price at| which theses equity shares were
Some of the warrant holders were not fully subscribed within		issued during the year
due date as required by the scheme . The proportionate	vii.	Companies act requirements have been verified in respect of
amount of H 22.87 crores was forfeited during the year due		forfeiture of shares along with the board resolution.
to non payment .	viii.	appropriate disclosure in the financial statements in
Since the amount involved is material and significant, audit		accordance with the IND AS, and the requirements of
of above area was considered to be key audit matter for reporting purpose		schedule III

3 Timing of Revenue recognition in the proper period as	Our audit procedures included the following:
per Ind AS 115.	i.	We evaluated the design and tested operating effectiveness
Refer to Note-2.14 (Material Accounting Policies on Revenue		of the relevant controls with respect to revenue recognition
Recognition) and Note-24 (Revenue from operations) of the		including those relating to cut off at year end;
standalone financial statements.	ii.	We assessed the appropriateness of the revenue recognition
In accordance with Ind AS 115, Revenue from Contracts		accounting policies in line with Ind AS 115 "Revenue from
with Customers, revenue from sale of goods is recognized		Contracts with Customers";
when control of the products being sold is transferred to the customer based on terms of sale. Revenue is measured at consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties. The transaction price of the goods sold is net	iii.	We performed substantive testing of revenue transactions, recorded during the year by testing the underlying documents which included customer order and directions, goods dispatch notes, shipping documents and customer acknowledgments as applicable;
of variable consideration on account of various discounts	iv.	We tested a sample of manual journal entries posted to
offered by the company as part of contract.		revenue and assessed their appropriateness;
We identified timing of revenue recognition in the proper	v.	We tested, on a sample basis, specific revenue transactions
period as a key audit matter since it involves higher assessed		recorded before and after the financial year end date
risk of material misstatement and is required to be recognized		including examination of credit notes issued after the year
as per the requirements of applicable accounting framework.		end to determine whether the revenue has been recognized in the appropriate financial period. Based on the above stated procedures, no significant exceptions were noted in revenue recognition.

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

The Company''s Management & Board of Directors is responsible
for the other information. The other information comprises the
information included in the Management Discussion and Analysis,
Board''s Report including Annexures to Board''s Report, Business
Responsibility Report, Corporate Governance and Shareholder''s
Information, but does not include the Standalone Financial
Statements and our auditor''s report thereon. The Company''s
annual report is expected to be made available to us after the
date of this auditor''s report.

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
identified above when it becomes available 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.

MANAGEMENT''S & BOARD OF DIRECTORS''
RESPONSIBILITIES FOR THE STANDALONE FINANCIAL
STATEMENTS

The Company''s Management &Board of Directors is responsible for
the matters stated in section 134(5) of the Act with respect to the
preparation of these Standalone Financial Statements that give a
true and fair view of the financial position, financial performance,
including other comprehensive income, changes in equity and

cash flows of the Company in accordance with the accounting
principles generally accepted in India, including the Indian
Accounting Standards (Ind AS) specified under Section 133 of the
Act read with the Companies (Indian Accounting Standards) Rules,
2015, as amended. 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 Standalone Financial
Statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.

In preparing the Standalone 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
Company''s financial reporting process.

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

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 financial control
relevant to the audit in order to design audit procedures that
are appropriate in the circumstances. Under section 143(3)(i)
of the 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 the management.

• Conclude on the appropriateness of Management & Board
of Directors use of the going concern basis of accounting
in preparation of standalone financial statements 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 results of our work; and (ii)to evaluate the
effect of any identified misstatements in the Standalone Financial
Statements.

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

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

From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the Standalone Financial Statements
of the current period and are therefore the key audit matters.
We describe these matters in our auditor''s report unless law or
regulation precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.

REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS

1. As required by 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, to the extent applicable.

2. A. 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 of account

c) The Standalone Balance Sheet, the Standalone
Statement of Profit and Loss including Other
Comprehensive Income, the Standalone Statement of
Changes in Equity and the Standalone Statement of
Cash Flows dealt with by this Report are in 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 Standards) Rules, 2015, as amended.

e) On the basis of the written representations received
from the directors as on March 31, 2025 taken on
record by the Board of Directors, none of the directors is
disqualified as on March 31,2025 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" 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 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:

a) The Company has disclosed the impact of
pending litigations on its financial position in its
Standalone Financial Statements.

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

c) There has been no delay in transferring amounts,
required to be transferred, to the Investor
Education and Protection Fund by the Company
and its subsidiary companies incorporated in
India.

d) i. The Management has represented that, to

the best of its knowledge and belief, no
funds (which are material either individually
or in the aggregate)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 entity ("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;

ii. The Management has represented, that,
to the best of its knowledge and belief, no
funds (which are material either individually
or in the aggregate) have been received by
the Company from any person or entity,
including foreign entity ("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;

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

e) The dividend paid by the Company during the year, in
respect of the same declared for the previous year is in
accordance with Section 123 of the Act to the extent it
applies to payment of dividend.

f) The reporting under Rule 11(g) of the Companies
(Audit and Auditors) Rules, 2014 is applicable from 1
April 2023.

Based on our examination which included test checks,
the Company has used accounting software for
maintaining its books of account, which have a feature
of recording audit trail (edit log) facility and the same
has operated throughout the year for all relevant
transactions recorded in the respective software.
Further, we did not come across any instance of the
audit trail feature being tampered with.

3. With respect to the matter to be included in the Auditor''s
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
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.

For Yelamanchi & Associates

Chartered Accountants
Firm Reg No :000041S

G Jayanth Srinivas (FCA)

Partner

Membership No:251026
Date: 30/05/2025
Place: Hyderabad
UDIN: 25251026BMLXLY9484

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Mar 31, 2024

We have audited the accompanying Standalone Financial Statements of SIGACHI INDUSTRIES LIMITED (the "Company"), which comprise 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 Statement of Cash Flows ended on that date, and a summary of material accounting policies and other explanatory information (hereinafter referred to as the "Standalone Financial Statements").

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 Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024, the profit and total comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Standalone Financial Statements in accordance with the Standards on Auditing ("SA"s) 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 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 obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Financial Statements.

Key Audit Matters

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

Sr. No	Key Audit Matter	How our audit addressed the key audit matter
1	Appropriateness of capitalization of costs included in Property Plant and Equipment/ Capital work in progress as per Ind AS 16 Property, Plant and Equipment. Refer to Note - 2.06 (Material Accounting Policies on Property, Plant and equipment), Note - 3 (Property, plant and equipment and Capital work-in progress) of the enclosed standalone financial statements. During the year, the Company has incurred significant capital expenditure towards setting up of additional production plants at Dahej and Jhagadia. Opening Balance of CWIP as on 1st April 2023 was Rs.3490.37 lakhs. During the year there was addition of Rs. 6613.96 lakhs to CWIP (including borrowing cost of Rs.140.92 lakhs) and capitalization of assets worth Rs.1047.88lakhs.	Our Audit procedures included the following: i. We understood from the management details of the projects in process. ii. Understood, evaluated and tested the design and operating effectiveness of key controls relating to capitalization of various costs incurred in relation to Property Plant and Equipment. iii. Performed test of details with focus on those items that we considered significant due to their amount or nature and tested a sample of items capitalized during the year against underlying supporting documents to ascertain nature of costs and whether they meet the recognition criteria provided in the Ind AS 16, Property, Plant and Equipment in this regard. iv. Verified the other related costs including those incurred towards repairs and maintenance and debited to Statement of Profit and Loss, to ascertain whether these meet the criteria for capitalization.

Sr. No	Key Audit Matter	How our audit addressed the key audit matter
	The CWIP balance majorly includes below projects	v. Reviewed the management''s procedure to review the
	undertaken by the Company:	periodic progress of the projects based on certification by
	a) The Company is Expanding additional production	the project management consultants and correspondent
	plant unit Dahej & Jhagadia situated at Bharuch,	running bills submitted by the contractors.
	Gujarat-393110, which will be used for production of	vi. As it is a Qualifying Asset at the management discretion
	Micro Crystalline Cellulose.	and the period of completion involves Substantial period of
	b) The Company is expanding its capacity of Dahej Sez	time the related Borrowing costs have been appropriately
	From 4800 MTPA to 6600 MTPA in Dahej and from	capitalized to the Capital work in progress according to the
	2750 MTPA To 6350 MTPA in Jhagadia	compliances mentioned in the Ind AS-23 (i.e., Borrowing
	Given the significance of the capital expenditure during	Cost).
	the year, there is a risk that elements of costs that are	vii. Discussion of audit observations with the management/
	ineligible for capitalization in accordance with the	accounts and finance team for clarification as and when
	recognition criteria provided in Indian Accounting	required
	Standard 16 -Property, Plant and Equipment are	Our procedures as mentioned above did not identify any costs
	capitalized and that costs that should have capitalized	that had been inappropriately capitalized and that costs that
	have been expensed. Since the amounts involved in the development of the above project was significant and material, the audit of the above area was considered to be a key audit matter for reporting purpose	should have capitalized have been expensed
2	Share Capital:	Our Audit procedures included the following:
	Preferential Allotment of shares:	i. Enquiry with those charged with the governance and
	The Company made an allotment of Convertible Equity	the key managerial personnel about the procedure
	share warrants which were in compliance of Sec 42(7)	followed for issue of the Convertible Warrants
	of the Companies Act, 2013(read with the respective rules) and in accordance with Chapter-V of SEBI(ICDR)	ii. review of the minute books of
	Regulations 2018, on a preferential allotment basis	• the board of directors and
	consisting of 1,09,75,000 warrants of '' Rs.10 each at a premium of '' 251 per share amounting to'' 28,644.75	• shareholders;
	lakhs which was then spilt into the ratio of 10:1.	iii. Referred the relevant provisions of the Companies Act 2013
	The warrants were converted into equity shares in the	read with the Companies (Share Capital and Debenture
	two allotments as stated below: On 09th October 2023 the company made an allotment	Rules) 2014, as applicable to ascertain whether the same have been complied with;
	1,60,51,900 equity shares of Rs.1/- each to non -promoters Group on conversion of 16,05,190 warrants at an issue	iv. Review of compliance with respect to applicable guidelines of SEBI regulations
	price of Rs.261/- per share of Rs.10/- each.	v. review of various e-forms submitted to the Ministry of Corporate Affairs (MCA) in compliance with the provisions
	On 06th March 2024 the company made an allotment 47,18,080 equity shares of Rs.1/- each to non -promoters	of the Companies Act 2013 and the relevant rules; vi. review of valuation report issued by the registered valuer
	Group on conversion of 4,71,808 warrants at an issue	in accordance with the provisions of the Companies
	price of Rs.261/- per share of Rs.10/- each.	(Registered Valuers and Valuation) Rules 2017 for fair value
	Since the amount involved is material and significant,	for issue of the shares at the price at which theses equity
	audit of above area was considered to be key audit matter	shares were issued during the year
	for reporting purpose	vii. appropriate disclosure in the financial statements in accordance with the IND AS, and the requirements of schedule III
3	Timing of Revenue recognition in the proper period as	Our audit procedures included the following:
	per Ind AS 115.	i. We evaluated the design and tested operating effectiveness
	Refer to Note-2.14 (Material Accounting Policies on	of the relevant controls with respect to revenue recognition
	Revenue Recognition) and Note-24 (Revenue from operations) of the consolidated financial statements.	including those relating to cut off at year end;

Sr. No	Key Audit Matter	How our audit addressed the key audit matter
	In accordance with Ind AS 115, Revenue from Contracts with Customers, revenue from sale of goods is recognized when control of the products being sold is transferred to the customer based on terms of sale. Revenue is measured at consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties. The transaction price of the goods sold is net of variable consideration on account of various discounts offered by the company as part of contract. We identified timing of revenue recognition in the proper period as a key audit matter since it involves higher assessed risk of material misstatement and is required to be recognized as per the requirements of applicable accounting framework.	ii. We assessed the appropriateness of the revenue recognition accounting policies in line with Ind AS 115 "Revenue from Contracts with Customers"; iii. We performed substantive testing of revenue transactions, recorded during the year by testing the underlying documents which included customer order and directions, goods dispatch notes, shipping documents and customer acknowledgments as applicable; iv. We tested a sample of manual journal entries posted to revenue and assessed their appropriateness; v. We tested, on a sample basis, specific revenue transactions recorded before and after the financial year end date including examination of credit notes issued after the year end to determine whether the revenue has been recognized in the appropriate financial period. Based on the above stated procedures, no significant exceptions were noted in revenue recognition.
4	Fair Valuation of Investments In accordance With IND	Our audit procedures included and were not limited to the
	AS-103(i.e., Business Combinations) Read with IND AS-	following:
	32/109(Financial Instruments)	• Reviewed the fair valuation reports provided by the
	As at March 31,2024, the Company has made investments	management by involvement of internal specialist /
	of Rs.100 crores as 2,88,00,000 Equity shares of Rs.10/-each of Trimax Bio Sciences Private Limited constituting	external valuation experts.
	80% of paid up- Equity share Capital in Trimax Bio Sciences Private Limited which are measured at fair value as per Ind AS 109 read with Ind AS 113.	• Review of Resolution passed in the board Meeting • Obtaining A Due Diligence report from the management.
	These investments are Level 3 investments as per the fair	• Ascertained the Valuation in the books of accounts on
	value hierarchy in Ind AS 113 (i.e., Fair value Measurement) and accordingly determination of fair value is based on a	account of Goodwill/Capital reserve.
	high degree of judgement and input from data that is not	• Had a Briefing of the Share purchase Agreement entered
	directly observable in the market. Further, the fair value is	between the parties.
	significantly influenced by the expected pattern of future	• Assessed the objectivity and competence of our internal
	benefits of the tangible assets of Trimax Bio Sciences	expert and Company''s internal/external specialists involved
	Private Limited. Refer Note No: 04 of the Standalone	in the process. Reviewed the disclosures made by the
	financial statements. Since the amount involved is material and significant, audit of above area was considered to be key audit matter for reporting purpose.	Company in the financial statements.

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

The Company''s Management & Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Business Responsibility Report, Corporate Governance and Shareholder''s Information, but does not include the Standalone Financial Statements and our auditor''s report thereon. The Company''s annual report is expected to be made available to us after the date of this auditor''s report.

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 identified above when it becomes available 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.

Management''s & Board of Directors'' Responsibilities for the Standalone Financial Statements

The Company''s Management &Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance, including other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. 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 Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Standalone 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 Company''s financial reporting process.

Auditor''s Responsibilities for the Audit of the Standalone Financial Statements

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 financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the 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 the management.

• Conclude on the appropriateness of Management & Board of Directors use of the going concern basis of accounting in preparation of standalone financial statements 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 results of our work; and (ii)to evaluate the effect of any identified misstatements in the Standalone Financial Statements.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by 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, to the extent applicable.

2. A. 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 of account

c) The Standalone Balance Sheet, the Standalone Statement of Profit and Loss including Other Comprehensive Income, the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows dealt with by this Report are in 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 Standards) Rules, 2015, as amended.

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 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:

a) The Company has disclosed the impact of pending litigations on its financial position in its Standalone Financial Statements.

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

c) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company and its subsidiary companies incorporated in India.

d) i. The Management has represented that, to the best of its knowledge and belief, no funds (which

are material either individually or in the aggregate)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 entity ("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;

ii. The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("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;

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

e) The dividend paid by the Company during the year, in respect of the same declared for the previous year is in accordance with Section 123 of the Act to the extent it applies to payment of dividend.

f) The reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is applicable from 1 April 2023.

Based on our examination which included test checks, the Company has used accounting software for maintaining its books of account, which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the respective software. Further, we did not come across any instance of the audit trail feature being tampered with.

3. With respect to the matter to be included in the Auditor''s 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 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.

For Rakesh S Jain & Associates

Chartered Accountants Firm Reg No :010129S

CA Pankaj Chandak

Partner

Membership No:229355 Date: 27/05/2024 Place: Hyderabad UDIN: 24229355BKAQFY5301

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Mar 31, 2023

Sigachi Industries Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone Financial Statements of SIGACHI INDUSTRIES LIMITED (the "Company"), which comprise the Balance Sheet as at March 31,2023, the Statement of Profit and Loss including Other Comprehensive Income, 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 "Standalone Financial Statements").

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 Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, the profit and total comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Standalone Financial Statements in accordance with the Standards on Auditing ("SA"s) 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 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 obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Financial Statements.

Key Audit Matters

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 31,2023. 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. We have determined the matters described below to be the key audit matters to be communicated in our report.

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.

Sr. No.	Key Audit Matter	How our audit addressed the key audit matter
1	Appropriateness of capitalization of costs included in Property Plant and Equipment/ Capital work in progress as per Ind AS 16 Property, Plant and Equipment. Refer to Note - 2.8 (Significant Accounting Policies on Property, Plant and equipment), Note - 3 (Property, plant and equipment and Capital work-in progress) of the enclosed standalone financial statements. During the year, the Company has incurred significant capital expenditure towards setting up of additional production plants at Dahej and Jhagadia and at other projects. Capital expenditure amounting to H 994.67 lakhs relating to Hyderabad plant has been capitalized during the year and the capital expenditure of H3,490.37 lakhs relating to setting up of additional production plants at Dahej and Jhagadia in connection with the expansion as per the terms offer letter of the IPO included in capital work in progress as at the year end.	We have performed procedures, including the following in relation to testing of capitalisation of costs included in Property Plant and Equipment/ Capital work in progress: a) Understood, evaluated and tested the design and operating effectiveness of key controls relating to capitalisation of various costs incurred in relation to Property Plant and Equipment. b) Performed test of details with focus on those items that we considered significant due to their amount or nature and tested a sample of items capitalised during the year against underlying supporting documents to ascertain nature of costs and whether they meet the recognition criteria provided in the Ind AS 16, Property, Plant and Equipment in this regard.

Sr. No.	Key Audit Matter	How our audit addressed the key audit matter
	Given the significance of the capital expenditure during the year, there is a risk that elements of costs that are ineligible for capitalization in accordance with the recognition criteria provided in Indian Accounting Standard 16 -Property, Plant and Equipment are capitalized and that costs that should have capitalized have been expensed.	c) Verified the other related costs including those incurred towards repairs and maintenance and debited to Statement of Profit and Loss, to ascertain whether these meet the criteria for capitalization. Our procedures as mentioned above did not identify any costs that had been inappropriately capitalized and that costs that should have capitalised have been expensed.
2	Timing of Revenue recognition in the proper period as per Ind AS 115. Refer to Note-2.17 (Significant Accounting Policies on Revenue Recognition) and Note-24 (Revenue from operations) of the standalone financial statements. In accordance with Ind AS 115, Revenue from Contracts with Customers, revenue from sale of goods is recognized when control of the products being sold is transferred to the customer based on terms of sale. Revenue is measured at consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties. The transaction price of the goods sold is net of variable consideration on account of various discounts offered by the company as part of contract. We identified timing of revenue recognition in the proper period as a key audit matter since it involves higher assessed risk of material misstatement and is required to be recognised as per the requirements of applicable accounting framework.	Our audit procedures included the following: a) We evaluated the design and tested operating effectiveness of the relevant controls with respect to revenue recognition including those relating to cut off at year end; b) We assessed the appropriateness of the revenue recognition accounting policies in line with Ind AS 115 "Revenue from Contracts with Customers"; c) We performed substantive testing of revenue transactions, recorded during the year by testing the underlying documents which included customer order and directions, goods dispatch notes, shipping documents and customer acknowledgments as applicable; d) We tested a sample of manual journal entries posted to revenue and assessed their appropriateness; e) We tested, on a sample basis, specific revenue transactions recorded before and after the financial year end date including examination of credit notes issued after the year end to determine whether the revenue has been recognised in the appropriate financial period. Based on the above stated procedures, no significant exceptions were noted in revenue recognition.

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

The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Business Responsibility Report, Corporate Governance and Shareholder''s Information, 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.

Management''s Responsibilities for the Standalone 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 Standalone Financial Statements that give a true and fair view of the financial position, financial performance, including other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. 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 Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Standalone 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 Company''s financial reporting process.

Auditor''s Responsibilities for the Audit of the Standalone Financial Statements

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 financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the 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 the 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 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 results of our work; and (ii) to evaluate the effect of any identified misstatements in the Standalone Financial Statements.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial Statements of the current period and are therefore the key audit matters. We describe

these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by 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, 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 including Other Comprehensive Income, 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 Standalone Financial Statements comply with the Ind AS specified under Section 133 of the Act ,read with Companies (Indian Accounting Standards) Rules, 2015, as amended.

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

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

iv. a. The Management has represented that, to the best of its knowledge and belief, no funds (which are material

either individually or in the aggregate) 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 entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

b. The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

c. Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (i) and (ii) above, contain any material misstatement.

v. The dividend declared and paid during the year by the company is in compliance with section 123 of the act.

vi. As proviso to the rule 3(1) of the companies (Accounts) Rules,2014 (as amended), which provides for books of account to have the feature of audit trail, edit log and related matters in the accounting software used by the company , is applicable to the company only with effect from financial year beginning April1,2023, the reporting under the clause (g) of Rule 11 of the companies (Audit and Auditors) Rules,2014 (as amended), is currently not applicable.

3. 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 provided.

For M/s T. Adinarayana & Co

Chartered Accountants Firm Regn. No. 000041S

Y Pulla Rao, FCA

Partner

Place : Hyderabad M.No.025266

Date : 25.05.2023 UDIN:23025266BGXISX7130